Businessman and advocate Elly Karuhanga has been re-elected as the chairperson of the Board of Directors Dfcu limited at the company’s the Company’s 55th Annual General Meeting that happened on Tuesday.
Also re-elected as Director is Mr. Kironde Lule while Dr. Aminah Zawedde was appointed as a Non-Executive Director in the Company.
At the same meeting the company presented the dfcu annual performance report for 2019 indicating an increase in Net profit after tax increased by 21% to UGX 73.4 Billion from UGX 60.9 billion. The net interest income also increased by 3% from UGX 221.1billion to UGX 227.4billion.
Dfcu’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.
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.
This was mainly driven by significant increase in efficiency and cost management. 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.