July 10, 2023
Dolla Financial Services Limited (Dolla) for the six months ended June 30, 2023 reported a 98% increase in total interest income totaling $591.69 million compared to $298.31 million in the corresponding period last year. Total interest income for the second quarter had an 88% increase to close at $294.66 million compared to $156.87 million for the comparable quarter of 2022.
Interest Expenses amounted to $101.18 million (2022: $26.55 million), this represents an increase of 281% year over year. Consequently, net interest income increased by 80% to $490.52 million compared to $271.76 million for the six months ended June 30, 2022. The company booked net interest income of $242.39 million for the second quarter versus $143.13 million reported for the similar quarter of 2022.
Net interest income after loan impairment increased by 83% to close at $482.03 million (2022: $263.86 million), while fees and other income increase by 588% from $3.77 million in 2022 to $25.96 million in the period under review. As a result, foreign exchange losses for the six months ended June 30, 2023 amounted to $5.67 million relative to the gain of $1.27 million reported in 2022.
Total net interest income and other revenue for the six months ended June 30, 2023, amounted to $502.32 million, a 87% increase relative to $268.91 million reported in 2022. Total net interest income and other revenue for the second quarter amounted to $253.17 million (2022: $143.80 million).
Administrative expenses totalled $269.91 million a 98% increase from the corresponding period last year (2022: $136.58 million) while profit before taxation totalled $232.41 million, a 76% increase from the corresponding period last year (2022: $132.33 million).
Income Tax for the six months ended June 30, 2023, amounted to $5.25 million, a 60% increase relative to $13.19 million reported in 2022. Income Tax for the second quarter amounted to $3.36 million (2022: $7.14 million). Net profit for the six months ended June 30, 2023 had a 91% increase to reach $227.16 million (2022: $119.14 million) . Total comprehensive income for the six months amounted to $227.34 million, a 99% increase from the $114.04 million reported in 2022. For the second quarter, Total Comprehensive Income was $106.52 million (2022: $55.57 million).
Consequently, Earnings per share for the six months amounted to $0.09 (2022: EPS: $0.05), while earnings per share for the quarter totaled $0.04 (2022: EPS: $0.02). The twelve-month trailing EPS was $0.16 and the number of shares used in these calculations was 2,500,000,000.
Notably, Dolla’s stock price closed the trading period on July 7, 2023 at a price of $2.39 with a corresponding P/E ratio of 15.38x.
Balance Sheet Highlights
The company’s assets totalled $2.82 billion (2022: $1.19 billion). The increase was due to ‘Loans, net of provisions for ECL’ was closed at $2.57 billion (2022: $1.05 billion).
Shareholder’s equity was $897.96 million (2022: $653.54 million), representing a book value per share of $0.36 (2022: $0.26).
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