DFCU Limited DFCU Limited Extract of Financial Statements for the year Extract of Financial Statements for the year ENDED 31 DECEMBER 2010 ENDED 31 DECEMBER 2010

Consolidated income statement Consolidated statement of financial position Consolidated statement of cashflows dfcu Group 2010 business operations and results overview

2010 2009 2010 2009 2010 2009 A key achievement in 2010 has been the successful migration to a new core banking platform which Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M will significantly enhance operational efficiency and also enable the to deliver innovative solutions to its customers. The bank will leverage on this investment to diversify its service delivery channels Cashflow from operation activities and reach out to the unbanked market segments cost effectively. Net interest income 60,275 51,938 Assets Interest receipts 87,976 78,856 During the year, we added two branches to our network, one in , , and another in Fee and commission and other income 13,615 11,050 Interest payments (29,219) (22,398) the newly formed district of Abim, bringing our total branch network to 26. Our Lugogo branch will Operating income 73,890 62,988 Cash and Balances due from 150,111 109,690 Net fee and commission receipts 9,846 7,530 open in March 2011. Government and other Securities 218,767 152,881 Net trading and other income received 4,293 4,655 Highlights of the Group’s 2010 performance include: Operating expenses (41,916) (35,452) Loans and Advances to Customers 397,338 326,299 Cash payments to employees and suppliers (39,337) (30,414) Growth in customer deposits by 37% to UGX 476B ( 2009 = UGX 347B) Impairment Losses on Loans and Advances (2,629) (4,694) Other Assets 21,697 9,521 Income tax paid (3,981) (3,612) Growth in total assets by 31% to UGX 802B (2009 = UGX 612B) Growth in lending assets by 22% to UGX 397B (2009 = UGX 326B) Gain on disposal of investment 500 - Property and Equipment 14,467 13,430 Growth in Profit before tax by 28% to UGX 29.3B (2009 = UGX 22.8B) Profit before income tax 29,345 22,842 Total assets 802,380 611,821 Write down of investment’ (191) - Growth in Shareholders funds by 20% to UGX 91B (2009 = UGX 76B)

Cashflow from operating activities before changes in 29,887 34,617 The Board proposes a dividend of UGX 9.2B (2009 = UGX 7.7B) representing an increase of 20%. Income tax expense (6,289) (3,562) Liabilities operating assets and liabilites Profit for the year 23,056 19,280 As we look to the future, we will continue to focus on offering excellent customer service, harnessing Changes in operating assets and liabilites (12,109) (2,053) technological advances to expand our delivery channel mix, enhancing risk management and continue Customer deposits 475,573 346,638 to invest in our people. Other comprehensive income (249) (81) Balances due to banks 10,633 - Net cashflow from operating activities 17,778 32,564 On behalf of the Management and Board, it is our pleasure to thank our loyal customers, the Other Liabilities 225,572 188,612 Net cash used in investing activities (15,929) (6,275) regulators, our highly dedicated staff and all our stakeholders for their contribution towards our 2010 Total comprehensive income 22,807 19,199 Total liabilities 711,778 535,250 performance and for continuing to support our growth. Net cash from financing activities 40,751 3,176 Net (decrease) / increase in cash and cash The 2010 performance represents a solid return to our shareholders with earnings per share up by Cost income ratio 57% 56% Shareholders’ equity 90,602 76,571 equivalents 42,600 29,465 20%. The Board is recommending a dividend of UGX 37.10 per share (2009 = UGX 31.02). The Shareholders’ Register will be closed on 30th April 2011 with respect to the entitlement to this Earnings per share 92.74 77.55 Cash and cash equivalents at 1January 2010 106,445 76,980 dividend which will be paid by 30th June 2011. The Annual General Meeting will be held on 6th May Proposed dividends per share 37.10 31.02 Total Shareholder’s equity and liabilities 802,380 611,821 Cash and cash equivalents at 31 December 2010 149,045 106,445 2011 at Sheraton Hotel Kampala at 10.00am.

The financial statements were approved for issue by the Board of Directors of dfcu Limited onthe 23rd February 2011 and were audited by Ernst & Young, who issued an unqualified opinion. DFCU Limited Extract of Financial Statements for the year Ended 31 December 2010 Sam Kibuuka (Chairman Board of Directors)) Dr. William Kalema (Director)

Consolidated statement of changes in Equity Non - DFCU BANK Limited Share Share Revaluation Distributable distributable Currency Regulatory Proposed Minority Capital premium Reserves Reserves Reserves Translation Reserve Dividend Interest Total EXTRACT OF FINANCIAL STATEMENTS FOR THE YEAR Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M ENDED 31 DECEMBER 2010 Year ended 31 December 2010 Income Statement Statement of Financial Position At 1 January 2010, as previously reported 4,972 2,878 135 42,850 12,113 252 4,576 7,712 1,083 76,571 2010 2009 2010 2009

Cumulative fair value gains on available-for sale investment realized 0 Shs ‘ M Shs ‘ M Shs ‘ M Shs ‘ M

Write down of MI investment in subsidiary (RPL) (1,064) (1,064) Net interest income 59,378 50,616 Assets Cash and other liquid assets 151,206 111,204 Deferred tax effect on fair value gains 0 Fee and commission income 13,172 10,809 Investment securities 218,767 152,881 Good will reserve realized 0 Operating income 72,550 61,425 Advances to customers 393,846 323,587 Currency translation reserve realized (249) (249) Other assets 11,690 7,085 Operating expenses (41,950) (34,612) Amount recognised directly in equity 0 Property and Equipment 13,335 13,243 Impairment Losses (2,776) (3,049) 0 Intangible asset 9,112 - Total assets 797,956 608,000 Profit for the year 23,056 23,056 Profit before income tax 27,824 23,764 0 Liabilities Total recognised income for the year 0 0 0 23,056 0 (249) 0 0 (1,064) 21,743 Income tax expense (5,921) (3,739) Customer deposits 475,573 346,638 Profit for the year 21,903 20,025 0 Balances due to banks 10,633 - Other liabilities 230,708 193,123 Cumulative fair value loss on investment property realized 0 Other comprehensive income - - Total liabilities 716,914 539,761 Transfer to regulatory reserve 2,297 (2,297) 0

Dividends paid by subsidiary 0 Total comprehensive income 21,903 20,025 Shareholders’ equity 81,042 68,239

Dividend Paid (7,712) (7,712) Total Shareholder’s equity and liabilities 797,956 608,000 Dividend proposed (9,222) 9,222 0

rd 0 The financial statements were approved for issue by the Board of Directors of dfcu Bank Limited on 23 February 2011 and were audited by Ernst & Young, who issued an unqualified opinion. 0

At 31 December 2010 4,972 2,878 135 58,981 12,113 3 2,279 9,222 19 90,602 Juma Kisaame (Managing Director) Bill Irwin (Chairman Board of Directors)