Charles Mudiwa, dfcu Bank CEO and Managing Director
dfcu Limited has reported a stellar financial performance for the year ended 31 December 2024, with Profit After Tax surging by 157% to UGX 72 billion, up from UGX 28 billion in 2023. This significant growth resulted in earnings per share rising to UGX 96.35, up from UGX 38.39 the previous year.
The remarkable results were primarily driven by dfcu Bank, the Group’s main trading entity. The bank’s total assets grew by 9.5% to UGX 3.4 trillion, compared to UGX 3.1 trillion in 2023. Additionally, Non-Performing Assets (NPA) were slashed to 4.4%, down from 9.5% in the previous year, as Non-Performing Loans declined to UGX 51.8 billion from UGX 108.17 billion. Off the back of this strong performance, the company has proposed a dividend per share of UGX 20.9, up from UGX 9.10 in 2023.
In an exclusive interview with Business Focus, dfcu Bank CEO and Managing Director Charles Mudiwa credited the turnaround to focused execution of strategy, improvements in credit management, and investment in digital transformation.
Q: What were the main drivers of dfcu’s 2024 growth?
Mudiwa: We sharpened our strategic focus and targeted key operational areas. A major success was our improved credit management, reflected in the reduction of our NPA ratio from 9.5% in 2023 to 4.4% in 2024—and even more striking when you consider that it stood at 16% just three years ago. In 2024, we shifted from writing off bad loans to recovering them, bringing back UGX 12 billion. We also enhanced our leadership culture and technological capabilities, including rolling out a new ATM switch and upgrading our digital banking platforms. These improvements translated into higher customer activity and renewed confidence in the bank.
Q: The drop in Non-Performing Loans is notable. What led to this improvement?
Mudiwa: We took deliberate steps to recover overdue loans, including establishing a new collections team and a rehabilitation unit that supports customers before they default. We also enhanced our credit assessment processes, leading to improved loan book quality. While our customer lending grew modestly by 1% to UGX 1.13 trillion, we are now in a better position to drive more sustainable growth.
Q: Would you say dfcu is now fully recovered from its previous challenges?
Mudiwa: Yes, we believe we’ve turned the corner. The performance improvements between 2023 and 2024 show we’re on a clear upward trajectory. We now have a focused strategy, a capable leadership team, and a committed workforce, all aligned to deliver results. We’re confident about the direction we’re heading.
Q: Looking ahead to 2025 and beyond, especially in an election year, what’s your outlook?
Mudiwa: We’re entering this phase from a position of strength. The economy is stable, and sectors such as oil and gas, agriculture—especially through our Rabobank partnership—ICT, education, health, manufacturing, and infrastructure offer immense potential. Our growth strategy is anchored on these pillars. We are also focused on enhancing customer engagement, boosting productivity through agile and evidence-based leadership, and leveraging technology to deliver superior services.
Q: What’s your message to customers and stakeholders?
Mudiwa: Our mission is to transform lives and businesses in Uganda. As we mark over 60 years of service, we invite our customers to continue this journey with us. We’re deeply committed to inclusivity, as shown by our 54 branches—some being the only bank in districts like Abim and Pallisa. Our ambition is to rank among Uganda’s top five most profitable banks, and we’re confident that with continued support, we’ll achieve this while making a meaningful impact across the country.
