Letshego Holdings, a subsidiary of the Botswana-based transnational financial services firm partly owned by Malawian banking magnate Hitesh Anadkat, delivered a resilient financial performance in the first half of its 2024 fiscal year, with its profit surging above $11 million.
According to the recent financial statement of the biggest payroll lender in Namibia , the company's profit rose by 16.33 percent from NAD171.47 million ($9.61 million) in the first half of 2023 to NAD199.47 million ($11.19 million) in the first half of 2024, demonstrating the company's resilience despite prevailing market challenges and a difficult operating environment.
Letshego's financial performance highlights operational efficiencyLetshego's profitability was bolstered by its net interest income, which rose by 14.95 percent to NAD250.89 million ($14.07 million). This reflects enhanced lending margins and a stable cost of funds. In addition, its insurance operations contributed positively, yielding a net insurance result of NAD136.74 million ($7.67 million). However, this figure was slightly lower than the NAD141.08 million ($7.91 million) reported last year due to an uptick in insurance claims.
The company recorded a rise in credit impairment charges to NAD22.30 million ($1.25 million) from NAD5.19 million ($0.291 million) a year ago, indicating a more cautious approach to risk management. Despite this increase, Letshego maintained a strong net interest income after impairments, underscoring the strength of its lending portfolio. It continues to hold its position as the fifth largest bank in Namibia by assets.
