Letshego loan book reaches P5bn
Keikantse Lesemela | Friday September 26, 2014 15:11
Letshego managing director, Chris Low, said the most contributions to the growth in advances are Botswana, Mozambique and Namibia. Letshego operates in 10 southern and east African countries including Tanzania, Kenya, South Sudan, Uganda, Rwanda, Swaziland, Tanzania, Kenya and Lesotho.
In the period, the group’s profit before tax increased buys 11 percent to P508 million.
Among other markets, growth was also recorded in Kenya, Lesotho and Rwanda. “Overall all markets remain competitive and the group has been able to maintain or grow market share,” stated Low in a commentary.
He said the quality of the advances book was within target levels with an impairment charge of 1.9 percent for the period as compared to two percent in the same period last year. Interest income increased by 23 percent primarily driven by the increase in assets.
“This was partially offset by a reduction in margins in certain countries, to ensure our pricing remains market related,” he said.
However the interest expense increased due to higher debt levels in the business. Low said initiatives are ongoing to execute the phased diversification strategy of transforming the group into a more based financial services provider.
The group commenced deposit-taking activities in Mozambique earlier this year. Other deposit activities are planned to start in Rwanda in the current financial period. Letshego was granted a provisional license by the Central Bank of Namibia in July this year.
“We have engaged the Central Bank to comply with the conditions of this provisional license,” he said.
The group also plans to sell its 24 percent shareholding in its associate microfinance business in Tanzania. The group has also decided to exit the politically volatile South Sudan market. In Botswana, Letshego has decidedto shelve plans of applying for the banking license again after it was rejected last year.