DFCU Bank has warned shareholders to expect a loss in the first half of 2026, citing high legal costs arising from an ongoing court battle in London involving businessman Sudhir Ruparelia, his family and other Crane Bank shareholders.
In a profit warning issued to the Uganda Securities Exchange on July 30, 2026, DFCU said its unaudited results for the six months ended June 30 would show a loss compared with the same period last year.
The bank attributed the expected loss to “high legal costs incurred during the period in connection with ongoing proceedings before the English High Court.”
The case, filed in 2020, pits Crane Bank Limited and some of its shareholders against DFCU Limited, DFCU Bank and other parties.
Although DFCU did not name the individuals involved in its statement, the claimants include Crane Bank shareholders such as Sudhir Ruparelia, his wife Jyotsna Ruparelia and other family members.
The legal battle is the latest chapter in a dispute that dates back to the collapse of Crane Bank in 2016.
How the dispute began
In 2016, Bank of Uganda took over Crane Bank after a forensic audit by PricewaterhouseCoopers found the lender to be severely undercapitalised and raised concerns over large loans involving people connected to its owners.
The following year, Bank of Uganda transferred selected assets and liabilities of Crane Bank to DFCU.
Ruparelia has consistently challenged the takeover and subsequent transfer of the bank’s assets. He has accused DFCU and officials at Bank of Uganda of colluding to strip Crane Bank of its assets at a fraction of their value.
DFCU and the other parties have disputed the allegations.
In 2020, Ruparelia and his co-claimants filed proceedings in London seeking damages reported to exceed Shs840 billion, equivalent to about £170 million at the time.
The claim alleges, among other things, conspiracy to injure by unlawful means and that DFCU benefited from assets transferred in breach of fiduciary duties.
Case returns to London trial
A UK judge dismissed the case in 2022 on jurisdictional grounds. Ruparelia and the other claimants appealed the decision.
In July 2023, the Court of Appeal reinstated the case, finding that there were serious issues to be tried under Ugandan law.
The matter is now scheduled for a full trial before the English High Court beginning in October 2026. The proceedings are expected to last about three months.
The legal battle has nevertheless come at a significant cost to DFCU.
Despite the expected first-half loss, the bank sought to reassure shareholders that its underlying financial position remains strong.
“The group remains resilient with its key fundamentals strong and on a sustained upward trajectory as indicated in the published financial results,” DFCU said.
The bank was profitable in the previous year, reporting a net profit of Shs74.9 billion.
The first-half 2026 loss therefore comes against a backdrop of recent profitability, with DFCU attributing the latest setback primarily to the substantial legal expenses associated with the London proceedings.
