DFCU bank has declared its financial results for the period January to June this year posting a remarkable profit over four times what it made in the same period in 2016.
The figures released on Tuesday indicate that the bank’s net profit shot to Ush 114 billion from Ush 23.3 billion in the six months to June 2017.
According to the report, throughout the entire 2016, DFCU made Ush 45.3 billion and Ush 58.3 billion in net and gross profit respectively.
The same performance report shows that DFCU’s deposits grew from Ush 982 billion to Ush 1.8 trillion while its assets tripled to a sum of Ush 3 trillion year on year.
But this overwhelming performance can better be understood in the context of DFCU bank’s recent acquisition of Crane Bank which was the third larget largest with assets of about Shs 1.8 trillion by end of 2015.
Crane Bank was faced with financial volatility with the highest non-performing loan portfolio (20%) in the banking sector and subsequently, the regulator, Bank of Uganda stepped in to safeguard Crane Bank depositors.
Bank of Uganda placed the embattled Crane Bank under receivership until DFCU was vetted and found to be a suitable investor to take it over.
It is therefore no wonder, that DFCU’s half year financials also report a 50% surge in its customer base and growth by 1.7% in its balance sheet from Ush 1.8 trillion to Ush 3.5 trillion between December 2016 and June this year.
The total customer deposits inherited by DFCU from Crane Bank were worth Ush 600 billion.
DFCU’s loan book has also grown to Shs 1.3 trillion from Shs 759 billion in the first half of 2017 compared to the same period in 2016.
“The bank’s total capital as at December 2016 stood at about Ush 262 billion. With the injection of the capital (Ush 180 billion) injection with the acquisition of Crane Bank, it has almost doubled. That demonstrates the value which DFCU bank has today and the potential that it has to deliver value to our shareholders,” Kate Kizza, the DFCU Head of Finance told journalists at a press conference held at Sheraton Hotel Kampala.
In regard to how the bank is currently positioning itself for the future, William Sekabembe the DFCU Executive Director said; “We want to become market leaders. And part of our strategy is to transform DFCU from a niche bank focusing on SMEs to a fully universal bank that provides all services across the spectrum.”
He also said that a bigger balance sheet has now placed DFCU in a position to expand its lending capacity as well as sectors that the bank can’t invest in.
“We are looking to invest in technology and our digital strategy focuses on mobile and agency banking. As big players, we plan on rolling out over 1,000 agents in the next six months. We shall keep our branches but at optimum level,” Sekabembe said.