Using data to understand your Rural Bank

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Ms. Elizabeth Larson, the Regional Manager for Asia of Microfinance Information eXchange shares during the RBAP-MABS National Roundtable Conference how banks could use the MIX Market Report and …

Ms. Elizabeth Larson, the Regional Manager for Asia of Microfinance Information eXchange shares during the RBAP-MABS National Roundtable Conference how banks could use the MIX Market Report and updates on its developments.

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  • 1. Session  4:   Using  data  to  understand  your  Rural  Bank     Elizabeth Larson MIX Market 2012 RBAP-MABS National Roundtable Conference June 7-8, 2012 Hyatt Hotel & Manila  
  • 2. Microfinance Information Exchange Using data to understand your Rural Bank Liz Larson, Asia Regional Manager, MIX MABS Annual Roundtable, June 2012 The Premier Source for Microfinance Data and AnalysisThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 3. Structure of the presentation Introduction to the MIX Philippines data in the global context Benchmarking your institution 3This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 4. What is MIX? MIX Basics 2,100+ MFIs MFI Networks 150 Networks Donors and Investors 200 Funders MFI 300 Service Regulators Providers Raters New MIX Silver Membership 4This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 5. Enhanced market intelligence Quarterly update report on the Philippines’ market Get smart quickly on markets monitor market trends and Overview of the market ecosystem, news developments and legal / regulatory info for Philippines’ market 5This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 6. MIX barometer Cambodia:  Gross  Loan  Portfolio  (USD)  -­‐ Amount Bosnia and Herzegovina Actuals Estimates 40% Individual  MFI  forecasts  (weighted  average) Portfolio at risk change factors - Bosnia and Herzegovina Country  outlook  (average) Client Indebtedness Country  outlook  (+/-­‐ 1  std  deviation) 35% 3,000Millions Competition Ghana:  Borrowers  -­‐ Amount 30% 2,500 Actuals Estimates Individual  MFI  forecasts  (weighted  average) 25% Country  outlook  (average) 2,000 Country  outlook  (+/-­‐ 1  std  deviation) 0.7 20% (In  U SD) Millions 1,500 Macroeconomic 0.6 environment 15% 1,000 0.5 New product offering 10% 0.4 500 5% Market penetration 0.3 0 Forecast Other Political/Regulatory Funding 31/03/2008 30/06/2008 30/09/2008 31/03/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2010 30/09/2010 31/03/2011 30/09/2011 31/12/2011 31/03/2012 30/09/2012 31/12/2012 31/12/2007 31/12/2008 30/06/2009 31/12/2010 30/06/2011 30/06/2012 0.2 0% framework 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0.1 Portfolio/Borrowers growth drivers - Bosnia and Herzegovina Forecast 0.0 31/12/2007 31/03/2008 30/06/2008 30/09/2008 31/03/2009 30/06/2009 30/09/2009 31/12/2009 31/03/2010 30/06/2011 30/09/2011 31/12/2011 31/03/2012 30/06/2012 30/09/2012 31/12/2008 30/06/2010 30/09/2010 31/12/2010 31/03/2011 31/12/2012 As well as a "factors" report MFI reported forecast highlighting MFI reported drivers of growth and risk 6 This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 7. Cross market analysis reports Run benchmarking reports on over 100 Premium only financial and social indicators for peers and competitive analysis Build and update models Get smart quickly on markets Carry out MFI due diligence Monitor market trends and developmentsThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 8. Thank you to the RBs which provide quarterly data:•  1st Valley Bank*•  Bangko Mabuhay*•  GM Bank of Luzon*•  Bangko Kabayan•  CARD Bank•  PBCThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 9. Structure of the presentation Introduction to the MIX Philippines data in the global context Benchmarking your institution 9This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 10. Microfinance Data on Philippines Avg Loan Size: 10,067 PHP (230 USD) Stable Number of Borrowers in Asia Number of Borrowers in East Asia 10This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 11. Microfinance Data on Philippine Rural Banks ROA   2.15%   Increasing   ROE   10.37%   Decreasing   Yield  (real)   21.24%   Increasing   Offices   12   Increasing   Total  expense/  assets   20.16%   Increasing   Number  of  acKve  borrowers   20,541   Increasing   Cost  per  loan   95   Stable   Gross  Loan  PorUolio   13,398,491   Increasing   Loans  per  loan  officer   510   Increasing   Average  Loan  Size  (USD)   524   Increasing   Average  Deposit  Acct    (USD)   234   Increasing  Data represent medians 11 This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 12. 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 declineThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 13. RBs Funding Structure Panel of 17 largest RBs: Biggest growth in DepositsThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 14. 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 14This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 15. Structure of the presentation Introduction to the MIX Philippines data in the global context Understanding your RB with data 15This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 16. 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. 16This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 17. Example: RB X vs. All rural Banks RB X is a typically sized rural bank, with a higher loan size and slightly better returns than average. 17This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 18. RB X also more profitable than peers by size ….RB X also has great returns for its size. What is behind the high returns? 18This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 19. High revenues RB X keeps consistent healthy gap between expenses and revenues. Can we further understand the higher cost structure?*weighted average 19 This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 20. Higher costs structure across the board ….due to higher personnel and admin costs. 20This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 21. Increasing efficiency, but rising costs ….RB X has simultaneous rising costs and increasing efficiency. 21This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 22. Decreasing expense ratios driven by increasing asset base ….an increasing asset base and high growth. 22This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 23. In sum: RB X, an interesting case §  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. 23This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 24. Benefits of reporting to MIX – its EASY!!!  Compare your data against your peers  Analyze the trends of your MFI  Understand your performance  Attract investors  Show your commitment to transparency  For Quarterly Data: you get access to MIX Silver!!!!  Contact Liz Larson for more information: elarson@themix.orgThis presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 25. MIX Global and Project PartnersMIX partners with a dedicated group of industry leaders: 25This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
  • 26. Microfinance Information Exchange Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Visit us on the Web: www.themix.org ♦ www.mixmarket.org Regional Offices: Baku, Azerbaijan Contact us: info@themix.org 44 J. Jabbarli st. Caspian Plaza I, 5th Floor, Baku, Azerbaijan Interested in learning more about MIX? Lima, Peru Sign up to receive our free e-mail Jirón León Velarde 333 Lince, Lima 14, Perú newsletters! Rabat, Morocco Immeuble CDG Place Moulay Hassan BP 408 Rabat Morocco Find us on Facebook Follow us on Twitter: @mix_market Hyderabad, India Road #12, Landmark Building, 5th Floor, Banjara Hills, Hyderabad 500034, India 26This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.