April 3, 2024

Dolla Financial Services Limited (DOLLA)

Audited financials for the twelve months ended December 31, 2023:

Dolla Financial Services Limited (DOLLA) for the twelve months ended December 31, 2023, reported a 58% increase in Interest Income totalling $1.17 billion compared to $739.74 million in the corresponding period last year. Interest Income for the fourth quarter had a 21% increase to close at $320.89 million compared to $264.50 million for the comparable quarter of 2022.

Interest Expenses amounted to $170.33 million (2022: $78.83 million), this represents an increase of 116% year over year. Consequently, net interest income increased by 52% to $1.00 billion compared to $660.91 million for the twelve months ended December 31, 2022. The company booked net interest income of $265.57 million for the fourth quarter versus $224.99 million reported for the similar quarter of 2022.

Net Interest Income after Loan Impairment increased by 56% to close at $987.09 million (2022: $631.28 million), while Fees and Other Income decreased by 21% from $6.74 million in 2022 to $5.33 million in the period under review. Also, foreign exchange losses for the twelve months ended December 31, 2023 amounted to $12.08 million, a 355% increase relative to $2.66 million reported in 2022.

Total Net Interest Income and Other Revenue for the twelve months ended December 31, 2023, amounted to $980.34 million, a 54% increase relative to $635.36 million reported in 2022. Total Net Interest Income and Other Revenue for the fourth quarter amounted to $276.39 million (2022: $216.61 million).

Administrative Expenses totalled $535.45 million a 58% increase from the corresponding period last year. (2022: $339.72 million).

Profit before Taxation totalled $444.88 million a 51% increase from the corresponding period last year. (2022: $295.64 million)

Income Tax for the twelve months ended December 31, 2023, amounted to $25.76 million, a 71% increase relative to $15.17 million reported in 2022.  As such, Net Profit for the twelve months ended December 31, 2023, had a 49% increase to reach $419.13 million (2022: $280.47 million). For the quarter, Net profit amounted to $102.58 million (2022: $102.71 million).

Total Comprehensive Income for the twelve months amounted to $424.44 million, a 54% increase from the $275.67 million reported in 2022. For the fourth quarter, Total Comprehensive Income was $96.13 million (2022: $106.60 million).

Consequently, Earnings Per Share for the twelve months amounted to $0.17 (2022: EPS: $0.11), while Earnings Per Share for the quarter totalled $0.04 (2022: EPS: $0.04). The number of shares used in these calculations was 2,500,000,000.

Notably, Dolla’s stock price closed the trading period on April 02, 2024 at a price of $2.89 with a corresponding P/E ratio of 17.24x.

Balance Sheet Highlights

The company’s assets totalled $2.99 billion (2022: $2.24 billion). The growth in total assets was particularly due to a 42% uptick in ‘Loans, net of provision for credit losses’ to close at $2.45 billion (2022: $1.73 billion).

Shareholder’s equity was $981.38 million (2022: $720.98 million), representing a book value per share of $0.39 (2022: $0.29).

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