dfcu balance sheet expands as half-year loss hits Sh5.8b
Customer deposits increased to Shs2.87 trillion from Shs2.46 trillion a year earlier, while advances to customers grew to Shs1.44 trillion from Shs1.19 trillion, representing growth of about 21%.
dfcu Bank Chief Executive officer Charles Mudiwa
KAMPALA - dfcu Limited grew its balance sheet in the first half of 2026, with customer deposits and lending posting double-digit growth even as the bank slipped to a Shs15.8 billion loss after tax.
The bank’s total assets rose to Shs3.94 trillion by June 30, 2026, up from the corresponding period last year, driven by stronger customer deposits and an expanding loan book.
Customer deposits increased to Shs2.87 trillion from Shs2.46 trillion a year earlier, while advances to customers grew to Shs1.44 trillion from Shs1.19 trillion, representing growth of about 21%.
The figures point to continued business activity, with dfcu attracting more customer funds and extending additional credit during the period.
The unaudited half-year results show that customer deposits rose by about Shs410 billion, giving the bank a stronger funding base.
At the same time, borrowings declined to Shs200.4 billion from about Shs255 billion a year earlier, reflecting a greater reliance on customer deposits to support operations and lending.
The bank’s liquidity position also remained solid.
Liquid assets stood at Shs2.18 trillion at the end of June, while cash and cash equivalents amounted to Shs662.7 billion.
The bank’s advances to customers grew by about 21% to Shs1.44 trillion, signalling continued demand for credit from households and businesses.
However, the expansion in lending came with an impairment allowance of Shs11.8 billion on loans and advances, emphasizing the need for continued vigilance on asset quality as the bank grows its loan book.
The bank reported net income of Shs215.6 billion in the six months, up from Shs199.4 billion in the same period last year.
But operating expenses rose sharply to Shs230 billion from Shs150.4 billion, putting pressure on profitability.
Together with the Shs11.8 billion impairment allowance, the higher cost base pushed the bank into a pre-tax loss of Shs26.3 billion, compared with a profit before tax of Shs39.7 billion in the first half of 2025.
An income tax credit of Shs10.5 billion reduced the loss after tax to Shs15.8 billion.
Despite the earnings pressure, dfcu’s capital and liquidity position provide important support as the bank works to restore profitability.
With Shs2.18 trillion in liquid assets, Shs755.4 billion in shareholders’ equity and capital ratios of 27%, the lender remains well placed to continue operations and support credit growth.
The half-year performance presents a mixed picture of strong balance-sheet growth on one hand, and pressure on earnings on the other.
The increase in deposits, lending and assets points to continued expansion, while the rise in operating expenses highlights the need for tighter cost control.
The bank will also need to protect the quality of its growing loan book as it seeks to deepen lending and improve results in the second half of the year.
For customers and businesses, the growth in deposits and advances suggests that dfcu remains active in mobilising savings and extending credit to the economy.
Separately, dfcu Bank welcomed a ruling delivered on 23 July 2026 by the English Commercial Court in the ongoing proceedings brought by Crane Bank Limited and others against dfcu Bank and other parties.
The decision marks a significant procedural victory for the bank after claimants sought to challenge the admissibility of PwC reports and prevent dfcu from relying on evidence linked to them.
It follows earlier attempts by Crane Bank Limited and the other claimants to challenge the PwC forensic reports and prevent dfcu Bank from relying on those documents at trial.
In a previous judgment, the Court decided that those reports will be in evidence at trial. The Court’s latest decision means that the two PwC witnesses who led the teams who prepared these reports will be heard at trial.
PwC was engaged by the Bank of Uganda after Crane Bank entered statutory management to prepare an inventory of Crane Bank’s assets and liabilities and, separately, to conduct a forensic review into Crane Bank.
The inventory indicated that Crane Bank was significantly undercapitalised, while the forensic review identified several issues relating to Crane Bank’s historic management.