• Development Finance Company of Uganda Ltd
  • XUGA:DFCU KAMPALA/Uganda
  • 759.00 UGX
  • 0.00 0.00%
  • As of 2017/05/26
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  • About the Company
  • DFCU started by the Commonwealth Development Corporation (CDC) and Uganda Development Corporation (UDC) to support long-term development projects. Also provides retail banking and asset backed finance
  • DFCU Limited is a Uganda-based development finance company. The Company provides commercial banking, term lending, lease and mortgage financing for the development of people and businesses in Uganda. The Company operates through two segments: DFCU Limited, which is the holding company, and DFCU Bank, which is the commercial banking segment.

    DFCU Bank provides products and service levels catering for customer needs in the areas of savings and investment products, personal and current accounts, personal credit, corporate credit, trade finance, foreign exchange trading and money market transfers, among others. It also consists of a development finance segment, which provides medium and long-term finance to private sectors in Uganda. The sectors include agro processing, education, health, manufacturing, transport, hospitality industry, tourism and construction. The Company operates a network of approximately 40 branches and over 290 automated teller machines (ATMs) across the country.

    Website

    www.dfcugroup.com

    Address

    P.O. Box 2767
    Kampala
    Uganda

     

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After a low of $149m in net revenues in 2013, net revenues have grown 7.7% this year slower than last year when they grew at 10%. With this growth they have not recovered to their 5-year peak of £170m
Revenue per year in US $ The higher, the better.
Profits have increased for the last 3 years $47.3m but have not recovered to peak of $51.8m in 2012
Profits per year in US $ The higher, the better.
Profit margins have remained below 30% despite increase in profits indicating a struggle to keep control of costs.
Profit Margin compared to competitors The higher, the better.
Stanbic has maintained return on assets above 3% which is double the global average but is still below the local average.
Management of Assets compared to competitors The higher, the better.
Costs as a percentage of revenue is at 62.82% significantly lower than its peak of 69.85% in 2013. This cost percentage is a lot better than the local average but worse than African average.
Management of Costs compared to competitors The lower, the better.
Cash generation by Stanbic has halved since 2012 but better than 2013 when cash generation was negative due to increased losses in government securities.
Cash Generation compared to competitors The higher, the better.
Assets are currently 90% financed by banks, this may seem high but is similar for both local and African banks. This dependence on debt has reduced slightly over the last few years
Level of Debt compared to competitors The lower, the better.
Stanbic Bank can comfortably cover its immediate debts similar to all local banks. The margin between the liquid assets and current liabilities for Stanbic is lower than other local banks but this has been driven by a drastic increase in customer deposits.
Ability to pay debt compared to competitors The higher, the better.
The available cash (working capital) has increased by 70% over the last 5 years from $112m to $191m. This shows that Stanbic has become more efficient and healthier. This enables that Stanbic to invest more money within the business.
Liquidity/Cash Availability compared to competitors The higher, the better.
Revenues have grown slower than other local banks but the growth in profits has been faster than its local peers. In 2013, Stanbic experienced a 12% drop in profits and 33% drop in revenues, similar to other local banks - this drop in earnings was due to slowdown following the 2011 Ugandan election.
Revenue Growth compared to competitors The higher, the better.
Profit Growth compared to competitors The higher, the better.
Stanbic continues to have pay out the highest level of dividends in Uganda and Africa. Currently Stanbic pays out 3% of its share price but this is half of what it paid out the previous year. This is different from other local banks where dividends have gone back.
Despite Stanbic having high levels of dividend, this drop in dividend yield raises concern about how long this will be sustained.
Return on Equity compared to competitors The higher, the better.
Dividend Yield compared to competitors The higher, the better.
Stanbic Uganda has increased the investment in the business since 2011, and is doing it at the highsest levels both locally and in Africa.
Level of Investment per year in US $ The higher, the better.
Investment Ratio compared to competitors The higher, the better.

DFCU Limited is a Uganda-based development finance company. The Company provides commercial banking, term lending, lease and mortgage financing for the development of people and businesses in Uganda. The Company operates through two segments: DFCU Limited, which is the holding company, and DFCU Bank, which is the commercial banking segment.

DFCU Bank provides products and service levels catering for customer needs in the areas of savings and investment products, personal and current accounts, personal credit, corporate credit, trade finance, foreign exchange trading and money market transfers, among others. It also consists of a development finance segment, which provides medium and long-term finance to private sectors in Uganda. The sectors include agro processing, education, health, manufacturing, transport, hospitality industry, tourism and construction. The Company operates a network of approximately 40 branches and over 290 automated teller machines (ATMs) across the country.

Website

www.dfcugroup.com

Address

P.O. Box 2767
Kampala
Uganda

 

The Uganda Securities Exchange has rolled out an online trading window — Easy Portal — that offers investors opportunities for faster transactions at no fee to spur trading activity.

But a scarcity of equity listings and limited investor participation could work against the initiative.

Easy Portal directly helps investors to trade shares without hiring stockbrokers.

Stocks traded on the USE are charged a commission of 2.1 per cent that is shared between the stockbrokers, the bourse, the Capital Markets Authority and the Investor Compensation Fund, among other agencies.

To trade, investors will log in their Central Depository System account numbers, their national identification card numbers and view the prevailing stock prices before choosing trading options.

The trading window also contains an initial public offering (IPO) application, a critical aid for handling investor documents usually submitted during public equity offerings.Investor statements issued by this facility will be saved for a maximum of six years, the bourse said. However, investment costs tied to this trading portal could not be confirmed by press time.

Low IPO growth

IPO growth usually attracts more investors to stockmarkets and in turn, boosts trading activity as new investors seek to exploit fresh opportunities available at the bourse.

The low IPO growth at the USE can be traced back to 2012. While DFCU Ltd and New Vision Ltd were listed in and also recorded oversubscription of about 50 per cent, Stanbic Bank Uganda was listed in 2007 following a successful IPO that was oversubscribed three times, according to industry data.

Nevertheless, the bourse is exploring IPO opportunities among some government-owned financial institutions that possess reasonable growth forecasts.

However, sluggish growth evidenced in IPO subscriptions in recent times could impact investor uptake on the Easy Portal window, observers say.