dfcu profit drops 19% as higher costs, loan impairment weigh on earnings

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dfcu Limited’s profit for the six months to June 2025 fell to sh34.5b, a 19% drop from sh42.4b in the same period last year, as operating expenses and loan impairment charges increased.

Net income rose 17% to sh199.6b from sh170.6b a year earlier, supported by higher interest income. According to the interim results, the board did not recommend an interim dividend for shareholders.

However, operating expenses climbed to sh150.4b from sh126.6b, while the bank booked a sh9.5b allowance for impairment of loans and advances compared with a sh6.9b write back last year.

The combination of higher costs and provisioning cut profit before tax to sh39.7b, down from sh50.9b in the first half of 2024. Earnings per share fell to sh46.18 from sh56.69.

dfcu’s total assets grew 12% year on year to sh3.53 trillion, driven by growth in customer loans and liquid assets. Customer deposits stood at sh2.46 trillion, up from sh2.32 trillion in June 2024.