The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | JULIUS BUSINGE | dfcu Bank has posted Shs 114 bn for the first half of this year up from Shs 23bn in the same period last year, according to its interim consolidated financial results released August 15, 2017.
According to a notice issued on Tuesday, top management attributed the profit to changes in equity holders of the company.
The company’s balance sheet jumped from Shs 1.8trillion in December 2016 to Shs 3.05 trillion as at June 30, 2017. Its customer numbers grew by 50% in the period under review and its branch network grew from 43 to 67 with 100ATMs.
However, the banks operating expenses almost doubled from Shs 48bn in the first six months of last year to Shs 91bn in the period from January –June-2017.
These numbers includes those of Crane Bank which it (dfcu) acquired at the end of last year. Dfcu’s Crane Bank take-over made it become the second largest commercial bank in the country, with an asset base of Shs3.37trillion, just behind the market leader Stanbic Bank that boasts of Shs3.73trillion. It also saw an increase in the branch network from 45 to 66 branches countrywide.
According to the notice, the bank’s top management say that dfcu acquired certain assets and liabilities of Crane Bank Limited (currently in receivership) which it says was a great opportunity for the group.
“We believe that the acquisition which placed dfcu Bank amongst the top three banks in the market in terms of total assets puts the group firmly on the path to transforming from a niche bank to a universal bank,” the notice reads in part, “Overall we expect the transaction to result in enhanced value to our shareholders through superior financial performance.”
Going ahead, officials say they will optimize synergies from the acquisition of Crane Bank and use emerging technologies among other measures to keep viable in Uganda’s banking sector that has 24 commercial banks and one Development Bank.
“We are committed to our stakeholders and purpose,” said dfcu Executive Director William Sekabembe at a dinner at which the figures were discussed.
Sekabembe added that dfcu is investing $20m in its IT field to effectively serve its customers. “Investment in technology will drive investments so as to get the first move advantage for the bank.”
dfcu’s half year 2017 net profit rose to Shs114bn from Shs23.3bn.
Stanbic’s half year profit dropped to Shs95.4bn from Shs107.2bn— Mark Keith Muhumuza (@mumakeith) August 15, 2017
The acquisition of Crane Bank has everything to do with dfcu’s performance. The deposits surged from Shs982bn to Shs1.8trillion.
Advertisement— Mark Keith Muhumuza (@mumakeith) August 15, 2017
The dfcu loan book also grew to Shs1.3trillion from Shs759bn in the first half of 2017.
— Mark Keith Muhumuza (@mumakeith) August 15, 2017
dfcu also discloses that in the acquisition of Crane Bank, it spent Shs68.3bn on the cash & balances held by Crane Bank.
— Mark Keith Muhumuza (@mumakeith) August 15, 2017
Stanbic though remains the largest bank with assets of Shs4.7trillion. By end of 2017, we shall know whether dfcu has overtaken StanChart.
— Mark Keith Muhumuza (@mumakeith) August 15, 2017
Top banks by assets (June 2017)
Stanbic – Shs4.7tr
dfcu – Shs3.5tr
*StanChart – Shs3tr
*Centenary – Shs2.3tr*based on 2016 financials
— Mark Keith Muhumuza (@mumakeith) August 15, 2017
Interesting on acquisition of crane bank assets and liabilities the net profits jump to shs 124 billion. Something is deeply hidden in the business transactions of Crane Bank, DFCU and BOU. The truth needs to be brought out in a honest manner.
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The Old Man of the Clan had seen it coming
Too good to be true. Such performance is what Crane Bank used to parade. In any case, what I miss from such parade is the animated Crane Bank advert of: “you have to save”!
Congrats DFCU, I hope this is not another Crane Bank in waiting