Letshego profits breach P1bn mark

Pauline Dikuelo | Tuesday March 1, 2016 15:05

 

Managing director, Chris Low told the media it is the first time their profit before tax exceeded the billion mark with underlying profitability up five percent excluding foreign exchange differences.

“We are pleased to report good growth, performance and returns as we continue to deliver on our strategic agenda. We continue to strengthen our operations through investment in technology, people as well as strategic partnerships.

As part of the strategy to penetrate the African market, Letshego last year acquired Advans Bank in Tanzania as well as FBN Microfinance in Nigeria as it increased its footprint in the continent.

Interest income rose by 10 percent to record P1.7 billion compared to the P1.4 billion that was recorded in prior year on the corresponding period. Despite strong competition locally, the group disbursed P2.37 billion in new loans which is a seven percent increase from the previous year while in Kenya it recorded a 100 percent increase to P400 million.

According to Low, a number of new products were launched including agriculture supply chain financing, asset financing and micro insurance as well as enhancements to existing products. 

In December last year, Letshego was confirmed as an Alliance for Financial Inclusion (AFI) private partner, making Letshego AFI’s first focused private partner. AFI is a global network for financial policy makers from over 100 developing and emerging countries covering majority of Letshego’s footprint.

“The partnership status is important for the group’s sustainability objectives and will enable accelerated dialogue with regulators sharing a common focus on creating policies conducive to financial inclusion.”

He added that they will continue to seek deposit taking licences to facilitate their financial inclusion agenda including providing money transfer, bill payment and remittance services as well as facilitating borrowing for micro and small enterprises.

The group also renewed their brand promise to ‘let’s improve life’, which is said to be a call to action as the group aims to make a positive impact with a focus on financial inclusion in Africa.

“Our fresh brand reinforces the strong Letshego reputation with the company depicted as providing support and upliftment through the base and symbolising growth with our customers and communities through upward motion of Letshego logo,” said the group head of corporate affairs, Mythri Sambasivan-George.

The group operates in 10 African countries.