DFCU Profits Surge Following Crane Bank Acquisition
DFCU bank has declared its financial results for the period January to June this year posting a remarkable profit over four times what it made in the same period in 2016.
The figures released indicate that the bank’s net profit shot to Ush 114 billion from Ush 23.3 billion in the six months to June 2017.According to the report, throughout the entire 2016, DFCU made Ush 45.3 billion and Ush 58.3 billion in net and gross profit respectively.
The same performance report shows that DFCU’s deposits grew from Ush 982 billion to Ush 1.8 trillion while its assets tripled to a sum of Ush 3 trillion year on year.
But this overwhelming performance can better be understood in the context of DFCU bank’s recent acquisition of Crane Bank which was the third larget largest with assets of about Shs 1.8 trillion by end of 2015.
Crane Bank was faced with financial volatility with the highest non-performing loan portfolio (20%) in the banking sector and subsequently, the regulator, Bank of Uganda stepped in to safeguard Crane Bank depositors.
Bank of Uganda placed the embattled Crane Bank under receivership until DFCU was vetted and found to be a suitable investor to take it over.
It is therefore no wonder, that DFCU’s half year financials also report a 50% surge in its customer base and growth by 1.7% in its balance sheet from Ush 1.8 trillion to Ush 3.5 trillion between December 2016 and June this year.