Dfcu CEO Katamba Quits As Directors Refuse To Extend His Contract

Dfcu CEO Katamba Quits As Directors Refuse To Extend His Contract

By Spy Uganda

Exit gates have been wide opened for Dfcu Bank’s Chief Executive Officer (CEO), Mathias Katamba after the Board of Directors declined to extend his contract-TheSpy Uganda reports.

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 his prayers for contract extension were not honored.

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, like any other street smart boy 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 percent from Shs 30.6 billion to Shs 148.3 billion, in 2020. This compelled the profit margins to drop from Shs 24.3 billion to Shs 13.3billion 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 percent rise compared to 2020.

Now, the above results seem to have hugely affected Katamba’s chances of having his contract extended. Our spy with in the Bank confirmed that the board of directors have unanimously agreed to let him go in good faith so they start up afresh. Watch the space…

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