Elly Karuhanga (pictured) has been re-elected as the Chairperson of the dfcu Ltd’s board of directors during the Company’s 55th Annual General Meeting.
Karuhanga is an advocate by Training and Founding Partner of Kampala Associated Advocates.
He is the Founder President and Chairman of the Governing Council of the Centre for Arbitration and Alternative Dispute Resolution. He is currently the Chairman of British American Tobacco (BAT),the Uganda Chamber of Mines and Petroleum Practice and the Private Sector Foundation.
In a related development, Dr. Aminah Zawedde has been appointed as a Non-Executive Director in the Company.
Dr. Zawedde has over fifteen years’ experience in the IT services sector both as an academician and as a technical advisor.
She holds a PhD in Computer Science from Eindhoven University of Technology in the Netherlands, a Masters in Computer Science from Makerere University, a Postgraduate Diploma in Educational Technologies from the University of Cape Town in South Africa, a Bachelor of Science in Statistics and Economics from Makerere University and is a Certified Information Systems Auditor.
She brings on board vast experiences in IT initiatives and strategic leadership from both the public and private sector.
Kironde Lule was also re-elected as Non-Executive Director.
Lule has over 30 years’ experience in financial management and auditing. He was a FinanceDirector in the Aga Khan Foundation (USA), ICF (Tanzania); Director Financial Reporting in theGlobal Fund for Vaccines (USA). He served as the Commissioner Internal Audit -Uganda Revenue Authority and an Audit Partner in Deloitte &Touche(Swaziland & Cote d’Ivoire). He is a fellow of the Institute of Chartered Accountants in England and Wales and a member of the American Institute of Certified Public Accountants.
DIVIDENDS
Due to the uncertainty world-wide and domestic economies caused by the emergence of the global COVID-19 (Corona Virus) pandemic, Bank of Uganda, the regulator of our banking subsidiary in April 2020 directed all supervised financial institutions to defer payment of all discretionary payments including dividends.
The dividends declared by the Bank form part of the dividend pool paid to dfcu Limited shareholders. Suffice to say the company has consistently paid a healthy dividend over the years and will continue to do so in future.
2019 Performance Highlights
dfcu’s overall interest 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.
Consequently, the net interest income increased by 3% from UGX 221.1billion to UGX 227.4billion.
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.
Net profit after tax increased by 21% to UGX 73.4 Billion from UGX 60.9 billion.
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.
TOP TEN SHAREHOLDERS
| Shareholder Name | Shareholding (%) |
| Arise B.V. | 58.70 |
| Investment Fund for Developing Countries | 9.97 |
| National Social Security Funds | 7.46 |
| Kimberlite Frontier Africa Naster Fund,L.P.-RCKM | 7.35 |
| SSB Russell Investment Company Plc Fund NAS5 | 1.93 |
| National Social Security Fund-Pinebridge | 1.40 |
| Vanderbilt University | 0.98 |
| SSB-Conrad N. Hilton Foundation -00FG | 0.97 |
| Jubilee Investment Company Limited | 0.76 |
| Others | 10.48 |
