Dolla Financial Services Limited Reports Strong H1 Results Following IPO Listing

  • Dolla Financial Services Limited (Dolla) reported a net profit of $119.14Mn for the 6 months ended June 30, 2022, which represents a year over year 473.1% improvement over the net profit of $20.79Mn recorded in 2021.
  • Bottom-line growth was mainly supported by a 217.6% increase in net interest income due to a significant rise in loan disbursements during the period. This was made possible through an expansion of their loan portfolio which was boosted by the publicity of the IPO.
  • It is also noteworthy to mention the decline in the company’s expected credit losses (ECL) to $7.9Mn from $9.3Mn which also supported improved profitability. The reduction in ECL was primarily due to the changes in the company’s loan portfolio, proactive management of delinquency, and a deliberate effort in employing sound risk management to loans.
  • Administrative expenses which jumped to $136.60Mn from $69.64Mn due to increases in staff costs and other expenses as a result of a bonus payment to staff, and costs associated with the IPO process, partially depressed the overall positive performance.
  • Dolla currently has plans in play which once executed should boost revenues. It intends to open its 9th branch in Portmore, St Catherine in the Q3 2022. The company is also seeking to expand its footprint in Guyana by stepping outside of Georgetown, to capitalize on the lucrative opportunities arising from the rapidly growing economy.
  • In partnership with RTA Biz Energy Partners, Dolla has designed a product that aims to provide its customers with access to financing for alternative energy solutions. Jamaicans can now access up to 80% financing for solar panels, solar water heaters and generators, all supplied and installed by RTA Biz energy. This partnership will simultaneously support the government’s plan to reduce the country’s dependency on fossil fuels and drive interest income for Dolla.
  • Dolla’s stock price has increased by 198.0% since listing on June 14. The stock closed Tuesday’s trading session at $2.98 and currently trades at a P/E of 32.7x which is above the Junior Market Financial Sector Average of 14.2x.

(Sources: JSE & NCBCM Research)