Letshego Ghana reports robust financial performance in first half of 2024
By Isaac AIDOO, Accra
Letshego Ghana Savings and Loans PLC, a subsidiary of Letshego Africa, has announced impressive financial results for the first half of 2024, demonstrating significant growth and resilience amid challenging macroeconomic conditions.
Taking their turn at the Fact Behind the Figures session organized by the Ghana Stock Exchange (GSE), the company’s management highlighted the robust performance, underscoring its commitment to delivering value to stakeholders and effectively executing its strategic plan.
Key milestones achieved by Letshego Ghana include significant strides in product diversification, customer delivery, digitalization, and ecosystem collaborations.
The company successfully transitioned its portfolio mix to balance Deduction-at-Source (DAS) and Mobile Lending, resulting in a 218% year-on-year increase in operating income.
Enhanced automation efforts have reduced loan origination turnaround time from 24 hours to 12 hours, significantly improving the customer experience.
Chief Executive Officer of Letshego Ghana, Nii Amankra Tetteh, emphasized the company’s resilience and adaptability.
“Our performance in the first half-year is a testament to the resilience and adaptability of our business model. We have successfully navigated a challenging macroeconomic environment while delivering strong financial results and making significant strides in our strategic initiatives.
“We are committed to continuing this trajectory, driving innovation, and delivering value to our customers, shareholders, and the broader community,” he stated.
Letshego Ghana achieved several notable financial improvements.
The cost-to-income ratio for quarter one of 2024 improved to 51%, an 18% decrease from the prior period.
Total assets grew by 47%, mainly driven by a 36% increase in net loans and advances.
Customer deposits saw a remarkable 325% increase, underscoring growing customer confidence.
Profits before tax increased by 223% for the first half of 2024 compared to the same period last year.
The company remains dedicated to world-class environmental, social, and governance (ESG) practices, developing a comprehensive sustainability framework that integrates ESG principles.
This framework has provided multiple benefits to the company’s operations, stakeholders, and the broader community.
Notable achievements include winning the award for Best Non-Bank Financial Institution in the Promotion of Financial Inclusion and a 114% year-on-year growth in the Qwikloan non-urban customer segment.
Looking ahead, Letshego Ghana aims to further increase its execution capability to deliver on key strategic priorities.
The company is accelerating efforts in capital efficiency, digitization, and product expansion.
Key initiatives include improving the cost-to-income ratio, investing in platform capabilities and technology, and developing new products.
The company also plans to deepen collaborations with existing partners and explore new opportunities.
Operating as a non-bank financial institution with 16 physical outlets and over 100 employees, Letshego Ghana enhances its customer reach through strategic partnerships, innovative delivery methods, and enhanced digital channels.
The company provides loans to individuals across the public and private sectors and supports micro and small entrepreneurs.
Management of the company is confident that the strong performance and strategic focus position Letshego Ghana for continued growth and success in the coming years
Managing Director of the GSE, Ms Abena Amoah encouraged other issuers to follow the example of Letshego Ghana “to explain how come their financials are what they are, their strategies for the fund managers to understand and make good use of information provided for their trading purposes.”
