microfinance americas: the top 100: 2009 by IDB

Microfinance AMERICAS 2009

THE

100 T

O P

MicAmericas is a new web-based knowledge platform on microfinance and microenterprise development in Latin America and the Caribbean. As its predecessor, MicroEnterprise Americas magazine, the MicAmericas website offers research, news, features, comprehensive analysis and stories on business cases that include micro and small businesses. And all in Spanish. We invite you to explore the microenterprise world in the region. In Spanish!

www.iadb.org/micamericas

research c trends c features c analysis

Micamericas templates are beta samples. Subject to change.

Microenterprises and microfinance speak all languages But they speak Spanish in MicAmericas.

AMERICAS: THE TOP 100

Microfinance Information Exchange (MIX)

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Ma^ Bgm^k&:f^kb\Zg =^o^ehif^gm ;Zgd bl ghm k^lihglb[e^ _hk ma^ ^]bmhkbZe \hgm^gm h_ Fb\khÖgZg\^ :f^kb\Zl *))4 ma^ ob^pl ^qik^ll^] bg ma^ Zkmb\e^l Zk^ mahl^ h_ ma^ Znmahkl' ISSN 1811-2013

Cover by Gary Eldridge/Images.com

www.iadb.org/micamericas

FROM THE MANAGER a^ FnembeZm^kZe Bgo^lmf^gm ?ng] Zg] ma^ FBQ Zk^ ie^Zl^] mh ik^l^gm ma^ +))2 Fb\khÖgZg\^ :f^kb\Zl *))% mabl r^ZkÍl kZgd& bg` h_ fb\khÖgZg\^ bglmbmnmbhgl !F?Bl" bg EZmbg :f^kb\Z Zg] ma^ <Zkb[[^Zg' Mabl r^ZkÍl kîhkm aZl [^^g lb`gbÖ\Zgmer bfikho^] Zg] ni`kZ]^]' ?hk ma^ Öklm mbf^% ma^ kîhkmÍl fZbg kZgdbg` bl [Zl^] hg Z \hf[bgZ& mbhg h_ bg]b\Zmhkl kZma^k maZg lbfier lbs^' :l h_ mabl ^]bmbhg% ma^ mhi fb\khÖgZg\^ bglmbmnmbhgl pbee Z\abô^ ma^bk kZgdbg` [Zl^] hg mak^^ Zk^Zl h_ i^k_hkfZg\^3 hnmk^Z\a% ^__b\b^g\r Zg] mkZgliZk^g\r' P^ [êbô^ maZm \hf[bgbg` ma^l^ _Z\mhkl fhk^ Z\\nkZmêr k^_e^\ml ma^ bfiZ\m F?Bl Zk^ aZobg` bg ma^ k^`bhg' :l pbma Zee kZgdbg`l% mabl hg^ pbee gh ]hn[m ikhohd^ ]^[Zm^ Zg] ]bl\nllbhg' P^ ahi^ maZm bm pbee \Znl^ mahl^ Zm ma^ mhi h_ ma^ kZgdbg` mh phkd aZk] mh lmZr ma^k^ Zg] hma^kl mh phkd ô^g aZk]^k mh bfikho^ ma^bk lmZg]bg`' Fb\khÖgZg\^ :f^kb\Zl *))Éma^ kZgdbg`Éebd^ ma^ Fb\khl\hi^ h_ ma^ Fb\khÖgZg\^ ;nlbg^ll >gobkhgf^gm% bl [Zl^] hg hnk ob^p maZm dghpbg` Zg] Z]]k^llbg` hg^Íl p^Zdg^ll^l bl d^r mh fhobg` iZlm ma^f' Fb\khÖgZg\^ :f^kb\Zl *)) ikhob]^l ^ll^gmbZe bg_hkfZmbhg _hk ma^ fb\khÖgZg\^ bg]nlmkr bg ma^ k^`bhg Zl ma^r phkd mhpZk] ^qiZg]& bg` ma^ Z\\^ll mh ÖgZg\bZe l^kob\^l mh ma^ fbeebhgl h_ \nkk^gmer ng]^k& l^ko^] fb\kh^gm^kikbl^l' Ma^ FB?% makhnà Fb\khÖgZg\^ :f^kb\Zl *))% ma^ Fb\khl\hi^ Zg] bml hma^k Z\mbobmb^l% pbee \hgmbgn^ mh ikhob]^ ma^ lniihkm maZm pbee Zeehp nl mh Z\abô^ mabl `hZe' P^ bgobm^ rhn mh ^gchr mabl g^p ^]bmbhg h_ Fb\khÖgZg\^ :f^kb\Zl *))'

JULIE T. KATZMAN General Manager Multilateral Investment Fund

ARLETTE PEDRAGLIO, IDB

Microfinance

MICROFINANCE AMERICAS: THE TOP 100

2009

Microfinance THE

100 : AMERICAS T

O P

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MICROFINANCE AMERICAS: THE TOP 100

2009

GARY ELDRIDGE/IMAGES.COM

MICROFINANCE AMERICAS: TOP 100

2009

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DO YOU WANT TO KNOW MORE? This report contains only a small portion of the information available on Latin American and Caribbean MFIs. For further statistical data, go to: www.mixmarket.org > Microfinance Institutions.

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COMPOSITE RANKING Mabl r^Zk% Fb\khÖgZg\^ :f^kb\Zl *)) !ik^obhnler Ma^ <aZfibhglabi E^Z`n^" eZng\a^] Z g^p kZgdbg` [Zl^] hg ma^ f^mah]heh`r ^lmZ[ebla^] [r ma^ FBQ @eh[Ze *)) <hfihlbm^Épab\a kZgdl

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THE TOP FIVE MFIs: 1. Credi Fé, a lending subsidiary of Banco del Picincha in Ecuador, took first place in the composite ranking with outstanding performance indicators in the efficiency pillar, due to the synergies associated with showing the lowest operating costs relative to portfolio generated for the bank’s main office, the largest in the country with a national presence. 2. MiBanco of Peru took second place in the composite ranking based on its second place in the outreach pillar, a result of its 45.3% growth in microenterprise lending (20.9% above the regional average and 24% above the Peruvian average) and due to its high level of deposits captured, which allowed it to finance the significant increase in loans placed. 3. The Foundation for Microentrepreneurial Development—Ecuador Alliance Mission, D-Miro—came in third place in the composite ranking and 11th place in the efficiency pillar. Its loans are among those with broader

MICROFINANCE AMERICAS: THE TOP 100

2009

outreach, benefiting microentrepreneurs in Guayaquil and five other coastal cities in Ecuador. Also, it was the best placed non-regulated institution in the composite ranking. 4. FINCA Bank of Ecuador came in fourth place; the MFI obtained similar results in the outreach and efficiency pillars. The increased number of loans placed allowed it to distribute costs across a wider base of borrowers, which had a positive influence on its efficiency indicators. Its conversion from a financial institution into a bank in early 2008 allowed it to continue to reach synergies and enhance its image in the market. 5. PRODEM S.A. of Bolivia (a private financial fund) was able to place in the top five institutions due to a third place in the outreach pillar. It was able to significantly increase its number of deposit accounts (up to 4.3 times the number of total loans), demonstrating that its liability products are vital to reaching the critical mass of rural clients.

