Overview:
According to the dfcu Bank financial report for 2023, the bank’s assets declined from Shs3.2 trillion in 2022 to Shs3.1 trillion in 2023 while its liabilities reduced from Shs2.6 trillion to Sh 2.5 trillion, according to the financial results.
dfcu Bank has reported a slight decline in net profit from Shs29.4b in 2022 to Shs28.7b in 2023.
According to the dfcu Bank financial report for 2023, the bank’s assets declined from Shs3.2 trillion in 2022 to Shs3.1 trillion in 2023 while its liabilities reduced from Shs2.6 trillion to Sh 2.5 trillion, according to the financial results.
dfcu recorded a 1.5% increase in total interest income from Shs 345 billion in 2022 to Shs350 billion in 2023 and a 12% increase in non-funded income from Shs86bn to 97 billion during the same period under review.
Meanwhile, the lender’s interest expenses increased by 24% from Shs74bn to 92 billion driven by a rising cost of deposits with the industry average time deposits rate going up by 1.2% from 10.7% in 2022 to 11.9% in 2023.
The Bank continued to exercise a cautious approach to credit extension which resulted in a 17% reduction in the loan book. The total number of borrowers continued to grow, increasing by 19% as the lender expanded its credit outreach to more households across the country.
The concerted effort put in place to manage credit risk led to the impairment of loans and advances to customers reducing by 6% from Shs88bn to 83 billion. On the positive, growth in customer numbers, transaction volumes, fees, and commissions supported the company’s performance.
A statement from the Board of Directors of dfcu Limited noted that the Group’s trading entity dfcu Bank, “ implemented a refreshed strategic plan aimed at refocusing the business, anchored on five pillars covering economic sector specialization, customer relationships, technology, performance culture, and sustainability.”
“We have started harnessing the benefits of the plan as we witnessed improved customer service across the group,” dfcu said in a statement. dfcu will this year celebrate 60 years of existence as it continues to contribute to communities across the country, through its wide distribution network and programs such as dfcu Women in Business, Rising Woman and the SME Business Accelerator for Small and Medium Enterprises.
dfcu has recommended a dividend payout of Shs 6.8bn, subject to shareholders approval.