Letshego Holdings Namibia earns N$199m profit after tax

Letshego Holdings Namibia has announced a profit of N$199 million after tax for six months, ending 30 June.

This was announced by Letshego chief executive Ester Kali on Wednesday.

Kali said the profit after tax rose by 16%, an increase from N$171 million in 2023. This, she said, reflects 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%, an increase from 12% in 2023. Earnings and headline earnings per share improved to 40 cents from 34 cents in 2023.”

She said the group remains well-capitalised, with a capital adequacy ratio of 35%, a rise from 32% in 2023.

“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,” she added.

According to Kali, the net interest income grew by 15% to N$251 million, an increase from N$218 million in 2023, 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%,” Kali said.

INCREASED FUNDING

Kali said the group has made progress in diversifying its funding base, reducing reliance on intercompany and equity funding by expanding its local funding to N$2,8 billion.

“Additionally, Letshego’s inaugural social listing on the Namibian Stock Exchange 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,” Kali added.

She said customer deposits also saw a 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,” Kali said.

The group declared a dividend of 39, 89 cents per ordinary share for the period, following a dividend payment of N$181,9 million representing 36,38 cents per share during the June 2024 period.

“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.