TOP 100 MFIs IN LATIN AMERICA & THE CARIBBEAN Ranking

Name of MFI

Country

Score

Outreach Pillar

TransEfficiency parency Pillar Pillar

General Trend †

Credi Fé

Ecuador

82.20%

MIC

MiBanco

Peru

80.90%

MIC Only MIC

D-Miro

Ecuador

80.56%

FINCA - Ecuador

Ecuador

79.76%

MIC

PRODEM FFP

Bolivia

79.65%

MIC

CrediAmigo

Brazil

79.52%

Only MIC

FIE FFP

Bolivia

79.09%

MIC

CompartamosBanco

Mexico

78.37%

MIC

FONDESOL

Guatemala

77.07%

Only MIC

BancoSol

Bolivia

76.88%

MIC

10 11

Banco ADOPEM

Dominican Republic

76.83%

MIC

Central Cresol Baser

Brasil

76.14%

MIC

CrediComún

Mexico

76.11%

Only MIC

FMM Popayán

Colombia

76.04%

MIC

Caja Nuestra Gente

Peru

75.95%

MIC

Banco Solidario

Ecuador

75.54%

MIC

EcoFuturo FFP

Bolivia

75.48%

MIC

WWB Cali

Colombia

75.28%

MIC

Crediscotia

Peru

75.21%

CNS

Financiera Edyficar

Peru

74.45%

MIC

CMAC Arequipa

Peru

74.39%

102

MIC

EDPYME Crear Arequipa

Peru

74.33%

MIC

PRISMA

Peru

74.31%

Only MIC

AgroCapital

Bolivia

74.25%

MIC

CMAC Sullana

Peru

73.64%

MIC

Banco Los Andes ProCredit

Bolivia

73.60%

MIC

ENLACE

El Salvador

73.24%

MIC

FinAmérica

Colombia

73.04%

MIC

BanGente

Venezuela

72.84%

MIC

FMM Bucaramanga

Colombia

72.69%

MIC CNS

Banco Familiar

Paraguay

72.56%

139

Génesis Empresarial

Guatemala

72.31%

MIC

EDPYME Confianza

Peru

72.30%

MIC

CMAC Huancayo

Peru

71.70%

MIC

Fundación Paraguaya

Paraguay

71.27%

123

MIC

CRECER

Bolivia

70.99%

Only MIC

Fundación Mario Santo Domingo

Colombia

70.77%

103

MIC

CRAC Señor de Luren

Peru

70.74%

MIC

COAC San José

Ecuador

70.24%

108

MIC

Banco ProCredit - Nicaragua

Nicaragua

69.91%

MIC

Cooperativa 20 de Abril

Nicaragua

69.38%

MIC

Apoyo Integral

El Salvador

69.16%

112

MIC

EDPYME Solidaridad y Desarrollo

Peru

69.06%

Only MIC

Fundación CAMPO

El Salvador

68.31%

MIC

BANEX

Nicaragua

68.23%

102

CNS

ADRA - Peru

Peru

68.11%

108

Only MIC

CRAC Los Andes

Peru

68.02%

MIC

CMAC Ica

Peru

67.65%

114

MIC

EDPYME Proempresa

Peru

67.64%

121

MIC

FINCA - Peru

Peru

66.82%

111

Only MIC

† By general trend is understood: Only MIC: 100% of the loans are toward microenterprise. MIC: Loans to microenterprise surpass 50% of total loans. CNS: Consumer loans surpass 50% of total loans. Source: MIX

www.iadb.org/micamericas

MICROFINANCE AMERICAS: THE TOP 100

2009

TOP 100 MFIs IN LATIN AMERICA & THE CARIBBEAN Ranking

Name of MFI

Country

Score

Outreach Pillar

Efficiency Pillar

Transparency Pillar

General Trend †

Interactuar

Colombia

66.57%

116

MIC

EDPYME Nueva Visión

Peru

66.35%

MIC

Credicoop

Chile

65.69%

107

Only MIC

COOPAC Santo Cristo

Peru

65.58%

123

CNS

PRESTANIC

Nicaragua

65.58%

141

MIC

FUBODE

Bolivia

65.46%

108

MIC

AMC de R.L.

El Salvador

65.13%

MIC

EDPYME Alternativa

Peru

64.80%

MIC Only MIC

FINCA - Guatemala

Guatemala

64.51%

136

Banco ADEMI

Dominican Republic

64.44%

MIC

COOPROGRESO

Ecuador

64.32%

MIC

Visión Banco

Paraguay

64.27%

131

CNS

Financiera FAMA

Nicaragua

63.33%

127

MIC

BanCovelo

Honduras

63.11%

102

MIC

Fundación León 2000

Nicaragua

62.89%

126

MIC

Caja Popular Mexicana

Mexico

62.66%

CNS

Microserfin

Panama

62.49%

105

PRODESA

Nicaragua

62.11%

117

Fundación Espoir

Ecuador

61.72%

Only MIC CNS Only MIC

COAC Maquita Cushunchic

Ecuador

61.70%

143

MIC

Interfisa

Paraguay

61.43%

143

CNS Only MIC

Fundación Ecuatoriana de Desarrollo

Ecuador

60.29%

122

118

CRYSOL

Guatemala

60.17%

127

106

MIC

FINSOL

Honduras

60.14%

100

128

MIC Only MIC

INSOTEC

Ecuador

60.00%

101

129

ProMujer - Peru

Peru

59.41%

MIC

Fassil FFP

Bolivia

58.51%

114

CNS

ACME

Haiti

58.42%

146

Only MIC

FODEMI

Ecuador

57.50%

Only MIC

CAME

Mexico

57.45%

126

Only MIC

FINCA - Mexico

Mexico

57.18%

107

Only MIC

EDPYME Credivisión

Peru

56.79%

Emprender

Bolivia

56.79%

136

124

MIC Only MIC

COAC Mushuc Runa

Ecuador

56.22%

107

MIC

Asociación Arariwa

Peru

55.46%

Only MIC Only MIC

SOGESOL

Haiti

54.69%

120

144

FUNDESER

Nicaragua

53.93%

115

MIC

Movimiento Manuela Ramos

Peru

53.83%

MIC

World Relief - Honduras

Honduras

53.62%

112

145

MIC

ProMujer - Nicaragua

Nicaragua

53.57%

134

MIC

Cooperativa Jesús Nazareno

Bolivia

53.03%

142

CNS

Banco Caja Social

Colombia

52.85%

119

CNS

Fortaleza FFP

Bolivia

52.67%

MIC

Microempresas de Antioquia

Colombia

51.15%

MIC

Financiera El Comercio

Paraguay

50.30%

139

CNS

FUNBODEM

Bolivia

50.27%

MIC

CMAC Trujillo

Peru

49.46%

109

MIC Only MIC

Crece Safsa

Mexico

49.36%

126

BancoEstado

Chile

49.01%

126

100

Micro Crédit National

Haiti

48.15%

139

147

MIC Only MIC

MICROFINANCE AMERICAS: THE TOP 100

2009

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ma^bk k^li^\mbo^ \hngmkb^l' Hger hg^ h_ ma^l^ bl Z ghg&k^`neZm^] F?B !=&Fbkh% Zelh h_ >\nZ]hk"' Ma^ abà^lm&kZgd^] F^qb& \Zg F?B pZl <hfiZkmZfhl& ;Zg\h% bg ^bàma ihlbmbhg% pabe^ ?HG=>LHE h_ @nZm^fZeZ Zg] :=HI>F ;Zgd h_ ma^ =hfbgb& \Zg Kîn[eb\ p^k^ ma^ abà^lm& kZgd^] F?Bl bg <^gmkZe :f^kb\Z Zg] ma^ <Zkb[[^Zg% k^li^\mboêr' Bg ma^ _bklm +. ihlbmbhgl% ma^ hnmk^Z\a ibeeZk pZl Z ]^m^kfbg& bg` _Z\mhk bg ma^ _bgZe k^lneml [^\Znl^ Zee ma^ F?Bl p^k^ bg ma^ mhi *) bg ma^ ^_Ö\b^g\r ibeeZk% ^q\îm _hk ma^ e^Z]bg` <k^]b ? % <k^]b<hf g h_ F^q&

Credi Fé of Ecuador placed first in the composite ranking.

