The latest financial statement for DFCU bank shows that it made a net profit of Shs127.6 billion as of December 31, 2017, up from Shs46.2 billion registered in the same period in 2016.
In August 2017, DFCU bank announced net profits of Shs114 billion for the first six months of that year, after acquiring Crane Bank with mainly all its assets, deposits and loans.
The bank noted then that the acquision of Crane Bank in January that year helped it reap Shs114 billion in profits from Sh23 billion earned in the same period the previous year. That was a huge percentage increase.
Further analysis of the profit scale shows that DFCU made Shs13.2 billion net profit in the second half of 2017, far less, when compared to the first half, even as the statement shows that year-on-year, the bank raised its net profit by Sh81.4 billion.
Meanwhile the non-performing loans (NPLs) for the year rose by Shs38.3 billion to Shs96.6 billion in 2017, up from Shs58.3 billion in 2016. The bank wrote off Shs27.2 billion as bad loans compared to Shs5 billion written off in 2016.
The bank’s credit to customers rose to Shs1.3 trillion in 2017, up from Shs834.8 billion in 2016.More, customer deposits rose to Shs1.98 trillion from Shs1.13 trillion received a year earlier. That was attributed partly to the acquision of Crane Bank.
dfcu financial analysis
The bank’s total assets increased to a record Shs3 trillion, up from Shs1.7 trillion in 2016, like explained the boost in assets was a result of the acquisition of its rival Crane Bank. There is a pending case in court where former owners of Crane Bank are seeking recovery of assets, more so fixed assets.
The statement shows that DFCU’s core capital increased to Shs362 billion in 2017, up from Shs188 billion in 2016.
The management has earmarked Shs51 billion for dividends compared to Shs18.5 billion in 2016, meaning each shareholder will more cash on account.
So who are the shareholders? Dfcu is partly owned by the Commonwealth Development Corporation (CDC) a British government-owned company, together with other foreign firms like Rabo Development from the Netherlands and NorFinance from Norway who are shareholders in Arise B.V together with Norfund, a Norwegian government owned Private Equity firm and FMO, the Dutch Development Bank.
BoU transferred the liabilities (including deposits) of Crane Bank to DFCU Bank in 2017.
The leaked agreement between Bank of Uganda and DFCU indicated that the external owned bank got Crane Bank with assets valued at Shs1.3 trillion for just Shs200 billion (payment for liabilities).
The Agreement did not state the amounts of money paid by DFCU as a net purchase price; or the payment terms for monies, or the assets (outside branches) that DFCU was taking over.
DFCU Shareholding percentages
Arise BV 58.71 per cent
CDC Group of the United Kingdom 9.97 per cent
National Social Security Fund (Uganda) 7.69 per cent
Kimberlite Frontier Africa Naster Fund 6.15 per cent
2 undisclosed Institutional Investors 3.22 per cent
SSB-Conrad N. Hilton Foundation 0.98 per cent
Vanderbilt University 0.87 per cent
Blakeney Management 0.63 per cent
Bank of Uganda Staff Retirement Benefits Scheme 0.59 per cent
Retail investors 11.19 per cent
BoU staff retirement benefit scheme is 0.59 per cent
