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Press Release
KAMPALA, UGANDA – 31 March 2023: dfcu Limited has today announced its audited financial results for the year ended 31 December 2022 showing progress on the Company’s key performance indicators in terms of credit risk management and overall earnings.
Highlights
- Profit after tax grew by 217% year on year.
- Loan impairments reduced by 41%.
- Total assets grew by 3% from Ugx 3.13 trillion to Ugx 3.24 trillion.
- 15% growth in the number of borrowing customers.
- Customer deposits grew by 6% driven by current and savings account deposits.
- Improved customer deposits mix resulted in a 10% reduction in interest expense.
- Substantial investment in Government Securities growing the portfolio by 63%, as part of the focus to diversify the asset base.
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A statement from the Board of Directors of dfcu Limited underpinned the Company’s continued strategic and ongoing investments in technology to further strengthen its ability to serve changing customer needs. “The Company deployed enhancements to the core banking platform, online, mobile and agency banking channels to improve customer experience. The new digital capabilities have further improved operating efficiency, enabled new ways of working and ultimately reduced the cost to serve customers”, the statement said.
dfcu continued to make a difference in the community with several initiatives in the areas of agriculture, women in business and financial inclusion, and showed greater importance to Environmental, Social, Governance programs (ESG). Through the Agribusiness Development Centre, the Company expanded its support to agribusinesses with capacity building, provision of credit and value chain financing.
Looking ahead, the Company will focus on executing its strategy anchored on ‘Customer Obsession’ whilst transforming lives and businesses through innovative solutions and empowered people.
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About dfcu
dfcu was established in 1964 as a development finance institution. Over the years dfcu has been associated with many success stories in Uganda’s economy in various sectors including agribusiness, communication, education, health, manufacturing, tourism, real estate, mining, construction, transport, trade and commerce, among others.
Key Milestones
1999: Bought Uganda Leasing Company, renamed it dfcu Leasing.
2000: Bought Global Trust Bank, renamed it dfcu Bank, and started commercial banking.
2004: dfcu Limited was listed on the Uganda Securities Exchange.
2008: Merged its two businesses (Development Finance and dfcu Bank) to create a “one-stop shop “under dfcu Bank.
2013: Realignment of shareholders bringing on board a strategic partner – Rabobank, with significant experience in
agribusiness
2014: Consolidated business operations into our Head Office – dfcu Towers.
2014: dfcu Bank acquired some assets and took over some liabilities of Global Trust Bank (In Liquidation)
2016: Aligned shareholding with Rabobank, Norfund and FMO combining to form Arise which is committed to
strengthening and developing effective, inclusive financial systems in Africa with a long-term perspective.
2017: Acquisition of certain assets and assumptions of some liabilities of Crane Bank Limited (In Receivership).
For more information visit www.dfculimited.com
| Statement of Comprehensive Income | Group | Bank | |||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Ushs M | Ushs M | Ushs M | Ushs M | ||||
| Interest income calculated using the effective interest method | 339,058 | 347,311 | 340,999 | 349,578 | |||
| Other interest and similar income | 4,306 | 7,488 | 4,306 | 7,488 | |||
| Interest expense calculated using the effective interest method | (74,577) | (81,509) | (74,274) | (81,202) | |||
