dfcu Limited on Thursday held its Annual General Meeting (AGM), providing a comprehensive overview of its achievements over the past year (2022) and outlining its strategic priorities for continued growth.
Despite a challenging global economic environment, dfcu reported robust financial results for the financial year ending 31st December 2022, highlighted below:
Profit after tax grew by 217% year on year.
Loan impairments reduced by 41%.
Total assets grew by 3% from Ugx 3.13 trillion to Ugx 3.24 trillion.
15% growth in the number of borrowing customers.
Customer deposits grew by 6% driven by current and savings account deposits.
Improved customer deposits mix resulted in a 10% reduction in interest expense.
Substantial investment in Government Securities growing the portfolio by 63%, as part of the focus to diversify the asset base.
During the AGM, The Chairman of dfcu Limited Mr. Jimmy D. Mugerwa underpinned the Company’s solid position.
“Our business remains very strong, and our trading subsidiary dfcu Bank has consistently maintained strong capital ratios. The core and total capital ratios of 24.5 % and 25.3% respectively are well above the regulatory capital requirements of 13% and 15% respectively,” Mugerwa said.
“The Bank was able to meet the new regulatory minimum share capital thresholds without additional capital injection from Shareholders”. he added.
Recognizing the importance of delivering value to its shareholders, the Board of Directors recommended a dividend of UGX 8.19 per share for the year ended 31st December 2022. This dividend payment will be subject to statutory deductions.
dfcu continued to make a difference in the community with several initiatives in the areas of agriculture, women in business and financial inclusion, and showed greater importance to Environmental, Social, Governance programs (ESG). Through the Agribusiness Development Centre, the Company expanded its support to agri-businesses with capacity building, provision of credit and value chain financing.
Looking ahead, the Company will focus on executing its strategy anchored on transforming lives and businesses.