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 Analysis
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.

3.
Structure of the presentation
Introduction to the MIX
Philippines data in the global context
Benchmarking your institution
3
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.

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
4
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.
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 5
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.
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%
3,000
Millions
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
developments
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.
Thank you to the RBs which provide quarterly
data:
• 1st Valley Bank*
• Bangko Mabuhay*
• GM Bank of Luzon*
• Bangko Kabayan
• CARD Bank
• PBC
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.

9.
Structure of the presentation
Introduction to the MIX
Philippines data in the global context
Benchmarking your institution
9
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.
Microfinance Data on Philippines
Avg Loan Size: 10,067 PHP (230 USD)
Stable
Number of Borrowers in Asia Number of Borrowers in East Asia
10
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.
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
decline
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.

13.
RBs Funding Structure
Panel of 17 largest RBs: Biggest growth in Deposits
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.

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
14
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.
Structure of the presentation
Introduction to the MIX
Philippines data in the global context
Understanding your RB with data
15
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.

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.
16
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.

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.
17
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.

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?
18
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.

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.
20
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.

21.
Increasing efficiency, but rising costs
….RB X has simultaneous rising costs and increasing efficiency.
21
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.

22.
Decreasing expense ratios driven by increasing
asset base
….an increasing asset base and high growth.
22
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.

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.
23
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.

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.org
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.

25.
MIX Global and Project Partners
MIX partners with a dedicated group of industry leaders:
25
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.

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
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Baku, Azerbaijan
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26
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.