Dolla Financial to Leave Guyana

Dolla Financial Services has announced the closure of its operations in Guyana after two years in the CARICOM market. The decision to wind down Dolla Guyana Inc., a subsidiary of Dolla Financial Services, was made due to geopolitical uncertainty and a reallocation of resources to Jamaica. The company had been operating in Georgetown since 2021, but now aims to focus on the Jamaican market where returns are higher. The process of closing down operations in Guyana will involve an orderly run-off of the loan portfolio, expected to be completed by March 31, 2025.

In its latest financial update, Dolla reported a net income of $1.2 billion for the year ended December 2023, representing a 58% increase over the previous year. Net profit for the same period was $419 million, a 50% increase year-over-year. Net interest income before expected credit losses grew to $1 billion, showing a 51% increase. Dolla’s subsidiary, Ultra Financier, contributed significantly to the consolidated income, emphasizing the effectiveness of its sales initiatives and demand for asset-based borrowing. The company remains committed to financial prosperity, market expansion, and creating value for shareholders through its business model.

Operating expenses for Dolla amounted to $535 million for the year, up by 58% compared to the previous year. This increase was attributed to investments in staff capacity, regulatory compliance, professional fees, and intensified marketing efforts. Expected credit losses decreased from $30 million to $15 million year over year, leading to a positive impact on profits and the loan portfolio. Dolla Guyana contributed $86.9 million in interest income for the year, showing a slight increase from the previous year. However, profit from the Guyana operation declined to $5 million, mainly due to increased foreign exchange losses.

The decision to close down operations in Guyana reflects Dolla’s strategic focus on markets with higher returns, such as Jamaica. The company’s strong financial performance in 2023, with significant increases in net income and profit, demonstrates its commitment to financial prosperity and shareholder value creation. Despite the closure of its Guyana subsidiary, Dolla remains dedicated to leveraging its business model, fortifying its loan portfolio, and emphasizing prudent risk management practices while promoting financial inclusion. The process of winding down operations in Guyana is expected to be completed by March 31, 2025, through an orderly run-off of the loan portfolio.

Overall, Dolla Financial Services’ decision to close down its operations in Guyana is based on a strategic reallocation of resources to markets with higher returns, such as Jamaica. The company’s strong financial performance in 2023, coupled with its commitment to financial prosperity and shareholder value creation, underscores its resilience and strategic focus. By winding down its operations in Guyana through an orderly run-off of the loan portfolio, Dolla aims to ensure a smooth transition while emphasizing its dedication to prudent risk management practices and financial inclusion.