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In June 2017, dfcu Limited posted record-high first-quarter profits, helped by improving loan quality and the acquisition of Crane Bank Ltd by subsidiary dfcu Bank in January 2017, and the prospects for the dfcu bank appear bright.


According to the interim financials for the half 2017 period, dfcu Limited posted a 73.8% growth in balance sheet from 1.76 trillion at 31st December 2016 to Ugx. 3.05 trillion as at June 30, 2017.

In the first half of 2017 profits before tax amounted to Ugx. 151 billion—two-and-a-half times more than in December 2016 and the highest ever for the period. Similarly, dfcu Ltd registered a 62% increase in customer deposits to Ugx. 1.838 trillion.

The improvement in profitability is due to a drop in the Non-Performing Loans (NPLs). At the end of June 2017, the share of NPL ratio declined to 5.5 % from from 6.6% as at December 2016. A sharp reduction in loan write-offs, indicating improving loan quality, also contributed to the rise in profits. Dfcu’s NPL stands at 5.5% - below the average market level at 6%.” Noted, Kate Kabaingi Kiiza, Chief Financial Officer at dfcu Bank.

Total income rose to Ugx 225 Billion up from Ugx 84 billion recorded at the end of June 2016. The June 2017 income includes a bargain purchase resulting from the fair valuation of the net assets acquired from Crane Bank and the deferred obligation. Meanwhile, operating expenditure edged up by 89.5% in the first half year, 2017 as employee numbers rose slightly as employee numbers increase and expanded branch network of 67 branches

Impact on the forecast

Rising profits at dfcu Ltd are expected to boost shareholders, contributing to relatively banking sector growth and real GDP growth, which we forecast to average 4.0% for the FY 2017-18.


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