Dfcu Bank has announced a 21% growth in profits after tax for the past one year.
This was entailed in the bank’s annual performance report for 2019 which was presented at the Company’s 55th Annual General Meeting in Kampala.
The report shows that Dfcu’s net profit after tax increased to Shs 73.4 Billion from Shs 60.9 billion.
The net interest income also increased by 3% from UGX 221.1billion to UGX 227.4billion.
This growth was attributed to a significant increase in efficiency and cost management.
According to the report, the bank’s overall expense reduced by 7% from UGX 104.7 billion to UGX 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.
Meanwhile, non-funded income in terms of fees and commissions grew by 28% from UGX 51.2 billion to 65.4 billion as we continue to harness the benefits of the investments in technology and growth in the customer base.
Operating expenses reduced by 4% from UGX 202.2billion to UGX 193.1billion showing improved operating efficiency. As a result, the cost to income ratio reduced from 66.2% in 2018 to 60.6% in 2019.
Loans and advances grew by 10% from UGX 1,398 billion to UGX 1,539 billion as a result of increased disbursements and focus on continuous monitoring of the asset quality for the entire portfolio. The increase in loans and advances was organic.
The asset base increased by 1% from UGX 2,916 billion to UGX 2,958 billion, upheld by strong growth in loans and advances.
The Group’s deposit base grew by 3% from UGX 1,979 billion to UGX 2,039 billion.
The growth was as a result of both newly acquired and existing clients across the business segments. Management implemented a clear strategy of growing the liability base, as well as retention of the existing customer relations.
Shareholders’ funds grew by 9% from UGX 521.5 billion to UGX 569.7 billion as result of increase in retained earnings.