ANNUAL ASSESSMENT OF
THE MICROFINANCE INDUSTRY
FINANCIAL SERVICES FOR ALL
Produced by Pakistan Microfinance NetworkDesign and Layout by O3 Interfaceswww.o3interfaces.com
ANNUAL ASSESSMENTOF THE MICROFINANCE INDUSTRY
Pakistan Microfinance Review 2016Financial Services for all
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Editorial Board
Mr. Ghalib NishtarChairperson, Editorial BoardPresident, Khushhali Bank Limited (KBL)
Syed Samar HusnainExecutive Director, Development Finance Group, State Bank of Pakistan (SBP)
Mr. Blain StephensCOO and Director of Analysis,Microfinance Information eXchange, Inc. (MIX)
Mr. Yasir AshfaqCEO,Pakistan Microfinance Investment Company (PMIC)
Mr. Azfar JamalExecutive Vice President, Head Payment Services & E-Banking, National Bank of Pakistan (NBP)
Mr. Masood Safdar GillDirector Programme, Urban Poverty Alleviation Programme, National Rural Support Programme (NRSP)
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Pakistan Microfinance Review 2016Financial Services for all
PMN Team
Mr. Ali BasharatAuthor and Managing Editor
Mr. Miqdad HaiderCo-Author and Data Collection
Ms. Saba AbbasCo-Author and Data Collection
Ms. Saquiba AzizData Collection
Acronyms and Abbreviations
AC&MFD Agriculture and Microfinance Division
ADB Asian Development Bank
AMRDO Al-Mehran Rural Development Organization
AML Anti-Money Laundering
BPS Basis Points
CAR Capital Adequacy Ratio
CIB Credit Information Bureau
CDD Customer Due Diligence
CGAP Consultative Group to Assist the Poor
CGL Credit Guarantee Limits
CNIC Computerized National Identity Card
CPP Client Protection Principles
CPI Consumer Price Index
CPI Client Protection Initiative
CPC Consumer Protection Code
DFI Development Financial institute
DFID Department for International Development, UK
DPC Deposit Protection Corporation
DPF Depositor’s Protection Fund
ECA Eastern and Central Europe
ESM Environment and Social Management
EUR Euro
FATF Financial Action Task Force
FIP Financial Inclusion Program
FINCA FINCA Microfinance Bank Ltd.
FMFB The First Microfinance Bank Ltd.
FSS Financial Self Sufficiency
FY Financial Year
G2P Government to Person
GBP Great Britain Pound
GDP Gross Domestic Product
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GLP Gross Loan Portfolio
GNI Gross National Income
GoP Government of Pakistan
IAFSF Improving Access to Financial Services Support Fund
IFAD International Fund for Agricultural Development
IFC International Finance Corporation
JWS Jinnah Welfare Society
KBL Khushhali Bank Ltd.
KF Kashf Foundation
KIBOR Karachi Inter-Bank Offering Rate
KP Khyber Pakhtunkhwa
KYC Know Your Customer
LCPS Low Cost Private Schools
MIV Microfinance Investment Vehicle
MIX Microfinance Information Exchange
MCGF Microfinance Credit Guarantee Facility
MCR Minimum Capital Requirement
MENA Middle East and North Africa
MFB Microfinance Bank
MFCG Microfinance Consultative Group
MF-CIB Microfinance Credit Information Bureau
MFP Microfinance Providers
MFI Microfinance Institution
MFT Microfinance Transparency
MIS Management Information System
MMFB Mobilink Microfinance Bank Ltd
MSME Micro, Small and Medium Enterprises
MIV Microfinance Investment Vehicle
MO Micro-Options
NADRA National Database and Registration Authority
NBMFI Non-Bank Microfinance Institutes
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NGO Non-Governmental Organization
NFLP National Financial Literacy Program
NFIS National Financial Inclusion Strategy
NMFB Network Microfinance Bank Limited
NPLs Non-Performing Loans
NRDP National Rural Development Program
NRSP National Rural Support Programme
OPD Organization for Participatory Development
OSS Operational Self Sufficiency
OTC Over-The-Counter
P2P Person to Person
P2G Person to Government
PAR Portfolio at Risk
PBA Pakistan Banks Association
PBS Pakistan Bureau of Statistics
PKR Pakistan Rupee
PMN Pakistan Microfinance Network
PO Partner Organization
PPAF Pakistan Poverty Alleviation Fund
PPI Grameen Progress out of Poverty Index
PRISM Programme for Increasing Sustainable Microfinance
PRSP Punjab Rural Support Programme
PTA Pakistan Telecommunication Authority
ROA Return on Assets
ROE Return on Equity
RSP Rural Support Programme
SBP State Bank of Pakistan
SC The Smart Campaign
SDS SAATH Development Society
SECP Securities and Exchange Commission of Pakistan
SPTF Social Performance Task Force
SME Small and Medium Enterprise
SRSO Sindh Rural Support Organization
SRDO Shadab Rural Development Organization
SVDP Soon Valley Development Program
TMFB Telenor Microfinance Bank Ltd
UBL United Bank Limited
USD United States Dollar
USSPM Universal Standards for Social Performance Management
VDO Village Development Organization
WPI Wholesale Price Index
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Highlights
Year 2012 2013 2014 2015 2016
Active Borrowers(in millions)
2.0 2.4 2.8 3.6 4.2
Gross Loan Portfolio(PKR billions)
33.1 46.6 61.1 90.2 132.0
Active Women Borrowers(in millions)
1.3 1.4 1.6 2.0 2.3
Branches 1,460 1,606 1,747 2,754 2,367
Total Staff 14,648 17,456 19,881 25,560 29,413
Total Assets(PKR billions)
61.9 81.5 100.7 145.1 225.3
Deposits(PKR billions)
20.8 32.9 42.7 60.0 118.1
Total Debt(PKR billions)
24.9 26.9 31.1 44.5 54.7
Total Revenue(PKR billions)
12.5 17.3 24.3 32.8 41.8
OSS(percentage)
109.5 118.1 120.6 124.1 127.0
FSS(percentage)
107.5 116.5 119.6 121.0 123.9
PAR > 30(percentage)
3.7 2.5 1.1 1.5 1.2
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Contents
01
02
03
The Year in Review
Financial Performance Review
Social Performance
Macroeconomy and Microfinance Industry 03
Policy and Regulatory Environment 05
Industry Initiatives 06
Conclusion 09
Scale and Outreach 14
Financial Structure 22
Profitability and Sustainability 25
Productivity 29
Risk 30
Conclusion 31
Analysis of the Sector’s SP Indicators 35
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Challenges and Opportunities
Annexures
Digital Financial Services 51
Transition Challenges 53
The Interest Rate Conundrum 54
Responsible Finance & Financial Literacy 54
Meeting the Funding Challenge 56
AI - Performance indicators of industry 2016 61
AII - Performance indicators of individual MFPs 2016 67
AIII - Social Performance Indicators 2016 115
Annexure B - Regional Benchmark 175
Annexure C - Sources of Data 2016 177
Annexure D - Adjustment to Financial Data 187
Annexure E - Terms and Definitions 191
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Annual Assessment of the Microfinance Industry
Section 1THE YEAR IN REVIEW
The Year in Review
Macroeconomy and Microfinance Industry
The year 2016 saw the microfinance industry continue to grow and expand. Outreach continued to grow at a double-digit rate with notable expansion in the deposit base of the microfinance industry. Overall, the microfinance industry is now viewed as an important pillar in furthering the financial inclusion agenda in the country.
A favourable macroeconomic environment and economic stability played a catalytic role in the growth witnessed by the industry over the last one year. As a follow up to the launch of the National Financial Inclusion Strategy (NFIS) and the introduction of a regulatory framework for Non-Bank Microfinance Institutes (NBMFI) by the Securities & Exchange Commission of Pakistan (SECP) in 2015, 2016 saw steps being taken to promote access to finance and
transition of Microfinance Institutes (MFIs) and Rural Support Programmes (RSPs) to Non-Bank Microfinance Institutes.
On the funding side the microfinance industry saw a practitioner successfully tapping capital markets to raise debt and several successful debt placements were made by international lenders. Branchless banking continued to grow and mature as the percentage of transactions through m-Wallets picked up as compared to over-the-counter (OTC) transactions. Lending to micro-enterprises by MFBs and Interest Free Loans under the Prime Minister’s Youth Loan Scheme also witnessed an increase. On the responsible finance side, a number of advances took place especially in setting up client grievance redressal mechanisms.
Pakistan’s economy continued its upward momentum during the fiscal year 2016. The country’s GDP witnessed an 8-year high of 4.7 percent during 2016 as compared to 4.0 percent in 20151. Higher infrastructure spending, better energy supplies, lower interest rates and declining security concerns contributed to this
impetus. Nevertheless, the dismal performance of the agriculture sector partially offset the growth momentum, resulting in the economy falling short of the target of 5.5 percent. Despite modest growth in the economy, the microfinance industry surged by nearly 16 percent in terms of outreach while the Gross Loan Portfolio grew by
1 Annual Report 2015-16 (State of the Economy), SBPSect
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2 MicroWatch, A quarterly outreach publication, Qtr 4, 2016, PMN3 Annual Report 2015-16 (State of the Economy), SBP4 Ibid
47 percent to close at PKR 132 billion2.
Inflation measured by the consumer price index (CPI) continued its downward trajectory during the year. The annual inflation clocked in at 2.9 percent as compared to 4.5 percent during the fiscal year 2015 on the back of a stable exchange rate and lower oil prices3. This led to the continuation of an expansionary monetary policy by State Bank of Pakistan whereby the policy rate witnessed cuts of 50 and 25 basis point (bps) during fiscal year 2016 bringing it to 5.75 percent as shown in Exhibit 1.1. This should result in reduced cost of borrowing for microfinance
practitioners.
On the fiscal front, the current account deficit deteriorated further as compared to last year, though financial inflows kept it afloat. Similarly, the trade deficit also suffered and expanded by 6.9 percent during the period under review. Nevertheless, growth in tax revenues and stringent control over current expenditures reduced the overall budget deficit to 4.6 percent from 5.3 percent in previous year4. Moreover, SBP’s foreign exchange reserve witnessed an
all-time high of USD 18.1 billion in year 2016 on the back of support from the IMF programme, short-term commercial borrowing, and a surge in Foreign Direct Investment (FDI). Although the exchange rate has remained stable over the period under review, it continued to be under pressure owing to an expanding trade deficit. This exchange rate stability may not be sustainable in the long run and may require an adjustment at some point in time. Meanwhile the decline in interest rates remained positive for private businesses. Credit to the private sector witnessed an expansion of PKR 460.6 billion in 2016, which is more than double the level of
expansion seen during fiscal year 2015. All the major sectors resorted to bank borrowing to fulfill their financing needs. Moreover, decline in government borrowing from commercial banks coupled with improvement in the business environment allowed the private sector to reap benefits of the lowered policy rate. This bodes well for MFPs as well which are showing increased reliance on commercial borrowing to meet their funding needs.
Exhibit 1.1: Discount rate, KIBOR and CPI Trend
Discount Rate6 - months KIBORConsumer Price Inflation (Average)
2012
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2013 2014 2015 2016
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Policy and Regulatory EnvironmentOne of the main reasons for the growth in the microfinance industry has been the enabling policy and regulatory environment, which has been recognized globally at various forums. Pakistan’s regulatory and enabling environment for financial inclusion has been ranked 5th by The Economist5. Significantly the last year witnessed the transformation of MFIs and RSPs into regulated entities.
Transition to NBMFIs Following amendments in the Non-Bank Finance Companies Framework to allow for the establishment of Non-Bank Microfinance Institutes (NBMFIs), transformation of non-bank microfinance players into regulated entities under the umbrella of Securities and Exchange Commission of Pakistan was initiated. During the entire process, there was close interaction between the industry association, PMN, national apex, PMIC, and SECP itself to ensure a smooth transition.
Initially awareness sessions around the regulations were conducted by both SECP and PMN for the forty plus non-bank MFPs. As many of the entities had worked in an unregulated environment since inception, transforming them into regulated entities was quite challenging. While regulations were welcomed by all as the next step forward, several issues arose which had to be addressed during the transition.
Although some of the larger companies had been registered as companies, several others had to first register as companies before applying for licenses. To facilitate the players in getting the licenses the deadline for obtaining the licenses was extended from early 2016 to end of 2016. Another notable issue was meeting the Minimum Capital Requirements of PKR 50 million. Several smaller organizations were unable to meet this criterion and were assisted by PMIC in meeting the shortfall through endowments or subordinated debt. In addition, another prominent issue had to do with
corporate governance of these organizations. Cross directorship and the requirement for directors to meet the fit and proper criteria as prescribed by SECP remained key impediments. SECP gave an exemption for cross directorship up till April 2017 and meeting the requirement for fit and proper criteria was delinked from the licensing process. In addition, keeping in view the dynamics of the microfinance industry, people having expertise in fields like the social sector and economic development were allowed on the boards of NBMFIs.
Moreover, to facilitate small borrowers and reduce costs, the requirement for generating a credit inquiry for any loan above PKR 5,000 was revised upwards to PKR 10,000. The license fee was also reduced by half from PKR 750,000 to PKR 375,000 to facilitate the players.
As a result, over 21 entities have been licensed by SECP as NBMFIs and the remaining are in the process of acquiring the license. It is hoped that the transformation of non-bank players into NBMFIs would lead to transparency, create a level playing field in the industry and accelerate growth like the MFBs which are regulated by the central bank.
Reaching Out to Small & Marginalized Farmers According to the Agriculture Census 2010, there are nearly 5.3 million (out of a total of 8.3 million) farm households with landholdings below 5 acres. Despite having a large share in the total agricultural output, the small individual landholdings result in difficulty in obtaining credit from formal financial institutions.
The microfinance industry plays a crucial role in providing access to finance to small and marginalized farmers as the sector enjoys excellent outreach in rural areas, with over 54 percent of the total current clientele belonging to rural areas and over 42 percent affiliated with the
5 The Global Microscope 2016: The enabling environment for financial inclusion, EIU,20166 MicroWATCH, A quarterly outreach publication by PMN, Issue 42, Quarter 4, 2016Se
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Industry InitiativesThe year saw several new initiatives being undertaken especially on the funding side while existing ones were enhanced and expanded.
Branchless Banking Buoyed by an enabling regulatory and supportive business environment, the branchless banking sector in the country continued to expand in the year 2016. With the National Financial Inclusion Strategy (NFIS) aiming to provide access to finance to 50 percent of the adult population and 25 percent of adult women by 20207, digital financial services are likely to play a crucial role in meeting these goals. Branchless banking provides an excellent channel for the microfinance industry to increase outreach, reduce reliance on conventional branch networks and hence reduce operating costs. Utilizing digital credit models to extend microloans and mobile money accounts to mobilize savings are some tools available to the practitioners to boost financial inclusion at the base of pyramid.
All the main indicators of branchless banking have exhibited robust growth over the last one year. The value of branchless banking transactions grew from PKR 1,872,451 million to PKR 2,169,541 million showing a growth of 16 percent over the year8. Over the same time,
the number of transactions grew by 28 percent from 374 million to 478 million9. The total number of branchless banking accounts stood at 19.96 million at the end of the year showing an increase of 30 percent10. Out of the total branchless banking accounts 49 percent of them were active. Women accounted for 21 percent of the mobile accounts11. Total deposits in the m-Wallet accounts stood at PKR 11,717 million12. Branchless banking continues to be dominated by three players namely Easypaisa, Jazzcash and UBL Omni which accounted for 98 percent of the branchless banking accounts at the end of 2016 as compared to 97 percent13 in the previous year despite the entry of several new players in the arena. As the industry matures the adoption of m-Wallets is increasing as compared to OTC transactions. The m-Wallet to OTC transaction ratio has increased from 34 percent in 2015 to 49 percent in 201614.
Nearly 19 MFPs are using branchless banking channels primarily for recollection for loans, however, there remains scope for using them for additional services such as disbursements, savings and insurance. In this regard, alliances and partnerships between branchless banking providers and MFPs would go a long way in broad adoption of digital channels for extending financial services.
agriculture & livestock sector6. There remains, however, considerable room for expansion in serving this market niche.
SBP has included MFIs and RSPs in its annual agriculture disbursement targets and PMN has been made part of the Agriculture Credit Advisory Committee (ACAC) which is chaired by the Governor SBP and the Agriculture Credit Committee (ACC). An initial target of a GLP of 34 billion was assigned to 16 MFIs and RSPs in the
FY 2016.
As MFIs and RSPs are non-deposit taking institutions, financing remains a key challenge. To facilitate them, in 2016, SBP allowed commercial banks to provide wholesale lending to MFIs and RSPs to meet their annual farm sector credit target to subsistence farmers. It is hoped that the resulting synergies between commercial banks and NBMFIs will result in meeting the financing needs of small and marginalized farmers.
7 National Financial Inclusion Strategy (NFIS), SBP, 20158 Branchless Banking Newsletter, Multiple Issues, SBP9 Ibid10 Ibid11 Ibid12 Ibid13 Ibid14 Ibid
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Client Protection and Social Performance Management The year in review saw many advances in the client protection and social performance management domain, reflecting the commitment of the sector to becoming a double bottom line industry.
The State Bank of Pakistan introduced revised protocols for Client Grievance Handling Mechanisms (CGHM), which are a comprehensive set of guidelines, highlighting the overarching principles to establish robust CGHM in banks. The protocols put forth specific rules for establishment and operation of the systems at all banks including microfinance banks.
Considering the importance of Grievance Redressal Mechanisms in ensuring the provision of responsible and client-centric financial services, PMN in collaboration with The Smart Campaign, developed a progressive GRM framework to establish minimum standards of good practice for its member MFPs, keeping in view their scale and scope of operations. The project was undertaken realizing the need for standardization in the GRM domain as there remains a great deal of variation in the GRM processes employed by the MFPs. Since PMN’s partners range from very small institutions to large banks, PMN is keen on supporting the microfinance industry by helping them improve their practices around grievance redressal. Based on the framework, over the next two years, PMN will extend technical assistance to its members to bring their practices at par with the standards
outlined.
International LendingThe year saw continued investor interest in the industry with several international Development Financial Institutions, Microfinance Investment Vehicles (MIVs) and impact investors exploring the market. Eco Trade & Development Bank, ADB, Symbiotics, Incofin, Triple Jump, Proparco, Blue Orchard and Microvest were among the investors who actively explored the markets largely for debt placement.
Last year, saw the successful finalization of deals worth over USD 14.5 million by various funds to Kashf Foundation, USD 20 million by ADB and USD 5 million by ECO Trade & Development Bank to KBL and USD 10 million for NRSP Bank. Going forward it is expected that several mid-tier entities would also likely finalize deals with international lenders this year for debt.
Tapping Capital Markets With the industry growth in double digits over the last few years, the funding needs of the industry are also growing. Increasingly, practitioners are looking towards diversifying their funding sources and capital markets are a natural avenue for that.
The year saw a successful attempt by an MFP to tap the debt capital market to meet funding needs. NRSP Bank issued a Term Finance Certificate worth PKR 3 billion with a tenor of 2 years. JS Bank and Faysal Bank were lead arrangers for the facility. The principal amount is payable in 8 equal installments and the bonds
Box 1FINCA and Khushhali Microfinance Bank becomes first MFB in Pakistan to get Smart Certified
FINCA Microfinance Bank and Khushhali Bank Limited underwent a comprehensive third party smart assessment in 2016 and earlier 2017 respectively, with both banks becoming the first ones among microfinance Banks in Pakistan to be Smart Certified– a testament to the organizations’ focus on client centricity and responsible practices. Client protection has always been a conscious decision made by FINCA and KBL and institutionalizing it has been a process of exchange and learning from the clients. An international recognition of these standards will help stakeholders, including clients; understand the level of commitment to FINCA and KBL’s clients and its priority of aligning products, services, and procedures to clients’ needs.
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are priced at 3-months KIBOR + 2.35. The facility is secured against a cash coverage of PKR 300 million and hypothecation of current and future current assets of the bank. A key highlight of the transaction was that unlike previous issues the Term Finance Certificate was not secured through a credit guarantee.
Interest-Free Loan SchemeThe Interest Free Loan Scheme was launched by the current Government as part of the Prime Minister’s Youth Loan Scheme in 2014 with an aim of reducing poverty and generating employment. Pakistan Poverty Alleviation Fund (PPAF) has been tasked by the Government of Pakistan to mobilize, implement and monitor the scheme. A key element in the monitoring process has been to ensure the there is no overlap between conventional microfinance and interest free loans.
The scheme was launched with an allocation of PKR 3.5 billion out of which PKR 3.1 billion was for on-lending. By the end of 2016, PKR 5.5 billion had been disbursed through the revolving of funds15. The scheme is being implemented in 431 Union Councils across the country through 26 MFIs16. Moreover, more than 50,000 recipients of the loans were BISP beneficiaries who are now running their own businesses instead of relying on cash grants.
Micro-enterprise Lending Micro-enterprise lending has the potential to fill the financing gap between the microfinance and traditional Small and Medium Enterprises (SME). The entities falling in this gap have similar dynamics as the clientele of the microfinance
industry. They also have the potential to generate employment and grow their business.
At present 8 out of 11 MFBs are lending to this segment and the number of borrowers in this segment has risen to 32,000 from 12,000 in 201517 showing a growth of 261 percent. In the same time, the total loan outstanding for the segment stood at PKR 7.3 billion up from PKR 3 billion18 as shown in Table 1.1 below.
While the borrowers from this segment are a small fraction of the overall borrowers of the microfinance industry but they account for nearly 5 percent of the total GLP. Lending to this micro-enterprise segment will likely increase the funding requirement of MFPs exponentially and dedicated funding lines for the segment would likely increase lending and encourage NBMFIs to cater to this segment.
Commencement of Operations by PMICIncorporated in August 2016 as an Investment Finance Company, PMIC is setup jointly by Pakistan Poverty Alleviation Fund (PPAF), Department for International Development (DFID) through Karandaaz Pakistan and the German Development Bank (KFW) to catalyze and lead the next phase of growth in the microfinance sector of Pakistan as the wholesale lender and sector developer. Recognized as an important financial sector player in the National Financial Inclusion Strategy (NFIS) launched by Government of Pakistan in 2015, the purpose of the organization is to improve financial inclusion, employment and wellbeing of the poor by providing wholesale financing to the microfinance service providers in the country.
Year 2013 2014 2015 2016
Number of Loans 136 2,185 12,612 32,958
GLP 33,902,858 530,587,461 3,061,824,879 7,279,497,227
Average Loan Size (PKR) 249,286 242,832 242,771 220,871.9348
Table 1.1: Micro-enterprise Lending19
15 PPAF 16 Ibid17 MicroWATCH, A quarterly outreach publication, PMN, Multiple Issues 18 Ibid19 Ibid
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The institution also has a role in the development and strengthening of the microfinance sector by actively contributing to policy and regulations for microfinance, capacity building of microfinance players as well as to promote innovation and responsible financial practices in the sector. In sync with the Microfinance Growth Strategy 2020 articulated by the sector, PMIC envisions to become the largest provider of wholesale funds to the sector to increase the number of microcredit borrowers to 10 million by 2020.
PMIC is taking over the task PPAF has successfully carried out for more than 16 years for the development of the microfinance sector in the country which has been recognized and acknowledged both nationally and internationally. PMIC started its operations as a separate legal
entity in December 2016 by taking over PPAF’s portfolio in the microfinance sector. As the apex institution and sector developer, PMIC will issue a broad array of funding instruments and financial services to its borrowers (Non-bank Microfinance Institutions and Microfinance Banks) in the form of senior debt, guarantees, debt syndication, mezzanine capital among others. As a private sector commercial entity, PMIC is strategically placed to raise funds from commercial banks as well as capital markets to raise the quantum of funding available for the sector. PMIC aims to be the sector developer with emphasis on development of need based products for the sector which are innovative, market-based, abiding by international best practices, technologically savvy and, above all, are beneficiary-centric.
ConclusionOverall, the microfinance industry continued its upward trajectory in the 2016. With the NFIS in place and the entire microfinance sector under a regulatory umbrella, the players have in place a supportive environment to grow and become a significant part of the financial landscape. Moreover, with the industry infrastructure in place including the credit information bureau, digital financial services, responsible finance initiatives, players have an excellent opportunity to continue expanding outreach and tapping new market segments.
Capital markets, international lending and the Pakistan Microfinance Investment Company (PMIC) all provide avenues for MFPs to meet their increasing financing needs. Continued economic stability will continue to play a crucial role in the progress of the sector. In addition, players need to strengthen their corporate governance, build capacity, focus on product development and innovation and explore newer markets to become an increasingly important part of the financial landscape.
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Section 2FINANCIAL PERFORMANCE REVIEW
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Financial Performance Review
This section provides a detailed analysis of the financial performance of Pakistan’s microfinance industry in 2016. Performance has been assessed on three levels: industry wise, across peer groups and institution wise. The analysis is backed by 88 financial indicators, calculated from the audited financial statements of the reporting organizations. These indicators have been compared across time and regions to develop a
reliable and fair assessment of sector.
Detailed financial information is provided in Annex A-I and A-II of the PMR. Aggregate data has been reproduced for five years, whereas, the peer group and institution specific data has been made available only for the year 2016.
A total of 35 MFPs submitted their audited
Box 2.1Peer Groups
Microfinance InstitutionA non-bank microfinance institution (NBMFI) providing microfinance services. With the introduction of the non-bank microfinance regulatory framework by SECP in 2016, the institutions carrying out microfinance services are required to be registered with SECP as NBMFIs. Presently, 11 MFIs have obtained the NBMFI license while 12 MFIs are in the process of obtaining the license.
Microfinance BankA commercial bank licensed and prudentially regulated by the SBP to exclusively service the microfinance market. The first MFB was established in 2000 under a presidential decree. Since then, 11 MFBs have been licensed under the Microfinance Institutions Ordinance, 2001. MFBs are legally empowered to accept and intermediate deposits from the public. Currently there are 11 MFBs operating in the country.
Rural Support ProgrammeA non-bank microfinance institution (NBMFI) providing microfinance services. An RSP is differentiated from the MFI peer group based on the purely rural focus of its credit operations. As of now, these organizations are in the process of registering with SECP under the new regulatory framework for NBMFIs. At present, 3 organizations have obtained the license while 1 RSP is in the process of obtaining the license.
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financial statements for PMR 2016. For a complete list of reporting organizations refer to Annex B.
Industry players are categorized into three groups for benchmarking and comparison purposes: Microfinance Banks (MFBs), Microfinance Institutions (MFIs) and Rural
Support Programmes (RSPs). See Box 2.1 for detailed definitions.
The distribution of respondents (number of reporting organizations) by peer group is given in Exhibit 2.1. The MFI peer group comprises of the largest number of respondents followed by MFBs and then RSPs.
Exhibit 2.1: Distribution of Respondents by Peer Groups
MFI 22
RSP 4
MFB 9
Scale and OutreachThis section focuses on outreach indicators to provide a performance analysis of the industry in terms of credit growth and composition, deposit mobilization, depth of outreach and gender.
Scale and Outreach: BreadthIn the year 2016, credit outreach remained positive with active borrowers increasing to 4.2 million from 3.6 million in 2015 recording a growth of 16%. Meanwhile, the gross loan portfolio witnessed a staggering growth of 47% and crossed the PKR 100 billion mark. The GLP stood at PKR 132 billion from PKR 90 billion in
2015 (Exhibit 2.2). Among the MFPs, growth in active borrowers was driven by Akhuwat which added 162,000 borrowers, registering a growth of 40%. Telenor Microfinance Bank added 98,000 borrowers to its portfolio in 2016, while NRSP Bank added 67,000 borrowers.
The industry in terms of outreach remained dominated by 9 MFPs comprising of 80 percent of the total active borrowers as shown in Exhibit 2.3. NRSP maintained its top position with a portfolio of 650,000 borrowers. During the year under review, Akhuwat surpassed Khushhali Bank and became the second largest provider of micro-credit in terms of active borrowers by recording 568,000 borrowers. Khushhali Bank reported 557,000 active borrowers in its portfolio.
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Among the peer groups, MFBs continue to dominate the sector with a market share of 42% - registering an increase of 3%. This increase is attributed to growth in outreach of TMFB and NRSP-B. During the same period, the MFIs share witnessed a marginal reduction of 1% from last
year and stood at 37%. Similarly, the RSPs market share also reduced to 21% from 23% in 2015 as shown in Exhibit 2.4.
In terms of GLP, MFBs enjoy the largest market share of 68% among the peer group, followed
Exhibit 2.2: Growth in Number of Active Borrowers and GLP
0.5020
40
60
80
100
120
140
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2012 2013 2014 2015 2016
Active borrowersGLP
Act
ive
Bor
row
ers
in M
illio
ns
GLP
in P
KR
Bill
ions
Exhibit 2.3: Active Borrowers of Largest MFPs
NRSP
Akhuwat
KBL
TMFB
NRSP-B
ASA-P
FMFB
KF
FINCA
100 200 300 400 500 600 700
20152016
Active Borrowers in Thousands
90132
247215
177221
263322
258326
287385
521557
406568
590650
Exhibit 2.4: Share in Active Borrowers by Peer Group
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MFBMFIRSP
27%
34%
39% 40%
35%
25%
42%
31%
27%
39%
38%
23%
42%
37%
21%
2012 2013 2014 2015 2016Sect
ion
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by MFIs and RSPs having a market share of 20% and 12%, respectively. The MFBs share in total GLP witnessed a growth of 7% which is mainly on account of substantial increases in the portfolios of KBL, FINCA, U Bank, MMFB, and NRSP-B. The greater average loan size of MFBs (PKR 51,771) among peer groups is also a factor for the largest market share. Despite the robust performance by MFIs and RSPs with increased GLP by PKR 27 billion and PKR 16 billion respectively, their market share weakened in the current year.
During the current year, total GLP for the industry stood at PKR 132 billion up from PKR 90 billion in the previous year. Although this growth was supported by all the players of the sector, however, MFBs contributed the most, adding PKR 33.7 billion to their portfolios, followed by MFIs, and RSPs which added PKR 6 billion and PKR 2.3 billion, respectively (see Exhibit 2.6). This growth is supported by an increase in active borrowers coupled with improvement in the average loan size.
In terms of GLP, the top nine players dominate the sector accounting for 78% of the overall GLP. KBL continued to lead with a GLP of PKR 23.3 billion, recording a healthy growth of 33% over the last year. This growth is supported by a larger borrowers’ portfolio coupled with a high average loan size (PKR 48,508). TMFB continued to maintain its second position with a GLP of PKR 15.9 billion. During the period under review, NRSP-B surpassed NRSP and became the third largest provider with a GLP of PKR 13.3 billion. Moreover, FINCA’s performance remained impressive registering a growth of 85% with an addition of PKR 4.7 billion to its portfolio.