SCALE Bg lîZkZmbg` ma^ \hfihlbm^ kZgdbg` bgmh \Zm^`hkb^l% F?Bl pbma [khZ]^k fZkd^m \ho^kZ`^ p^k^ _Zohk^] bg ma^ hnmk^Z\a ibeeZk% ô^g mahnà ma^r aZ] ma^ lehp^lm `khpma eôêl bg ma^ k^`bhg' <hfiZkmZfhl;Zg\h \hgmbgn^] mh e^Z] ma^ kZgdbg`% ikhob]& bg` fhk^ fb\kh^gm^kikbl^ e^g]bg` maZg Zgr hma^k bglmbmnmbhg bg ma^ k^`bhg' Bml

TOP 20 MFIs BY MICROENTERPRISE PORTFOLIO SIZE Ranking 2008 2007

Name of MFI

Country

Number of Microenterprise Loans Outstanding 1,150,950

374,205,120

MIC

436,138

162,443,711

Only MIC

Microenterprise Gross Loan Portfolio (USD)

General Trend †

CompartamosBanco

Mexico

CrediAmigo

Brazil

MiBanco

Peru

355,933

584,692,553

MIC

FMM Popayán

Colombia

238,359

136,639,395

MIC

WWB Cali

Colombia

228,942

212,305,847

MIC

n/a

Bancamía

Colombia

209,587

160,680,747

MIC

FMM Bucaramanga

Colombia

175,417

110,446,359

MIC

BancoEstado

Chile

172,976

575,723,473

MIC

Banco Solidario

Ecuador

172,224

205,928,000

MIC

Peru

160,896

158,915,822

MIC

Colombia

149,838

273,312,084

CNS Only MIC

Financiera Edyficar

Banco Caja Social

CAME

Mexico

148,733

27,048,667

CMAC Arequipa

Peru

135,130

184,950,653

MIC

FINCA - Mexico

Mexico

112,858

24,370,640

Only MIC

BancoSol

Bolivia

110,857

260,441,499

MIC

PRODEM FFP

Bolivia

104,830

230,397,349

CRECER

Bolivia

100,387

37,159,760

92,141

222,417,276

MIC

90,060

222,598,118

MIC MIC

FIE FFP

Bolivia

Credi Fé

Ecuador

Banco ADOPEM

Dominican Republic

88,130

37,498,291

Totals for 2007 (201 MFI)

6,587,061

6,342,107,516

Totals for 2008 (201 MFI)

7,962,030

7,580,671,132

n/a: not available

MIC Only MIC

† By general trend is understood: Only MIC: 100% of loans are toward microenterprise. MIC: Loans to microenterprise surpass 50% of total loans. Source: MIX

www.iadb.org/micamericas

MICROFINANCE AMERICAS: THE TOP 100

2009

TOP 20 MFIs BY CONSUMER PORTFOLIO SIZE Ranking 2008 2007 1

Name of MFI

Country

Number of Consumer Loans Outstanding

Financiera Independencia

Mexico

1,085,963

Consumer Gross Loan Portfolio (USD) 323,379,762

General Trend † CNS

Banco Caja Social

Colombia

908,070

273,312,084

CNS

Caja Popular Mexicana

Mexico

847,417

1,004,733,301

CNS

n/a

Crediscotia

Peru

453,871

152,669,001

CNS

EDPYME Efectiva

Peru

98,825

27,527,371

CNS

MiBanco

Peru

91,667

57,507,957

MIC

BancoEstado

Chile

88,681

53,552,990

MIC

Banco Familiar

Paraguay

85,671

40,705,348

CNS

CompartamosBanco

Mexico

72,565

8,529,303

MIC

Visión Banco

Paraguay

52,422

35,156,184

CNS

CMAC Arequipa

Peru

51,522

77,709,622

MIC

CMAC Trujillo

Peru

45,197

62,681,409

MIC

CMAC Sullana

Peru

41,816

55,616,493

MIC

CMAC Huancayo

Peru

41,150

39,817,308

MIC

Peru

39,613

37,754,933

MIC

Paraguay

39,246

14,577,907

CNS

n/a

CMAC Piura *

Interfisa

n/a

Financiera Edyficar

Peru

34,482

19,407,580

MIC

n/a

Financiera El Comercio

Paraguay

32,431

8,764,789

CNS

32,352

29,959,991

MIC

31,178

15,540,474

CNS

Totals for 2007 (116 MFIs)

4,185,489

3,664,669,880

Totals for 2008 (116 MFIs)

4,668,809

3,505,412,453

n/a

Central Cresol Baser

Brazil

n/a

Apoyo Económico

Mexico

n/a: not available * Only some MFIs supplied numbers for the volume of active loans and gross portfolio of loans. † By general trend is understood: MIC: Loans to microenterprise surpass 50% of total loans. CNS: Consumer loans surpass 50% of total loans. Source: MIX

SLOWER GROWTH he times are changing. The era of the microfinance industry growing at an annual rate of almost 30% is over. And this is not only due to the international financial crisis, but also to other factors that have been troubling the industry for some time, such as the oversupply of loans in certain markets. Oversupply has mainly affected large MFIs that share the market with other operators. The consolidation of debt and acquisition of loan portfolios (not only consumer lending but microenterprise lending as well) were the two quickest ways to grow and expand the market, but granting larger loans to clients than they could repay caused cash flow problems, and led to increased delinquency. In 2007, almost all MFIs (96%) increased their portfolio, in contrast with 80% in 2008. However, according to Elizabeth Ventura from EDPYME Confianza, MFIs that hold

MICROFINANCE AMERICAS: THE TOP 100

2009

niches in the market—where clients interact with only one institution—have been able to survive over-indebtedness better and improve their competitive edge. In general, niche market MFIs are those regulated and non-regulated institutions that tend to offer group loans. The global economic crunch has also taken its toll on MFI clients. Although certain productive activities, such as agriculture, have not been affected, microenterprises that operate in the retail (specifically imported goods), services, and tourism sectors have been the first and most profoundly affected. Xiomara Rizo of the Nieborowski Foundation in Nicaragua explains that in her country the low price of cattle has negatively affected her clients’ income. Meanwhile, in Honduras, Santa de Euceda of Financiera ODEF indicates that the slowdown in maquila activity has also greatly impacted the MFI’s portfolio. Although many

ihlbmbhg pZl manl k^bg_hk\^] bg F^qb\h% ma^ \hngmkr k^`blm^kbg` ma^ abà^lm gnf[^k h_ ehZgl% \ehl^ mh *'0 fbeebhg' I^kn e^] ma^ k^`bhg pbma ma^ eZk`^lm fb\kh^gm^kikbl^ e^g]bg` ihkm_hebh !fhk^ maZg NL +'- [be& ebhg"' Fb;Zg\h pZl ma^ ikbg\biZe ieZr^k% pbma Z ihkm_hebh h_ \ehl^ mh NL /)) fbeebhg' Ma^ `bZgm <k^]b& :fb`h _khf ;kZsbe \hfie^m^l ma^ mhi mak^^% Zee h_ pab\a aê] hgmh ma^bk ihlbmbhgl _khf eZlm r^Zk' =^libm^ ma^ \k^]bm \kng\a bg Zee fZkd^ml% *1 h_ ma^ mhi +) bglmbmn& mbhgl bg ma^ kZgdbg` p^k^ Z[e^ mh ^qiZg] fb\kh^gm^kikbl^ e^g]bg`% [^ bm bg ma^ gnf[^k h_ ehZgl hk ihkm_h& ebh ohenf^' Li^\bÖ\Zeer% <hehf[bZÍl ;Zg\Zf Z \ebf[^] mh lbqma ieZ\^% Z_m^k \hglheb]Zmbg` bml hi^kZmbhgl pbma ma^ aêi h_ ?hng]Zmbhg ;;O:% Zg ^qZfie^ _heehp^] [r I^knÍl <ZcZ Gn^lmkZ @^gm^' @bo^g maZm gh g^p F?Bl p^k^ bg\en]^] bg ma^ mhi +) lihml _khf eZlm r^ZkÍl lnko^r% ma^ F?Bl bg mabl kZgdbg` Zk^ ma^ mhi \hgm^g]^kl% ghm hger bg ma^bk k^li^\mbo^ \hngmkb^l% [nm bg ma^ k^`bhg Zl Z pahe^'

CompartamosBanco continued to lead the ranking (Scale), providing more microenterprise lending than any other institution in the region.

