DFCU’s pre-tax profit fall 67.8 percent in 2021

KAMPALA – Business for DFCU was mild last year as the institution’s gross profit curve fell by a hefty 67.8 percent, blamed on rolling lockdowns brought on by the global pandemic, the bank said.

In a report, the lender said their profits for calendar 2021 came crashing to only Shs 10 billion, from Shs 32.6 bln the year before.

“In our opinion, the accompanying financial statements are consistent, in all material respects, with the audited financial statements in accordance with the Financial Institutions Regulations,” the bank’s auditors, global group Ernst & Young said in remarks to the report.

Today was the deadline for all of Uganda’s commercial banks to report for the financial year that ended on December 31, 2021.

DFCU’s customer deposits fell mildly to Shs 2.3 trillion for the period under review, from Shs 2.6 trn in 2020.

Non-performing loans rose sharply to Shs 274 bln – nearly double the Shs 94 bln seen in 2020.

Bad loans written off also went up to reach Shs 37.6bln in 2021, almost three times 2021’s Shs 14 bln.


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Bank for dairy farmers; health insurance for co-ops to be launched in India

INDIA– Union Cooperation and Home Minister Amit Shah will inaugurate the mega cooperative event tomorrow April 1, 2022 at Palace Grounds, Bangalore. During the conclave, he will launch the Logo of Nandini Ksheera Abhivrudhi Bank.

A novel concept to boost the income of dairy farmers, Ksheera Abhivrudhi Bank has an allocation of Rs 100 crore made in the budget. The order in this regard would be issued soon, said the Chief Minister interacting with the media.

It will be Shah’s first co-op event in Karnataka after becoming the Union Cooperation Minister. The program is being organized by the Cooperative Department in collaboration with many apex co-op bodies of the state.

Over 9,000 co-operative leaders are likely to participate in the event. The short documentary on the growth of the cooperative movement in India and Karnataka will be shown on the occasion.

Besides Shah, Union Finance Minister Nirmala Sitharaman, MoS Shobha Karandlaje, Karnataka Chief Minister Basavaraj Bommai, Cooperation Minister S T Somashekar, Agriculture Minister B. C. Patil, Minister for Parliament Affairs Pralhad Joshi, Ex-CM Siddaramaiah and other cabinet rank ministers will grace the occasion. Many local cooperators representing different apex cooperative bodies of the State will attend the event.

Besides the Ksheer Abhivridhi Bank scheme, Shah would relaunch Yashaswini, the health insurance scheme for members of cooperative societies.

Karnataka Chief Minister Bommai said, “Shah is working for reforms in the cooperative sector, will be visiting the state to attend a large meeting related to ‘Ksheerabhivruddi bank’ that we are planning to launch, aimed at giving a financial boost to the dairy sector that will increase farmers income and provide them financial support.

“Milk Cooperative Societies in the State have annual revenue of Rs 36,000 crores. The State government has decided to establish a Milk Producers Bank with an intention to ensure that the profit goes to milk producers”, The CM was speaking at the ‘Sahakara Ratna’ award ceremony organized by Karnataka State Cooperative Federation Limited recently.

Meanwhile, opposition leaders have charged that it is less of a co-op event and more of a political one. “This is a bid to reach out to the voters through cooperatives for the upcoming elections of Karnataka”, they felt. It bears recall that cooperatives have a strong presence at the village level in Karnataka.

Readers would recall that a few days back, Shah participated in the mega co-operative event in the Surat district of Gujarat, which drew a huge crowd of co-operators.

There are 42,551 Co-operatives under the control of the Registrar of Co-operative Societies in the state, of which 37,532 are functional.

Source: Agencies


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Stanbic bank profit up 12 percent

KAMPALA-Uganda’s biggest bank by assets Stanbic saw its profit before tax rise 12 percent to Shs 359.6 billion in calendar 2021, up from Shs 320.7 bln previously.

The lender said in a report published in newspapers customer deposits were up mildly to Shs 5.7 trillion from Shs 5.5 trillion in 2020 – a five percent rise.

The season is now for banks to report for the financial year just ended. Ugandan banks report for the calendar year that ends on December 31. The deadline is all the country’s 25 commercial banks must report by April 30.

Stanbic wrote off bad debts worth Shs 63 bln in 2021, up by 31 percent from the Shs 48 bln written off in 2020.

“In a year that saw the economy slow down significantly due to effects of the Covid-19 pandemic, we played our part, making credit available to critical drivers of growth hence supporting businesses create new employment opportunities and keep Ugandans in their jobs,” the bank’s Chief Executive, Anne Juuko said in a statement.

They saw a marked reduction in non-performing loans. These came down to Shs 151.2 bln in 2021 from Shs 219 bln the year before.

The bank said it lent out Shs 3.7 trn in 2021, slightly better than the Shs 3.6 trn taken by borrowers in 2020.

In a direct boost to the economy, the bank said it had lent Shs 290 bln to the trade sector; Shs 225 bln to households; Shs 223 bln to building and construction, while Shs 218 bln went to the manufacturing sector.

Agriculture, which employs more than 60 percent of the rural population and contributes more than 25 percent of the country’s economy got Shs 150 bln from Stanbic, as rural cooperatives sought cash to lend to their members at low rates.

Transport and communication got Shs 122 bln as the country finally reopened its economy after two rolling lockdowns.

Assets at Stanbic, which was once state-owned before being finally sold to South Africa-based Standard Group, grew to reach Shs 8.7 trn in 2021, up slightly from 2020’s Shs 8.6 trn.

The bank expects to perform even better in the current year.

“Looking ahead, 2022 presents a mixed bag of expectations especially on the external front mostly informed by the Russia-Ukraine conflict and rising fuel prices. However, prospects are brightening with more countries across the globe opening up their economies as the pandemic subsides,” Stanbic Uganda Holding Chief Executive Officer Andrew Mashanda said in printed remarks accompanying the report.


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