Thursday 31st March 2022
dfcu Limited announces 2021 financial results
Core business metrics are solid as total operating income registers a 21% growth
dfcu Limited has today announced its audited financial results for the year ended 31 December 2021 showing a strong leap forward on the core business metrics.
Explaining the results, a statement from the Board of Directors of dfcu Limited underscored that while credit impairments had a substantial impact on earnings, the Company demonstrated resilience in 2021 showing continued improvement in most of the top line figures driven by strong income growth and cost control. Operating income grew by 21% year on year while cost to income ratio improved to 50%, an indication that the Company is beginning to reap benefits due to efficiencies derived from its investment in technology and cost optimisation.
The Company remained well capitalized with capital ratios of 22.28% and 23.46% for tier one and tier two capital respectively. The Liquidity position remained strong with an average liquid assets ratio above 36%. With the robust liquidity, strong equity shareholders, healthy capital position and a refreshed five-year ‘customer obsessed’ strategy, the Company will continue to play its role in supporting the recovery of its customers and their businesses; and is well positioned to seize the emerging opportunities in several sectors.
Commenting on the results, Mathias Katamba, CEO of dfcu Bank, the trading subsidiary of dfcu Limited said:
“We achieved a good leap forward on the core metrics with robust growth in total income and continued reduction in operating costs. The pre-provisioning profit i.e. profit before provisions, fair value losses and tax grew significantly from Ushs 114 Billion in 2020 to Ushs 190 Billion in 2021. The Bank’s overall profit was significantly impacted by the loan impairment charge, resulting from the adverse impact of the Covid – 19 pandemic, the associated containment measures on our customers’ businesses and the impairment of the financial asset. We continued to support our customers, especially those operating in sectors that remained locked down for an extended period, with credit relief and business recovery loans.”
“Looking ahead, we will continue to focus on the growth of our retail business, supporting businesses and individuals in the post covid recovery during 2022, in addition to building resilience in our loan book through rehabilitation and debt recovery programs.” Mr. Katamba concluded.