Letshego profits flat on weak economic growth

According to group managing director, Chris Low the profit before tax was generally flat on period but the loan book registered a minor growth. Presenting the company results last Friday, Low said the group’s operating income increased by 10% which reflected the underlying growth in advances to customers which he said was supported by stable interest margins, cost of funding and cost of credit risk. He said the quality of their loan book remained at targeted levels noting that loan loss ratios remained less than three percent while they continue to increase their coverage.

“In Letshego’s home market, Botswana household improvement loans now make up six percent of the loan portfolio,” said Low. The group’s loan growth was nine percent and 22% in local currency.