Dfcu posts profit drop of Shs72b in half year results

Monday August 27 2018

Former Crane Bank Ntinda branch now rebrand

Former Crane Bank Ntinda that was taken over by dfcu. FILE PHOTO 

By Christine Kasemiire

Kampala.

Dfcu Bank has registered a profit drop of Shs72b for the year ended June 30.
In notes published along the financial results, the dfcu said the bank’s performance had normalised following the integration of the acquired assets of Crane Bank.
The bank registered a profit of Shs41.3b in the year ended June 30 compared to Shs114b posted for the year ended December 31, 2017.
“The results show a profit after tax of Shs41.3b compared to Shs114.1b for the same period in 2017. The results for 2017 included a one off bargain purchase of Shs121.8b,” the notes read in part.
Dfcu acquired assets and some liabilities of Crane Bank following Bank of Uganda’s takeover of the troubled bank.
The bank also registered a drop in interest expenses by 17 per cent from Shs64.3b in 2017 to Shs53.4b in the period under review.
The drop was attributed to the repayment of the bridging facility ($50m loan from Arise BV to recapitalise the bank) and other obligations.
However, customer deposits increased by 10 per cent from Shs1.8 trillion to Shs2 trillion during the period driven by the ongoing digitisation programme and increased customer confidence.
Mr William Sekabembe, the dfcu executive director, at the weekend told Daily Monitor the bank would, in the next half year ending December 31, 2018, leverage on technology to boost customer experience.
The bank, he said, also hopes to roll out agent banking to end its reach as well as recruit new customers.
Investments in the bank’s digital infrastructure along with the cost of repayment, however, ate into the its profitability increasing its operating costs to Shs96b in the year ended June 30 up from Shs91b last year.
The bank’s loan book grew to Shhs1.4 trillion up from Shs1.3 trillion in the period under review.
Dfcu is currently the second largest bank in Uganda after Stanbic with an asset portfolio of Shs3 trillion.

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