Kampala: dfcu Bank has announced its financial results for the first half of fiscal year 2024, reporting an improved performance in Net profit after tax, which increased by 45% to UGX 42 billion in June 2024 from UGX 29 billion in June 2023.

Half-Year Financial Highlights:
Net profit after tax increased by 45% to UGX 42 billion in June 2024 from UGX 29 billion in June 2023. This growth is attributed to-

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a) significant reduction in credit losses from loans and advances, owing to sustained recoveries efforts
b) reduction in the interest expense cost as a result of a deliberate effort to balance our deposits drivers
c) growth in fees and commission arising from the increase in transacting customers year on year.

Compared to full year 2023, this performance was an increase of UGX 13.6 billion, a 48% growth year on year.
Net loan loss provisions decreased significantly by 114% from a loss of UGX 50 billion in June 2023 to a credit of UGX 6 billion in June 2024. The decrease resulted from management’s efforts to reduce the non-performing loans and diversify the portfolio thereby lowering the concentration risk. Management continues to closely monitor the non-performing loans to rehabilitate them and make recoveries. The current strategy resulted in the reduction of the non – performing loans ratio from 15.2% in June 2023 to 5.2% in June 2024.
The bank’s asset base increased by UGX 6.5 billion from UGX 3,158 billion in December 2023 to UGX 3,164 billion in December 2024. The growth was mainly attributed to the increased investment in government securities that registered a growth of 4% (UGX 36.5 billion), a strategy by management to diversify earning assets given the cautious approach to credit risk during the first half of the year.
The Company’s deposit base remained flat at UGX 2,319 billion in June 2024 from December 2023. Management continues to drive a balance in the bank’s deposit mix, keeping interest costs within target.
Shareholders’ funds grew by 6% from UGX 644 billion in December 2023 to UGX 684 billion in June 2024 arising from the increase in retained earnings at half year.
The Company remains well capitalized with capital ratios of 29% and 30% for core and total capital respectively. Liquidity position remains strong with an average liquid assets ratio above 40%. Considering this robust liquidity and healthy capital position, management is optimistic that the Company is well positioned for future growth and higher financial performance.

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