Dfcu bank on Friday released provisional half-year results showing a 70.71% growth in net profit and 20.08% growth in net income.
Net profit for the period was Shs23.32 billion compared Shs13.66 billion for the first half of 2015. Net income also rose to Shs83.79 billion from Shs69.77 billion last year.
The bank’s good performance is down to two factors: operating expenses grew at a lower rate relative to the rise in net income, while the provision for loan impairments declined – a sign that the bank was more confident of its ability to collect amounts due on the loans it made this year compared to last year.
Operating expenses rose 7.64% to Shs48.07 billion from Shs44.66 billion last year. On the other hand, the provision for bad loans fell 32.33% to Shs5.28 billion from Shs7.81 billion last year.
The results show a 70.73% rise in earnings per share to Shs46.90 from Shs27.47 last year. Dfcu’s share price has fallen 18.37% and 16.05% since the start of 2016 and in the past one year, respectively.
Shareholders equity rose 16.20% to Shs238.45 billion from Shs205.20 billion in 2015.
The value of loans advanced during the period fell 0.95% to Shs759.42 billion, compared to Shs766.75 last year. Customer deposits, on the other hand, rose 11.77% to Shs982 billion compared to Shs878.55 billion last year.
The bank’s board of directors did not recommend payment of an interim dividend.