Letshego Savings and Loans Posts 14.2% Revenue Growth Amidst Rising Operating Costs
Letshego Savings and Loans PLC reported a 14.2% year-on-year growth in total revenue for the 2024 financial year, underpinned by improved loan book performance and disciplined credit risk management.
According to the company’s audited financial statements, total revenue reached GHS 252.6 million for the year ended December 31, 2024, up from GHS 221.1 million recorded in the previous year. The growth was driven largely by increased interest income from advances and loans to customers, reflecting the firm’s focus on expanding access to financial services for underserved markets.
Despite the top-line improvement, Letshego saw a marginal increase in operating expenses, attributed to higher staff costs and administrative overheads associated with digital transformation and branch network expansion.
Profit before tax for the year stood at GHS 43.8 million, slightly down from the previous year’s GHS 45.2 million, as the firm absorbed higher impairment charges on financial assets, in line with a conservative provisioning approach. Net profit after tax declined marginally by 3.7% to GHS 30.6 million.
The company’s balance sheet remained resilient, with total assets rising to GHS 1.03 billion, compared to GHS 925 million in 2023. Customer deposits also grew, reaching GHS 720.4 million, supported by improved depositor confidence and targeted savings products.
Letshego maintained a robust capital adequacy ratio of 16.1%, comfortably above the regulatory minimum, underscoring the institution’s financial stability. The board did not propose a dividend, opting to retain earnings to support future growth.
Looking ahead, management expressed cautious optimism, citing ongoing investments in digital platforms, risk analytics, and product innovation to deepen market penetration and enhance customer experience.