| Net interest income | 268,787 | 273,290 | 271,031 | 275,864 | |||
| Fees and commission income | 62,384 | 62,500 | 62,365 | 62,461 | |||
| Net trading and other income | 24,980 | 30,835 | 23,295 | 29,056 | |||
| Net income from other financial instruments at FVTPL | 762 | 2,002 | 762 | 2,002 | |||
| Total operating income | 356,913 | 368,627 | 357,453 | 369,383 | |||
| Operating expenses | (228,441) | (183,523) | (229,449) | (179,690) | |||
| Fair value losses on other financial assets at fair value through profit or loss | (4,930) | (30,708) | (4,930) | (30,708) | |||
| Credit loss expense on financial assets | (88,190) | (148,511) | (88,190) | (148,511) | |||
| Profit before tax | 35,352 | 5,885 | 34,884 | 10,474 | |||
| Income tax expense | (5,876) | 3,427 | (4,241) | 2,741 | |||
| Profit after tax for the year | 29,476 | 9,312 | 30,643 | 13,215 | |||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: | |||||||
| Net loss on FVOCI financial assets net of tax | 8,924 | 4,776 | 8,924 | 4,776 | |||
| Changes in ECL on FVOCI financial instruments | 107 | 26 | 107 | 26 | |||
| Total other comprehensive income | 9,031 | 4,802 | 9,031 | 4,802 | |||
| Total comprehensive income for the year | 38,507 | 14,114 | 39,674 | 18,017 | |||
| Statement of Financial Position | Group | Bank | |||||
| 2022 | 2021 | 2022 | 2021 | ||||
| Ushs M | Ushs M | Ushs M | Ushs M | ||||
| Assets | |||||||
| Cash and balances with Bank of Uganda | 482,298 | 516,802 | 482,298 | 516,802 | |||
| Deposits and balances due from other banks | 216,771 | 229,524 | 216,771 | 229,524 | |||
| Government and other securities | |||||||
| Trading assets | 46,757 | 6,700 | 46,757 | 6,700 | |||
| Investment securities at fair value through other comprehensive income | 655,189 | 339,849 | 655,189 | 339,849 | |||
| Investment securities at amortised cost | 247,190 | 212,441 | 247,190 | 212,441 | |||
| Loans and advances to customers | 1,361,445 | 1,508,410 | 1,361,445 | 1,508,410 | |||
| Amounts due from group companies | – | – | 16,142 | 14,633 | |||
| Equity investments | 6,980 | 7,701 | 6,980 | 7,701 | |||
| Other assets | 41,288 | 118,147 | 40,621 | 120,131 | |||
| Derivative financial instruments | 567 | 647 | 567 | 647 | |||
| Current income tax recoverable | – | 214 | – | – | |||
| Deferred income tax asset | 33,411 | 26,336 | 32,405 | 24,181 | |||
| Property, equipment and right-of-use assets | 77,110 | 91,035 | 122,546 | 136,881 | |||
| Investment property | 19,784 | 18,795 | – | – | |||
| Intangible assets | 25,178 | 31,042 | 24,715 | 30,579 | |||
| Assets held for disposal | 29,089 | 29,089 | 29,089 | 29,089 | |||
| Total assets | 3,243,057 | 3,136,732 | 3,282,715 | 3,177,568 | |||
| Liabilities | |||||||
| Customer deposits | 2,410,593 | 2,282,205 | 2,410,593 | 2,282,205 | |||
| Derivative financial instruments | 240 | 308 | 240 | 308 | |||
| Deposits due to other banks | 8,512 | – | 8,512 | – | |||
| Other liabilities | 62,409 | 66,196 | 122,714 | 128,142 | |||
| Borrowed funds | 123,689 | 190,614 | 118,930 | 185,375 | |||
| Special funds | 1,193 | 1,193 | 1,193 | 1,193 | |||
| Current income tax payable | 1,550 | – | 2,205 | 437 | |||
| Amounts due to group companies | – | – | 1,480 | 2,882 | |||
| Provisions | 2,338 | 2,190 | 2,338 | 2,190 | |||
| Total liabilities | 2,610,524 | 2,542,706 | 2,668,205 | 2,602,732 | |||
| Equity | |||||||
| Share capital | 14,963 | 14,963 | 120,000 | 30,000 | |||
| Share premium | 185,683 | 185,683 | 85,197 | 175,197 | |||
| FVOCI reserve | 12,291 | 3,260 | 12,291 | 3,260 | |||
| Retained earnings | 413,467 | 390,120 | 384,765 | 366,379 | |||
| Proposed dividend | 6,129 | – | 12,257 | – | |||
| Total equity | 632,533 | 594,026 | 614,510 | 574,836 | |||
| Total equity and liabilities | 3,243,057 | 3,136,732 | 3,282,715 | 3,177,568 | |||