Dfcu Bank profits drop by Shs 73 billion between January and June 2018

Dfcu has registered a drastic drop in profits in the period January to June 2018.

According to its financial results for the six month period, the bank made a profit of Shs41.3b in the year ended June 30 compared to Shs114b posted for the year ended December 31, 2017. This is a difference of Shs 73 billion.

“The results show a profit after tax of Shs41.3b compared to Shs114.1b for the same period in 2017. The results for 2017 included a one off bargain purchase of Shs121.8b,” the notes read in part.

In 2017, Dfcu controversially acquired Crane Bank months after Bank of Uganda had taken over the bank. The acquisition of Crane Bank, which had a vast network of branches initially helped Dfcu  coast to a Shs 127 billion profit for the year that ended December 31, 2017.

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According to the results, the drop in profit is as a result of a repayment of $50 million loan to Arise BV.

Arise BV, one of the largest shareholders in the bank extended the loan to help recapitalise the bank.

The bank’s loan book grew to Shs1.4 trillion up from Shs1.3 trillion in the period under review.