Kenroy Kerr Chief Executive Officer for Dolla Financial Services Limited Has released the following Unaudited Consolidated Statement Of Cash Flows (Expressed In Jamaican Dollars Unless Otherwise Indicated) For the Nine Months Ended September 30, 2023
Throughout this period, our commitment has remained unwavering in delivering high-quality loan services, fostering customer confidence through transparent communication, cultivating relationships, and advancing our product offerings. Our distinctive business model has enabled us to extend our reach to a broader audience, promoting economic growth and funding opportunities.
Financial Overview
Total income for the nine (9) months ended September 30, 2023 reached $891 million, a significant increase of $417 million or 88% year on year (YoY).
Net interest income (NII) before expected credit losses (ECL) amounted to $738 million, reflecting a growth of $302 million or 69% YoY, driven by loan sales and portfolio expansion.
The increase in NII was offset by an increase operating expenses, including expected credit losses which totalled $434 million, marking a $193 million or 80% YoY increase primarily due to an increase in staff capacity, regulatory and professional fees and intensified marketing efforts.
Earnings per share (EPS) for the nine (9) month period amounted to $0.13 per share, positively impacted by increased income.
The Group’s efficiency ratio landed at 49% compared to 51% in September 2022.
Loan Portfolio And Growth
Total loans receivable net of ECL amounted to $2.6 billion, representing an increase of $1.5 billion or 125% YoY. Business loans accounted for 82% of the total loan portfolio, while personal loans accounted for the remaining 18%. Secured loans constituted 81% of the portfolio, with unsecured loans making up the remaining 19%.
The collateralized loan strategy has proven instrumental in maintaining the loan portfolio quality, with non-performing loans (NPLs) holding steady at 9%, remaining within budgeted expectations and below the sector average.
Liabilities And Shareholders’ Equity
Total liabilities amounted to $2 billion, reflecting a $1.3 billion or 212% YoY increase, primarily driven by increased debt funding. Loans payable specifically increased to $1.8 billion due to the $1.17 billion bond issued in Q4 2022. Shareholders’ Equity stood at $932 million, marking a $222 million or 31% YoY increase, driven by increased profitability over the period.
Dividends
The Board of Directors met on July 13, 2023 and approved an ordinary dividend payment of $0.025 per share amounting to $62.5 million and was paid on September 1, 2023 to shareholders on record as of August 13, 2023.
In summary, these financial results reflect Dolla Financials’ unwavering commitment to achieving financial prosperity, expanding our market presence, and delivering substantial value to our esteemed shareholders. Our focus remains on leveraging our unique business model, fortifying our loan portfolio, and maintaining prudent risk management practices. We greatly appreciate your continued support as we work diligently to sustain our growth and uphold our dedication to excellence.
Our strategic marketing and promotional activities during the third quarter have played a pivotal role in shaping our overall financial success.
Strategic Initiatives
In response to the educational financing needs of our valued customers, we introduced Dolla Schola. This new loan product, launched in sync with the back-to-school season, provided financial support for academic pursuits while offering a distinctive annual scholarship opportunity. The introduction of Dolla Schola contributed to increased loan sales and customer engagement, positively impacting our financial performance.
The Million Dolla Woman Campaign is an ongoing endeavour. We hosted the virtual Million Dolla Woman Official Launch event on August 11, 2023, and the first workshop in September 2023. This event had a dual purpose: it aimed to empower female entrepreneurs, providing valuable insights and interaction with accomplished guest speakers.
Beyond its empowerment role in the business community, this event also played a pivotal role in elevating our brand’s reputation and increasing our visibility in the market.
The launch of our “Tun Up Yuh Business” campaign was another significant marketing effort. This campaign utilized creative content, a memorable slogan, and strategic social media ads to boost awareness and drive sales for our business loan products.
The campaign’s success in increasing loan uptake directly contributed to our improved financial performance.
Our strategic partnerships also played a vital role in our financial outcomes during the third quarter. For the quarter, we initiated strategic partnerships with Century 21 and 3D Gynecology Limited.
These partnerships have expanded our service offerings and created accessible financial solutions for a diverse range of customer needs. These avenues for growth have been instrumental in driving revenue and enhancing our overall financial position.
In conclusion, our Q3 activities, encompassing marketing and promotions, strategic partnerships, financial considerations, and corporate social responsibility, all play a significant role in shaping our financial results. These efforts collectively reinforce our commitment to providing innovative financial solutions, fostering growth, and contributing positively to the communities we serve.
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