dfcu Limited has released its financial results for the year 2020.
Consolidated dfcu Limited performance highlights for the year ended December 2020
• The asset base increased by 18% from Ushs 2,958 billion to Ushs 3,499 billion, upheld by strong growth in liquid assets and loans and advances.
• The Group’s deposit base grew by 27% from Ushs 2,039 billion to Ushs 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.
• Shareholders’ funds grew by 4% from Ushs 569.7 billion to Ushs 592.9 billion as result of increase in retained earnings.
• Overall interest income increased by 6% from Ushs 325 billion in 2019 to Ushs 342 billion in 2020 due to the increase in the loans and advances and government securities.
• Net loan loss provisions increased by 107% from Ushs 14 billion in 2019 to Ushs 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 Ushs 50 billion in 2020 compared to Ushs10 billion in 2019.
• Net profit after tax decreased to Ushs 24 billion due to the negative impact of provisions for loans and advances, and impairment of the financial asset.
• The company remained well capitalized with capital ratios of 19.34% and 20.94% for tier one and two capital respectively. Liquidity position remained strong with an average liquid assets ratio above 35%.
Considering this robust liquidity and healthy capital position, the Board has proposed a dividend payout of Ushs50.33 per share equivalent to Ushs 37.65 Billion Shillings.