Latest Updates

dfcu Limited 2021 financial results

Press Release Thursday 31st March 2022 dfcu Limited announces 2021 financial results Core business metrics are solid as total operating income registers a 21% growth dfcu Limited has today announced its audited financial results for the year ended 31 December 2021 showing a strong leap forward on the core business metrics. Highlights

  • Interest expense reduced by 26% from UGX 110bn in 2020 to UGX 82bn in 2021
  • Net interest income increased by 17% from UGX 233bn in 2020 to UGX 273bn in 2021
  • Non-interest income increased by 35% from UGX 70bn in 2020 to UGX 93bn in 2021
  • Operating income increased by 21% from UGX 304bn in 2020 to UGX 369bn in 2021
  • Cost to income ratio reduced to 50% in 2021 from 63% in 2020
  • Borrowed funds reduced by 12% from UGX 217bn in 2020 to UGX 191bn in 2021
  Explaining the results, a statement from the Board of Directors of dfcu Limited underscored that while credit impairments had a substantial impact on earnings, the Company demonstrated resilience in 2021 showing continued improvement in most of the top line figures driven by strong income growth and cost control. Operating income grew by 21% year on year while cost to income ratio improved to 50%, an indication that the Company is beginning to reap benefits due to efficiencies derived from its investment in technology and cost optimisation. The Company remained well capitalized with capital ratios of 22.28% and 23.46% for tier one and tier two capital respectively. The Liquidity position remained strong with an average liquid assets ratio above 36%. With the robust liquidity, strong equity shareholders, healthy capital position and a refreshed five-year ‘customer obsessed’ strategy, the Company will continue to play its role in supporting the recovery of its customers and their businesses; and is well positioned to seize the emerging opportunities in several sectors.  Commenting on the results, Mathias Katamba, CEO of dfcu Bank, the trading subsidiary of dfcu Limited said: “We achieved a good leap forward on the core metrics with robust growth in total income and continued reduction in operating costs. The pre-provisioning profit i.e. profit before provisions, fair value losses and tax grew significantly from Ushs 114 Billion in 2020 to Ushs 190 Billion in 2021.              The Bank’s overall profit was significantly impacted by the loan impairment charge, resulting from the adverse impact of the Covid - 19 pandemic, the associated containment measures on our customers’ businesses and the impairment of the financial asset. We continued to support our customers, especially those operating in sectors that remained locked down for an extended period, with credit relief and business recovery loans.” “Looking ahead, we will continue to focus on the growth of our retail business, supporting businesses and individuals in the post covid recovery during 2022, in addition to building resilience in our loan book through rehabilitation and debt recovery programs.” Mr. Katamba concluded.  --END--                                       

Related News

August 3, 2021

News

2021 dfcu AGM Proxy Form

Click here to download the 2021 dfcu Proxy Form

December 19, 2019

News

CDC News Release

News release 19 December 2019 CDC concludes its pioneering six-decade long partnership with DFCU bank with sale of stake to fellow development finance institution CDC Group, the UK’s development finance institution, has today announced its decision to sell its remaining 9.97% stake in dfcu Limited (“DFCU”). The shareholding is being...