During the period under review, the industry witnessed a substantial growth (88%) in number of depositors thereby taking the total depositors to 15.9 million from 10.7 million in 2015 as shown in Exhibit 2.8. Similarly, the value of deposits also posted hefty growth of 41% and grew to PKR 118 billion from PKR 60 billion a year earlier. The largest increase in number of depositors came from Mobilink Microfinance Bank (MMFB)
Exhibit 2.5: Share of GLP by Peer Group
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MFBMFIRSP
20%
23%
57% 60%
22%
18%
58%
24%
18%
61%
23%
16%
68%
20%
12%
2012 2013 2014 2015 2016
Exhibit 2.6: GLP by Peer Group
MFBMFIRSP
20
40
60
80
100
120
140
2012 2013 2014 2015 2016
PK
R in
Bill
ions
18.7
7.66.7
28.1
10.28.4
36.8
15.3
11.4
55.4
21.0
13.7
89.1
27.0
16.0
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which added 4.9 million depositors in the current year and became the industry leader with total depositors standing at 8.1 million. This growth was followed by KBL and FMFB with an addition of 240,000 and 162,000 depositors, respectively. This astounding increase in the depositors can be attributed to growth in mobile banking activities, especially opening of m-Wallet accounts. Government of Pakistan’s policy of biometric verification of all mobile sim card holders has eased the process of opening an m-Wallet account. During the period under review, performance of TMFB in terms of depositors remained dull, as the bank’s total depositors witnessed a decline of 293,000. This is mainly due to closure of dormant m-Wallet accounts.
TMFB remained the largest contributor to the value of deposits by adding PKR 12.1 billion, taking the deposit base to PKR 27.8 billion from PKR 15.7 billion in 2015 as shown in Exhibit 2.9. This growth was followed by NRSP-B which increased its deposit base by PKR 9.7 billion,
taking its total deposits outstanding to PKR 16.9 billion in the current year.
There was an impressive growth in deposit base by MFBs in the current year leading to a considerable increase in Deposit-to-GLP ratio, from 108% in 2015 to 133% in 2016 posting a jump of 24% (Exhibit 2.10). This ratio depicts MFBs are mainly relying on deposits to meet their funding needs, thereby reducing their cost of funds to 5.1% from 5.7% a year earlier. Moreover, a higher deposit-to-GLP ratio ascertains that MFBs have excess funds on hand and are adequately liquid, which remains positive for the sector.
Micro-insurance continued its upward trajectory during the year under review showing healthy growth. The number of policy holders increased to 5.8 million from 4.6 million a year earlier thus posting a growth of 28% (Exhibit 2.11). Moreover, the sum insured showed a remarkable growth of 85% thereby taking the total sum insured to PKR 150 billion in 2016 from PKR 81 billion in 2015.
Exhibit 2.7: GLP of 9 Largest MFPs
KBL
TMFB
NRSP Bank
NRSP
FINCA
FMFB
Akhuwat
AMFB
MMFB
10 20 30
20152016
PKR in Billions
0.15.9
0.06.3
4.88.1
5.68.3
5.510.2
10.112.0
9.113.3
12.215.9
17.523.3
Exhibit 2.8: Growth in Deposits and Number of Depositors
2012 2013 2014 2015 2016
DespositorDeposits Outstanding
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Dep
osito
rs in
Tho
usan
ds
20
40
60
80
100
120
140
Dep
osits
out
stan
ding
in B
illio
ns
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Growth in policy holders was mainly fueled by the MFIs peer group which added 1.3 million new policy holders – taking their market share to 44% from 28% in 2015, which was followed by MFBs, which added 507,000 policy holders. However, the sum insured remained dominated by the
MFB peer group with an addition of PKR 27 billion even though the market share reduced to 50% from 60% in the previous year. KF surpassed NRSP to become the largest provider of micro-insurance with 1.5 million policy holders. KF was followed by NRSP which recorded 905,000 policy
Exhibit 2.9: Deposit Growth by MFB
TMFB
KBL
FMFB
NRSP-B
FINCA
AMFB
MMFB
Ubank
Advans
20152016
5 10 15 20 25 30
PKR in Billions
0.00.0
1.18.1
3.210.3
10.46.1
11.17.3
16.99.7
12.212.5
21.215.7
27.8
4.5
Exhibit 2.10: Deposit-To-GLP Relation for MFBs
2012 2013 2014 2015 2016
DepositsDeposit-to-GLP
20%
40%
60%
80%
100%
120%
140%
Dep
osit-
to-G
LP R
atio
20
40
60
80
100
120
140
In P
KR
Bill
ions
GLP
Exhibit 2.11: Growth in Number of Policy Holders & Sum Insured
2012 2013 2014 2015 2016
Policy HoldersSum Insured
20
40
60
80
100
120
140
160
Sum
Insu
red
in P
KR
Bill
ions
1.70
2.20
2.70
3.20
3.70
4.20
4.70
5.50
5.70
6.20
Pol
icy
Hol
ders
in m
illio
ns
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holders. Akhuwat remained the third largest provider with 665,000 policy holders. In terms of sum insured, KF again dominated the sector and recorded PKR 38.4 billion, followed by KBL with PKR 25.2 billion and NRSP moving down to third place having PKR 20.9 billion worth of sum insured. The sector remained dominated by
health and credit life insurance having a market share of 46% and 52%, respectively.
Scale and Outreach: Depth The depth of outreach in microcredit operations is measured by a proxy indicator: average loan balance per borrower in proportion to per capita Gross National Income (GNI). A value below 20 percent is assumed to mean that the MFP is poverty focused. However, the trend over the
years reveals that the industry’s ratio is following an upward trajectory, which is mainly caused
by the continuous increase in the MFB ratio of average loan balance to per capita GNI. Similarly, MFIs and RSPs are also showing an increasing trend, albeit at a slower pace. This is due to industry’s shift in focus towards larger loan sizes, demonstrating the realization among the players of appropriate loan sizes in the wake of Pakistan’s
inflationary environment. Moreover, increase in enterprise lending across the sector also demands larger loan sizes, which could be another factor for the upward movement in the ratio of average loan balance to per capita GNI. Exhibit 2.12 highlights that among the peer groups the MFBs’ ratio stood at 33% recording an increase of 8% during 2016. This rise can be attributed to an increase in lending to microenterprises by MFBs. Meanwhile, the ratio of MFIs and RSPs witnessed a modest increase of 1 percent each.
Exhibit 2.12: Depth of Outreach by Peer Groups
MFIRSPIndustryCut-offMFB
5%
10%
15%
20%
25%
30%
35%
2012 2013 2014 2015 2016
Ave
rage
Loa
n B
alan
ce P
er G
NI
Exhibit 2.13: Lending Methodology Trend
Individual BorrowingGroup Borrowing
2012 2013 2014 2015 2016
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Act
ive
Bor
row
ers
In T
hous
ands
18%
82%
25%
75%
31%
69%
42%
58%
51%
49%
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Lending Methodology
For many years the microfinance industry remained dominated by the group lending methodology. However, this domination has witnessed a steady decline over the last five years with focus shifting towards the individual lending methodology. Thus, during the period under review individual lending surpassed group lending and recorded an increase of 9% thereby capturing 51% market share of active borrowers as shown in Exhibit 2.13. This shift in lending methodology is primarily driven by KBL, MMFB, and TMFB.
Gender Distribution
The microfinance sector has always remained women centric resulting in a majority of women borrowers. However, over recent years this trend is reversing with the industry’s focus moving towards male borrowers. The percentage of women borrowers was 58% in 2014 which fell to
55% in 2015, and in 2016, with a marginal decline of 1%, it stood at 54%. The proportion of women borrowers for MFIs posted a marginal decline of 2%, whereas, MFBs and RSPs registered a growth of 1% and 3%, respectively. Among the peer groups, the MFBs client base is skewed towards male borrowers, while MFIs and RSPs are more focused on female borrowers (Exhibit 2.14).
Portfolio Distribution by Sector
Overall, the trading sector attracted the major portion of active borrowers though its share witnessed a marginal decline of 1% during 2016 as shown in Exhibit 2.15. Trading was followed by the agriculture and livestock sectors which posted market shares of 18% and 22% respectively. Agriculture’s share declined by 2% during the year, while the share of livestock increased by 3% in the same period. Meanwhile, the market share of services and the manufacturing sector remained in the single digits with slight deterioration in the current year.
Exhibit 2.14: Gender Distribution of Credit Outreach by Peer Group
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Male BorrowersFemale Borrowers
MFB MFI RSP Total
75%
25%
27%
73%
22%
78%
46%
54%
Exhibit 2.15: Active Borrowers by Sector
AgricultureLivestock/Poultry
TradeServicesManufacturing/ProductionHousingOther
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016
22%
16%
35%
9%
9%0%9%
22%
16%
30%
8%
9%0%15%
23%
16%
29%
8%
9%0%15%
20%
19%
25%
10%
8%0%
18%
18%
22%
24%
9%6%1%
21%
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Rural-Urban Lending
The orientation of the sector has always remained towards rural borrowers. During the period under review, the concentration of
rural borrowers remained stagnant at 54%, while urban clients constituted 46% of the sector (Exhibit 2.16). Moreover, the majority of borrowers of two main players – NRSP and KBL – remained concentrated in the rural segment of the population.
Conventional and Islamic Lending
The microfinance sector is divided into conventional and Islamic modes of lending. Presently, the industry is tilted towards
conventional lending with 85% of total active borrowers utilizing conventional loans, whereas, 15% of the borrowers are making use of the Islamic mode of financing. Among the peer groups, in terms of conventional lending, MFBs have a share of 50%, followed by MFIs and RSPs with 26% and 24% shares respectively. The Islamic lending is primarily led by MFIs having a market share of 99%, while MFBs constitute the remaining 1% (Exhibit 2.17).
Exhibit 2.16: Active Borrowers by Urban / Rural Areas
UrbanRural
2012 2013 2014 2015 2016
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
44%
56%
42%
58%
43%
57%
46%
54%
46%
54%
Exhibit 2.17: Active Borrowers by Conventional and Islamic Lending
MFI 99%
MFB 50%
MFB 1%
RSP 24%
MFI 26%
Conventional
Islamic
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Unsecured-Secured Lending
The industry is overall supported by unsecured financing which constitutes 88% of total active borrowers, whereas, the remaining 12% is secured lending. In terms of unsecured lending, MFBs and MFIs contain the major portion having
a market share of 43% and 40% respectively, while RSPs contribute 17% as shown in Exhibit 2.18. MFIs with a share of 43% are on top in terms of secured lending, which is followed by MFBs (41%) and RSPs (16%).
Exhibit 2.18: Active Borrowers by Unsecured / Secured Lending
MFB 41%
MFB 43%
RSP 43%
RSP 17%
MFI 16%
MFI 40%
Unsecured
Secured
Financial StructureAsset BaseThe total asset base of the industry registered a remarkable growth of 55% in 2016 and stood at PKR 225 billion as compared to PKR 145 billion in 2015. MFBs accounted for 75% of the total asset base, while MFIs and RSPs constituted 16% and 9% respectively. The asset base of MFB’s increased substantially from PKR 97 billion in 2015 to PKR 168 billion in 2016 thereby posting a growth of 73% (see Exhibit 2.19). Meanwhile, the MFI’s asset base recording a growth of 22% stood at PKR 36 billion, whereas, RSP’s assets increased by 16% and stood at PKR 22 billion.
The major contribution to the total asset base of the industry comes from the top 10 larger players which account for 86% of the sector’s asset base. Akhuwat and NRSP are the only non-bank players among the 10 largest MFPs, while all others belong to the MFB peer group. Among the players, TMFB has the largest asset base of PKR 36 billion followed by KBL (PKR 34 billion) and NRSP Bank (PKR 26 billion) as shown in Exhibit 2.20. Among MFIs, Akhuwat remained on top with assets of PKR 10 billion, while KF reporting an asset base of PKR 7 billion stood at second place. The RSP peer group is dominated by NRSP which has an asset base of PKR 15 billion.
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Asset CompositionThe sector’s asset utilization ratio (gross loan portfolio-to-total assets) has remained range bound over the years. However, during 2016 it witnessed a marginal decline from 62.2% to 58.6% as seen in Exhibit 2.21 largely as a result of the decline in utilization ratio of MFBs which stood at 53% as compared to 56.9% in 2015. The MFIs and RSPs asset utilization ratios noted improvement and stood at 75.7% and 73.9% respectively. The decline in the MFB’s utilization ratio is mainly due to a shift in their asset composition. Investments increased from 14% in 2015 to 19% in 2016 as a percentage of total assets, while composition of cash and cash equivalents increased to 19% (from 15% in 2015). Despite an improvement in the overall gross loan portfolio, the share of advances in total assets reduced, which is evident from the utilization ratio.
In comparison to global players, the asset
utilization in Pakistan is low as shown in Exhibit 2.22. This provides room for further growth which could be done through the use of extended grace periods and financing instruments with bullet repayments.
Funding ProfileOver the last five years, the capital structure of the industry has shown a consistent shift towards deposits as the main source of funding. Meanwhile, reliance on debt and equity has consistently declined. Deposits now constitute 56% of the total funding of the sector up from 45% in 2015. Debt financing witnessed a decline of 8% and stood at 26% in 2016. Despite an increase in profitability in the sector, the share of equity also reduced from 22% in 2015 to 17% in 2016 (Exhibit 2.23). To sustain further growth, practitioners may be forced to capitalize themselves either through equity injections or issuing subordinated debt.
Exhibit 2.19: Total Asset Base by Peer Group
MFBMFI
2012 2013 2014 2015 2016
20
40
60
80
100
120
140
160
180
RSP
PK
R in
Bill
ions
Exhibit 2.20: Asset Base of Larger MFPs
KBL
TMFB
NRSP Bank
FMFB
FINCA
NRSP
MMFB
AMFB
Ubank
Akhuwat
2015 2016
10 20 30 40
PKR in Billions
710
211
114
514
1315
816
1217
142627
3421
36
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Exhibit 2.21: Asset Utilization Ratio
2012 2013 2014 2015 2016
Asset Utilization Ratio
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Exhibit 2.22: Regional Comparison of Asset Utilization
Africa
East A
sia an
d
the P
acific
Easter
n Eur
ope
and C
entra
l Asia
Latin
Am
erica
and
The C
aribb
ean
Middle
East a
nd
North
Afric
aSou
th A
sia
Pakist
an
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Exhibit 2.23: Capital Structure of the Industry
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
DepositsDebtEquity
2012 2013 2014 2015 2016
37%
44%
20% 22%
35%
43%
23%
33%
44%
22%
33%
45%
17%
26%
56%
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The capital structure among the peer groups differs substantially. Non-bank MFPs completely rely on debt and equity to fulfill their funding needs since they cannot mobilize deposits, whereas, the MFBs ability to take deposits keeps their capital structure skewed towards the deposits as the primary source of financing. During the period under review, 76% of MFBs funding needs were met through deposits which increased from 67%
in 2015. Meanwhile, equity and debt financing witnessed a decline and recorded 15% and 9% share, respectively as shown in Exhibit 2.24. In the case of MFIs and RSPs, debt continued to be the primary source of funding accounting for 77% and 70% of the capital structure, respectively. However, RSPs equity funding showed a marginal increase of 1% during the current year and stood at 30%.
Exhibit 2.24: Capital Structure by Peer Group
2015
MFBs
2016 2015 2016 20162015
10%
20%
30%
40%
50%
60%
70%
80%
90%
EquityDebtDeposits
MFIs RSPs
Profitability and SustainabilityThe total revenue of the industry stood at PKR 41.8 billion, while net income was PKR 6.9 billion in 2016 which had increased from 5.1 billion in 2015. The unadjusted ROA and ROE for the industry stood at 3.9% and 21.4%, respectively. MFBs remained the major contributors (45.8%) to the total profitability, while MFIs and RSPs accounted for 35.6% and 18.6%.
The industry continued to be sustainable with Operational Self Sufficiency (OSS) and Financial Self Sufficiency (FSS) well above 100 percent, consistently showing an increasing trend as depicted in Exhibit 2.25. During the period under review, OSS and FSS recorded 127% and 124%, respectively. Out of the 35 reporting organizations 32 have OSS above 100 percent thereby reflecting the strong sustainability of the industry players.
The total revenue ratio of the industry declined from 26% in 2015 to 23% in 2016 shown in Exhibit 2.26. This is mainly attributed to a decrease in yield on gross loan portfolio which reduced from 34.6% in 2015 to 33.0% in 2016 coupled with an increase in the asset base.
A comparison with global players reveals that Pakistan’s yield on gross loan portfolio is highest in all regions (see Exhibit 2.27). The higher yield is a factor of high operating costs which is on account of smaller loan sizes. Nevertheless, with every passing year, a decline in yield points to the fact that the increase in loan sizes after targeting enterprise lending is bringing operational costs down.
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Exhibit 2.25: OSS and FSS Trend
Operational Self Sufficiency (OSS)Financial Self Sufficiency (FSS)
100.00%
105.00%
110.00%
115.00%
120.00%
125.00%
130.00%
2012 2013 2014 2015 2016
Exhibit 2.26: Total Revenue Ratio & Yield on Portfolio
Total revenue ratioYield on gross portfolio (Nominal)
Yield on gross portfolio (Real)
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2012 2013 2014 2015 2016
Exhibit 2.27: Regional Comparison of Nominal Yield
Africa
East A
sia an
d
the P
acific
Easter
n Eur
ope
and C
entra
l Asia
Latin
Am
erica
and
The C
aribb
ean
Middle
East a
nd
North
Afric
aSou
th A
sia
Pakist
an
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Yield on gross portfolio (Normal)
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The total revenue of the industry registered a growth of 27% and stood at PKR 41.8 billion in 2016 from PKR 32.9 billion in 2015. The major portion of the revenue comes from earnings from loan portfolio (87%), whereas investments in financial assets contributed 7% and the contribution of financial services was 6%. The share of financial assets and financial services reduced in comparison to the corresponding
period of last year (see Exhibit 2.28). During the period under consideration, income from branchless banking stood at PKR 4.97 billion as compared to PKR 3.9 billion in 2015 on the back of a substantial increase in MMFB’s income.
The expense to asset ratio of the industry has been declining for the last three years. During the period under review, the ratio fell to 18.9% from
21.5% in the same period last year (see Exhibit 2.29). This decrease is primarily on the back of industry attempts to curtail operating expenses coupled with the reduction in financial expense made possible by the lower interest rate scenario.
The operating expense to GLP ratio continued its downward trend for the third consecutive year. The ratio declined from 20.7% in 2015 to
18.6% in 2016 as shown in Exhibit 2.30. The decline is supported by a reduction in personnel and administrative expense. The industry’s shift towards larger loan sizes, in turn, catering to the financing requirements of microenterprises, has led to this downward trend. In future years, this trend is expected to continue since market players are aggressively focusing on microenterprise lending.
Exhibit 2.28: Revenue Streams
2012 2013 2014 2015 2016
Loan PortfolioFinancial AssetsFinancial Services
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
PK
R in
Bill
ions
Exhibit 2.29: Expense Ratio Trends
Adjusted financial expense/ total assetsAdjusted operating expense/ total assets
Adjusted loan loss provision expense/ total assetsAdjusted total expense / total assets
2012 2013 2014 2015 2016
5.0%
10.0%
15.0%
20.0%
25.0%
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The unadjusted operating expense of Pakistan is close to the average of global players (see Exhibit 2.31). However, in comparison to regional players operating expense is quite high. This shows that
Pakistan has yet to achieve economies of scale in terms of loan size; though year-on-year expense has reduced which shows that the industry has started moving in this direction.
Exhibit 2.30: Operating Expense to GLP Trend
Personnel expense/ Gross loan portfolioOperating expense / Gross loan portfolio
Admin expense/ Gross loan portfolio
2012 2013 2014 2015 2016
5.0%
10.0%
15.0%
20.0%
25.0%
Exhibit 2.31: Regional Comparison of Operating Expense/Assets
Africa
East A
sia an
d
the P
acific
Easter
n Eur
ope
and C
entra
l Asia
Latin
Am
erica
and
The C
aribb
ean
Middle
East a
nd
North
Afric
aSou
th A
sia
Pakist
an
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Operating Expense / Assets
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ProductivityThe personnel allocation ratio for the industry saw a substantial increase in 2016. The ratio improved from 39.2% in 2015 to 52.5% in the current year (Exhibit 2.32). This surge is primarily on the back of significant improvement in ratios of KBL, MMFB, UBank, and NRSP, which depicts that the industry is gearing up for further growth. The ratio varies among the peer group, with
RSPs leading the industry with a ratio of 77.2%, followed by MFIs having 52.5%, while MFBs having the lowest share recorded at 44.0%.
During the period under review, productivity indicators followed a mixed trend as shown in Exhibit 2.33. Loans per staff remained stagnant at 144, while loans per loan officers witnessed a
substantial dip and stood at 276. Depositors per staff which showed a hefty increase recorded at 542. The decline in loans per loan officer points to the fact that individual lending is on the rise. Meanwhile, the increase in depositors per staff is a factor of the significant increase in m-Wallet accounts.
Comparison with regional players shows that Pakistan’s depositors per staff is the highest globally (see Exhibit 2.34), which is mainly a factor of significant surge in branchless banking operations. At the same time, loans per staff and loans per loan officer is below the average of global players.
Exhibit 2.32: Personnel Allocation Ratio Trend
2012 2013 2014 2015 2016
Personnel allocation ratio
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Exhibit 2.33: Productivity of MFPs
Depositors per staffLoans per Loan Officer
Loans per staff
2012 2013 2014 2015 2016
100
200
300
400
500
600
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RiskCredit RiskDuring 2016, PAR > 30 days slightly declined to 1.2% from 1.5% in 2015 (Exhibit 2.35). Meanwhile, write-offs also remained low and reduced to 1.0% from 1.2% a year earlier. This reduction in PAR is supported by the MFB peer group whose PAR >
30 days reduced to 0.8% from 1.3% in 2015. Over the recent years, the industry’s PAR > 30 days has remained below 2%, which is well under the 5% cutoff point. This reflects positively on the quality of the industry’s portfolio. Despite the lower PAR value, the industry’s risk coverage ratio remained high and stood at 179.8%.
Exhibit 2.34: Regional Comparison of Productivity
100
200
300
400
500
600
Loans per StaffLoans per Loan Officers Depositors per Staff
Africa
East A
sia an
d
the P
acific
Easter
n Eur
ope
and C
entra
l Asia
Latin
Am
erica
and
The C
aribb
ean
Middle
East a
nd
North
Afric
aSou
th A
sia
Pakist
an
Exhibit 2.35: PAR > 30 days & Write-off Trend
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2012 2013 2014 2015 2016
2.3%
3.7%
2.5%
1.5%
1.1%
2.3%
1.5%
1.2%
1.2%
1.0%
Portfolio at Risk >30 daysWrite OffCut off
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ConclusionThe year 2016 was significant for the industry. The sector witnessed double-digit growth in all the key indicators including credit, deposits, and insurance. Growth in savings remained phenomenal during the year on the back of a surge in mobile banking operations. Meanwhile, credit outreach crossed PKR 100 billion which is an important milestone for the industry. Among the peer groups, MFBs continued to dominate the sector in terms of GLP with a market share of 68%. Overall, credit operations remained women-focused with rural areas as the primary target market and the agriculture and livestock sectors captured the majority share of available financing.
The year also remained profitable with improvement in sustainability. MFBs continued to lead the sector’s profitability in turn providing room for further growth. The operating expense
to GLP ratio witnessed a deterioration primarily due to the industry’s shift in focus to larger loan sizes thereby catering to the requirements of microenterprises.
The industry’s asset base remained strong and stood at over PKR 200 billion with MFBs comprising 75% of the total assets. MFBs continued to rely on deposits as their main source of funding, whereas, MFIs and RSPs had to rely on debt as their primary source of financing. The sector’s portfolio quality remained strong with PAR > 30 days declining to 1.2% from 1.5% in 2015, while risk coverage remained high.
The sector’s performance in the current year positioned it well for further growth. If this trend continues the industry could play a crucial role in financial inclusion.
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Annual Assessment of the Microfinance Industry
Section 3SOCIAL PERFORMANCE REVIEW
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Social Performance Review
Microfinance in Pakistan is essentially a double-bottom line industry – financial sustainability is not the end in itself, rather it is the means to achieving social goals. These goals differ across the sector; some MFPs may have a vision of poverty alleviation, others of women empowerment, while still others may be working for increasing access to formal financial services. To better ascertain an institution’s intended goals, microfinance stakeholders around the world now believe that unless an MFP’s systems, activities and outputs are deliberately geared towards its social vision, it is difficult to make the impact that the institution is aiming for. For an MFP, therefore, performance management means focusing simultaneously on its financial
and social bottom-lines. In all cases, it has become important for MFPs to track their progress towards achieving their respective social goals, using social performance indicators in the same way that financial data is used to manage the financial bottom-line.
The following section will outline key social performance indicators as monitored across the Pakistan microfinance landscape. We will attempt to analyze industry trends across various SP indicators, including social goals, poverty target, governance and HR, diversity in financial and non-financial service provision, client protection, pricing norms and environment.
20 These include KBL, FINCA, TMBL, UBANK, NRSP Bank, FMFB, MMFB, POMFB, APMBL, JWS, DSP, MICROOPTIONS, SAATH, SRDO, SWWS, VDO, ASA, SVDP, BRAC, OLP, OCT, AKHUWAT, CEIP, MOJAZ, AGAHE, BEDF, SSF, RCDP, KF, FFO, SRSO, NRSP, GBTI, PRSP and TMF.
Analysis of the Sector’s SP IndicatorsThe Microfinance Information eXchange (MIX), in collaboration with the Social Performance Task Force (SPTF), has developed an annual social performance reporting framework for MFPs. This framework has recently been formatted to better suit the reporting needs of the industry, and includes a new comprehensive set of indicators on institutions’ social goals, target segments and other services. As self-reported data, the MIX framework allows MFPs to select multiple
categories that are applicable to their respective institution. For example, within the ‘target population sub-section, an MFP may report to targeting all or none of the ‘women’, ‘clients living in the urban area’, ‘youth and adolescents’ and ‘clients living in the rural areas’ categories if those are applicable to their practices.
At the time of this publication, 35 PMN member MFPs20 reported on the new MIX Social
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Performance framework, including 9 MFBs (out of 10 MFB members), 21 MFIs (out of 36 MFI members) and 5 RSPs (out of 6 RSP members).
Target MarketDefining a target population that an MFP aims to reach helps to focus their efforts and optimize the limited resources available. Providing services that are relevant, client oriented and effective in serving an organization’s mission requires a thorough identification of the target market. MFP target markets by peer group are
highlighted in Exhibit 3.2.1. All 9 reporting MFBs, cited multiple targets, including women, clients living in rural areas and clients living in urban areas, while none of the MFBs is currently catering to the youth and adolescent segment of society. Of the 21 reporting MFIs, the majority (19) target women and clients in rural areas. Clients in urban areas make the second largest target group with 17 MFIs catering to them, while 3 MFIs and 1 RSP also reported targeting the youth.
Overall, clients are targeted based on gender and location. While the focus on rural areas
is relatively greater, urban clients are not far behind, particularly among MFPs providing individual loans.
Development GoalsAll reporting MFPs were found to have some social development goals built into their mission, which rarely change on an annual basis. An analysis of the statements yield commonality among the peer groups, for example, the microfinance banks are more focused on financial inclusion, with their mission being expanding
access to quality financial service to low income population, employment generation and growth of existing businesses and as a result improve their quality of life, economically and socially. Non-bank MFIs have holistic developmental goals, thus, poverty alleviation, empowerment of the ‘marginalized’ and expanding economic opportunities emerged as more common amongst the non-bank MFPs. The majority of MFPs now are also making concentrated efforts for achieving gender equality, contributing towards women empowerment.
Reporting to MIX SP Framework 2016 Total PMN Membership
MFB 09 10
MFI 21 36
RSP 05 06
Total 35 52
Table 1: Number of Reporting MFPs for Social Performance
Exhibit 3.2.1: MFPs’ Target Markets
MFBsMFIsRSPs
Women Clients living inrural areas
Clients living inurban areas
Adolescents andyouth
5
10
15
20
25
30
35
9
19
4
8
19
5
9
3
17
4
No.
of R
espo
nses
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The most common objectives were found out to be increased access to financial services, poverty reduction and growth of existing businesses, with 32, 34 and 31 reporting MFPs respectively citing these as their objectives. The other most commonly cited development goals across all peer groups are employment generation, and gender equality and women’s empowerment. Support to start-up businesses, which is generally considered a risky initiative for microfinance, has also seen growing interest among some MFPs (Exhibit 3.2.2).
Poverty Targeting In terms of poverty levels of targeted clients, almost all of the reporting institutions target more than one segment of the poor. Overall, the most common target market for the sector
in terms of income is low income clients, closely followed by poor clients. Only 5 reporting MFIs and 2 RSPs reported targeting very poor clients. MFIs and RSPs are largely targeting both poor and low income clients, while the MFBs tend to cater more to low income clients.
Poverty Measurement ToolsMany MFPs in Pakistan collect economic, social, and/or other types of wellbeing indicators from clients for the express purpose of determining clients’ poverty levels and tracking their progress. Assessing the poverty level of clients serves multiple purposes like guide client targeting and selection for MFPs, establish baselines of client poverty for subsequent impact evaluations,
Exhibit 3.2.2: Development Goals
Increa
sed a
cces
s
to fin
ancia
l serv
ices
Povert
y red
uctio
n
Emplo
ymen
t gen
eratio
n
Develo
pmen
t of
start-
up en
terpri
ses
Growth
of ex
isting
busin
esse
s
Yout
h opp
ortun
ities
Health
impro
vem
ent
Gende
r equ
ality
and
women
's em
powerm
ent
Wate
r and
sanit
ation
5
10
15
20
25
30
35
40
MFBsMFIsRSPs
9 9
20
5
6
18
2
5
8
3
9
19
3
242
232
5
17
3
122
18
5
Exhibit 3.2.3: Poverty Targets
MFBsMFIsRSPs
Very poor clients Poor clients Low income clients
5
10
15
20
25
30
35
5 5
17
4
8
19
4
2
No.
of M
FP re
spon
ses
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ion
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appraisal of financial services to better suit needs of clients and overall measurement of the programme’s effectiveness.
While 20 reporting MFIs cited using one or more poverty scoring methods, only 5 MFBs reported doing so. Some MFPs employed only one method to measure poverty levels, others used multiple assessment tools, as shown in Exhibit 3.2.4. MFPs reported use of their own proxy poverty index, as well as the Grameen Progress out of Poverty Index (PPI) and per capita household income and expenditure. While the MIX SP Framework does not cover the poverty scorecard prescribed by the Pakistan Poverty Alleviation Fund (PPAF) designed by The World Bank, this is predominantly used by MFIs as partner organizations of PPAF.
