Letshego Holdings, a subsidiary of the Botswana-based transnational financial services corporation partly owned by Malawian banking billionaire Hitesh Anadkat, delivered a strong financial performance in the first half of the fiscal year 2024, with profits exceeding $11 million.
Namibia’s largest payroll lender reported a 16.33% increase in profit from NAD171.47 million ($9.61 million) in the first half of 2023 to NAD199.47 million ($11.19 million) in the first half of 2024, demonstrating resilience in the face of market challenges and a difficult operating environment.
Letshego’s profitability was boosted by net interest income, which increased by 14.95 percent to NAD250.89 million ($14.07 million). This represents higher lending margins and a more steady cost of capital. In addition, its insurance operations contributed positively, with a net insurance result of NAD136.74 million ($7.67 million). However, this sum was slightly lower than the NAD141.08 million ($7.91 million) reported last year, owing to an increase in insurance claims.
The company’s credit impairment costs increased to NAD22.30 million ($1.25 million) from NAD5.19 million ($0.291 million) the previous year, showing a more cautious approach to risk management. Despite this rise, Letshego’s net interest income remained solid following impairments, demonstrating the resilience of its lending portfolio. It continues to be Namibia’s fifth largest bank by assets.
Hitesh Anadkat is a major shareholder of Letshego. The Malawian banking magnate owns 2.9 percent of Letshego, making him the company’s largest private stakeholder. Anadkat’s investment portfolio includes Telekom Networks Malawi and FMB Capital Holdings, Malawi’s pioneering bank, which he founded in Mauritius.
Letshego’s total assets increased by 9.19%, from NAD6.17 billion ($346.11 million) to NAD6.74 billion ($378.1 million). This increase demonstrates the firm’s dedication to improving its governance and sustainability frameworks, allowing it to capitalise on new possibilities mentioned in its strategic roadmap.