location: Plot 2, Jinja Road, Kampala, Uganda Postal Address: P.O.BOX 70, Kampala, Uganda  dfcu Bank profit up by 25% as dividend reaches Shs25.2 Dfcu Bank has reported a 25 per cent jump in after-tax profit after a good return was made on investments in government securities. In results published, the after-tax profit of dfcu was Shs46.2b up from Shs37b. dfcu, which acquired some of the assets and liabilities of Crane Bank, attributed this rise in profitability to the strategic placement in government securities investments. According to the financial statements, income from government securities grew by 66 per cent to Shs72.2b. Government securities offered higher yields as banks slowed down in lending to the private sector. dfcu’s investment in government securities rose for both those held till maturity and those that are traded. Read more ▪  KACITA: Dfcu bank summons Crane Bank borrowers for talks Former Crane Bank clients who secured loans before the bank collapsed have been asked go for discussions on how to repay their outstanding loans now under dfcu bank.In a statement to New Vision, Jude Kansiime, the head-brand, marketing and communication said the bank is proactively reaching out to all borrowers to come over.The statement was released after traders under Kampala Capital City Traders Association (KACITA) complained that they were being put under a lot of pressure to repay the loans which they secured from Crane Bank. Dfcu bank took over all the assets and liabilities of Crane Bank."We would encourage borrowers with non-performing loans to immediately come over to our credit department and renegotiate their loans if they can demonstrate ability to pay," Kansiime said.He added that the Bank was reviewing cases that were under foreclosure at the time of take over with a view of reaching an amicable settlement if the borrowers can demonstrate adequate cash flows to service their obligations. Read more ▪  Dfcu told to provide affordable services Dfcu group has unveiled its Shs55 billion home, with a call to provide affordable and tailor-made services.Speaking during the opening of the dfcu tower, Finance minister Matia Kasaija said the bank is among the top five financial institutions in the country, thanks to the long term credit it extends to key sectors of the economy.According to Mr Kasaija, the bank has demonstrated its ability in long term lending as evidenced in sectors such as health, education and agriculture, let alone manufacturing and horticulture, among others.That notwithstanding, Mr Kasaija said the cost of banking services and related charges has negatively impacted on the general development of the industry, urging the financial institutions to reduce on such exorbitant costs.Read more ▪ Rising expenses reduce Dfcu Bank’s profitability trend Dfcu Bank Limited, which owns Uganda’s seventh-largest bank by assets, has had its income reduced by a sharp rise in operating expenses. In interim results released, the bank net profit fell 29 per cent to Shs13.6b from Shs19b compared to the same period. This reduction breaks a trend of rising profitability. Dfcu is the second bank to publish its results after Stanbic Bank did the same. The two banks share similarities, especially a considerable rise in operating expenses. Dfcu’s operating expenses rose by Shs10b to Shs44b, up from Shs34.6b. This is a rise of 30 per cent. Read more ▪ Dfcu Bank share price remains high despite additional listing High demand for dfcu shares has seen the company’s share price remain high despite the listing of 250 million new ordinary shares on Uganda Securities Exchange (USE).The market had anticipated the price to fall by a half of the previous price of Shs1,250 per share because of the extra 250 million shares. A half of 1,250 per share after listing new shares would have been Shs625 but this didn’t happen as the demand for the company shares remained high. Addressing market analysts, journalists and brokers during the listing, the chief executive officer African Alliance Uganda Limited, Mr Kenneth Kitariko, said: “Dfcu shares are trading at Shs650 each which is above the premium price. This amount is above the half-way point of Shs1,250 price it was trading before the listing of new shares on USE.”Mr Katariko said the reason why the dfcu share price never dropped is because investors consider dfcu a good stock. Read more ▪ Dfcu shareholders get dividends despite difficult business times Dfcu bank shareholders will get dividends despite the hard economic times the financial industry has endured in the previous years. The bank board has recommended a dividend of Shs17.8 per share for shareholders. In addition to the cash dividends, upon regulatory approval, the shareholders will also get bonus shares in the proportion of one new bonus share for every one share currently owned. Bonus shares are additional shares given to the current shareholders without any additional cost, based on the number of shares that a shareholder owns. These are company’s accumulated earnings which are not given out in form of dividends, but are converted into free shares. Speaking at the annual general meeting, dfcu bank managing director Juma Kisaame, said the bank had to fulfill its promise to shareholders despite bad economic times, resulting from the global recession, that has hit financial institutions hardest. Read more ▪ Dfcu secures Shs24.9 billion loan to boost credit access Dfcu retail and small and medium sized enterprise customers will now access affordable loans after the bank secured a loan from the Commonwealth Development Corporation (CDC).The seven-year $10 million (about Shs24.9 billion) loan from the United Kingdom’s Development Finance Institution is also expected to strengthen dfcu’S capital base and increase its lending capability to support SMEs and retail customers. Read more |
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