Letshego has delivered a strong financial rebound in the first half of 2025, reporting a profit after tax of P181 million, a stunning 919% increase from P17.8 million a year ago.
The sharp turnaround was driven by growth in core lending activity, tighter credit risk controls, and a surge in customer deposits, as the Group begins to reap the benefits of its refreshed corporate strategy.
Net interest income rose by 31% to P1.4 billion, while non-funded income grew by 12% to P313 million. Operating income was up 27% year-on-year, reaching P1.71 billion. This top-line momentum was matched by a marked improvement in asset quality, as credit impairment charges fell by 31% to P230 million and the loan loss ratio improved to 3.1%, down from 4.8% a year ago. The non-performing loan (NPL) coverage ratio climbed to 78%, reflecting a more conservative provisioning approach and improved portfolio quality.
Earnings per share jumped to 6.2 thebe, reversing a 0.7 thebe loss in the same period last year, while return on equity rose to 7% from just 1% in H1 2024. Letshego’s Deduction at Source (DAS) lending, its flagship product, remained the backbone of the portfolio and helped drive advances across several markets.
Deposit Gains and Regional Performance
A standout feature of the half-year performance was the 53% year-on-year growth in customer deposits, now sitting at P2.7 billion. This growth was broad-based, but especially pronounced in Ghana, Nigeria and Tanzania—where deposits rose 235%, 57%, and 47% respectively. This helped push deposits’ share of total group funding to 21%, up from 15% the previous year, strengthening the Group’s funding diversification.
Botswana, while grappling with local liquidity constraints and a sluggish economy, showed signs of recovery. Letshego’s Botswana unit recorded a 14% increase in profit to P104 million, with impairments dropping 29% despite the lender exiting legacy portfolios and pulling back on underperforming open market loans. The business was buoyed by renewed growth in DAS lending in the latter part of the period.
Elsewhere, Namibia maintained its lead as the Group’s best-performing market, delivering P185 million in profit (up 26%), while Mozambique saw an 82% surge to P178 million. Mobile and short-term credit continued to gain traction in Ghana and Tanzania, which recorded revenue growth of 63% and 52% respectively, aided by new partnerships and digital channels.
Liquidity, Outlook and Strategic Transactions
Despite these gains, the Group flagged ongoing liquidity pressures at the holding company level, citing tight conditions in Botswana’s bond market and sluggish remittances from select countries. To address this, Letshego is accelerating intercompany loan repayments, reducing costs at its holding entity, and engaging shareholders to support short-term obligations.
Looking ahead, management expressed cautious optimism, noting that while most subsidiaries are now profitable, legacy loan portfolios still require close monitoring. The Group is also tracking economic developments in key markets like Botswana, Ghana and Nigeria, particularly around hyperinflationary risk and currency volatility.
Progress is ongoing on a potential corporate transaction, which the company first disclosed to shareholders earlier this year. While no agreement has been finalised, Letshego confirmed that discussions with counterparties are advancing, and it remains focused on unlocking long-term value.
“Strong year-on-year profit growth affirms that we are on the right path,” said Group Chairman Christopher Mokgware, while Interim CEO Brighton Banda added that the Group’s strategy was “beginning to yield early results.” As the second half of the year unfolds, Letshego aims to build on this momentum by scaling short-term lending, expanding digital deposit channels, and tightening credit oversight.