Microlender Dolla Financial Services posted a 40 per cent increase in net profit for 2025, despite challenges from fraud and Hurricane Melissa, which inched up non-performing loans.
“The fraud definitely had a material impact on our expenses,” Group CEO Kenroy Kerr told Mayberry Investments Limited’s Investor Forum, held online. He explained that the incident involved falsified and improperly registered security documentation, including land and motor vehicle titles. The fraud drove operating expenses up by one-third to $1 billion, though it represented about four per cent of Dolla’s $4.7-billion loan portfolio.
Kerr noted that fraudulent activity is a sector-wide issue. The Bank of Jamaica reported that Internet banking fraud surged 890 per cent between 2020 and 2023, reaching $330.6 million, according to the Financial Stability Report.
For the 12 months ending December, Dolla recorded profit after tax of $574 million, up 40 per cent from $410.6 million a year earlier. Total income climbed to $2 billion, a 29 per cent increase. Kerr said the company wrote off the identified exposure and has taken steps to prevent a recurrence, including meetings with the National Land Agency and Tax Administration Jamaica to strengthen title verification. He acknowledged that enhanced due diligence may add “a day or two” to transaction processing.
Growth was driven largely by the transportation sector. “From haulage, transportation, and public passenger vehicles, we saw strong loan originations,” Kerr said. He added that 90 per cent of disbursements in 2025 were secured loans, a key pillar in maintaining loan book quality.
Non-performing loans averaged 13 per cent in 2025, up from 10 per cent the previous year. Kerr stressed that many of these loans remain adequately secured and are in the process of liquidation.
Capital rose to $1.6 billion, compared with $1.1 billion a year earlier.
luke.douglas@gleanerjm.com
