dfcu Bank has announced a significant improvement in its financial performance for the year 2024, reporting a profit after tax of UGX 72 billion, a remarkable 151% increase from the previous year.
The results were presented by Rebecca Birungi, the Acting Chief Finance Officer of dfcu Bank, during the bank’s 2024 Full-Year Financial Results Announcement at its head office in Nakasero.
According to Birungi, the bank’s performance was primarily driven by growth in its loan portfolio, increased interest income, and strategic investments in government securities. “Our net interest income grew to UGX 269.3 billion, an increase of 4% year on year. This was largely attributed to a rise in loan interest income and returns from investments in government securities,” she stated.
The bank’s fee and commission income also saw an uptick, closing at UGX 66.5 billion, reflecting a 2% increase from 2023. “This growth was fueled by increased business activity and a rise in customer transactions across both our physical and digital banking channels,” Birungi noted. Additionally, the bank recorded an increase in foreign exchange trading volumes, which contributed to its net trading and other income of UGX 26.8 billion.
A major highlight of dfcu’s performance was the significant reduction in non-performing assets (NPA). “We have been very intentional in strengthening our credit risk management processes. As a result, our NPA ratio reduced from 9.5% in 2023 to 4.4% in 2024,” Birungi explained.
Impairment losses on loans and advances saw a notable shift, recording a credit of UGX 12 billion compared to a charge of UGX 82.7 billion in the previous year. “This 115% improvement is a testament to our rigorous portfolio monitoring and enhanced customer recovery efforts,” she added.
Despite a significant increase in operating expenses, which rose to UGX 292.6 billion (an 18% increase from 2023), dfcu Bank attributed this to investments in human capital and technology. “We made strategic hires, enhanced training programs, and revamped our digital platforms, including launching a new ATM switch and improving our mobile and internet banking channels,” Birungi elaborated.
The bank also faced rising legal costs during the year, contributing to the overall increase in operational expenditure.
Balance Sheet Performance:
The bank’s total assets grew by 9%, closing at UGX 3.4 trillion. This growth was driven by an increase in investment securities, which surged by over 100% to UGX 73.7 billion. Loans and advances to customers also saw modest growth, reaching UGX 1.132 trillion, reflecting a 1% increase as dfcu maintained a cautious lending approach focused on the SME sector.
On the liabilities side, customer deposits rose to UGX 2.3 trillion, a 2% increase from the previous year, while total liabilities stood at UGX 2.7 trillion, marking an 8% rise. Meanwhile, equity grew by 9% to UGX 704 billion, primarily driven by the increase in profits.
Birungi highlighted the bank’s strong profitability ratios, with return on equity improving from 4% in 2023 to 10% in 2024, while return on assets increased to 2%. “These improvements reflect our efficient utilization of resources and a strong balance sheet,” she commented.
Earnings per share also saw a significant rise, reaching UGX 96.4 in 2024, up from UGX 38.4 in the previous year. As a result, dividends per share increased to UGX 20.09, underscoring dfcu’s commitment to delivering value to its shareholders.
dfcu Bank’s capital adequacy ratios remained well above regulatory requirements, with core capital increasing to 29.1% and total capital rising to 29.8%. “This positions us strongly for future loan growth in our key focus sectors while maintaining regulatory compliance,” Birungi affirmed.
Looking ahead, dfcu Bank aims to leverage its strong capital position to further expand its loan portfolio, enhance digital banking capabilities, and optimize operational efficiency. “We remain committed to delivering sustainable growth and value to all our stakeholders through prudent financial management and strategic investments,” Birungi said.
The impressive financial results underscore dfcu Bank’s resilience and strategic direction, positioning it for continued success in Uganda’s dynamic banking sector.
The Bank’s Managing Director and CEO, Charles M. Mudiwa, credited dfcu’s strong performance to new strategies, including the adoption of advanced technologies and community engagement initiatives. He confirmed that the bank achieved a profit after tax of UGX 72 billion in 2024, a significant increase from UGX 28 billion in 2023.
“We believe we are turning a corner—after all, the numbers don’t lie. We are confident in the direction we are taking and the foundation we are building. But beyond the numbers, we are also a proudly Ugandan bank, driven by our purpose to transform lives and businesses in Uganda.
As we celebrate 60 years, we also mark this milestone with 60 acts of kindness, demonstrating our commitment to supporting Ugandans. In line with this, we invested nearly UGX 80 million to uplift communities across the country.”
He also revealed that the UGX 80M was not from the bank but from the staff, who came together, contributed this money, and raised 80 million shillings to support communities. “So it’s not about giving up, but our own staff doing it out of their own volition, identifying communities, 68 of kindness.”
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