liz larson mix presentation_mabsrndtbl2012

The Premier Source for Microfinance Data and Analysis

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Microfinance Information Exchange

Using data to understand your Rural Bank

Liz Larson, Asia Regional Manager, MIXMABS Annual Roundtable, June 2012


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Structure of the presentation


MIX Basics

MFI

Donors and Investors

Raters

MFI Networks

Regulators

What is MIX?

3


Overview of the market ecosystem, news and legal / regulatory info for Philippines’

market

Overview of the market ecosystem, news and legal / regulatory info for Philippines’

market

Quarterly update report on the Philippines’ market

Quarterly update report on the Philippines’ market

4

Enhanced market intelligence

Get smart quickly on marketsmonitor market trends and

developments


Client Indebtedness

Macroeconomic environment

Competition

Political/Regulatory framework

Funding

Market penetration

New product offering

Other

0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Portfolio at risk change factors -Bosnia and Herzegovina

Portfolio/Borrowers growth drivers - Bosnia and Herzegovina

Bosnia and Herzegovina

Client Indebtedness

Macroeconomic environment

Competition

Political/Regulatory framework

Funding

Market penetration

New product offering

Other

0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Portfolio at risk change factors -Bosnia and Herzegovina

Portfolio/Borrowers growth drivers - Bosnia and Herzegovina

Bosnia and Herzegovina

0

500

1,000

1,500

2,000

2,500

3,000

31/12/2007 31/03/2008 30/06/2008 30/09/2008 31/12/2008 31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 31/12/2012

(In USD)Millions

Cambodia: Gross Loan Portfolio (USD) - AmountActualsEstimatesIndividual MFI forecasts (weighted average)Country outlook (average)Country outlook (+/- 1 std deviation)

Forecast0

500

1,000

1,500

2,000

2,500

3,000

31/12/2007 31/03/2008 30/06/2008 30/09/2008 31/12/2008 31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 31/12/2012

(In USD)Millions

Cambodia: Gross Loan Portfolio (USD) - AmountActualsEstimatesIndividual MFI forecasts (weighted average)Country outlook (average)Country outlook (+/- 1 std deviation)

Forecast

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

31/12/2007 31/03/2008 30/06/2008 30/09/2008 31/12/2008 31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 31/12/2012

Millions

Ghana: Borrowers - AmountActualsEstimatesIndividual MFI forecasts (weighted average)Country outlook (average)Country outlook (+/- 1 std deviation)

Forecast0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

31/12/2007 31/03/2008 30/06/2008 30/09/2008 31/12/2008 31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/12/2010 31/03/2011 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 31/12/2012

Millions

Ghana: Borrowers - AmountActualsEstimatesIndividual MFI forecasts (weighted average)Country outlook (average)Country outlook (+/- 1 std deviation)

Forecast

MFI reported forecastMFI reported forecast

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MIX barometer

As well as a "factors" report highlighting MFI reported

drivers of growth and risk

As well as a "factors" report highlighting MFI reported

drivers of growth and risk


Run benchmarking reports on over 100 Premium only financial and social indicators

for peers and competitive analysis

Run benchmarking reports on over 100 Premium only financial and social indicators

for peers and competitive analysis

Cross market analysis reports

Build and update modelsGet smart quickly on marketsCarry out MFI due diligenceMonitor market trends and

developments


• 1st Valley Bank*• Bangko Mabuhay*• GM Bank of Luzon*• Bangko Kabayan• CARD Bank• PBC

Thank you to the RBs which provide quarterly data:


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Microfinance Data on Philippines

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Avg Loan Size: 10,067 PHP (230 USD)

StableStable

Number of Borrowers in Asia Number of Borrowers in East Asia


Microfinance Data on Philippine Rural Banks

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ROA 2.15% IncreasingROE 10.37% DecreasingYield (real) 21.24% IncreasingOffices 12 IncreasingTotal expense/ assets 20.16% IncreasingNumber of active borrowers 20,541 IncreasingCost per loan 95 StableGross Loan Portfolio 13,398,491 IncreasingLoans per loan officer 510 IncreasingAverage Loan Size (USD) 524 IncreasingAverage Deposit Acct (USD) 234 Increasing

Data represent medians


RBs Growth Rates and Profitability

Growth Rates (borrowers):• Declining for both RBs and NGOs• Spike in 2008 is due to CARD Bank’s record year

ROA (weighted avg):• Very stable, on slight decline


RBs Funding Structure

Panel of 17 largest RBs: Biggest growth in DepositsPanel of 17 largest RBs: Biggest growth in Deposits


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Apex – level lending rates in EAP (bank to MFI)

Interest rates low

compared to region

Interest rates same for NGOs and

RBs

Local FIs most active


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What can you learn about your Rural Bank by peer comparisons?

By using comparative data you can:

Better understand your Rural Banks’ achievements and areas of low performance;

Accurately portray a robust institutional snapshot to BODs, managers and funders;

See how productively you are using your resources;

Theorize new ways of running a better business and make better informed management decisions.


Example: RB X vs. All rural Banks

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RB X is a typically sized rural bank, with a higher loan size and slightly better returns than average. RB X is a typically sized rural bank, with a higher loan size and slightly better returns than average.


RB X also more profitable than peers by size

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….RB X also has great returns for its size. What is behind the high returns?….RB X also has great returns for its size. What is behind the high returns?


High revenues

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RB X keeps consistent healthy gap between expenses and revenues. Can we further understand the higher cost structure?RB X keeps consistent healthy gap between expenses and revenues. Can we further understand the higher cost structure?

*weighted average


Higher costs structure across the board

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….due to higher personnel and admin costs.


Increasing efficiency, but rising costs

20….RB X has simultaneous rising costs and increasing efficiency.….RB X has simultaneous rising costs and increasing efficiency.


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Decreasing expense ratios driven by increasing asset base

….an increasing asset base and high growth.


In sum: RB X, an interesting case

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Medium sized MFI, profitable with strong growth;

Increasingly efficient use of resources with higher cost structure than peers;

Increasing cost per borrower not enough to change bottom line in context of high growth.


Compare your data against your peersAnalyze the trends of your MFIUnderstand your performanceAttract investorsShow your commitment to transparencyFor Quarterly Data: you get access to MIX Silver!!!!

Contact Liz Larson for more information: [email protected]

Benefits of reporting to MIX – its EASY!!!


MIX partners with a dedicated group of industry leaders:

MIX Global and Project Partners

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Microfinance Information Exchange

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liz larson mix presentation_mabsrndtbl2012

Economy & Finance