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dfcu Bank eyes regional market

By Vision Reporter

Added 2nd May 2010 03:00 AM

THE dfcu Bank is finalising plans to extend its services to the East African region. After last week’s declaration of a 47% increase in profits, the bank said regional integration would provide a platform for it to venture into the Kenyan, Tanzanian, Rwanda and Burundi markets.

THE dfcu Bank is finalising plans to extend its services to the East African region. After last week’s declaration of a 47% increase in profits, the bank said regional integration would provide a platform for it to venture into the Kenyan, Tanzanian, Rwanda and Burundi markets.

By Emojong Osere

THE dfcu Bank is finalising plans to extend its services to the East African region.

After last week’s declaration of a 47% increase in profits, the bank said regional integration would provide a platform for it to venture into the Kenyan, Tanzanian, Rwanda and Burundi markets.

“We are looking at all alternatives for our entry into the regional market,” Sam Kibuuka, the chairman disclosed during the annual general meeting at the Sheraton Kampala Hotel over the weekend.

If the plan is successfully rolled out, the regional investment would make dfcu the first local bank to run business in the region.

“The world is becoming a global village and our clients are crossing boarders everyday. Investing in the regional market is one of our current key considerations,” Juma Kisaame, the managing director, said. The bank declared a sh7.7b or 40% of last year’s profits as dividends during its 45th annual general meeting, reflecting a 47% increase from the sh5.25b paid out in 2008.

The bank reported an impressive 47% profit growth, from sh13.14b in 2008 to sh19.28b in 2009 as a result of good performance in customer deposits, assets and revenue growth.

Customer deposits grew by 36% from sh255b to sh347b, while lending grew by 15%, from sh283b in 2008 to sh326b in 2009.

There was equally a 23% growth in total assets, from sh496b in 2008 to sh612b in 2009.

Shareholders’ funds grew by 22%, from sh63b to sh76b. This represented a 47% growth in shareholders earnings, from sh21.13 per share to sh31.02.

The dfcu good performance and the dividend announcements has pushed the demand for its shares and price up.

dfcu shares that traded at sh620 before the results were announced in February, surged to sh706, representing a 13.8% increase.

dfcu Bank eyes regional market

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