MFIs have already set precautionary measures in motion, some markets have seen microentrepreneurs apply their own contingency plans. Instead of requesting loans, for example, they tap into their own savings. In extreme cases, they may change their businesses altogether. The financial crisis has had a clear and direct impact on MFI financing. One immediate effect has been higher interest rates, in some cases temporary, in others permanent. The slashing of credit lines, shorter terms, and the advanced cancellation of loans, whether voluntarily or obligatorily, have also affected MFI growth. Larger institutions have been able to fare better, since they have more lines of funding. Some have already planned to issue bonds when market conditions improve or sign senior and subordinated debt and encourage savings among their clients. Medium-sized and small institutions, which tend www.iadb.org/micamericas

GROWTH Ma^ kZgdbg` h_ `khpma aZl \aZkZ\m^kbl& mb\Zeer [^^g ma^ fhlm ]rgZfb\ \Zm^`hkr bg ^Z\a h_ ma^ Fb\khÖgZg\^ :f^kb\Zl *))' >o^g mahnà bml k^lneml ]b] ghm aZo^ fn\a ^__^\m hg ma^ \hfihlbm^ kZgdbg`% ma^ kZib] `khpma h_ kêZmboêr g ^ p Z g ] l f Z e e bglmbmnmbhgl \Zgghm [^ b`ghk^]% ln\a Zl ma^ `khpma h_ F^q& b\Zg F?Bl _hk ma^ mabk] r^Zk bg Z khp' :ihrh >\hg fb\h k^fZbg^] bg _bklm ieZ\^ pbma Ziikhq& b f Zm ^ er + 2 % ) ) ) ehZgl% pabe^ ^bàm hma^kl h_ oZkrbg` lbs^É_khf =hg :ihrh mh <ZcZ IhineZk F^qb\ZgZÉkZgd^] bg ma^ mhi +) ihlb& mbhgl' @k^Zm^k bgo^lmf^gm bg bg_kZlmkn\& mnk^ Zg] bg\k^Zl^] ihbgml h_ l^kob\^ aêi^] ma^l^ F?Bl ^qiZg] ma^bk ÖgZg& \bZe l^kob\^l bg ma^ ^f^k`bg` F^qb\Zg fZkd^m' ;hebobZÍl ?hg]h ?bgZg\b^kh IkboZ]h ?hkmZe^sZ mhhd mabk] ieZ\^ Zl bm Zefhlm

to have a greater social component while showing satisfactory financial results, have been able to fall back on their external creditors or local banks, even if at a larger financial cost. In view of this, Aníbal Montoya of FUNED (Honduras), Diego Fernández at PRISMA (Peru), and Luis Ríos at FODEMI (Ecuador) all agree that these medium-sized and small institutions need to prioritize liquidity over lending. This means that most MFIs have stopped focusing on growth or have opted for moderate growth, so that in 2009 they can focus on re-engineering their policies and practices. Following market forecasts, it is expected that portfolio growth will be less than 10%. In short, the economic, political and social contexts of each country will determine if growth will be more heterogeneous than in previous years. MICROFINANCE AMERICAS: THE TOP 100

2009

TOP 20 MFIs BY GROWTH RATE Absolute Change in Microenterprise Loans

Name of MFI

Country

Apoyo Económico

Mexico

238.1%

20,363

Don Apoyo

Mexico

233.5%

8,539

1,427,896

n/a

Fortaleza FFP

Bolivia

193.1%

3,881

6,387,982

n/a

Caja Popular Mexicana

Mexico

129.8%

1,642

775,656

CrediComún

Mexico

117.5%

7,201

226,604

Progresemos

Mexico

117.3%

9,045

532,252

9,933,681

n/a

3 4 5

n/a

Crece Safsa

Mexico

96.6%

6,311

1,521,378

n/a

FONDESURCO

Peru

94.0%

2,551

3,867,308

n/a

FONDESOL

Guatemala

90.9%

10,453

3,420,754

n/a

Conserva

Mexico

82.4%

10,101

1,724,524

Invirtiendo

Mexico

77.4%

12,041

1,383,080

FUNDESER

Nicaragua

72.1%

12,352

7,025,275

n/a

Fundación Espoir

Ecuador

69.8%

17,188

6,274,404

n/a

INSOTEC

Ecuador

59.9%

1,930

1,739,205

n/a

FinAmérica

Colombia

59.7%

17,221

21,726,996

n/a

PRESTANIC

Nicaragua

57.0%

6,722

6,562,817

n/a

CRAC Señor de Luren

Peru

56.9%

11,683

26,400,336

n/a

FIE Gran Poder

Argentina

56.6%

2,492

2,032,595

n/a

Soluciones Financieras

Mexico

55.3%

13,886

2,006,121

D-Miro

Ecuador

54.8%

12,810

10,460,754

n/a: not available

Source: MIX

mkbie^] ma^ gnf[^k h_ ehZgl ]bl[nkl^]% pabe^ ?HG=>LNK<H _khf I^kn Zg] ?HG=>LHE _khf @nZm^fZeZ ^Z\a Zefhlm ]hn[e^] ma^bk ohenf^l' Lb`gb_& b\Zgm `khpma pZl Zelh l^^g bg hma^k \hngmkb^l bg ma^ k^`bhg' :k`^gmbgZ ^gm^k^] ma^ kZgdbg` _hk ma^ Öklm mbf^ pbma ?B> @kZg Ih]^k% pab\a ^qiZg]^] bml \k^]bm l^kob\^l maZgdl mh bg\k^Zl^] \ZibmZe Zg] ma^ ^qi^kb^g\^ ikhob]^] [r bml ;hebobZg hpg^kl !?B> G@H"'

MARKET PENETRATION Bglb]^ ma^ ho^kZee lmkn\mnk^ h_ ma^ \hf& ihlbm^ kZgdbg`% fZkd^m i^g^mkZmbhg _Zohkl eZk`^ F?Bl bg kêZmboêr lfZee fZkd^ml hk fZkd^ml pbma _^p^k i^hie^ [êhp ma^ iho^kmr ebg^% ô^g mahnà ma^ \hngmkb^l pa^k^ ma^r hi^kZm^ Zk^ dghpg _hk aZobg` Z abà i^k \ZibmZ bg\hf^ \hfiZk^] mh ma^ k^lm h_ ma^ k^`bhg' <abe^Íl ;Zg\h>lmZ]h \hgmbgn^l mh e^Z] bg mabl \Zm^`hkr pbma `k^Zm^k \ho^kZ`^ h_ ehp&bg\hf^ \eb^gml makhnà 10

Absolute Change in Microenterprise Gross Loan Portfolio (USD)

% Change in Microenterprise Loans

Ranking 2008 2007

MICROFINANCE AMERICAS: THE TOP 100

2009

fb\kh^gm^kikbl^ e^g]bg`' Kbàm hg bml a^êl% Zg] \Zm\abg` ni jnb\der% bl F^qb& \hÍl <hfiZkmZfhl;Zg\h% pbma bml ghmZ& [e^ Zg] \hgmbgnhnl `khpma bg +))1' Bm bl ghm^phkmar maZm ma^ \ho^k& Z`^ ikhob]^] [r Zefhlm Zee ma^ F?Bl eblm^] bg mabl \Zm^`hkr `Zbg^] bg ma^bk ihm^gmbZe fZkd^ml bg +))1 \hfiZk^] mh ma^ ikôbhnl r^Zk% Z ]bk^\m k^lnem h_ bg\k^Zl^] fb\kh^gm^kikbl^ e^g]bg`' Mabl bg mnkg pZl Z k^lnem h_ F?B ^__hkml mh bgo^lm bg bg_kZlmkn\mnk^ Zg] ^qiZg] ghg&\hgo^gmbhgZe l^kob\^l mh k^Z\a Z `k^Zm^k ihkmbhg h_ ma^ ehp&bg\hf^ ihi& neZmbhg' IZkZ`nZr% ;hebobZ Zg] Gb\ZkZ& `nZ lmZg] hnm% pbma Zfhg` ma^ abà^lm eôêl h_ iho^kmr'

CONSUMER LENDING Ma^ \Zm^`hkr h_ \hglnf^k e^g]bg` bl ghm bg\en]^] bg ma^ \hfihlbm^ kZgd& bg`% Zemahn`a bm bg]bk^\mer bg_en^g\^l ma^ mhmZe ihkm_hebh Zfhngm Zl bm bl Z lb`gb_b\Zgm \hfihg^gm ma^k^h_' Ma^

