• For the quarter ending March 31, 2026, Dolla Financial Services Limited (DOLLA) saw a 55.0% jump in earnings to $187.09Mn, as lower credit loss provisions and leaner operating costs outweighed softer net interest income.
• Net interest income, the company’s primary source of revenue, declined by 3.3%, as a modest 2.1% increase in interest income was outweighed by a 24.1% rise in interest expense. The growth in interest income reflects the continued expansion of the loan portfolio, which grew by 15.0% year-over-year to $4.90Bn and is made up primarily of business loans that account for 90% of its portfolio.
• However, the decline in net interest income was largely driven by higher financing costs associated with the company’s recently issued $1.50Bn debt instrument in January 2026. The bond was issued in two tranches: an 11.00% 2029 bond and 2031 bond with a 12.00% coupon.
• Driven by lower operating expenses, there was a 12% expansion in operating margin to 8% from 40.5%. Operating expenses declined by 28.3% for the quarter, driven by a sharp 66.5% drop in provisions for expected credit losses to $35.33Mn. The company rebounded from last year’s fraud-related loan provisions and write-offs. It had been disclosed in October that it was impacted by a fraud incident in March, which ultimately resulted in higher credit loss provisions. However, following the write-offs recorded in FY2025 and the implementation of stricter controls, provisions declined. Administrative expenses were also down 5.7% to $167.10Mn, further increasing earnings. This was due to the full wind-down of its Guyana subsidiary and the absence of non-recurring forensic and legal costs related to the 2025 fraud investigation.
• Looking ahead, we expect further expansion in the company’s loan portfolio, driven by the recent acquisition of Evolve Loan Company and the continued deployment of proceeds from the bond raise. This should position the company for further growth in the coming quarters.
• However, there are risks. Although interest rates are lower than last year, they remain elevated and could stay higher for longer amid inflation risks stemming from geopolitical tensions in the Middle East. This has already begun to translate into higher local prices. Persistently higher inflation could lead the Bank of Jamaica to maintain, or even increase, policy rates. Consequently, this may compress the spread between borrowing and lending rates, and by extension, weigh on earnings.
• At the market close on Thursday, May 7, 2026, Dolla’s stock price had declined by 8.8% since the start of the year to J$2.50. At this price, Dolla trades at a Price-to-Book (P/B) ratio of 3.6x, which is above the Junior Market Financial Sector average of 1.5x.

• The National Export-Import Bank of Jamaica (EXIM) is encouraging business operators affected by Hurricane Melissa, particularly small and medium-sized enterprises (SMEs), to take advantage of its loan facilities.
• Manager of Loan Origination and Business Development, Hopeton Nicholson, said that the Bank continues to provide traditional lending to assist its clients affected by the hurricane in their recovery efforts.
• EXIM Bank provides traditional loan products focused on export development, trade financing, and SME growth, often with lower collateral requirements than commercial banks. These include short-term working capital (up to 180 days), medium-term loans for SME expansion, and foreign currency lines of credit for raw material importation. Among the products is the E-Commerce Funder, which is used to develop, upgrade or expand e-commerce infrastructure. The loan limit is $1.00Mn to $5.00Mn at a 5.0% interest rate (fixed), and the loan term is five years. No collateral or financial statements are required.
• There is also a Solar Energy Loan is designed for SMEs seeking to reduce energy costs, improve efficiency, and strengthen cash flow. It offers up to 85% financing, with loan amounts ranging from $5.00Mn to $50.00Mn at a fixed interest rate of 7.50%. The maximum repayment term is seven years.
• For exporters, the Bank offers a Modernisation Fund, Trade Credit Insurance (TCI), and the Insurance Policy Discounting Facility. The Modernisation Fund is for the acquisition of capital for retooling, refurbishing and upgrading facilities and equipment. The loan limit is $5.00Mn to $90.00Mn with a loan term of up to five years. The Insurance Policy Discounting facility provides crucial collateral support that enables businesses to access working capital, while the TCI coverage is designed to protect exporters against non-payment by covering commercial and political risks on gross invoice values.

