In the world of microlending, Dolla Financial Services Limited is setting its sights high for the coming year. With ambitious plans to increase its loan book by a staggering 50%, from $4 billion to $6 billion, the company is gearing up for a period of substantial growth and expansion.
Key Points:
- To achieve its target, Dolla Financial will be focusing on both boosting profits and securing new funds for loan disbursement in the latter part of 2025. This strategic approach, outlined by CEO Kenroy Kerr at the recent Mayberry Investor Forum, aims to ensure a steady stream of disbursements throughout the year, setting the stage for success.
- Last year proved to be a momentous one for Dolla Financial, as it managed to double its loan book to $4 billion by leveraging funds raised in the debt market to fuel its lending activities. Looking ahead, the company is setting its sights even higher, with Chief Financial Officer Trevene McKenzie expressing aspirations to raise between $2 billion to $2.5 billion this year. This targeted fundraising effort reflects Dolla Financial’s unwavering commitment to growth and expansion.
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Despite facing a slight increase in non-performing loans (NPLs) – loans that have not been serviced for more than 90 days – Dolla Financial remains optimistic about its financial performance. With NPLs hovering at around nine percent, the company still maintains a favorable position relative to the industry average of 16 percent. McKenzie anticipates a reversion to eight percent, underscoring the company’s resilience in navigating challenging economic landscapes.
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Dolla Financial’s subsidiary company, Ultra Financial, plays a crucial role in the company’s loan portfolio, managing $1.5 billion in loans. Specializing in larger loans backed by stocks or luxury items as collateral, Ultra Financial has set its sights on a loan book of $2.5 billion by the end of 2025. Ultra Financial CEO David Henriques is optimistic about this target, citing the company’s rapid growth trajectory over the past two years. With an average loan size of $12 million and a $100 million limit at Ultra, the company is well-positioned for further expansion and success.
Ultimately, Dolla Financial Services Limited is poised for a year of significant growth and achievement. With a clear strategic vision, a focus on profitability, and a commitment to enhancing its loan disbursement activities, the company is well-positioned to reach new heights in the microlending industry. As Dolla Financial embarks on this exciting journey, all eyes will be on its progress and the realization of its ambitious goals.
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