November 11, 2024
Dolla Financial Services Limited (Dolla)
Unaudited financials for the nine months ended September 30, 2024:
Dolla Financial Services Limited (Dolla) reported a 23% increase in interest income totaling $1.10 billion for the nine months ended September 30, 2024, compared to $887.44 million in the corresponding period last year. Interest Income for the third quarter increased 18% to $353.38 million compared to $300.25 million for the comparable quarter of 2023.
Interest Expenses amounted to $194.24 million (2023: 154.00 million), an increase of 26% year over year. Consequently, net interest income increased by 22% to $903.52 million compared to $737.99 million for the nine months ended September 30, 2023. The company booked a net interest income of $280.96 million for the third quarter versus $248.55 million reported for the similar quarter of 2023.
Net Interest Income After Loan Impairment increased by 20% to close at $872.04 million (2023: $724.01 million), while Fees and Other Income decreased by 100% from $37.99 million in 2023 to $57,000 in the period under review. As a result, foreign exchange losses for the nine months ended September 30, 2024, amounted to $3.55 million, a 40% decrease relative to a loss of $5.87 million reported in 2023.
Total Net Interest Income and Other Revenue for the nine months ended September 30, 2024, amounted to $868.55 million, a 15% increase relative to $756.13 million reported in 2023. Total Net Interest Income and Other Revenue for the third quarter amounted to $255.61 million (2023: $255.30 million).
Administrative Expenses totalled $499.52 million, a 19% increase from last year’s corresponding period. (2023: $420.15 million) while Profit before Taxation totalled $369.03 million, a 10% increase from last year’s corresponding period. (2023: $335.98 million)
Income Tax for the nine months ended September 30, 2024, amounted to $29.39 million, a 273% increase relative to $7.87 million reported in 2023. Income Tax for the third quarter amounted to $9.99 million (2023: $2.63 million). Net Profit for the nine months ending September 30, 2024, had a 4% increase to $339.64 million (2023: $328.11 million). Total Comprehensive Income for the nine months amounted to $332.99 million, a 2% increase from the $327.10 million reported in 2023. For the third quarter, Total Comprehensive Income was $51.86 million (2023: $103.07 million).
Consequently, Earnings Per Share for the nine months amounted to $0.14 (2023: EPS: $0.13), while Earnings Per Share for the quarter totalled $0.02 (2023: EPS: $0.04). The twelve-month trailing EPS was $0.17, and the number of shares used in these calculations was 2,500,000,000.
Notably, Dolla’s stock closed the trading period on November 08, 2024, at $2.54, with a corresponding P/E ratio of 14.74x.
Balance Sheet Highlights
The company’s assets totalled $3.57 billion (2023: $2.95 billion). The growth in the company’s total balance sheet is driven by a 228% year-over-year increase in “Cash and Cash Equivalents,” which closed the quarter at $202.03 million (compared to $61.57 million in 2023) and a 19% year-over-year rise in “Loans, Net of Provision for Credit Losses,” ending the quarter at $3.15 billion (up from $2.64 billion in 2023).
Shareholder’s equity was $1.05 billion (2023: $937.60 million), representing a book value per share of $0.42 (2023: $0.38).
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.
