Dfcu Bank has unveiled its half year results in which it announced a Shs 35.7 Billion profit in the 6 months leading up to June 30 th 2019. Over this period, the bank had a net income of Shs 148.5Billion, which is 2.9Billion more than what was announced in the half year results of 2018.
However, owing to higher operating expenses, the bank’s net profit dipped to Shs 35.7Billion, compared to 41.6Billion in June 2018.
This, the bank says was also due to lower recoveries in the first half of 2019 compared to 2018.
Dfcu’s loans to customers also dipped to Shs 1.3Trillion, compared to Shs 1.42 Trillion in June 2018. This was attributed among others to instabilities in global marks.
“The Bank has maintained a cautious view of lending particularly in the wholesale area in light of turbulent circumstances in the international financial markets.”
They cited such instabilities as the ongoing Brexit process in Europe, US trade wars with China, as well as the slow growth of the Chinese and Europe economies.
Nonetheless, Dfcu says it has increased its investments by 4% while maintaining a healthy liquid position, that it hopes will enable the bank increase its loan book if good opportunities arise particularly in SME and retail areas.
Also the total customer deposits registered an increase with an improved deposit mix as we maintained focus on growing stable liabilities.
The Bank also tremendously reduced its reliance on expensive funding, registering a 13% decrease in borrowed funds during the first half of 2019.
Overall, the bank says the June results show improvement and acceleration compared to 2nd half 2018.
“We expect a further improvement in “operating profit” and, barring unforeseen circumstances, a further increase in net profit for the 2nd half of the year as compared to the 1st half.”