Overview:
Customer deposits increased by 6% to Shs2.41 trillion in 2022, up from Shs2.28 trillion in 2021. This was driven by current and savings account deposits.
dfcu Bank Uganda has released its audited financial results for the year ended 31 December 2022, showing progress on the company’s key performance indicators in terms of credit risk management and overall earnings.
According to the results, profit after tax increased by 217%, to Shs30.64bn in 2022, up from Shs13.21bn recorded in 2021.
Customer deposits increased by 6% to Shs2.41 trillion in 2022, up from Shs2.28 trillion in 2021. This was driven by current and savings account deposits. Total assets increased by 3.35% to Shs3.28 trillion up from Shs3.17 trillion.
“We extended loans to more individuals and businesses across different customer segments, resulting into a growth of number of borrowers by 15%. We invested in Government Securities growing the portfolio by 63%, which is part of the focus to diversify the asset base,” the bank said in its financial statement.
Improved customer deposits mix resulted in a 10% reduction in interest expense.
Substantial investment in Government Securities grew the portfolio by 63%, as part of the focus to diversify the asset base.
Non-performing loans also reduced to Shs107.6bn in 2022 from Shs274bn recorded in 2021.
As a result, dfcu bank has proposed to pay shareholders Shs12.2b in dividends.
A statement from the Board of Directors of dfcu Limited underpinned the Company’s continued strategic and ongoing investments in technology to further strengthen its ability to serve changing customer needs.
“The Company deployed enhancements to the core banking platform, online, mobile and agency banking channels to improve customer experience.”
“The new digital capabilities have further improved operating efficiency, enabled new ways of working and ultimately reduced the cost to serve customers”, the statement said.
dfcu continued to make a difference in the community with several initiatives in the areas of agriculture, women in business and financial inclusion, and showed greater importance to Environmental, Social, Governance programs (ESG).
Through the Agribusiness Development Centre, the Company expanded its support to agribusinesses with capacity building, provision of credit and value chain financing.
Looking ahead, the Company will focus on executing its strategy anchored on ‘Customer Obsession’ whilst transforming lives and businesses through innovative solutions and empowered people.