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Home / Letshego remains resilient  …despite poor NSX performance

Letshego remains resilient  …despite poor NSX performance

2021-04-08  Maihapa Ndjavera

Letshego remains resilient  …despite poor NSX performance

Letshego Holdings Namibia presented the worst performer on the Namibia Stock Exchange (NSX) during the first quarter of 2021, as their share price was reduced by 28.6%. Other companies classified as worst performers were Oryx Properties, down by 8.9%, and Namibia Breweries down by 6.8%.

Local stock brokerage and financial advisors revealed these figures, 

Cirrus Capital, who also listed the best performers during the first quarter of 2021 as Standard Bank Namibia, up by 12.73%, followed by Paratus Namibia Holdings up by 4.4%, and Capricorn Group up by 2.2%.

Meanwhile, the Botswana-headquartered Letshego Group’s full-year 2020 reviewed financial results showed the group demonstrated business resilience, resulting in robust financial performance for the financial year ended December 2020. During the challenging economic environment, Letshego’s total revenue increased by 0.1%, recording a profit after tax of N$320.8 million, representing a decrease of 20% from N$401 million in 2019.

Performance was underpinned by 12% growth in net customer advances, and asset quality improved with an overall reduced Loan Loss Ratio (LLR) of 0.3%.

According to Letshego’s annual report, business resilience was further demonstrated by a reduction in non-performing loans to 5.3%, from 6.9% in 2019. It also stated that customer deposit mobilisation kicked off in 2020, with growth from N$43 million at the end of 2019 to N$187 million at the end of 2020.

The group’s focus for the year centred around a return to stability, aimed at strengthening its core business and laying the foundation for a return to growth, through diversification and digitalisation, as envisaged by the group’s strategic roadmap.

In the second half of the year, Letshego launched and progressed the first phase (Plan 6) of its transformation strategy, culminating in the pilot launch of the dynamic LetsGo digital platform in February 2021. This platform is positioned to be a cornerstone of the group’s digital strategy.

“By fast-tracking the digitalisation of systems and channels, customer access was not only maintained but enhanced during the financial period under review, improving the group’s business performance in the second half of the year compared to the first half,” reads the report.

mndjavera@nepc.com.na


2021-04-08  Maihapa Ndjavera

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