`khpma h_ ma^ fb\kh^gm^kikbl^ l^\mhk bg ma^ k^`bhg aZl e^] F?Bl mh Zmm^fim mh lZmbl_r ghm hger ma^bk \eb^gmlÍ [nlb& g^ll g^^]l% [nm Zelh ma^ g^^]l h_ ma^bk _Zfbeb^l !ln\a Zl a^Zema% ^]n\Zmbhg% Zg] bfikho^] ebobg` \hg]bmbhgl"' Manl% ma^ bg\k^Zl^ bg \hglnf^k e^g]bg` aZl [^^g bfihkmZgm _hk F?Bl% Zg] Z\\hngml _hk g^Zker ,) h_ ma^ k^`bhgÍl ihkm_hebh' Ahpô^k% ma^ Z]himbhg h_ e^ll ^qaZnl& mbo^ ikZ\mb\^l h_ ôZenZmbg` e^g]bg` Zg] _Zlm&mkZ\d ehZgl bg nk[Zg fZkd^ml aZl e^] mh \eb^gml mZdbg` hnm eZk`^k ehZgl maZg g^\^llZkr% pab\a bg mnkg aZl e^] mh ikh[e^fl h_ ho^k&bg]^[m^]g^ll Zg] ]bfbgbla^] kîZrf^gm \ZiZ\bmr' Ma^ bg]nlmkrÍl k^Z\mbhg aZl [^^g mh k^]n\^ bml \hglnf^k e^g]bg` ihkm_hebh [r -', Zg] ]^\k^Zl^ ma^ lbs^ h_ \hglnf^k ehZgl _khf NL 10/ mh 0.*' Bm bl bfihkmZgm mh ghm^ maZm ma^ Zo^kZ`^ Zfhngm h_ ma^l^ ehZgl bg eh\Ze \nkk^g\r `k^p . ' Bg +))1% F^qb\Zg ?bgZg\b^kZ Bg]^& i^g]^g\bZ aê] Öklm ieZ\^ bg mabl \Zm&

TOP 20 MFIs BY MARKET PENETRATION Ranking 2008 2007 1

Name of MFI

Country

BancoEstado

Chile

6.1%

1,150,950

4.3%

55,519

Ecuador

2.8%

172,224

Financiera El Comercio

Paraguay

2.5%

30,989

MiBanco

Peru

2.4%

355,933

Banco Solidario

n/a

9 3

n/a

172,976

Mexico

6.2%

Paraguay

Microenterprise Loans

CompartamosBanco Banco Familiar

Microenterprise Loans/ Per Population

Fondo de Desarrollo Local

Nicaragua

2.4%

63,693

Fundación Paraguaya

Paraguay

2.2%

28,064

Banco ADOPEM

Dominican Republic

2.1%

88,130

ProCredit - Nicaragua

Nicaragua

2.0%

53,660

Visión Banco

Paraguay

1.9%

23,179

BancoSol

Bolivia

1.8%

110,857

PRODEM FFP

Bolivia

1.7%

104,830

CRECER

Bolivia

1.6%

100,387

FIE FFP

Bolivia

1.5%

92,141

Credi Fé

Ecuador

1.5%

90,060

ProMujer - Bolivia

Bolivia

1.4%

87,626

n/a

Apoyo Integral

El Salvador

1.2%

31,700

Interfisa

Paraguay

1.2%

15,006

n/a

FINCA - Ecuador

Ecuador

1.1%

68,809 Source: MIX

n/a: not available

^`hkr% ^q\^^]bg` * fbeebhg ehZgl ]bl[nkl^]' Hma^k F^qb\Zg F?Bl Zelh aê] mhi ihlbmbhgl% bg\en]& bg` <ZcZ IhineZk F^qb\ZgZ !pbma Z ihkm_hebh h_ fhk^ maZg NL * [beebhg" Zg] <hfiZkmZfhl& ;Zg\h !Z e^Z]bg` fb\kh^gm^k& ikbl^ e^g]^k"' ?hnk IZkZ`nZrZg F?Bl Zelh kZgd^] Zm ma^ mhi bg mabl \Zm^`hkr' Bg I^kn% lô^kZe F?Bl maZm ]h ghm _h\nl lheêr hg \hglnf^k e^g]bg`% ln\a Zl <ZcZl Fngb\biZe^l% Zelh ^q\êe^]'

DEPOSITS Ma^ \hfihlbm^ kZgdbg` _Zohkl fh[bebsZmbhg h_ ]^ihlbml% pbma ma^ ng]^klmZg]bg` maZm ma^ F?Bl Zk^ fZdbg` ^__hkml mh ^qiZg] ma^bk _bgZg\bZe l^kob\^l [^rhg] lbf& ier ikhob]bg` ehZgl' K^`bhgZeer% F?B ]^ihlbml lZp Z )'/ ]khi bg +))1' Ma^ ho^kZee [ZeZg\^ pZl NL 0'- fbe& ebhg Z\khll *+'1 fbeebhg Z\\hngml' : www.iadb.org/micamericas

Chile’s

BancoEstado

continues to lead in this category (Penetration) with greater coverage of low-income clients through microenterprise lending.

_^p eZk`^ bglmbmnmbhgl ln__^k^] lô^k^ l^m[Z\dl4 b_ ma^r p^k^ k^fho^] _khf ma^ lZfie^% ma^ [ZeZg\^ phne] lahp Zg bg\k^Zl^ h_ **'+ % lahpbg` Z ]bfbgbla& bg` ]rgZfb\ bg \Zimnkbg` ma^l^ k^lhnk\^l' Mabl bl ^qieZbg^] bg iZkm [r \eb^gml aZobg` e^ll \ZiZ\& bmr mh lZo^ maZg [^_hk^% ]n^ mh ma^ ^\hghfb\ ]hpgmnkg Zg] [^\Znl^ fb\kh^gm^kik^g^nkl pbma lZobg` \ZiZ\bmr ik^_^k mh li^g] iZkm h_ mahl^ lZobg`l' Bg \^kmZbg fZk& d^ml% lhf^ \eb^gml ik^_^kk^] mh mkZgl_^k ma^bk ]îhlbml mh mkZ]b& mbhgZe [Zgdl pbma lheb] kînmZ& mbhgl' Ahpô^k% ma^ F?Bl maZm \Zimnk^ in[eb\ ]îhlbml p^gm mh `k^Zm e^g`mal mh fZbgmZbg ma^bk \k^] \k^]bm ]rgZfb\% Zg] manl p^k^ Z[e^ mh ^qiZg] ma^bk ihkm_hebh [r ** ' ;Zg\h <ZcZ Lh\bZe _khf <hehf[bZ \hgmbgn^l mh e^Z] ma^ k^`bhg pbma - fbeebhg Z\\hngml Zg] NL +'* [beebhg MICROFINANCE AMERICAS: THE TOP 100

2009

TOP 20 MFIs BY DEPOSITS Ranking 2008 2007

Name of MFI

Retail Deposits Accounts

Country

Retail Voluntary Deposits (USD)

General Trend †

Banco Caja Social

Colombia

4,293,467

2,183,638,061

CNS

Caja Popular Mexicana

Mexico

3,073,249

1,240,820,178

CNS

Crediscotia

Peru

390,647

77,640,230

CNS

PRODEM FFP

Bolivia

349,580

175,293,046

MIC

n/a

Banco Los Andes ProCredit

Bolivia

318,008

170,986,160

MIC

CMAC Arequipa

Peru

278,958

185,629,198

MIC

n/a

Banco ProCredit-Nicaragua

Nicaragua

271,442

27,360,040

MIC

FIE FFP

Bolivia

249,074

110,215,292

MIC

BancoSol

Bolivia

245,066

159,553,134

MIC

BancoEstado

Chile

216,900

312,916,848

MIC

MiBanco

Peru

190,618

493,873,189

MIC

n/a

Banco ProCredit - Ecuador

Ecuador

164,168

131,683,000

MIC

CMAC Cusco

Peru

162,186

135,332,880

MIC

FinComún

Mexico

160,583

24,845,089

MIC

n/a

Sèvis Finansye Fonkoze

Haiti

123,251

9,693,700

Only MIC

CMAC Trujillo

Peru

120,642

239,575,256

MIC

CMAC Sullana

Peru

115,852

145,299,887

MIC

Cooperativa Jesús Nazareno

Bolivia

111,192

76,248,482

CNS

n/a

Caja Nuestra Gente

Peru

109,946

91,497,717

MIC

Banco ADEMI

Dominican Republic

MIC

96,848

73,036,286

Totals for 2007 (63 MFIs)

9,795,916

7,471,525,795

Totals for 2008 (63 MFIs)

12,798,689

7,426,996,781

n/a: not available

WORKING AGAINST DELINQUENCY ithout a doubt, MFIs’ traditional strong points of low levels of risk and delinquency have been affected by over-indebtedness, reduced economic activity and—to a certain degree—by the international financial crisis. In some cases, delinquency, although temporary, has been unusually high. In other cases, delinquency levels have more than doubled. This has forced institutions to take measures to slow the increase in delinquency: Reinforcing evaluation, follow-up and portfolio recuperation processes. Disbursement time has been sacrificed for longer periods of analysis, which has reduced the pressure for expanding portfolios. Reducing amounts and repayment periods, and increasing frequency of payments.

