LETSHEGO GROUP BAGS PROFITABLE 2019 1ST HALF

Letshego Group, a financial institution headquartered in Botswana with subsidiary companies in 11 African countries including Tanzania, has announced profit of Tanzanian Shillings 81.9bn/- for the first six months of 2019, being two per cent lower compared to Tanzania Shs 83.2 profit realised during the similar period last year.

The Acting Chief Executive Officer of the Letshego Group, Mr Dumisani Ndebele, told the media that the Group was proudly African and has continued to place itself in a better position to deliver financial services especially to those underserved by mainstream banking services.

“Generally, the Letshego Group business trend for the first six months ended June 30, 2019, was within expectations and set targets. Although there were management changes, we have witnessed good progress in the first half period for 2019. We are working on improving our services to ensure more revenue sources and reduction in operational costs,” said Mr Dumisani.

The trend was expected to continue into the second half of 2019, he said, adding, a number of initiatives have been started with positive results expected into the second half of 2019 and beyond.

Mr Dumisani explained further that advances to customers totalled Sh 2.3tr/-, being an increase of 15 per cent compared with the similar period in 2018. The Group remains well capitalised with a capital adequacy ratio of 38 per cent and a debt to equity ratio of 110 per cent, he said.
Total borrowing customers increased to 387,000 compared with 364,000 in the previous year. Also, there was an increase in total savings customers to 250,000 compared with 167,000 in the previous year. Letshego employs 1,902 full time workers supplemented by an additional 1,459 commission-based sales agents compared with 1,398 in 2018. Thus, the Letshego trend is to keep on climbing, he said.

For his part, the Tanzania Letshego Bank’s Director of Business Inclusion, Mr Solomon Haule said their bank has partnered with mobile phone services vendor, Airtel, to launch a package known as “TIMIZA Akiba,” Kiswahili for Fulfill your Savings, to enable Tanzanians develop a savings culture through their handsets and to earn five per cent interest on their savings at the end the year.

Also, Mr Haule said the package amounts to a virtual savings account with Letshego Bank Tanzania so that in the end, clients could invest in productive ventures of their choice for national development.

He said, Letshego Bank, which has been in the country for the last eight years, is part of the Letshego Group, which is highly experienced in financial matters, especially in micro financing. Mr Haule called on Tanzanians to seize the opportunity offered by their bank to help improve their economic wellbeing.