Consolidated dfcu Limited performance highlights for the year ended December 2020

dfcu Limited has today released its financial results for the full year ending December 2020. In its highlights based on the robust liquidity and healthy capital position, the Bank’s board has proposed a dividend payout of Ushs50.33 per share equivalent to Ushs 37.65 Billion Shillings.

In a statement made by the dfcu Bank CEO, Mathias Katamba as he announced the results to the media, he said; “Due to the COVID-19 pandemic, 2020 was unprecedented in many ways having an adverse impact across the world and in Uganda affecting many sectors and livelihoods in different ways. While the impact of the pandemic affected our business operations, the Bank demonstrated resilience in the face of adversity and our core business remained strong and continued to grow year on year. We are therefore pleased to announce the proposal to pay dividends to our Shareholders.”

In response to the pandemic environment, the dfcu Bank re-evaluated and made proactive adjustments to its business model, risk management frameworks and business continuity plans. Additionally, the Bank promoted the usage of digital channels and supported customers, especially the SME’s to restart their businesses as the lockdown was gradually eased. By remaining close to the customer and constantly evaluating the environment, itcontinues to deploy new capabilities to support customers and grow its business.

Below is a summary of the bank’s financial results.

• The asset base increased by 18% from Ushs 2,958 billion to Ushs 3,499 billion, upheld by strong growth in liquid assets and loans and advances.

• The Group’s deposit base grew by 27% from Ushs 2,039 billion to Ushs 2,595 billion. The growth was as a result of both newly acquired and existing clients across the business segments. Management implemented a clear strategy of growing the liability base, as well as retention of the existing customer relations.

• Shareholders’ funds grew by 4% from Ushs 569.7 billion to Ushs 592.9 billion as result of increase in retained earnings.

• Overall interest income increased by 6% from Ushs 325 billion in 2019 to Ushs 342 billion in 2020 due to the increase in the loans and advances and government securities.

• Net loan loss provisions increased by 107% from Ushs 14 billion in 2019 to Ushs 30 billion in 2020. The increase in the net loan loss provisions is attributed to the negative impact of Covid-19 on our customers’ business operations. There was also a higher than anticipated impairment charge on the financial asset of Ushs 50billion in 2020 compared to Ushs10 billion in 2019.

• Net profit after tax decreased to Ushs 24 billion due to the negative impact of provisions for loans and advances, and impairment of the financial asset.

• The company remained well capitalized with capital ratios of 19.34% and 20.94% for tier one and two capital respectively. Liquidity position remained strong with an average liquid assets ratio above 35%. Considering this robust liquidity and healthy capital position, the Boardhas proposed a dividend payout of Ushs50.33 per share equivalent to Ushs 37.65 Billion Shillings.