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dfcu Bank to pay out sh7b

By Vision Reporter

Added 29th April 2010 03:00 AM

THE dfcu Bank is expected to declare a sh7.7b or 40% of last year’s profits as dividends during its 45th annual general meeting today.

THE dfcu Bank is expected to declare a sh7.7b or 40% of last year’s profits as dividends during its 45th annual general meeting today.

By Vision Reporter

THE dfcu Bank is expected to declare a sh7.7b or 40% of last year’s profits as dividends during its 45th annual general meeting today.

This is a 47% increase from the sh5.25b paid out in 2008.

“Our excellent performance in 2009 provides immediate financial benefits to shareholders in the form of; a proposed dividend payout of 40% of the profits after tax and increased shareholder value due to appreciation in the share price of their stocks,” said Juma Kisaame, the managing director.

dfcu reported an impressive 47% growth in profits, from sh13.14b in 2008 to sh19.28b in 2009 as a result of the bank’s good performance in key business fundamentals such as 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 also 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, giving them a good return on investment.

News of the dfcu good performance and the consequent strong dividend announcements has also caused excitement on the bourse, with demand for shares and its price going up.

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

dfcu Bank to pay out sh7b

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