May 9, 2024

Dolla Financial Services Limited (Dolla)

Unaudited financials for the first quarter ended March 31, 2024:

Dolla Financial Services Limited (Dolla) for the first quarter ended March 31, 2024, reported a 26% increase in interest income totalling $364.68 million compared to $288.54 million in the corresponding three months last year. Dolla attributed the growth to the work of their sales team, particularly ULTRA, which contributed 37% to the consolidated income as well as their customers, trusted financial partners.

Interest Expenses amounted to $61.24 million (2023: $45.75 million), this represents an increase of 34% year over year. Consequently, net interest income increased by 22% to $304.25 million compared to $248.69 million for the first quarter ended March 31, 2023.

Net Interest Income after Loan Impairment increase by 27% to close at $300.29 million (2023: $236.46 million).

Fees and Other Income decreased from gains of $12.29 million in 2023 to a loss of $61,000 for the three months.

Foreign Exchange Losses for the first quarter amounted to $284,000, a 95% decrease relative to $5.42 million reported in 2023.

Total Net Interest Income and Other Revenue for the three months amounted to $299.95 million, a 23% increase relative to $243.34 million reported in 2023.

Administrative Expenses totalled $147.58 million a 22% increase from the corresponding period last year. (2023: $120.71 million). DOLLA highlighted, “The increase in expenses comes as a result of continuous investments in staff capacity to manage the influx of demand, regulatory and professional fees, and intensified marketing efforts.”

Profit before Taxation for the first quarter ended March 31, 2024, amounted to $152.37 million, a 24% increase relative to $122.62 million reported in 2023.

Income Tax for the three months had a 569% increase to reach $12.37 million (2023: $1.85 million).

Net Profit for the three months amounted to $139.99 million (2023: $120.77 million).

Management was pleased to highlight the improvement in the Group’s efficiency ratio from 45% in 2023 to 41%, attributing the development to dedication to operational efficiency and prudent resource management.

Total Comprehensive Income for the three months amounted to $130.43 million, an 8% increase from the $120.56 million reported in 2023.

Consequently, Earnings Per Share for the three months amounted to $0.06 (2023: EPS: $0.02). The twelve month trailing EPS was $0.18, and the number of shares used in these calculations was 2,500,000,000.

Notably, Dolla’s stock price closed the trading period on May 08, 2024, at a price of $2.76 with a corresponding P/E ratio of 15.74x.

Balance Sheet Highlights

The company’s assets totalled $3.19 billion (2023: $2.53 billion). Notably, there was a $550.88 million uptick in ‘Loans, Net of Provision for Credit Losses’ to close at $2.82 billion (2023: $2.27 billion). Also, ‘Cash and Cash Equivalents’ increased by 159% to $134.87 million (2023: $52.01 million).

Shareholder’s equity was $1.03 billion (2023: $793.59 million), representing a book value per share of $0.41 (2023: $0.32).

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.