(Source: JIS)

• The government of Cayman is working to restrict the grant of foreign business licences to most property development companies to protect local firms from international competition within the territory. Premier André Ebanks told the news press on Tuesday, May 5, 2026, that the government believes Cayman has enough local expertise that it does not need to approve more licences for foreign-owned businesses in that sector.
• That said, exceptions could be made for developments that involve cutting-edge methods or where the scale of the project is beyond the capacity of the firms on the island. His comments came as the government announced it is drafting legislation to allow the Cabinet to place a moratorium on the granting of Local Companies Control Licenses (LCCLs) in any sector.
• The aim is to target real estate development and property companies, which currently account for around half of all LCCLs. The LCCL regime is designed to allow exceptions to the rule that any business operating in Cayman must have at least 60% local ownership.
• The legislation will continue to be used in areas of the economy where specific expertise or global reach is required. International airlines, major branded hotels and advisory firms like EY and KPMG all operate under LCCLs. Healthcare providers like the Mayo Clinic referral office and Baptist Health operate under similar exemptions. Banks and law firms, however, are licensed separately.
• The Trade and Business Licensing Board, which assesses LCCL applications, has already been pushing back on LCCL applications in the real estate development or property management category. Chair Anne Storie told the Compass. “This category is overrun. We’ve seen an excessive amount of applications come through, and at this stage, we don’t see the need for any foreign ownership of these real estate development companies.”
• The surge in international interest in Cayman’s real estate market has been fueled by by strong demand from overseas investors, wealthy migrants and luxury buyers, which saw property sales top US$1.07Bn in 2025, exceeding the previous record set in 2021 by US$42Mn. Beyond its natural appeal, Cayman attracts global development firms through a foundational tax-neutral environment with no corporate or capital gains taxes, a transparent legal system, and the absence of restrictions on foreign property ownership. This has been further bolstered by the Golden Visa program, which offers residency for investments exceeding US$2.4Mn, and a thriving synergy with the financial services sector that has created sustained demand for luxury residential and commercial high-rises.
• Storie said the moratorium would also spare applicants the cost and frustration of pursuing applications that were unlikely to succeed. Existing LCCL holders will not be immediately affected. Storie confirmed that renewals would not be caught by the moratorium, saying they “will be reviewed individually depending on the stage of the project.”

(Sources: Cayman Compass, La Vida Golden Visas, Provenance Properties of Cayman Ltd.)

• The Bank of Mexico cut its benchmark interest rate in a split decision on Thursday, May 7, 2026, and said it ‌was ending an over two-year-long easing cycle as it balances concerns over above-target inflation with pressure to revive Mexico's slowing economy.
• "Looking ahead, the Governing Board estimates that it will be appropriate to maintain the reference rate at its current level," the central ⁠bank, also known as Banxico, said in a statement announcing the decision.
• The 25-basis point cut brings the rate to 6.50%, its lowest since May 2022. The 3-2 decision by the Central bank’s five-member board had been largely expected, bolstered by data released earlier on Thursday showing headline inflation slowed in April for the first time since December.
• Consumer prices in Latin America's second-largest economy rose 4.45% in the year through April, easing from March's 4.59% increase and below the 4.50% increase forecast by economists polled by Reuters. The closely watched ⁠core index, which strips out some volatile food and energy prices, also slowed to 4.26% from 4.45% in March and slightly below expectations of a 4.27% increase.
• Despite the recent easing, inflation remains well above the central bank's target of 3%. Analysts polled by Reuters said ahead of the decision that the cut ‌was ⁠likely to be the last for the foreseeable future, a view echoed by Bank of Mexico Governor Victoria Rodriguez, who recently said the central bank was "close to concluding the period of adjustments" to the interest rate.
• The bank's statement said the board members believe the current monetary policy is ⁠appropriately positioned to deal with risks stemming from the broader economic environment, including the conflict in the Middle East and its repercussions.

(Source: Reuters)

• Oil prices rose sharply on Thursday, May 7, 2026, following renewed clashes between U.S. and Iranian forces, further undermining the outlook for a durable ceasefire and a broader agreement to end the 10-week war. Oil prices jumped by as much as 4%, with WTI crude approaching US$98 per barrel and Brent crude closing near US$100.
• The renewed hostilities broke out as Washington was awaiting Iran's response to a U.S. proposal that would formally end the war but leave some issues unresolved for now. Iran’s top military command accused the U.S. of violating the ceasefire by targeting an Iranian oil tanker and another vessel entering the strait, while the U.S. military said it acted in self-defence after Iranian forces launched “unprovoked” attacks on guided-missile destroyers transiting the waterway.
• US President Donald Trump said three U.S. warships successfully exited the Strait of Hormuz undamaged, but warned that Washington would respond if Iran failed to sign a deal quickly. Nonetheless, U.S. Central Command stated that it does not seek broader escalation, underscoring the delicate balance between deterrence and avoiding a wider regional conflict.
• Further, the head of the International Energy Agency (IEA), Fatih Birol, warned that the world is currently losing around 14 Mn barrels of oil per day due to the conflict. Birol reiterated that the IEA remains prepared to take further action after member countries agreed in March to release 400 Mn barrels from emergency reserves.
• The continued disruption in Hormuz is likely to keep downside pressure on oil prices limited, while prolonged instability could sustain elevated inflation and tighter financial conditions globally. Consequently, markets are increasingly treating the crisis not as a temporary geopolitical disruption, but as a broader and more prolonged global energy-security shock with implications for inflation, trade flows, and monetary policy expectations.

