Letshego Holdings Namibia reported a 16% increase in profit after tax to N$199 million for the six months ended June 2024.
The company’s half-year profit represents growth from N$171 million in 2023, a development attributed to the Group’s strategic focus on efficiency and product diversification.
During the first half of 2024, Letshego recorded a 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 (2023: N$218 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%,” Letshego Holdings Namibia CEO Ester Kali said.
Letshego’s cost-to-income ratio remained stable at 45%, while the return on average equity increased to 15% from 12% recorded last year.
“Earnings and headline earnings per share improved to 40 cents (2023: 34 cents). The Group remains well-capitalised, with a capital adequacy ratio of 35% (2023: 32%),” said Kali.
The Group declared a dividend of 39.89 cents per ordinary share for the period, following a dividend payment of N$181.9 million (36.38 cents per share) during the June 2024 period.
Letshego has expanded its local funding base to N$2.8 billion, reducing its reliance on intercompany and equity funding, according to the group’s unaudited condensed consolidated interim results for the six months ended 30 June 2024.
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.
“Letshego Namibia continues to adopt an integrated risk management approach that aligns with both international best practices and local requirements,” said Kali.
The CEO noted that Letshego is well-positioned to capitalise on opportunities in the current economic environment.
“The focus remains on leveraging technology, nurturing partnerships, and embracing agility to navigate the evolving financial landscape and create long-term value for stakeholders,” she said.
Recent governance updates include the appointment of new Mansueta-Maria Nakale as Chairperson, Independent Non-Executive Directors to the Board, including Jerome Mutumba, Jaco Esterhuyse and Non-Executive Director, Richard Ochieng, strengthening oversight and strategic guidance.
“The Group continues to make significant strides in implementing its ‘6-2-5’ Transformation Strategy, with positive financial performance driven by innovation, customer-centricity, and an expanded product portfolio,” noted the company.
