Dolla Sees Improvement In Bottom Line in Q1

• Buoyed by robust growth in Net Interest Income (NII), Dolla Financial Service Limited recorded a net profit of $139.99Mn for the quarter that ended March 31, 2024. This represents a 15.9% yoy increase in profitability.
• NII for the quarter was up by 22.3% y-o-y to $304.25Mn. This was driven by an expansion of the company’s loan portfolio, notably Ultra Finance Limited, its subsidiary which targets high net-worth individuals. Additionally, Ultra contributed 37% of the $299.94Mn recorded for consolidated income.
• Operating expenses, including expected credit losses, totaled $151.43Mn, marking a $26.87Mn or 22.3% y-o-y increase due to an increase in the staff capacity to manage the higher business volume, as well as growth in regulatory and professional fees and increased spend to support the company’s intensified marketing efforts.
• Dolla's stock price has increased by 2.2% since the start of the calendar year. The stock closed Thursday’s trading session at $2.77 and trades at a P/B of 6.7x, above the Junior Market Financial Sector Average of 2.8x.
• The company recently announced its plans to close operations in Guyana, just two years after setting up shop due to geopolitical uncertainty. It noted that it would be reallocating its resources to Jamaica, where returns are greater.

 (Sources: JSE & NCBCM Research)