Crane Bank – Dfcu Marriage: Directors and Management Reveal the Merger Success so far

BOD Director Dr. Elly Karuhanga

KAMPALA, Uganda: After enduring a difficult two years as a bank, dfcu is set to emerge as the leading bank in the country, the Investigator has established.

Describing the banks’ latest acquisition of former Crane Bank owned by property Mogul Sudhir Rupareila as a “Quantum Leap”, the dfcu board chair Elly Karuhanga said the bank had through its transformation program processed Ush7 trillion worth of customer transactions during the year.

Karuhanga says the bank registered a 28% growth in after tax profit on the back of strong interest income arising from loans. At a macro level dfcu provided incomes of over Ush91.6 billion to suppliers and Ush15.7 billion in total tax payments.

Though dfcu bank has not yet come out clear to state how much was involved in acquiring the assets and liabilities of the former Crane Bank in receivership, The Investigator has established that the deal was in the tune of US dollars 50 million (Ushs175b).

Addressing the shareholders at the bank’s Annual General Meeting held at the Kampala Sheraton Hotel on Thursday, Elly Karuhanga revealed that the tireless efforts of both the Board and Management have yielded a smooth integration of more than 500,000 customers into the dfcu family.

“This acquisition was no mean fit and compliments our strategy of becoming a significant player in the retail banking space,” said Karuhanga. The dfcu capital base, we have established was made sound allowing the acquisition of Crane Bank following the merger of two of its major shareholders- Norfinance and Rabo Development together with FMO (Nederlandse Financiering. Maatschappij voor ontwikkelingslanden N.V).

These combined their resources into a new company, ARISE B.V. with assets worth US dollars 600 million with operations in over 20 countries in Africa. The objective of ARISE B.V is to strengthen the financial service providers. “As part of this commitment, ARISE extended a bridging financing facility of US dollars 50 million which enabled dfcu strengthen the capital base of its subsidiary dfcu bank,” said Karuhanga.

He however noted that the ability to realize the full potential however, is greatly dependent on the supporting environment. “Stable and well-communicated policy settings are necessary to ensure that businesses have confidence to invest for growth,” said Karuhanga.

Snapshots on dfcu limited

  • dfcu was established 1964
  • In 1999 bought Uganda Leasing Company and renamed dfcu Leasing
  • 2000 Bought Gold Trust Bank, renamed it dfcu Bank and started commercial banking
  • 2004 dfcu Limited was listed on the Uganda Securities Exchange
  • Has a network of over 420 ATMs country wide with over 60 branches
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Patrick Jaramogi is a trained Crime, Financial and Fraud investigative journalist. He is a senior writer and Editor at the Investigator. He can be reached via email: [email protected] or watsup +256772426211​​​