Letshego’s profit sees a 2% rise to N$171m

Chamwe Kaira

In its interim results for the first half of 2023, Letshego Holdings (Namibia) Limited announced an increase in profit after tax, reaching N$171 million compared to N$168 million in the previous year, marking a 2% growth. The company’s performance led to the declaration of a dividend amounting to N$224.5 million in June 2023.

Chairperson Maryvonne Palanduz and Chief Executive Officer Ester Kali stated that the company experienced a substantial 14% surge in total revenue compared to the same period the previous year. This surge was propelled by a 16% rise in interest income, accompanied by a robust 11% increase in insurance income, reaching N$143 million as opposed to the N$129 million recorded in 2022.

The expansion of Letshego’s digital product portfolio, including the LetsGo Insurance offerings, played a significant role in driving customer engagement and access.

Maintaining a robust financial position, the group exhibited a Loan Loss Ratio (LLR) of 0.9%, reflecting favorable asset quality during this period. While there was a marginal increase in the Non-performing loans ratio to 5.68% from 4.61% in 2022, the Group’s credit and risk management framework remained stable, underpinning their commitment to prudent financial practices.

The company continued to achieve strong customer deposit growth, with figures rising from N$437 million in June 2022 to N$662 million in June 2023. However, there was a slight dip of 7% in net interest income, which amounted to N$218 million as compared to N$234 million in the prior year.

Palanduz and Kali conveyed that a dividend of 34.29 cents per ordinary share has been declared subsequent to the conclusion of the reporting period. The increased revenue was primarily attributed to a 5% growth in net advances to customers. The company also managed to reduce its cost-to-income ratio from 42% in 2022 to 39%, largely attributed to heightened revenue generated by its ongoing transformation strategy.

A noteworthy development was the rise in local borrowing base to N$2.65 billion, a strategic move aimed at financing expansion and decreasing dependence on parent funding.

Palanduz and Kali emphasized that the journey towards transformation is continuous. They underscored the importance of maintaining momentum and adaptability in response to the dynamic shifts within the market. Letshego’s commitment to digitalization aligns with its ambition to enhance market share and foster growth.

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