Letshego Africa Holdings increased its profit after tax by 25% to P226.9 million for the six months ended 30 June 2026, supported by lower credit impairment charges and continued cost controls as the financial services group advances plans to exit five African markets.
The Botswana-headquartered group reported profit from continuing operations of P179.9 million, up 5% from P171.3 million a year earlier. A further P47.1 million came from operations classified as discontinued, taking consolidated profit to P226.9 million.
The results come during a period of significant restructuring for Letshego, which is seeking to sell its operations in Ghana, Nigeria, Rwanda, Tanzania and Uganda to Axian Digital Venture Holding and Management.
The proposed transaction was approved by shareholders on 19 June 2026, with regulatory approvals in the affected markets now forming the next stage of the process. Letshego says the transaction is intended to allow it to concentrate capital, liquidity and management attention on markets where it can achieve greater scale and stronger risk-adjusted returns.
Profit improves despite weaker operating income
The group's stronger bottom line came against a decline in operating income from continuing operations.
Operating income fell 8% to P957.5 million, from P1.04 billion in HY2025. Net interest income was broadly stable at P764.1 million, while non-funded income declined 28% to P193.4 million.
The pressure on income was offset by a sharp reduction in credit costs.
Net impairment charges fell 62% to P32.6 million, compared with P86.4 million in the corresponding period. The improvement was helped by a P55 million impairment reversal, while recoveries increased to P137.5 million from P111.9 million.
Letshego also continued to reduce its cost base. Operating expenses declined 7% to P525.4 million, with staff costs falling 13% to P215.1 million and direct costs dropping 23% to P37 million.
The cost-to-income ratio remained at 55%, unchanged from HY2025.
The combination of lower impairment charges and tighter costs helped profit before tax from continuing operations rise 4% to P399.5 million.
Five-market exit reshapes the group
The proposed disposal of the five East and West African businesses remains one of the most important developments in Letshego's financial position.
The group entered into a binding framework agreement with Axian for the sale of the operations and subsequently received shareholder approval. The businesses have been classified as discontinued operations and their assets as held for sale under IFRS 5.
At the end of June, Letshego had P3.84 billion in assets classified as held for sale.
The businesses still contributed positively during the reporting period, generating P47.1 million in profit after tax, compared with P9.7 million in HY2025.
Ghana was the largest contributor, generating about P75.5 million in profit after tax, compared with P19.2 million previously. Rwanda, Uganda and Nigeria remained loss-making, while Tanzania returned to profitability.
However, the discontinued operations also carried significantly higher credit costs. Expected credit losses reached P291.3 million, compared with P143.6 million a year earlier. The group said credit pressure was particularly pronounced in Ghana's mobile-lending portfolio, while Uganda and Nigeria were affected by deducted-but-not-remitted balances and payroll-system migrations.
Despite these pressures, loan disbursements across the businesses increased 49% to approximately P6.9 billion, driven largely by mobile lending.
Southern African businesses provide the core
The continuing operations are increasingly concentrated in Southern Africa, with Namibia emerging as the largest contributor to profit among the retained markets.
Namibia's profit after tax increased 12% to P208 million, supported by cost management and improved impairment outcomes. The company also reported renewed momentum from deduction-at-source top-ups and consolidations, alongside home-loan origination.
Botswana remained stable, generating P104 million in profit after tax, unchanged from HY2025. Letshego said the business continued to operate under tight liquidity conditions and elevated funding costs, which affected lending activity and margins.
Mozambique's profit declined 14% to P153 million, although Letshego said the comparison was affected by a P41 million insurance profit share recognised in the prior period over 17 months. Excluding that timing effect, the group said underlying earnings showed growth.
Eswatini was another positive performer, with profit increasing 42% to P27 million.
Liquidity position strengthens
While lending conditions remain challenging, Letshego ended the period with a stronger liquidity position.
Liquid assets increased to P3.77 billion, compared with P2.45 billion at June 2025, while the liquid-assets-to-total-funding ratio improved to 29%, from 18% a year earlier and 19% at December 2025.
Total assets stood at P19.74 billion, up 6% year-on-year, although advances to customers fell 18% to P11.51 billion. The reduction reflects, among other factors, the classification of the businesses earmarked for disposal as held for sale.
The group remained adequately capitalised, with a consolidated capital adequacy ratio of 25.5%, compared with 27% in June 2025. Letshego attributed the decline partly to higher risk-weighted assets and impairment losses associated with the proposed disposal.