Charles M. Mudiwa, the Chief Executive Officer at dfcu Bank
dfcu Limited has announced its audited financial results for the year ended 31 December 2023, indicating a growth in customer numbers, transaction volumes, fees and commissions.
The results show that dfcu bank, the Group’s trading entity, recorded a net profit of Shs34.03bn in 2023, up from Shs30.64bn in 2022.
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,” the statement continued.
The results further indicate that dfcu bank’s total assets almost remained unchanged at Shs320 trillion in 2023, from Shs3.28 trillion recorded a year earlier.
Charles M. Mudiwa, the Chief Executive Officer at dfcu Bank, noted that the bank maintained a strong capital position to cushion against the key risks in the operating environment.
“The core capital ratio improved by 3.2% from 25.6% in 2022 to 28.9% in 2023 and the total capital ratio also improved by 3% from 26.5% in 2022 to 29.5% in 2023 which is well above the regulatory limits of 13% for core capital and 15% for total capital,” Mudiwa said.
Highlights
He added that the Company recorded a 1.5% increase in total interest income from 345 billion to 350 billion Shillings and a 12% increase in non-funded income from 86 to 97 billion Shillings due to a significant recovery on the fair value asset, which resulted in a 4% increase in total income for the year from Shs431 to Shs449 billion.
The results also show that interest expenses increased by 24% from Shs74 billion to Shs92 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,” Mudiwa explained.
However, the total number of borrowers continued to grow, increasing by 19% as the Bank 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 Shs83 billion.
Key drivers for the performance
Mudiwa says the Company doubled its active customer base through participation in the Parish Development Model (PDM) program where the government is their key partner.
“This led to a 103% increase in the total number of customers, a 17% increase in transaction volumes and a 33% uptake of our digital banking offerings, especially mobile banking,” Mudiwa revealed.
He added: “We have a network of 54 branches spread across the Country. During the year we increased our agent banking footprint by 15% to 2,015 outlets. We also deployed 78 deposit-taking ATMs to offer added convenience to our customers.”
As the Company celebrates 60 years of existence this year, 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.
With the Agribusiness Development Centre, dfcu has strengthened the overall national agriculture value chain, fostering the bankability of Farmer based organizations (FBOs), Small and Medium Enterprises (SMEs) and Savings and Credit Cooperatives (SACCOs).
Founded by Rabo Foundation and dfcu Bank, the work done by ADC has positively impacted over 28,000 individuals and entities. ADC supports farmer organizations in becoming profitable and sustainable enterprises that are able to provide efficient, profitable and effective services.
The Future is bright
In the future, the company will continue to leverage its rich heritage to deliver its purpose of “Transforming Lives and Businesses in Uganda,” while delivering value to its shareholders and stakeholders.
“We are committed to building on our strong foundation and delivering even greater value through future ready innovations in our products and services, a focus on enhancing customer experience and a dedication to winning market share,” Mudiwa says, adding: “We strive to exceed expectations and remain a trusted partner for all your banking needs. We appreciate the continued support from all our customers and stakeholders over the year and we ask you to journey with us as we strive towards the achievement of our purpose to ‘Transform Lives and Businesses in Uganda’.”
