Letshego Ghana Savings and Loans per its Q4 2023 financial statement, recorded gross interest income of GHS 551 million on loans at end-December 2023.
This is an increment of some GHS 108 million when compared to the GHS 443 million gross interest income recorded same period last year.
Net interest income on loans however stood at GHS 138m – after making an interest expense of GHS 413m – a significant jump from the GHS 68m net interest income recorded same period last year.
The growth in the company’s net interest income resulted in the growth of its Q4 2023 profit as the company’s profit stood at GHS 37.1m at end-December 2023, a recovery from the GHS 9.1m losses recorded at end-December 2022.
Assets of Letshego Ghana in Q4 2023, grew slightly to GHS 1.46bn from GHS 1.12bn in Q4 2022. Asset growth of the company was mainly underpinned by growth in loan receivables which stood at GHS 1.12bn.
Liabilities of the company within the review period also grew to GHS 1.18bn in Q4 2023 from GHS 964m in Q4 2022.
Furthermore, Letshego Ghana’s Capital Adequacy Ratio (CAR) witnessed a commendable improvement, rising from 16.1% to 20.6% by the end of December 2023, indicating strengthened resilience by the company.
Nonetheless, a cause for concern emerges with the drastic decline in the company’s liquidity ratio, plummeting from 254% in Q4 2022 to 41% in Q4 2023. This decline poses challenges to the company’s ability to meet short-term obligations and necessitates a strategic reassessment of its liquidity management practices.
Source: norvanreports.com