The Mayberry Investor Briefing held on February 13, 2025, featured Dolla Financial Group, one of Jamaica's most dynamic microfinancing institutions, presenting its highly anticipated unaudited Q4 and full-year 2024 financial results.
The company showcased exceptional growth and strategic market positioning, solidifying its reputation as a leading player amongst Jamaica's microfinancing institutions.
Since its historic IPO in May 2022, which attracted $5 billion in subscriptions for a $500 million offer, Dolla Financial Group has consistently outperformed market expectations and they continued with this trend of outstanding performance as demonstrated by their financial results for 2024.
The company achieved $4 billion in assets by the end of 2024, a 53% increase over the previous year, and it recorded $453 million in profitability. Interest income surged by 31% to $1.5 billion, with net interest income growing by 24% to $1.24 billion. Despite a 32% increase in operating expenses to $77 million, the company maintained a solid profit before tax, growing by 8%. Group CFO, TreveneMcKenzie, confirmed that the growth in profitability could have been 30 to 40% year over year on a normalized basis, in response to a question from Dan Theoc about the growth in the loan book vs the growth in profitability. She revealed that a significant portion of the new loans disbursed happened in Q4’2024, so the company had not yet experienced the full year impact from the growth in its loan receivables.
The loan book expanded significantly, with 86% of the portfolio secured by robust collateral, including real estate, motor vehicles, and reputable shares. Total equity rose by 17% to $1.15 billion, showcasing the company’s solid balance sheet.
The company effectively managed total liabilities while maintaining an impressive interest income spread of over 30%. With non-performing loans at a manageable 9.9%, Dolla Financial Group's focus on prudent risk management has been key to its profitability. Currently trading at a price-to-earnings (PE) ratio of 15.7 times, slightly below the Junior Market average of 16-17 times, Dolla Financial is poised for growth as interest rates decline. Further, analysts anticipate improved PE ratios in 2025, underscoring the stock’s growth potential.
"We are extremely proud of our performance in 2024 and expect bigger and better things in 2025. Our strategic focus on sustainable growth and maintaining a high-quality loan book has enabled us to navigate economic challenges while delivering strong returns for our shareholders," said Kenroy Kerr, CEO of Dolla Financial Group.
Dolla Financial Group has consistently demonstrated its growth potential, moving from a pre-IPO profit of under $100 million to now achieving over $100 million in profit per quarter. This achievement underscores the company's resilience and strategic execution in expanding its reach within the micro, small, and medium-sized enterprise segments.
Looking ahead, Dolla Financial Group is very optimistic about 2025. The company anticipates leveraging its secured loan portfolio and strategic partnerships to drive even greater value for its stakeholders.