2012 Nepal Country Snapshot

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  • Let’s add the growth rates of of this from last year.GLP has doubled since 2009
  • Balanced Panel of 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WCalculations done in ExcelDepositsBalanced Panel of 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WCalculations done in ExcelIncreasing levels of Borrowers and GLPBorrowers increased at 17% in 2010 and by 9 % in 2011GLP Increased at the rate of 45% in 2010 and by 37% in 2011Though Rural Banks comprise the highest Market share of more than 50%, the NGO’s grew at a higher percentage of 67% in 2010 and 48% in 2011.Deposits and Depositors also see an increasing trend.Deposits increased by 38% in 2010 and by 53% in 2011Depositors increased by 25% in 2010 and by 40 % in 2011.Rural Bank were the highest deposit takers, the NGO’s in year 2010 had greater growth of 61% and in year 2011 the deposits in Banks grew at a rate of 71% .Rural Banks grew at 30% and 48% in year 2010 and 2011 respectively
  • Balanced Panel of 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WCalculations done in Excelhttp://www.thehimalayantimes.com/fullNews.php?headline=Microfinance+institutions+start+deviating+from+their+goals&NewsID=308797
  • Balanced Panel of 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WCalculations done in Excel
  • Balanced Panel of 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WCalculations done in Excel
  • Liabilities and equity structure calculated from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WBalanced Panel of 24 MFIBorrowings calculated from FSDB DatabaseBorrowings unBalanced Panel since downloaded from http://www.mixmarket.org/profiles-reports/funding-structure-report?rid=6t6SX4NL
  • Balanced Panel on 24 MFIData downloaded from CMA http://www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=dVYE8v8WThe Write-offs data reported to MIX is of not good quality and thus removed the write-off since it does not project the right picture of the sector
  • MJ:Wrong slide. Need to update/change.
  • 2012 Nepal Country Snapshot

    1. 1. Microfinance Information Exchange 2012 Nepal Snapshot CMF Nepal Microfinance Conference, Feb 14, 2013, Yak and Yeti Hotel, Kathmandu, NepalBy Deepika Kumari and Liz Larson 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.
    2. 2. Contents of the presentation MIX Basics Introduction Profitability Efficiency Funding Risk What can we learn about Nepal’s microfinance market with MIX data? 2This 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. 3. What is MIX? MIX Basics 2,100+ MFIs MFI Networks 150 Networks Donors and Investors 200 Funders MFI 300 Service Regulators Providers RatersWhat can we learn about Nepal’s microfinance market with MIX data? 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. 4. Nepal in South Asia Nepals MIX MFIs38373635343332313029 2008 2009 2010 2011 Avg Loan Size: 21,671 NPR Rising 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.
    5. 5. Growth rates in key areas 1,713 Crore NRS 212 Million USD 37 % 807,312 9% 741 Crore NRS 91 Million USD 53 % 1.4 Million 40 %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.
    6. 6. What institutions are driving this growth? GLP by Legal Status 250 GLP USD Millions 200 150 Rural Bank 100 Bank 50 Credit Union / Cooperative NGO - 2008 2009 2010 2011 • Growth driven by Rural Banks • All legal form growingThe GLP and Borrowers Graphs depicts the Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThis 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. 7. Are loan sizes contributing to this growth? Average Loan Balance 400 80% 350 70% 300 60% 250 50% ALB USD 200 40% 150 30% ALBGNI 100 20% 50 10% 0 0% 2008 2009 2010 2011 • Average loan balance growing • In context of economic growth, not much differenceThe ALB GNI is the Weighted Average % of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThe ALB USD is the Average Loan Balance (ALB USD= Totals of GLP divided by Total of Borrowers) of the Balanced Panel of 24 MFI’s reported through2008 to 2011 on MM 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.
    8. 8. How profitable are Nepali MFIs? ROE, top 10 Countries Nepal, ROA and ROE 30.0% 5.0% Uzbekistan 4.5% 25.0% Indonesia 4.0% 3.5% Nepal 20.0% 3.0% Ghana Percent 15.0% 2.5% ROE ROA Benin 2.0% 10.0% ROE 1.5% Georgia 1.0% 5.0% Nigeria 0.5% Brazil 0.0% 0.0% 2008 2009 2010 2011 Cambodia Kyrgyzstan• ROA and ROE steadily increasing 0% 10% 20% 30% 40%• Global context: high ROE The ROA Graphs is the weighted Average of a Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThis 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. 9. Efficiency: an analysis of costs Deconstruction of Expenses 20.0% 18.0% 16.0% 14.0% 12.0% Financial Expense Provision for Impairment Loss 10.0% Personnel Expense 8.0% Administriative Expense 6.0% Financial Revenue 4.0% 2.0% 0.0% 2008 2009 2010 2011 • MFIs’ cost of funds increasing, but not dramatically • Yields rising in tandem • All other expense categories extremely stableThe Expense Graph depicts Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM 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.
    10. 10. A deeper look at funding….. Liabilities and Equity Structure 100% • Some institutions now 90% allowed to mobilize public 80% deposits 70% • Domestic borrowings and 60% deprived sector lending still Deposits key 50% Borrowings • Slight increase in equity, 40% Equity likely due to Nepal’s stellar 30% ROE 20% 10% 0% 2008 2009 2010 2011 The Liabilities and Equity Structure Graphs depicts Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM The Borrowings (USD) is the Totals of data extract from FSDB tools on MM- unbalanced Panel of MFI’s in Year 2011 only.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.
    11. 11. A deeper look at funding…..II Funding interest rates trend 9% 8% 7% 6% 5% DFI Government 4% Other 3% Financial Institution 2% 1% 0% 2008 2009 2010 2011 • Huge increase between 2009 and 2010 • Slight decrease last year as liquidity crisis subsided The above table is an extract from the FSDB tool on Mix Market representing all the MFI’s in 2011. The Borrowings of MFI (USD) is the Totals of data extract from FSDB tools on MM- unbalanced Panel of all MFI’s in Year 2011.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. 12. How risky are microfinance clients in Nepal? PAR > 30 18% 16% 14% 12% 10% % 8% Bangladesh: 6% 6.5% 4% Pakistan: 5% 2% 0% 2008 2009 2010 2011 • PAR decreasing dramatically in recent years The PAR Graphs is the weighted Average of a Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThis 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. 13. In conclusion . . . Thank youThis 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. 14. MIX Global and Project PartnersMIX partners with a dedicated group of industry leaders: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.
    15. 15. 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, IndiaThis 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.

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