Dfcu Limited on Thursday resolved to pay the Shs 24.6b profit the group made in 2018 to it’s shareholders through dividends.
The resolution was made during the annual Dfcu limited members meeting held at Hotel Africana
Dfcu limited posted total profit after tax of Shs 60.9billion in 2018.
This is however, lower than the Shs 119billion made in 2017.
The group also saw a 5% reduction in total assets from Shs 3.1 trillion to 2.9 trillion.
The reduction in profits and total assets was attributed to repayment of borrowed funds and subordinated debt which resulted in a 39% reduction in interest expense from Shs 44billion to 27billion in 2018.
“Despite the challenging operating environment characterized by negative media coverage and court cases, the group has been able to make a profit of Shs 60.9b and now I propose that we share some of that money among members in form of dividends,” said Elly Karuhanga, the chairman Dfcu Limited.
Dfcu limited currently has 748m shares. This year, shareholders will be paid Shs33.01 dividends per share, compared to Shs 68.2 paid the previous year
Karuhanga said that the group is expected to perform even better in the coming years following the stabilized environment.
He pointed out that the group has been cleared of all wrong doing in cases that were filed against it in the transaction that saw the Dfcu group acquiring Crane Bank in 2017
“Having achieved stability following the business combination in 2017, the group is now well positioned to deliver value to shareholders in the coming years,” he added.
The Executive Director Dfcu Bank, William Sekabembe said the bank will continue to invest in technology to make service delivery better for its customers but also reduce on the operational costs so that the shareholders can get more in investment returns
During 2018 and 2019, Dfcu lost some top officials who resigned including Deepak Malik, the Arise B.V representative on the board, Dfcu Banks long serving managing Director Juma Kisaame.
These were replaced by Friedrich Christian Pelse a senior investment manager at Arise and Mathias Katamba respectively
The group also reelected all the members of the Board.