Kampala, Uganda – dfcu Bank Limited, one of Uganda’s leading commercial banks, has released its 2023 annual report, showcasing transformative progress despite a challenging economic environment.
According to the report, the bank’s net profit after tax grew by 11% to UGX 34 billion, driven by a 2% increase in total interest income and a 12% increase in non-funded income. The bank’s total capital ratio improved by 3.2% to 29.5%, well above the regulatory minimum.
“We have made significant progress in our transformation journey, and our focus on digital banking, agribusiness, and women empowerment has yielded positive results,” said Charles M. Mudiwa, the Managing Director of dfcu Bank Limited.
The bank’s digital banking offerings saw a 33% uptake, with mobile banking being a key driver. The bank’s Agribusiness Development Centre (ADC) reached over 28,000 smallholder farmers, and partnerships with Mastercard, Rabo Foundation, and the Government of Uganda drove impactful interventions in the agriculture value chain.
The bank’s refreshed strategic direction, dubbed “Fired-Up,” aims to drive sustainable growth, innovation, and inclusivity. The strategy prioritizes digital transformation, operational efficiency, and customer centricity.
“We remain committed to transforming lives and businesses in Uganda and fostering growth and development in our homeland,” added Mudiwa.
The group’s net interest income decreased by 4% to UGX 257 billion, primarily due to a cautious approach to credit extension, which resulted in a reduction in interest income. However, non-interest income increased by 13% to UGX 99 billion, driven by increased transactions and a greater uptake of digital channels.
“The group’s net interest income decreased by 4% to UGX 257 billion, primarily due to a cautious approach to credit extension, which resulted in a reduction in interest income,” said Kate Kiiza, the Executive Director and Chief Finance Officer.
“Non-interest income increased by 13% to UGX 99 billion, driven by increased transactions and a greater uptake of digital channels,” she explained.
The board has proposed a final dividend of UGX 6,808 million, or UShs 9.10 per share, subject to withholding tax. Shareholders’ funds grew by 2% to UGX 644 billion, driven by increased retained earnings.
These dividends have since been approved by the Annual General Meeting today at Hotel Africana in Kampala.
Prof. Winifred T. Kiryabwire, Chairperson of the Board of Directors of dfcu Bank Limited, announced that the bank has made remarkable progress in strengthening its resilience, bolstering its share capital to UGX 150Bn by December 2023, ahead of the June 2024 deadline.
The bank’s financial performance also saw a significant boost, with an 11% increase in net profit after tax and a 16% reduction in total risk-weighted assets. This was achieved through a realignment of the balance sheet towards risk-free investment securities, which saw a 4% increase during the year,” she said.
The bank also bid farewell to Director Jackie Aneno Obol-Ochola and Mr. William Sekabembe, immediate past Executive Director, and welcomed Ms. Kate Kabaingi Kiiza as the new Executive Director and Chief Financial Officer.
