Durrant Pate/Contributor

Dolla Financial Services Limited has been managing its risk effectively, resulting in the micro financer growing its income to J$365 million for the quarter ended March 31.

This represents a year-on-year increase of J$71 million or 24 per cent and is partially credited to the efforts of its sales team, notably those at its ULTRA subsidiary, which contributed 37 per cent to the consolidated income. Net interest income before expected credit losses stood at J$304 million, showcasing a growth of J$56 million or 22 per cent year-over-year. 

The growth was tempered by a J$19 million or 14 per cent increase in operating expenses to J$152 million. The increase in expenses comes as a result of continuous investments in staff capacity to manage the influx of demand, regulatory and professional fees, and intensified marketing efforts. 

Earnings per share for the quarter reached J$0.06 per share marking an increase of $0.04. In addition, Dolla Financial announced that its efficiency ratio improved to 41 per cent, which underscores its dedication to operational efficiency and prudent resource management.

Loan book looking healthy

Dolla’s total loans book, net of expected credit losses reached J$2.8 billion, representing an increase of J$423 million or 24 per cent. Business loans accounted for 84 per cent of the total loan portfolio while personal loans accounted for the remaining 16 per cent. 

Within the loan portfolio, secured loans constituted 83 per cent, with unsecured loans making up the remaining 17 per cent. This balanced portfolio composition reflects Dolla’s commitment to managing risk effectively while meeting the diverse financing needs of our customers. 

The directors say the company takes “Great pride in highlighting the significant role our collateralized loan strategy has played in upholding the integrity of our loan portfolio. Amidst a backdrop of market turbulence, we’ve effectively maintained our non-performing loans (NPLs) at a steadfast 8.49 per cent with Expected credit losses hitting a remarkable record low of 3.5 per cent. These figures not only align with our projected targets but also stand notably below industry norms, reinforcing our dedication to robust risk management protocols.”

Liabilities climbing 

Total liabilities surged to J$2.1 billion, marking an increase of J$423 million or 24 per cent. This notable growth is predominantly fueled by heightened debt funding, empowering us to amplify our lending endeavors and fortify our strategic pursuits. 

Particularly noteworthy is the rise in loans payable, which soared to J$1.9 billion, propelled by the acquisition of additional funding aimed at accelerating our expansion efforts. On the other hand, shareholders’ equity rose to J$1.0 billion, marking an increase of J$237 million or 30 per cent. 

This growth in equity is a direct result of Dolla’s improved profitability over the period, net of dividends declared and reflects the confidence shareholders have placed in the business.