Dolla Financial Delivers Record Half-Year Revenue Amid Fraud-Related Challenges.
Dolla Financial Services Limited has reported strong loan growth and record revenues for the first half of 2025, even as profits were tempered by fraud-related write-offs. Despite these headwinds, the company’s leadership expressed confidence in its long-term trajectory, pointing to new internal safeguards, product refinements, and plans for additional capital raising to sustain growth.
Chief Executive Officer Kenroy Kerr opened the Q2 2025 earnings call by noting that the group’s loan portfolio grew by 49 percent year-over-year to reach J$4.5 billion. This expansion reflects robust demand across core business segments, particularly transportation and construction, and highlights the effectiveness of Dolla’s recent product enhancements. Revenue for the first half of the year came in just shy of J$1 billion, marking a record for the company and representing a 34 percent increase compared to the same period last year.
“Our top-line growth is solid and reflects the fruits of product enhancements and consistent lending activity,” Kerr told shareholders, emphasizing that the performance represents the company’s strongest half-year showing to date.
Profitability, however, was impacted by unexpected challenges. For the six months ended June, profit before tax stood at J$252 million. While this result reflected an 8 percent increase compared to the previous quarter, it also marked a 17 percent decline year-over-year. Chief Financial Officer Trevene McKenzie attributed this decline largely to a 76 percent increase in operating expenses, driven by the need for provision for fraudulent asset pledging that affected approximately three to four percent of the loan portfolio.
Management assured investors that decisive steps have already been taken to address these issues. A full review of the loan book has been completed, new credit models and collateral checks have been implemented, and additional controls have been tested for effectiveness. Importantly, recovery efforts are underway, and the company has committed that every dollar recouped will flow directly to the bottom line. “Without the impact of these fraudulent activities, we would have delivered at least a 25 percent increase in profit before tax,” Kerr explained, while stressing his confidence in a return to normalized profitability in the second half of the year.
The composition of the loan portfolio remained largely unchanged, with 93 percent of loans issued to businesses. Approximately 83 percent of loans are deemed adequately secured, a modest decline due to the recent write-offs. Non-performing loans rose to 12.8 percent, slightly above the company’s 10 percent internal target, though management noted that these primarily stem from real estate-related loans currently in the process of collateral liquidation. Once these recoveries are completed, the expectation is for the NPL ratio to move downward.
Ultra, Dolla’s private credit subsidiary, continued to play an important role in the group’s performance. Led by CEO David Henriquez, Ultra’s loan book stood at J$1.7 billion, backed by J$3.6 billion in collateral. While Ultra’s contribution to group profits was affected by provisions related to fraudulent loans, Henriquez emphasized that the business remains 100 percent secured. The subsidiary is targeting growth in its loan book to over J$2 billion by year-end while maintaining non-performing loans below industry norms.
Beyond the financials, the company also underscored its commitment to community impact and brand development. During the quarter, Dolla executed several Labour Day projects and announced world champion triple jumper Shanieka Ricketts as its first brand ambassador. Kerr described the partnership as a symbol of loyalty, excellence, and Jamaican pride, values that the company intends to continue promoting.
Looking ahead to the remainder of 2025, management’s focus will be on sustaining revenue growth, further automating processes such as collections and KYC checks, and refining loan products to better serve high-potential sectors. The company also disclosed that it is preparing for a capital raise later this year to support portfolio expansion and enhance shareholder value.
Kerr closed the call by thanking investors for their continued trust and support. “The income results for Q2 are encouraging. With the measures now in place, we are confident of renewed growth and profitability in the second half of the year,” he said.
Watch the full Earnings Call here:
