dfcu boosts shareholder dividends despite slower profit growth

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dfcu Group raised its dividend payout to shareholders after posting modest profit growth for 2025, the listed firm's earnings report released on March 30 shows.

The lender proposed a dividend of sh21.8 per share for the year ended December 2025, up from sh20.1 a year earlier. This translates into a total payout of about sh16.3b as it balanced returns with capital retention for future growth.

“In keeping with our promise of delivering returns to our shareholders, we recommend a dividend of sh21.8 per share (sh16.3b), a sh1.7 increase from sh20.1 per share (sh15b) that was paid for the year ended December 31, 2024. This ensures a balance between shareholder returns and future growth opportunities at acceptable risk-adjusted returns,” Jimmy Mugerwa, chairman, board of directors at dfcu, said.

Behind the higher payout, net profit ticked up, though at a slower pace than revenue. Group profit after tax rose to sh74.9b from sh72.1b, while the banking subsidiary posted a stronger sh81.6b, up from sh75.1b. Earnings per share improved to sh100.2 from sh96.4.

Total income climbed 16% to about sh526b, driven largely by interest income from loans and government securities, alongside a sharp rise in foreign exchange and trading income. Non-funded income also gained traction, rising 20% to sh108b.

Interest income from loans alone rose to roughly sh222b, up from sh191b, as the bank expanded lending cautiously. Returns from government securities also increased, suggesting dfcu leaned on relatively safer assets to support income growth amid elevated funding costs.

On the balance sheet, the bank continued to build scale. Customer deposits grew 15% to sh2.7 trillion, providing a stable funding base, while the loan book expanded by about 12% to sh1.2 trillion. Total assets rose 8% to sh3.7 trillion.

But costs kept pressure on the bottom line. Operating expenses rose to sh332b, tracking the bank’s continued investment in technology, digital platforms and operational capacity.

“dfcu remains deliberate about where it chooses to play. Continued focus on agriculture, trade, manufacturing, infrastructure, and SMEs reflects a commitment to sectors that produce, employ, and sustain livelihoods. Supporting these sectors requires capital, presence, understanding, and consistency over time,” Charles Mudiwa, chief executive at dfcu said.