DFCU bank’s major INVESTOR ponders ‘jumping ship’

By DailyNewsUG Business Correspondent

DAILYNEWS UG |Kampala, Uganda| A DFCU Bank key investor and shareholder is apparently displeased and disappointed with the current business situation at Dfcu Uganda. This is according to information reaching our news desk from an impeccable source.

This Global investor is unsettled and debating on pulling the plug on DFCU Bank and ‘jumping ship’.

This stems from the fact that the Bank has of recent made only Shs60 billion in profit despite making an investment of about Ugx 3 trillion Shillings over a few years.

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Above: Recent DFCU Management shake up. Mr. Juma Kisaame was replaced by HFBs Matthias Katamba 

It is known by insiders that the Banks Shareholders are despondent and dejected about overall bank performance.

Two solid DFCU Customers have jumped ship and crossed over top Patrick Mweheire’s Stanbic Bank. This has left the Bank Relationship Managers scampering all across the country in a big to ensnare and maintain the current portfolio it is existing Customers.

In January 2017 Dfcu bank acquired Crane Bank Limited at Sh200 billions paid in installments from Shs500 billion bad book of the latter. Some shareholder were not happy with the transaction that has put the bank in bad image.

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Above: Crane Bank takeover continues to be a thorn in DFCUs flesh 

According to highly placed sources at the bank, the Shs1.8 billion Dfcu Financial Centre built at Namanve is one of the projects that have caused the bank financial loss. The building continues to eat into the bank’s finances in terms of security, power and other costs even though the bank is not gaining from it.

The source further said most top managers who resigned took away big clients of the bank and linked them to Dfcu’s competitors.

As of July 2018, UK’s CDC Group indicated its desire to exit the DFCU shareholding outlay.

The shareholding

  1. Arise BV -58.7 per cent
  2. CDC Capital Partners Ltd.
  3. National Social Security Fund Uganda
  4. The Rock Creek Group LP-
  5. Old Mutual Investment Group (Pty) Ltd.
  6. Russell Investment Management LLC
  7. Uganda Bank of Staff Retirement Benefit Scheme
  8. Vanderbilt University Foundation
  9. Conrad N. Hilton Foundation
  10. Jubilee Investment Co. Ltd.

Financial analysts say this development will most likely affect DFCU’s core capital and it will further complicate DFCU’s legal status as the bank is still struggling with a buttress of court cases which arose out of out of Bank of Uganda’s decision to close several banks such as Crane Bank and National Bank of Commerce among others.
Grigorenko, said it was “undertaking a review of its investment in DFCU Limited which may lead to the disposal or some of some or all of its shares in DFCU over the short to medium term.”

DFCU is accused of conniving with some top Bank of Uganda executives to takeover Crane Bank at a throw away price and this has resulted into legal battles as CBL shareholders insist that the transaction wasn’t transparent.

More to this developing update will be shared as DailyNewsUG gets progression to this story. 

 

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