dfcu Limited shareholders have approved a dividend payout of Shs33.01 per share translating into Shs24.69bn for the year 2018.
This was reached at unanimously with only one objection during the company’s 54th Annual General Meeting (AGM) held at Hotel Africana, Kampala on Thursday 13th June 2019.
dfcu Chairman, Board of Directors, Elly Karuhanga said the company “managed to post impressive results” despite the “challenging operating environment characteristic of acquisitions (dfcu acquired Crane Bank in 2017).
He noted that the Group posted a total profit after tax of Shs60.9bn which was lower than the previous year “that included one-off item of Shs199bn which arose from business combination.”
He further explained to shareholders that total assets reduced by 5% to Shs2.9 trillion in 2018 from Shs3.1 trillion “due to repayment of borrowed funds and subordinated debt.”
“This resulted in a 39% reduction in interest expense from Shs44bn in 2017 to Shs27bn in 2018,” Karuhanga said, adding that having achieved stability following business combination in 2017, “the Group is now well positioned to deliver value to shareholders.”
He added that overall interest expense reduced by 20% from Shs131.6bn to Shs104.8bn showing improved efficiency in the liability mix.
Speaking at the same event, Mathias Katamba, the dfcu Bank Managing Director said that the bank will leverage on technology to bolster growth.
“We now have over 900 agents spread across the country,” Katamba said, adding that the bank is also big on internet/digital banking.
He noted that the bank is improving security of all digital products to ensure financial inclusion is achieved in a safe and efficient manner.
“We shall continue innovating. In this age, you either innovate or lose your position,” he said, adding that technology will help the bank cut costs and serve customers in a cheapest most efficient manner.
Highlighting measures that will spur the growth of the bank, Katamba said dfcu will now become a universal bank against being a niche based institution.
He noted that the diversification of the portfolio will help mitigate shocks from poorly performing sectors of the economy. It is understand that the bank wants to go into mortgage financing considering the housing deficit Uganda is experiencing.
