Afb Ghana, a subsidiary of regional inclusive finance group, Letshe go Holdings Limited reported positive growth and strong results in 2018.
The company’s profit after tax year-on-year increased to GH? 9 million from 8.2 million in 2017, representing a 17 per cent increase and operating income increased by 130 per cent to GH? 120, 000 from GH?50, 000, the gross and net loan books increased by 168 and 142 per cent respectively.
Arnold Parker, the Chief Executive Officer of afb speaking when the company took its turn at the Facts Behind the Figures programme at the Ghana Stock Exchange in Accra attributed the strong performance to its mobile loans known as ‘Qwikloan’ and other products.
“afb Ghana is pleased with the positive set of results, and the initial response we have experienced with Qwikloans. In 2019 we will continue to review our mobile loan offering to build a sustainable commercial offering for the longer term, while maintaining focus on our deduction at source solutions provided to public sector employees. This year we will also conclude the transition of our brand to Letshego’s blue and yellow, a brand that represents 21 years of financial inclusion in Africa,” he said.
He said customers’ deposit rose to GH? 47 million in 2018 from GH?10 million in 2017, while cost to income ratio decline to 42 per cent in 2018 from 58 per cent in 2017 and said this was due to the introduction of technology in the operations of the company.
He said 1.8 million customers were served under the Qwikloan product and the company provided the Credit Reference Bureaus with credit information of about 11 million customers to enable the latter to generate credit report on those borrowers.
Mr Parker said afb, which is licensed services provider, providing credit to individuals across public and private sectors, as well as supporting micro and small enterprises, in 2015 listed medium term bonds on the GSE to finance the company’s operations and during the year under review the Bank of Ghana approved the Bond Programme from GH?100 million to GH?300 million.
“In line with our business demands, GH?163.5 million new bonds were issued, and interest payments of GH?13.5 million were made to bondholders and capital payments of GH?37.3 million were made to bondholders,” he said.
Mr Parker said in December 2018, the long-term credit ratings of the company and its investment grade Medium Term Notes bond programme were reaffirmed as BB plus (GH) and BBB plus (GH) respectively, with the outlook accorded the Global Credit Rating Company as positive.
Touching on the company’s outlook for 2019, the Chief Executive Officer of afb said the company “will be continuously omitted to its great customer experience agenda, secured digital solutions and robust credit controls”.