FirstCred bounces back

Microlender, FirstCred Limited, posted pretax profits of P58.6 million for the year ended December 2020, in its first results since changing the end of its financial year. The group’s results come after the Botswana Stock Exchange (BSE) warned that the delay in publishing the audited financial statements could result in suspension or termination from the local exchange. FirstCred is listed on the BSE’s fixed income board. According to the recently published results, FirstCred’s numbers were helped by higher loan book growth and bad debts recovered from related party loans. The microlender’s loan book reached P207 million by the end of 2020, from P137 million at the end of 2019. FirstCred directors said they were monitoring the impact of COVID-19 on the business, and expected a decline in business in the second quarter of the 2021 financial year. However, the microlender’s loan book is largely based on the civil service, which has been insulated from job cuts since the pandemic broke out.