Durrant Pate/Contributor

Dolla Financial Services Limited is reporting a good half-yearly performance ended June 30, in which total income climbed to J$592 million, an increase of J$293 million or 98 per cent year-on-year.

Net interest income before expected credit losses (ECL) amounted to J$490 million, reflecting a growth of $219 million or 80 per cent year-on-year, driven by loan sales and portfolio expansion. Operating expenses, including ECL totaled J$278 million, marking a J$134 million or 93 per cent year-on-year increase, primarily due to intensified marketing efforts and increased staff capacity.

Earnings per share (EPS) for the six month period amounted to J$0.09, affected by increased income and the significant increase in shares issued from the initial public offering (IPO) when compared to June 2022. Dolla’s efficiency ratio improved to 47 per cent compared to 51 per cent in June 2022.

Loan portfolio and growth

Total loans receivable net of ECL reached J$2.6 billion, representing a substantial increase of J$1.5 billion or 145 per cent year-on-year. Business loans accounted for 81 per cent of the total loan portfolio, while personal loans accounted for the remaining 19 per cent.

Secured loans constituted 80 per cent of the portfolio, with unsecured loans making up the remaining 20per cent. The collateralised loan strategy is a key driver in maintaining the loan portfolio quality.

Non-performing loans (NPLs) increased from 6.6 per cent to 9.3 per cent year-on-year which remained within budgeted expectations and below the sector average.

Liabilities and shareholders’ equity

Total liabilities amounted to J$1.9 billion, reflecting a J$1.4 billion or 258 per cent year-on-year increase, primarily driven by increased debt funding. Loans payable increased to J$1.7 billion due to the J$1.17 billion bond issued in Q4 2022.

Shareholders’ equity stood at J$900 million, marking a J$244 million or 37 per cent year-on-year increase, driven by proceeds from the IPO and improved profitability.

According to the management, “these financial results demonstrate Dolla’s commitment to achieving financial growth, expanding market engagement, and returning value to our shareholders. We will continue to leverage our unique business model and strengthen our loan portfolio while maintaining prudent risk management practices.”