dfcu bank pays Shs100 billion in taxes to gov’t

In a significant financial achievement, dfcu Bank has successfully paid a substantial sum of 100 billion Ugandan Shillings in taxes to the government.

This accomplishment underscores the bank’s robust financial performance and commitment to fulfilling its fiscal responsibilities. The payment, which covers various tax obligations, reflects the bank’s growing profitability and strategic financial management.

This substantial tax contribution by dfcu Bank not only highlights its role as a major player in Uganda’s banking sector but also its integral part in supporting the national economy.

The funds collected from taxes are crucial for the government, aiding in the implementation of essential public services and development projects.

During this year’s annual general meeting, the chairman board of directors dfcu bank Jimmy Mugerwa also explained that dfcu Bank Limited achieved another milestone, by raising its share capital to the new statutory limit of UGX 150Billion

This was well in advance of the June 2024 deadline and without calling on its shareholders for additional capital.

“We are proud to uphold our strong tradition of shareholder returns, proposing a dividend of UGX 9.10 per share for 2023. This represents a 2.1% increase from the UGX 8.91 per share distributed in 2022, underscoring our unwavering commitment to enhancing shareholder value.” He added.

He further highlighted that the bank has embarked on a bold new strategic plan, which is centred around sector specialisation, fostering client relationships, harnessing cutting edge technology, cultivating a high-performance culture, and maintaining a commitment to sustainability.

The bank has already witnessed positive impact of this strategic shift, with significant enhancements in customer service across the group.

Despite certain challenges, Mugerwa noted that, “The group took deliberate steps to taper down activity in the affected sectors, while growing our investment in Government securities portfolio by 4%. Through a 6% reduction in impairment of loans and advances to customers and a 4% uplift in operating income, we delivered a net profit after tax of UGX 28.7Billion”

Presenting the strategy of the bank and where it is as of date, dfcu’s Charles M. Mudiwa the Managing Director dfcu Bank Limited, stressed that during the year, they refreshed a strategy to adapt to the dynamic shifts in operating environment and ambitions of shareholders.

He added that the refreshed strategy anchors on a rallying call, ‘Fired-Up,’ which galvanizes all efforts towards achieving the purpose of “Transforming lives and businesses in Uganda.

“The strategy refresh seeks to reaffirm our purpose and institutional goal, clarify where we play and how we shall win, define our digital and technology priorities, and show the value drivers that will enable us to achieve improved financial performance and social, economic and environmental impact.” He explained.

The strategy of the bank is meant to position dfcu Bank Limited as the financial institution of choice for Ugandan businesses.

During the same annual general meeting, Jimmy D. Mugerwa and Dr. Aminah Zawedde the permanent secretary ministry of finance, were both re-elected into their positions of chairman board of directors dfcu bank and Non-Executive Director respectively.

dfcu Limited was started by the Commonwealth Development Corporation (CDC) of the United Kingdom and the Government of Uganda through the Uganda Development Corporation (UDC) under the name of Development Finance Company of Uganda Limited.

Subsequent restructuring saw International Finance Corporation (IFC) and the German Development Corporation (DEG) invest resulting in an equal stake of 25% for the shareholders.