• EDITORIAL POLICY
  • ABOUT US
PML Daily
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
  • 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
Home BUSINESS

dfcu Limited announces 2021 financial results

JAVIRA SSEBWAMI | PML Daily Staff WriterbyJAVIRA SSEBWAMI | PML Daily Staff Writer
March 31, 2022
12 1
9
SHARES
187
VIEWS
FacebookWhatsAppTwitter
Mathias Katamba, CEO dfcu Bank sharing financiall hightlights (PHOTO/Courtesy)

KAMPALA – dfcu Limited has today announced its audited financial results for the year ended 31 December 2021 showing a strong leap forward on the core business metrics.

Highlights

Interest expense reduced by 26% from UGX 110bn in 2020 to UGX 82bn in 2021

Net interest income increased by 17% from UGX 233bn in 2020 to UGX 273bn in 2021

Non-interest income increased by 35% from UGX 70bn in 2020 to UGX 93bn in 2021

Operating income increased by 21% from UGX 304bn in 2020 to UGX 369bn in 2021

Cost to income ratio reduced to 50% in 2021 from 63% in 2020

Borrowed funds reduced by 12% from UGX 217bn in 2020 to UGX 191bn in 2021

Explaining the results, a statement from the Board of Directors of dfcu Limited underscored that while credit impairments had a substantial impact on earnings, the Company demonstrated resilience in 2021 showing continued improvement in most of the top line figures driven by strong income growth and cost control. Operating income grew by 21% year on year while cost to income ratio improved to 50%, an indication that the Company is beginning to reap benefits due to efficiencies derived from its investment in technology and cost optimisation.

The Company remained well capitalized with capital ratios of 22.28% and 23.46% for tier one and tier two capital respectively. The Liquidity position remained strong with an average liquid assets ratio above 36%. With the robust liquidity, strong equity shareholders, healthy capital position and a refreshed five-year ‘customer obsessed’ strategy, the Company will continue to play its role in supporting the recovery of its customers and their businesses; and is well positioned to seize the emerging opportunities in several sectors.

Mathias Katamba, CEO of dfcu Bank, the trading subsidiary of dfcu Limited said:

“We achieved a good leap forward on the core metrics with robust growth in total income and continued reduction in operating costs. The pre-provisioning profit i.e. profit before provisions, fair value losses and tax grew significantly from Ushs 114 Billion in 2020 to Ushs 190 Billion in 2021.              The Bank’s overall profit was significantly impacted by the loan impairment charge, resulting from the adverse impact of the Covid – 19 pandemic, the associated containment measures on our customers’ businesses and the impairment of the financial asset. We continued to support our customers, especially those operating in sectors that remained locked down for an extended period, with credit relief and business recovery loans.”

“Looking ahead, we will continue to focus on the growth of our retail business, supporting businesses and individuals in the post covid recovery during 2022, in addition to building resilience in our loan book through rehabilitation and debt recovery programs.” Mr. Katamba concluded.

Share this:

  • Twitter
  • Facebook

Related

Leave a comment

Tags: dfcu banktop

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe

Discussion about this post


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



  • EDITORIAL POLICY
  • ABOUT US

© 2023

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

© 2023

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

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

Log In

Add New Playlist