dfcu Limited hosts 54th Annual General Meeting

dfcu Bank has today hosted shareholders members to the annual General Meeting at Nile Hall, Hotel Africana.

During the Meeting, the bank announced key issues to its shareholders and here are some of the key issues.

Key Facts Documents

1. 2018 Performance Highlights

i. Loans and advances grew by 5% as we focused on the asset quality of our consolidated book, which resulted in reduction in the impairment expenses by 61% from UGX 49 billion in 2017 to UGX 19 billion in 2018.

ii. Overall interest expense reduced by 20% from UGX 131.6 billion to UGX 104.8 billion showing improved efficiency in the liability mix.

iii. Customer deposits remained stable at UGX 1.9 trillion as we focused on our strategy of growing the current and savings deposits that are a more cost effective source of funding, which resulted in a 11% reduction in the interest expense from UGX 88 billion to UGX 78 billion.

iiii. Total assets reduced by 5% from UGX 3.1 trillion to UGX 2.9 trillion due to repayment of borrowed funds and subordinated debt. This resulted in a 39% reduction in our interest expense from UGX 44 billion to UGX 27 billion.

v. Non funded income in terms of fees and commissions grew by 29% from UGX 40 billion to 51 billion as we continue to harness the benefits of the investments in technology and growth in the customer base.

vi. The Group posted total comprehensive income of UGX 60.8 billion, which was lower than the previous year that included a one off item of UGX 119 billion which arose from the business combination.

2. Dividends

The Shareholders shall receive a dividend of UGX 33.01 per share less withholding tax for the year 2018.

3. Directors Re- Elected

i. Mr. Fred Pelser

Mr. Fred Pelser is a Chartered Accountant and a Senior Investment Manager, with Arise BV. He has over 15 years’ experience in the African private equity and financial services sectors. He previously worked for Norfund as a member of the Financial Institutions department with a strong investment track record.

ii. Ms. Barbra Teddy Arimi

Ms Arimi is the Head of Marketing and Communications at the National Social Security Fund (NSSF) and is a member of the Board of Directors of the CEO Apprenticeship Program Alumni Association. She is a seasoned Marketing Professional, Associate of the Chartered Institute of Marketing (CIM) and a Member of the Chartered Institute of Public Relations (CIPR).

iii. Mr. Albert Jonkergouw

Mr. Jonkergouw is an Accountant with over 20 years’ experience in retail and wholesale banking internationally and within Rabobank Netherlands. He is currently the Managing Director for Achmea Africa Insurance in Kenya. He is a member of NOREA (Netherlands Order of Registered IT Auditors) and the South African Institute of Professional Accountants (IPA). He is also a certified member of the NyenrodeBusiness University Non-Executive Director Board.

iiii. Mr. Michael Turner.

Mr. Turner has worked with Actis, the leading growth markets Private Equity investor, in various capacities since 1988 mainly in Eastern, Central and Southern Africa. Prior to joining Actis, he worked in investment banking in London, for Lehman Brothers and Klienwort Benson, having started his carrier in PricewaterhouseCoopers.

He is a fellow of Institute of Chartered Accountants in England and Wales.