Letshego Faidika Bank Limited, the result of a merger between two prominent financial institutions, Letshego Tanzania and Faidika Microfinance, has announced a gross profit of Sh1.3 billion for the third quarter of 2023. This achievement marks a significant milestone since the merger officially took place in June 2023, with banking operations commencing in July of the same year.
The recently published financial statements reveal that the profit before tax for Letshego Faidika Bank Limited witnessed a remarkable surge of 234 percent, reaching TZS 1.3 billion. This is in stark contrast to the loss of TZS 981 million reported for the same period in 2022.
Mr. Baraka Munisi, the bank's Country CEO, emphasized that the merger of the two subsidiaries into a unified and focused entity in Tanzania has led to a strategic emphasis on harnessing operational efficiencies and synchronized momentum, ultimately driving sustainable returns for stakeholders in the long term.
The merger has created a robust financial institution boasting total assets of TZS 108 billion and net loans of TZS 72.7 billion. Additionally, Letshego Faidika Bank Limited has successfully reduced the ratio of Non-Performing Loans to total gross loans from 44 percent to a commendable 18 percent on a quarter-on-quarter basis.
Mr. Munisi noted further improvements, stating, "Earning assets to total assets improved to 72 percent from 59 percent quarter on quarter, while the cost-to-income ratio improved to 83 percent from 176 percent in the previous quarter." He expressed the bank's ambitious goals of becoming one of Tanzania's leading mid-tier banks within the span of three to five years.
In light of these promising developments, Mr. Munisi conveyed his optimism for the future of Letshego Faidika Bank, emphasizing the institution's commitment to maintaining a balance between sustainable performance and world-class governance frameworks. He also highlighted the bank's dedication to delivering tangible and measurable value to customers and all stakeholders.
The remarkable financial turnaround and positive performance reported by Letshego Faidika Bank Limited following its merger showcases the institution's potential to become a significant player in Tanzania's banking sector while prioritizing sustainable growth and customer-centric strategies.