Eagle Score Card

Annual Assessment of Par/cipa/ng Banks’  Microﬁnance Performance Based on MABS –  EAGLE Standards  Eulogio Masilungan MABS 2010 RBAP‐MABS Na.onal Roundtable Conference  Hya= Hotel and Casino, Manila  June 2‐3, 2010 

• The EAGLE assessment evaluates the performance of microfinance portfolio • A management tool for monitoring and evaluating factors affecting a rural bank’s microfinance operations • Has 5 performance areas with 13 indicators

Efficiency Asset Quality Growth Liability Structure Earnings

Measuring EFFICIENCY

EFFICIENCY (30%) • Cost Efficiency • Loan Officer Productivity (group and individual loan) • Cost per Active Borrower (group and individual loan)

Measuring ASSET QUALITY

ASSET QUALITY (30%) • PAR Over 7 Days • PAR Over 30 Days • Loan Loss Provision • Loan Loss Rate

Measuring GROWTH

GROWTH IN PORTFOLIO (10%) • Growth in Active Borrowers • Growth in Loan Portfolio

Measuring LIABILITY STRUCTURE Deposit to Loan Ratio (10%)

Measuring EARNINGS (20%)

AA: Overall weighted score of 4.25 and above - Excellent microenterprise finance performance A: Overall weighted score between 4.24 and 3.5 – Very good microenterprise finance performance B: Overall weighted score between 2.5 and 3.49 – Average microenterprise finance performance NG: Overall weighted score less than 2.49 – Below average performance

So, how did banks score for the Year 2009?

• 45 banks were evaluated • 1 scored AA 8 1 12 • 12 scored A AA • 24 scored B A • 18 No grade B 24 NG

• More banks are becoming more cost efficient % of Banks Achieving EAGLE Standard 2008 11% 2009 24% • Loan Officer productivity is generally going down. Number of Borrowers per AO 2008 2009 Individual Loans 104 94 Group Loans 299 271

• Except for Luzon, cost per active borrower is going down. • PARR over 7 and 30 days remain the same at 10% and 8%, respectively but way below the EAGLE standard of 5% and 3% respectively. • More than 10% decrease in the number of borrowers and gross microfinance loan portfolio across all regions. • More banks have 1:1 deposit to loan ratio. From 40% of the banks in 2008, to 60% in 2009. Mindanao banks need to improve their deposit generation initiatives.

• There is a slight decrease in earnings from 2008 to 2009. 2008 2009 38% 36%

MABS Specialist Banks Berns Bunao Bangko Kabayan, Bangko Luzon, Bangko Mabuhay, First Macro Bank, Limcoma RB, Rb Abucay, RB Cainta, RB Pagbilao Girlie Lopez All Bicol and Visayas Banks Jennifer Sabianan RB Gattaran, RB Mabitac, FICO, Mallig Plains, RB Solano, GM Bank, PR Bank, Agribusiness Anthony Petalcorin Mindanao Banks Jun Sanson

Thank You!

Eagle Score Card

by MABSIV on Jun 09, 2010

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Eagle Score Card — Presentation Transcript