Dfcu records Shs73b in profit

Thursday April 2 2020

Dfcu bank has registered growth in

Dfcu bank has registered growth in profitability of Shs73.4 billion, representing a 21 growth compared to Shs60.9 billion in 2018.  

By MARTIN LUTHER OKETCH

Dfcu bank has registered growth in profitability of Shs73.4 billion, representing a 21 growth compared to Shs60.9 billion in 2018.
The dfcu financial results of 2019 show that overall, interest expense reduced by 7 per cent from Shs104.7 billion to Shs97.8 billion, showing improved efficiency in the liability mix as a result of management’s effort to shed off expensive funding and concentrate more on cheaper liabilities.
Consequently, the net interest income of the company increased by 3 per cent from Shs221.1 billion to Shs227.4 billion in 2019.
Non-funded income in terms of fees and commissions grew by 28 per cent from Shs51.2 billion to Shs65.4 billion as the bank harnesses benefits of the investments in technology and growth in the customer base. The financial results further reveal that operating expenses during the period reduced by 4 per cent from Shs202.2 billion to Shs193.1 billion showing improved operating efficiency and as result, the cost to income ratio reduced from 66.2 per cent in 2018 to 60.6 per cent in 2019.

Loans and advances
Loans and advances grew by 10 per cent from Shs1.3 trillion to Shs1.5 trillion as a result of increased disbursements and focus on continuous monitoring of the asset quality for the entire portfolio. The increase in loans and advances was organic.
During the period, the group’s asset base increased by 1per cent from Shs2.916 trillion to Shs2. 958 trillion supported by strong growth in loans and advances.

The Group’s deposit base grew by 3 per cent from Shs1.9 trillion to Shs2 trillion. The company explains that growth was as a result of both newly acquired and existing clients across the business segments. Management implemented a clear strategy of growing the liability base, as well as retention of the existing customer relations.
The shareholders’ funds grew by 9 per cent from Shs521.5 billion to Shs569.7 billion as a result of an increase in retained earnings.
Like any other company, the current global health pandemic of COVID-19 (Coronavirus) is a threat to banking.

moketch@ug.nationmedia.com

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