As dfcu Bank marks 60 years of operations, its recently released audited financial results for the year ending 31st December 2024 provide a comprehensive look at the bank’s financial health, strategic direction, and commitment to Uganda’s economic transformation. The numbers reveal a steady growth trajectory, underpinned by a robust financial strategy and significant investments in digital transformation and customer engagement.
Speaking on the results, Rebecca Birungi, the Acting Chief Finance Officer, detailed the bank’s financial performance, highlighting key figures that demonstrate stability and growth. Interest income grew by 3% to UGX 361 billion, driven primarily by an expansion in the loan portfolio and investments in high-yielding government securities. This steady rise in income reflects the bank’s effective deployment of assets to generate sustainable earnings.
However, non-interest income declined by 21%, largely due to lower recoveries on fair value assets. This was an anticipated outcome, as the fair value asset base has significantly reduced over the years. Despite this drop, the bank remains well-positioned to generate alternative income through its diverse service offerings.
Net income saw a modest 1% increase, closing at UGX 360.6 billion. Meanwhile, operating expenses rose by 18% to UGX 292.6 billion, reflecting dfcu’s ongoing investments in human capital, technology, and service infrastructure. The bank expanded its workforce through strategic hires, enhanced employee training, and launched new digital platforms, including a revamped ATM network and improved digital banking channels. These investments align with dfcu’s long-term vision of enhancing customer experience and operational efficiency.
A notable highlight of the financial year was the significant reduction in impairment losses on loans and advances. The bank recorded a credit of UGX 12 billion, compared to a charge of UGX 82.7 billion in 2023. This remarkable turnaround is attributed to the implementation of enhanced credit risk management practices, increased monitoring of loan portfolios, and a more rigorous approach to customer recovery processes.
As a result, dfcu’s Non-Performing Loan (NPL) ratio fell from 9.5% in 2023 to an impressive 4.4% in 2024. This steady decline, from 16% in 2021 to its current level, underscores the effectiveness of the bank’s risk mitigation strategies and its commitment to maintaining a healthy loan book.
Profit before tax stood at UGX 79.2 billion, while profit after tax surged by 51% to UGX 72 billion. This growth translated into a significant rise in earnings per share, which more than doubled to UGX 96.4, up from UGX 38.4 in 2023.
dfcu’s total assets experienced a 9% growth, closing at UGX 3.4 trillion. This expansion was driven by a strategic increase in investment securities, which rose by 35% to UGX 1.3 trillion. The bank leveraged opportunities in high-yielding securities, ensuring strong returns while maintaining a balanced risk exposure.
Loans and advances to customers grew by 1% to UGX 1.132 trillion. This measured growth reflects dfcu’s cautious approach to lending, prioritizing risk management while focusing on the SME sector. The bank’s selective lending strategy is designed to support small and medium enterprises (SMEs), which are vital to Uganda’s economic landscape.
Customer deposits increased by 2%, reaching UGX 2.3 trillion. The bank maintained a favorable deposit mix, reducing reliance on fixed deposits despite a rising interest rate environment. Meanwhile, borrowings increased significantly by 125% to UGX 270 billion, reflecting strategic fund drawdowns to support business expansion and investment initiatives.

Equity rose by 9% to UGX 704 billion, bolstered by strong profit growth. The total equity and liabilities closed at UGX 3.4 trillion, reinforcing dfcu’s solid financial footing and ability to sustain future growth.
The bank’s key financial ratios paint a picture of sustained stability and efficiency. Return on equity improved to 10%, up from 4% in 2023, while return on assets increased to 2%, demonstrating improved balance sheet utilization.
Liquidity ratios remained stable, closing at 34.2% in 2024, well above the regulatory minimum of 20%. This liquidity position underscores dfcu’s ability to meet customer demands and maintain financial flexibility. Capital adequacy ratios remained robust, with core capital increasing to 29.1% and total capital rising to 29.8%. Both figures exceed regulatory requirements, positioning the bank for continued loan growth and investment opportunities.
Shareholders also benefited from strong performance, with dividends per share rising to UGX 20.09 in 2024. This marks a significant increase from previous years, reaffirming dfcu’s commitment to delivering value to its investors.
While financial success is essential, dfcu’s impact goes beyond numbers. Charles M. Mudiwa, dfcu’s Managing Director and CEO, emphasized the bank’s role in Uganda’s socio-economic development. “As a Ugandan bank, we remain committed to transforming lives and businesses across the country,” Mudiwa stated.
To celebrate its 60th anniversary, dfcu launched the “60 Acts of Kindness” initiative, a corporate social responsibility campaign that saw staff members raise UGX 80 million to support community projects nationwide. Notably, this was not bank-sponsored funding; rather, it was a collective effort from dfcu employees who contributed their own money to give back to society. This initiative exemplifies dfcu’s deep-rooted commitment to social impact and community support.
With a strong financial foundation and a focus on innovation, dfcu is well-positioned for future growth. Strategic investments in digital banking, customer-centric solutions, and risk management will drive the bank’s next phase of expansion.
As dfcu navigates an evolving financial landscape, its dedication to stability, innovation, and responsible banking remains unwavering. With a clear vision for the future, the bank is set to continue its role as a key player in Uganda’s banking sector, fostering economic growth and financial inclusion.
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