dfcu Bank Projects Sh26.3 Billion Pre-Tax Loss

What the report says

dfcu Bank has projected a pre-tax loss of Sh26.3 billion for the first half of 2026, according to unaudited results reported by Watchdog Uganda in Kampala. The figure reflects continued pressure from higher operating costs and larger loan impairment charges, even as the lender recorded growth in deposits, lending and total assets.

The bank’s projected loss is smaller than the Sh39.7 billion pre-tax loss it reported for the same period a year earlier. After an expected income tax credit of Sh10.5 billion, dfcu said it would post a net loss after tax of Sh15.8 billion. The results suggest that business volume is expanding, but profitability remains under strain.

Customer deposits rose to Sh2.87 trillion from Sh2.46 trillion a year earlier, while loans and advances increased 21% to Sh1.44 trillion. At the same time, the bank set aside Sh11.8 billion for loan impairments and its operating expenses climbed to Sh230 billion from Sh150.4 billion. Its total assets reached Sh3.94 trillion, and shareholders’ equity stood at Sh755.4 billion.

dfcu Chief Executive Officer Charles Mudiwa said the bank remains well-capitalised and liquid enough to support customers and the wider economy. More broadly, the results show a lender balancing growth in its core business with the challenge of restoring earnings in a difficult operating environment.