Letshego Faidika Bank profit hits Sh1.3 billion

Dar es Salaam. Letshego Faidika Bank Limited posted a gross profit of Sh1.3 billion during the third quarter of 2023, the first ever since the merger of operations in June 2023.

Letshego Faidika Bank is the result of a merger between two financial institutions, Letshego Tanzania and Faidika Microfinance, which officially commenced its banking operations in July 2023.

According to the recently published financial statements, the profit before tax for Letshego Faidika Bank Lim-ited rose by 234 percent to Sh1.3 billion, compared to a loss of Sh981 million for the same period in 2022.

The bank’s country CEO, Mr Baraka Munisi, said that after merging the two subsidiaries into one focused and more unified operation in Tanzania, the focus has been on seeking to leverage the benefits through greater opera-tional efficiencies and synchronised momentum towards long-term sustainable stakeholder returns.

The merger created a financial outfit that boasts Sh108 billion in total assets and net loans of Sh72.7 billion.

Letshego Faidika Bank Limited also managed to cut the ratio of Non-Performing Loans to total gross loans from 44 percent to 18 percent on quarter-on-quarter basis.

“Earning assets to total assets improved to 72 percent from 59 percent quarter on quarter, while the cost to in-come ratio improved to 83 percent from 176 percent in the previous quarter,” said Mr Munisi, stressing that the lender had the ambition of becoming one of Tanzania’s leading mid-tier banks over a period of three to five years.

“I’m optimistic and inspired about the future of Letshego Faidika Bank as we remain committed to balancing sustainable performance with strong world-class governance frameworks, delivering tangible and measurable value for customers and all our stakeholders,” he said.