dfcu posts strong comeback as profits grow 217% 

Dfcu Limited, the holding company for dfcu Bank has this morning released its performance results for 2022, reporting a strong comeback. 

The company announced that net profit grew by 217% from UGX9.3 billion in 2021 to UGX29.5 billion in 2022, underpinned by a 6% growth in deposits from UGX2.3 trillion in 2021 to UGX2.4 trillion in 2022. The bank also reported an 11% reduction in expenditure, underlined by a 10.4% reduction in interest expenses from UGX62.7 billion in 2021 to UGX56.2 billion in 2022 as well as a 41% reduction in credit impairment charges⏤UGX148.4 billion in 2021 to UGX88.2 billion. 

However, lending was reduced by 9.7% from UGX1.51 trillion to UGX1.36 trillion as the company tamed its credit risk appetite.

While the total volume of loans reduced, the company said it “extended loans to more individuals and businesses across different customer segments, resulting in a growth of the number of borrowers by 15%”.

Assets grew by 3.4% from UGX3.13 trillion to UGX3.24 trillion. 

Shareholders will be smiling to the bank as the board has declared a UGX8.19 per share dividend⏤ altogether UGX6 billion, subject to regulatory approval. The company did not declare any dividends in 2021.  

Dfcu Limited’s strong come-back is on account of an equally solid profit performance by dfcu Bank, the anchor subsidiary which reported net profit grew by 131.8% from UGX13.2 billion to UGX30.6 billion.

“dfcu Limited ended the year strongly with a clear focus on repositioning the business to provide its customers with innovative solutions in the face of emerging challenges in both the local and global business environment,” the company said in a statement by the Board. 

“The company, through strategic and ongoing investments in technology further strengthened its ability to serve changing customer needs. The Company deployed enhancements to the core banking platform, online and mobile banking and agency banking channels to improve customer experience. The new digital capabilities have further improved operating efficiency, enabled new ways of working and ultimately reduced the cost to serve customers,” it added. 

Dfcu said it “continued to make a difference in the communities where we operate with several initiatives in the areas of agriculture, women in business and financial inclusion, and attached greater importance to our Environmental, Social, and Governance programs (ESG)”. 

“Additionally, we increased support to small and medium enterprises to enable them run their businesses in a sustainable manner through a variety of financial solutions. Through our dedicated Agribusiness Development Centre, we supported agribusinesses with capacity building, provision of credit, value chain financing and sponsorship of the national best farmer program,” the company reiterated.  

Looking ahead, dfcu said it “will continue to execute on our strategy anchored on ‘Customer Obsession’, and digital transformation whilst ‘transforming lives and businesses through innovative solutions and empowered people’”.

“We appreciate our customers for giving us the opportunity to serve them, and staff for the unwavering commitment through the year and remain committed to delivering on our mission of ‘growing shareholder value whilst playing a key role in transforming the economy and enhancing the well-being of our people’”, the board directors concluded in the statement.