Letshego whips loan book into shape
Lewanika Timothy | Thursday March 26, 2026 17:00
The group consolidated its loan book to P11.7 billion, despite exits from key markets in East and West Africa.
The homegrown pan-African microlender reported a consolidated loss after tax of P235.5 million for the full year ended December 2025, largely weighed down by a once-off hit from the discontinued operations. The drag came as the group exited non-core markets as part of a broader restructuring drive.
“The discontinued portfolio contributed a loss after tax of P519.5 million, driven by IFRS 5 valuation impairment of P570.7 million resulting in a total consolidated loss after tax of P235.5 million,” the group said in a statement on the BSE.
The group showed overall improved loan book growth coupled with increase in net margins enjoyed from operations.
“Profit after tax from continuing operations rose to P284 million, supported by improved credit performance and revenue growth,” directors revealed.
Operating income increased 8% to P2 billion, driven by strong deduction-at-source lending activity, particularly in Namibia and Mozambique, alongside improved insurance contributions.
The group also saw a significant shift in its funding model, moving away from expensive borrowings towards customer deposits, a key signal of balance sheet strengthening.
“Total customer deposits increased by 64% to P3.5 billion, driven by strong performance in major deposit markets and improved digital servicing,” the group said.
The group however acknowledged funding challenges in the form of liquidity constraints especially in markets like Botswana. Local capital markets have been weighed down by a liquidity squeeze in the market, with government scrambling for capital in a bid to fund day to day operations.
“Despite liquidity pressures in the Botswana market, the group remained adequately funded at consolidated level, supported by strengthened intra-group cash management and cost rationalisation initiatives,” the group said.
The group noted that it was exiting its eastern and western African markets, including Tanzania, Uganda, Ghana and Rwanda, Kenya. These markets were however noted to be showing operational progress, pointing to underlying resilience despite the pending exits.
“Despite the classification, Tanzania, Uganda, Ghana and Rwanda delivered improvements in profitability, collections, digital disbursements and deposit growth,” Letshego said.