Letshego Africa Holdings has lifted first-half profit by 25 percent despite weaker operating income, as lower credit impairment charges and tight cost controls helped the pan-African financial services group navigate challenging market conditions.
The group reported consolidated profit after tax of P226.9 million for the six months ended June 2026, up from P181 million in the corresponding period last year. Profit from continuing operations increased five percent to P179.9 million from P171.3 million.
The improvement came against an eight percent decline in operating income to P957.5 million, while net interest income edged down one percent to P764.1 million. Non-funded income fell 28 percent to P193.4 million, partly reflecting a once-off insurance adjustment recorded in the previous year.
Letshego’s bottom line was supported by a sharp reduction in impairment charges, which fell 62 percent to P32.6 million from P86.4 million. The loan loss ratio also improved to 0.5 percent from 1.4 percent, reflecting stronger collections and recoveries.
Operating expenses declined seven percent to P525.4 million, helping the group maintain its cost-to-income ratio at 55 percent despite weaker revenue. In Botswana, Letshego’s profit after tax remained unchanged at P104 million, despite tight liquidity and elevated funding costs weighing on lending activity and margins.
Namibia was the group’s strongest continuing market, with profit rising 12 percent to P208 million, while Eswatini recorded a 42 percent increase to P27 million. Mozambique’s profit fell 14 percent to P153 million.
The results come as Letshego advances plans to sell its Ghana, Nigeria, Rwanda, Tanzania and Uganda operations, focusing capital on markets offering stronger returns.