Governance and Human ResourceAn MFP cannot be considered socially responsible unless they have robust processes in place ensuring both an involved and informed governance body and the well-being of its employees. Keeping that in mind, the Universal Standards of Social Performance Management (USSPM) highlights standards relating to Governance and Human Resource (HR) management and how to design policies so as to further the social goals of MFPs. The rationale behind inculcating social performance indicators in governance and HR structures is to allow MFPs to gauge commitment to their social development
goals at the institutional level.
Sensitivity to social performance in governance structures entails Board members receiving orientation on the social mission of the MFP, the presence of a SP champion or committee at the Board level, and Board level experience in SPM. During orientation, Board members are provided with an explanation of (or training on) the institution’s social mission and goals. Social performance champions are members of the Board of Directors that are assigned to oversee integration of social performance management practices within an institution while SP committees are formal entities within the Board that meet on a regular basis to discuss topics related to institutional SP. SP-related work experience should be understood broadly as referring to any experience or training related to managing social performance at MFPs.
Exhibit 3.2.5 shows 7 out of 9 reporting MFBs responded positively to Board members receiving SP orientation on a routine basis and one or more Board members having experience in SP management, while 3 of the 9 MFBs have a SP champion or committee at the Board level.
Majority of reporting MFIs show strong performance on Board orientation of social mission and experience in SPM (17 out of 21 and 19 out of 21 reporting MFIs respectively).
A thorough assessment of staff incentives at MFPs is crucial to avoid encouraging any negative behavior that may in turn harm social goals of the organization. Additionally, analysis of staff
Exhibit 3.2.4: Poverty Assessment Tools used by MFPs
Gram
een P
rogre
ss ou
t
of Pov
erty I
ndex
(PPI)
Per
capit
a hou
seho
ld
expe
nditu
re
Per
capit
a hou
seho
ld
incom
e
Par
ticipa
tory w
ealth
rankin
g
Hou
sing i
ndex
Food
secu
rity i
ndex
Own p
roxy
pove
rty
index
Non
e of t
he ab
ove
MFBsMFIsRSPs
2
4
6
8
10
12
12
4
1
2
6
1
2 21
4
6
1
3
5
2
4
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working conditions is important to ensure that they are not being burdened beyond capacity. Some of the indicators gauged here are number of clients entertained by the field staff, the quality of interaction with clients based on client feedback mechanisms, quality of social data collected and/or the portfolio quality maintained by field staff. Exhibit 3.2.6 shows that across the Pakistan microfinance industry, portfolio quality is the most cited factor for staff incentives, both for MFBs and non-Bank MFIs. This means that MFPs have incentives and/or bonus systems designed to reward staff based (in whole or in part) on whether staff members consistently collect loan payments on time. The second most prevalent factor is number of clients, which means MFPs have incentives and/or bonus systems designed to reward staff based (in whole or in part) on the number of clients in field offices’ portfolios. These can be based on total number of clients, number of clients meeting specific criteria (e.g. new
clients, returning clients, etc.), or both. Exhibit 3.2.7 shows that all MFPs use a combination of these measures for calculating staff incentives, with the most common being total number of clients, followed by number of new clients.
The USSPM necessitates an MFP to treat its employees responsibly. Building upon that Human Resource policies related to SP include the presence of social protection (medical insurance and/or pension contribution), a safety policy (protecting staff members from external harm while in the field), an anti-harassment policy, a non-discrimination policy (explicit policy against discrimination based on sex or ethnicity in matters of hiring, firing, and payment of staff members) and a grievance resolution policy (a formal channel or channels for communicating and redressing problems staff may have on the job). Exhibit 3.2.8 shows that all reporting MFPs have strong reporting on having a social
Exhibit 3.2.5: Social Performance Management at the Board
Boardexperience
in SPM
SPM champion/committee at
Board
Boardorientation of
social mission
MFBsMFIsRSPs
5 10 15 20
5
17
7
2
14
4
7
19
3
Exhibit 3.2.6: Staff Incentives related to SPM
Number of clients Quality of interaction with clients based on
client feedback mechanism
Quality of socialdata collected
Portfolio quality
5
10
15
20
25
30
35
Num
ber o
f MFP
s
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protection, an anti-harassment policy in place, a grievance resolution policy for staff, and a non-discrimination policy. However, there appears a gap in policies pertaining to safety of the staff members while out in the field with only 15 out of 32 reporting MFPs having any safety mechanism in place.
Products and Services: FinancialMicrofinance refers to a range of financial services for the low income and poor households including savings, insurance and money transfer services
along with credit. This sub-section summarizes the range of financial products offered by MFPs in Pakistan, based on the assumption that microfinance clients are a heterogeneous group with varying financial needs.
CreditAll reporting organizations offer microcredit services, for income generating purposes as well as for non-income generating purposes. According to Exhibit 3.2.9.1a, while all reporting MFPs offer income generating loans, a few also offer non-income generating or consumption based loans.
Exhibit 3.2.7: Method for incentivizing number of clients
Incentive on'total number of clients'
Incentive on number of new clients'
Incentive on'client retention'
5
10
15
20
25
96
10
3
4
9
27
4
MFBsMFIsRSPs
No.
of R
epor
ting
MFP
s
Exhibit 3.2.8: HR policies related to SP
Soc
ial pr
otecti
on (m
edica
l
insura
nce a
nd/o
r
pens
ion co
ntribu
tion)
Safe
ty po
licy
Ant
i-hara
ssm
ent
polic
y
Non
-disc
rimina
tion
polic
y
Grie
vanc
e res
olutio
n
polic
y
MFBsMFIsRSPs
5
10
15
20
25
30
35
No.
of R
espo
ndin
g M
FPs
9
18
4
5
12
2
8
20
4
8
18
4
8
14
4
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In addition, increasing competition and maturing markets require MFPs to go beyond ‘cookie cutter’ approaches and differentiate their products to serve different market segments and customer demands. Exhibit 3.2.9.1b shows the range of activities for which income-generating loans are available in Pakistan.
The most common categories were found out to be Loans for Microenterprises, and Agricultural and Livestock Microcredit, with all 35 reporting MFPs offering the former and 30 out of 35 reporting MFPs offering the latter. Other activities for which a growing number of MFPs offer credit
products include SME Loans and Express Loans. This suggests that product differentiation in credit is under way and MFPs are beginning to offer products beyond the typical microenterprise loan, with some MFPs moving up the market to target MSMEs as well as offer timely Express Loans.21
Deposits
Considering the legislative structure around the product, only 37 percent of the reporting MFPs offer savings products (13 out of 35). All MFBs, under SBP regulations, can intermediate
21 While express loans are generally considered short-term loans intended to help clients take advantage of unexpected business opportunities, there is a need to analyze the increasingly popularity of express loans, as well as their use in financing the MSME sector through microfinance.
Exhibit 3.2.9.1a: Type of Credit Products offered by MFPs
Incomegenerating loans23%
Non-incomegenerating loans
5%
Exhibit 3.2.9.1b: Credit Offerings
Microenterpriseloans
SME loans Agriculture/livestockloans
Express loans
MFBsMFIsRSPs
5
10
15
20
25
30
35
40
No.
of M
FP re
spon
ses
9
21
5
9
8
17
5
4
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client deposits, and thus, all reporting MFBs take deposits. Non-bank MFPs can only mobilize deposits. All MFBs offer both demand deposit accounts and time deposit accounts, based on the needs of their clients, though further diversified savings products and access to these savings products would help boost uptake among small savers.
Insurance
Offering micro insurance serves to protect vulnerable clients against risk of losses. A majority of the reporting MFPs offer insurance products to meet clients’ needs. The insurance indicator looks both at compulsory insurance, which is typically clubbed with credit products,
and voluntary insurance offered to clients as a stand-alone product. A majority of reporting MFPs offer insurance products to meet clients’ needs and to protect them against risk of losses. Out of the reporting MFPs offering compulsory insurance products, the majority offer credit life insurance only, with a few MFPs offering other types of insurance such as life/accident and agriculture (see Exhibit 3.2.9.3a).
Over the past few years, some MFIs have introduced voluntary insurance products through partnerships with insurance providers, offering life/accident, agriculture/livestock and health insurance products. The most common category remains health insurance with 9 reporting MFPs offering various health insurance
Exhibit 3.2.9.2: Savings Products Offered
Savingsaccounts37%
Does not offersavings accounts
63%
Exhibit 3.2.9.3a: Compulsory and Voluntary Insurance Provision by Peer Groups
Credit life insurance Life/accidentinsurance
Agricultureinsurance
MFBsMFIsRSPs
5
10
15
20
25
30
No.
of R
espo
nses
8
3
4
2
5
2
14
2
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packages (see Exhibit 3.2.9.3b). Selected partner organizations of PPAF have piloted agriculture/crop and livestock insurance products for their clients with explicit monitoring indices to insure clients’ losses of crops or livestock in the event of external risks.
Generally, there is need to expand insurance services to cover the wider set of risks that vulnerable clients face. Additionally, there is also a need to create greater awareness around the benefits of existing insurance products that are available for clients.
Other Financial Services
The provision of financial services other than traditional credit, savings and insurance remains marginally low, with primary suppliers being
MFBs. However, some MFIs are now offering clients the facility to repay loan installments through branchless banking agents. MFBs tend to dominate other financial services provided by MFPs, offering one or more other financial services amongst the following categories: debit/credit card, mobile banking services, savings facilitation, remittances services/money transfer services, payment services and scholarship/educational grants (as shown in Exhibit 3.2.10).
Products and Services: Non-FinancialMFPs offer non-financial services in addition to financial products and services to strengthen livelihoods of vulnerable clients; these are frequently supplied in partnership with
Exhibit 3.2.9.3b: Types of Voluntary Insurance by Peer Groups
Credit Life Insurance Life/accidentinsurance
Agriculture insurance Health insurance
MFBsMFIsRSPs
1
2
3
4
5
6
7
8
9
10
No.
of r
espo
ndin
g M
FPs
5
1
4
1
2
1
4
1
4
Exhibit 3.2.10: Provision of other financial services
Deb
it/cre
dit ca
rd
Mob
ile/b
ranch
less
bank
ing se
rvice
s
Sav
ings f
acilit
ation
servi
ces
Rem
ittanc
e/m
oney
trans
fer se
rvice
s
Pay
men
t serv
ices
MFBsMFIsRSPs
2
4
6
8
10
12
No.
of M
FP R
espo
nses
7
5 5
1
7
5
5
1
Sect
ion
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specialized public or private agencies and vary according to the capacity and vision of the institution, but the purpose is to develop client skills and/or provide basic services that they are unable to attain due to financial limitations. These can take the form of provision of basic services like health and education or business and/or technical skills training. For this analysis, such services are grouped into four main categories: enterprise, education, health and women’s empowerment.
Unlike the MFBs which have a lead in provision of other financial services, in this domain, MFIs and RSPs are actively providing all types of non-financial services in the market, especially those committed to a particular social mission (see Exhibit 3.2.11). While MFIs and RSPs are offering at least one (in some cases multiple) non-financial service, only one MFB is offering education services to its clients. Education services like financial literacy education, child and youth education and basic health/nutrition education are the most popular non-financial service being offered by MFPs. Followed by enterprise services, such as enterprise skills development and business development services and women’s empowerment including women’s rights education/gender issues training and leadership training. A handful of MFPs also offer health services like basic medical and special medical services for women and children.
Transparency of CostGlobally the case of adopting the declining balance method to calculate and display interest rates to clients is widely accepted as the ‘transparent’ way. While Pakistani MFPs accept the importance of employing the declining
balance method of calculation and disclose interest rates, most of the MFPs in Pakistan are still using the flat methodology, primarily due to the simplicity in calculation and marketing. As per State Bank of Pakistan’s regulations, however, MFBs are bound to disclose interest cost using the declining balance method to clients – which means interest is communicated on the amount of the loan principal which the borrower has not yet repaid. There is some resistance by MFPs generally in switching from flat to declining balance interest rate disclosures, fearing loss of clientele owing to a lack of level playing field in the absence of regulations mandating all peer groups to follow a similar methodology.
Many MFPs in Pakistan continue to use the flat methodology to communicate prices to clients – where interest rate is communicated on the basis of the stated initial principal amount of the loan irrespective of the payment plan. Around 54 percent of reporting MFPs are using the flat interest rate method while 46 percent use the declining balance method (as shown in Exhibit 3.2.12).
Client ProtectionClient Protection (CP) principles refer to the minimum ‘do no harm’ standards that clients should expect to receive when doing business with a microfinance institution. These principles help protect clients and help institutions practice good ethics and smart business – which is good for the industry overall.
There are seven all-encompassing principles of client protection developed by The SMART Campaign, an international consortium of microfinance stakeholders, which coordinates
Exhibit 3.2.11: Non-Financial Services
Enterprise services Womensempowerment
Education services Health services
MFBsMFIsRSPs
5
10
15
20
25
No.
of M
FP R
espo
nses
14 13
4
12
4
17
3
4
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with the work of MFTransparency in the area of pricing transparency.22 The seven CP principles include:
• Appropriate product design and delivery• Prevention of over-indebtedness• Transparency• Responsible pricing• Fair and respectful treatment of clients• Privacy of client data• Mechanisms for complaint resolution
For self-reporting on social performance indicators, MFPs provided information regarding
the presence of various institutional-level client protection indicators, including policies supporting good repayment capacity analysis, internal audit compliance, full pricing terms disclosure, APR disclosure, CP code of conduct, sanctions for code of conduct violations, clear reporting systems and data privacy clauses.
Overall, the sector shows positive compliance to CP principles, particularly with all reporting MFPs having in place strong repayment capacity analysis, internal audit systems, full pricing terms disclosure, and defined code of conduct. However, as indicated in the sub-section above,
Exhibit 3.2.12a: How Service Cost is communicated
Declining balance46%
Flat interest54%
Exhibit 3.2.12b: Methods of Stating Service Cost by Peer Group
Declining balance Flat interest
MFBsMFIsRSPs
2
4
6
8
10
12
14
16
18
20
No.
of M
FPs
63
14
2
7
3
22 See the Smart Campaign website for more details on the seven CP principles and how these are promoted and monitored through Smart Assessment tools: http://www.smartcampaign.org/Se
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not all pricing is disclosed in Annual Percentage Rate (APR) format, particularly by the non-Bank MFIs. Due to the regulatory framework under which MFBs fall, all reporting Banks show full compliance to the basic CP indicators. Now with the MFIs coming under the regulatory framework of SECP, any gaps in their compliance are likely to be plugged in near future.
Environmental PoliciesIn recent years, the microfinance sector has seen the momentum being built for achieving the triple bottom-line i.e. inculcating environmental management in mainstream operations in addition to financial and social management. To gauge the current state of MFPs in Pakistan in the green domain, these indicators provide information about the environmental policies/products that they may have in place. These environmental policies refer to MFPs promoting awareness on environmental impacts, having tools to evaluate environmental risks of clients’ activities and including clauses in loan contracts to ensure mitigation of environmental risks through the clients’ businesses (see Exhibit 3.2.14a).
In addition to this, a few MFPs reported on various types of environmentally friendly products and/or practices that they are currently
piloting, including products related to renewable energy, for example solar panels, biogas digesters and so on. Some MFPs are also engaged in financing environmentally friendly businesses, for example organic farming, recycling and/or waste management (see Exhibit 3.2.14b).
The strong performance of the MFI peer group in this area reflects the efforts carried out by the PPAF, to ensure compliance of all its partner organizations to the Environment and Social Management (ESM) Framework. As PPAF-funded institutions, these MFIs are trained on the ESM Framework and required to provide quarterly progress update on ESM compliance. External environmental and/or social performance audits are commissioned by PPAF to monitor and physically verify PO compliance of the ESMF. Finally, MFIs are encouraged to incorporate ESM objectives into the Terms of Partnership that they sign with their respective community based institutions.
While reporting is relatively new in this respect, the industry is taking positive steps in moving towards supporting/financing more environmentally sustainable businesses. There is still a need for more comprehensive work in this area, specifically a natural disaster risk mitigation strategy not just to protect MFPs but also clients and their businesses.
Exhibit 3.2.13: Client Protection Indicators
Policie
s sup
port
good
repay
men
t cap
acity
analy
sis
Intern
al au
dit ve
rify co
mpli
ance
with po
licies
Prices
, insta
llmen
ts, te
rms a
nd
cond
itions
fully
disc
losed
to cl
ients
Annua
l perc
entag
e rate
s (APR)
of loa
n pro
ducts
disc
losed
Code o
f con
duct
clear
ly de
fined
Violati
ons o
f cod
e of
cond
uct s
ancti
oned
Clear r
epor
ting s
ystem
in pl
ace f
or
com
plaint
s fro
m cl
ients
at bra
nche
s
Contra
cts in
clude
a
data
priva
cy cl
ause
5
10
15
20
25
30
35
40
No.
of R
epor
ting
MFP
s
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Exhibit 3.2.14a: Environmental Policies in Place
Awarene
ss ra
ising
on
envir
onm
ental
impa
cts
Clause
s in l
oan c
ontra
cts
requir
ing cl
ients
to im
prove
envir
onm
ental
practi
ces/m
itigate
envir
onm
ental
risks
Tools
to ev
aluate
envir
onm
ental
risks
of cl
ients'
activ
ities
Specifi
c loa
ns lin
ked t
o env
ironm
ental
ly
friend
ly pro
ducts
and/
or pr
actic
es
MFBsMFIsRSPs
5
10
15
20
25
30
No.
of R
espo
ndin
g M
FPs
2 4
15
2
4
9
2
2
8
117
5
Exhibit 3.2.14b: Environmentally friendly Products/Services Offered
Products related to renewable energy
(e.g. solar panels, biogas digesters etc)
Products related to energy efficiency
(e.g. insulation, improved cooking stove etc)
Products related to environmentally friendly
practices (e.g. organic farming,
recycling, waste management etc)
MFBsMFIsRSPs
2
4
6
8
10
12
No.
of M
FP re
spon
ses
21
2
8
2
6
2
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Section 4CHALLENGES AND OPPORTUNITIES
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Annual Assessment of the Microfinance Industry
As the microfinance industry in Pakistan continues to grow and expand its footprint across the country, it faces several new challenges and opportunities. Some of these opportunities and challenges are discussed as follow.
Digital Financial ServicesDigital Financial Services provide an opportunity for the microfinance industry to reach out to the unbanked in a convenient and affordable manner. It allows MFPs to reduce their costs by ending reliance on brick and mortar structures, increasing outreach and delivering customer centric products.
With the total cellular customers touching 136 million in the country and cellular mobile tele-density reaching 70 percent by the end of 201623, technology can be leveraged to tap the unbanked. With three out of four MNOs owning MFBs, digital financial services can be the engine of growth for the microfinance industry and financial inclusion. This fact has not been lost on policy makers and DFS are a critical part of reaching the financial inclusion goals outlined in the NFIS.
Some of the key components of DFS which can assist in reaching out to the unbanked are highlighted below.
Digital CreditAccording to CGAP, digital credit as compared to conventional microfinance loans is instant, automated and remote. Digital credit requires limited human contact as the loan provider can assess the credit risk without extensive in-person interviews and leverages the technology infrastructure and any available data from multiple data sources such as social profiles, transactional data, credit information, and mobile data including voice, SMS and internet. It can allow microfinance providers to expand outreach and reduce costs at the same time.
Digital loans follow a ramp-up process starting with smaller denominations and gradually increasing the amount with more data based on usage and repayment behavior. Loans extended under the facility are mostly of small amounts and shorter durations as they are used to meet the short-term liquidity needs of borrowers. Due to high risks associated with this kind of model, exposure is kept minimal in terms of
23 www.pta.gov.pk
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value and duration of such loans. Digital credit can be either considered a standalone product, a bundled offer with products like micro insurance or a customer acquisition tool. Loans can be extended directly to borrowers or through third parties like distributers, merchants or value chain aggregators.
The credit decision can be made in a few seconds and at most within a day as part of digital credit. The decision is automated and relies on a series of decision trees and algorithms. Human interaction is kept at a bare minimum as disbursements and repayments are done through mobile money accounts. Digital credit requires all collection processes to be front loaded with proactive engagement of customer prior to due date, and it is important to understand that smaller size and large volume of these loans makes conventional collection methods irrelevant. Data available with Credit Information Bureaus can play a significant role in strengthening the credit decision.
Digital Credit can have significant financial inclusion implications as many digital credit models are not dependent on prior financial account ownership or credit histories which is why it has witnessed a growing trend especially in low income countries with significant unbanked populations especially in Sub Saharan Africa.
In a country, like Pakistan, where access to finance is a major challenge and only a fraction of population borrows from formal financial channels, digital credit can be useful tool to reach out to the unbanked. With an excellent existing digital infrastructure in place in the form of high tele density, credit information bureaus, national ID system and several branchless banking services working in the country, the market is ripe for a digital credit takeoff. Mobile network operators (MNOs) owned MFBs and growing number of upcoming FinTechs can play a crucial role in this field. Moreover, it would also provide MFPs an opportunity to reduce their operating costs by reducing their customer acquisition costs. There exists room for partnerships and alliances between MNOs, FinTechs and MFPs to promote and extend digital credits.
Digital Support Platform While the DFS providers were introducing products such as OTC, m-Wallets, payments through mobile phones, the microfinance institutions have relied heavily on conventional operating models with limited investment on building technology platforms. Thus, achieving
scalability and expanding to new markets remains due to high operational costs and sometimes inefficient processes.
Due to different operating models, MFPs mix and match partnerships with banks and mobile money providers. These partnerships are formed to meet specific business needs pertaining to loan disbursement, repayments, insurance and other value-added services. At present, MFPs rely mostly on partner banks for managing their loan disbursements either via cheques or cash on counter (COC); transaction costs vary according to the negotiated deals. Provision for these services requires MFPs to directly deal with banks and mobile money providers, which comes with its own set of operational requirements and overheads. Subsequently, MFPs have limited access to agent networks, as it is not feasible to integrate with every service provider due to time and cost constraints.
Keeping this in view, PMN has undertaken a project to create a ‘Digital Services Platform’ (DSP) that will enable MFPs to link with the larger financial services industry by digitalizing their work/process flows as well as digitizing the datasets via a shared hosting platform. As a result, clients will be enabled to perform transactions (repayments, disbursements, payments, etc.) either through mobile accounts or plastic cards.The Platform comprises of four main components: m-Wallets, payment services, agent aggregation, and digital services. DSP shall act as a switch for integration with mobile money players (m-Wallets), POS machine networks, ATM switch (in this case 1-Link), as well as with agent networks. DSP, as a platform, will also provide value-added services to MFPs in the form of digital services (data analytics, customized MIS solutions, General Ledger, et cetera). PMN has laid out a strategic plan for the realization of these objectives that will be done through partnering with relevant FinTech firms and/or payment gateways.
The use of the DSP can help MFPs to not only achieve their growth objectives through increased outreach and agility but also to reduce high administrative expenses. Previously, acquiring technology platforms or digital tools was quite expensive and out of reach for MFPs, however, now these services have become more open and inclusive through provision of shared services.
Synergies between microfinance and DFS
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remain critical for a digital financial eco-system. DFS players can augment their uptake if mobile wallet usage is pushed by MFIs to millions of active borrowers. Both parties can collaborate to introduce savings, insurance and other value-added products to customers through collaborative models. Essentially, the business viability hinges on DFS providers offering low cost of transactions and MFPs providing recurring high volumes of transactions.
Blockchain Blockchain, the technology underlying bitcoins, has unleashed a new wave of innovation and disruption especially in the financial industry. Using its decentralized approach, it allows for greater efficiencies and executes real time transactions in a secure and discreet manner.
Blockchain refers to a type of data structure that enables identifying and tracking transactions digitally and sharing this information across a distributed network of computers, creating in a sense a distributed trust network24. It is a protocol that allows for peer to peer exchange of value. Data can be continually added in the blockchain, however, once entered it cannot be altered. Depending upon accessibility, blockchains can be categorized as private or public. Private block chains have restricted access and require trust as compared to public ones which are open to all.
According to a publication by the Planet N Group on the topic, blockchain allows trust to
be created and maintained in an exchange of value without a central intermediary. Due to the structure of the technology, all users of the blockchain become participants (nodes) in the transaction by maintaining a ledger that records and confirms the transaction every time the blockchain progresses. The more nodes there are in the network confirming the transaction, the more secure the system becomes in maintaining its integrity.
One of the biggest implications for the financial industry due to adoption of blockchain technology will be the cutting out of the middleman. Since financial institutions are viewed as financial intermediaries, however, with blockchain the intermediary role can be eliminated by directly linking borrowers and savers. The payment business provides an interesting example of disruption due to blockchain. At present, payments being sent are routed through an electronic payment network. However, two machines connected to a blockchain can process the payment directly without the need of middleware.
Blockchains have important implications for financial inclusion. They are being used (can be used) to provide digital identity to clients and used for remittances services. Access to databases of “online and retail payments”, utility companies, MNOs and credit information bureaus can allow for better assessing the creditworthiness of clients.
Transition ChallengesWith the amendments in the NBFC rules and regulations in 2015 by SECP, the transition process of MFIs and RSPs into NBMFIs started. The transition was fraught with challenges. Out of the nearly 40 MFIs and RSPs operating in the country, nearly 21 have so far been able to obtain licenses to operate as NBMFIs. However, the key challenge facing most of the entities has been corporate governance and the minimum paid up capital requirement in case of smaller organizations.
Corporate governance has been a key challenge facing nearly all the organizations because of issues like cross directorship and applicability of fit
and proper criteria as prescribed by the regulator for directors. As per corporate governance best practices independence of the board is compromised due to cross directorship, however, due to small pool of board members available to NBMFIs they have to resort to this practice. In addition, as all the NBMFIs are structured as non-profits they cannot remunerate to their board members. In this scenario attracting qualified and competent persons to be directors at NBMFIs is a difficult proposition. The best approach can be to train and develop a pool of directors for NBMFIs – a role to be filled by PMN and PMIC. Until then exemption may be sought from the NBMFIs for cross directorship.
24 www.webopedia.com Sect
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The microfinance industry around the globe and in Pakistan continues to be beset by questions about the high interest rates being charged from their clients. With a poverty focused agenda and a clientele belonging to the lower income segments, the high interest rates being charged by practitioners are thought to add to the debt burden and not in sync with the social agenda of the industry. Moreover, availability of donor funding and grants for the industry have further compounded the issue.
In Pakistan with the prevailing low interest rate environment where the benchmark policy rate has touched a 42-year low at 5.75 percent, policy makers and regulators are raising concerns since there has been no corresponding decrease in the interest rates being charged by MFPs. It must be noted that the loan pricing of MFPs is not dependent upon the funding costs but operating
costs unlike commercial banks. Operating costs are themselves a function of the loan sizes. Since the loan size is smaller for MFPs, their operating costs are higher.
In addition, the low interest rates have allowed the sector to move away from subsidized funding to commercial funding which is far more dependable and sustainable. Moreover, MFBs have been able to meet noteworthy success in deposit mobilization over the last few years by offering above market rates to depositors. Because of the low interest rates environment, MFBs could offer such high rates without any impact on the pricing side. An increasing ROE for the players has been essential to sustain the double-digit growth witnessed over the last few years by allowing them to meet the capital adequacy requirements.
Smaller players have also been finding it difficult to meet the Minimum Capital Requirement (MCR) of PKR 50 million set by SECP. While some have been provided a subordinated debt facility by PMIC, other are still trying to meet the capital requirement. Most of these players are young and
growing and if given time would be able to meet the MCR. In this regard, SECP has forwarded the GOP a proposal to give entities with less than 5,000 borrowers and a GLP of PKR 50 million exemption from being regulated.
Responsible Finance & Financial LiteracyStrengthening Grievance Redressal Mechanisms among MFPs in Pakistan With tremendous growth in the past several years, it is widely recognized that microfinance in this increasingly complex and competitive global environment needs various interventions; one of the most important ones being strengthening grievance redressal mechanisms at the institutional level as well as provision of a third-party platform at the sector level.
Currently, most of the MFPs in the sector are making conscious efforts to bring clients to the center of their services. Most of the weak spots identified are due to the lags in the capacity and lack of formalization of grievance redressal processes rather than the lack of will.
According to a baseline study conducted by PMN in collaboration with The Smart Campaign, while the majority of the MFPs in the industry have some forms of grievance redressal channels in place, their appropriateness for the size and scope of respective MFPs remains questionable. The study findings depict that the complaint avenues offered by the medium and small MFPs are in line with the standards expected of their
The Interest Rate Conundrum
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capacity and size, however, much work needs to be done with the large MFPs to bring much-needed sophistication in their GR policies as well as processes. A comparison between peer groups revealed that while MFBs have robust multi-channel processes in place, owing to the SBP regulations, the same cannot be said for the NBMFIs, who irrespective of their size are still employing rudimentary mechanisms of complaint handling. Among large MFPs, 6 still do not have a separate designated resource/department for complaint resolution, and complaints are often routed through the operations department, highlighting an inherent conflict of interest and inappropriateness of the mechanism in place. This calls for regulators and policy makers to introduce mandatory formal GR protocols for this peer group as well.
Establishing an Independent Grievance Redressal Platform In addition to well-functioning complaints handling mechanisms at the MFP level, there is also a need to set up an independent grievance resolution authority at the national level. Currently, only clients of microfinance banks (MFBs) have access to an independent, third party complaint resolution mechanism through the State Bank of Pakistan. There is no such platform for clients of non-bank microfinance providers. The absence of such a platform increases the risk of clients approaching politicians and media (or other actors such as lawyers and thugs) in case they have a complaint against their respective service provider. Intervention by these types of players is detrimental for the sector and can lead to a delinquency crisis as was witnessed in Punjab in 2008-09.
Moreover, absence of a sector-level platform distorts the playing field for bank and non-bank MFPs. In addition, such platforms, if available, can raise ‘red flags’ by bringing to notice any systemic issues before they snowball into sector-wide disasters. Increasing competitiveness in the industry can lead to unhealthy practices and pose reputation risks, and damage the vulnerable population that makes up the microfinance client base. Pakistan Microfinance Network, as the national association of microfinance providers in
the country, is not only interested in establishing such a system at the sector level but is also willing to do the needed legwork.
At present, there are few countries in the world that have an industry-wide complaint resolution system for microfinance clients and experience thereof. Nonetheless, there exists at least one very strong example of an existing national system: the Client Grievance Cell housed at the National Credit Regulator (NCR) in South Africa.
The South African grievance redressal system caters to the clients of not only the microfinance sector, but clients of all financial services at the national level. The National Credit Regulator (NCR) was established as the regulator in South Africa under the National Credit Act 34 of 2005 and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, and investigation of complaints. In addition, the NCR is tasked with the registration of credit providers, credit bureaus and debt counselors, and enforcement of compliance with the Act.25 It is within the NCR that a client grievance redressal cell records and resolves client complaints.