MICROFINANCE AMERICAS: THE TOP 100

2009

Refinancing and reprogramming loans. Before penalizing clients or getting collection agencies involved, some MFIs are looking to help clients with temporary measures. Extending working hours for payments. MFIs have extended their opening hours exclusively to receive payments. Other less common measures include: Seizing opportunities to capture clients. Francisco Moreno of Ecuador’s Espoir Foundation explains that medium- and small-sized institutions have been more active than their larger counterparts, which take longer to approve loans due to a more conservative approach. They anticipate the competitors’ evaluation or are re-evaluating clients that the larger institutions have turned down or not taken into account. Informing and educating the client. In El Salvador, some medium-sized institutions have opted for a more personal

ma^ k^lm bg mabl \Zm^`hkr' Ma^r fZbgmZbg ehp \hlm eôêl [^\Znl^ h_ ma^bk nl^ h_ `khni ehZgl !fZbger \heeZ[hkZmbo^ `khnil"% ienl ma^ \hngmkrÍl abà i^k \Zi& bmZ bg\hf^ eôê' <H<=>I e^] ma^ eblm% pbma Zg ng[^ZmZ[e^ hi^kZmbg` \hlm eôê h_ NL ,) _hk ^Z\a Z\mbo^ ehZg' Mabl k^Z__bkfl ma^ ^__^\mbo^& g^ll h_ ma^ \heeZ[hkZmbo^ `khni f^mah]heh`r% bg]î^g]^gmer h_ ma^ bg\hf^ eôê i^k bgaZ[bm& Zgm' Hger mak^^ ghg&F^qb\Zg bglmbmnmbhgl ieZ\^] pbmabg ma^ mhi +)3 IkhFnc^k I^kn bg gbgma ieZ\^% ?FF IhiZr g _khf <hehf[bZ bg _bklm ieZ\^ _hk mahl^ nlbg` bg]bob]nZe ehZg f^mah]he`hr% Zg] <k^]b:fb`h _khf ;kZsbe% pab\a ieZ\^] kbàm [âbg] bm'

bg ]îhlbml% _heehp^] \ehlêr [r <ZcZ IhineZk F^qb\ZgZ' ;hma F?Bl ghmb\^Z[er ]blmZg\^] ma^flêo^l _khf ma^ k^lm h_ ma^ k^`bhgZe ieZr^kl' Mh`^ma^k ma^r ahe] .0'* h_ Zee Z\\hngml Zg] -*'1 h_ mhmZe ]îhlbml bg ma^ k^`bhg' Ikh<k^]bm ln[lb]bZk& b^l bg mak^^ \hngmkb^l !;hebobZ% >\nZ]hk Zg] Gb\ZkZ`nZ" p^k^ mabl r^ZkÍl lmZkl Zl ma^r Zee Zii^Zk^] bg ma^ Mhi +) kZgd& bg`% pabe^ ablmhkb\Zeer pêe& dghpg bglmbmnmbhgl _khf ;hebobZ Zg] I^kn Zelh lmhh] hnm' Mabl k^×^\ml ma^ fZmnkbmr k^Z\a^] [r ma^l^ mph fZkd^ml% pab\a aZo^ [^\hf^ k^`bhgZe ^qZfie^l _hk bglmbmnmbhgZe k^`neZmbhg Zg] ]ôêhif^gm'

EFFICIENCY Mabl r^ZkÍl Fb\khÖgZg\^ :f^kb& \Zl *)) ho^kaZne^] ma^ ^_Ö\b^g\r \Zm^`hkr Zg] nl^] Z lbg`e^ \kbm^& kbhg3 ma^ Zo^kZ`^ hi^kZmbg` \hlm i^k ehZg \hfiZk^] mh ma^ i^k \ZibmZ `khll ]hf^lmb\ ikh]n\m !@=I" h_ ^Z\a \hngmkr' F^qb\Zg F?Bl lnkiZll^] Zee

The MFIs that capture public deposits went to great lengths to maintain their credit dynamic, and thus were able to expand their portfolio by 11%.

relationship with their clients, advising them on the effects of the crisis and its possible impact on their businesses, thus keeping an eye on the evolution of the credit and building customer loyalty for when payments are due. Some indirect measures have also been taken to control delinquency, and include the following: Training personnel. In order to retain key personnel, MFIs are offering their credit agents and business and commercial officials non-monetary incentives, such as training and professional advancement. Delaying implementation of strategic plans or more gradual implementation. The implication is that expectations for growth have decreased. Improving processes. The goal is to reduce the institutions’ operating timeframes and costs. www.iadb.org/micamericas

ASSET QUALITY Bg ma^ \hfihlbm^ kZgdbg`% [hma ma^ ihkm_hebh Zm kbld Zg] ma^ pkbm^&h__ kZmbh p^k^ mZd^g bgmh Z\\hngm' EZlm r^Zk ma^ bglmbmnmbhgl kZgdbg` bg ma^ mhi +) lihml fZbgmZbg^] ma^bk ihkm _hebh&

Maintaining current infrastructure level. Where possible, some MFIs seek to keep all points of service to their clients open. Only those that have found niche markets have expanded their number of agencies. Although many of the above measures have emerged as a result of what MFIs have had to face, most are in line with traditional financial sector practices. The fact that the microfinance industry has enjoyed years of uninterrupted growth, allowing some MFIs to reach the sizes they are today, suggests that microfinance activity is more in tune with economic activity than before. Plus, the numbers of clients seeking larger loans have grown at a fast pace, which has led some MFIs to offer commercial loans not only to corporations but to medium- and small-sized enterprises as well. MICROFINANCE AMERICAS: THE TOP 100

2009

TOP 20 MFIs BY EFFICIENCY Ranking 2008

Name of MFI

Country

Cost per Loan/ GNI per capita

Cost per Loan (USD)

Average Loan Balance (USD)

