dfcu Bank reports transformative progress in 2023

dfcu Bank Limited has released its 2023 annual report, showcasing transformative progress despite a challenging economic environment.

According to the report, the bank’s net profit after tax grew by 11% to UGX 34 billion, driven by a 2% increase in total interest income and a 12% increase in non-funded income. The bank’s total capital ratio improved by 3.2% to 29.5%, well above the regulatory minimum.

The bank’s Managing Director, Charles M. Mudiwa, attributed the strong performance to the bank’s resilient business model, effective risk management, and innovative solutions. “We have made significant progress in our transformation journey, and our focus on digital banking, agribusiness, and women empowerment has yielded positive results,” he said.

The bank’s digital banking offerings saw a 33% uptake, with mobile banking being a key driver. The bank’s Agribusiness Development Centre (ADC) reached over 28,000 smallholder farmers, and the bank’s partnerships with Mastercard, Rabo Foundation, and the Government of Uganda drove impactful interventions in the agriculture value chain.

The group’s net interest income decreased by 4% to UGX 257 billion, while non-interest income increased by 13% to UGX 99 billion. Operating expenses rose by 9% to UGX 248 billion, driven by investments in infrastructure, people, and technology.

The group’s loans and advances to customers decreased by 17% to UGX 1.125 trillion, while customer deposits decreased by 4% to UGX 2.318 trillion. Shareholders’ funds grew by 2% to UGX 644 billion.

Despite the challenges, the group’s liquidity ratio improved to 39%, and its capital adequacy ratio remained strong at 30%. The board has proposed a final dividend of UGX 6,808 million, or UShs 9.10 per share, subject to withholding tax.

The bank’s refreshed strategic direction, dubbed “Fired-Up,” aims to drive sustainable growth, innovation, and inclusivity. The strategy prioritizes digital transformation, operational efficiency, and customer centricity.

Mudiwa expressed appreciation to the bank’s customers, shareholders, and stakeholders for their support and confidence. “We remain committed to transforming lives and businesses in Uganda and fostering growth and development in our homeland,” he said.