13 Mar 2017
LETSHEGO Financial services have recorded a robust growth in the financial services sector in 2016 relative to the previous year. Letshego Holdings Limited, when presenting their full year financial results said Letshego Swaziland’s loan book grew by 47 per cent in 2016 when compared to 2015. The holding company said the loan book of Letshego Swaziland represented around three per cent of the total loan book of the company. When quoted in the Botswana currency, P ula, the growth of Swaziland Letshego loan book represented 58 per cent growth.
Letshego Holdings said Letshego financial services operate in 11 countries on the African continent, with operations in Botswana, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Tanzania and Uganda. The Pan African financial services company said the current loan book of the entire company as of December 31, 2016 stood at E10 billion (BWP 8 billion). In terms of group performance the profit before tax was P1.2 billion, nine per cent lower than 2015.
“Yields on advances to customers and cost of external borrowings maintained despite competitive environment and higher interest costs in some countries,” said the group.
The financial services company said underlying costs increased by 23 per cent. “Modest growth in loans and advances to customers six per cent, there was a 12 per cent increase in interest income. Return on equity 16 per cent was down three per cent from prior period. In terms of debt, the group posted an increase in debt to equity to 85 per cent and a capital adequacy ratio increase from 54 per cent to 48 per cent.
“We have made significant progress in refocusing the group in the last three years; however, short term investment is still required to enhance customer experience, build new solutions, embed technology capability and develop people,” said the company. The group said they were committed to creating an equity story that creates long term shareholder value.
Source:www.pressreader.com- By Linda Dlamini