LETSHEGO FAIDIKA BANK ANNOUNCES FIRST PROFIT

Letshego Faidika Bank Country Chief Executive Officer, Mr. Baraka Munisi speaks when announcing the bank’s operations since its merger in June this year.

Dar es Salaam: Recently merged Letshego entities, Letshego Faidika Bank Limited in Tanzania has posted its quarterly financials reflecting its first set of profits since the regional brand merged its operations in June 2023.

For the quarter ended 30th September 2023 the bank profit before tax has increased by 234 percent to Sh1.3 billion, compared to a loss of Sh981 million for the same period in 2022.

Letshego Faidika’s previous quarter ending June 2023 profit before tax saw a loss of Sh464 million. The remarkable achievement for the new bank, showing a positive financial turnaround within just one quarter.

Letshego Faidika Bank Country Chief Executive Officer, Mr. Baraka Munisi commented, “We are delighted with the positive turnaround in our profit before tax in the short term. Having merged our two subsidiaries into one focused and more unified operation in Tanzania, we now seek to leverage the benefits in greater operational efficiencies and synchronized momentum towards long term sustainable stakeholder returns.”

Mr. Munisi added following the merger with Faidika Microfinance at end June 2023, the unified Bank’s total assets grew by 213 percent to Sh108 billion compared to Sh34 billion in second quarter of 2023 and net loans increased 465 percent in the same period to Sh72.7 billion compared to Sh12.8 billion in the second quarter of 2023. He said that during the same period, third quarter ending on September 30, 2023, the bank’s deposits increased by nine percent compared to the previous quarter.

Mr. Munisi highlighted that, following the merger with Faidika Microfinance at the end of June 2023, the combined bank's total assets grew by 213 percent in the quarter to Sh108 billion (compared to Sh34 billion in the second quarter, 2 2023), and net loans increased by 465 percent in the same period to Sh72.7 billion (compared to Sh12.8 billion in second quarter 2023.

He said during the same period, the third quarter ending on September 30, 2023, the bank's deposits increased by nine (9) percent compared to the previous quarter.

“Following the growth of our loan book and efficiency in collections and recovery strategies, the bank’s non-performing loan ratio improved from 44 percent to 18 percent quarter on quarter, earning assets to total assets improved to 72 percent from 59 percent quarter on quarter. The ratio of cost to income improved to 83 percent from 176 percent in previous quarter,” said Mr. Munisi.

Mr. Munisi affirmed Letshego Faidika Bank’s ambition to become one of Tanzania’s leading mid-tier banks over the next three to five-year period.

“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. I would like to express my sincere appreciation to our employees, customers, shareholders, the Central Bank of Tanzania, the Fair Competition Commission, the government and our strategic business partners for their ongoing partnership and support.”

He said the Letshego Faidika Bank remains committed to building business resilience to navigate inherent emerging market challenges and ensure that they continue to improve the lives of customers and members of the communities through simple, affordable and appropriate products and services.

“Finally I wish to reiterate my sincere gratitude to our people for their hard work, dedication and tireless effort over the last few years of transition. Without the personal contribution and energy of our own people, we could not have achieved the progress we are celebrating as a brand and business today. Imara Pamoja! We are indeed #StrongerTogether! ” he said.