15 August 2017

Uganda: DFCU Bank Posts Shs 114 Billion As Net Profit for First 6 Months of 2017

Kampala — DFCU Bank has posted Shs 114 bn for the first half of this year up from Shs 23bn in the same period last year, according to its interim consolidated financial results released today (Aug 15).

According to a notice issued today, top management attributed the profit to changes in equity holders of the company. The company's balance sheet jumped from Shs 1.8trillion in December 2016 to Shs 3.05 trillion as at June 30, 2017. Its customer numbers grew by 50% in the period under review and its branch network grew from 43 to 67 with 100ATMs.

However, the banks operating expenses almost doubled from Shs 48bn in the first six months of last year to Shs 91bn in the period from January -June-2017.

These numbers includes those of Crane Bank which it (DFCU) acquired at the end of last year. According to the notice, the bank's top management say that DFCU acquired certain assets and liabilities of Crane Bank Limited (currently in receivership) which it says was a great opportunity for the group.

"We believe that the acquisition which placed DFCU Bank amongst the top three banks in the market in terms of total assets puts the group firmly on the path to transforming from a niche bank to a universal bank," the notice reads in part, "Overall we expect the transaction to result in enhanced value to our shareholders through superior financial performance."

Going ahead, officials say they will optimize synergies from the acquisition of Crane Bank and use emerging technologies among other measures to keep viable in Uganda's banking sector that has 24 commercial banks and one Development Bank.

Uganda

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