(Sources: Reuters & Yahoo Finance)

• The Court of International Trade voted on Thursday, May 7, 2026, to invalidate President Trump’s 10% tariffs that he imposed in February 2026 under Section 122 of the Trade Act of 1974. It was a split vote, with two judges voting in favour of the small business plaintiffs and one dissenting.
• In the case, the plaintiffs argued that the tariffs circumvented the Supreme Court’s January 2026 ruling that struck down Trump’s blanket tariffs, which were imposed in April 2025 under the International Emergency ​Economic Powers Act (IEEPA). Those IEEPA tariffs are now in the process of being refunded to importers.
• After the Supreme Court ruled against Trump’s earlier IEEPA tariffs in January 2026, the White House announced new 10% tariffs in February 2026 under Section 122 of the Trade Act of 1974. Unlike the earlier tariffs, these were temporary measures designed to remain in place for up to 150 days.
• Thursday’s ruling marks another legal setback for the Trump administration’s signature trade policy. It also raises the question of whether the US government will be required to refund the additional set of tariffs. The administration is likely to appeal the decision.

(Source: Reuters)

• For the quarter ended March 31, 2026 (Q1 2026), JETCON Corporation Limited (JETCON) revved up earnings by 575.8% to $61.18Mn, as new customers drove out of the dealership.
• Formerly a used car dealer for three decades, Jetcon has transitioned its business model to focus exclusively on new vehicles, becoming the sole dealer for Beijing Automotive Industry Company (BAIC) locally.
• Revenue for the quarter increased by 113.0% to $418.27, driven primarily by motor vehicle sales despite supply constraints. Over the past year, the Jamaican auto market has witnessed a noticeable shift toward Chinese-made vehicles due to their advanced technology, higher specifications and significantly lower price point compared to traditional brands. This has created a stronger value proposition for buyers that has supported demand for Jetcon’s inventory.
• In line with revenue growth, the cost of sales also increased, albeit at a slower pace (100.7%). As a result, gross profit margin expanded from 18.8% to 23.5%
• Operating expenses rose by 31.0% to $34.40Mn, largely driven by higher sales and marketing costs, which increased by 74.6% to $12.65Mn. The local automotive market has become increasingly competitive, particularly with the influx of Chinese brands, prompting Jetcon to significantly increase its marketing spend.
• Looking ahead, there are notable opportunities in the market to boost revenues. Consumers have become more receptive to Chinese-made vehicles and recognise their value proposition. Additionally, elevated interest rates have made used vehicles less attractive, as they often require higher monthly payments due to shorter loan terms, while financing institutions are offering more favourable deals on new vehicles. This could sustain demand for new Chinese-made cars. However, strong competition from major players such as ATL, Fidelity Motors, Stewart’s Automotive Group, and Tyre Warehouse (Jetour) is expected to moderate growth in revenue and earnings over time.
• Jetcon’s stock price has increased by 62.0% since the start of the calendar year. The stock closed on May 5, 2026, trading session at $2.43 and a P/E of 14.9x, which is below the Junior Market Other Sector Average of 21.5x.

(Sources: JSE& NCBCM Research)

• Petrojam, Jamaica’s only petroleum refinery, is projecting total sales of 12.21Mn barrels for the 2026/2027 financial year, with 7.2Mn barrels allocated to the domestic market and 4.9Mn barrels for export. “This dual role ensures reliable local supply while generating valuable foreign exchange earnings,” Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, said. He was making his contribution to the 2026/27 Sectoral Debate in the House of Representatives.
• Between March 12 and April 8, 2026, transport fuel prices rose by about $49.20 per litre, but only $18 was passed on to consumers due to the Government’s pricing cap. He noted that the remaining cost was absorbed by Petrojam to cushion households and businesses.
• “That is a buffer of about US$8.6Mn ($1.3Bn to $1.4Bn) worth of protection that this Government has provided for Jamaicans during this energy crisis. While this buffer is effective, this intervention is costly, with projections reaching $11.8Bn by June 2026 if maintained,” Mr. Vaz told the House.
• Consequently, the Government has introduced a revised tiered pricing system to better reflect global market changes while managing price volatility. Minister Vaz also told the House that the Government is actively exploring opportunities to further optimise Petrojam’s role, through strategic partnerships, diversification, and potential public-private collaboration.
• This includes examining cleaner fuel options such as LNG (liquefied natural gas), expanding renewable integration within operations, and aligning with broader climate and sustainability goals.

