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).
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.