Dfcu bank headquarters in Kampala dfcu Limited has this Tuesday morning released its 2019 consolidated financial results, revealing a strong position having recorded a 21 percent growth in profitability from Shs 60. 9bn in 2018 up to Shs 73.4bn in 2019.
Despite the performance, the bank said a dividend payout will depend on the assessment of the full impact of the global COVID-19 pandemic on the operations of the business.
“The emergence of the COVID-19 global pandemic presents a lot of uncertainty in global economies and Uganda is no exception. Nevertheless, Dfcu has consistently paid a healthy dividend over the years and will continue to do so in the future,” said Mr. Elly Karuhanga the Board Chairman, dfcu Limited, of which dfcu Bank is a subsidiary company.
The bank fell victim to a spate of fake news which bankers and the central bank said were aimed at damaging its reputation.
The positive results underscore the strength of fast-growing financial institution now employing over 12,000 staff.
Commenting on the effect of the Coronavirus pandemic, dfcu Bank’s Chief Executive Officer, Mathias Katamba said: “We are cognizant of the ongoing global COVID-19 pandemic that may adversely impact the operating environment by majorly disrupting global supply chains, transport and travel. But with guidance and support from our Board, strong management team and dedicated staff, we remain focused on driving efficiency to harness institutional capabilities and growth.”
According to Katamba, the Banks profitability in 2019 was driven by increased efficiency and a reduction in operating costs.
“We focused on cutting down our operating costs by 4% from Shs 202 bn in December 2018 to Shs 193 bn in December 2019, in addition to reducing our funding costs by 7% in terms of interest expenditure from Shs 105bn to Shs 97.6 bn, giving rise to a 4% growth in net operating income from Shs 306bn in December 2018 to 319 bn in December 2019. This effectively set the Bank on a solid footing to further harness institutional capabilities going forward,” he said.
2019 Performance Highlights
• Overall interest expense reduced by 7% from Shs 104.7 billion to Shs 97.8 billion showing improved efficiency in the liability mix as a result of management’s effort to shed off expensive funding and concentrate more on cheaper liabilities. Consequently, the net interest income increased by 3% from Shs 221.1 billion to Shs 227.4 billion.
• Non-funded income in terms of fees and commissions grew by 28% from […]