By Maria Mariam Namala
KAMPALA. Dfcu Limited said its three-year strategy to rebuild its core business had entered a new growth phase after the bank reported a 4 percent rise in profit.
The bank also recorded a 16 percent growth in operating income and increased its dividend payout to shareholders for 2025.
The bank’s board proposed a dividend of Shs21.81 per share, up from Shs20.09 in 2024, after the group recorded profit after tax of Shs74.9 billion for the year ended December 2025.
Managing Director and Chief Executive Officer of Dfcu Bank, Charles Mudiwa, said the results showed that the lender had moved beyond restructuring and was now focused on expanding business.
“Our strategy to rebuild the core has begun to yield clear measurable outcomes,” Mudiwa said. “In 2025 we transitioned into a phase of execution and growth.”
He said the bank had shifted from previous years of holding large positions in government securities to increasing lending to customers and businesses
Customer loans grew 12 percent to Shs1.265 trillion, while customer deposits increased 15 percent to Shs2.71 trillion. Total assets rose 8 percent to Shs3.7 trillion.
Mudiwa said customer growth was supported by increased lending, digital expansion and improved service delivery, with the bank recording a 12 percent increase in customers, a 25 percent rise in borrowers, and a 63 percent increase in new SME loans.
“We didn’t just chase growth in the year but we rebuilt the foundation for the next 60 years,” he said.
Chief Financial Officer Rebecca Birungi said the performance was driven by growth in both lending income and non-funded revenue, including fees, commissions, trade finance and foreign exchange.
“The group closed the year with a profit after tax of Shs 74.9 billion, representing a 4 percent year-on-year growth,” Birungi said.
She said improved earnings allowed the bank to increase shareholder returns, with earnings per share rising to Shs100.24 and total dividend payments reaching Shs16.3 billion.
Board Chairman Jimmy Mugerwa said Dfcu share price rose 34% during 2025 to close the year at Shs301 per share, outperforming the Uganda Securities Exchange Local Share Index, which gained 24.5percent.
He said the performance reflected renewed investor confidence in Dfcu’s long-term value proposition.
However, Mugerwa said higher legal costs affected the group’s expenses during the year due to an ongoing London lawsuit linked to the Crane Bank transaction.
“We have previously informed you, our shareholders, of the suit that was instituted against Dfcu in London concerning the Crane Bank transaction,” he said.
Mugerwa said the bank had hired experienced foreign lawyers to defend the case and maintained that the claim had no merit.
“Dfcu has consistently maintained that the claim is without merit and will continue to vigorously defend the claim,” he said.
Mudiwa said the bank expected the matter to eventually be resolved through the legal processes.
“We believe that issue is being managed and we continue to manage it,” he said.
Meanwhile, Dfcu Limited Chief Executive Officer Sophie Achak said the bank was positioning itself for future growth by investing in technology, artificial intelligence, staff capability and compliance as Uganda’s economy expands.
She said growing private sector credit demand, improved economic conditions and developments in the oil sector provided opportunities for the banking sector.
“We see growing credit demand,” Achak said, adding that increased regulation would require stronger focus on risk management and compliance.