Just In: DFCU Mathias Katamba Resigns As CEO
By Uganda Online Media
The Board of Directors of DFCU bank have declined to extend the contract of Chief Executive Officer (CEO) Mathias Katamba, prompting him to resign.
Katamba who joined Dfcu bank from Housing Finance Bank on January 2, 2019, following the departure of Juma Kisaame whose leadership would see the bank involved in the scandalous acquisition of Crane Bank Limited (CBL) in 2017, is said to have registered huge losses for the bank during his tenure, a reason why his prayers for contract extension were not honoured.
Last year, the bank announced that the net profits for the year 2021 had fallen by at least 25%. It was also revealed that in the last financial year, they made a ‘good’ loss of UGX11 billion.
Katamba attributed the losses to the impact of Covid-19 on its customers’ business operations which resulted in an increase in loan provisions.
In its report, the bank reported that impairment losses shot up by 382 per cent from Shs 30.6 bn to Shs 148.3 bn, in 2020. This compelled the profit margins to drop from Shs 24.3 bn to Shs 13.3bn in 2020.
The bank also reported a marginal drop in customer deposits from Shs 2.5 trillion to Shs 2.2 trillion in 2020. The bank further wrote off loans worth Shs 37.5bn, reflecting an approximately 170 per cent rise compared to 2020.
Now, the above results seem to have hugely affected Katamba’s chances of having his contract extended.