In another example from beyond the border, Microfinance Institutions Network (MFIN) as a Self-Regulatory Organization (SRO) has set up a toll-free number (which was instituted in July 2015)26 number that gives direct access to microfinance clients to reach out to the SRO with their grievances. Although the SRO grievance redressal mechanism is an appellate level mechanism, there is no restriction on clients reaching out to MFIN. In the event of clients reaching out, the SRO facilitates communication of client complaints to the concerned MFI and tracks its resolution and where the case is not resolved to the satisfaction of the client within the stipulated Turn Around Time (TAT), MFIN’s Enforcement Committee steps in to resolve the same.
Drawing upon the experiences from across the globe, all the industry stakeholders, regulators, donors/investors and practitioners need to come together to develop a third-party solution for clients as the industry continues to scale new heights in terms of expansion and maturity.
25 http://www.ncr.org.za/26 http://mfinindia.org/our-work/self-regulation/Se
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Financial Literacy and Client Awareness In Pakistan, as is the case internationally, there is growing pressure on the microfinance sector to generate economic growth and poverty alleviation through creating greater access to formal financial institutions for the poor. Given the social objectives tied to this sector in particular, it is important for financial institutions and other stakeholders to provide responsible finance and create an environment that is conducive for consumers to improve their socio-economic wellbeing. It is a natural progression, therefore, that the target clients of microfinance are made aware of basic money matters – that is they are given financial literacy trainings of savings, budgeting, debt management and other issues relevant to their success.
Currently only about 16% of the population in Pakistan is availing formal financial services, about one third are using some kind of informal financial service, while the remaining majority of 56% are entirely financially excluded (A2FS survey, 2015). If the situation of financial access in Pakistan is to be remedied, then creating greater financial literacy among the excluded segments of the population will play a crucial role in this regard (notwithstanding the disparity in financial access across gender and urban/rural divides). Moreover, while there is policy emphasis on enhancing outreach of financial services through cellular technology, it is noteworthy that only 3%
of people surveyed in A2FS were found out to be using mobile banking or mobile phone banking, and understanding of these relatively more sophisticated financial terms is low even among the banked population, particularly women.
There is an enormous potential in Pakistan currently to use financial literacy programmes as a means to promote responsible finance in the microfinance sector. PMN has undertaken a financial literacy and client awareness campaign, with an objective to effectively and consistently communicate (through multiple mediums) the intended messages to microfinance clients, promoting responsible behavior by clients and making them aware of what to expect from their service provider.
The Nationwide Financial Literacy Program undertaken by the SBP focuses on the poor income category of the population. It is expected to harness the combined efforts of multiple stakeholders including key outreach partners, possibly microfinance providers, to utilize the established network for dissemination of the financial literacy curriculum through trainings across all provinces. Keeping in mind some of the facts mentioned previously, it is hoped that this broad-based Financial Literacy Program will be successful in imparting theoretical financial education, as well as practical knowledge including information on available financial services and how/when to best utilize these, and the importance of consumer protection, to people who will benefit most from such an initiative.
Meeting the Funding ChallengeFunding remains one of the key challenges facing the industry. The funding needs of the industry have enhanced considerably due to growth witnessed over the last few years. As outlined in the Microfinance Growth Strategy 2020 published by PMN, the total funding requirement of the industry will reach PKR 400 billion which will be met by a combination of deposits and debt. MFPs are gradually diversifying their sources of funds to meet their financing needs.
MFBs have been successful in mobilizing deposits and to a considerable extent are relying on deposits to meet their funding needs. However, a few MFBs have also borrowed both locally and internationally to meet their liquidity
requirements.
The funding challenge is more precarious for MFIs and RSPs since they are dependent upon borrowed funds for on-lending. Moreover, unlike MFBs, they have not been regulated entities until recently which has caused many commercial lenders to shy away from them leaving them dependent upon the national apex to raise funds. It is hoped that the regulatory umbrella will help these organizations to borrow commercially.
Recent commencement of operations by PMIC and enhancement of its funding base is likely to play a crucial role in the continued growth of the sector. Some of the specific funding challenges
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and opportunities facing the sector are discussed as follow.
Deposit Mobilization: The Way Forward MFBs have met considerable success in mobilizing deposits over the last few years allowing them to fuel their credit growth from funds obtained through deposits. However, most of their deposits have been obtained by offering above market rates to corporate entities and high net worth individuals.
The current low interest rate environment has facilitated the above strategy by keeping the funding costs low. However, an increasing interest rate would push the funding costs up, leading MFBs to either reduce the markup being offered on deposits and risk being uncompetitive in comparison to the commercial banks or to suffer a cut in profitability.
With a solid deposit base combined with prevailing low interest environment, MFBs need to diversify their sources of deposits by developing newer savings products that meet the needs of micro-savers. M-Wallet accounts can play a crucial role in this regard. MFIs and RSPs as regulated entities now have the ability to raise funds by issuing Certificate of Deposits (CODs) contingent upon a capital requirement of PKR 1 billion and a favorable credit rating.
Why Guarantee Schemes? Guarantee facilities have played a crucial role in encouraging commercial lenders to lend to the microfinance sector and develop their comfort level about extending credit to practitioners. It has enabled bigger and more established players to obtain clean funding lines from financial institutions and raise funds through the capital markets.
However, the same cannot be said about the mid-sized and smaller players. Commercial lenders are reluctant to lend to mid-sized players and smaller players in the absence of a guarantee facility or any tangible collateral. The situation has been compounded by the expiry of the Microfinance Credit Guarantee Facility (MCGF). There is a need for similar facilities for mid-sized
players which would enable them to borrow from commercial lenders.
International Lending Solid growth and all-round positive indicators have generated considerable investor interest in the microfinance industry in Pakistan. International DFIs, MIVs, Social and Impact Investors have been aggressively exploring the market. Their target has been both larger and medium sized institutes for debt mainly. However, high pricing including the hedging costs coupled with the current low interest rate environment has kept bigger players borrowing from local sources of funds. Only a few DFIs offering competitive rates have been able to place funds with such entities.
In comparison, mid-sized institutes are willing to pay a premium to meet their increasing funding needs by borrowing from international donors. Since mid-sized entities are facing difficulty in raising funds from local markets in absence of collateral, clean lines extended by international donors are an attractive option for them. In addition, the PMIC requirement for borrowing institutes to raise at least 30 percent of their financing from other sources has also pushed organizations to borrow internationally.
Coopting Government Initiatives and Credit Interventions For an industry that counts funding among its key challenges, coopting government credit initiatives and interventions can provide an avenue for additional funding. The Interest Free Loan scheme launched under the Prime Minister’s Youth Loan Scheme provides an ideal example. Administered by PPAF, funded by GOP and channelized through MFPs the scheme has been a win-win for both government and MFPs.
The Government’s initiative to reach out to small and marginalized farmers and provide low cost housing segments through retail credit guarantees schemes can be similarly coopted by the microfinance industry. It would open newer funding avenues for the MFPs and allow them to enter newer market segments.
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Section 5ANNEXURES
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Infrastructure2010 2011 2012 2013 2014 2015 2016
Total Assets (PKR 000) 35,826,211 48,569,411 61,928,036 81,557,894 105,443,135 145,186,197 225,316,798
Branches (including Head Office)
1,405 1,550 1,630 1,606 2,026 2,754 2,430
Total Staff 12,005 14,202 15,153 17,456 21,516 25,560 29,413
Growth Rate
Total Assets 17.6% 35.6% 27.5% 31.7% 29.3% 37.7% 55.2%
Branches (including Head Office)
15.1% 10.3% 5.2% -1.5% 26.2% 35.9% -11.8%
Total Staff 3.9% 18.3% 6.7% 15.2% 23.3% 18.8% 15.1%
Financing Structure2010 2011 2012 2013 2014 2015 2016
Total Assets (PKR 000) 35,826,211 48,569,411 61,928,036 81,557,894 105,443,135 145,186,198 225,316,798
Total Equity (PKR 000) 8,359,260 10,314,307 11,679,373 17,049,706 22,873,920 29,688,776 36,535,925
Total Debt (PKR 000) 27,466,951 38,255,104 25,876,598 26,913,359 34,682,369 38,554,959 54,710,855
Commercial Liabilities (PKR 000)
4,910,265 12,332,456 19,361,179 21,662,200 18,679,724 19,030,672 43,167,480
Deposits (PKR '000)* 10,132,332 13,908,759 20,840,990 32,925,558 42,715,846 60,028,340 118,096,732
Gross Loan Portfolio (PKR '000)
20,295,915 24,854,747 33,877,284 46,613,582 63,531,465 90,296,341 132,003,052
Ratios
Equity-to-Asset Ratio 23.3% 21.2% 18.9% 20.9% 21.7% 20.4% 16.2%
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2010 2011 2012 2013 2014 2015 2016
Commercial Liabilities-to-Total Debt
17.9% 32.2% 74.8% 80.5% 53.9% 49.4% 78.9%
Debt-to-Equity Ratio 3.29 3.41 2.22 1.58 1.52 1.30 1.50
Deposits-to-Gross Loan Portfolio
49.9% 56.0% 61.5% 70.6% 67.2% 66.5% 89.5%
Deposits-to-Total Assets 28.3% 28.6% 33.7% 40.4% 40.5% 41.3% 52.4%
Gross Loan Portfolio-to-Total Assets
56.7% 51.2% 54.7% 57.2% 60.3% 62.2% 58.6%
*Only MFB deposits included
Outreach2010 2011 2012 2013 2014 2015 2016
Active Borrowers 1,567,355 1,661,902 2,040,518 2,392,874 2,997,868 3,632,532 4,225,968
Active Women Borrowers 811,520 917,058 1,275,387 1,442,197 1,692,451 2,001,772 2,273,389
Gross Loan Portfolio (PKR 000)
20,295,915 24,854,747 33,877,284 46,613,582 63,531,465 90,100,405 132,003,052
Annual per Capita Income (PKR)***
105,300 107,505 118,085 143,808 143,808 153,060 153,060
Number of Loans Outstanding
1,547,197 1,661,902 2,040,518 2,401,849 2,998,895 3,632,532 4,227,317
Depositors**** 764,271 1,332,705 1,730,823 2,150,675 5,675,437 10,661,366 15,937,079
Number of Deposit Accounts
764,271 1,332,705 1,730,823 2,998,641 5,675,437 10,661,366 15,937,079
Number of Women Depositors
64,159 259,104 334,994 837,144 2,503,582 3,009,992 142,784
Deposits Outstanding 10,132,332 13,908,759 20,840,990 32,925,559 42,715,786 60,028,340 118,096,732
Weighted Avg.
Proportion of Active Women Borrowers (%)
51.8% 55.2% 62.5% 60.3% 56.5% 55.1% 53.8%
Average Loan Balance per Active Borrower (PKR)
12,949 14,956 16,602 19,480 21,192 24,804 31,236
Average Loan Balance per Active Borrower/Per Capita Income
12.3% 13.9% 14.1% 13.5% 14.7% 16.2% 20.4%
Average Outstanding Loan Balance (PKR)
13,118 14,956 16,602 19,407 21,185 24,804 31,226
Average Outstanding Loan Balance /Per Capita Income
12.5% 13.9% 14.1% 13.5% 14.7% 16.2% 20.4%
Proportion of Active Women Depositors (%)
8.4% 19.4% 19.4% 38.9% 44.11% 28.23% 0.90%
Average Saving Balance per Active Depositor (PKR)
13,258 10,436 12,041 15,309 7,526 5,630 7,410
Active Deposit Account Balance (PKR)
13,258 10,436 12,041 10,980 7,526 5,630 7,410
* Includes KF data** Without KF data*** Source: http://www.sbp.org.pk/reports/stat_reviews/Bulletin/2012/Feb/EconomicGrowth.pdf**** Only MFB deposits included
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Financial Performance2010 2011 2012 2013 2014 2015 2016
Income from Loan Portfolio 6,122,154 7,998,956 10,040,720 13,542,893 18,581,489 26,007,641 36,582,140
Income from Investments 870,809 1,203,306 1,774,610 1,742,975 2,051,547 3,946,607 2,716,932
Income from Other Sources 528,457 899,713 816,461 2,093,035 3,707,417 2,919,233 2,471,332
Total Revenue 7,521,420 10,101,975 12,631,792 17,378,903 24,340,453 32,873,481 41,770,404
Less : Financial Expense 2,016,795 2,905,049 3,974,467 4,767,589 5,451,197 6,550,481 8,963,917
Gross Financial Margin 5,504,624 7,196,926 8,657,325 12,611,314 18,889,256 26,323,001 32,806,487
Less: Loan Loss Provision Expense
745,660 623,988 643,991 658,812 794,500 1,258,313 2,504,433
Net Financial Margin 4,758,964 6,572,938 8,013,334 11,952,503 18,094,756 25,064,687 30,302,054
Personnel Expense 2,819,891 3,345,284 3,784,676 5,032,342 6,557,709 8,712,495 11,575,971
Admin Expense 1,961,816 2,446,750 2,886,025 3,880,920 5,951,408 7,244,592 9,076,966
Less: Operating Expense 4,781,707 5,792,035 1,342,633 8,913,262 12,509,117 15,957,087 20,652,937
Other Non-Operating Expense
257,651 380,993 1,546,240 2,719,173 772,940
Net Income before Tax (22,742) 780,903 1,084,982 2,658,248 4,039,399 6,388,427 8,876,178
Provision for Tax (7,047) 116,314 152,380 503,118 614,684 1,230,787 1,977,555
Net Income/(Loss) (15,696) 664,589 932,602 2,155,130 3,424,715 5,157,640 6,898,623
Adjusted Financial Expense on Borrowings
- 372,524 205,943 181,422 113,553 402,632 491,926
Inflation Adjustment Expense
- (3,073) 870 1,152 916 270 722
Adjusted Loan Loss Provision Expense
- 357,688 49,456 18,743 13,625 275,656 321,188
Total Adjustment Expense - 727,138 256,270 201,317 128,095 678,559 813,820
Net Income/(Loss) After Adjustments
(15,696) (62,549) 676,332 1,953,814 3,296,620 4,479,081 6,084,802
Average Total Assets 30,399,088 42,282,393 57,182,714 70,192,281 95,494,664 125,951,408 178,064,618
Average Total Equity 7,854,713 8,719,204 11,594,943 14,513,187 20,629,780 89,551,880 32,240,189
Ratios weighted avg. weighted avg. weighted avg.
Adjusted Return-on-Assets (0.1%) (0.1%) 1.2% 3.3% 3.5% 3.6% 3.4%
Adjusted Return-on-Equity (0.2%) (0.7%) 5.8% 16.1% 16.0% 5.0% 18.9%
Operational Self Sufficiency (OSS)
99.7% 108.4% 109.4% 118.1% 119.9% 124.1% 127.0%
Financial Self Sufficiency (FSS)
81.7% 100.5% 107.0% 116.5% 117.7% 121.0% 123.9%
* Includes KF data** Without KF data
Operating Income2010 2011 2012 2013 2014 2015 2016
Revenue from Loan Portfolio 6,122,154 7,998,956 10,040,720 13,542,893 18,581,489 26,007,641 36,582,140
Total Revenue 7,521,420 10,101,975 12,631,792 17,378,903 24,821,486 32,873,481 41,770,404
Adjusted Net Operating Income/(Loss)
-22,742 5,252 828,712 2,456,931 3,286,779 4,474,629 6,084,786
Average Total Assets 30,399,088 42,282,393 57,182,714 70,192,281 95,494,664 125,951,408 178,064,618
Gross Loan Portfolio (Opening Balance)
16,948,466 20,576,342 25,743,757 34,668,730 48,423,008 63,402,462 89,528,314
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Gross Loan Portfolio (Closing Balance)
20,295,915 24,854,747 33,877,284 46,105,712 63,531,465 90,283,337 132,003,052
Average Gross Loan Portfolio
18,622,190 22,715,544 29,810,520 40,387,221 55,977,237 76,842,899 110,765,683
Inflation Rate *** 15.0% 11.2% 10.4% 9.2% 8% 4% 4%
weighted avg. weighted avg. weighted avg.
Total Revenue Ratio (Total Revenue-to-Average Total Assets)
24.7% 23.9% 22.3% 24.8% 26.0% 26.1% 23.5%
Adjusted Profit Margin (Adjusted Profit/(Loss)-to-Total Revenue)
(0.3%) 0.1% 7.0% 14.1% 13.2% 13.6% 14.6%
Yield on Gross Portfolio (Nominal)
32.9% 35.2% 34.2% 33.5% 34.6% 34.6% 33.0%
Yield on Gross Portfolio (Real)
15.5% 21.6% 21.6% 22.3% 24.4% 29.9% 29.8%
* Includes KF data** Without KF data*** Source: http://www.sbp.org.pk/reports/stat_reviews/Bulletin/2012/Feb/IND.pdf
Operating Expense2010 2011 2012 2013 2014 2015 2016
Adjusted Total Expense 7,544,162 10,096,723 11,803,080 14,540,979 20,842,120 27,121,782 33,707,341
Adjusted Financial Expense 2,016,795 3,304,504 4,181,281 4,950,162 5,742,091 6,911,552 9,455,843
Adjusted Loan Loss Provision Expense
745,660 1,000,184 693,447 677,555 808,125 1,533,970 2,825,622
Adjusted Operating Expense 4,781,707 5,792,035 6,928,352 8,913,262 14,291,904 18,676,260 21,425,876
Adjustment Expense - 775,651 256,270 201,317 453,639 678,579 813,837
Average Total Assets 30,399,088 42,282,393 57,182,714 70,192,281 95,494,664 125,951,408 178,064,618
Ratios weighted avg. weighted avg. weighted avg.
Adjusted Total Expense-to-Average Total Assets
24.8% 23.9% 20.6% 20.7% 21.8% 21.5% 18.9%
Adjusted Financial Expense-to-Average Total Assets
6.6% 7.8% 7.3% 7.1% 6.0% 5.5% 5.3%
Adjusted Loan Loss Provision Expense-to-Average Total Assets
2.5% 2.4% 1.2% 1.0% 0.8% 1.2% 1.6%
Adjusted Operating Expense-to-Average Total Assets
15.7% 13.7% 12.1% 12.7% 15.0% 14.8% 12.0%
Adjusted Personnel Expense 9.3% 7.9% 6.6% 7.2% 6.9% 6.9% 6.5%
Adjusted Admin Expense 6.5% 5.8% 5.0% 5.5% 6.2% 5.8% 5.1%
Adjustment Expense-to-Average Total Assets
0.0% 1.8% 0.4% 0.3% 0.5% 0.5% 0.5%
* Includes KF data** Without KF data
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Operating Efficiency2010 2011 2012 2013 2014 2015 2016
Operating Expense (PKR 000)
4,781,707 5,792,035 6,928,352 8,913,262 12,745,665 15,957,087 20,652,937
Personnel Expense (PKR 000)
2,819,891 3,345,284 3,784,676 5,032,342 6,794,257 8,712,495 11,575,971
Average Gross Loan Portfolio (PKR 000)
18,622,190 22,715,544 29,810,520 40,387,221 55,977,237 76,842,899 110,765,683
Average Number of Active Borrowers
1,567,355 1,661,902 2,040,518 2,350,650 2,997,868 3,632,532 4,225,968
Average Number of Active Loans
1,567,355 1,661,902 2,040,518 2,359,625 2,998,895 3,632,532 4,227,317
Ratios weighted avg. weighted avg. weighted avg.
Adjusted Operating Expense-to-Average Gross Loan Portfolio
25.7% 25.5% 23.2% 22.1% 22.8% 20.8% 18.6%
Adjusted Personnel Expense-to-Average Gross Loan Portfolio
15.1% 14.7% 12.7% 12.5% 12.1% 11.3% 10.5%
Average Salary/Gross Domestic Product per Capita
2.23 2.19 2.12 2.00 2.2 2.2 2.6
Adjusted Cost per Borrower (PKR)
3,051 3,485 3,395 3,792 4,252 4,393 4,887
Adjusted Cost per Loan (PKR)
3,051 3,485 3,395 3,777 4,250 4,393 4,886
* Includes KF data** Without KF data
Productivity2010 2011 2012 2013 2014 2015 2016
Number of Deposit Accounts
764,271 1,332,705 1,730,823 2,707,872 5,675,437 10,661,366 15,937,079
Total Staff 12,005 14,202 15,153 15,673 19,227 25,343 29,413
Total Loan Officers 5,148 7,165 7,541 6,892 8,801 9,923 15,342
Ratios weighted avg. weighted avg. weighted avg.
Borrowers per Staff 131 117 135 144 156 143 144
Loans per Staff 131 117 135 144 156 143 144
Borrowers per Loan Officer 304 232 271 327 341 366 275
Loans per Loan Officer 304 232 271 328 328 366 276
Depositors per Staff 64 94 114 121 295 421 542
Deposit Accounts per Staff 64 94 114 173 295 421 542
Personnel Allocation Ratio 42.9% 50.5% 49.8% 44.0% 45.8% 39.2% 52.2%
* Includes KF data** Without KF data
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Risk2010 2011 2012 2013 2014 2015 2016
Portfolio at Risk > 30 days 829,314 793,966 1,232,842 1,157,297 659,418 1,321,207 1,565,459
Portfolio at Risk > 90 days 577,972 516,623 1,020,316 932,166 379,637 781,212 1,073,562
Adjusted Loan Loss Reserve 733,338 623,988 759,621 708,355 1,189,884 1,468,006 2,814,919
Loan Written Off during Year
335,463 592,429 675,835 615,293 1,222,076 917,855 1,147,319
Gross Loan Portfolio 20,295,915 24,854,747 33,877,284 46,105,712 63,531,465 90,081,589 132,003,052
Average Gross Loan Portfolio
18,622,190 22,715,544 29,810,520 40,387,221 55,977,237 76,690,720 110,765,683
Ratios weighted avg. weighted avg. weighted avg.
Portfolio at Risk (>30)-to-Gross Loan Portfolio
4.1% 3.2% 3.6% 2.5% 1.0% 1.5% 1.2%
Portfolio at Risk(>90)-to-Gross Loan Portfolio
2.8% 2.1% 3.0% 2.0% 0.6% 0.9% 0.8%
Write Off-to-Average Gross Loan Portfolio
1.8% 2.6% 2.3% 1.5% 2.2% 1.2% 1.0%
Risk Coverage Ratio (Adjusted Loan Loss Reserve-to-Portfolio at Risk > 30 days)
88.4% 78.6% 61.6% 61.2% 180.4% 111.1% 179.8%
* Includes KF data** Without KF data
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AII - Performance indicators of individual MFPs 2016
InfrastructureMFB
KBL TMFB FMFB NRSP-B FINCA
Age 16 12 16 8 9
Total assets (PKR 000)
33,773,478 36,303,646 16,878,231 26,452,428 15,617,965
Total equity (PKR 000)
4,937,097 4,585,909 3,830,504 3,203,730 2,432,553
Total liabilities (PKR 000)
28,836,382 31,717,737 13,047,727 23,248,698 13,185,412
Branches (including Head Office)
139 74 120 97 105
Personnel 2,708 3,473 1,541 2,340 1,324
MFB
AMFB MMFB U-Bank ADVANS Sub
Age 14 6 5 5
Total assets (PKR 000)
13,554,003 14,233,857 10,591,716 684,455 168,090
Total equity (PKR 000)
707,199 1,230,493 1,122,466 615,175 22,665,126
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MFB
AMFB MMFB U-Bank ADVANS Sub
Total liabilities (PKR 000)
12,846,804 13,003,364 9,469,250 69,281 145,425
Branches (including Head Office)
89 51 77 5 757
Personnel 1,516 740 939 141 14,722
MFI
OCT KASHF SAFCO DAMEN CSC
Age 32 10 8 3 2
Total assets (PKR 000)
762,613 7,370,015 1,093,119 1,832,714 853,096
Total equity (PKR 000)
340,469 1,575,047 364,477 451,455 220,644
Total liabilities (PKR 000)
422,144 5,794,969 728,642 1,381,260 632,451
Branches (including Head Office)
11 187 35 32 17
Personnel 140 2,096 286 250 208
MFI
GBTI FFO ASA-P MO BRAC-P
Age 21 14 9 8 9
Total assets (PKR 000)
696,390 487,403 6,103,602 114,864 1,641,931
Total equity (PKR 000)
401,773 42,683 1,481,968 53,907 189,550
Total liabilities (PKR 000)
294,617 444,720 4,621,634 60,957 1,452,382
Branches (including Head Office)
17 18 230 5 69
Personnel 93 158 1,592 26 474
MFI
JWS ORIX RCDP Agahe AMRDO
Age 15 31 1 1 9
Total assets (PKR 000)
919,256 464,559 1,686,561 253,338 275,488
Total equity (PKR 000)
270,601 170,090 540,138 66,594 48,216
Total liabilities (PKR 000)
648,655 294,469 1,146,422 186,744 227,272
Branches (including Head Office)
24 10 35 11 16
Personnel 249 73 421 86 104
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MFI
OPD SAATH SRDO SVDP VDO
Age 25 3 16 2 1
Total assets (PKR 000)
120,321 181,089 142,292 208,463 37,412
Total equity (PKR 000)
5,414 30,141 34,428 49,043 25,332
Total liabilities (PKR 000)
114,907 150,948 107,864 159,420 12,080
Branches (including Head Office)
6 5 4 8 2
Personnel 62 35 26 71 12
MFI
Akhuwat OSDI Sub
Age 7
Total assets (PKR 000)
10,316,587 23,172 35,584,284
Total equity (PKR 000)
1,402,831 22,836 7,787,635
Total liabilities (PKR 000)
8,913,756 336 27,796,650
Branches (including Head Office)
500 4 1,246
Personnel 3,491 46 9,999
RSP
NRSP PRSP TMF SRSO Sub
Age 8 19 17 14
Total assets (PKR 000)
15,485,752 2,971,177 2,004,171 1,181,633 21,642,732
Total equity (PKR 000)
4,467,973 1,025,673 647,658 (58,140) 6,083,164
Total liabilities (PKR 000)
11,017,778 1,945,504 1,356,514 1,239,773 15,559,569
Branches (including Head Office)
160 60 150 57 427
Personnel 3,221 641 527 303 4,692
Sub MFB Sub MFI Sub RSP Total
Age
Total assets (PKR 000)
168,090 35,584,284.586 21,642,732.911 225,316,798
Total equity (PKR 000)
22,665,126 7,787,635 6,083,164 36,535,925
Total liabilities (PKR 000)
145,425 27,796,650 15,559,569 188,780,873
Branches (including Head Office)
757 1,246 427 2,430
Personnel 14,722 9,999 4,692 29,413
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Financing Structure In PKR (000)MFB
KBL TMFB FMFB NRSP-B FINCA
Total assets 33,773,478 36,303,646 16,878,231 26,452,428 15,617,965
Total equity 4,937,097 4,585,909 3,830,504 3,203,730 2,432,553
Total debt 6,199,882 - 297,820 5,349,535 1,350,002
- Subsidized debt* 1,454,918 - - - -
- Commercial debt 4,744,964 - 297,820 5,349,535 1,350,002
Total Deposits 21,179,403 27,829,780 12,237,466 16,922,084 11,069,656
Total Liabilities 28,836,382 31,717,737 13,047,727 23,248,698 13,185,412
Gross loan portfolio 23,308,981 15,945,319 8,273,926 13,271,040 10,209,129
Equity-to-asset ratio 14.6% 12.6% 22.7% 12.1% 15.6%
Commercial liabilities-to-total debt
76.5% #DIV/0! 100.0% 100.0% 100.0%
Debt-to-equity ratio 1.3 0.0 0.1 1.7 0.6
Deposits-to-gross loan portfolio
90.9% 174.5% 147.9% 127.5% 108.4%
Deposits-to-total assets
62.7% 76.7% 72.5% 64.0% 70.9%
Cost of funds 6.6% 4.0% 4.6% 5.6% 5.2%
Gross loan portfolio-to-total assets
69.0% 43.9% 49.0% 50.2% 65.4%
MFB
AMFB MMFB U-Bank ADVANS Sub
Total assets 13,554,003 14,233,857 10,591,716 684,455 168,089,780
Total equity 707,199 1,230,493 1,122,466 615,175 22,665,126
Total debt 204,002 - 1,000,000 - 14,401,240.699
- Subsidized debt* - - - - 1,454,918
- Commercial debt 204,002 - 1,000,000 - 12,946,323
Total Deposits 10,420,589 10,306,362 8,109,924 21,469 118,096,732.386
Total Liabilities 12,846,804 13,003,364 9,469,250 69,281 145,424,654
Gross loan portfolio 6,320,692 5,933,962 5,576,802 212,539 89,052,391
Weighted Avg.
