Dfcu Limited has issued a cautionary announcement warning shareholders and potential investors to exercise caution while trading in the company’s shares. This follows a decline in net profit exceeding 25% in the year ending 2021.
“The decline was occasioned by an increase in loan provisions made by the Company as a result of the impact of Covid-19 on its business customers,” a statement issued by Ligomarc Advocates on behalf of the Dfcu board reads part.
The profit decline is also blamed on the effects of the 2017 Crane Bank takeover as the announcement also blames “the impairment of some loans and advances that formed part of the financial asset (Crane Bank) acquired by the company in 2017.”
The detailed financial statements are yet to be published but Dfcu promises to publish them within “the statutory timeline.”
The statement however says that despite the profit decline, Dfcu remains robust and adequately capitalized.