2008 microfinance trends in asia

Liz Larson, Asia Regional ManagerMicrofinance Information eXchange (MIX)

2008 Microfinance Trends in Asia

2010 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE, June 2, 2010

Trends in Asia: structure of the presentation

Introduction to MIX: data platforms Snapshot of the Sector: MIX 2008 Trends and

Benchmarks How do Philippine rural banks compare with their

regional peers in microfinance Areas of strength of rural banks over their regional

counterparts Areas of improvement that Philippine rural banks

find from the MIX market reports

Limited ability for MFIs to benchmark performance for management diagnostic and business planning

New capital cannot connect with second tier MFIs Donors / policy makers have limited picture of areas requiring

public support

… because … Lack of consistent, reliable data in public domain Private data costly to aggregate on representative scale and

coverage for any single actor

Lack of transparency

stymies industry growth

The Problem: Overcoming data dearth

MISSION: To support the growth of the microfinance industry through a world-class public information platform

Promotes sound investmentsIncreases comfort level of investorsReduces cost of investing in microfinanceImproves microfinance providers’ performanceStrengthens market surveillance and public support

MIX is a catalyst for growth

because good Information …

Our Contribution: A Catalyst for Growth

Data Platforms MicroBanking Bulletin is a global leading publication on the sector

Customized Performance Reports (CPR) are performance reports for MFIs.

MIX Market is an online information platform – a global clearinghouse for performance and outreach information

Regional and Country level analysis reports on microfinance performance and sector analysis

Working with PartnersMIX Partners (examples):

Latin America• ProDesarrollo

• REDCAMIF (C. America)• COPEME (Peru)

• RFR (Ecuador)• ASOFIN (Bolivia)

Africa• Ghamfin (Ghana)• AEMFI (Ethiopia)

Arab States• Sanabel

E. Europe / C. Asia• RMC (Russia)

• AMFA (Azerbaijan)

Asia• PMN (Pakistan)

• M-Cril (India)• MPCI/RBAP (Philippines)

• MICRA (East Asia)• CMF (Nepal)

• RMDC (Nepal)• MISFA (Afghanistan)

Asia Coverage: MIX Market Growth

State of the Sector Overview: Where the borrowers are

The bulk of the borrowers in Asia are in Bangladesh and India, whilst the bulk of the GLP is dominated by the same. Loan sizes vary significantly.

Source: MIX Market, missing Vietnam, BRI

Growth across the world

Growth slowed across the globe, but total growth in borrowers in Asia remained the same.

Source: MIX Market trend data

State of the Sector: Growth Rates in Asia

Borrowers grew steadily across the region in most countries while growth in loan portfolio was mixed.

Source: MIX Market trend data

Financial Performance: Expense Ratios and Revenue – Asia, 2006-2008

Almost every market in Asia is profitable with a mixture of trends.

Financial Performance: ROA Trend Data – Asia, 2006-2008

Diverse range of ROA trends across the region; larger market, deposit-reliant SE Asian MFIs remain the most stable; India had largest increase

Source: MIX Market

Global Funding Liabilities by Lender Type - Global, 2008

Source: MIX Funding Liability Database

Funding Liabilities by Lender Type – Asia, 2008

Source: MIX Funding Liability Database

Domestic and International Funding Liabilities, Asia 2008

Source: MIX Funding Liability Database

Philippines Rural Banks vs. NGOs

Depositors and GLP in the Philippines

Average Profit Margin, Operating Expense Ratio - 2008

Growth in borrowers (%) and depositors between rural banks globally and rural banks in Philippines

What areas of improvement can Philippine rural banks find from the MIX Market reports?

You can measure your MFI against Rural Banks in the Philippines You can see if your expense ratios are higher or lower than your

peers You can see if your financing structure is similar or different than

your peers You can learn about the products of your peers – and your costs of

delivering your products to your clients You can find out if you are paying your staff more or less than your

peers And you can see how your performance is changing over time

How to participate to MM

Provide current data to MABS or MCPI Audited financial statements One page questionnaire (outreach, product, portfolio,

background of organization) Deadline: August 2009 – elarson@themix.org

All benchmarked institutions receive Custom Performance Report Trend Report (with 2-3 years data) Recognition in MicroBanking Bulletin (MBB) Inclusion in analytical reports Profile on MIX Market site for global visibility

MICROFINANCE INFORMATION EXCHANGE, INC.The leading provider of business information and data services for the

microfinance industry.

Web: www.themix.org; www.mixmarket.org

Email: elarson@themix.org

Headquarters:

1901 Pennsylvania Ave., NW, Suite 307Washington, D.C. 20006 USA

Other Locations

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