Letshego is expecting a decline in profits before tax of between 25-35% in its financial results to be released on Thursday 29 August.
According to the pan-African microfinancier, the drop in profits is driven by hyperinflationary reporting for the Group’s Ghana subsidiary, as well as prudent Expected Credit Loss reporting methodology.
However, despite the drop in profit, the company projects a profit for this reporting period compared to the loss it recorded at the end of 2023.
"Despite downward year-on-year profit comparatives, Letshego Africa’s business fundamentals remain resilient, with strong loan growth recorded in Deduction at Source and Mobile Lending products for the first half of the current year," the company told shareholders.