A dividend of N$224.5 million (44.89 cents per ordinary share) was paid to the Ordinary Shareholders of Letshego Holdings (Namibia) Limited during the June 2023 period, the Board of Directors of Letshego Holdings (Namibia) Limited has announced in its financial results for the six months ended 30 June 2023.
This in an increase from the 2022 dividend of N$147.6 million (29.52 cents per ordinary share).
Notably, the Board has also announced that a dividend of 34.29 cents per ordinary share has been declared since the end of the half year reporting period.
In the same period, total revenue increased 14% year-on-year, driven by growth in interest income, that increased by 16% as well as strong growth in insurance income of 11% to N$ 143 million (2022: N$ 129 million).
Access to Letshego’s expanding suite of LetsGo Insurance products was enabled with an expanding Digital Mall product portfolio.
Asset quality remains strong with the Group’s Loan Loss Ratio (LLR) at 0.9% for the period. The Group’s Non-performing loans ratio increased marginally to 5.68% for the period (2022: 4.61%), reiterating stability in Letshego’s credit and risk management framework.
“Over the past six months under review, Letshego Holdings Namibia remained steadfast in its commitment to drive sustainable growth through embedding its transformation strategy. Letshego Namibia’s transformational journey has been characterized by a culture of innovation and have seen us expand our product portfolio and our digital platforms to cater to a broader customer base and meet the unique financial needs of diverse segments.
“Our commitment to digital transformation has been pivotal in elevating our services and processes as we endeavor to successfully integrate digital technologies across various touchpoints, enabling seamless customer onboarding, faster loan processing, and real-time access to financial information through our digital channels,” the company said.
Reference rates increased in the period under review, resulting in a 76% year-on-year increase in interest expense. Net interest income declined by 7% to N$218 million (2022: N$234 million). While 72% of the Group‘s funding is floating rate pricing, the asset side is primarily fixed pricing, with repricing taking place at a slower rate than the liability side, thereby resulting in margin compression.
In its non-financial highlights, Letshego noted that local borrowing base increased to N$2.65 billion to finance growth and decrease reliance on parent funding while the company was progressively implementing its digitalization strategy in line with ambitions to grow market share. Furthermore, customer deposit mobilization continued in 2023 with growth from N$437 million at June 2022 to N$662 million at June 2023.
“At Letshego Holdings Namibia, we have adopted an integrated risk management approach as we recognize that risks are interconnected and can transcend across business units and functions. Our risk frameworks ensure collaboration and communications across the organization, fostering a holistic understanding of our risk environment. Our risk management approach is firmly rooted in the belief that risk are best addressed at inception and governed through our enterprise-wide risk management framework. This principle is applied across three lines of defense in order to minimize potential losses, enhance efficiencies as well as optimize resource utilization.
“Whilst we celebrate the milestones achieved through our transformational strategy, we recognize that the journey is continuous. As we move forward, its remains imperative that we maintain momentum and remain adaptive to volatile market dynamics. Through our agile ways of working, embracing technology and nurturing strong partnerships, we are well equipped to navigate the evolving financial services landscape and create long-term value for all stakeholders,” further explained the company.
Letshego Namibia listed on the Namibian Stock Exchange on 28 September 2017, with an initial market capitalisation of N$1.9 billion. Over 3,600 qualifying applications, valued at a total of N$182 million, were received during the four week share offer period. Members of the public and non-institutional investors contributed N$40 million toward this total, with the remaining N$142 million being raised through offers from leading institutional investors.
Letshego Namibia’s unique share offer was named, ‘Ekwafo Letu’ which means ‘support’, a term synonymous with the Letshego Group’s brand promise and commitment within all 11 markets across Africa. Over 75,000 people were empowered with knowledge and facts in fundamental financial skills and share investment opportunities. During the IPO period, the inclusive finance brand connected 180,000 people across its social media platforms, and recorded 21,000 active discussions around Ekwafo Letu’s offering.