dfcu Bank profit up by 25% as dividend reaches Shs25.2

dfcu Bank acquired some of the assets and liabilities of Crane Bank in January this year. FILE PHOTO

What you need to know:

  • In February, Bank of Uganda (BoU) reduced the Central Bank Rate by 0.5 percentage points to 11.5 per cent, saying the move is meant to stimulate economic activities in the country which have persistently remained low.
  • Latest data from the BoU’s State of the Economy Report released last December noted that “the domestic economic growth outlook remains subdued.”

Kampala. Dfcu Bank has reported a 25 per cent jump in after-tax profit in 2016 after a good return was made on investments in government securities.
In results published on Tuesday, the after-tax profit of dfcu was Shs46.2b in 2016 up from Shs37b at the end of 2015.
dfcu, which acquired some of the assets and liabilities of Crane Bank in January this year, attributed this rise in profitability to the strategic placement in government securities investments.
According to the financial statements, income from government securities grew by 66 per cent to Shs72.2b in 2016.
Government securities offered higher yields 2016 as banks slowed down in lending to the private sector.
dfcu’s investment in government securities rose for both those held till maturity and those that are traded.

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