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Cooperative Financial Performance (PESOS Indicators)

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Shows the table for financial performance indicators of cooperatives including the formulas

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Cooperative Financial Performance (PESOS Indicators)

  1. 1. Financial Performance (PESOS Indicators) RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL P- Portfolio Quality (25%) Portfolio at risk Balance of loan with one day missed payment Total loan outstanding Measures the risk of default risk in the portfolio. 5% or less • 5% or less • 6-10% • 11-15% • 16-20% • 21-25% • 26% and above 15 12 9 6 3 0 Allowance for probable losses on loan Amount of allowance for loans over 12 months past due Total outstanding balance of loans over 12 months past due Amount of allowance for loans 1 to 12 months past due Outstanding balance of loans 1 to 12 months past due Measures the adequacy of the allowance for probable losses o loans 100% 35% PLL1 100% 80-99% 60-79% 36-59% 10-35% 9% and below PLL2 35% 25-34% 17-24% 9-16% 1-8% 0 5 4 3 2 1 0 5 4 3 2 1 0 E- Efficiency (20%) Asset Yield Undivided Net surplus Average total assets Measures the ability of he coop’s assets to generate income At least inflation rate • At least inflation rate • 1-2%below inflation rate • 3-4%below inflation rate • more than 4% below inflation rate • 0 or negative asset yield 4 3 2 1 0 1
  2. 2. RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL Operational self sufficiency Interest income from loans + service fee + filing fee +fines, penalties, surcharges Financing Cost + admin cost Measures the a bility the cooperatives to sustain its operations >100% • 120% and above • 111-119 • 101-110% • 100% • below 100% 4 3 2 1 0 Rate of return on members’ share Interest on Share Capital Average member’s share Measures the earning power of the member Higher than inflation rate • Higher than inflation rate • Inflation rate • 1-2% below inflation rate • more than 2% inflation rate • Zero or negative ROR 4 3 2 1 0 Loan Portfolio profitability Interest income from loans + service fee+ filing fees + fines, penalties, surcharges Average total loans outstanding Measures how profitable the loan the loan portfolio is More than 20% • 20% and above • 13-19% • 7-12% • 1-6% • 0 or negative 4 3 2 1 0 Cost per peso loan Financing cost + (admin cost- members’ benefit expense) Average total loan outstanding Measures efficiency in managing the coops loan portfolio Php .10 per Php 1.00 loan • .10 and below • .11 to 0.15 • .16-.20 • above .20 2 1.5 1 0 Administrative efficiency Administrative cost Average total assets Measures the cost of managing the coop’s asset 3 to 10% • 10% and below • 11-15% • 16-20% • above 20% 2 1.5 1 0 2
  3. 3. RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL S –Stability (30%) Solvency (Assets + allowances)- (total liabilities – Deposits + past due loans + loans re structured + loans under litigation) Deposits + share capital Measures the degree of protection that the coop has for member savings and shares in the event of liquidation of he coop’s assets and liabilities At least 110% • 110 and above • 100-109% • 90-99% • 80-89% • 70-79% • below 70% 10 8 6 4 2 0 Liquidity Liquid assets – short terms payables Total deposits Measures the coop ability to service its members withdrawal and deposit on time Not less than 15% • 15% and above • 12-14% • 9-11% • 6-8% • 1-5% • 0 10 8 6 4 2 0 Net institutional capital (Reserves +allowance from probable losses )- (past due loans + loans under litigation + problem asset) total assets Measures the level of institutional capital after subtracting the losses. At least 10% • 10% and above • 7-9% • 5-6% • 3-4% • 1-2% • 0 10 8 6 4 2 0 O- Operations (10%) Performance of membership growth Actual interest in the number of members Target increase in the number of members Determines the performance of change in membership vis-à- vis target Target set in the development • 75-100% of Target • 50-74% • 25-49% • 1-24% • status quo • decreasing or without 5 4 3 2 1 0 3
  4. 4. development plan RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL Trend in external borrowings Ending external borrowings -beginning external borrowings Beginning external borrowings Determine the percentage of change in external borrowings Decreasing towards zero • No external borrowings • Decreasing compared to previous period • Status quo • Increasing compared to previous period 5 3 2 0 S – Structure of Assets (15%) Asset Quality Non earning assets Total Asset Measure the percentage of total assets that are not producing income. Not more than 5% • 5% and below • 6-7% • 8-9% • 10-11% • 12-13% • 14% and above 5 4 3 2 1 0 Asset Structure Total deposits Total Assets Measures the percentage of total assets finance b deposits 55-65% • 55-65% • 45-54%/66-70% • 34-44% / 71-75% • below 35% or above 75% 5 3 1 0 Total loan receivables Total assets Measures the percentage of total assets invested in the loan portfolio 70-80% 70-80% 60-69% or 81-85% 50-59% /86-90% 40-49% / 91-95% 39% and below / 96% and below 2 1.5 1 0.5 0 Total member share capital Total assets Measures the percentage of total 35-45% 35-45% 30-34% /46-55% 3 2 4
  5. 5. assets financed by members’ share capital 25-29% / above 26% below 25% 1 0 5
  6. 6. assets financed by members’ share capital 25-29% / above 26% below 25% 1 0 5

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