Letshego release Interim results

The consumer finance group released its interim results for the nine months ended 31 July 2007. Interest income firmed 15.5% to P134.1m driven by solid book growth with net advances rising 58% to P625.5m. The net interest margin trimmed to 89.5% compared to 94.7% in the same period last year. Fee and commission income which is comprised of joining fees for the Legal Guard insurance product, arrangement fees for the executive loan product, and commission and administration fees from credit life insurance increased to P33.0m from P15.7m the previous period. Other operating income increased 32% to P2.8m.Expenses were up considerably on the back of start-up and operational costs incurred in the group’s regional expansion activities. Staff costs rose 69% to P25.8m while other operating expenses were up 55% to P21.5m.Net income for the period increased 15% to P88m producing basic EPS of 58.4t versus 50.9t for the same period last year. Botswana was the major contributor to revenue and profitability. Swaziland contributed P9m in pre-tax profits while all the other African operations reported losses, the biggest being a P2m loss in Tanzania. The group has secured a US$7.5m facility and it is in negotiations for a further US$50m facility. An interim dividend 14.0t per share was declared payable on 2 November 2007