Letshego has delivered another set of commendable interim results, reinforcing the consistent and stable growth we have observed over the past two years within the Namibian market.
The group’s deduction-at-source lending model remains a unique differentiator, and its continued adoption by more Namibian employers underscores the strength of this proposition. That said, we believe it is prudent to question the long-term sustainability of this model, particularly around the potential for regulatory intervention on interest rate caps.
The recent collaboration with MTC to launch Taamba Maris introduces an exciting new avenue for diversification. While the near-term earnings impact will be limited, given that the product is currently restricted to 1 500 participants, we see this as a strategic stepping stone that could become a meaningful revenue contributor over the longer term, particularly as the fintech sector continues to gain traction in Namibia. From a financial standpoint, Letshego is thriving.
Return on Equity (ROE) is on a steady upward trajectory, the loan book continues to expand within healthy credit risk parameters, and capital ratios remain robust. While rising insurance expenses are a watch point, we believe the company’s strong fundamentals, disciplined risk management, and clear growth trajectory position it well to deliver sustained value for shareholders. In our view, if management continues to execute effectively while navigating potential regulatory headwinds, Letshego is well placed to maintain its growth momentum and reinforce its standing as a leading player in Namibia’s financial services sector.
Letshego Holdings Namibia delivered a robust set of interim results for the six months ended 30 June 2025. Interest income rose 20.9% year on year to N$548 million, driving a 24.6% increase in net profit to N$249 million.
We view this performance as particularly impressive given the challenging macroeconomic environment for banks, defined by the ongoing interest rate cutting cycle. The group’s resilient business model, underpinned by above-average lending rates, has provided an effective buffer against margin compression.
The results were further supported by sustained credit demand, a reduction in impairment charges, and continued expansion of insurance income.
Since obtaining its full commercial banking licence in 2014, we believe Letshego has delivered consistent and commendable growth within Namibia’s financial sector. –Simonis Storm Securities
