dfcu Bank: It’s Fake News, We are Not Searching for a New Board Chairman

dfcu Bank has rubbished as “false” and “fabricated news”, claims that the financial institution was searching for a new board chairperson.

The bank’s board of directors is headed by Jimmy Mugerwa.

“dfcu bank would like to urge the general public to disregard the false news circulating on some online news platforms that the Bank is purportedly searching for a new Chairman, and other fabricated news by malicious people who have resorted to attacking the Bank,” the institution said in a statement seen by ChimpReports on Monday.

It came against the backdrop of widely circulated fake online rumours about the operations of the second largest bank in Uganda.

The bank has, since the takeover of Crane Bank in 2017, come under a targeted mudslinging campaign.

However, dfcu said it remained resilient in the wake of a propaganda campaign against its leaders and internal operations.

“The Board of Directors is confident that under the strong leadership of its current Chairman, Jimmy D. Mugerwa, the Bank is on track to meet its long-term strategic objectives,” said the institution.

The Bank of Uganda (BoU) annual report released last week indicated that the Banking Sector remained in a sound financial condition, and was well capitalized with all Banks meeting the minimum capital adequacy requirements.

“Asset Quality of the Banking Sector continued to improve with the ratio of Non-Performing Loans and Advances (NPLs) to Gross Loans and Advances declining to 3.8 percent as at June 30, 2019 from 4.4 percent as at June 30, 2018,” said Governor Tumusiime Mutebile.

The BoU report showed that in the year to June 2019, the banking sector’s resilience to systemic shocks improved, supported by continued recovery in lending activity and asset quality, and coupled with increased capital and liquidity buffers

Assessment of performance of Domestic Systemically Important Banks (D-SIBs) which include Dfcu bank showed that they were adequately capitalized, possessed sufficient liquidity buffers; profit making; and accounted for 50.8 percent of total banking sector assets at the end of June 2019.

Quarterly Stress tests conducted on the banking sector at the end of June 2019 showed that on aggregate, most banks (and all D-SIBs), had sufficient capital and liquidity buffers to absorb any sudden shocks to the system.

Dfcu told customers, stakeholders and the general public that the Bank “continues to focus on its mandate of making more possible for Ugandans through the provision of superior financial services that transform the economy and enhance the well-being of the people.”