Question · Q4 2025
Viwe Kupiso questioned the main risks to achieving greater than 100% EPS growth and positive net income in FY2026, particularly given the macroeconomic environment, and asked about current trends in credit quality and loss rates for both consumer and merchant lending books, seeking any early warning signs of stress.
Answer
Ali Mazanderani (Executive Chairman, Lesaka technologies) stated Lesaka is not a proxy for the macro environment, benefiting from digitization tailwinds, and has consistently met profitability guidance for 12 consecutive quarters, expecting to exceed FY2026 targets. He noted risks from exogenous shocks or non-cash impairments. Lincoln Mali (CEO, Lesaka technologies) reported no stress in the consumer book, maintaining a loan loss ratio below 6% despite product changes. Steven Heilbron (CEO, Connect Group South Africa) indicated merchant impairment ratios were consistent at about 1.4% of originated debt, with a slight improvement, and no current issues with impairments.