Letshego Holdings Limited has announced positive full year results for the year ended 31 December 2021 .
According to the results released, the Group’s consolidated performance for 2021 recorded double digit growth in profits with profit before tax being up 11% year-on-year to $97.7million and profit after tax climbed 16% for the same comparative period, to $62.1million.
The results indicated that asset quality remains strong with the Group’s loan loss ratio being -0.1% for the year, or 0.5% excluding once-off deductions.
The Group’s non-performing loans ratio increased marginally to 5.9% for the year (financial year 2020: 5.3%), reiterating stability in the Group’s credit and risk management framework.
According to the company, the performance for the year was largely driven by 17% growth in net customer advances.
Letshego noted that its double-digit growth in profit was supported by the Group’s progress in its transformation strategy, underpinned by digitalisation.
“Letshego’s 2021 performance was sound with our regional team delivering double digit growth in both profit before and after tax, despite navigating our way through an ongoing global pandemic. We are making strong progress in transforming our organisation into an entity that leverages digital and end-to-end automation to unlock significant enterprise value, not only for our customers, but also for our investors and shareholders. People remain our strongest asset as we continue to acquire and empower individuals with specialist skills to power a future-fit organisation,” said Andrew F. Okai, the Group’s Chief Executive Officer
Within the Group’s lending value stream, Letshego announced it had achieved double digit growth in its Deduction at Source (DAS) portfolio of 14% .
On the other side, profitability in deduction at source remains positive, buoyed by digital and system enhancements.
The year saw slower growth in the Micro and Small Entrepreneur portfolio increasing in value by 7% to $73million from $68.5milion the previous year while the mass mobile loans portfolio enjoyed stronger performance, with growth more than doubling in value to $48.3million.
“In Uganda, performance trends were characterised by growth in profitability, loan book and customer numbers. Challenges were experienced as a result of Covid-19 pandemic (lockdowns and curfew), but these have been mitigated by maximizing digital platforms. Going forward, Letshego Uganda has exciting products and solutions up for launch, these include Digital Mall, USSD, Non-Government and considerable investment in five distinct ‘Value Streams’ now leading Letshego’s product delivery and customer focus namely; lending, savings and deposits, insurance, payments and lifestyle,” Giles Aijukwe, the CEO Letshego Uganda remarked.
“Our people-first initiative remains a priority as we upskill our employees to support our digital transformation and seize our potential for sustainable growth. Over 100% of our staff have been training in agile ways of working, and over 100% are actively participating in globally accredited coursera courses available on our digital learning platform.”