COCDEP

Mexico

0.3%

134

APROS

Mexico

0.4%

164

Alternativa Solidaria Chiapas

Mexico

0.7%

199

AMEXTRA

Mexico

0.8%

229

CAFASA

Mexico

0.9%

195

Progresemos

Mexico

1.0%

136

Alternativa 19 del Sur

Mexico

1.3%

126

306

Grupo Consultor para la Microempresa

Mexico

1.3%

127

123

ProMujer - Peru

Peru

1.4%

205

Semilla Solidaria

Mexico

1.4%

132

276

Conserva

Mexico

1.4%

134

253

ProMujer - Mexico

Mexico

1.4%

135

197

FMM Popayán

Colombia

1.5%

565

CrediAmigo

Brazil

1.5%

372

Invirtiendo

Mexico

1.5%

139

351

Caja Popular Mexicana

Mexico

1.5%

144

1,225

CrediClub

Mexico

1.5%

146

160

Crece Safsa

Mexico

1.6%

148

625

CompartamosBanco

Mexico

1.6%

149

326

FINCA - Mexico

Mexico

1.6%

151

216

Source: MIX

TOP 20 MFIs BY PORTFOLIO QUALITY Zm&kbld eôêl !I:K7,)" [êhp )'1 % pabe^ bg +))1 ma^ i^k\^gmZ`^ khl^ mh * ' IkhFnc^k I^k lmhh] hnm Zfhg` Zee k^`bhgZe F?Bl _hk [^bg` ma^ hger hg^ kîhkmbg` b]^Ze ]êbgjn^g\r eô& êl' Chbgbg` ma^ nlnZe mhi&kZgd^] \hg& m^g]^kl p^k^ F^qb\hÍl >nk^dZLheb Zg] :em^kgZmboZ *2 ]ê Lnk% ienl :k`^gmbgZÍl ln[lb]bZkr h_ IkhFnc^k' Hma^k F?Bl _khf ;hebobZ Zg] F^qb\h Zelh ^q\êe^] Zm d^îbg` ehp ]êbgjn^g\r eôêl' :l ikôbhnler f^gmbhg^]% fhlm h_ ma^l^ ieZr^kl _h\nl fZbger hg `khni e^g]bg`% Zg] fZgr aZo^ ^lmZ[ebla^] gb\a^ fZkd^ml% pab\a f^Zgl maZm ma^ fZchkbmr h_ ma^bk \eb^gml aZo^ mZd^g hnm ehZgl pbma cnlm maZm hg^ bglmbmnmbhg% ^li^\bZeer bg knkZe Zk^Zl' Ghg^maê^ll% =bZ\hg Z !;hebobZ" lmhh] hnm _hk [^bg` ma^ Öklm mh nl^ Z \hf[bgZmbhg h_ `khni Zg] bg]bob]nZe ehZgl% pabe^ ?Zllbe ??I !;hebobZ" Zg] <k^s\Zfhl !<hehf[bZ" lmhh] hnm _hk ibhg^^kbg` bg]bob]nZe e^g]bg` ikZ\mb\^l'

MICROFINANCE AMERICAS: THE TOP 100

2009

Ranking 2008 2007

Portfolio at Risk > 30 days

Write-off Ratio*

Name of MFI

Country

ProMujer - Peru

Peru

0.0%

ADRA - Peru

Peru

0.0%

0.2%

FIACG

Guatemala

0.0%

0.9%

EurekaSoli

Mexico

0.1%

0.0%

Movimiento Manuela Ramos

Peru

0.1%

0.0%

n/a

ProMujer - Argentina

Argentina

0.3%

0.1%

n/a

Alternativa 19 del Sur

Mexico

0.5%

0.0%

COCDEP

Mexico

0.5%

0.0%

Fundación Espoir

Ecuador

0.5%

0.4%

FINCA - Peru

Peru

0.6%

0.3%

FODEMI

Ecuador

0.6%

0.4%

CRECER

Bolivia

0.6%

0.8%

Diaconia

Bolivia

0.7%

0.2%

ProMujer - Bolivia

Bolivia

0.8%

1.5%

SemiSol

Mexico

0.9%

0.0%

n/a

Fassil FFP

Bolivia

0.9%

0.4%

n/a

Crezcamos

Colombia

0.9%

0.5%

n/a

CAME

Mexico

0.9%

1.3%

n/a

CAFASA

Mexico

0.9%

1.4%

BancoSol

Bolivia

1.0%

n/a: not available

* The write-off ratio should be less than 3%.

1.2% Source: MIX

TOP 20 MFIs BY PROFITABILITY Ranking 2008 2007

Country

Return on Assets

Return on Equity

Invirtiendo

Mexico

29.3%

69.3%

Alternativa 19 del Sur

Mexico

27.0%

31.9%

Name of MFI

n/a

Alternativa Solidaria Chiapas

Mexico

26.3%

56.6%

Conserva

Mexico

23.7%

44.2%

CompartamosBanco

Mexico

19.1%

55.2%

ProMujer - Peru

Peru

16.4%

33.1%

CEAPE Maranhão

Brazil

14.9%

33.0%

Financiera Independencia

Mexico

14.7%

62.2%

COCDEP

Mexico

14.0%

36.3%

n/a

ADRA - Peru

Peru

13.4%

23.5%

CrediAmigo

Brazil

12.5%

39.2%

n/a

AMEXTRA

Mexico

12.3%

28.4%

n/a

Te Creemos

Mexico

11.8%

73.7%

n/a

Banco da Familia

Brazil

11.6%

22.4%

n/a

Contactar

Colombia

10.9%

23.8%

FAFIDESS

Guatemala

10.7%

15.7%

n/a

FMM Popayán

Colombia

10.4%

30.6%

n/a

PRODESA

Nicaragua

10.1%

24.6%

n/a

FINCA - Guatemala

Guatemala

9.6%

22.4%

FUBODE

Bolivia

9.4%

n/a: not available

PROFITABILITY :emahnà mabl \Zm^`hkr pZl ghm bg\en]^] bg ma^ kZgdbg`% bm bl ihl& lb[e^ mh ^lmbfZm^ ikhÖmZ[bebmr nlbg` ma^ Ikh_bm(:o^kZ`^ Ihkm_hebh bg]b& \Zmhk' =^libm^ k^]n\^] ikhÖml Zg] k^mnkgl makhnàhnm ma^ k^`bhg% gh k^Ze oZkbZmbhgl \hne] [^ l^^g% [nm ma^k^ p^k^ bfihkmZgm \aZg`^l bg ihlbmbhgl Zg] bg ma^ bgmkh]n\mbhg h_ g^p ieZr^kl' Hg\^ Z`Zbg% F^qb\Zg bglmbmnmbhgl \Zf^ hnm hg mhi' Ma^ F?B Bgobkmb^g]h kîhkm^] ma^ abà& ^lm ikhÖmZ[bebmr kZm^% _heehp^] [r ma^ g^p\hf^k :em^kgZmboZ *2 ]ê Lnk' Ma^ I^knobZg ln[lb]bZkr h_ IkhFn& c^k lahg^ Zl ma^ hger ghg&F^qb\Zg F?B Zg] ma^ hger hg^ _khf Lhnma :f^kb\Z' ?:?B=>LL !@nZm^fZeZ" ^q\êe^] Zl ma^ lhe^ <^gmkZe :f^kb& \Zg F?B mh `Zbg ma^ abà^lm eôê h_ ikhÖmZ[bebmr bg ma^ ln[&k^`bhg% _heehp^] ^] [r IKH=>L: !Gb\ZkZ`nZ"' Hg\^ Z`Zbg ma^ F?Bl _h\nl^] hg www.iadb.org/micamericas

20.4% Source: MIX

Latin American and Caribbean MFIs have become known for their capacity to attract commercial funding, surpassing other regions in the world.

`khni e^g]bg` ikZ\mb\^l ikho^] mh [^ ma^ fhlm ikh_bmZ[e^' F^qb\hÍl :em^k& gZmboZ *2 ]ê Lnk Zg] IkhFnc^k Zehg` pbma :=K: !I^kn" kîhkm^] ehp eôêl h_ ]êbgjn^g\r% k^bg_hk\bg` ma^ ob^p maZm ihkm_hebh jnZebmr bl ^ll^gmbZe mh k^Z\abg` lZmbl_Z\mhkr eôêl h_ ikh_bm& Z[bebmr' ?bgZg\b^kZ Bg]î^g]^g\bZ Zg] M^ <k^^fhl ![hma _khf F^qb\h"% Zehg` pbma <k^]b:fb`h Zg] ;Zg\h ]Z ?ZfbebZ ![hma _khf ;kZsbe" Zg] <hgmZ\mZk Zg]

