CHAMWE KAIRA
Letshego Holdings Namibia Limited reported to shareholders that profit after tax for the six months ending 30 June 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period.
“Therefore, earnings per share and headline earnings per share for the six months ending 30 June 2024 is expected to be materially higher, by between 15% and 20%, than what was reported for the comparative period,” the company said.
The company advised that the financial data upon which the trading statement is based have not been reviewed or reported on by the company’s external auditors.
“Shareholders are advised to exercise caution when dealing in the company’s securities. The company’s reviewed unaudited interim results for the six months ending 30 June 2024 will be published no later than 6 September 2024,” the company said.
In the 2023, annual report, Letshego said despite the backdrop of global tensions and disruptions in supply chains, Letshego remained resolute in its pursuit of sustainable growth. During the year, the company focused on digitalization and product diversification persisted, with a specific emphasis on enhancing the customer journeys through end-to-end solutions.
During 2023, the total revenue surged by 14% year-on-year, propelled by growth in interest income, which rose by 18%, and robust expansion in insurance income to N$275 million (2022: N$248 million).
The company said access to Letshego’s expanding suite of LetsGo Insurance products was facilitated through an augmented Digital Mall product portfolio.
The group maintained strong asset quality, with a Loan Loss Ratio (LLR) of 0.25% for the year. Although the Non-performing loans ratio increased marginally to 6.02% (2022: 4.97%), it underscores the stability of the group’s credit and risk management framework.
The company said in 2023, reference rates climbed during the review period, leading to a 63% year-on-year upsurge in interest expense. Net interest income experienced a slight decline of 3.4% to N$ 438 million (2022: N$ 453 million).
Letshego said while 72% of the group’s funding is based on floating-rate pricing, the asset side predominantly relies on fixed pricing, resulting in margin compression due to the slower repricing pace on the asset side.
