By Joseph muyingo
KAMPALA, UGANDA: dfcu Bank’s latest financial update has revealed a sharp contrast between the lender’s growing core business and the heavy costs arising from its long-running legal battle over the acquisition of selected assets and liabilities of Crane Bank.
Although the bank expects to record a Shs15.8 billion net loss for the six months ended June 30, 2026, its underlying operations continued to expand, with deposits, lending, assets and operating income all recording growth.
Customer deposits increased by Shs410 billion to Shs2.87 trillion, while the bank’s gross loan book rose to Shs1.44 trillion.
Total assets also climbed to Shs3.94 trillion, pointing to continued expansion of the lender’s balance sheet despite pressure on profitability.
Operating income grew by eight per cent to Shs215.6 billion, suggesting that dfcu’s core banking activities remained relatively strong during the period.
However, the gains were outweighed by a substantial rise in operating expenses, which increased by 53 per cent to Shs230 billion.
dfcu attributed the sharp increase largely to legal costs associated with the ongoing Crane Bank litigation before the Commercial Court in London.
The lender expects to report a pre-tax loss of Shs26.3 billion, compared with a pre-tax profit of Shs39.7 billion recorded in the first half of 2025. Net profit is projected to reverse from Shs34.5 billion last year to a loss of Shs15.8 billion.
The figures highlight the difference between dfcu’s operating performance and the financial impact of exceptional costs linked to the nearly decade-long Crane Bank dispute.
The legal battle dates back to 2017, when dfcu acquired selected assets and liabilities of Crane Bank following the intervention of the Bank of Uganda.
Former Crane Bank majority shareholder Sudhir Ruparelia has challenged the transaction and is pursuing claims in the United Kingdom, while dfcu maintains that the acquisition was conducted lawfully and in accordance with Uganda’s banking regulations.
The financial burden associated with the dispute has increased in recent years. dfcu reported spending Shs76.6 billion on legal expenses related to the Crane Bank matter in 2025, compared with Shs42.3 billion in 2024.
With the London proceedings continuing, legal expenses could remain a major factor influencing the bank’s financial performance.
Nevertheless, the growth in deposits, loans and operating income provides a contrasting picture of a bank whose core business continues to expand even as litigation costs weigh heavily on its bottom line.
The outcome of the London case could therefore become an important turning point—not only for dfcu’s future earnings, but also for the broader financial and legal debate surrounding the resolution of Crane Bank nearly ten years after its collapse.