(Sources: JIS & NCBCM Research)

• LATAM Airlines (LATAM) slashed its 2026 core earnings forecast on Tuesday, May 5, 2026, as higher jet fuel prices driven by the conflict in the Middle East significantly increased costs ‌despite mitigation measures. The Chile-based carrier cut its full-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) outlook to a range of US$3.8Bn to US$4.2Bn, from a previous forecast of $4.2Bn to $4.6Bn.
• Global airlines are contending with surging fuel prices since the U.S.-Israeli strikes on Iran disrupted traffic ⁠through the Strait of Hormuz, in the air travel industry's worst crisis since the COVID-19 pandemic.
• LATAM estimated a $40Mn hit to first-quarter results, saying the burden was softened by hedging and pricing lags, but warned of additional fuel expenses of more than $700Mn in the second quarter, assuming an average jet fuel price of $170 per barrel. Despite the fuel shock, the company still expects a mid-to-low single-digit adjusted operating margin in the second quarter, as revenue ‌measures, ⁠targeted capacity adjustments and additional cost controls help it offset the impact.
• "LATAM's strong balance sheet and liquidity position provide the flexibility to absorb fuel price volatility, continue investing in the business, and manage uncertainty while maintaining operational and financial discipline," it said.
• The ⁠carrier's new financial outlook assumes jet fuel prices of $170 per barrel in the second and third quarters and $150 in the fourth, compared with a prior full-year assumption of $90 ⁠per barrel. LATAM raised its forecast for cost per available seat kilometre this year to a range between 4.50 and 4.70 cents, from 4.30 to 4.50 ⁠cents previously. For the first quarter, Latin America's largest carrier reported net income of $576Mn, up 62.1% year-on-year, on revenue that rose 21.7% to $4.15Bn.

(Source: Reuters)

• Spirit Airlines, the budget carrier that kept Caribbean travel affordable for millions, operating routes from Fort Lauderdale to San Juan, Punta Cana, Santo Domingo, Aruba, Kingston, and beyond, shut down all operations on May 2, 2026, after a US$500Mn government rescue collapsed, eliminating 17,000 jobs overnight and leaving the region facing higher fares and fewer seats, with historical data suggesting prices could jump 23% or more.
• The collapse came after bondholders rejected an 11th-hour rescue proposal from the Trump administration that would have injected up to US$500Mn into the ailing carrier and handed the government up to a 90% ownership stake. Commerce Secretary Howard Lutnick personally called Spirit CEO Dave Davis to deliver the news that no deal was coming. Within hours, the wind-down was underway.
• Spirit had been fighting for survival through two Chapter 11 bankruptcy filings in under two years — a crisis rooted in pandemic-era losses that never fully recovered. A sharp surge in jet fuel costs, linked to the US-Israel conflict involving Iran, delivered the final blow, though Transportation Secretary Sean Duffy disputed fuel prices as the primary cause.
• The company served the Caribbean extensively, with routes from Fort Lauderdale to San Juan, Punta Cana, Santo Domingo, Aruba, Montego Bay, Kingston, Nassau, Haiti, and beyond, making it one of the most consequential carriers for budget travel across the region.
• Airlines worldwide ‌are struggling with surging jet fuel costs after U.S.-Israeli strikes on Iran, delivering the industry's biggest shock since the COVID-19 pandemic. Two weeks ago, JetBlue Airways founder Dave Neeleman warned that the airline could go bankrupt this year and that it would likely take Chapter 11 to address liabilities and repackage it for sale. However, JetBlue’s CEO Joanna Geraghty told employees the carrier was not considering bankruptcy for this year, despite more rumours being sparked post the announcement by Spirit, even as higher jet fuel prices threaten its financial recovery.
• Despite their troubles, JetBlue, United Airlines, Delta Air Lines, and Southwest Airlines all announced that they would be offering capped rescue fares to stranded Spirit customers whose flights were cancelled and who need to reach their final destinations. Nonetheless, Caribbean routes to Puerto Rico, the Dominican Republic, Jamaica, and Aruba are among the most exposed, facing both fewer seats and a higher pricing floor as competitors absorb displaced passengers at higher price points.

(Sources: Caribbean360, Reuters, View from the Wing)