Dfcu Limited has reported its first annual fall in half-year profits in three years as operating expenses increased and Dfcu Bank, the company’s largest subsidiary, pushed up its provisions for bad loans.
On Thursday Dfcu said its operating expenses hit Shs150.4bn in the six months to June, 18.8 per cent higher than the same period last year. The company’s pre-tax profits fell 22 per cent, while its net profit was down 18.5 per cent at Shs34.5bn — the first decline in half-year earnings since 2022.
The company, which derives most of its revenue from Dfcu Bank, recorded an increase in its provisions for bad loans to Shs9.5bn. Last year, that charge was negative after the bank released provisions totalling Shs6.9bn.
Net loans and advances to customers rose for the first time in five years to Shs1.2tn, which is 16.8 per cent higher than in the same period last year. In the first half of 2024, the company reported a 12.6 per cent decline in loans and advances.
Compared to a 14.1 per cent fall last year, net income climbed 17 per cent year on year to Shs199.6bn.
