DOLLA Financial posted a sharp increase in first-quarter profit as lower loan loss provisions helped the micro-lender recover from the fallout tied to fraudulent loans last year.

Profit before tax climbed 55 per cent to $187 million for the three months ended March 2026, despite revenue growth remaining modest at two per cent. Total income for the quarter came in at $514 million.

The stronger performance was driven mainly by a sharp reduction in expected credit loss provisions, which fell 66 per cent year over year as the company moved beyond the elevated write-offs recorded in 2025.

At the same time, rising borrowing costs continued to pressure earnings.

Net interest income slipped three per cent to $389 million as interest expenses increased following Dolla’s $1.5-billion bond raise completed in January.

The results come as Dolla pushes through a more capital-intensive phase of growth. The company, which received a microcredit licence from the Bank of Jamaica in 2022, has been expanding its secured business lending portfolio while leaning more heavily on bond financing and retained earnings to support growth.

Earlier this year, the lender raised $1.5 billion through a bond issue, helping to strengthen liquidity after a difficult 2025 period marked by fraudulent loans, tighter cash conditions and elevated impairment charges.

Even so, the lender continued to grow its loan book.

Dolla’s loan portfolio expanded 15 per cent to $4.9 billion, growth the company said was driven entirely by customer repayments being recycled into new lending.

Business loans accounted for 90 per cent of the portfolio, while secured loans represented 89 per cent, reflecting what the company described as a cautious lending approach.

Management said the collateral-backed model continued to support portfolio quality, though non-performing loans remained elevated at 15 per cent. Expected credit loss coverage stood at 4.8 per cent.

Dolla’s balance sheet also strengthened during the quarter following the bond raise, with higher cash reserves helping to support liquidity as the company continues expanding its lending operations.

Earnings per share rose to seven cents from five cents a year earlier, while operational efficiency also improved.