DFCU Bank reports 151% profit surge in 2024

DFCU Bank has reported a 151% increase in profit after tax for the financial year 2024. At the company’s 60th Annual General Meeting (AGM) held on Friday, shareholders also approved a record dividend pay-out. Management told the shareholders that the company posted UGX 72.1 billion in profit after tax in 2024, up from UGX 28.7 billion in 2023. This significant growth also saw earnings per share more than double to UGX96.35, up from UGX38.39 the previous year. As a result of the strong financial performance, DFCU Board of Directors proposed and secured shareholder approval for a final dividend of UGX20.09 per share, representing a 121% increase from just UGX9.10 paid in 2023. The dividend will be paid by August 30, 2025, to shareholders on the book as of August 8, 2025. Jimmy D. Mugerwa, the Chairperson of the Board, attributed the company’s solid results to effective execution of its business strategy and resilience amid changing market conditions. “The results we are reporting reflect the continued execution of a robust strategy and the resilience of our business,” Mugerwa stated. “This dividend demonstrates our commitment to value creation for shareholders and is a vote of confidence in DFCU’s future.” Charles Mudiwa, Chief Executive Officer of DFCU Bank, noted that the bank’s performance was rooted in strong governance and investment in digital transformation. “Our performance is anchored in prudent risk management, strategic investment in innovation and digital infrastructure, and a deep commitment to serving our customers,” said Mudiwa. Other highlights from the 2024 fiscal year include a 9% increase in total assets and improvements in both asset quality and capital adequacy. These gains reflect the bank’s growing financial strength and ability to support lending and economic activity. The bank’s strong rebound has wider implications for the country’s banking industry, which continues to navigate challenges such as inflation, tight monetary conditions, and shifts in consumer behavior. The bank’s success reinforces the importance of digital transformation in modern banking, having invested significantly in technology and customer service, which have contributed significantly to its financial performance. This trend aligns with a broader shift across Uganda’s banking landscape, where digital channels are increasingly becoming central to service delivery and market expansion. The record dividend pay-out is likely to have a positive effect on Uganda’s capital markets. As publicly listed financial institutions increase returns to shareholders, investor interest in banking stocks could grow, adding liquidity to the Uganda Securities Exchange and encouraging broader participation in the financial markets. The bank’s results for 2024 offer a glimpse into what well-executed strategy, digital investment, and customer focus can achieve in Uganda’s evolving banking landscape. As the sector continues its post-pandemic recovery, DFCU’s performance provides a roadmap for growth, stability, and shareholder value creation.
With financial institutions playing a central role in driving economic development, DFCU’s growth story is not only a corporate success but also a positive signal for Uganda’s broader economic prospects.