Dfcu Limited has recorded a 51 per cent drop in profitability for the first six months this year, according to its half-year financial results for the period ended June 30, 2022.

The bank reported Shs18.7 billion in net profits after tax compared to 5hs49.9 billion in the corresponding period in 2021, representing a 51% slump in profitability.

During the period, dfcu’s total assets reduced by 1.8% to Shs3.29 trillion compared to Shs3.35 trillion in the first half of 2021 while borrowing increased to Shs28.35 billion up from Shs14.98 billion in the same period last year.

Total comprehensive income dropped to Shs20.219 billion from 5hs43.226 billion.
Total revenues for the period under review increased 5.67% to Shs187 billion from Shs177 billion in the corresponding period.

Operating expenses remained relatively flat at Shs85 billion.

The cost to income ratio, which measures the money a bank spends to make more money, dropped to 45.47% compared to 48.20% previously.

The operating income before impairment improved 16.23% to Shs100 billion from Shs86 billion according to the bank’s half year financials.

As banks continue to be risk-averse due to uncertainties in the economy, dfcu’s loans and advances to customers declined by 16% to close the period at Shs1.4 trillion from Shs1.6 trillion while customer deposits edged up 2.31% to Shs2.4 trillion from Shs2.3 trillion.

The report however, doesn’t indicate whether the directors have recommended interim dividends for the period.