Poor investment choices made by dfcu Bank in Uganda are pushing shareholders away, leaving the commercial bank in an enviable state, media reports say.
Without naming the uncomfortable shareholder, Eagle Online Wednesday reported that Dfcu bank’s major shareholder is said to be unhappy with the bank’s business and is interested in detaching from the bank.
Once such bad investment choice is the Shs1.8 billion Dfcu Financial Centre built at Kampala Industrial Business Park in Namanve, Wakiso District. 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 bank reportedly only Shs60 billion in profit despite making an investment of about Shs3trn over the recent years.
Dfcu Bank continues to face scrutiny ever since they took over Crane Bank in 2017 in a manner the public says was dubious. Some shareholder were not happy with the transaction that has put the bank in bad image.
In July 2018, UK’s CDC Group indicated its desire to exit the investment. Other shareholders in Dfcu Bank include Arisse BV, National Social Security Fund Uganda, The Rock Creek Group LP and Old Mutual Investment Group (Pty) Ltd.
Russell Investment Management LLC, Bank of Uganda Staff Retirement Benefit Scheme, Vanderbilt University Foundation, Conrad N. Hilton Foundation and Jubilee Investment Co. Ltd. are the other shareholders.