Dfcu head offices in Kampala
The Board of Directors of dfcu Limited has announced to its Shareholders and investors that the Company’s audited financial statements for the year ended 31st December 2020 will indicate a decline in the Company’s net profit.
In a statement issued on March 22, 2021, the Company’s Secretary said decline is as a result of the impact of COVID-19 “on our customers’ business operations resulting in an increase in loan provisions.”
The profit also declined due to “a higher than anticipated write-off of some of the loans and advances that formed part of the financial asset acquired by the Company in the 2017 transaction.”
The Company Secretary said dfcu remains robust and has strong key performance ratios, i.e. capital adequacy ratios and liquidity coverage ratios remain sound and well above regulatory requirements.
“The detailed financial statements of the Company will be published shortly upon obtainment of all the necessary approvals,” the statement reads in part.
It adds: “Shareholders and potential investors are advised to exercise caution while trading in the Company’s shares.”
Headed by Mathias Katamba as Managing Director, dfcu Limited profit increased from Shs60. 9bn in 2018 up to Shs73.4bn in 2019.
This was mainly driven by significant increase in efficiency and cost management.
