Dfcu Bank headquarters in Kampala.

Dfcu bank has posted its 2018 profits indicating a sharp fall from its 2017 results.

The results indicate a decline in the deposits, the bank registered 0.4 per cent decline from Shs1.987 trillion registered in 2017 to Shs11.979 trillion in 2018.

Liquidity squeeze curtails lending; lending grows by a mere 4 per cent from Shs1.334 trillion to Shs1.393 trillion in 2018.
The bank also registered assets decline by 4.6 per cent from Shs3 trillion to Shs2.88 trillion and as a result, Dfcu in 2018 experienced a 21 per cent decline in income from Shs519.8 billion to Shs410.6 billion.

The net profit dropped by 51.6 per cent from Shs127.6 billion to Shs61.7 billion
With the poor posted in 2018, shareholders expected to take a 51.6 per cent fall in dividends as the money set aside for dividends reduces by 51.6 per cent from Shs51 billion to Shs24.7 billion.
Dfcu 2018 Results (1)
This is further a pain for Dfcu shareholders who have seen the value of their shares fall by 28.8 per cent from Shs970 on July 17, 2018 to the current Shs670 billion by closed of trading yesterday, March 27, 2019. And as a result, shareholders lost wealth, worth Shs212.9 billion.

This meager performance does not foretell well for shareholders of Dfcu stock as it could trigger a further fire sale of existing shares. Sudden supply of Dfcu shares on the market could trigger further price cuts.

Investment advisors and brokers, Crested Capital- had earlier warned that the Dfcu’s onetime windfall registered in 2017, as a result of Crane Bank’s acquisition would wane and that earnings would normalize to pre-acquisition levels.

The poor performance are posted at the time when one of the major funders of the bank is stipulating quitting the bank and should that happen, it means that the bank could be headed for trouble.

Dfcu shareholders

Arise BV 439,176,097 58.7%
CDC Capital Partners Ltd. 74,580,276 9.97%
National Social Security Fund Uganda 65,131,853 8.71%
The Rock Creek Group LP 54,958,626 7.35%
Old Mutual Investment Group (Pty) Ltd. 14,428,700 1.93%
Russell Investment Management LLC 12,789,000 1.71%
Uganda Bank of Staff Retirement Benefit Scheme 8,924,736 1.19%
Vanderbilt University Foundation 7,359,482 0.98%
Conrad N. Hilton Foundation 7,255,064 0.97%
Jubilee Investment Co. Ltd.