Equity-to-asset ratio 5.2% 8.6% 10.6% 89.9% 13.5%
Commercial liabilities-to-total debt
0.0% 0.0% 0.0% 0.0% 89.9%
Debt-to-equity ratio 0.3 0.0 0.9 0.0 0.6
Deposits-to-gross loan portfolio
164.9% 173.7% 145.4% 10.1% 132.6%
Deposits-to-total assets
76.9% 72.4% 76.6% 3.1% 70.3%
Cost of funds 6.3% 2.5% 4.7% 3.9% 5.1%
Gross loan portfolio-to-total assets
46.6% 41.7% 52.7% 31.1% 53.0%
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MFI
OCT KASHF SAFCO DAMEN CSC
Total assets 762,613 7,370,015 1,093,119 1,832,714 853,096
Total equity 340,469 1,575,047 364,477 451,455 220,644
Total debt 360,007 5,535,202 687,435 1,365,310 607,482
- Subsidized debt* - 233,850 144,000 - -
- Commercial debt 360,007 5,301,352 543,435 1,365,310 607,482
Total Deposits - - - - -
Total Liabilities 422,144 5,794,969 728,642 1,381,260 632,451
Gross loan portfolio 594,625 4,562,209 765,014 1,251,104 483,208
Equity-to-asset ratio 44.6% 21.4% 33.3% 24.6% 25.9%
Commercial liabilities-to-total debt
100.0% 95.8% 79.1% 100.0% 100.0%
Debt-to-equity ratio 1.1 3.5 1.9 3.0 2.8
Deposits-to-gross loan portfolio
- - - - -
Deposits-to-total assets
- - - - -
Cost of funds 10.3% 10.2% 7.1% 7.5% 6.1%
Gross loan portfolio-to-total assets
78.0% 61.9% 70.0% 68.3% 56.6%
MFI
GBTI FFO ASA-P MO BRAC-P
Total assets 696,390 487,403 6,103,602 114,864 1,641,931
Total equity 401,773 42,683 1,481,968 53,907 189,550
Total debt 233,237 399,313 4,214,517 60,725 977,499
- Subsidized debt* 56,389 20,000 - - 66,397
- Commercial debt 176,847 379,313 4,214,517 60,725 911,102
Total Deposits - - - - -
Total Liabilities 294,617 444,720 4,621,634 60,957 1,452,382
Gross loan portfolio 192,672 369,319 5,654,742 80,870 1,505,789
Equity-to-asset ratio 57.7% 8.8% 24.3% 46.9% 11.5%
Commercial liabilities-to-total debt
75.8% 95.0% 100.0% 100.0% 93.2%
Debt-to-equity ratio 0.6 9.4 2.8 1.1 5.2
Deposits-to-gross loan portfolio
- - - - -
Deposits-to-total assets
- - - - -
Cost of funds 4.8% 7.5% 4.4% 16.9% 6.9%
Gross loan portfolio-to-total assets
27.7% 75.8% 92.6% 70.4% 91.7%
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MFI
JWS ORIX RCDP Agahe AMRDO
Total assets 919,256 464,559 1,686,561 253,338 275,488
Total equity 270,601 170,090 540,138 66,594 48,216
Total debt 589,121 183,786 1,109,938 178,525 214,934
- Subsidized debt* 2,182 - 208,081 57,902 60,000
- Commercial debt 586,939 183,786 901,858 120,622 154,934
Total Deposits - - - - -
Total Liabilities 648,655 294,469 1,146,422 186,744 227,272
Gross loan portfolio 718,859 444,451 1,402,610 201,154 174,186
Equity-to-asset ratio 29.4% 36.6% 32.0% 26.3% 17.5%
Commercial liabilities-to-total debt
99.6% 100.0% 81.3% 67.6% 72.1%
Debt-to-equity ratio 2.2 1.1 2.1 2.7 4.5
Deposits-to-gross loan portfolio
- - - - -
Deposits-to-total assets
- - - - -
Cost of funds 2.3% 9.0% 2.6% 4.7% 5.5%
Gross loan portfolio-to-total assets
78.2% 95.7% 83.2% 79.4% 63.2%
MFI
OPD SAATH SRDO SVDP VDO
Total assets 120,321 181,089 142,292 208,463 37,412
Total equity 5,414 30,141 34,428 49,043 25,332
Total debt 110,960 139,083 105,271 153,361 9,084
- Subsidized debt* 17,600 42,591 - - -
- Commercial debt 93,360 96,492 105,271 153,361 9,084
Total Deposits - - - - -
Total Liabilities 114,907 150,948 107,864 159,420 12,080
Gross loan portfolio 90,843 128,934 95,678 148,190 15,524
Equity-to-asset ratio 4.5% 16.6% 24.2% 23.5% 67.7%
Commercial liabilities-to-total debt
84.1% 69.4% 100.0% 100.0% 100.0%
Debt-to-equity ratio 20.5 4.6 3.1 3.1 0.4
Deposits-to-gross loan portfolio
- - - - -
Deposits-to-total assets
- - - - -
Cost of funds 7.1% 7.1% 6.7% 8.5% 11.4%
Gross loan portfolio-to-total assets
75.5% 71.2% 67.2% 71.1% 41.5%
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MFI
Akhuwat OSDI Sub
Total assets 10,316,587 23,172 35,584,285
Total equity 1,402,831 22,836 7,787,634.674
Total debt 8,848,845 - 26,083,632.559
- Subsidized debt* 8,848,845 - 9,757,837
- Commercial debt - - 16,325,795
Total Deposits - - -
Total Liabilities 8,913,756 336 27,796,650
Gross loan portfolio 8,063,573 11,407 26,954,961
Weighted Avg.
Equity-to-asset ratio 13.6% 98.6% 21.9%
Commercial liabilities-to-total debt
0.0% #DIV/0! 62.6%
Debt-to-equity ratio 6.3 0.0 3.35
Deposits-to-gross loan portfolio
- - -
Deposits-to-total assets
- - -
Cost of funds 0.0% #DIV/0! 4.6%
Gross loan portfolio-to-total assets
78.2% 49.2% 75.7%
RSP
NRSP PRSP TMF SRSO Sub
Total assets 15,485,752 2,971,177 2,004,171 1,181,633 21,642,733
Total equity 4,467,973 1,025,673 647,658 (58,140) 6,083,164.225
Total debt 10,553,599 1,172,558 1,305,825 1,194,000 14,225,982.109
- Subsidized debt* 271,400 59,220 - - 330,620
- Commercial debt 10,282,199 1,113,338 1,305,825 1,194,000 13,895,362
Total Deposits - - - - -
Total Liabilities 11,017,778 1,945,504 1,356,514 1,239,773 15,559,569
Gross loan portfolio 11,960,308 1,080,378 1,603,839 1,351,175 15,995,700
Weighted Avg.
Equity-to-asset ratio 28.9% 34.5% 32.3% -4.9% 28.1%
Commercial liabilities-to-total debt
97.4% 94.9% 100.0% 100.0% 97.7%
Debt-to-equity ratio 2.4 1.1 2.0 -20.5 2.34
Deposits-to-gross loan portfolio
- - - - -
Deposits-to-total assets
- - - - -
Cost of funds 6.9% 6.7% 6.4% 7.0% 7.1%
Gross loan portfolio-to-total assets
77.2% 36.4% 80.0% 114.3% 73.9%
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Sub MFB Sub MFI Sub RSP Total
Total assets 168,089,780 35,584,285 21,642,733 225,316,798
Total equity 22,665,126 7,787,634.674 6,083,164.225 36,535,925
Total debt 14,401,240.699 26,083,632.559 14,225,982.109 54,710,855
- Subsidized debt* 1,454,918 9,757,837 330,620 11,543,375
- Commercial debt 12,946,323 16,325,795 13,895,362 43,167,480
Total Deposits 118,096,732.386 - - 118,096,732
Total Liabilities 145,424,654 27,796,650 15,559,569 188,780,873
Gross loan portfolio 89,052,391 26,954,961 15,995,700 132,003,052
Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg.
Equity-to-asset ratio 13.5% 21.9% 28.1% 16.2%
Commercial liabilities-to-total debt
89.9% 62.6% 97.7% 78.9%
Debt-to-equity ratio 0.6 3.35 2.34 1.50
Deposits-to-gross loan portfolio
132.6% - - 89.5%
Deposits-to-total assets
70.3% - - 52.4%
Cost of funds 5.1% 4.6% 7.1% 5.2%
Gross loan portfolio-to-total assets
53.0% 75.7% 73.9% 58.6%
OutreachMFB
KBL TMFB FMFB NRSP-B FINCA
Active borrowers 557,082 385,415 221,078 325,521 132,252
Active women borrowers
144,765 144,218 78,088 50,959 6,715
Gross loan portfolio (PKR 000)
23,308,981 15,945,319 8,273,926 13,271,040 10,209,129
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
557,082 385,415 221,078 325,521 133,601
Depositors 1,369,007 4,666,050 458,210 674,494 406,984
Number of deposit accounts
1,369,007 4,666,050 458,210 674,494 406,984
Number of women depositors
- - - 109,437 20,925
Deposits outstanding (PKR 000)
21,179,403 27,829,780 12,237,466 16,922,084 11,069,656
Proportion of active women borrowers (%)
26.0% 37.4% 35.3% 15.7% 5.1%
Average loan balance per active borrower (PKR)
41,841 41,372 37,425 40,769 77,195
Average loan balance per active borrower/per capita income
27.3% 27.0% 24.5% 26.6% 50.4%
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MFB
KBL TMFB FMFB NRSP-B FINCA
Average outstanding loan balance (PKR)
41,841 41,372 37,425 40,769 76,415
Average outstanding loan balance / per capita income
27.3% 27.0% 24.5% 26.6% 49.9%
Proportion of active women depositors (%)
0.0% 0.0% 0.0% 16.2% 5.1%
Average saving balance per active depositor (PKR)
15,471 5,964 26,707 25,089 27,199
Active deposit account balance (PKR)
15,471 5,964 26,707 25,089 27,199
MFB
AMFB MMFB U-Bank ADVANS Sub
Active borrowers 45,643 90,929 22,254 2,925 1,783,099
Active women borrowers
5,963 11,292 3,272 624 445,896
Gross loan portfolio (PKR 000)
6,320,692 5,933,962 5,576,802 212,539 89,052,391
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
45,643 90,929 22,254 2,925 1,784,448
Depositors 113,688 8,086,949 153,039 8,658 15,937,079
Number of deposit accounts
113,688 8,086,949 153,039 8,658 15,937,079
Number of women depositors
- - 12,422 142,784
Deposits outstanding (PKR 000)
10,420,589 10,306,362 8,109,924 21,469 118,096,732
Weighted Avg.
Proportion of active women borrowers (%)
13.1% 12.4% 14.7% 21.3% 25.0%
Average loan balance per active borrower (PKR)
138,481 65,259 250,598 72,663 49,942
Average loan balance per active borrower/per capita income
90.5% 42.6% 163.7% 47.5% 32.6%
Average outstanding loan balance (PKR)
138,481 65,259 250,598 72,663 49,905
Average outstanding loan balance / per capita income
90.5% 42.6% 163.7% 47.5% 32.6%
Proportion of active women depositors (%)
0.0% 0.0% 8.1% 0.0% 0.9%
Average saving balance per active depositor (PKR)
91,660 1,274 52,993 2,480 7,410
Active deposit account balance (PKR)
91,660 1,274 52,993 2,480 7,410
* http://www.sbp.org.pk/departments/stats/NDSP.htm
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MFI
OCT KASHF SAFCO DAMEN CSC
Active borrowers 44,741 214,981 58,468 44,954 22,940
Active women borrowers
18,924 214,787 33,470 44,954 21,427
Gross loan portfolio (PKR 000)
594,625 4,562,209 765,014 1,251,104 483,208
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
44,741 214,981 58,468 44,954 22,940
Depositors - - - - -
Number of deposit accounts
- - - - -
Number of women depositors
- - - - -
Deposits outstanding (PKR 000)
- - - - -
Proportion of active women borrowers (%)
42.3% 99.9% 57.2% 100.0% 93.4%
Average loan balance per active borrower (PKR)
13,290 21,221 13,084 27,831 21,064
Average loan balance per active borrower/per capita income
8.7% 13.9% 8.5% 18.2% 13.8%
Average outstanding loan balance (PKR)
13,290 21,221 13,084 27,831 21,064
Average outstanding loan balance / per capita income
8.7% 13.9% 8.5% 18.2% 13.8%
Proportion of active women depositors (%)
- - - - -
Average saving balance per active depositor (PKR)
- - - - -
Active deposit account balance (PKR)
- - - - -
MFI
GBTI FFO ASA-P MO BRAC-P
Active borrowers 13,121 20,724 322,015 4,474 56,327
Active women borrowers
12,749 20,669 314,928 3,140 52,339
Gross loan portfolio (PKR 000)
192,672 369,319 5,654,742 80,870 1,505,789
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
13,121 20,724 322,015 4,474 56,327
Depositors - - - - -
Number of deposit accounts
- - - - -
Number of women depositors
- - - - -
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GBTI FFO ASA-P MO BRAC-P
Deposits outstanding (PKR 000)
- - - - -
Proportion of active women borrowers (%)
97.2% 99.7% 97.8% 70.2% 92.9%
Average loan balance per active borrower (PKR)
14,684 17,821 17,560 18,076 26,733
Average loan balance per active borrower/per capita income
9.6% 11.6% 11.5% 11.8% 17.5%
Average outstanding loan balance (PKR)
14,684 17,821 17,560 18,076 26,733
Average outstanding loan balance / per capita income
9.6% 11.6% 11.5% 11.8% 17.5%
Proportion of active women depositors (%)
- - - - -
Average saving balance per active depositor (PKR)
- - - - -
Active deposit account balance (PKR)
- - - - -
MFI
JWS ORIX RCDP Agahe AMRDO
Active borrowers 35,627 22,718 71,430 14,269 12,891
Active women borrowers
35,293 21,202 64,834 13,574 7,302
Gross loan portfolio (PKR 000)
718,859 444,451 1,402,610 201,154 174,186
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
35,627 22,718 71,430 14,269 12,891
Depositors - - - - -
Number of deposit accounts
- - - - -
Number of women depositors
- - - - -
Deposits outstanding (PKR 000)
- - - - -
Proportion of active women borrowers (%)
99.1% 93.3% 90.8% 95.1% 56.6%
Average loan balance per active borrower (PKR)
20,177 19,564 19,636 14,097 13,512
Average loan balance per active borrower/per capita income
13.2% 12.8% 12.8% 9.2% 8.8%
Average outstanding loan balance (PKR)
20,177 19,564 19,636 14,097 13,512
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MFI
JWS ORIX RCDP Agahe AMRDO
Average outstanding loan balance / per capita income
13.2% 12.8% 12.8% 9.2% 8.8%
Proportion of active women depositors (%)
- - - - -
Average saving balance per active depositor (PKR)
- - - - -
Active deposit account balance (PKR)
- - - - -
MFI
OPD SAATH SRDO SVDP VDO
Active borrowers 6,094 5,917 3,637 6,314 1,748
Active women borrowers
3,269 3,009 1,780 2,455 1,020
Gross loan portfolio (PKR 000)
90,843 128,934 95,678 148,190 15,524
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
6,094 5,917 3,637 6,314 1,748
Depositors - - - - -
Number of deposit accounts
- - - - -
Number of women depositors
- - - - -
Deposits outstanding (PKR 000)
- - - - -
Proportion of active women borrowers (%)
53.6% 50.9% 48.9% 38.9% 58.4%
Average loan balance per active borrower (PKR)
14,907 21,790 26,307 23,470 8,881
Average loan balance per active borrower/per capita income
9.7% 14.2% 17.2% 15.3% 5.8%
Average outstanding loan balance (PKR)
14,907 21,790 26,307 23,470 8,881
Average outstanding loan balance / per capita income
9.7% 14.2% 17.2% 15.3% 5.8%
Proportion of active women depositors (%)
- - - - -
Average saving balance per active depositor (PKR)
- - - - -
Active deposit account balance (PKR)
- - - - -
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MFI
Akhuwat OSDI Sub
Active borrowers 567,761 330 1,551,481
Active women borrowers
238,460 2 1,129,587
Gross loan portfolio (PKR 000)
8,063,573 11,407 26,954,961
Annual per capita income (PKR)*
153,060 153,060 153,060
Number of loans outstanding
567,761 330 1,551,481
Depositors - - -
Number of deposit accounts
- - -
Number of women depositors
- - -
Deposits outstanding (PKR 000)
- - -
Weighted Avg.
Proportion of active women borrowers (%)
42.0% 0.6% 72.8%
Average loan balance per active borrower (PKR)
14,202 34,567 17,374
Average loan balance per active borrower/per capita income
9.3% 22.6% 11%
Average outstanding loan balance (PKR)
14,202 34,567 17,374
Average outstanding loan balance / per capita income
9.3% 22.6% 11%
Proportion of active women depositors (%)
- - -
Average saving balance per active depositor (PKR)
- - -
Active deposit account balance (PKR)
- - -
RSP
NRSP PRSP TMF SRSO Sub
Active borrowers 649,682 58,890 110,055 72,761 891,388
Active women borrowers
526,364 28,690 79,202 63,650 697,906
Gross loan portfolio (PKR 000)
11,960,308 1,080,378 1,603,839 1,351,175 15,995,700
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060 153,060
Number of loans outstanding
649,682 58,890 110,055 72,761 891,388
Depositors - - - - -
Number of deposit accounts
- - - - -
Number of women depositors
- - - - -
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RSP
NRSP PRSP TMF SRSO Sub
Deposits outstanding (PKR 000)
- - - - -
Weighted Avg.
Proportion of active women borrowers (%)
81.0% 48.7% 72.0% 87.5% 78.3%
Average loan balance per active borrower (PKR)
18,409 18,346 14,573 18,570 17,945
Average loan balance per active borrower/per capita income
12% 12% 10% 12% 12%
Average outstanding loan balance (PKR)
18,409 18,346 14,573 18,570 17,945
Average outstanding loan balance / per capita income
12.0% 12.0% 10% 12.1% 11.7%
Proportion of active women depositors (%)
- - - - -
Average saving balance per active depositor (PKR)
- - - - -
Active deposit account balance (PKR)
- - - - -
Sub MFB Sub MFI Sub RSP Total
Active borrowers 1,783,099 1,551,481 891,388 4,225,968
Active women borrowers
445,896 1,129,587 697,906 2,273,389
Gross loan portfolio (PKR 000)
89,052,391 26,954,961 15,995,700 132,003,052
Annual per capita income (PKR)*
153,060 153,060 153,060 153,060
Number of loans outstanding
1,784,448 1,551,481 891,388 4,227,317
Depositors 15,937,079 - - 15,937,079
Number of deposit accounts
15,937,079 - - 15,937,079
Number of women depositors
142,784 - - 142,784
Deposits outstanding (PKR 000)
118,096,732 - - 118,096,732
Weighted Avg. Weighted Avg. Weighted Avg. Weighted Avg.
Proportion of active women borrowers (%)
25.0% 72.8% 78.3% 53.8%
Average loan balance per active borrower (PKR)
49,942 17,374 17,945 31,236
Average loan balance per active borrower/per capita income
32.6% 11% 12% 20.4%
Average outstanding loan balance (PKR)
49,905 17,374 17,945 31,226
Average outstanding loan balance / per capita income
32.6% 11% 11.7% 20.4%
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Sub MFB Sub MFI Sub RSP Total
Proportion of active women depositors (%)
0.9% - - 0.90%
Average saving balance per active depositor (PKR)
7,410 - - 7,410
Active deposit account balance (PKR)
7,410 - - 7,410
Financial Performance in PKR 000MFB
KBL TMFB FMFB NRSP-B FINCA
Income from loan portfolio
6,493,876 5,500,627 2,217,401 3,543,641 3,324,590
Income from investments
371,841 516,367 421,632 147,258 102,855
Income from other sources
179,152 122,830 11,791 223,651 110,194
Total revenue 7,044,869 6,139,824 2,650,824 3,914,550 3,537,639
Less : financial expense
1,807,109 1,113,495 580,886 1,239,768 647,593
Gross financial margin
5,237,760 5,026,329 2,069,938 2,674,782 2,890,047
Less: loan loss provision expense
684,807 103,555 15,612 155,329 219,211
Net financial margin 4,552,953 4,922,774 2,054,326 2,519,453 2,670,836
Personnel expense 1,340,023 1,670,412 835,550 891,854 848,857
Admin expense 1,415,892 1,814,795 724,387 666,912 820,903
Less: operating expense
2,755,914 3,485,207 1,559,937 1,558,766 1,669,761
Other Non operating expense
17,957 68,282 2,574 188 13,480
Net income before tax
1,779,082 1,369,285 491,815 960,499 987,595
Provision for tax 506,348 473,931 175,556 275,711 356,700
Net income/(loss) 1,272,734 895,354 316,259 684,787 630,896
Adjusted Financial Expense on Borrowings
- - - - -
Inflation Adjustment Expense
0 110 42 84 46
Adjusted Loan Loss Provision Expense
- - - - -
Total Adjustment Expense
0 110 42 84 46
Net Income/(Loss) After Adjustments
1,272,734 895,244 316,217 684,704 630,849
Average total assets 30,234,912 28,680,884 14,532,784 20,372,307 12,034,942
Average total equity 4,444,293 4,137,596 2,687,455 2,874,116 2,183,044
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MFB
KBL TMFB FMFB NRSP-B FINCA
Adjusted return-on-assets
4.2% 3.1% 2.2% 3.4% 5.2%
Adjusted return-on-equity
28.6% 21.6% 11.8% 23.8% 28.9%
Financial expense ratio
8.9% 7.9% 8.3% 11.1% 8.3%
Operational self sufficiency (OSS)
133.8% 128.7% 122.8% 132.5% 138.7%
Financial self sufficiency (FSS)
133.8% 128.7% 122.8% 132.5% 138.7%
MFB
AMFB MMFB U-Bank ADVANS Sub
Income from loan portfolio
1,329,051 1,699,396 1,181,055 96,212 25,385,849
Income from investments
173,923 245,530 182,882 - 2,162,290
Income from other sources
51,427 3,660 6,531 6,541 715,776
Total revenue 1,554,400 1,948,586 1,370,468 102,754 28,263,914
Less : financial expense
671,551 255,330 428,308 830 6,744,870
Gross financial margin
882,849 1,693,256 942,160 101,924 21,519,044
Less: loan loss provision expense
845,921 67,611 44,490 12,772 2,149,307
Net financial margin 36,928 1,625,645 897,670 89,152 19,369,738
Personnel expense 644,650 598,679 439,096 90,602 7,359,723
Admin expense 462,604 688,503 362,846 153,114 7,109,956
Less: operating expense
1,107,253 1,287,181 801,942 243,716 14,469,679
Other Non operating expense
27,253 3,629 2,066 2,898 138,327
Net income before tax
(1,097,578) 334,835 93,661 (157,462) 4,761,732
Provision for tax (362,054) 104,077 21,309 48,425 1,600,002
Net income/(loss) (735,524) 230,758 72,353 (205,887) 3,161,730
Adjusted Financial Expense on Borrowings
- - - - -
Inflation Adjustment Expense
(10) 28 33 16 349
Adjusted Loan Loss Provision Expense
- - - - -
Total Adjustment Expense
(10) 28 33 16 349
Net Income/(Loss) After Adjustments
(735,514) 230,729 72,320 (205,903) 3,161,381
Average total assets 3,714,717 9,562,207 6,431,319 623,601 126,187,673
Average total equity 798,816 1,115,414 1,085,261 550,871 19,876,866
weighted avg.
Adjusted return-on-assets
-19.8% 2.4% 1.1% -33.0% 2.5%
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AMFB MMFB U-Bank ADVANS Sub
Adjusted return-on-equity
-92.1% 20.7% 6.7% -37.4% 15.9%
Financial expense ratio
15.0% 7.0% 13.2% 0.4% 9.4%
Operational self sufficiency (OSS)
58.6% 120.7% 107.3% 39.5% 120.3%
Financial self sufficiency (FSS)
58.6% 120.7% 107.3% 39.5% 120.3%
MFI
OCT KASHF Safco DAMEN CSC
Income from loan portfolio
107,904 1,957,475 215,546 455,625 171,799
Income from investments
11,508 128,607 18,290 24,909 18,144
Income from other sources
5,086 262,504 17,378 3,301 16,301
Total revenue 124,499 2,348,586 251,214 483,835 206,244
Less : financial expense
36,987 562,273 48,904 102,817 36,840
Gross financial margin
87,512 1,786,313 202,310 381,019 169,404
Less: loan loss provision expense
34,011 (25,327) 14,764 15,338 6,463
Net financial margin 53,501 1,811,640 187,546 365,680 162,941
Personnel expense 24,916 689,726 73,066 106,809 66,821
Admin expense 13,384 189,296 47,303 87,136 58,278
Less: operating expense
38,300 879,022 120,369 193,944 125,099
Other Non operating expense
7,609 190,941 - 27,556 5,049
Net income before tax
7,592 741,677 67,178 144,180 32,793
Provision for tax - - - - 4,391
Net income/(loss) 7,592 741,677 67,178 144,180 28,403
Adjusted Financial Expense on Borrowings
- - - - -
Inflation Adjustment Expense
12 13 4 12 3
Adjusted Loan Loss Provision Expense
167,057 4,326 - - -
Total Adjustment Expense
167,069 4,338 4 12 3
Net Income/(Loss) After Adjustments
(159,477) 737,339 67,173 144,168 28,400
Average total assets 764,883 7,190,410 986,827 1,608,334 770,778
Average total equity 336,688 1,163,398 286,788 379,365 159,025
Adjusted return-on-assets
-20.8% 10.3% 6.8% 9.0% 3.7%
Adjusted return-on-equity
47.4% 63.4% 23.4% 38.0% 17.9%
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MFI
OCT KASHF Safco DAMEN CSC
Financial expense ratio
0.1% 12.3% 7.5% 8.6% 9.2%
Operational self sufficiency (OSS)
106.5% 146.2% 136.5% 142.4% 118.9%
Financial self sufficiency (FSS)
43.8% 145.8% 136.5% 142.4% 118.9%
MFI
GBTI FFO ASA-P MO BRAC-P
Income from loan portfolio
37,370 113,590 1,987,001 27,616 544,179
Income from investments
39,608 3,137 15,416 2,089 140
Income from other sources
73,977 3,856 5,966 6,654 561,682
Total revenue 150,956 120,583 2,008,383 36,360 1,106,001
Less : financial expense
11,218 30,096 184,724 10,243 67,936
Gross financial margin
139,738 90,486 1,823,659 26,116 1,038,066
Less: loan loss provision expense
- 7,127 48,580 (1,123) 26,705
Net financial margin 139,738 83,359 1,775,079 27,239 1,011,361
Personnel expense 26,380 36,059 443,737 9,246 425,642
Admin expense 11,538 29,505 154,971 8,820 525,286
Less: operating expense
37,917 65,564 598,708 18,066 950,928
Other Non operating expense
62,478 1,420 74,060 3,623 457
Net income before tax
39,343 16,375 1,102,311 5,551 59,976
Provision for tax - - 360,984 - 11,837
Net income/(loss) 39,343 16,375 741,327 5,551 48,139
Adjusted Financial Expense on Borrowings
- - 185 4,818 -
Inflation Adjustment Expense
14 1 53 (1) 5
Adjusted Loan Loss Provision Expense
- - - - -
Total Adjustment Expense
14 1 239 4,817 5
Net Income/(Loss) After Adjustments
39,328 16,375 741,089 734 48,134
Average total assets 557,945 524,943 5,138,196 125,184 1,519,718
Average total equity 382,673 34,950 1,419,123 44,542 167,617
Adjusted return-on-assets
7.0% 3.1% 14.4% 0.6% 3.2%
Adjusted return-on-equity
10.3% 46.9% 52.2% 1.6% -28.7%
Financial expense ratio
7.2% 8.2% 3.9% 11.5% 4.8%
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GBTI FFO ASA-P MO BRAC-P
Operational self sufficiency (OSS)
135.2% 115.7% 221.7% 118.0% 105.7%
Financial self sufficiency (FSS)
135.2% 115.7% 221.6% 102.1% 105.7%
MFI
JWS ORIX RCDP Agahe AMRDO
Income from loan portfolio
76,667 150,348 129,224 46,255 48,150
Income from investments
2,943 - 3,483 3,081 3,505
Income from other sources
604 382 71,287 8,161 13,008
Total revenue 80,214 150,731 203,994 57,498 64,663
Less : financial expense
13,747 16,515 28,852 8,458 11,785
Gross financial margin
66,467 134,216 175,141 49,039 52,878
Less: loan loss provision expense
1,303 2,496 9,401 2,017 (1,968)
Net financial margin 65,164 131,720 165,740 47,023 54,846
Personnel expense 26,061 34,969 35,237 24,553 26,085
Admin expense 14,958 31,908 25,634 16,807 12,485
Less: operating expense
41,019 66,877 60,870 41,361 38,570
Other Non operating expense
3,544 - - - -
Net income before tax
20,601 64,844 104,870 5,662 16,275
Provision for tax - - - - -
Net income/(loss) 20,601 64,844 104,870 5,662 16,275
Adjusted Financial Expense on Borrowings
10,287 - 28,142 2,187 1,366
Inflation Adjustment Expense
10 4 17 1 1
Adjusted Loan Loss Provision Expense
- - - - (1,968)
Total Adjustment Expense
10,297 4 28,159 2,187 (601)
Net Income/(Loss) After Adjustments
10,304 64,840 76,711 3,475 16,876
Average total assets 919,283 435,281 1,471,027 227,728 267,391
Average total equity 276,358 137,668 509,082 47,847 39,476
Adjusted return-on-assets
1.1% 14.9% 5.2% 1.5% 6.3%
Adjusted return-on-equity
3.7% 47.1% 15.1% 7.3% 42.8%
Financial expense ratio
1.9% 4.0% 2.4% 5.0% 6.7%
Operational self sufficiency (OSS)
134.6% 175.5% 205.8% 110.9% 133.6%
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JWS ORIX RCDP Agahe AMRDO
Financial self sufficiency (FSS)
114.7% 175.5% 160.3% 106.4% 135.3%
MFI
OPD SAATH SRDO SVDP VDO
Income from loan portfolio
31,493 41,057 21,394 45,819 3,764
Income from investments
2,476 1,715 860 2,719 1,334
Income from other sources
357 869 980 25,266 1,270
Total revenue 34,327 43,640 23,234 73,804 6,369
Less : financial expense
7,876 9,890 7,052 13,059 1,036
Gross financial margin
26,451 33,750 16,181 60,745 5,333
Less: loan loss provision expense
2,868 1,998 1,902 2,156 (383)
Net financial margin 23,582 31,752 14,279 58,589 5,716
Personnel expense 13,778 4,825 5,083 21,323 2,049
Admin expense 8,570 6,865 5,655 8,125 1,728
Less: operating expense
22,348 11,690 10,738 29,448 3,777
Other Non operating expense
1,088 510 - 74 -
Net income before tax
147 19,553 3,541 29,068 1,939
Provision for tax - - - - 341
Net income/(loss) 147 19,553 3,541 29,068 1,598
Adjusted Financial Expense on Borrowings
- - - - -
Inflation Adjustment Expense
0 0 0 1 1
Adjusted Loan Loss Provision Expense
- - - - -
Total Adjustment Expense
0 0 0 1 1
Net Income/(Loss) After Adjustments
147 19,553 3,541 29,066 1,597
Average total assets 145,416 165,756 137,955 196,961 46,485
Average total equity 5,340 20,364 22,657 46,947 24,533
Adjusted return-on-assets
0.1% 11.8% 2.6% 14.8% 3.4%
Adjusted return-on-equity
2.7% 96.0% 15.6% 61.9% 6.5%
Financial expense ratio
9.1% 8.9% 7.8% 9.4% 5.4%
Operational self sufficiency (OSS)
100.4% 181.2% 118.0% 165.0% 143.8%
Financial self sufficiency (FSS)
100.4% 181.2% 118.0% 165.0% 143.7%
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Akhuwat OSDI Sub
Income from loan portfolio
824,058 - 7,036,334
Income from investments
45,629 - 329,594
Income from other sources
531,085 20,211 1,630,187
Total revenue 1,400,771 20,211 8,996,115
Less : financial expense
- 59 1,210,366
Gross financial margin
1,400,771 20,152 7,785,748
Less: loan loss provision expense
38,844 - 187,172
Net financial margin 1,361,927 20,152 7,598,576
Personnel expense 568,823 18,462 2,683,648
Admin expense 185,645 18,057 1,461,952
Less: operating expense
754,468 36,518 4,145,600
Other Non operating expense
241,790 - 620,198
Net income before tax
365,670 (16,367) 2,832,778
Provision for tax - - 377,553
Net income/(loss) 365,670 (16,367) 2,455,225
Adjusted Financial Expense on Borrowings
444,943 - 491,926
Inflation Adjustment Expense
28 1 181
Adjusted Loan Loss Provision Expense
- 5,336 174,752
Total Adjustment Expense
444,971 5,338 666,859
Net Income/(Loss) After Adjustments
(79,302) (21,704) 1,788,366
Average total assets 8,512,448 31,631 31,744,580
Average total equity 1,219,996 31,223 6,755,660
weighted avg.
