1

MABS PARTICIPATING BANKS:

TRENDS, RATINGS

NATIONAL ROUNDTABLE CONFERENCE

21-22 March 2003

2

TRENDS

35 Participating BanksJanuary 2002 – January 2003

3

Total Loan Portfolio (Pesos)Jan 2002-Jan 2003

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000•Growth (jan02-jan03): 74%

•Growth # PB Units: 29%

•Growth # Active clients: 51%

•Loan size to clients: Increasing

4

% Distribution, 35 Banks, by Loan Portfolio Size, Jan. ‘03

0

5

10

15

20

<P1-3 P4-9 P10-15 P16-50

•Majority with portfolio of P3.0 M and below

•Avg. Loan Portfolio: P6.4 M

•Largest portfolio: P48.0 M

5

Average Outstanding Loan Size, By Rollout, 2000 – Jan 2003

2000* 2001* Jan 2003

Pilot Banks 3,323 4,093 6,639

1st Rollout Banks 2,523 2,925 5,337

2nd Rollout Banks 5,041 4,539 8,624

*/June data.

6

% Distribution, 35 Banks, by Average Loan Size to Clients, 2002

02468

101214

<5k 5-10k 11-16k 17-22k >23k

•Avg. loan sizes are generally small .

•2/3 of banks with avg. loan size at <P5k to P16k.

7

Average Size of Loans Disbursed Per Month, 2000 – Jan. ’03 (Pesos)

2000* 2001* Jan 2003

Pilot Banks 5,470 6,520 10,283

1st Rollout Banks 4,389 5,001 8,903

2nd Rollout Banks 7,382 7,097 14,182

*/June data.

8

Active Borrowers

Jan 2002-Jan 2003

05,000

10,00015,00020,00025,00030,00035,00040,000

Jan

2002

Feb 2

002

Mar

200

2

Apr 2

002

May

200

2

Jun

2002

Jul 2

002

Aug 2

002

Sep 2

002

Oct

200

2

Nov 2

002

Dec 2

002

Jan

2003

•Growth (Jan02-Jan03): 51%

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Loan Officer Productivity, by Rollout Individual Loans, As of Jan 2003

ROLLOUTActive

clients per loan officer

Loan portfolio per loan officer(Pesos)

Pilot100 664,164

1st Rollout88 592,673

2nd Rollout60 629,996

3rd Rollout

5th Rollout

57

34

651,407

255,442

•Higher client productivity with “age” & maturity

•Goal: 100 - 120/AO

•Avg portfolio/AO beyond break-even pt. (pilot to 3rd)

10

Account Officer Productivity, Group Loans, 4 Banks, As of Jan 2003

IndicatorBank 1 Bank 2 Bank 3 Bank 4

Active clients per loan officer 375 250 250 171

Loan portfolio per loan officer P1,137,120 P700,098 P475,829 P560,089

11

# of Active Clients Per Account Officer, 2000 – Jan 2003

2000* 2001* Jan 2003

Pilot Banks96 103 100

1st Rollout Banks 84 115 111

2nd Rollout Banks 34 67 73

*/June

12

Loan Portfolio Per AO, By Rollout, 2000-Jan 2003 (PhP)

Rollout2000* 2001* Jan ‘03

Pilot 321,966 378,879 664,164

1st

211,646 308,240 592,673

2nd

167,911 281,107 629,996

*/June data.

13

Amount of Loans Disbursed Per Account Officer, Per Month

2000* 2001* Jan 2003

Pilot Banks155,458 188,159 240,105

1st Rollout Banks 133,215 169,309 282,828

2nd Rollout Banks 122,573 172,449 312,389

*/June data.

