Letshego records impressive performance in H1
Letshego Ghana, has defied the economic headwinds in the country to record an impressive performance in the first half of the year.
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The company’s decision to revolutionize its business model by balancing its portfolio between traditional Deduction-at-Source (DAS) loans and the burgeoning Mobile Lending sector appears to be paying off as the company saw a 218% year-on-year increase in operating income.
But the company's success wasn't just about diversifying its product offerings, Letshego Ghana also focused intensely on enhancing customer experience through digital innovation.
By leveraging automation and digitalization, the company managed to slash its loan origination turnaround time in half, from 24 hours to just 12 hours.
This improvement, coupled with the digitalization of loan settlements and refund requests, significantly boosted customer satisfaction and operational efficiency.
The company achieved an impressive 51% cost-to-income ratio for H1 2024, representing an 18% decrease from the previous period.
This enhancement in operational efficiency was accompanied by substantial growth across key financial metrics.
Total assets grew by 47%, primarily driven by a 36% increase in net loans and advances.
Perhaps most strikingly, customer deposits surged by an astonishing 325%, a clear indication of growing customer confidence in the institution.
The culmination of these efforts was reflected in the company's bottom line, with profits before tax skyrocketing by 223% compared to the same period in the previous year.
This financial success was further underscored by a positive JAWS ratio of 130%, demonstrating Letshego Ghana's ability to grow income at a faster rate than expenses.
However, Letshego Ghana's story isn't just about financial metrics.
The company has shown a deep commitment to environmental, social, and governance (ESG) practices.
Recognizing the importance of sustainability in today's business landscape, Letshego Ghana has been developing a comprehensive framework that integrates ESG principles into its operations.
This initiative is expected to yield multiple benefits not just for the company, but also for its stakeholders and the broader community.
Looking ahead, the company is gearing up to accelerate its execution capability across key strategic priorities.
These include further improving capital efficiency, investing in advanced platform capabilities and technology, and expanding its product range.
Additionally, Letshego Ghana is focused on deepening collaborations with existing partners while actively exploring new opportunities in the market.
Taking its turn at the Ghana Stock Exchange’s Facts Behind the Figures series, Chief Executive Officer of Letshego Ghana, Nii Amankra Tetteh's said "Our performance in the first half-year is a testament to the resilience and adaptability of our business model.
“We have successfully navigated a challenging macroeconomic environment while delivering strong financial results and making significant strides in our strategic initiatives,” he added.
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