Dfcu Bank registered a remarkable financial turnaround in 2022 after recording a profit after tax of Shs 30.6 billion, more than double the previous year’s performance, driven largely by improved cost management and reduced losses on financial instruments.The bank’s financial results showed a significant decline in impairment losses, which dropped from Shs 148 billion in 2021 to Shs 88 billion in 2022.
The reduction helped strengthen the lender’s profitability despite a decline in total income from Shs 450.5 billion to Shs 431.7 billion during the same period.dfcu Bank attributed the strong performance to effective credit risk management, expansion of its lending portfolio, and strategic investments aimed at strengthening its long-term business growth. The bank increased its number of borrowers by 15%, extending more financing opportunities to individuals and businesses across different sectors.The lender also expanded its investment in government securities, growing the portfolio by 63% as part of efforts to diversify its assets and create additional income streams. Management said continued investment in technology had further improved service delivery and enabled the bank to respond to changing customer demands.
The positive results came shortly after the departure of former Managing Director Mathias Katamba, who resigned in January 2023 citing personal reasons. Following his exit, dfcu appointed Zimbabwean national Charles M. Mudiwa as the new Managing Director and Chief Executive Officer, effective April 11, 2023.
Meanwhile, government-owned PostBank Uganda also reported improved financial performance after posting a 19% increase in profit after tax, reaching Shs 15.1 billion for the year ended December 2022.PostBank’s total assets expanded by 21.3%, rising from Shs 745 billion in 2021 to Shs 946.6 billion in 2022, while total income grew from Shs 144.5 billion to Shs 159.2 billion, supported by the bank’s digital transformation strategy launched in 2020.PostBank Managing Director Julius Kakeeto said shareholders had agreed to strengthen the institution further by reinvesting retained earnings worth Shs 19 billion recorded at the end of 2022, as the bank continues positioning itself for greater growth in Uganda’s financial sector.
