• EDITORIAL POLICY
  • ABOUT US
PML Daily
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
suubula suubula suubula
Home BUSINESS

dfcu profits soar to Shs127b after Crane Bank takeover

RAYMOND MAYANJA | PML Daily Reporter by RAYMOND MAYANJA | PML Daily Reporter
March 30, 2018
in BUSINESS, Finance
0 0
75
VIEWS
FacebookWhatsAppTwitter
dfcu bank Ntinda Branch

KAMPALA – The dfcu bank has recorded an impressive Shs127.6bn net profit in the year ended 31 December 2017, up from Shs46.2bn registered in 2016, results released on Thursday indicate.

However, the spotlight is focusing on the bank and it’s hoist of European owners following the implications of this huge Shs81.4bn profit leap, up from last year’s Shs41.2 billion that comes in the aftermath of the takeover of Crane Bank that is currently shrouded in controversy.

According to dfcu bank’s financial statements released on Thursday, the bank registered impressive results on all key performance parameters save for the high Non-Performing Loans (NPLs) and bad loans written off. NPLs increased by Shs38.3bn to Shs96.6bn in 2017, up from Shs58.3bn in 2016, while bad loans written off rose to Shs27.2bn, up from Shs5bn in 2016. The high NPLs were taken over from Crane Bank.

The bank’s total expenditure also increased to Shs350.8bn in 2017, up from Shs197.6bn in 2016.

The bank registered a tough second half of the year after it posted an impressive Shs114bn net profit in its half year results for 2017, up from Shs23.3bn in June 2016, meaning that in the six months to December 2017 dfcu only made a net profit of Shs13.6bn.

Riding on Crane Bank acquisition that brought more high net customers, dfcu bank’s loans advanced to customers increased to Shs1.3 trillion, up from Shs834.8bn.

Crane Bank customer care staff at a past event in Kampala. Crane Bank was known for their innovative customer products: NET PHOTO

Customer deposits also increased to Shs1.98 trillion in 2017, up from Shs1.13 trillion a year earlier.

The bank’s total assets increased to a record Shs3 trillion, up from Shs1.7 trillion in 2016 while t’s core capital increased to Shs 362bn in 2017, up from Shs 188bn in 2016.

The dfcu bank acquired Crane Bank, the then 4th largest bank on February 27, 2017 at a fee later to be discovered as a paltry Shs 200 billion. However Former Crane Bank shareholders led by majority shareholder Sudhir Ruparelia and family have vowed to drag Bank of Uganda (BoU) to court, claiming their bank was sold to dfcu without considering their interests in accordance with the Financial Institutions Act. It has been discovered that the bank was sold for a paltry Shs200 billion as controversy rages on.

The bank’s mostly European shareholders will soon be smiling to the bank after proposed dividends increased to Shs51bn, up from Shs18.5bn in 2016.

dfcu is partly owned by the Commonwealth Development Corporation (CDC), a British government-owned company, together with Rabo Development from the Netherlands and NorFinance from Norway, who are shareholders in Arise B.V together with Norfund, a Norwegian government-owned Private Equity firm and FMO, the Dutch Development Bank.

Bank of Uganda Governor Emmanuel Tumusiime Mutebile cuts tape at the opening of a Crane Bank branch. Next to him is a Crane Bank share holder Mr Tom Mugenda and Ms Ruparelia: NET PHOTO

Shareholding percentages:

Arise BV 58.71%

CDC Group of the United Kingdom 9.97%

National Social Security Fund (Uganda) 7.69%

Kimberlite Frontier Africa Naster Fund 6.15%

2 undisclosed Institutional Investors 3.22%

SSB-Conrad N. Hilton Foundation 0.98%

Vanderbilt University 0.87%

Blakeney Management 0.63%

Bank of Uganda Staff Retirement Benefits Scheme 0.59%

Retail investors 11.19%

 

Comments

Tags: Crane BankdfcuSudhir Ruparelia

Related Posts

The Visa Platinum Card has been designed to offer higher spending limits and greater purchasing power for the priority customers (PHOTO/Courtesy).
BUSINESS

dfcu customers to enjoy insurance & lifestyle benefits as the Bank unveils interest-free Visa Contactless Credit Card

December 16, 2020
161
Governor Mutebile and his deputy Dr. Atingi-Ego (PHOTO/File).
TOP STORY

BoU move to liquidate Crane bank assets sparks fresh legal battles

November 14, 2020
302
L-R - ABC (U) Ltd Chief Executive Officer, Richard Yego, Richard Byarugaba, NSSF Managing Director and Matthias Katamba, dfcu Bank Managing Director at the launch (PHOTO/Courtesy).
BUSINESS

NSSF, dfcu Bank unveil agency model for social security transactions

October 21, 2020
179
2020 Harley-Davidson FXDR 114, one Triumph Tiger 1200 XCA, two Triumph Thruxton RS and a Triumph Bonneville T100 Black motor bike (PHOTO/Courtesy).
Society

Ruparelia boys parade bikes worth over UGX. 305M

September 19, 2020
2k
Mr. Daniel Hasabubwenje, a financial expert (PHOTO/Courtesy).
OpEd

DANIEL HASABUBWENJE: BoU should say something on DTB, Ham Enterprises fraud row

September 18, 2020
241
dfcu Bank has fired city law firm Sebalu & Lule Co. Advocates in their commercial dispute against Sudhir's Meera Investment Ltd that seeks to recover billion of money from dfcu bank (PHOTO/File)
NEWS

COVID-19 CRISIS: dfcu Bank confirms 5 Coronavirus infections at Lugogo branch

August 27, 2020
365

Advertisement






 

 

About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us

KIU

  • EDITORIAL POLICY
  • ABOUT US

© 2020 PMLDAILY.COM

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2020 PMLDAILY.COM

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In