Adjusted return-on-assets
-0.9% -68.6% 5.6%
Adjusted return-on-equity
-6.5% -69.5% 26.5%
Financial expense ratio
0.0% 0.0% 5.1%
Operational self sufficiency (OSS)
135.3% 55.3% 146.0%
Financial self sufficiency (FSS)
94.6% 48.2% 131.7%
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RSP
NRSP PRSP TMF SRSO Sub
Income from loan portfolio
3,166,610 285,982 404,018 303,348 4,159,958
Income from investments
145,780 50,507 15,981 12,780 225,048
Income from other sources
45,035 20,400 17,558 42,376 125,369
Total revenue 3,357,425 356,889 437,557 358,504 4,510,375
Less : financial expense
732,121 78,731 114,516 83,312 1,008,680
Gross financial margin
2,625,304 278,158 323,041 275,192 3,501,695
Less: loan loss provision expense
115,381 (1,316) 10,729 43,161 167,955
Net financial margin 2,509,923 279,474 312,312 232,031 3,333,740
Personnel expense 1,185,258 81,757 156,942 108,643 1,532,600
Admin expense 368,786 35,159 53,087 48,025 505,058
Less: operating expense
1,554,044 116,916 210,029 156,668 2,037,658
Other Non operating expense
- 6,901 7,514 14,415
Net income before tax
955,879 162,558 95,382 67,849 1,281,667
Provision for tax - - - - -
Net income/(loss) 955,879 162,558 95,382 67,849 1,281,667
Adjusted Financial Expense on Borrowings
- - - - -
Inflation Adjustment Expense
132 46 19 (5) 191
Adjusted Loan Loss Provision Expense
- - 34,973 111,464 146,437
Total Adjustment Expense
132 46 34,993 111,458 146,628
Net Income/(Loss) After Adjustments
955,747 162,512 60,390 (43,609) 1,135,039
Average total assets 14,211,721 2,847,369 1,907,613 1,165,662 20,132,365
Average total equity 3,933,562 1,164,765 601,400 (92,065) 5,607,662
weighted avg.
Adjusted return-on-assets
6.7% 5.7% 3.2% -3.7% 5.6%
Adjusted return-on-equity
24.3% 14.0% 10.0% 47.4% 20.2%
Financial expense ratio
6.6% 6.4% 7.7% 6.6% 6.7%
Operational self sufficiency (OSS)
139.8% 183.6% 127.9% 123.3% 139.7%
Financial self sufficiency (FSS)
139.8% 183.6% 116.0% 89.2% 133.6%
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Sub MFB Sub MFI Sub RSP Total
Income from loan portfolio
25,385,849 7,036,334 4,159,958 36,582,140
Income from investments
2,162,290 329,594 225,048 2,716,932
Income from other sources
715,776 1,630,187 125,369 2,471,332
Total revenue 28,263,914 8,996,115 4,510,375 41,770,404
Less : financial expense
6,744,870 1,210,366 1,008,680 8,963,917
Gross financial margin
21,519,044 7,785,748 3,501,695 32,806,487
Less: loan loss provision expense
2,149,307 187,172 167,955 2,504,433
Net financial margin 19,369,738 7,598,576 3,333,740 30,302,054
Personnel expense 7,359,723 2,683,648 1,532,600 11,575,971
Admin expense 7,109,956 1,461,952 505,058 9,076,966
Less: operating expense
14,469,679 4,145,600 2,037,658 20,652,937
Other Non operating expense
138,327 620,198 14,415 772,940
Net income before tax
4,761,732 2,832,778 1,281,667 8,876,178
Provision for tax 1,600,002 377,553 - 1,977,555
Net income/(loss) 3,161,730 2,455,225 1,281,667 6,898,623
Adjusted Financial Expense on Borrowings
- 491,926 - 491,926
Inflation Adjustment Expense
349 181 191 722
Adjusted Loan Loss Provision Expense
- 174,752 146,437 321,188
Total Adjustment Expense
349 666,859 146,628 813,837
Net Income/(Loss) After Adjustments
3,161,381 1,788,366 1,135,039 6,084,786
Average total assets 126,187,673 31,744,580 20,132,365 178,064,618
Average total equity 19,876,866 6,755,660 5,607,662 32,240,189
weighted avg. weighted avg. weighted avg. weighted avg.
Adjusted return-on-assets
2.5% 5.6% 5.6% 3.4%
Adjusted return-on-equity
15.9% 26.5% 20.2% 18.9%
Financial expense ratio
9.4% 5.1% 6.7% 8.1%
Operational self sufficiency (OSS)
120.3% 146.0% 139.7% 127.0%
Financial self sufficiency (FSS)
120.3% 131.7% 133.6% 123.9%
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Operating Income in PKR 000MFB
KBL TMFB FMFB NRSP-B FINCA
Revenue from loan portfolio
6,493,876 5,500,627 2,217,401 3,543,641 3,324,590
Total revenue 7,044,869 6,139,824 2,650,824 3,914,550 3,537,639
Adjusted net operating income / (loss)
1,272,734 895,244 316,217 684,704 630,849
Average total assets 30,234,912 28,680,884 14,532,784 20,372,307 12,034,942
Gross loan portfolio (opening balance)
17,466,883 12,186,090 5,639,743 9,085,508 5,478,758
Gross loan portfolio (closing balance)
23,308,981 15,945,319 8,273,926 13,271,040 10,209,129
Average gross loan portfolio
20,387,932 14,065,704 6,956,835 11,178,274 7,843,943
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
Total revenue ratio (total revenue-to-average total assets)
23.3% 21.4% 18.2% 19.2% 29.4%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
18.1% 14.6% 11.9% 17.5% 17.8%
Yield on gross portfolio (nominal)
31.9% 39.1% 31.9% 31.7% 42.4%
Yield on gross portfolio (real)
27.1% 34.1% 27.2% 27.0% 37.3%
MFB
AMFB MMFB U-Bank ADVANS Sub
Revenue from loan portfolio
1,329,051 1,699,396 1,181,055 96,212 25,385,849
Total revenue 1,554,400 1,948,586 1,370,468 102,754 28,263,914
Adjusted net operating income / (loss)
(735,514) 230,729 72,320 (205,903) 3,161,381
Average total assets 3,714,717 9,562,207 6,431,319 623,601 126,187,673
Gross loan portfolio (opening balance)
2,654,416 1,350,107 919,381 205,347 54,986,234
Gross loan portfolio (closing balance)
6,320,692 5,933,962 5,576,802 212,539 89,052,391
Average gross loan portfolio
4,487,554 3,642,034 3,248,092 208,943 72,019,312
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
weighted avg.
Total revenue ratio (total revenue-to-average total assets)
41.8% 20.4% 21.3% 16.5% 22.4%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
-47.3% 11.8% 5.3% -200.4% 11.2%
Yield on gross portfolio (nominal)
29.6% 46.7% 36.4% 46.0% 35.2%
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AMFB MMFB U-Bank ADVANS Sub
Yield on gross portfolio (real)
25.0% 41.4% 31.5% 40.8% 30.4%
MFI
OCT KASHF SAFCO DAMEN CSC
Revenue from loan portfolio
107,904 1,957,475 215,546 455,625 171,799
Total revenue 124,499 2,348,586 251,214 483,835 206,244
Adjusted net operating income / (loss)
(159,477) 737,339 67,173 144,168 28,400
Average total assets 764,883 7,190,410 986,827 1,608,334 770,778
Gross loan portfolio (opening balance)
561,424 4,553,709 539,095 1,145,587 321,162
Gross loan portfolio (closing balance)
594,625 4,562,209 765,014 1,251,104 483,208
Average gross loan portfolio
578,025 4,557,959 652,055 1,198,346 402,185
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
Total revenue ratio (total revenue-to-average total assets)
16.3% 32.7% 25.5% 30.1% 26.8%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
-128.1% 31.4% 26.7% 29.8% 13.8%
Yield on gross portfolio (nominal)
18.7% 42.9% 33.1% 38.0% 42.7%
Yield on gross portfolio (real)
14.4% 37.8% 28.3% 33.1% 37.6%
MFI
GBTI FFO ASA-P MO BRAC-P
Revenue from loan portfolio
37,370 113,590 1,987,001 27,616 544,179
Total revenue 150,956 120,583 2,008,383 36,360 1,106,001
Adjusted net operating income / (loss)
39,328 16,375 741,089 734 48,134
Average total assets 557,945 524,943 5,138,196 125,184 1,519,718
Gross loan portfolio (opening balance)
117,912 369,025 3,818,570 97,050 1,312,220
Gross loan portfolio (closing balance)
192,672 369,319 5,654,742 80,870 1,505,789
Average gross loan portfolio
155,292 369,172 4,736,656 88,960 1,409,005
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
Total revenue ratio (total revenue-to-average total assets)
27.1% 23.0% 39.1% 29.0% 72.8%
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GBTI FFO ASA-P MO BRAC-P
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
26.1% 13.6% 36.9% 2.0% 4.4%
Yield on gross portfolio (nominal)
24.1% 30.8% 41.9% 31.0% 38.6%
Yield on gross portfolio (real)
19.6% 26.1% 36.9% 26.4% 33.7%
MFI
JWS ORIX RCDP Agahe AMRDO
Revenue from loan portfolio
76,667 150,348 129,224 46,255 48,150
Total revenue 80,214 150,731 203,994 57,498 64,663
Adjusted net operating income / (loss)
10,304 64,840 76,711 3,475 16,876
Average total assets 919,283 435,281 1,471,027 227,728 267,391
Gross loan portfolio (opening balance)
717,862 390,754 1,008,196 134,892 175,850
Gross loan portfolio (closing balance)
718,859 444,451 1,402,610 201,154 174,186
Average gross loan portfolio
718,361 417,603 1,205,403 168,023 175,018
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
Total revenue ratio (total revenue-to-average total assets)
8.7% 34.6% 13.9% 25.2% 24.2%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
12.8% 43.0% 37.6% 6.0% 26.1%
Yield on gross portfolio (nominal)
10.7% 36.0% 10.7% 27.5% 27.5%
Yield on gross portfolio (real)
6.7% 31.2% 6.8% 23.0% 23.0%
MFI
OPD SAATH SRDO SVDP VDO
Revenue from loan portfolio
31,493 41,057 21,394 45,819 3,764
Total revenue 34,327 43,640 23,234 73,804 6,369
Adjusted net operating income / (loss)
147 19,553 3,541 29,066 1,597
Average total assets 145,416 165,756 137,955 196,961 46,485
Gross loan portfolio (opening balance)
83,130 94,134 85,467 130,950 23,179
Gross loan portfolio (closing balance)
90,843 128,934 95,678 148,190 15,524
Average gross loan portfolio
86,986 111,534 90,573 139,570 19,351
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
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OPD SAATH SRDO SVDP VDO
Total revenue ratio (total revenue-to-average total assets)
23.6% 26.3% 16.8% 37.5% 13.7%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
0.4% 44.8% 15.2% 39.4% 25.1%
Yield on gross portfolio (nominal)
36.2% 36.8% 23.6% 32.8% 19.5%
Yield on gross portfolio (real)
31.3% 31.9% 19.2% 28.1% 15.2%
MFI
Akhuwat OSDI Sub
Revenue from loan portfolio
824,058 - 7,036,334
Total revenue 1,400,771 20,211 8,996,115
Adjusted net operating income / (loss)
(79,302) (21,704) 1,788,366
Average total assets 8,512,448 31,631 31,744,580
Gross loan portfolio (opening balance)
4,830,627 19,676 20,530,473
Gross loan portfolio (closing balance)
8,063,573 11,407 26,954,961
Average gross loan portfolio
6,447,100 15,542 23,742,717
Inflation rate * 3.7% 3.7% 3.7%
weighted avg.
Total revenue ratio (total revenue-to-average total assets)
16.5% 63.9% 28.3%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
-5.7% -107.4% 19.9%
Yield on gross portfolio (nominal)
12.8% 0.0% 29.6%
Yield on gross portfolio (real)
8.8% -3.6% 25.0%
RSP
NRSP PRSP TMF SRSO Sub
Revenue from loan portfolio
3,166,610 285,982 404,018 303,348 4,159,958
Total revenue 3,357,425 356,889 437,557 358,504 4,510,375
Adjusted net operating income / (loss)
955,747 162,512 60,390 (43,609) 1,135,039
Average total assets 14,211,721 2,847,369 1,907,613 1,165,662 20,132,365
Gross loan portfolio (opening balance)
10,098,401 1,361,739 1,363,045 1,188,422 14,011,607
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RSP
NRSP PRSP TMF SRSO Sub
Gross loan portfolio (closing balance)
11,960,308 1,080,378 1,603,839 1,351,175 15,995,700
Average gross loan portfolio
11,029,354 1,221,059 1,483,442 1,269,799 15,003,653
Inflation rate * 3.7% 3.7% 3.7% 3.7% 3.7%
weighted avg.
Total revenue ratio (total revenue-to-average total assets)
23.6% 12.5% 22.9% 30.8% 22.4%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
28.5% 45.5% 13.8% -12.2% 25.2%
Yield on gross portfolio (nominal)
28.7% 23.4% 27.2% 23.9% 27.7%
Yield on gross portfolio (real)
24.1% 19.0% 22.7% 19.5% 23.2%
Sub MFB Sub MFI Sub RSP Total
Revenue from loan portfolio
25,385,849 7,036,334 4,159,958 36,582,140
Total revenue 28,263,914 8,996,115 4,510,375 41,770,404
Adjusted net operating income / (loss)
3,161,381 1,788,366 1,135,039 6,084,786
Average total assets 126,187,673 31,744,580 20,132,365 178,064,618
Gross loan portfolio (opening balance)
54,986,234 20,530,473 14,011,607 89,528,314
Gross loan portfolio (closing balance)
89,052,391 26,954,961 15,995,700 132,003,052
Average gross loan portfolio
72,019,312 23,742,717 15,003,653 110,765,683
Inflation rate * 3.7% 3.7% 3.7% 3.7%
weighted avg. weighted avg. weighted avg. weighted avg.
Total revenue ratio (total revenue-to-average total assets)
22.4% 28.3% 22.4% 23.5%
Adjusted profit margin (adjusted profit/(loss)-to-total revenue)
11.2% 19.9% 25.2% 14.6%
Yield on gross portfolio (nominal)
35.2% 29.6% 27.7% 33.0%
Yield on gross portfolio (real)
30.4% 25.0% 23.2% 28.3%
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Operating Expense in PKR 000MFB
KBL TMFB FMFB NRSP-B FINCA
Adjusted total expense
5,265,787 4,770,539 2,159,009 2,954,051 2,550,044
Adjusted financial expense
1,807,109 1,113,495 580,886 1,239,768 647,593
Adjusted loan loss provision expense
684,807 103,555 15,612 155,329 219,211
Operating expense 2,773,871 3,553,489 1,562,511 1,558,954 1,683,241
Adjustment expense 0 110 42 84 46
Average total assets 30,234,912 28,680,884 14,532,784 20,372,307 12,034,942
Adjusted total expense-to-average total assets
17.4% 16.6% 14.9% 14.5% 21.2%
Adjusted financial expense-to-average total assets
6.0% 3.9% 4.0% 6.1% 5.4%
Adjusted loan loss provision expense-to-average total assets
2.3% 0.4% 0.1% 0.8% 1.8%
Adjusted operating expense-to-average total assets
9.2% 12.4% 10.8% 7.7% 14.0%
Adjusted personnel expense
4.4% 5.8% 5.7% 4.4% 7.1%
Adjusted admin expense
4.7% 6.3% 5.0% 3.3% 6.8%
Adjustment expense-to-average total assets
0.0% 0.0% 0.0% 0.0% 0.0%
MFB
AMFB MMFB U-Bank ADVANS Sub
Adjusted total expense
2,651,978 1,613,751 1,276,807 260,216 23,502,182
Adjusted financial expense
671,551 255,330 428,308 830 6,744,870
Adjusted loan loss provision expense
845,921 67,611 44,490 12,772 2,149,307
Operating expense 1,134,506 1,290,810 804,009 246,614 14,608,005
Adjustment expense (10) 28 33 16 349
Average total assets 3,714,717 9,562,207 6,431,319 623,601 126,187,673
Weighted avg.
Adjusted total expense-to-average total assets
71.4% 16.9% 19.9% 41.7% 18.6%
Adjusted financial expense-to-average total assets
18.1% 2.7% 6.7% 0.1% 5.3%
Adjusted loan loss provision expense-to-average total assets
22.8% 0.7% 0.7% 2.0% 1.7%
Adjusted operating expense-to-average total assets
30.5% 13.5% 12.5% 39.5% 11.6%
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MFB
AMFB MMFB U-Bank ADVANS Sub
Adjusted personnel expense
17.4% 6.3% 6.8% 14.5% 5.8%
Adjusted admin expense
12.5% 7.2% 5.6% 24.6% 5.6%
Adjustment expense-to-average total assets
0.0% 0.0% 0.0% 0.0% 0.0%
MFI
OCT KASHF SAFCO DAMEN CSC
Adjusted total expense
283,964 1,611,235 184,036 339,655 173,451
Adjusted financial expense
36,987 562,273 48,904 102,817 36,840
Adjusted loan loss provision expense
201,068 (21,001) 14,764 15,338 6,463
Operating expense 45,909 1,069,963 120,369 221,500 130,148
Adjustment expense 167,069 4,338 4 12 3
Average total assets 764,883 7,190,410 986,827 1,608,334 770,778
Adjusted total expense-to-average total assets
37.1% 22.4% 18.6% 21.1% 22.5%
Adjusted financial expense-to-average total assets
4.8% 7.8% 5.0% 6.4% 4.8%
Adjusted loan loss provision expense-to-average total assets
26.3% -0.3% 1.5% 1.0% 0.8%
Adjusted operating expense-to-average total assets
6.0% 14.9% 12.2% 13.8% 16.9%
Adjusted personnel expense
3.3% 9.6% 7.4% 6.6% 8.7%
Adjusted admin expense
1.7% 2.6% 4.8% 5.4% 7.6%
Adjustment expense-to-average total assets
21.8% 0.1% 0.0% 0.0% 0.0%
MFI
GBTI FFO ASA-P MO BRAC-P
Adjusted total expense
111,613 104,207 906,257 35,626 1,046,025
Adjusted financial expense
11,218 30,096 184,909 15,061 67,936
Adjusted loan loss provision expense
- 7,127 48,580 (1,123) 26,705
Operating expense 100,395 66,984 672,768 21,688 951,385
Adjustment expense 14 1 239 4,817 5
Average total assets 557,945 524,943 5,138,196 125,184 1,519,718
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MFI
GBTI FFO ASA-P MO BRAC-P
Adjusted total expense-to-average total assets
20.0% 19.9% 17.6% 28.5% 68.8%
Adjusted financial expense-to-average total assets
2.0% 5.7% 3.6% 12.0% 4.5%
Adjusted loan loss provision expense-to-average total assets
0.0% 1.4% 0.9% -0.9% 1.8%
Adjusted operating expense-to-average total assets
18.0% 12.8% 13.1% 17.3% 62.6%
Adjusted personnel expense
4.7% 6.9% 8.6% 7.4% 28.0%
Adjusted admin expense
2.1% 5.6% 3.0% 7.0% 34.6%
Adjustment expense-to-average total assets
0.0% 0.0% 0.0% 3.8% 0.0%
MFI
JWS ORIX RCDP Agahe AMRDO
Adjusted total expense
69,900 85,887 127,265 54,022 47,786
Adjusted financial expense
24,033 16,515 56,994 10,645 13,150
Adjusted loan loss provision expense
1,303 2,496 9,401 2,017 (3,935)
Operating expense 44,563 66,877 60,870 41,361 38,570
Adjustment expense 10,297 4 28,159 2,187 (601)
Average total assets 919,283 435,281 1,471,027 227,728 267,391
Adjusted total expense-to-average total assets
7.6% 19.7% 8.7% 23.7% 17.9%
Adjusted financial expense-to-average total assets
2.6% 3.8% 3.9% 4.7% 4.9%
Adjusted loan loss provision expense-to-average total assets
0.1% 0.6% 0.6% 0.9% -1.5%
Adjusted operating expense-to-average total assets
4.8% 15.4% 4.1% 18.2% 14.4%
Adjusted personnel expense
2.8% 8.0% 2.4% 10.8% 9.8%
Adjusted admin expense
1.6% 7.3% 1.7% 7.4% 4.7%
Adjustment expense-to-average total assets
1.1% 0.0% 1.9% 1.0% -0.2%
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MFI
OPD SAATH SRDO SVDP VDO
Adjusted total expense
34,180 24,087 19,692 44,736 4,430
Adjusted financial expense
7,876 9,890 7,052 13,059 1,036
Adjusted loan loss provision expense
2,868 1,998 1,902 2,156 (383)
Operating expense 23,435 12,199 10,738 29,522 3,777
Adjustment expense 0 0 0 1 1
Average total assets 145,416 165,756 137,955 196,961 46,485
Adjusted total expense-to-average total assets
23.5% 14.5% 14.3% 22.7% 9.5%
Adjusted financial expense-to-average total assets
5.4% 6.0% 5.1% 6.6% 2.2%
Adjusted loan loss provision expense-to-average total assets
2.0% 1.2% 1.4% 1.1% -0.8%
Adjusted operating expense-to-average total assets
16.1% 7.4% 7.8% 15.0% 8.1%
Adjusted personnel expense
9.5% 2.9% 3.7% 10.8% 4.4%
Adjusted admin expense
5.9% 4.1% 4.1% 4.1% 3.7%
Adjustment expense-to-average total assets
0.0% 0.0% 0.0% 0.0% 0.0%
MFI
Akhuwat OSDI Sub
Adjusted total expense
1,480,045 41,914 6,830,015
Adjusted financial expense
444,943 59 1,702,293
Adjusted loan loss provision expense
38,844 5,336 361,924
Operating expense 996,258 36,518 4,765,798
Adjustment expense 444,971 5,338 666,859
Average total assets 8,512,448 31,631 31,744,580
Weighted avg.
Adjusted total expense-to-average total assets
17.4% 132.5% 21.5%
Adjusted financial expense-to-average total assets
5.2% 0.2% 5.4%
Adjusted loan loss provision expense-to-average total assets
0.5% 16.9% 1.1%
Adjusted operating expense-to-average total assets
11.7% 115.5% 15.0%
Adjusted personnel expense
6.7% 58.4% 8.5%
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Akhuwat OSDI Sub
Adjusted admin expense
2.2% 57.1% 4.6%
Adjustment expense-to-average total assets
5.2% 16.9% 2.1%
RSP
NRSP PRSP TMF SRSO Sub
Adjusted total expense
2,401,546 194,332 377,148 402,119 3,375,144
Adjusted financial expense
732,121 78,731 114,516 83,312 1,008,680
Adjusted loan loss provision expense
115,381 (1,316) 45,702 154,624 314,391
Operating expense 1,554,044 116,916 216,930 164,182 2,052,073
Adjustment expense 132 46 34,993 111,458 146,628
Average total assets 14,211,721 2,847,369 1,907,613 1,165,662 20,132,365
Weighted avg.
Adjusted total expense-to-average total assets
16.9% 6.8% 19.8% 34.5% 16.8%
Adjusted financial expense-to-average total assets
5.2% 2.8% 6.0% 7.1% 5.0%
Adjusted loan loss provision expense-to-average total assets
0.8% 0.0% 2.4% 13.3% 1.6%
Adjusted operating expense-to-average total assets
10.9% 4.1% 11.4% 14.1% 10.2%
Adjusted personnel expense
8.3% 2.9% 8.2% 9.3% 7.6%
Adjusted admin expense
2.6% 1.2% 2.8% 4.1% 2.5%
Adjustment expense-to-average total assets
0.0% 0.0% 1.8% 9.6% 0.7%
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Operating EfficiencyMFB
KBL TMFB FMFB NRSP-B FINCA
Operating expense (PKR 000)
2,755,914 3,485,207 1,559,937 1,558,766 1,669,761
Personnel expense (PKR 000)
1,340,023 1,670,412 835,550 891,854 848,857
Average gross loan portfolio (PKR 000)
20,387,932 14,065,704 6,956,835 11,178,274 7,843,943
Average number of active borrowers
557,082 385,415 221,078 325,521 132,252
Average number of active loans
557,082 385,415 221,078 325,521 133,601
Adjusted operating expense-to-average gross loan portfolio
13.52% 24.8% 22.4% 13.9% 21.3%
Adjusted personnel expense-to-average gross loan portfolio
6.57% 11.9% 12.0% 8.0% 10.8%
Average salary/gross domestic product per capita
3.2 3.1 3.5 2.5 4.2
Adjusted cost per borrower (PKR)
4,947 9,043 7,056 4,789 12,626
Adjusted cost per loan (PKR)
4,947 9,043 7,056 4,789 12,498
MFB
AMFB MMFB U-Bank ADVANS Sub
Operating expense (PKR 000)
1,107,253 1,287,181 801,942 243,716 14,469,679
Personnel expense (PKR 000)
644,650 598,679 439,096 90,602 7,359,723
Average gross loan portfolio (PKR 000)
4,487,554 3,642,034 3,248,092 208,943 72,019,312
Average number of active borrowers
45,643 90,929 22,254 2,925 1,783,099
Average number of active loans
45,643 90,929 22,254 2,925 1,784,448
weighted avg.
Adjusted operating expense-to-average gross loan portfolio
24.7% 35.3% 24.7% 116.6% 20.1%
Adjusted personnel expense-to-average gross loan portfolio
14.4% 16.4% 13.5% 43.4% 10.2%
Average salary/gross domestic product per capita
2.8 5.3 3.1 4.2 3.3
Adjusted cost per borrower (PKR)
24,259 14,156 36,036 83,322 8,115
Adjusted cost per loan (PKR)
24,259 14,156 36,036 83,322 8,109
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MFI
OCT KASHF SAFCO DAMEN CSC
Operating expense (PKR 000)
38,300 879,022 120,369 193,944 125,099
Personnel expense (PKR 000)
24,916 689,726 73,066 106,809 66,821
Average gross loan portfolio (PKR 000)
578,025 4,557,959 652,055 1,198,346 402,185
Average number of active borrowers
44,741 214,981 58,468 44,954 22,940
Average number of active loans
44,741 214,981 58,468 44,954 22,940
Adjusted operating expense-to-average gross loan portfolio
6.6% 19.3% 18.5% 16.2% 31.1%
Adjusted personnel expense-to-average gross loan portfolio
4.3% 15.1% 11.2% 8.9% 16.6%
Average salary/gross domestic product per capita
1.2 2.1 1.7 2.8 2.1
Adjusted cost per borrower (PKR)
856 4,089 2,059 4,314 5,453
Adjusted cost per loan (PKR)
856 4,089 2,059 4,314 5,453
MFI
GBTI FFO ASA-P MO BRAC-P
Operating expense (PKR 000)
37,917 65,564 598,708 18,066 950,928
Personnel expense (PKR 000)
26,380 36,059 443,737 9,246 425,642
Average gross loan portfolio (PKR 000)
155,292 369,172 4,736,656 88,960 1,409,005
Average number of active borrowers
13,121 20,724 322,015 4,474 56,327
Average number of active loans
13,121 20,724 322,015 4,474 56,327
Adjusted operating expense-to-average gross loan portfolio
24.4% 17.8% 12.6% 20.3% 67.5%
Adjusted personnel expense-to-average gross loan portfolio
17.0% 9.8% 9.4% 10.4% 30.2%
Average salary/gross domestic product per capita
1.9 1.5 1.8 2.3 5.9
Adjusted cost per borrower (PKR)
2,890 3,164 1,859 4,038 16,882
Adjusted cost per loan (PKR)
2,890 3,164 1,859 4,038 16,882
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MFI
JWS ORIX RCDP Agahe AMRDO
Operating expense (PKR 000)
41,019 66,877 60,870 41,361 38,570
Personnel expense (PKR 000)
26,061 34,969 35,237 24,553 26,085
Average gross loan portfolio (PKR 000)
718,361 417,603 1,205,403 168,023 175,018
Average number of active borrowers
35,627 22,718 71,430 14,269 12,891
Average number of active loans
35,627 22,718 71,430 14,269 12,891
Adjusted operating expense-to-average gross loan portfolio
5.7% 16.0% 5.0% 24.6% 22.0%
Adjusted personnel expense-to-average gross loan portfolio
3.6% 8.4% 2.9% 14.6% 14.9%
Average salary/gross domestic product per capita
0.7 3.1 0.5 1.9 1.6
Adjusted cost per borrower (PKR)
1,151 2,944 852 2,899 2,992
Adjusted cost per loan (PKR)
1,151 2,944 852 2,899 2,992
MFI
OPD SAATH SRDO SVDP VDO
Operating expense (PKR 000)
22,348 11,690 10,738 29,448 3,777
Personnel expense (PKR 000)
13,778 4,825 5,083 21,323 2,049
Average gross loan portfolio (PKR 000)
86,986 111,534 90,573 139,570 19,351
Average number of active borrowers
6,094 5,917 3,637 6,314 1,748
Average number of active loans
6,094 5,917 3,637 6,314 1,748
Adjusted operating expense-to-average gross loan portfolio
25.7% 10.5% 11.9% 21.1% 19.5%
Adjusted personnel expense-to-average gross loan portfolio
15.8% 4.3% 5.6% 15.3% 10.6%
Average salary/gross domestic product per capita
1.5 0.9 1.3 2.0 1.1
Adjusted cost per borrower (PKR)
3,667 1,976 2,952 4,664 2,161
Adjusted cost per loan (PKR)
3,667 1,976 2,952 4,664 2,161
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MFI
Akhuwat OSDI Sub
Operating expense (PKR 000)
754,468 36,518 4,145,600
Personnel expense (PKR 000)
568,823 18,462 2,683,648
Average gross loan portfolio (PKR 000)
6,447,100 15,542 23,742,717
Average number of active borrowers
567,761 330 1,551,481
Average number of active loans
567,761 330 1,551,481
weighted avg.
Adjusted operating expense-to-average gross loan portfolio
11.7% 235.0% 17.5%
Adjusted personnel expense-to-average gross loan portfolio
8.8% 118.8% 11.3%
Average salary/gross domestic product per capita
1.1 2.6 1.8
Adjusted cost per borrower (PKR)
1,329 110,662 2,672
Adjusted cost per loan (PKR)
1,329 110,662 2,672
RSP
NRSP PRSP TMF SRSO Sub
Operating expense (PKR 000)
1,554,044 116,916 210,029 156,668 2,037,658
Personnel expense (PKR 000)
1,185,258 81,757 156,942 108,643 1,532,600
Average gross loan portfolio (PKR 000)
11,029,354 1,221,059 1,483,442 1,269,799 15,003,653
Average number of active borrowers
649,682 58,890 110,055 72,761 891,388
Average number of active loans
649,682 58,890 110,055 72,761 891,388
weighted avg.
