AFB Ghana, a subsidiary of the regional inclusive finance group, Letshego Holdings Ltd, recorded strong growth results for 2017.
Although coming off a low base, profit after tax has hiked 166 percent year-on-year, with loans disbursed increasing by 75 percent.
Customers also increased by a quarter of a million for the same period.
Speaking at Ghana Stock Exchange’s annual ‘Facts behind the Figures’ forum, afb Ghana’s Managing Director, Arnold Parker, commented, “2017 has been a milestone year for afb Ghana. We started the year on a high note in finalizing our acquisition by the like-minded Letshego Group which brings two decades of experience in inclusive and sustainable finance to communities across 11 markets in Africa. Then, thanks to the Letshego’s increased investment and confidence in afb Ghana’s growth potential, we have since forged new strategic partnerships to launch financial solutions which meet the needs of thousands of Ghanaians by being accessible, simple and appropriate in value.”
afb Ghana’s positive growth in customer numbers can largely be accredited to the launch of “Qwikloans” during the second half of the year, a dynamic partnership afb forged with MTN Ghana.
afb Ghana started the year with around 50,000 customers, and closed the financial period with over 300,000 customers, thanks to the simple, accessible and appropriate philosophy afb Ghana has adopted since its acquisition by the Letshego Group in January 2017.
In February 2018, afb Ghana and the Letshego Group celebrated yet another milestone for the Ghana business in disbursing their one millionth Qwikloan.
Mr Parker added, “The strong performance of the business was underpinned by effective credit policies, collections and loan recovery policies. At this same platform last year, we expressed our confidence about 2017 and outlined the synergies between Letshego Group’s strengths and Ghana’s growth prospects.”
afb Ghana’s profit after tax in 2017 increased by 166 percent, with net impairment allowance reducing by 66 percent year on year.
Total assets increased by 64 percent and the loan book also grew by 75 percent as the company remains strongly capitalized.
Outlining the way forward, Arnold Parker reiterated afb Ghana’s continued commitment to robust credit controls, secure digital systems, comprehensive financial compliance and prioritized customer experience – all leveraging the Letshego Group’s investment and regional expertise.
afb Ghana MTN Bonds were listed on the Ghana Stock Exchange (GSE) three years ago.