Durrant Pate/Contributor

Dolla Financial Services has posted good second-quarter results, with net profits growing by just over 40 per cent—moving from J$105 million to J$144 million as at June 2024.

The second quarter represents an uptick from the previous March quarter, which rounds off the first half of the financial year with total income closing on $744 million, a year-on-year increase of J$152 million or 26 per cent. Operating expenses during the period amounted to $318 million, representing a year-on-year increase of J$39 million or 14 per cent. 

Pre-tax profit for the half-year closed on $303 million, representing a $71 million or 31 per cent increase year-on-year. Dolla, for the half-year, recorded net interest income before expected credit losses (ECL) of J$622 million, an increase of J$132 million or 27 per cent year-on-year. 

Dolla growth factors

This increase is directly attributable to the continuous increase in sales and the reinvestment of funds back into the growth of the business. According to the micro-finance company’s chairman Ryan Reid and CEO Kenroy Kerr, “This growth in equity is a direct result of our improved profitability over the period and reflects the confidence our shareholders have placed in our business. In summary, these financial results represent Dolla’s commitment to achieving financial success, expanding our market presence, and delivering substantial value to our valued shareholders.” 

They say the board and management team remain dedicated to leveraging Dolla’s unique business model, fortifying its loan portfolio, and adhering to prudent risk management practices. Interest expense increased by 20 per cent year-on-year, mainly due to the additional funding acquired in late 2023. 

Earnings per share (EPS) for the period amounted to $0.11 per share, increasing due to the favourable movement in profits generated during the period. Additionally, the group’s efficiency ratio has improved to 43 per cent from 47 per cent in June 2023.

Performance of Dolla’s loan book

Dolla’s total loan book, net of expected credit losses (ECL), amounted to J$3 billion, representing a J$426 million or 17 per cent increase year-on-year. As of June 2024, loans extended to businesses and entrepreneurs made up a substantial 86 per cent of the total gross loan portfolio, with consumer loans accounting for the remaining 14 per cent. 

Additionally, secured loans comprised 83 per cent of the portfolio, while unsecured loans represented 17 per cent. This strong focus on secured loans has consistently enhanced the quality of the loan book and maintained manageable levels of ECL. Total liabilities went up to J$2.12 billion, an increase of J$203 million or 11 per cent. 

The rise in total liabilities was attributable to small fund raises executed throughout the half-year period to ensure continuous growth and to maximise demand opportunities in the domestic market. On the other hand, sharer shareholders’ equity stood at J$1.15 billion, an increase of J$257 million or 29 per cent. 

Aligned with its strategic objectives, Dolla engaged in several key initiatives to drive growth and expand our market presence such as the opening of its 11th branch in Morant Bay, St. Thomas on June 28. This expansion represents another step forward in bringing Dolla’s services closer to the heart of the communities it serves. 

At the opening ceremony of the new location, Dolla Financial launched its ‘One N’ Ready Two N’ Drive’ loan promotion, offering taxi operators enhanced financing options and a chance to win a 2018 Toyota Probox.