Letshego Ghana Savings and Loans PLC (Letshego Ghana) reported profit after tax of GHS 71.143 million for the nine months ending September 30, 2025, demonstrating resilience amid Ghana’s evolving financial landscape. The unaudited results show the savings and loans institution strengthened its capital position while navigating substantial credit quality pressures.
The company’s total assets grew to GHS 1.752 billion from GHS 1.617 billion in the corresponding period of 2024, driven primarily by an expanding loan portfolio. Net loans receivable climbed to GHS 1.142 billion, up from GHS 1.009 billion year over year, reflecting continued demand for the company’s lending products across its network of 10 branches serving over 2.5 million customers through various delivery channels.
However, profitability gains came alongside elevated credit risk exposure. Impairment charges surged to GHS 160.405 million during the period, substantially higher than prior year levels. The company’s Non Performing Loan (NPL) ratio stood at 25.6 percent as of September 2025, marginally improved from 25.9 percent in September 2024 but significantly above the Bank of Ghana’s 10 percent regulatory cap.
Operational efficiency showed marked improvement, with the cost to income ratio declining to 47.4 percent from 55.0 percent in 2024. Net interest income for the period totaled GHS 345.728 million, down from GHS 365.875 million despite rising interest income, as interest expenses grew at a faster pace. Total operating income reached substantial levels driven by product diversification, particularly in mobile loans and deduction at source financing for government employees.
The company’s funding structure shifted notably during the period. Customer deposits decreased to GHS 699.907 million from GHS 746.001 million, while borrowings increased sharply to GHS 609.111 million from GHS 359.823 million. This transition reflects Letshego Ghana’s strategic pivot toward alternative funding sources as it scales operations. Management has indicated plans to achieve 100 percent local funding by year end to mitigate foreign exchange volatility risks.
Cash flow patterns revealed operational strain from rapid growth. The company recorded negative operating cash flow of GHS 229.739 million, primarily due to working capital demands associated with loan book expansion. Financing activities generated positive cash flow of GHS 318.648 million, largely from new borrowing drawdowns totaling GHS 571.985 million, which funded both the operating deficit and investing activities.
Capital adequacy remained robust despite pressure from asset growth. The Capital Adequacy Ratio (CAR) measured 20.4 percent in September 2025, down from 23.0 percent a year earlier but comfortably exceeding regulatory minimums. Total equity stood at GHS 370.694 million compared to GHS 335.715 million in the prior period, bolstered by retained earnings and statutory reserves.
Letshego Ghana faces ongoing challenges with loan recovery, particularly affecting its traditional payroll lending segment. Chief Risk Officer Akua Donnir has noted that customers migrating abroad for employment opportunities have complicated debt collection efforts. The company deployed automated robotic calling services to address recovery issues, reportedly recovering GHS 10 million through this intervention.
The institution’s mobile lending portfolio demonstrates stronger performance metrics, achieving a 98.8 percent recovery rate. This segment represents the largest portion of Letshego Ghana’s business model and contrasts sharply with challenges in other lending categories. Management has tightened credit provisioning and write off policies to better align portfolio risk with institutional appetite.
Letshego Ghana operates as a wholly owned subsidiary of Letshego Holdings Limited, Africa’s largest payroll lender headquartered in Botswana and listed on the Botswana Stock Exchange. The parent company serves 11 sub Saharan markets with a mission to deliver inclusive finance solutions to underserved populations. Letshego Ghana opened operations in September 2010 and serves government employees, Ghana Armed Forces personnel, and police officers through strategic partnerships.
The company has emphasized Environmental, Social, and Governance priorities, including a GHS 200 million solar energy financing partnership with the Catholic Church. Ghana Stock Exchange Managing Director Abena Amoah has encouraged Letshego to explore issuing green, social, or gender bonds to further its sustainability agenda.
Industry context shows Ghana’s banking sector grappling with elevated non performing loans following the country’s debt restructuring and inflation pressures. The banking industry NPL ratio declined to 23.6 percent in April 2025 from 25.7 percent in April 2024, according to Bank of Ghana data. Central bank authorities plan to cap the NPL ratio at 10 percent by December 2026, highlighting the urgency of addressing asset quality concerns across the financial system.
