Dfcu posts 47 per cent profit growth in 2009

Kampala

Dfcu is expected to announce its 47 per cent profit growth for 2009, today.

In a press release ahead of the official announcement, Dfcu Ltd said it had scored above the industry’s average growth and has delivered above inflation value to its shareholders.
Net profit for the Group, which also incorporates Dfcu Bank, surged by 47 per cent from Shs13.14 billion in 2008 to Shs19.28 billion in 2009.

This was a net result of the bank’s good performance in key business fundamentals such as customer deposits, assets and revenue growth.

Customer deposits grew by 36 per cent from Shs255 billion to Shs347 billion supported by a series of new products as well as an ambitious foot print expansion that saw the bank add five new branches to the network, bringing the number to 24 branches.

The new branches include: Ndeeba, Isingiro, Jinja, Hoima and Dokolo.

During 2009, the Group also grew its lending portfolio by 15 per cent, from Shs283 billion in 2008 to Shs326 billion in 2009. This, with the growth in deposits, contributed to a 23 per cent growth in total assets, from Shs496 billion in 2008 to Shs612 billion in 2009.

Shareholders’ funds grew by 22 per cent from Shs63 billion to Shs76 billion.

The Bank’s Board, is recommending a dividend of Shs31 a share, representing a 47 per cent increase from the Shs21.13 paid out in 2008.

Dfcu Ltd Board Chairman, Mr Bill Irwin, said the results fitted within the overall vision of the Group.

Benefit of integration
“The fact that we were able to continue growing shareholder value against the backdrop of a harsh economic climate is a direct benefit of the integration of Dfcu Limited and Dfcu Bank process that started in 2008,” he said.
He said the Group will maintain a critical focus on expansion of distribution and delivery channels, development finance, upgrading IT platform, risk management and product innovation.
Dfcu Bank has branches spread across Uganda.

As of August 2009, the bank had opened a total of 22 branches with another 30 planned in the next five. The bank also plans to expand into the East African regional markets of Kenya, Tanzania and Rwanda and Burundi very soon.