dfcu Bank’s H1 profit declines by 14% to UGX35.7 billion

Interim H1 2019 results for dfcu Bank HY are out, indicating a 14.3% decline in net profit to UGX35.7 billion down from UGX41.6 billion in the same period in 2018.

Deposits declined by 1.5% from UGX2.02 trillion to UGX1.99 trillion while lending went down by 3.8% from UGX1.4 trillion to UGX1.36 trillion.

As a result, the bank’s asset book declined by 2.7% from UGX3.03 trillion to UGX2.95 trillion.

This is the first 6 months of new Managing Director’ Mathias Katamba’s firm grip on the bank, since he assumed full reigns in January this year.

However, compared to December 2018, there was a slight 1.3% growth in assets from UGX2.91 trillion to UGX2.95 trillion. Deposits also registered a slight 0.6% rise to UGX2.02 trillion, from UGX1.97 trillion.

dfcu yet to recover from 2018

dfcu bank, now Uganda’s fourth largest bank with about 10% of industry assets is yet to recover from what analysts say was a hard 2018.

Customer deposits largely remained flat, declining 0.4% from UGX1.99 trillion to UGX1.98 trillion. Lending went down 4.8% from UGX1.33 trillion to UGX1.4 trillion.

Full year profits took a 51.6% hit, reducing from UGX127.6 billion to UGX61.7 billion.

Assets declined 4.7% from UGX3.03 trillion to UGX2.89 trillion.

dfcu’s not-so rosy performance, has had an impact on its share price. Share price rose from UGX681 at the beginning of January 2018, rising 42.4% to hit a climax of UGX970 on 17th July 2018 but closed December 2018 at UGX822.97- a reduction of 15%.

Since the year began, dfcu share price has continued in a free-fall, dropping a further 21%, to UGX650 as of today, August 22^nd 2019.