February 10, 2025

Dolla Financial Services Limited(Dolla)

Unaudited financials for the twelve months ended December 31, 2024:

Dolla Financial Services Limited (Dolla) reported a 31% increase in interest income totaling $1.54 billion for the twelve months ending December 31, 2024, compared to $1.17 billion in the corresponding period last year. Interest Income for the fourth quarter increased 36% to close at $437.61 million compared to $320.89 million for the comparable quarter of 2023.

This remarkable surge in Interest Income is attributed to the successful execution of strategic initiatives, as highlighted by management. 

“Dolla executed key strategic initiatives to enhance customer engagement and drive business growth. The One N Ready, Two N Drive Loan Promotion included a limited-time offer of up to 100% financing, which ended in October 2024. This offer eliminated upfront costs for vehicle purchases and played a key role in increasing loan disbursements, with the overall campaign running until December 31, 2024. To attract new clients and reward loyalty, Dolla relaunched its Earn a Dolla Referral Program, enabling customers to earn incentives for successful referrals.”

Interest Expenses amounted to $295.44 million (2023: 170.33 million), an increase of 73% year over year. Consequently, net interest income increased by 24% to $1.24 billion compared to $1 billion for the twelve months ended December 31, 2023. The Company booked net interest income of $336.35 million for the fourth quarter versus $265.57 million reported for the similar quarter of 2023.

Net Interest Income After Loan Impairment increased by 21% to close at $1.19 billion (2023: $987.09 million), while Fees and Other Income decreased by 23% from $5.33 million in 2023 to $4.11 million in the period under review. Foreign exchange losses for the twelve months ended December 31, 2024, amounted to $4.67 million, versus losses of $12.08 million reported in 2023.

Total Net Interest Income and Other Revenue for the twelve months ended December 31, 2024, amounted to $1.19 billion, a 21% increase relative to $980.34 million reported in 2023. Total Net Interest Income and Other Revenue for the fourth quarter amounted to $320.71 million (2023: $276.39 million).

Administrative Expenses totaled $707.19 million, a 32% increase from last year’s corresponding period. (2023: $535.45 million) while Profit before Taxation totaled $482.08 million, an 8% increase from last year’s corresponding period. (2023: $444.88 million).

Income Tax for the year ended December 31, 2024, amounted to $29.52 million, a 15% uptick relative to $25.76 million reported in 2023. Net Profit for the twelve months ending December 31, 2024, experienced an 8% increase to $452.56 million (2023: $419.13 million). 

Total Comprehensive Income for the twelve months amounted to $456.48 million, up 8% from the $424.44 million reported in 2023. For the fourth quarter, Total Comprehensive Income was $112.56 million (2023: $96.13 million).

Consequently, Loss Per Share for the twelve months amounted to $0.18 (2023: EPS: $0.17), while Earnings Per Share for the quarter totaled $0.05 (2023: EPS: $0.04). 

Notably, Dolla’s stock closed the trading period on February 10, 2025, at $2.90, with a corresponding P/E ratio of 16.02x.

Balance Sheet Highlights

The company’s assets totaled $4.58 billion (2023FY: $2.99 billion). The growth in total assets is primarily driven by a 63% year-over-year (YoY) increase in Loans, Net of Provision for Credit Losses, reflecting a $1.55 billion rise to $4.00 billion from $2.45 billion in the prior year. 

Cash and Cash Equivalents grew by 9% YoY, closing the year at $355.29 million compared to $325.90 million in FY2023. Other Receivables increased by 55% YoY to $78.31 million, up from $50.45 million in the previous year.

Shareholder’s equity was $1.15 billion (2023FY: $981.38 million), representing a book value per share of $0.46 (2023FY: $0.39).

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