2 months ago
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Microfinance company Dolla Financial Services says it will be focusing on growing its business in Jamaica for the next three years following its unsuccessful foray into Guyana.
CEO Kenroy Kerr said regional expansion was not the agenda for the company in the immediate future.
“The company is leveraging the opportunities that exist in the local market and focusing on building out our brand and increasing our customer acquisition in Jamaica, Kerr said at the company’s annual general meeting in New Kingston on Friday.
A year ago, Dolla announced its exit from Guyana, just two years after setting up shop there. The company then cited geopolitical uncertainty and a reallocation of resources to Jamaica, where returns exceed those in Guyana, as the reasons behind its decision.
Commenting on the growth of the company, Kerr noted that Dolla’s loan portfolio grew by 63 per cent in 2024, with the bulk of that growth coming in the latter part of the year.
Total income climbed to $1.5 billion, which was a record for the company. Profit before tax grew by seven per cent relative to the prior year, and the company opened its 11th branch in Morant Bay, St Thomas last year, and added about 2,000 new customers, taking its total customer base to about 10,500 clients, Kerr reported.
“We’re looking at the average loan size of about $1 million with average duration somewhere between 15 and 18 months,” he said.
He was referring to loans from Dolla, and not Ultra Financier, which is the private credit side of the business that targets clients with deep pockets.
Some 92 per cent of the value of loans disbursed during 2024 went to entrepreneurs and businesses while the remaining eight per cent were for personal and consumer loans, Kerr said.
“It really reflects just our goal of fuelling growth through innovation across all productive sectors in Jamaica,” Kerr said, noting that one-third of the money went to the trucking, haulage and transportation industry, and one-quarter to real estate and construction.
Meanwhile, Ultra Financier received a slight rebrand, according to its CEO David Henriques.
“We began operations back in 2022, and we entered the space as a luxury lender, using luxury items as collateral to secure the liquidity needed for whatever purpose,” Henriques said.
Meanwhile, Kerr said during 2024 Dolla Jamaica made up the bulk of the group’s loan portfolio with 61 per cent, while Ultra Financier accounted for 38 per cent. One per cent was from Dolla Guyana. The exit from Guyana should be completed by next month.
Dolla was listed on the Junior Market of the Jamaica Stock Exchange in 2022. The top three shareholders of the Company are Mayberry Jamaican Equities Limited, holding 19 per cent interest, Dequity Capital Management Limited holding 20 per cent, and First Rock Private Equity owning 19 per cent.
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