- Letshego Ghana Profit Rises 53.64% to GH¢109.30 million
Letshego Ghana Savings and Loans Plc recorded a 53.64% increase in profit after tax to GH¢109.30 million in the first nine months of 2026, supported by stronger interest earnings, lower funding costs and an expanding customer loan portfolio.
The performance, compared with profit of GH¢71.14 million in the corresponding period of 2025, was accompanied by higher customer deposits, stronger capital ratios and a substantial increase in cash holdings.
Profit before tax rose 55.49% to GH¢150.84 million from GH¢97.01 million, according to the company’s unaudited financial statements for the period ended September 30, 2026.
The results show Letshego generating more income from its lending activities while reducing interest expenses. That combination provided the principal support for earnings, allowing the institution to absorb higher operating expenses and credit loss charges while still delivering substantial profit growth.
Interest income increased 16.94% to GH¢844.16 million from GH¢721.84 million a year earlier. At the same time, interest expenses fell 26.58% to GH¢158.38 million from GH¢215.71 million.
Together, those movements lifted net interest income the amount remaining after interest costs are deducted by 35.49% to GH¢685.78 million, compared with GH¢506.13 million previously.
The improvement is a significant feature of the results. Letshego earned more interest while spending less on the funding supporting its operations, strengthening the income available to cover credit losses, staff costs and other expenses.
The summary statements do not explain how much of the reduction in interest expenses came from changes in funding rates, funding composition or the timing of borrowings. However, the balance sheet also showed lower borrowings and higher customer deposits against the September 2025 comparative.
Borrowings declined 12.69% to GH¢531.81 million from GH¢609.11 million, while customer deposits increased 12.54% to GH¢787.64 million from GH¢699.91 million.
The deposit increase added GH¢87.74 million to that source of funding. Maintaining a growing deposit base alongside disciplined borrowing costs will be important to sustaining the improvement in net interest earnings.
Letshego also expanded its lending portfolio. Gross advances to customers increased 17.26% to GH¢1.68 billion from GH¢1.44 billion, indicating a larger volume of credit outstanding than a year earlier.
After impairment provisions, the net loan book stood at GH¢1.19 billion, compared with GH¢1.14 billion, an increase of 3.99%.
The difference between gross and net loan growth reflects the higher provision for impairment, which reached GH¢496.02 million against GH¢293.76 million in September 2025. This provides relevant context for the expansion: a larger gross portfolio was accompanied by a greater allowance against potential credit losses.
Even after the credit loss expense for the period, income from lending activities increased 33.39% to GH¢461.17 million from GH¢345.73 million.
The disclosed net non-performing loan ratio also improved, falling to 7.10% from 12.30%, a reduction of 5.20 percentage points.
That is an encouraging movement in the reported measure of asset quality. However, because it is a net ratio, it should be read alongside the increased impairment provisions rather than treated as a standalone measure of changes in underlying borrower performance.
Credit loss expenses rose 40.02% to GH¢224.60 million from GH¢160.41 million. Stronger net interest earnings nevertheless enabled Letshego to absorb that charge and report higher income from lending.
Other income movements also supported the overall performance. The company recorded a foreign exchange gain of GH¢10.36 million, compared with a loss of GH¢22.48 million in the corresponding period of 2025.
That favourable swing helped offset a decline in fees and commissions, which fell to GH¢36.50 million from GH¢42.63 million.
Total operating income consequently increased 38.85% to GH¢508.03 million from GH¢365.88 million. The growth exceeded the 32.85% rise in total operating expenses, which reached GH¢357.19 million.
Personnel expenses increased to GH¢31.24 million from GH¢23.92 million, while administration and other expenses rose to GH¢310.26 million from GH¢229.74 million. Depreciation and amortisation expenses declined to GH¢5.50 million from GH¢6.29 million.
The company’s separately disclosed cost-to-income ratio edged up to 48.10% from 47.40%, leaving expense management an area to monitor as the business grows.
The stronger earnings also helped build shareholders’ funds. Total equity increased 28.35% to GH¢475.78 million from GH¢370.69 million in September 2025.
Within the current financial year, equity rose from GH¢366.00 million at January 1, principally through the addition of the nine-month profit. The statement of changes in equity also recorded a GH¢0.48 million movement in the share-based payment reserve.
Retained income reached GH¢185.67 million, while issued capital remained unchanged at GH¢162.05 million.
The capital disclosures showed improvements across several measures. The capital adequacy ratio increased to 22.00% from 20.40%, while the Tier 1 ratio rose to 28.90% from 25.60%. The leverage ratio increased to 25.60% from 21.30%.
These movements accompanied a 6.20% increase in total assets to GH¢1.86 billion from GH¢1.75 billion. Equity therefore grew faster than the overall balance sheet against the reported comparative.
Cash and cash equivalents were another strong feature, rising 85.91% to GH¢490.31 million from GH¢263.74 million in September 2025.
The cash-flow statement recorded a GH¢247.71 million increase during the first nine months of 2026 from an opening balance of GH¢242.60 million.
Operating activities generated positive net cash of GH¢160.31 million, although this was below GH¢318.65 million a year earlier. Investing activities contributed a further GH¢180.62 million, supported by net proceeds from treasury bond transactions.
Letshego also repaid GH¢148.22 million in borrowings while drawing down GH¢55.00 million, producing a net financing outflow of GH¢93.22 million.
The results leave the company entering the final quarter with higher earnings, a larger deposit base and stronger reported capital measures. Sustaining that performance will depend on preserving the improvement in funding costs while keeping operating expenses and credit losses under control.
For the first nine months, however, growth in lending income provided sufficient strength to absorb those pressures and deliver a substantial increase in profit.
