Finbond’s dividend play: a sign of strength or strategy?
Amid restructuring, the lender balances growth, risk and shareholder returns
06 March 2025 - 05:00
Finbond is a small-cap financial services company specialising in short-term consumer lending. Despite its modest market capitalisation of R360m, it operates an extensive network of 439 branches in South Africa, where it derives 66% of its revenue, and 180 branches in North America, contributing the remaining 34%.
The company primarily serves lower-income and underbanked consumers who require small short-term loans. In South Africa, the average loan size is R2,000 with an average term of 3.2 months, while in North America, the average loan size is $589 with an average term of 4.4 months. It’s a cautious lending strategy that helps Finbond mitigate credit risk...
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