March 16, 2023
Dolla Financial Services Limited (DOLLA) for the year ended December 31, 2022, reported a 95% increase in Interest income to $739.74 million (2021: $379.05 million). For the fourth quarter (Q4), interest income closed at $264.52 million (2021: $202.74 million).
Net Interest income for the period rose 103% year over year to $660.91 million (2021: $325.47 million), while interest expense amounted to $78.83 million (2021: $53.58 million). For the quarter , Net interest income closed at $225 million ( 2021: $186.27 million)
Provision for Expected Credit Losses (ECL) for the period amount to $29.63 million (2021: $20.42 million). For Q4, Provision for ECL amounted to $8.05 million (2021: $3.51 million).
As a result, net interest income after loan impairment for the year end and Q4 amounted to $631.28 million (2021: $305.04 million) and $216.96 million (2021: $182.76 million) respectively.
Non-Interest income for the period:
- Fees and Other Income amounted to $6.74 million (2021: $16.23 million)
- Foreign Exchange Losses totalled $2.66 million (2021: loss of $33,000)
Consequently, total net interest income and other revenue stood at $635.28 million (2021: $321.24 million), while for Q4, it stood at $215.07 million (2021: $157.17 million)
Administrative Expenses rose 121% year over year to $339.72 million (2021: $153.44 million). For Q4, it rose to $120.78 million (2021: $45.73 million).
This resulted in profit before taxation of $295.64 million (2021: $167.80 million).
After accounting for taxation of $15.17 million (2021: $38.25 million), net profit for the year end totalled $280.47 million, an increase of 116% compared to $129.55 million for the corresponding period of 2021. For the quarter, net profit closed at $92.42 million (2021: $86.35 million).
Total Comprehensive Income for the period was $275.67 million (2021: $128.96 million).
Earnings per share (EPS) for the year ended December 31, 2022 totalled $0.11 relative to $0.05 booked for the comparable period of 2021. For the quarter, EPS closed at $0.04 (2021: $0.03). The number of shares used in our calculations amounted to 2,500,000,000 units. Notably, DOLLA stock price closed the trading period on March 16, 2023 at a price of $2.74 with a corresponding P/E ratio of 24.42 times.
Balance Sheet at a glance:
As at December 31, 2022, the Company’s total asset base amounted to $2.24 billion (2021: $861.09 million). The increase was mainly due to ‘Loans, Net of Provision for Credit Losses’ which closed at $1.73 billion (2021: $750.50 million).
Equity attributable to stockholders of parent amounted to $720.98 million (2021: $314.98 million) with book value per share amounting to $0.29 (2021: $0.13).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
