Economy

Letshego Savings and Loans records an impressive growth for half-year 2023

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Letshego Ghana Savings and Loans, a subsidiary of regional inclusive finance group, Letshego Holdings Limited, has reported positive growth and strong results for their first half year performance in 2023, despite general challenging economic conditions.

The company grew it profits before tax by 17pct for the first half of 2023 compared to same period last year whilst its net interest income went up by 66pct year on year.

Its cost-to-income also improved significantly to 69pct from 81pct for the same period last year following the company’s discipline in cost efficiencies.

Despite economic head winds in exchange and reference rates, Letshego Ghana demonstrated sound business fundamentals and upside potential following growth in profits and efficiencies gained in cost management and tax.

Aligned with the regional inclusive finance Group’s execution of its transformation strategy via a clearly set out “6-2-5 execution roadmap” Letshego Ghana is gaining momentum in enhancing customer delivery, diversifying its product offering and improving turn-around times and operational efficiencies with the automation and digitalisation of systems and platforms.

Maintaining business resilience, and adhering to its strict governance framework to mitigate operational and environmental risks, Letshego Ghana is gaining traction towards becoming a digital-first and future-fit organisation, investing in the empowerment of its people to achieve sustainable shareholder returns.

Letshego Ghana’s net impairment release of GHS 6.3 million for the half-year period, reiterated the brand commitment to not just focusing on sales, but adopting a holistic approach to continuously improve and support performance.

Speaking at the Ghana Stock Exchange’s annual Facts behind the Figures Session, Letshego Ghana Savings and Loans Chief Executive Officer, Nii Amankra Tetteh commented, “Economic challenges are part of doing business in Africa, and we remain steadfast in adopting international standards in risk management to mitigate all business risks as far as possible.

Our customers come first, and we look forward to expanding our product offering further to give our customers more options, more choices and most importantly, more access to productive capital and solutions to support their families and their businesses.”

A GH¢50 million capital injection from shareholders bolstered Letshego Ghana’s capital and financial position, increasing shareholder funds by 33% year-on-year to GH¢160 million. In the second half, Letshego Ghana looks forward to deepening its focus on deduction at source lending and mobile loans.

The subsidiary is also raising its standards in Environmental and Social Governance (ESG) with the Letshego Ghana progressing with its project to operationalise global Environmental and Social Management Standards (ESMS) by updating all policies, procedures and tools to include international standards in ESG.

The long term project includes customised training of ESG Champions across all business functions, enhancement of policies and practices and implementation and automation of effective ESG data tracking to support future reporting standards.

“ESG is no longer a nice to have for international brands, but a global standard in operating and delivering sustinable value to all stakeholders. In bringing our people, policies and practices up to speed with global practices in environmental and social governance, Letshego Ghana can demonstrate our commitment to playing a meaningful role in building a better society, resilient economy and productive community,” added Nii Amankra Tetteh, Country CEO Letshego Ghana.

Letshego Ghana Savings and Loans PLC is a licensed financial services provider, providing loans to individuals across the public and private sectors, as well as supporting micro and small entrepreneurs.

The company is a wholly owned subsidiary of Letshego Group and operates as a non-bank financial institution with 26 physical outlets and a staff compliment of over 100 employees. The company’s customer reach is enhanced through strategic partnerships, innovative delivery and their new and enhanced digital channels.

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