Letshego reports N$199m profit

Letshego Holdings Namibia, the parent company of Letshego Bank and Letshego Micro Financial Services, announced that it managed to report a profit of N$199 million for the six months ended 30 June.

For the first half of 2024, Letshego recorded robust growth of 14% year-on-year increase in total revenue, primarily driven by a 21% rise in interest income. Net interest income grew by 15% to N$251 million, strengthened by a 3% increase in net advances to customers and strategic repricing of low-interest loans. The group maintained a healthy net interest margin, which improved from 7% to 8%.

Profit after tax rose by 16% to N$199 million, reflecting the group’s strategic focus on efficiency and product diversification. The cost-to-income ratio remained stable at 45%, while the return on average equity increased to 15%. Earnings and headline earnings per share improved to 40 cents.

The group has made significant progress in diversifying its funding base, reducing reliance on inter-company and equity funding by expanding its local funding to N$2.8 billion.

Additionally, Letshego’s inaugural social listing on the Namibian Stock Exchange (NSX) was met with strong market interest, receiving bids totalling N$322 million and resulting in the issuance of N$260 million in three-year senior unsecured notes. Customer deposits also saw significant growth, reaching N$1.05 billion at the end of June 2024, compared to N$662 million in June 2023.

The group declared a dividend of 39.89 cents per ordinary share for the period, following a dividend payment of N$181.9 million during the June 2024 period.

Meanwhile, GCR Ratings upgraded the Namibian national scale long-term issuer ratings for Letshego Holdings Namibia, Letshego Bank Namibia, and Letshego Micro Financial Services Namibia to A(NA) from A+(NA). The short-term issuer ratings of A1(NA) have been affirmed, and the outlook has been revised to stable.