Dfcu Limited’s profits increased more than 40 per cent in the first six months, but the company, which derives most of its revenue from Dfcu Bank, reported a decline in income.
Dfcu Limited reported a half year net profit of Shs42.4bn, up from Shs29.3bn a year earlier, a jump of 44.6 per cent.
The company benefited from the release of money it had set aside for bad loans as it recorded a negative provision during the period. Dfcu said it released Sh6.9bn in provisions, boosting its bottom line, compared to a loan loss charge of Sh50.1bn a year ago.
Costs were down 27.4 per cent to Shs119.7bn despite operating expenses rising 10.2 per cent, helped by the negative provision for credit losses.
Net revenue fell 14.1 per cent from a year ago to Shs170.6bn, the first half year decline since 2020, and its worst showing for the period since 2018.
The company’s balance sheet showed that net loans and advances fell 12.6 per cent year on year to Shs1tn, continuing a four-year trend.
Customer deposits declined for the first time in three years, down 6.7 per cent.
