October 25, 2023

Dolla Financial Services Limited (DOLLA) for the nine months ended September 30, 2023, reported an 88% increase in total interest income to $891.99 million compared to $475.22 million in the corresponding period last year. Total interest income for the third quarter had a 70% increase to close at $301.37 million compared to $176.91 million for the comparable quarter of 2022.

Interest expense amounted to $154.00 million (2022: $39.31 million), this represents an increase of 292% year over year. Consequently, net interest income increased by 69% to $737.99 million compared to $435.91 million for the nine months ended September 30, 2022. The company booked net interest income of $248.55 million for the third quarter versus $164.15 million reported for the similar quarter of 2022.

Net interest income after loan impairment increased by 75% to close at $724.01 million (2022: $414.33 million). Fees and other income increased by 543% from $5.91 million in 2022 to $37.99 million in the period under review, while foreign exchange losses for the nine months ended September 30, 2023, amounted to $5.87 million relative to losses of $25,000 reported in 2022.

Total net interest income and other revenue for the nine months ended September 30, 2023, amounted to $756.13 million, an 80% increase relative to $420.21 million reported in 2022. Total net interest income and other revenue for the third quarter amounted to $255.30 million (2022: $152.39 million).

Administrative expenses totalled $420.15 million, a 92% increase from the corresponding period last year (2022: $218.94 million).

Profit before taxation totalled $335.98 million, a 67% increase from the corresponding period last year (2022: $201.27 million).

Income tax for the nine months ended September 30, 2023, amounted to $7.87 million, a 40% decrease relative to $13.22 million reported in 2022. Income tax for the third quarter amounted to $2.63 million (2022: nil).

As a result, net profit for the nine months ended September 30, 2023, had a 74% increase to reach $328.11 million (2022: $188.05 million). Total comprehensive income for the nine months amounted to $327.10 million, an 82% increase from the $179.36 million reported in 2022. For the third quarter, net profit amounted to $102.47 million relative to $70.15 million reported a year prior. Additionally, for the quarter, total comprehensive income was $103.07 million (2022: $66.56 million).

Earnings per share (EPS) for the nine months amounted to $0.13 (2022: $0.08), while EPS for the quarter totalled $0.04 (2022: $0.03). 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 price closed the trading period on October 24, 2023, at a price of $2.49 with a corresponding P/E ratio of 14.80x.

Balance Sheet Highlights:

The company’s total assets increased by 117% to $2.95 billion (2022: $1.36 billion). This was largely due to loans, net of provision for credit losses, which closed at $2.64 million (2022: $1.17 million).

Shareholder’s equity was $937.60 million (2022: $715.46 million), representing a book value per share of $0.38 (2022: $0.29).

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