Adjusted operating expense-to-average gross loan portfolio
14.1% 9.6% 14.2% 12.3% 13.6%
Adjusted personnel expense-to-average gross loan portfolio
10.7% 6.7% 10.6% 8.6% 10.2%
Average salary/gross domestic product per capita
2.4 0.8 1.9 2.3 2.1
Adjusted cost per borrower (PKR)
2,392 1,985 1,908 2,153 2,286
Adjusted cost per loan (PKR)
2,392 1,985 1,908 2,153 2,286
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Sub MFB Sub MFI Sub RSP Total
Operating expense (PKR 000)
14,469,679 4,145,600 2,037,658 20,652,937
Personnel expense (PKR 000)
7,359,723 2,683,648 1,532,600 11,575,971
Average gross loan portfolio (PKR 000)
72,019,312 23,742,717 15,003,653 110,765,683
Average number of active borrowers
1,783,099 1,551,481 891,388 4,225,968
Average number of active loans
1,784,448 1,551,481 891,388 4,227,317
weighted avg. weighted avg. weighted avg. weighted avg.
Adjusted operating expense-to-average gross loan portfolio
20.1% 17.5% 13.6% 18.6%
Adjusted personnel expense-to-average gross loan portfolio
10.2% 11.3% 10.2% 10.5%
Average salary/gross domestic product per capita
3.3 1.8 2.1 2.6
Adjusted cost per borrower (PKR)
8,115 2,672 2,286 4,887
Adjusted cost per loan (PKR)
8,109 2,672 2,286 4,886
ProductivityMFB
KBL TMFB FMFB NRSP-B FINCA
Number of active borrowers
557,082 385,415 221,078 325,521 132,252
Number of active loans
557,082 385,415 221,078 325,521 133,601
Number of active depositors
1,369,007 4,666,050 458,210 674,494 406,984
Number of deposit accounts
1,369,007 4,666,050 458,210 674,494 406,984
Total staff 2,708 3,473 1,541 2,340 1,324
Total loan officers 1,396 1,366 710 1,289 689
Borrowers per staff 206 111 143 139 100
Loans per staff 206 111 143 139 101
Borrowers per loan officer
399 282 311 253 192
Loans per loan officer 399 282 311 253 194
Depositors per staff 506 1,344 297 288 307
Deposit accounts per staff
506 1,344 297 288 307
Personnel allocation ratio
51.6% 39.3% 46.1% 55.1% 52.0%
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MFB
AMFB MMFB U-Bank ADVANS Sub
Number of active borrowers
45,643 90,929 22,254 2,925 1,783,099
Number of active loans
45,643 90,929 22,254 2,925 1,784,448
Number of active depositors
113,688 8,086,949 153,039 8,658 15,937,079
Number of deposit accounts
113,688 8,086,949 153,039 8,658 15,937,079
Total staff 1,516 740 939 141 14,722
Total loan officers 339 266 357 62 6,474
weighted avg.
Borrowers per staff 30 123 24 21 121
Loans per staff 30 123 24 21 121
Borrowers per loan officer
135 342 62 47 275
Loans per loan officer 135 342 62 47 276
Depositors per staff 75 10,928 163 61 1,083
Deposit accounts per staff
75 10,928 163 61 1,083
Personnel allocation ratio
22.4% 35.9% 38.0% 44.0% 44.0%
MFI
OCT KASHF SAFCO DAMEN CSC
Number of active borrowers
44,741 214,981 58,468 44,954 22,940
Number of active loans
44,741 214,981 58,468 44,954 22,940
Number of active depositors
- - - - -
Number of deposit accounts
- - - - -
Total staff 140 2,096 286 250 208
Total loan officers 65 1,105 139 88 82
Borrowers per staff 320 103 204 180 110
Loans per staff 320 103 204 180 110
Borrowers per loan officer
688 195 421 511 280
Loans per loan officer 688 195 421 511 280
Depositors per staff 0 0 0 0 0
Deposit accounts per staff
0 0 0 0 0
Personnel allocation ratio
46.4% 52.7% 48.6% 35.2% 39.4%
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MFI
GBTI FFO ASA-P MO BRAC
Number of active borrowers
13,121 20,724 322,015 4,474 56,327
Number of active loans
13,121 20,724 322,015 4,474 56,327
Number of active depositors
- - - - -
Number of deposit accounts
- - - - -
Total staff 93 158 1,592 26 474
Total loan officers 12 83 912 14 274
Borrowers per staff 141 131 202 172 119
Loans per staff 141 131 202 172 119
Borrowers per loan officer
1,093 250 353 320 206
Loans per loan officer 1,093 250 353 320 206
Depositors per staff 0 0 0 0 0
Deposit accounts per staff
0 0 0 0 0
Personnel allocation ratio
12.9% 52.5% 57.3% 53.8% 57.8%
MFI
JWS ORIX RCDP Agahe AMRDO
Number of active borrowers
35,627 22,718 71,430 14,269 12,891
Number of active loans
35,627 22,718 71,430 14,269 12,891
Number of active depositors
- - - - -
Number of deposit accounts
- - - - -
Total staff 249 73 421 86 104
Total loan officers 126 47 232 46 44
Borrowers per staff 143 311 170 166 124
Loans per staff 143 311 170 166 124
Borrowers per loan officer
283 483 308 310 293
Loans per loan officer 283 483 308 310 293
Depositors per staff 0 0 0 0 0
Deposit accounts per staff
0 0 0 0 0
Personnel allocation ratio
50.6% 64.4% 55.1% 53.5% 42.3%
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OPD SAATH SRDO SVDP VDO
Number of active borrowers
6,094 5,917 3,637 6,314 1,748
Number of active loans
6,094 5,917 3,637 6,314 1,748
Number of active depositors
- - - - -
Number of deposit accounts
- - - - -
Total staff 62 35 26 71 12
Total loan officers 24 16 9 23 3
Borrowers per staff 98 169 140 89 146
Loans per staff 98 169 140 89 146
Borrowers per loan officer
254 370 404 275 583
Loans per loan officer 254 370 404 275 583
Depositors per staff 0 0 0 0 0
Deposit accounts per staff
0 0 0 0 0
Personnel allocation ratio
38.7% 45.7% 34.6% 32.4% 25.0%
MFI
Akhuwat OSDI Sub
Number of active borrowers
567,761 330 1,551,481
Number of active loans
567,761 330 1,551,481
Number of active depositors
- - -
Number of deposit accounts
- - -
Total staff 3,491 46 9,999
Total loan officers 1,899 2 5,245
weighted avg.
Borrowers per staff 163 7 155
Loans per staff 163 7 155
Borrowers per loan officer
299 165 296
Loans per loan officer 299 165 296
Depositors per staff 0 0 -
Deposit accounts per staff
0 0 -
Personnel allocation ratio
54.4% 4.3% 52.5%
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RSP
NRSP PRSP TMF SRSO Sub
Number of active borrowers
649,682 58,890 110,055 72,761 891,388
Number of active loans
649,682 58,890 110,055 72,761 891,388
Number of active depositors
- - - - -
Number of deposit accounts
- - - - -
Total staff 3,221 641 527 303 4,692
Total loan officers 3,014 224 237 148 3,623
weighted avg.
Borrowers per staff 202 92 209 240 190
Loans per staff 202 92 209 240 190
Borrowers per loan officer
216 263 464 492 246
Loans per loan officer 216 263 464 492 246
Depositors per staff - - - - -
Deposit accounts per staff
- - - - -
Personnel allocation ratio
93.6% 34.9% 45.0% 48.8% 77.2%
Sub MFB Sub MFI Sub RSP Total
Number of active borrowers
1,783,099 1,551,481 891,388 4,225,968
Number of active loans
1,784,448 1,551,481 891,388 4,227,317
Number of active depositors
15,937,079 - - 15,937,079
Number of deposit accounts
15,937,079 - - 15,937,079
Total staff 14,722 9,999 4,692 29,413
Total loan officers 6,474 5,245 3,623 15,342
weighted avg. weighted avg. weighted avg. weighted avg.
Borrowers per staff 121 155 190 144
Loans per staff 121 155 190 144
Borrowers per loan officer
275 296 246 275
Loans per loan officer 276 296 246 276
Depositors per staff 1,083 - - 542
Deposit accounts per staff
1,083 - - 542
Personnel allocation ratio
44.0% 52.5% 77.2% 52.2%
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Risk in PKR 000MFB
KBL TMFB FMFB NRSP-B FINCA
Portfolio at risk > 30 days
347,374 93,891 58,873 48,060 114,977
Portfolio at risk > 90 days
193,416 31,864 19,201 17,784 54,716
Loan loss reserve (balance sheet)
369,450 110,070 90,698 144,309 126,865
Loan Portfolio written off during year
535,708 52,348 55,057 97,336 152,428
Gross loan portfolio 23,308,981 15,945,319 8,273,926 13,271,040 10,209,129
Average gross loan portfolio
20,387,932 14,065,704 6,956,835 11,178,274 7,843,943
Portfolio at risk (>30)-to-gross loan portfolio
1.5% 0.6% 0.7% 0.4% 1.1%
Portfolio at risk(>90)-to-gross loan portfolio
0.8% 0.2% 0.2% 0.1% 0.5%
Write off-to-average gross loan portfolio
2.6% 0.37% 0.8% 0.9% 1.9%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
106.4% 117.2% 154.1% 300.3% 110.3%
MFB
AMFB MMFB U-Bank ADVANS Sub
Portfolio at risk > 30 days
24,400 - 25,633 6,007 719,215
Portfolio at risk > 90 days
449 - 13,153 4,006 334,590
Loan loss reserve (balance sheet)
913,163 75,138 48,381 4,511 1,882,585
Loan Portfolio written off during year
- - 2,589 23,651 919,119
Gross loan portfolio 6,320,692 5,933,962 5,576,802 212,539 89,052,391
Average gross loan portfolio
4,487,554 3,642,034 3,248,092 208,943 72,019,312
weighted avg.
Portfolio at risk (>30)-to-gross loan portfolio
0.4% 0.0% 0.5% 2.8% 0.8%
Portfolio at risk(>90)-to-gross loan portfolio
0.0% 0.0% 0.2% 1.9% 0.4%
Write off-to-average gross loan portfolio
0.0% 0.0% 0.1% 11.3% 1.3%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
3742.5% #DIV/0! 188.7% 75.1% 261.8%
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MFI
OCT KASHF SAFCO DAMEN CSC
Portfolio at risk > 30 days
234,972 14,798 10,466 5,057 50
Portfolio at risk > 90 days
207,637 10,045 9,282 2,869 50
Loan loss reserve (balance sheet)
33,828 45,481 25,584 62,555 22,233
Loan Portfolio written off during year
15,919 3,099 27,428 9,319 7
Gross loan portfolio 594,625 4,562,209 765,014 1,251,104 483,208
Average gross loan portfolio
578,025 4,557,959 652,055 1,198,346 402,185
Portfolio at risk (>30)-to-gross loan portfolio
39.5% 0.3% 1.4% 0.4% 0.0%
Portfolio at risk(>90)-to-gross loan portfolio
34.9% 0.2% 1.2% 0.2% 0.0%
Write off-to-average gross loan portfolio
2.8% 0.1% 4.2% 0.8% 0.0%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
14.4% 307.4% 244.5% 1237.0% 44226.7%
MFI
GBTI FFO ASA-P MO BRAC-P
Portfolio at risk > 30 days
- 5,918 11,410 753 30,551
Portfolio at risk > 90 days
- 3,680 11,410 436 28,876
Loan loss reserve (balance sheet)
7,852 18,107 47,571 4,525 57,820
Loan Portfolio written off during year
- 318 8,486 - 32,304
Gross loan portfolio 192,672 369,319 5,654,742 80,870 1,505,789
Average gross loan portfolio
155,292 369,172 4,736,656 88,960 1,409,005
Portfolio at risk (>30)-to-gross loan portfolio
0.0% 1.6% 0.2% 0.9% 2.0%
Portfolio at risk(>90)-to-gross loan portfolio
0.0% 1.0% 0.2% 0.5% 1.9%
Write off-to-average gross loan portfolio
0.0% 0.1% 0.2% 0.0% 2.3%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
0.0% 306.0% 416.9% 600.8% 189.3%
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JWS ORIX RCDP Agahe AMRDO
Portfolio at risk > 30 days
306 3,170 4,291 26 4,996
Portfolio at risk > 90 days
306 2,991 2,767 - 3,042
Loan loss reserve (balance sheet)
36,093 4,992 68,923 8,407 7,047
Loan Portfolio written off during year
4,678 1,892 1,242 425 -
Gross loan portfolio 718,859 444,451 1,402,610 201,154 174,186
Average gross loan portfolio
718,361 417,603 1,205,403 168,023 175,018
Portfolio at risk (>30)-to-gross loan portfolio
0.0% 0.7% 0.3% 0.0% 2.9%
Portfolio at risk(>90)-to-gross loan portfolio
0.0% 0.7% 0.2% 0.0% 1.7%
Write off-to-average gross loan portfolio
0.7% 0.5% 0.1% 0.3% 0.0%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
11804.6% 157.5% 1606.3% 0.0% 141.1%
MFI
OPD SAATH SRDO SVDP VDO
Portfolio at risk > 30 days
4,493 3,556 9,302 1,928 749
Portfolio at risk > 90 days
3,871 2,149 5,360 1,515 587
Loan loss reserve (balance sheet)
6,744 5,619 4,712 7,319 776
Loan Portfolio written off during year
1,294 1,086 1,463 343 1,302
Gross loan portfolio 90,843 128,934 95,678 148,190 15,524
Average gross loan portfolio
86,986 111,534 90,573 139,570 19,351
Portfolio at risk (>30)-to-gross loan portfolio
4.9% 2.8% 9.7% 1.3% 4.8%
Portfolio at risk(>90)-to-gross loan portfolio
4.3% 1.7% 5.6% 1.0% 3.8%
Write off-to-average gross loan portfolio
1.5% 1.0% 1.6% 0.2% 6.7%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
150.1% 158.0% 50.7% 379.5% 103.7%
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MFI
Akhuwat OSDI Sub
Portfolio at risk > 30 days
26,325 11,407 384,524
Portfolio at risk > 90 days
- 11,407 308,278
Loan loss reserve (balance sheet)
80,642 6,071 562,898
Loan Portfolio written off during year
5,466 - 116,072
Gross loan portfolio 8,063,573 11,407 26,954,961
Average gross loan portfolio
6,447,100 15,542 23,742,717
weighted avg.
Portfolio at risk (>30)-to-gross loan portfolio
0.3% 100.0% 1.4%
Portfolio at risk(>90)-to-gross loan portfolio
0.0% 100.0% 1.1%
Write off-to-average gross loan portfolio
0.1% 0.0% 0.5%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
306.3% 53.2% 146.4%
RSP
NRSP PRSP TMF SRSO Sub
Portfolio at risk > 30 days
150,169 16,052 48,760 246,739 461,720
Portfolio at risk > 90 days
130,729 14,881 44,573 240,510 430,693
Loan loss reserve (balance sheet)
160,255 79,200 8,578 121,403 369,436
Loan Portfolio written off during year
37,224 - 31,742 43,161 112,127
Gross loan portfolio 11,960,308 1,080,378 1,603,839 1,351,175 15,995,700
Average gross loan portfolio
11,029,354 1,221,059 1,483,442 1,269,799 15,003,653
weighted avg.
Portfolio at risk (>30)-to-gross loan portfolio
1.3% 1.5% 3.0% 18.3% 2.9%
Portfolio at risk(>90)-to-gross loan portfolio
1.1% 1.4% 2.8% 17.8% 2.7%
Write off-to-average gross loan portfolio
0.3% 0.0% 2.1% 3.4% 0.7%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
106.7% 493.4% 17.6% 49.2% 80.0%
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Sub MFB Sub MFI Sub RSP Total
Portfolio at risk > 30 days
719,215 384,524 461,720 1,565,459
Portfolio at risk > 90 days
334,590 308,278 430,693 1,073,562
Loan loss reserve (balance sheet)
1,882,585 562,898 369,436 2,814,919
Loan Portfolio written off during year
919,119 116,072 112,127 1,147,319
Gross loan portfolio 89,052,391 26,954,961 15,995,700 132,003,052
Average gross loan portfolio
72,019,312 23,742,717 15,003,653 110,765,683
weighted avg. weighted avg. weighted avg. weighted avg.
Portfolio at risk (>30)-to-gross loan portfolio
0.8% 1.4% 2.9% 1.2%
Portfolio at risk(>90)-to-gross loan portfolio
0.4% 1.1% 2.7% 0.8%
Write off-to-average gross loan portfolio
1.3% 0.5% 0.7% 1.0%
Risk coverage ratio (adjusted loan loss reserve-to-portfolio at risk >30 days)
261.8% 146.4% 80.0% 179.8%
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Social GoalsKBL TMFB FMFBP FINCA MMFB
1.1 Target market Clients living in rural areas
P P P P P
Clients living in urban areas
P P P P P
Women P P P P PAdolescents and youth (below 18)
None of the above
Ubank POMFB NRSP Bank
APMBL
Clients living in rural areas
P P P
Clients living in urban areas
P P P P
Women P P P PAdolescents and youth (below 18)
None of the above
AIII - Social Performance Indicators 2016
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KBL TMFB FMFBP FINCA MMFB
1.2 Development goals Increased access to financial services
P P P P P
Poverty reduction P P P P PEmployment generation
P P P P
Development of start-up enterprises
P P
Growth of existing businesses
P P P P P
Improvement of adult education
Youth opportunities PChildren's schooling PHealth improvement PGender equality and women's empowerment
P
Water and sanitation PHousing P PNone of the above
Ubank POMFB NRSP Bank
APMBL
Increased access to financial services
P P P P
Poverty reduction P P P PEmployment generation
P P
Development of start-up enterprises
P P P
Growth of existing businesses
P P P P
Improvement of adult education
Youth opportunities PChildren's schooling PHealth improvement PGender equality and women's empowerment
P P P P
Water and sanitation
Housing
None of the above
KBL TMFB FMFBP FINCA MMFB
1.3 Poverty level Very poor clients
Poor clients P P PLow income clients P P P PNo specific poverty target
P
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APMBL
Very poor clients
Poor clients P PLow income clients P P P PNo specific poverty target
KBL TMFB FMFBP FINCA MMFB
1.4 Does MFP measure poverty
Yes P P P P
No P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P No P P Unknown
KBL TMFB FMFBP FINCA MMFB
1.5 Poverty measurement tool
Grameen Progress out of Poverty Index (PPI)
P
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
P
Per capita household income
P
Participatory Wealth Ranking (PWR)
Housing index
Food security index
Means test
Own proxy poverty index
P P P
None of the above P
Ubank POMFB NRSP Bank
APMBL
Grameen Progress out of Poverty Index (PPI)
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
P
Per capita household income
P
Participatory Wealth Ranking (PWR)
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Housing index
Food security index
Means test
Own proxy poverty index
P
None of the above P P
Governance and HRKBL TMFB FMFBP FINCA MMFB
2.1 Board orientation of social mission
Yes P P P P
No PUnknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P PNo
Unknown
KBL TMFB FMFBP FINCA MMFB
2.2 SPM champion/ committee at Board
Yes P P
No P P PUnknown
Ubank POMFB NRSP Bank
APMBL
Yes PNo P P PUnknown
KBL TMFB FMFBP FINCA MMFB
2.3 Board experience in SPM Yes P P P PNo PUnknown
Ubank POMFB NRSP Bank
APMBL
Yes P P PNo
Unknown P
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2.4 Staff incentives related to SP
Number of clients P P P P
Quality of interaction with clients based on client feedback mechanism
P
Quality of social data collected
Portfolio quality P P P P PNone of the above
Ubank POMFB NRSP Bank
APMBL
Number of clients P P P PQuality of interaction with clients based on client feedback mechanism
Quality of social data collected
Portfolio quality P P P PNone of the above
KBL TMFB FMFBP FINCA MMFB
2.5 How number of clients is incentivized
Total number of clients P P P P P
Number of new clients P P P Client retention P None of the above
Ubank POMFB NRSP Bank
APMBL
Total number of clients P P P P Number of new clients P P P Client retention P P P None of the above
KBL TMFB FMFBP FINCA MMFB
2.6 HR policies related to SP Social protection (medical insurance and/or pension contribution)
P P P P P
Safety policy P PAnti-harassment policy P P P P PNon-discrimination policy
P P P P P
Grievance resolution policy
P P P P P
None of the above
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APMBL
Social protection (medical insurance and/or pension contribution)
P P P P
Safety policy P P PAnti-harassment policy P P PNon-discrimination policy
P P P
Grievance resolution policy
P P P
None of the above
Products and ServicesKBL TMFB FMFBP FINCA MMFB
3.1 Types of credit products Income generating loans
P P P P P
Non-income generating loans
P P P
Does not offer credit products
Ubank POMFB NRSP Bank
APMBL
Income generating loans
P P P P
Non-income generating loans
P P
Does not offer credit products
KBL TMFB FMFBP FINCA MMFB
3.2 Types of income generating loans
Microenterprise loans P P P P P
SME loans PAgriculture/livestock loans
P P P P P
Express loans P P P PNone of the above
Ubank POMFB NRSP Bank
APMBL
Microenterprise loans P P P PSME loans P P PAgriculture/livestock loans
P P P
Express loans
None of the above
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3.3 Types of non-income generating loans
Education loans P
Emergency loans P P PHousing loans P POther household needs/consumption
P P P
None of the above P
Ubank POMFB NRSP Bank
APMBL
Education loans PEmergency loans PHousing loans
Other household needs/consumption
P P
None of the above P P
KBL TMFB FMFBP FINCA MMFB
3.4 Types of savings products
Compulsory sacings accounts
P
Voluntary savings accounts
P P P P P
Does not offer savings accounts
Ubank POMFB NRSP Bank
APMBL
Compulsory sacings accounts
Voluntary savings accounts
P P P P
Does not offer savings accounts
KBL TMFB FMFBP FINCA MMFB
3.5 Types of voluntary savings products
Demand deposit accounts
P P P P P
Time deposit accounts P P P P PNone of the above
Ubank POMFB NRSP Bank
APMBL
Demand deposit accounts
P P P P
Time deposit accounts P P P PNone of the above
KBL TMFB FMFBP FINCA MMFB
3.6 Compulory insurance required
Yes P P P P
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No P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Unknown
KBL TMFB FMFBP FINCA MMFB
3.7 Types of compulory insurance required
Credit life insurance P P P P
Life/accident insurance P PAgriculture insurance P P PNone of the above P
Ubank POMFB NRSP Bank
APMBL
Credit life insurance P P P PLife/accident insurance PAgriculture insurance P PNone of the above
KBL TMFB FMFBP FINCA MMFB
3.8 Voluntary insurance offered
Yes P P P
No P P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P No P P P Unknown
KBL TMFB FMFBP FINCA MMFB
3.9 Types of voluntary insurance offered
Credit life insurance
Life/accident insurance PAgriculture insurance PHealth insurance P P PHouse insurance
Workplace insurance
None of the above P P
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APMBL
Credit life insurance
Life/accident insurance
Agriculture insurance
Health insurance PHouse insurance
Workplace insurance
None of the above P P P
KBL TMFB FMFBP FINCA MMFB
3.10 Other financial services offered
Yes P P P P P
No
Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P No P Unknown
KBL TMFB FMFBP FINCA MMFB
3.11 Other financial services offered
Debit/credit card P P P P
Mobile/branchless banking services
P P P
Savings facilitation services
P P
Remittance/money transfer services
P P P P P
Payment services P P PMicroleasing
Scholarship/educational grants
None of the above
Ubank POMFB NRSP Bank
APMBL
Debit/credit card P P PMobile/branchless banking services
P P
Savings facilitation services
P P P
Remittance/money transfer services
P P
Payment services P PMicroleasing
Scholarship/educational grants
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None of the above P
KBL TMFB FMFBP FINCA MMFB
3.12 Enterprise services offered
Yes
No P P P P P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes
No P P P P Unknown
KBL TMFB FMFBP FINCA MMFB
3.13 Types of enterprise services offered
Enterprise skills development
Business development services
None of the above P P P P P
Ubank POMFB NRSP Bank
APMBL
Enterprise skills development
Business development services
None of the above P P P P
KBL TMFB FMFBP FINCA MMFB
3.14 Women’s empowerment services
Yes
No P P P P P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes
No P P P P Unknown
KBL TMFB FMFBP FINCA MMFB
3.15 Types of women’s empowerment services offered
Leadership training for women
Women's rights education/gender issues training
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Counseling/legal services for female victims of violence
None of the above P P P P P
Ubank POMFB NRSP Bank
APMBL
Leadership training for women
Women's rights education/gender issues training
Counseling/legal services for female victims of violence
None of the above P P P P
KBL TMFB FMFBP FINCA MMFB
3.16 Education services offered
Yes P P P
No P P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P No P P P Unknown
KBL TMFB FMFBP FINCA MMFB
3.17 Types of education services offered
Financial literacy education
P P
Basic health/nutrition education
P
Child and youth education
Occupational health and safety in the workplace education
None of the above P P
Ubank POMFB NRSP Bank
APMBL
Financial literacy education
P
Basic health/nutrition education
Child and youth education
Occupational health and safety in the workplace education
None of the above P P P
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3.18 Health services offered Yes
No P P P P P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes
No P P P P Unknown
KBL TMFB FMFBP FINCA MMFB
3.19 Types of health services offered
Basic medical services
Special medical services for women and children
None of the above P P P P P
Ubank POMFB NRSP Bank
APMBL
Basic medical services
Special medical services for women and children
None of the above P P P P P
Client ProtectionKBL TMFB FMFBP FINCA MMFB
4.1 Do policies support good repayment capacity analysis
Yes P P P P P
No
Partially
Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
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4.2 Does internal audit verify compliance with policies
Yes P P P P P No
Partially
Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
KBL TMFB FMFBP FINCA MMFB
4.3 The institution fully discloses to the clients all prices, installments, terms, and conditions of all financial products, including all charges and fees, associated prices, penalties, linked products, third party fees, and whether these can change over time.
Yes P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
KBL TMFB FMFBP FINCA MMFB
4.4 The institution clearly presents to clients the total amount that the client pays for the product, regardless of local regulations (including in the absence of industry-wide pricing transparency initiative).
Yes P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P No
Partially P Unknown
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4.5 The institution clearly spells out in a Code of Conduct (i.e., in Code of Conduct, Code of Ethics, Book of Employee Rules) the specific standards of professional conduct that are expected of all employees involved in collections (including third party staff).
Yes P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
KBL TMFB FMFBP FINCA MMFB
4.6 The institution sanctions cases of violations of the Code of Conduct or collections policies (identified by management, internal audit or an efficient complaint mechanism) according to set rules.
Yes P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P No P Partially
Unknown
KBL TMFB FMFBP FINCA MMFB
4.7 The institution’s policies include how to handle complaints. They include how to inform clients about the complaint mechanism. The institution’s clients receive a timely resolution of their complaints.
Yes P P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
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4.8 The institution’s contracts include a data privacy clause, describing how and when data can be shared (in addition to credit bureau information).
