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Kampala, Uganda | THE INDEPENDENT | dfcu bank’s profit after tax has more than doubled to Shs 30.6bn for 2022 owing to a sharp drop in operating expenses.
The lender’s impairment losses on financial instruments fell from Shs 148bn in 2021 to Shs 88bn as interest payment on deposits dropped from Shs 62bn to Shs 56bn during the same period under review. Similarly, the lender’s income fell from Shs 450.5bn in 2021 to Shs 431.7bn.
dfcu executives said the lender’s performance is attributed to strong credit risk management and overall earnings.
“We extended loans to more individuals and businesses across different customer segments, resulting in a growth of the number of borrowers by 15%. We invested in government securities growing the portfolio by 63%, which is part of the focus to diversify the asset base,” the lenders executive said, adding the ongoing investment in technology strengthened its ability to serve changing customer needs.
This comes barely four months since Mathias Katamba resigned as the managing director at the dfcu effective January this year citing personal reasons.
As such, the lender has appointed Charles M. Mudiwa, a Zimbabwean national, as the Managing Director and Chief Executive Officer, effective April.11.
Post bank posts profit growth
Meanwhile, PostBank, a government-owned lender recorded a 19% growth in profit after tax to Shs15.1bn for the year ended December 2022.
The lender’s total assets grew significantly by 21.3% from Shs745 billion in 2021 to Shs946.6 billion in 2022. The bank’s total income also increased from Shs144.5 billion in 2021 to Shs159.2 billion in 2022, which can be attributed to the bank’s digital transformation journey that began in 2020.
Post Bank Managing Director, Julius Kakeeto, said following the good performance, shareholders have resolved to capitalize on retained earnings of the Shs 19 billion as of the end of 2022.
