Dfcu bank’s major shareholder moots exit

Dfcu bank’s major shareholder is said to be unhappy with the bank’s business and is interested in detaching from the bank, Eagle Online can say.

This follows that the bank has of recent made only Shs60 billion in profit despite making an investment of about Three Trillion Shillings over the recent years.

However, as the shareholders are unhappy about the performance, two big clients are reported to have left the bank to Stanbic bank and accordingly, this has left the bank unsure about the remaining clients.

In January 2017 Dfcu bank acquired Crane Bank Limited at Sh200 billions paid in installments from Shs500 billion bad book of the latter. Some shareholder were not happy with the transaction that has put the bank in bad image.

According to highly placed sources at the bank, the Shs1.8 billion Dfcu Financial Centre built at Namanve is one of the projects that have caused the bank financial loss. The building continues to eat into the bank’s finances in terms of security, power and other costs even though the bank is not gaining from it.

The source further said most top managers who resigned took away big clients of the bank and linked them to Dfcu’s competitors.

In July 2018, UK’s CDC Group indicated its desire to exit the investment.

The shareholding

Arisse BV -58.7 per cent

CDC Capital Partners Ltd.

National Social Security Fund Uganda

The Rock Creek Group LP-

Old Mutual Investment Group (Pty) Ltd.

Russell Investment Management LLC

Uganda Bank of Staff Retirement Benefit Scheme

Vanderbilt University Foundation

Conrad N. Hilton Foundation

Jubilee Investment Co. Ltd.