14

# of Loans Disbursed Per Account Officer, Per Month, By Rollout, 2000 – Jan ‘03

2000* 2001* Jan ‘03

Pilot Banks 28 29 23

1st Rollout 30 34 32

2nd Rollout 17 24 22

• 5 loans disbursed weekly is do-able.*/June

15

Portfolio At Risk, All BanksJan 2002-Jan 2003

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%

Portfolio at Risk more than 7 days (%) Portfolio at Risk more than 30 days (%)

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EAGLE RATING

By Rollout Group

28 Banks

2002

17

Overall EAGLE Rating, by Rollout

ComponentPilot

(4 Banks)

1st (10 Banks)

2nd (6 Banks)

3rd (8 Banks)

All

Efficiency 3.50 2.80 2.33 1.44 2.41

Asset Quality 3.13 3.85 4.42 5.00 4.20

Growth 3.00 4.50 2.67 5.00 4.04

Liability Structure

5.00 3.50 2.83 4.50 4.32

Earnings 3.75 4.50 5.00 3.88 4.32

Overall Score 3.42 3.84 3.93 4.01 3.85

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Efficiency Indicator:Admin cost ratio*

Admin costs ratio* Score

Average, 28 Banks 28% 1

Pilot Banks Average 17% 3

1st Rollout Average 24% 2

2nd Rollout Average 22% 2

3rd Rollout Average 45% 1

*Total direct operating costs/Average gross loan portfolio.

• Goal: Reduce cost to 10% or less.

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Efficiency Indicator:AO Average Productivity, 2002

28 Banks, By Rollout

MABS Average

Pilot Banks

Average

1st Rollout Average

2nd Rollout Average

3rd Rollout Average

Loan officer productivity-Individual loans*

71 118 81 60 45

Score 2 4 3 2 1

20

Asset Quality Indicators: Average PARBy Rollout, 2002

MABS Pilot Banks 1st Rollout 2nd Rollout3rd

Rollout

>7 Days (%) 4.57 8.51(3.6 – 17.0)

5.36(1.2 - 11.8)

4.50(0.0-5.3)

1.67(0.0-3.0)

Score 5 3 4 5 5

>30 Days (%) 2.955.02

(2.4 - 8.4)

3.59(0.11-7.8)

3.04(0.18-6.4)

1.06(0.0-2.2)

Score 5 3 4 4 5

21

Growth Indicators, AverageBy Rollout, 2001 - 2002

MABS Average

Pilot Banks Average

1st Rollout Average

2nd Rollout Average

3rd Rollout Average

Growth in # of active borrowers

106% 17% 55% 42% 262%

Score 5 4 5 5 5

Growth in Loan Portfolio Balance 170% 11% 82% 68% 438%

Score 5 3 5 5 5

22

Liability Structure: Bankwide IndicatorBy Rollout, 28 Banks, 2002

MABS Average

Pilot Banks Average

1st Rollout Average

2nd Rollout Average

3rd Rollout Average

Deposit to Loan Ratio 107% 112% 79% 77% 138%

Score for Deposit to Loan Ratio

5 5 3 3 5

•# banks with 100% or over: 12 (43%)

•# banks with 50% & below: 4 (14%)

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Earnings Indicator, Average,By Rollout, 28 Banks, 2002

MABS ALL

Pilot Banks

1st Rollout2nd

Rollout3rd

Rollout

Net Revenue* (%) 40% 30% 44% 58% 27%

Score 5 4 5 5 4

*(Total financial Income – Total financial expense – Total direct operating expenses)/Average gross loan portfolio

24

THANK YOU.

25

EAGLE Rating• Efficiency

– Admin cost ratio– Loan officer productivity-individual loans– Loan officer productivity-group loans

• Asset Quality– PAR over 7 days– PAR over 30 days

• Growth in Loan Portfolio– Growth in # of active clients– Growth in gross loan portfolio balance

• Liability Structure– Overall deposit to loans ratio

• Earnings– Net earnings as % of Average gross loan portfolio

26

Active Borrowers, Trends, By Rollout, Jan’02-Jan ‘03

• Growth (Jan 02-Jan 03), 35 banks: 51%.Pilot 2,301 7% Share1st RO 20,768 61%2nd RO 8,109 24%3rd RO 2,550 8%5th RO 242Total 33,970 100%*/Less than 1% (0.7%)