Durrant Pate/Contributor

Dollar Financial is insisting that it has not given up on its regional expansion plans but is emphasizing that it is focusing on its Jamaican build-out.

Responding to questions from Our Today at Dolla’s annual general meeting (AGM) last week at the Jamaica Pegasus Hotel, CEO Kenroy Kerr and chairman Ryan Reid spoke of plans to roll out more branches across the country as well as the appointment of agents in those locations, where no physical branch will be established. 

In the case of Kerr, he mentioned Dolla’s expansion in Falmouth, Trelawny and Portmore, St. Catherine, where a branch was opened last year stating, “As soon as we are able to announce the opening of a new branch, then we will do so.”

For Reid, Dolla has been meticulous and prudent in its expansion both locally and regionally, emphasising that the Jamaican micro lender doesn’t plan to compromise on its prudence.

However, he pointed to the fact that Dolla is now a regulated entity by the Bank of Jamaica (BOJ), noting that any expansion has to go through the regulator.

According to him, “whilst we want to grow and grow rapidly and grow prudently so we can’t sacrifice our prudence.”

Dollar became a regulated entity in November 2022 and needs approval from the BOJ before it can roll out a new branch or expand into new territories.

Pulling out of Guyana

Turning to the impending pulling out of Guyana, Kerr emphasised that, “It as a strategic decision we see where we are able to have a greater return, the capital is better leveraged in Jamaica and will create better return but at this point in time the focus will continue on our local operations, where the demand is really more than what we can fund.”

For her part, Dolla’s CFO, Trevene McKenzie responded, “The economy in Jamaica is one of the best economies in the Caribbean so at this time the funds being deployed in Jamaica are seeing the best returns possible than moving into a territory as quickly as we possibly can.”

Asked whether in hindsight the expansion to Guyana was a wrong move, Reid told Our Today, ”Let me just go on the record in saying for the two years we have been in Guyana we have been profitable but at the end of the day it comes down to best utilisation of the capital and if our return on investment is best used here (Jamaica) vs Guyana; then it makes sense for us to come back home.” 

“The board of Dolla is resolved to initiate the orderly winddown of its Guyana subsidiary through the gradual runoff of its loan portfolio and is expected to be completed and close its operations on or before March 31, 2025,“ the company stated in its 2023 annual report.

Dolla Guyana ended its 2023 financial year with a loan portfolio valued at G$230 million after a previous year of aggressive growth. Despite the challenges encountered, the subsidiary was able to expand its customer base to 600 clients by December 2023 with net profits closing the year on G$13 million, which is down by G36 million over the prior year.