An increase in operating expenses led to a drop in DFCU’s net profitability in the first six months of 2019.
According to the half year financial results released by the bank last week, in the first six months of 2019, the bank registered net profits of Shs 35.7 billion.
This is lower than the Shs 41.6 billion the bank recorded in the same period last year.
The drop in profitability was attributed largely to a rise in operation expenses as well as to 35.7 billion.
The results show that loans advanced to customers dropped to Shs 1.3 trillion from Shs 1.4 trillion over the same period last year.
The drop in loan uptake, according to the statement is attributed to instabilities in the global markets that deterred firms from borrowing.
However the bank’s investments increased by 4% in the six months, a sign they said is positive for future growth
This is the second consecutive year that the bank is registering a dip in profitability in a six months period.
In 2018, DFCU’s net profits declined to Shs 62 Billion down from Shs 78 billion.
Then, the bank attributed the decline to the turbulence associated with its takeover of Crane Bank, which kicked up a financial storm.