Letshego Holdings Namibia reports 18.5% profit surge
Advances drive profit
The lender's financial performance was primarily driven by a 15% year-on-year growth in revenue.
Letshego Holdings Namibia announced impressive financial results for the full-year period ended December 2024, with profit after tax climbing to N$418.8 million, representing an 18.5% increase from N$353.3 million in 2023.
According to CEO Ester Kali, the company's strong financial performance was primarily driven by a 15% year-on-year growth in revenue, fuelled by an increase in advances to customers. "While our revenue growth accelerated compared to the 14% recorded in 2023, we maintained disciplined cost management," Kali said.
On the expenses side, staff and operational costs increased by 14.4%, significantly higher than the 1.2% increase seen in 2023. "This increase is strategically aligned with our growth objectives, as we expanded our workforce to strengthen our market position and delivery capabilities," noted Kali. Despite the higher expenses, the company maintained a stable cost-to-income ratio of 47%.
The financial institution successfully tapped into capital markets during the year, raising substantial funds through the Namibia Securities Exchange (NSX). "Our inaugural social listing on the NSX attracted total bids of N$322 million, enabling us to issue N$260 million in three-year senior unsecured notes to five investors," Kali said.
Further demonstrating market confidence, Letshego raised an additional N$300 million through its first listed bond programme on 5 December 2024. "These successful fundraising initiatives clearly demonstrate the market's confidence in Letshego's financial performance and strategic direction," she said.
Rewarding shareholders for the strong performance, the Board has declared a final dividend of 43.88 cents per ordinary share.
According to CEO Ester Kali, the company's strong financial performance was primarily driven by a 15% year-on-year growth in revenue, fuelled by an increase in advances to customers. "While our revenue growth accelerated compared to the 14% recorded in 2023, we maintained disciplined cost management," Kali said.
On the expenses side, staff and operational costs increased by 14.4%, significantly higher than the 1.2% increase seen in 2023. "This increase is strategically aligned with our growth objectives, as we expanded our workforce to strengthen our market position and delivery capabilities," noted Kali. Despite the higher expenses, the company maintained a stable cost-to-income ratio of 47%.
The financial institution successfully tapped into capital markets during the year, raising substantial funds through the Namibia Securities Exchange (NSX). "Our inaugural social listing on the NSX attracted total bids of N$322 million, enabling us to issue N$260 million in three-year senior unsecured notes to five investors," Kali said.
Further demonstrating market confidence, Letshego raised an additional N$300 million through its first listed bond programme on 5 December 2024. "These successful fundraising initiatives clearly demonstrate the market's confidence in Letshego's financial performance and strategic direction," she said.
Rewarding shareholders for the strong performance, the Board has declared a final dividend of 43.88 cents per ordinary share.
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