dfcu Flags First-Half Loss as London Crane Bank Litigation Drives Up Legal Costs

What the report says

Watchdog Uganda reports that dfcu Limited has warned shareholders and the investing public that it expects to post a loss for the first half of 2026. The company issued the profit warning under Uganda Securities Exchange Listing Rules, saying unaudited results for the six months ending 30 June 2026 are expected to fall into a loss position compared with the same period in 2025.

According to the report, dfcu attributed the projected loss to increased legal expenses linked to ongoing proceedings before the English High Court. The case stems from a 2020 London claim by Crane Bank Limited and some of its shareholders against dfcu Limited, dfcu Bank and other parties, relating to dfcu’s acquisition of certain assets and liabilities after Crane Bank’s collapse and resolution process in Uganda.

The publisher also reported that dfcu sought to reassure investors that its underlying business remains resilient, with management pointing to strong fundamentals in previously published financial results. The warning nevertheless highlights how a long-running legal dispute can affect a listed company’s earnings even where day-to-day banking operations continue.

Watchdog Uganda further said the profit warning follows a procedural ruling in the English High Court in which Deputy High Court Judge Paul Stanley KC declined to allow major parts of dfcu’s proposed defence amendments. The report says the judge allowed dfcu to refer to PwC forensic reports commissioned after Crane Bank was placed under statutory management only for limited purposes, rather than treating their contested conclusions as facts without proof at trial.