?FF IhiZr g ![hma _khf <hehf& [bZ"% mh`^ma^k lahp maZm bm bl Zelh ihl& lb[e^ mh k^Z\a abà ikhÖmZ[bebmr eôêl nlbg` bg]bob]nZe e^g]bg` ikZ\mb\^l' CONCLUSION =^libm^ ma^ e^ll ]rgZfb\ i^k_hkfZg\^ h_ ma^ k^`bhgÍl fb\kh_bgZg\^ bg]nlmkr !]bfbgbla^] `khpma% k^]n\^] fZk& `bgl Zg] bg\k^Zl^] kbld bg ihkm_hebh bg +))1"% F?Bl \hgmbgn^] mh lahp ihlb& mbo^ k^lneml% ^li^\bZeer bg hnmk^Z\a Zg] l\Ze^' Ahpô^k% _hk +))2% lhf^ h_ ma^ ^__^\ml h_ ma^ ^\hghfb\ ]hpgmnkg% ma^ \k^]bm&lZmnkZm^] fZkd^ml Zg] ma^ bgm^kgZmbhgZe _bgZg\bZe \kblbl pbee `khp phkl^% pab\a \hne] e^Z] F?Bl mh k^]n\^ \hglnf^k e^g]& bg` fhk^ Z[knimer maZg fb\kh^g& m^kikbl^ e^g]bg`' :ee mabl ik^l^gml Z lb`gb_b\Zgm \aZee^g`^ _hk F?Bl bg m^kfl h_ `khpma% ^_Ö\b^g\r Zg] ihkm_hebh jnZebmr% lbg\^ ho^k ma^ eZlm _^p r^Zkl F?Bl bg ma^ k^`bhg aZo^ ikho^g maZm ma^r \Zg f^^m ma^ k^jnbk^f^gml h_ ma^ ]b__^k^gm _ng] ikhob]^kl Zg] Z\\hfiebla k^lneml Z\\hk]bgèr' Manl% EZmbg :f^kb\Zg Zg] <Zkb[[^Zg F?Bl aZo^ [^\hf^ dghpg _hk ma^bk \ZiZ\bmr mh ZmmkZ\m \hff^k\bZe _ng]bg`% lnkiZllbg` hma^k k^`bhgl bg ma^ phke]' FBQ Zg] ma^ FB? pbla mh maZgd ma^bk k^Z]^kl Zg] Zee ma^ iZkmb\biZm& bg` bglmbmnmbhgl _hk laZkbg` ma^bk _bgZg\bZe Zg] \ho^kZ`^ bg_hkfZ& mb mbhg Zg] Z]oZg\bg` mkZgliZk^g\r bg ma^ k^`bhg' P^ bgobm^ rhn mh ehhd Zm hnk ]ZmZ g^qm r^Zk Zl pêe' MICROFINANCE AMERICAS: THE TOP 100

2009

METHODOLOGICAL NOTE Composite Ranking This ranking is quantitative (all the indicators are quantifiable, none is qualitative), simple (easily reproduced) and results-oriented (the values must work as incentives to reach microfinance goals). It was developed by MIX, and it is utilized in similar products such as MIX Global 100. Rankings are calculated based on the percentile ranking of each of the indicators that comprise the three “pillars”: outreach, efficiency and transparency. After MFIs are screened out according to financial sustainability—no less than 90% of cost recovery— and size—no fewer than 5,000 active loans— the resulting pool of institutions is ranked according to the indicators for each of the three pillars. An average percentile ranking is determined for each pillar, based on the percentile rankings for each indicator described below. The three average percentile rankings for the pillars are then averaged to create an overall percentile ranking. The final MFI ranking is its sequence in the overall percentile ranking. Below is a detailed description of the three pillars and their indicators: Outreach: This pillar measures the expansion of access to financial services by means of the following indicators: ฀ Loans for microenterprise. A measure of clients reached by credit services. Favors larger MFIs, as well as MFIs with larger potential markets. ฀ Growth in number of loans to microenterprises. A measure of expansion of service. Favors smaller MFIs with small client bases. ฀ Market penetration. A measure of borrower outreach relative to an indicator of potential market. For two MFIs with the same number of borrowers, favors the one operating in a smaller market with fewer potential clients. ฀ Deposit mobilization. An average of scores for the following two indicators: ฀ Deposits/loan portfolio. A measure of an MFI’s ability to fund loans from client deposits. Favors institutions allowed to mobilize deposits. ฀ Depositors/borrowers. A measure of the balance of services between the activities of capture and placement.

MICROFINANCE AMERICAS: THE TOP 100

2009

Efficiency: This pillar measures the reduction of client costs through the following indicators: ฀ Cost per borrower/GNI per capita. A measure of the cost to service clients in relation to local income levels. Seeks to eliminate the difference in cost in each country, considering different standards of living in each and weighing the relative cost of individually serving each borrower. ฀ Profit/loan portfolio. A measure of the size of an MFI’s profit margin as a component of yield. If revenues are the sum of expenses and profits, profit levels are the one component of revenues most directly within an MFI’s control. Ranked inversely, this metric favors MFIs with smaller profit margins. MFIs that met the overall profitability requirements and posted losses for 2008 are scored as having zero profits. ฀ Portfolio quality. An average of the points obtained in two variables: ฀ Portfolio at risk >30 days. A measure of delinquency. May favor MFIs with internal accounts and/or group practices or those that follow severe write-off policies. ฀ Write-off ratio. A measure of actual loss on portfolio, as recognized by the MFI’s policy on portfolio management. Ranked inversely, favors MFIs with no or very lax write-off policies. Transparency: This pillar measures the public dissemination of performance results in a standard, comparable manner through the following indicators: ฀ Annual reporting on MIX Market. A measure of the availability of standard, comparable, publicly available performance results for an MFI. The score is based on the annual results published for an MFI on MIX Market for 2006, 2007 and 2008. ฀ Audits for MIX Market. A measure of the ability of MIX or outside analysts to validate the reported financial performance results. Based on the MIX Market diamond score, an MFI gets three points for information presented without audited financial statements, and four points for presenting audits. The score is the average of the 2007 and 2008 MIX Market profiles. General Information All information is presented in U.S. dollars, using the exchange rate for the year ending December 31, 2008. All data must be of sufficient quality and detail to stand up to critical examination. Financial data must be provided along with third-party documents verifying the accounts. All data are reclassified according to international financial reporting norms. Microfinance programs and institutions that are part of larger entities must also present

reliable financial statements in order to be considered for a ranking in the top-20 lists. MFIs that could not be fully analyzed were considered only for the lists based on volume and were marked with an asterisk (*). Following the MIX methodology, a microfinance institution is defined as one with financial products averaging less than 250% of the average GNI per capita in the country where it is based. For purposes of comparison, only institutions reporting more than 5,000 active loans were considered for this survey. It is possible that an MFI does not appear here because it was unable to disclose or did not disclose or provide the necessary information by the due date. For further information on the definitions and methods used, please visit www.iadb. org/micamericas and www.themix.org. Definitions of Types of Credit, According to MIX Microenterprise credit: Given to persons or enterprises to finance the production or trade of goods and services, usually directly to small businesses and microenterprises. Consumer credit: Given to persons to finance the purchase of consumer goods and services that have no commercial or enterprise purposes, including home improvement, health and education loans. Acknowledgements: The authors would like to thank Charles Cordier (MIX), Betty Zorrilla (MIX), Blaine Stephens (MIX), Ángel Salgado (REDCAMIF) and Samuel Pérez (PD) for helping expand MFI coverage. Many thanks also to the following organizations that provided invaluable assistance in facilitating data for this article: ACCION, ASOFIN, COPEME, FGV-EBAPE, FINCA International, FINRURAL, Opportunity International, ProDesarrollo, REDCAMIF y RFR. Finally, the authors want to acknowledge the following experts who provided valuable information for this analysis: Verónica Albarracín (COAC Maquita Cushunchic), Danilo Chávez (Caja Nuestra Gente), Juan Carlos Urgiles (COAC Jardín Azuayo), David Morales (Asociación Raíz), Francisco Moreno (Fundación Espoir), Xiomara Rizo (Fundación Nieborowski), Aníbal Montoya (FUNED), Walter Chávez (BanCovelo), Imelda Zaldívar (Apoyo Integral), Santa de Euceda (Financiera ODEF), Luis Ríos (FODEMI), Diego Fernández Concha (PRISMA), Víctor Telleria (Financiera FAMA), Jorge Canizales (ENLACE), Arthur S. de C. Pereira (CEAPE Maranhão), María Mercedes Gómez (Bancamía), Stelio Gama (CrediAmigo), Elizabeth Ventura (EDPYME Confianza), Katia Corroy Castro (ALSOL), Alejandro Flores (CompartamosBanco), María Emilia Alvarez (EDPYME Solidaridad and Desarrollo) and Janio de Souza (Central Cresol Baser).