Dfcu has registered a tremendous growth in asset base, deposits, shareholders and Increase in liquidity in terms of cash and bank balances in 2021 compared to 2020 financial year.
According to the 56th Annual General Meeting which convened yesterday, the growth is alluded to customer’s commitment to deposit and withdrawal of cash and buying shares, loans and advances and other bank services.
The financial year report indicates that there is an 18% increase in asset base from Shs 2,958 billion to Shs 3,498 billion, upheld by strong growth in liquid assets and loans and advances.
“The Group’s deposit base grew by 27% from Shs 2,039 billion to Shs 2,595 billion. The growth was as a result of both newly acquired and existing clients across the business segments. Management implemented a clear strategy of growing the liability base, as well as retention of the existing customer relations,”read in part of the report.
Shareholders’ funds grew by 4% from Shs 569.7 billion to Shs 592.9 billion as result of increase in retained earnings. Net Loans and Advances to Customers grew by 15% despite a challenging year as a result of solid growth in underlying Business as the Bank continued to support customers and key sectors of the economy.
The report shows that Net loan loss provisions increased by 107% from Shs 14 billion in 2019 to Shs 30 billion in 2020. The increase in the net loan loss provisions is attributed to the negative impact of Covid-19 on our customers’ business operations. There was also a higher than anticipated impairment charge on the financial asset of Shs 50bn in 2020 compared to Shs 10bn in 2019.
“Overall interest income increased by 6% from Shs 325 billion in 2019 to Shs 342 billion in 2020 due to the increase in the loans and advances and government securities. Net profit after tax decreased to Shs 24 billion due to the negative impact of provisions for loans and advances, and impairment of the financial asset.” reads in part of the report
The company remained well capitalized with capital ratios of 19.34% and 20.94% for tier one and two capital respectively. It also shows 59% Increase in liquidity in terms of cash and bank balances. Overall liquidity position remained strong with an average liquid assets ratio above 35%.
During the meeting Mr. Friedrich C. Pelser and Ms. Arimi Barbra were re-elected as Directors
Mr. Pelser is a Chartered Accountant with over 19 years’ work experience and is currently working as an Investment Director with Arise B.V. He holds both a Bachelor and an Honours degree in Accounting Science from the University of South Africa. He has extensive experience in African financial institutions, Investment Banking and Private Equity which brings valuable insights to the board. His appointment demonstrates the continued commitment from Arise B.V. to dfcu’s growth and success.
Ms. Arimi is the Head of Marketing and Communications at the National Social Security Fund (NSSF) and is a member of the Board of Directors of the CEO Apprenticeship Program Alumni Association.
She is a seasoned Marketing Professional, Associate of the Chartered Institute of Marketing (CIM) and a Member of the Chartered Institute of Public Relations (CIPR). She has extensive experience in the areas of governance, communication, product development and strategy which she brings to the Board.