Dolla Sees Improvement In Bottom Line  

  • Dolla Financial Service Limited recorded a net profit of $102.47Mn for the quarter that ended September 30, 2023. This represents a 46.1% yoy increase in profitability. Furthermore, for the nine months ending September 2023, profitability also increased to $328.11Mn from $188.05Mn.
  • Net interest income for the quarter was up by 51.4% yoy to $248.55Mn. This was driven by increased loan portfolio expansion. Similarly, net interest income for the nine months increased by 69.3% yoy $737.99Mn.
  • Operating expenses, including expected credit losses, totalled $155.69Mn, marking a $59.77Mn or 62.3% YoY increase for the quarter ended September. On the same note, operating expenses including expected credit loss were 80.5% higher in the nine months ended September 2023, when compared to the same period of last year. This was primarily due to an increase in staff capacity, regulatory and professional fees and intensified marketing efforts.
  • Dolla's stock price has decreased by 11.8% since the start of the calendar year. The stock closed Thursday’s trading session at $2.54 and currently trades at a P/E of 13.4x which is above the Junior Market Financial Sector Average of 13.1x.
  • The company recently announced its plans to expand further in the region. The expansion of its operation in other territories is part of its strategy to enlarge the company’s loan portfolio, allowing it to generate income and profit for its shareholders. At the end of September, its loans receivables net of expected credit losses amounted to $2.6Bn, which represents a massive jump of 125%. The company recently struck a deal with real estate brokerage firm Century 21 Heave-Ho Properties Limited to become the preferred financing partner for short-term loans to its clients and agents, covering home purchase fees and incidentals.
  • The financing arrangement is an extension of a previous pact signed between the two companies that will see Dolla Financial and its subsidiary Ultra Financier handing over real estate business to the brokerage, including powers of sale for foreclosures and sale of properties used as collateral for loan agreements. The partnership with Century 21 would make Dolla’s fifth partnership in recent times aimed at widening its client base.

(Sources: JSE & NCBCM Research)