Despite the challenges experienced in the year, dfcu Bank registered good performance in non-funded income such as fees and commissions, according to the report.

dfcu Bank registers decline in 2018 profits

KAMPALA – Dfcu Bank posted total comprehensive income of UGX 60.8 billion in 2018, which was lower than the previous year that included a one-off item of UGX 119 billion which arose from the business combination.

According to the financial statements released Wednesday for the financial year 2018, the bank’s assets also reduced by 5% due to repayment of borrowed funds.

“The banks total Assets reduced by 5%from UGX3.1 trillion to UGX 2.9 trillion due to repayment of borrowed funds and subordinated debt. This resulted in a 39% reduction in our interest expenses from UGX44 billion to UGX 26 billion,” Kate Kiiza the Chief Finance Officer at Bank told Journalists at the bank’s head offices while releasing the financial report.

On customers base, the report Indicated that the Banks customers base remained stable  at UGX1.9trillion as  this was due to the much effort the bank employed to ensure that more customers joins the bank  alongside the taking over of crane Bank.

However, the taking over of Crane Bank also impacted the Bank financially due to the non-performance loans. Dfcu bank, in the Audited Financial report wrote off about UGX82 billion and promises to continue cleaning up all the Non-performing Loans.

Despite the challenges experienced in the year, dfcu Bank registered good performance in non-funded income such as fees and commissions, according to the report.

Fees and Commission grew by 22% from UGX 40 billion to UGX51 billion this was due to the harness the benefits of the banks, investment in technology and growth  in the customer base.

Commenting on the report, Mathias Katamba the bank’s managing Director, said that although they registered decline in performance, dfcu Bank is committed to offer quality financial services to its clients since it is the second largest bank in the country with quite good customer base.

He said more resources will be invested in ICT and also registering more bank agents saying this will cut the cost of doing business in the Country. He noted that with wider spread of Bank agents this will bring more customers on board.

“Our strategic aspirations which include delivering superior financial performance for our shareholders, continued investment in technology and becoming a market leader. We shall ensure that more agents are registered to enable our clients be served where ever they are across the country,” he said.

Currently, the bank has about 700 agents across the country and their target is to have 5,000 by the year 2021. According to Katamba, 10% of the bank’s customer transactions are being done through bank agents.  This has enabled the bank to save some money by reducing costs in offering financial services to their customers.

 Projection for 2019

In the year 2019 the Bank projects to bring more customers on board due to various business opportunities the Oil and Gas sector will be offering to the Ugandan market. Other opportunities lie in the Small and Medium Enterprises.

“Our SME,s in the country  are developing  we hope if we strategies our self as Bank more  customers will  sourced from  the SMEs due to the wider products the bank is offering to such category of Business communities,” said Ronald Kasasa, the Head of SME Banking.