Letshego Namibia dividend raised by 31% despite a 5% drop in earnings to N$303m (US$19m)

Published On: April 14, 2022By Tags: Southern-Africa

Letshego Namibia raised its FY 2021 dividends by 31% despite a 5% drop in its earnings to N$303m (US$19m).

Highlights:

  • H2 2021 earnings fell by 10% against H1 2021 on account of increased operating expenses and a reduced net interest margin.
  • Letshego Namibia’s share price has risen sharply this year, up 28% in N$ and 39% in US$ YTD. This, we believe, is primarily as the share price has fallen almost continuously since the shares were listed in 2017 and the valuation at end of 2021 had become compelling.
  • Loans and advances have increased in double digit terms in each of the past five years. Notwithstanding this, Letshego Namibia’s risk profile is modest with NPL’s below 7% since 2017 and charge-offs below 1% since 2017.
  • Business efficiency is stable with operating expenses/total assets ratio of 6.6%.

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About the Author: Hartland-Peel Africa Equity Research

Sub-Saharan Africa ex SA: Equity, debt and FX research covering sixteen countries and advising institutional investors. Proprietary data base of sixteen African stock markets, 250+ companies which is one of the most extensive and complete. New issues, IPO’s and distribution of equity on privatisation. Development of lending and corporate finance opportunities for the bank, privatisation and asset management. An ‘A’ rated equity analyst by South African institutional investors as polled by the Financial Mail in 1998 and 1999.

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