Microfinance firm Dolla Financial expects to unlend $100 million through its recently opened Portmore branch in the next six months.
The branch, located at Sunshine Outlet Mall at Braeton Parkway, will significantly increase Dolla Financial’s bottom line for the year ending December 31, 2022, according to CEO Kadeen Mairs.
“As Portmore pushes for parish status and more and more businesses move into and around Portmore, Dolla Financial’s positioning is perfectly timed. As Portmore grows, so will we. We expect the branch to be one of our strongest after the company’s bond raise,” Mairs said.
Mario Brown Dolla Financial Country Manager cuts the ribbon on the new Dolla location in Portmore with Trevene McKenzie CFO Dolla Financial.
Dolla Financial, last month, received board approval to raise $1 billion in bonds, having unlent all of the $25 million it raised via an initial public offer in May 2022.
The bond issue will likely help Dolla Financial achieve its goal to open three more local branches by year-end and set up shop in a third Caribbean country.
Dolla Financial also plans to launch a new local subsidiary to tap into new credit market.
Dolla Financial’s journey started in 2014, offering cambio and remittance services. By 2016 the company decided to solely focus all resources to offering micro-financing solutions and discontinue its other services.
Its products are characterized as microloans, personal loans and business loans, targeted at small and medium enterprises (SMEs).
Initially, the company maintained a loan ceiling of $4 million per borrower. That amount has since increased based on customers’ needs over the years.
Dolla Financial operates eight branches across the Parishes of Manchester, St Elizabeth, Westmoreland, Hanover, St James, St Ann, and Kingston.
Published unaudited results following its listing shows Dolla Financial recording a six-fold rise in profit of $59.2 million for its June quarter of 2022 compared to $9.1 million a year earlier.
Profit before tax for the quarter ended June 30, 2022, reflected an increase of $55 million of 490 per cent over the prior year.
Total income for the quarter stood at $156.8 million, an increase of $102.6 million or 189 per cent year on year and overall $298.3 million year to date.
Dolla recorded net interest income before expected credit losses of $143.1 million in the second quarter, an increase of $14.5 million or 11 per cent over the prior quarter.
“This increase was driven by the expansion in our loan portfolio as is reflected in our balance sheet,” said the company.