- Letshego Ghana profit more than doubles in Q1 as net interest income surges
Letshego Ghana Savings and Loans has reported a sharp rise in first-quarter profit, powered by a strong uplift in net interest income and a broad expansion in its balance sheet, as the lender increased lending and improved cash generation during the period.
In its unaudited financial statements for the period ended 31 March 2026, Letshego said profit for the period rose to GH¢63.65m from GH¢24.01m in the same period last year, a more than two-and-a-half-fold increase that underscores renewed earnings momentum in the savings and loans segment.
Higher core income anchored the performance. Net interest income climbed to GH¢268.95m, up from GH¢138.88m in Q1 2025, supported by growth in interest income and improved interest spread. The expansion in core earnings lifted operating income to GH¢316.95m, from GH¢156.73m a year earlier, reinforcing a picture of stronger underlying banking activity.
Income from lending activities also improved. Letshego reported income from loans and advances of GH¢193.82m, up from GH¢97.62m, while foreign exchange gains strengthened to GH¢27.45m from GH¢2.88m, helping to widen the operating cushion for the quarter.
Costs increased with the higher activity base, but not enough to offset the revenue surge. Total operating expenses rose to GH¢213.0m, from GH¢125.5m, reflecting higher personnel expenses, administration and other operating costs. Even so, profit from operations before tax more than doubled to GH¢83.99m from GH¢31.20m, despite a higher income tax charge.
The balance sheet reflects the quarter’s headline improvement. The company increased total assets to GH¢1.94bn from GH¢1.47bn a year earlier, reflecting a stronger asset build-up and the expansion of the loan book.
Net loans and advances to customers rose to GH¢1.29bn, up from GH¢1.06bn, while gross loans increased to GH¢1.61bn from GH¢1.22bn, indicating that lending growth remains a central driver of the institution’s expansion strategy.
Funding also strengthened. Customer deposits rose to GH¢656.90m from GH¢605.36m, supporting asset growth and helping the institution maintain liquidity. Borrowings increased to GH¢354.67m from GH¢279.34m, suggesting a more active use of wholesale or structured funding alongside deposit mobilisation.
Letshego’s liquidity position improved visibly. Cash and bank balances increased to GH¢480.27m from GH¢242.92m, while the cash flow statement shows the lender generated positive operating cash, reporting net cash flows from operating activities of GH¢89.54m compared with GH¢26.37m a year earlier.
The bank also posted a stronger end-of-period cash position. Cash and cash equivalents ended the quarter at GH¢480.27m, up from GH¢242.92m, reflecting both improved operating inflows and net investing cash generation from treasury bond redemptions.
Letshego reported a capital adequacy ratio of 20.1% in March 2026, down from 22.3% in March 2025, still robust but reflecting the impact of balance-sheet expansion on capital ratios. The tier 1 ratio stood at 27.2%, while the leverage ratio was 22.6%, according to the quantitative disclosures.
One area investors will track closely is asset quality. Letshego reported a non-performing loan ratio of 18.2%, up from 11.2% a year earlier. While the company’s numbers show profit is rising strongly, a higher NPL ratio can increase provisioning pressure over time and becomes a key indicator of the sustainability of earnings in a rising-credit environment.