Yes P P P P P No
Partially P Unknown
Ubank POMFB NRSP Bank
APMBL
Yes P P P P No
Partially
Unknown
KBL TMFB FMFBP FINCA MMFB
4.9 How interest rate of most representative credit product is stated
Declining balance interest method
P P P
Flat interest method P P
Ubank POMFB NRSP Bank
APMBL
Declining balance interest method
P P P
Flat interest method P
EnvironmentKBL TMFB FMFBP FINCA MMFB
5.1 Environmental policies in place
Awareness raising on environmental impacts
P
Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P
Tools to evaluate environmental risks of clients' activities
P P
Specific loans linked to environmentally friendly products and/or practices
P P
None of the above P
Ubank POMFB NRSP Bank
APMBL
Awareness raising on environmental impacts
P
Sect
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Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P
Tools to evaluate environmental risks of clients' activities
P P
Specific loans linked to environmentally friendly products and/or practices
None of the above P
KBL TMFB FMFBP FINCA MMFB
5.2 Types of environmentally friendly products and/or practices offered
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
P
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
None of the above P P P
Ubank POMFB NRSP Bank
APMBL
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
None of the above P P P
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Social GoalsAGAHE Akhuwat BEDF CSC FFO
1.1 Target market Clients living in rural areas
P P P P P
Clients living in urban areas
P P P P P
Women P P P P PAdolescents and youth (below 18)
None of the above
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Clients living in rural areas
P P P P
Clients living in urban areas
P P P P P
Women P P P P P
Adolescents and youth below 18)
P
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Clients living in rural areas
P P P P P
Clients living in urban areas
P P P
Women P P P PAdolescents and youth (below 18)
P
None of the above
SRDO SWWS ASA-P SAATH VDO
Clients living in rural areas
P P P P
Clients living in urban areas
P P P
Women P P P PAdolescents and youth (below 18)
P
None of the above
DSP
Clients living in rural areas
P
Clients living in urban areas
P
Women PAdolescents and youth (below 18)
Sect
ion
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None of the above
AGAHE Akhuwat BEDF CSC FFO
1.2 Development goals Increased access to financial services
P P P P
Poverty reduction P P P P PEmployment generation
P P P P
Development of start-up enterprises
P P
Growth of existing businesses
P P P P P
Improvement of adult education
Youth opportunities P PChildren's schooling
Health improvement P PGender equality and women's empowerment
P P P P
Water and sanitation
Housing PNone of the above
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Increased access to financial services
P P P P P
Poverty reduction P P P P PEmployment generation
P P P P
Development of start-up enterprises
P P
Growth of existing businesses
P P P P
Improvement of adult education
P
Youth opportunities PChildren's schooling
Health improvement PGender equality and women's empowerment
P P P P P
Water and sanitation
Housing
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Increased access to financial services
P P P P P
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Poverty reduction P P P PEmployment generation
P P P P P
Development of start-up enterprises
P P P
Growth of existing businesses
P P P P P
Improvement of adult education
P
Youth opportunities
Children's schooling PHealth improvement
Gender equality and women's empowerment
P P P
Water and sanitation PHousing
None of the above
SRDO SWWS ASA-P SAATH VDO
Increased access to financial services
P P P
Poverty reduction P P P P PEmployment generation
P P P P
Development of start-up enterprises
P
Growth of existing businesses
P P P P
Improvement of adult education
Youth opportunities PChildren's schooling
Health improvement
Gender equality and women's empowerment
P P P P
Water and sanitation PHousing
None of the above
DSP
Increased access to financial services
P
Poverty reduction PEmployment generation
P
Development of start-up enterprises
Growth of existing businesses
P
Improvement of adult education
Sect
ion
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Youth opportunities
Children's schooling
Health improvement
Gender equality and women's empowerment
P
Water and sanitation
Housing
None of the above
AGAHE Akhuwat BEDF CSC FFO
1.3 Poverty level Very poor clients P PPoor clients P P P P PLow income clients P P P PNo specific poverty target
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Very poor clients PPoor clients P P PLow income clients P P P P PNo specific poverty target
SSF SVDP OLP BRAC Micro-op-tions
Very poor clients P PPoor clients P P P PLow income clients P P P P PNo specific poverty target
SRDO SWWS ASA-P SAATH VDO
Very poor clients
Poor clients P P P PLow income clients P P P PNo specific poverty target
DSP
Very poor clients
Poor clients PLow income clients PNo specific poverty target
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1.4 Does MFP measure poverty
Yes P P P P
No PUnknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P PNo
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P
No
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P
No
Unknown
DSP
Yes P
No
Unknown
AGAHE Akhuwat BEDF CSC FFO
1.5 Poverty level Grameen Progress out of Poverty Index (PPI)
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
Per capita household income
Participatory Wealth Ranking (PWR)
Housing index
Food security index
Means test
Own proxy poverty index
None of the above P P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Grameen Progress out of Poverty Index (PPI)
P P P
USAID Poverty Assessment Tool (PAT)
Sect
ion
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Per capita household expenditure
Per capita household income
Participatory Wealth Ranking (PWR)
P
Housing index
Food security index
Means test
Own proxy poverty index
P P P
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Grameen Progress out of Poverty Index (PPI)
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
P P P
Per capita household income
P P
Participatory Wealth Ranking (PWR)
Housing index PFood security index
Means test
Own proxy poverty index
P P
None of the above
SRDO SWWS ASA-P SAATH VDO
Grameen Progress out of Poverty Index (PPI)
P
USAID Poverty Assessment Tool (PAT)
P
Per capita household expenditure
P
Per capita household income
P P P P
Participatory Wealth Ranking (PWR)
P
Housing index PFood security index PMeans test
Own proxy poverty index
None of the above
DSP
Grameen Progress out of Poverty Index (PPI)
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
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Per capita household income
Participatory Wealth Ranking (PWR)
Housing index
Food security index
Means test
Own proxy poverty index
P
None of the above
Governance and HRAGAHE Akhuwat BEDF CSC FFO
2.1 Board orientation of social mission
Yes P P P P P
No
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P No P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Unknown
DSP
Yes
No P Unknown
AGAHE Akhuwat BEDF CSC FFO
2.2 SPM champion/ committee at Board
Yes P P
No P P P Unknown
Sect
ion
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MOJAZ OCT RCDP
Yes P P P No P P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P No P P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Unknown
DSP
Yes P No
Unknown
AGAHE Akhuwat BEDF CSC FFO
2.3 Board experience in SPM Yes P P P P No
Unknown P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P No P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P No P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Unknown
DSP
Yes
No P Unknown
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AGAHE Akhuwat BEDF CSC FFO
2.4 Staff incentives related to SP
Number of clients P P P P
Quality of interaction with clients based on client feedback mechanism
P
Quality of social data collected
P
Portfolio quality P P PNone of the above P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Number of clients P P P PQuality of interaction with clients based on client feedback mechanism
P P P
Quality of social data collected
P P
Portfolio quality P P P P PNone of the above
SSF SVDP OLP BRAC Micro-op-tions
Number of clients P P P PQuality of interaction with clients based on client feedback mechanism
P
Quality of social data collected
P
Portfolio quality P P P P PNone of the above
SRDO SWWS ASA-P SAATH VDO
Number of clients P PQuality of interaction with clients based on client feedback mechanism
P P
Quality of social data collected
P P
Portfolio quality P P P PNone of the above P
DSP
Number of clients
Quality of interaction with clients based on client feedback mechanism
Quality of social data collected
Portfolio quality
None of the above P
Sect
ion
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2.5 How number of clients is incentivized
Total number of clients P P
Number of new clients P Client retention P None of the above P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Total number of clients P Number of new clients P P P Client retention P P P P None of the above P
SSF SVDP OLP BRAC Micro-op-tions
Total number of clients P P Number of new clients P P P Client retention P None of the above
SRDO SWWS ASA-P SAATH VDO
Total number of clients P P Number of new clients P P P Client retention P P P None of the above P
DSP
Total number of clients
Number of new clients
Client retention
None of the above P
AGAHE Akhuwat BEDF CSC FFO
2.6 HR policies related to SP Social protection (medical insurance and/or pension contribution)
P P P P P
Safety policy P PAnti-harassment policy P P P P PNon-discrimination policy
P P P P
Grievance resolution policy
P P P P P
None of the above
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MOJAZ OCT RCDP
Social protection (medical insurance and/or pension contribution)
P P P P P
Safety policy P P P PAnti-harassment policy P P P P PNon-discrimination policy
P P P P
Grievance resolution policy
P P P P P
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Social protection (medical insurance and/or pension contribution)
P P P P
Safety policy P P PAnti-harassment policy P P P P PNon-discrimination policy
P P P P
Grievance resolution policy
P P P P
None of the above
SRDO SWWS ASA-P SAATH VDO
Social protection (medical insurance and/or pension contribution)
P P P
Safety policy P PAnti-harassment policy P P P PNon-discrimination policy
P P P P P
Grievance resolution policy
P P P P
None of the above
DSP
Social protection (medical insurance and/or pension contribution)
P
Safety policy PAnti-harassment policy PNon-discrimination policy
P
Grievance resolution policy
P
None of the above
Sect
ion
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Products and ServicesAGAHE Akhuwat BEDF CSC FFO
3.1 Types of credit products Income generating loans
P P P P P
Non-income generating loans
P
Does not offer credit products
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Income generating loans
P P P P P
Non-income generating loans
P P
Does not offer credit products
SSF SVDP OLP BRAC Micro-op-tions
Income generating loans
P P P P P
Non-income generating loans
Does not offer credit products
SRDO SWWS ASA-P SAATH VDO
Income generating loans
P P P P P
Non-income generating loans
P
Does not offer credit products
DSP
Income generating loans
P
Non-income generating loans
Does not offer credit products
AGAHE Akhuwat BEDF CSC FFO
3.2 Types of income generating loans
Microenterprise loans P P P P P
SME loans
Agriculture/livestock loans
P P P P
Express loans
None of the above
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Microenterprise loans P P P P PSME loans P P P
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Agriculture/livestock loans
P P P
Express loans
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Microenterprise loans P P P P PSME loans P P P PAgriculture/livestock loans
P P P P P
Express loans
None of the above
SRDO SWWS ASA-P SAATH VDO
Microenterprise loans P P P P PSME loans P PAgriculture/livestock loans
P P P P
Express loans
None of the above
DSP
Microenterprise loans PSME loans
Agriculture/livestock loans
P
Express loans
None of the above
AGAHE Akhuwat BEDF CSC FFO
3.3 Types of non-income generating loans
Education loans P
Emergency loans PHousing loans POther household needs/consumption
None of the above P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Education loans PEmergency loans P P PHousing loans
Other household needs/consumption
P P
None of the above P P
SSF SVDP OLP BRAC Micro-op-tions
Education loans
Sect
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Emergency loans
Housing loans
Other household needs/consumption
None of the above P P P P
SRDO SWWS ASA-P SAATH VDO
Education loans P PEmergency loans
Housing loans
Other household needs/consumption
None of the above P P P
DSP
Education loans
Emergency loans
Housing loans
Other household needs/consumption
None of the above P
AGAHE Akhuwat BEDF CSC FFO
3.4 Types of savings products
Compulsory savings accounts
Voluntary savings accounts
Does not offer savings accounts
P P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Compulsory savings accounts
Voluntary savings accounts
P
Does not offer savings accounts
P P P P
SSF SVDP OLP BRAC Micro-op-tions
Compulsory savings accounts
P
Voluntary savings accounts
Does not offer savings accounts
P P P P
SRDO SWWS ASA-P SAATH VDO
Compulsory savings accounts
Voluntary savings accounts
P P
Does not offer savings accounts
P P P
DSP
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Compulsory savings accounts
Voluntary savings accounts
Does not offer savings accounts
P
AGAHE Akhuwat BEDF CSC FFO
3.5 Types of voluntary savings products
Demand deposit accounts
Time deposit accounts
None of the above P P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Demand deposit accounts
Time deposit accounts
None of the above P P P P P
SSF SVDP OLP BRAC Micro-op-tions
Demand deposit accounts
Time deposit accounts
None of the above P P P P P
SRDO SWWS ASA-P SAATH VDO
Demand deposit accounts
P
Time deposit accounts PNone of the above P P P
DSP
Demand deposit accounts
Time deposit accounts
None of the above P
AGAHE Akhuwat BEDF CSC FFO
3.6 Compulory insurance required
Yes P P P
No P P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P No P Unknown
Sect
ion
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Yes P P P P No
Unknown Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P No P P Unknown
DSP
Yes P No
Unknown
AGAHE Akhuwat BEDF CSC FFO
3.7 Types of compulory insurance required
Credit life insurance P P
Life/accident insurance PAgriculture insurance
None of the above P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Credit life insurance P P P PLife/accident insurance
Agriculture insurance
None of the above P
SSF SVDP OLP BRAC Micro-op-tions
Credit life insurance P P P PLife/accident insurance P PAgriculture insurance
None of the above
SRDO SWWS ASA-P SAATH VDO
Credit life insurance P P PLife/accident insurance PAgriculture insurance P PNone of the above P P P
DSP
Credit life insurance PLife/accident insurance PAgriculture insurance
None of the above
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3.8 Voluntary insurance offered
Yes P
No P P P P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P No P P P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P No P P P P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P No P P P Unknown
DSP
Yes
No P Unknown
AGAHE Akhuwat BEDF CSC FFO
3.9 Types of voluntary insurance offered
Credit life insurance
Life/accident insurance
P
Agriculture insurance
Health insurance
House insurance
Workplace insurance
None of the above P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Credit life insurance P P Life/accident insurance
Agriculture insurance
Health insurance P P House insurance
Workplace insurance
"
Sect
ion
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None of the above P P
SSF SVDP OLP BRAC Micro-op-tions
Credit life insurance P Life/accident insurance
P
Agriculture insurance P Health insurance P House insurance
Workplace insurance
None of the above P P P P
SRDO SWWS ASA-P SAATH VDO
Credit life insurance P P Life/accident insurance
P P
Agriculture insurance P Health insurance P House insurance
Workplace insurance
None of the above P P P
DSP
Credit life insurance
Life/accident insurance
Agriculture insurance
Health insurance
House insurance
Workplace insurance
None of the above P
"
AGAHE Akhuwat BEDF CSC FFO
3.10 Other financial services offered
Yes P P
No P P P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P No P P P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P No P P P
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Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P No P P Unknown
DSP
Yes P No
Unknown
AGAHE Akhuwat BEDF CSC FFO
3.11 Types of other financial services offered
Debit/credit card
Mobile/branchless banking services
P
Savings facilitation services
Remittance/money transfer services
Payment services
Microleasing
Scholarship/educational grants
P
None of the above P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Debit/credit card
Mobile/branchless banking services
P
Savings facilitation services
Remittance/money transfer services
Payment services
Microleasing
Scholarship/educational grants
P P
None of the above P P P
SSF SVDP OLP BRAC Micro-op-tions
Debit/credit card
Mobile/branchless banking services
P P
Savings facilitation services
Remittance/money transfer services
Payment services
Microleasing
Sect
ion
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Scholarship/educational grants
None of the above P P P
SRDO SWWS ASA-P SAATH VDO
Debit/credit card
Mobile/branchless banking services
Savings facilitation services
Remittance/money transfer services
Payment services
Microleasing P PScholarship/educational grants
None of the above P P
DSP
Debit/credit card
Mobile/branchless banking services
P
Savings facilitation services
Remittance/money transfer services
Payment services
Microleasing
Scholarship/educational grants
None of the above
AGAHE Akhuwat BEDF CSC FFO
3.12 Enterprise services offered
Yes P P P P
No P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P No P P P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P No P
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Unknown P
DSP
Yes P No
Unknown
AGAHE Akhuwat BEDF CSC FFO
3.13 Types of enterprise services offered
Enterprise skills development
P P P P
Business development services
P P P
None of the above P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Enterprise skills development
P P P P P
Business development services
P P P
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Enterprise skills development
P P
Business development services
P
None of the above P P P
SRDO SWWS ASA-P SAATH VDO
Enterprise skills development
P P P P
Business development services
P P P
None of the above P P
DSP
Enterprise skills development
P
Business development services
None of the above
AGAHE Akhuwat BEDF CSC FFO
3.14 Women’s empowerment services
Yes P P P P
No P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P
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No P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P No P P Unknown P
SRDO SWWS ASA-P SAATH VDO
Yes P P No P P P Unknown
DSP
Yes P No
Unknown
AGAHE Akhuwat BEDF CSC FFO
3.15 Types of women’s empowerment services offered
Leadership training for women
P P P
Women's rights education/gender issues training
P P P P
Counseling/legal services for female victims of violence
P
None of the above P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Leadership training for women
P P P P
Women's rights education/gender issues training
P P
Counseling/legal services for female victims of violence
P
None of the above P
SSF SVDP OLP BRAC Micro-op-tions
Leadership training for women
P
Women's rights education/gender issues training
P P
Counseling/legal services for female victims of violence
None of the above P P P
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Leadership training for women
P P P
Women's rights education/gender issues training
P P P
Counseling/legal services for female victims of violence
P P P
None of the above P P
DSP
Leadership training for women
P
Women's rights education/gender issues training
Counseling/legal services for female victims of violence
None of the above
AGAHE Akhuwat BEDF CSC FFO
3.16 Education services offered
Yes P P
No P P P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P No P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P No P P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P No P Unknown
DSP
Yes
No
Unknown
Sect
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3.17 Types of education services offered
Financial literacy education
P P
Basic health/nutrition education
P
Child and youth education
Occupational health and safety in the workplace education
None of the above P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Financial literacy education
P P P
Basic health/nutrition education
P P
Child and youth education
P
Occupational health and safety in the workplace education
P
None of the above P P
SSF SVDP OLP BRAC Micro-op-tions
Financial literacy education
P P
Basic health/nutrition education
P
Child and youth education
Occupational health and safety in the workplace education
None of the above P P
SRDO SWWS ASA-P SAATH VDO
Financial literacy education
P P P P
Basic health/nutrition education
P P P
Child and youth education
P P P
Occupational health and safety in the workplace education
None of the above P
DSP
Financial literacy education
P
Basic health/nutrition education
Child and youth education
Occupational health and safety in the workplace education
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None of the above
AGAHE Akhuwat BEDF CSC FFO
3.18 Health services offered Yes P No P P P P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P No P P P Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P No P P P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P No P P Unknown P
DSP
Yes
No
Unknown P
AGAHE Akhuwat BEDF CSC FFO
3.19 Types of health services offered
Basic medical services P
Special medical services for women and children
None of the above P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Basic medical services P PSpecial medical services for women and children
P
None of the above P P P
SSF SVDP OLP BRAC Micro-op-tions
Basic medical services P P
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Special medical services for women and children
None of the above P P P
SRDO SWWS ASA-P SAATH VDO
Basic medical services P PSpecial medical services for women and children
P P
None of the above P P v
DSP
Basic medical services
Special medical services for women and children
None of the above P
Client ProtectionAGAHE Akhuwat BEDF CSC FFO
4.1 Do policies support good repayment capacity analysis
Yes P P P P P
No
Partially
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P No
Partially P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown
DSP
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Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.2 Does internal audit verify compliance with policies
Yes P P P P P
No
Partially
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P No
Partially
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown DSP
Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.3 The institution fully discloses to the clients all prices, installments, terms, and conditions of all financial products, including all charges and fees, associated prices, penalties, linked products, third party fees, and whether these can change over time.
Yes P P P P P No
Partially
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
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ion
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Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P No
Partially
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown
DSP
Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.4 The institution clearly presents to clients the total amount that the client pays for the product, regardless of local regulations (including in the absence of industry-wide pricing transparency initiative).
Yes P P P No
Partially
Unknown P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P No
Partially P Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P No
Partially
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Unknown
DSP
Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.5 The institution clearly spells out in a Code of Conduct (i.e., in Code of Conduct, Code of Ethics, Book of Employee Rules) the specific standards of professional conduct that are expected of all employees involved in collections (including third party staff).
Yes P P P P No
Partially P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P No
Partially
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown
DSP
Yes P No
Partially
Unknown
Sect
ion
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AGAHE Akhuwat BEDF CSC FFO
4.6 The institution sanctions cases of violations of the Code of Conduct or collections policies (identified by management, internal audit or an efficient complaint mechanism) according to set rules.
Yes P P P P No
Partially P Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P No
Partially
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P No
Partially
Unknown
DSP
Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.7 The institution’s policies include how to handle complaints. They include how to inform clients about the complaint mechanism. The institution’s clients receive a timely resolution of their complaints.
Yes P P P P P No
Partially
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P P No
Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P P
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No
Partially
Unknown
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown
DSP
Yes P No
Partially
Unknown
AGAHE Akhuwat BEDF CSC FFO
4.8 The institution’s contracts include a data privacy clause, describing how and when data can be shared (in addition to credit bureau information).
Yes P P P P No P Partially
Unknown
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Yes P P P P No P Partially
Unknown
SSF SVDP OLP BRAC Micro-op-tions
Yes P P P P No
Partially
Unknown P
SRDO SWWS ASA-P SAATH VDO
Yes P P P P P No
Partially
Unknown
DSP
Yes P No
Partially
Unknown
Sect
ion
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AGAHE Akhuwat BEDF CSC FFO
4.9 How interest rate of most representative credit product is stated
Declining balance interest method
Flat interest method P P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Declining balance interest method
P P P
Flat interest method P P P
SSF SVDP OLP BRAC Micro-op-tions
Declining balance interest method
P P
Flat interest method P P P
SRDO SWWS ASA-P SAATH VDO
Declining balance interest method
P
Flat interest method P P P P
DSP
Declining balance interest method
P
Flat interest method
EnvironmentAGAHE Akhuwat BEDF CSC FFO
5.1 Environmental policies in place
Awareness raising on environmental impacts
P P P P P
Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P P P
Tools to evaluate environmental risks of clients' activities
P
Specific loans linked to environmentally friendly products and/or practices
P P
None of the above
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Awareness raising on environmental impacts
P P P P
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Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P P P
Tools to evaluate environmental risks of clients' activities
P P
Specific loans linked to environmentally friendly products and/or practices
P P
None of the above
SSF SVDP OLP BRAC Micro-op-tions
Awareness raising on environmental impacts
P P P
Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P P
Tools to evaluate environmental risks of clients' activities
P P
Specific loans linked to environmentally friendly products and/or practices
P P
None of the above P P
SRDO SWWS ASA-P SAATH VDO
Awareness raising on environmental impacts
P P P P P
Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
P P P P
Tools to evaluate environmental risks of clients' activities
P P P P
Specific loans linked to environmentally friendly products and/or practices
P P
None of the above
DSP
Awareness raising on environmental impacts
Clauses in loan contracts requiring clients to improve environmental practices/mitigate environmental risks
Tools to evaluate environmental risks of clients' activities
Specific loans linked to environmentally friendly products and/or practices
None of the above P
Sect
ion
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AGAHE Akhuwat BEDF CSC FFO
5.2 Types of environmentally friendly products and/or practices offered
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
P P
None of the above P P P
JWS Kashf Founda-tion
MOJAZ OCT RCDP
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P P P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
P
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
P
None of the above P P
SSF SVDP OLP BRAC Micro-op-tions
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
P
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
P P
None of the above P P
SRDO SWWS ASA-P SAATH VDO
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
P P P
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None of the above P P
DSP
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
Products related to environmentally friendly practices (e.g. organic farming, recycling, waste management etc)
None of the above P
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ion
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RSPs
Social GoalsNRSP TMF PRSP GBTI SRSO
1.1 Target market Clients living in rural areas
P P P P P
Clients living in urban areas
P P P P
Women P P P PAdolescents and youth (below 18)
P
None of the above
NRSP TMF PRSP GBTI SRSO
12 Development goals Increased access to financial services
P P P P P
Poverty reduction P P P P PEmployment generation
P P
Development of start-up enterprises
P P P
Growth of existing businesses
P P P
Improvement of adult education
Youth opportunities P PChildren's schooling PHealth improvement P PGender equality and women's empowerment
P P P
Water and sanitation P PHousing PNone of the above
NRSP TMF PRSP GBTI SRSO
1.3 Poverty level Very poor clients P P Poor clients P P P P Low income clients P P P P No specific poverty target
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1.4 Does MFP measure poverty
Yes P P P
No P P Unknown
NRSP TMF PRSP GBTI SRSO
1.5 Poverty measurement tool
Grameen Progress out of Poverty Index (PPI)
USAID Poverty Assessment Tool (PAT)
Per capita household expenditure
P
Per capita household income
P
Participatory Wealth Ranking (PWR)
P P
Housing index
Food security index
Means test
Own proxy poverty index
P
None of the above P P
Governance and HRNRSP TMF PRSP GBTI SRSO
2.1 Board orientation of social mission
Yes P P P P
No P Unknown
NRSP TMF PRSP GBTI SRSO
2.2 SPM champion/ committee at Board
Yes P P
No P P Unknown P
NRSP TMF PRSP GBTI SRSO
2.3 Board experience in SPM Yes P P P P P No
Unknown
Sect
ion
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NRSP TMF PRSP GBTI SRSO
2.4 Staff incentives related to SP
Number of clients P P P P
Quality of nteraction with clients based on client feedback mechanism
P
Quality of social data collected
P P
Portfolio quality P P P P PNone of the above
NRSP TMF PRSP GBTI SRSO
2.5 How number of clients is incentivized
Total number of clients P P P P
Number of new clients P P PClient retention P PNone of the above P
NRSP TMF PRSP GBTI SRSO
2.6 HR policies related to SP Social protection (medical insurance and/or pension contribution)
P P P P
Safety policy P PAnti-harassment policy P P P PNon-discrimination policy
P P P P
Grievance resolution policy
P P P P
None of the above
Products and ServicesNRSP TMF PRSP GBTI SRSO
3.1 Types of credit products Income generating loans
P P P P P
Non-income generating loans
P P
Does not offer credit products
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3.2 Types of income generat-ing loans
Microenterprise loans P P P P P
SME loans
Agriculture/livestock loans
P P P P P
Express loans PNone of the above
NRSP TMF PRSP GBTI SRSO
3.3 Types of non-income generating loans
Education loans P
Emergency loans PHousing loans POther household needs/consumption
P P
None of the above P P P
NRSP TMF PRSP GBTI SRSO
3.4 Types of savings products
Compulsory sacings accounts
Voluntary savings accounts
Does not offer savings accounts
P P P P P
NRSP TMF PRSP GBTI SRSO
3.5 Types of voluntary savings products
Demand deposit accounts
Time deposit accounts
None of the above P P P P P
NRSP TMF PRSP GBTI SRSO
3.6 Compulory insurance required
Yes P P P P P
No
Unknown
NRSP TMF PRSP GBTI SRSO
3.7 Types of compulory insurance required
Credit life insurance P P
Life/accident insur-ance
P P
Agriculture insurance P None of the above
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NRSP TMF PRSP GBTI SRSO
3.8 Voluntary insurance offered
Yes P
No P P P P Unknown
NRSP TMF PRSP GBTI SRSO
3.9 Types of voluntary insurance offered
Credit life insurance
Life/accident insurance
Agriculture insurance PHealth insurance
House insurance
Workplace insurance
None of the above P P P P
NRSP TMF PRSP GBTI SRSO
3.10 Other financial services offered
Yes P P
No P P P Unknown
NRSP TMF PRSP GBTI SRSO
3.11 Types of other financial services offered
Debit/credit card
Mobile/branchless banking services
P
Savings facilitation services
P
Remittance/money transfer services
Payment services
Microleasing
Scholarship/education-al grants
None of the above P P P
NRSP TMF PRSP GBTI SRSO
3.12 Enterprise services offered
Yes P P P P
No P Unknown
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3.13 Types of enterprise services offered
Enterprise skills devel-opment
P P P P
Business development services
P P
None of the above P
NRSP TMF PRSP GBTI SRSO
3.14 Women’s empowerment services
Yes P P P P
No P Unknown
NRSP TMF PRSP GBTI SRSO
3.15 Types of women’s empowerment services offered
Leadership training for women
P P P
Women's rights edu-cation/gender issues training
P P P
Counseling/legal ser-vices for female victims of violence
None of the above P
NRSP TMF PRSP GBTI SRSO
3.16 Education services offered
Yes P P P P
No P Unknown
NRSP TMF PRSP GBTI SRSO
3.17 Types of education services offered
Financial literacy education
P P P
Basic health/nutrition education
P P P
Child and youth education
P P
Occupational health and safety in the work-place education
None of the above P
NRSP TMF PRSP GBTI SRSO
3.18 Health services offered Yes P P P No P P Unknown
Sect
ion
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NRSP TMF PRSP GBTI SRSO
3.19 Types of health services offered
Basic medical services P P P
Special medical ser-vices for women and children
P
None of the above P P
Client ProtectionNRSP TMF PRSP GBTI SRSO
4.1 Do policies support good repayment capacity analysis
Yes P P P P P
No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.2 Does internal audit verify compliance with policies
Yes P P P P
No P partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.3 The institution fully discloses to the clients all prices, installments, terms, and conditions of all financial products, including all charges and fees, associated prices, penalties, linked products, third party fees, and whether these can change over time.
Yes P P P P P No
partially
Unknown
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4.4 The institution clearly presents to clients the total amount that the cli-ent pays for the product, regardless of local regu-lations (including in the absence of industry-wide pricing transparency initiative).
Yes P P P P P No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.5 The institution clearly spells out in a Code of Conduct (i.e., in Code of Conduct, Code of Ethics, Book of Employee Rules) the specific standards of professional conduct that are expected of all employees involved in collections (including third party staff).
Yes P P P P P No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.6 The institution sanctions cases of violations of the Code of Conduct or collections policies (identified by manage-ment, internal audit or an efficient complaint mechanism) according to set rules.
Yes P P P P P No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.7 The institution’s policies include how to handle complaints. They include how to inform clients about the complaint mechanism. The institu-tion’s clients receive a timely resolution of their complaints.
Yes P P P P P No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.8 The institution’s contracts include a data privacy clause, de-scribing how and when data can be shared (in addition to credit bureau information).
Yes P P P P P No
partially
Unknown
NRSP TMF PRSP GBTI SRSO
4.9 How interest rate of most representative credit product is stated
Declining balance interest method
P P P
Flat interest method P P
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EnvironmentNRSP TMF PRSP GBTI SRSO
5.1 Environmental policies in place
Awareness raising on environmental impacts
P P P P P
Clauses in loan con-tracts requiring clients to imrove environmen-tal practices/mitigate environmental risks
P P
Tools to evaluate environmental risks of clients' activities
P P
Specific loans linked to environmentally friendly products and/or practices
P
None of the above
NRSP TMF PRSP GBTI SRSO
5.2 Types of environmentally friendly products and/or practices offered
Products related to renewable energy (e.g. solar panels, biogas digesters etc)
P P
Products related to energy efficiency (e.g. insulation, improved cooking stove etc)
Products related to en-vironmentally friendly practices (e.g. organic farming, recycling, waste management etc)
P P
None of the above P
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Outreach Africa Asia EAP27 ECA28 LAC29 MENA30
Number of MFIs 193 196 136 136 347 27
Gross Loan Portfolio (in USD million)
8,490 18,794 15,064 9,900 38,909 1,353
Number of active borrowers (in '000)
5,780 66,929 16,258 3,083 22,500 2,148
Deposits (in USD million)
9,213 6,886 7,687 7,664 27,331 251
Number of depositors (in '000)
27,029 55,912 17,483 7,572 30,230 735
Average loan balance per borrower (in USD)
616 246 924 2,160 1,579 630
Average loan balance per borrower / GNI per capita
66% 19% 65% 65% 32% 18%
Funding Structure
Assets (in USD million)
13,874 21,991 18,132 15,367 47,555 1,996
Debt to equity ratio
4.8 3.7 4.1 5.7 5.1 1.7
Capital /asset ratio
17% 21% 20% 14% 16% 37%
Gross loan portfolio to total assets
59% 85% 83% 63% 79% 68%
Annexure BRegional Benchmarks 2016
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Outreach Africa Asia EAP27 ECA28 LAC29 MENA30
Effeciency
Operating expense / loan portfolio
13% 9% 8% 10% 14% 15%
Operating expense / assets
8% 8% 6% 6% 11% 10%
Cost per borrower (in USD)
128 20 69 286 227 86
Profitability
Return on assets 2.1% 4.2% 1.9% 0.6% 2.3% 2.9%
Return on equity 12.0% 20.2% 9.6% 3.9% 14.2% 8.0%
Operational self sufficiency
116% 130% 120% 104% 117% 119%
Risk Profile
Portfolio at risk > 30 days
3.6% 1.8% 1.3% 6.1% 4.6% 3.6%
Portfolio at risk > 90 days
2.7% 1.6% 0.9% 5.1% 3.7% 2.8%
Write-off ratio 0.4% 0.5% 0.5% 1.1% 2.8% 1.5%
27 East Asia and the Pacific28 Eastern Europe and Central Asia29 Latin America and the Caribbean30 Middle East and North Africa
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Microfinance Banks (MFBs)ADVANS Pakistan Microfinance Bank Ltd (ADVANS)• ADVANS provided PMN its audited accounts. The numbers reported in the PMR match these
reports. Deloitte Yousuf Adil audited the annual accounts of ADVANS for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from AMFB’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
APNA Microfinance Bank Ltd (AMFB) • AMFB provided PMN its audited accounts. The numbers reported in the PMR match these reports.
RSM Avais Hyder Liaquat Noman audited the annual accounts of AMFB for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The auditors have drawn attention to the existence of material uncertainty in the financial
statements which may cast significant doubt about the bank’s ability to continue as going concern.• The following numbers have been taken from AMFB’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
Annexure CSources of Data (2016)
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FINCA Microfinance Bank Ltd (FINCA)• FINCA provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Deloitte Yousuf Adil audited the annual accounts of FINCA for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from FINCA’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
Khushhali Bank Ltd (KBL)• KBL provided PMN its audited accounts. The numbers reported in the PMR match these reports.
BDO Ebrahim & Co. audited the annual accounts of KBL for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is a proper
disclosure on grants in notes to the financial statements.• The following numbers have been taken from KBL’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
The First Microfinance Bank Ltd (FMFB) • FMFB provided PMN its audited accounts. The numbers reported in the PMR match these reports.
EY Ford Rhodes audited the annual accounts of FMFBL for the year ending at 31st December 2016.• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from the MIS: i). rural-urban clients; ii). male-female clients;
iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
National Rural Support Programme Microfinance Bank (NRSP-B) • NRSP-B provided PMN its audited accounts. The numbers reported in the PMR match these
reports. Deloitte Yousuf Adil audited the annual accounts of NRSP-B for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from the MIS: i). rural-urban clients; ii). male-female clients;
iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
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Mobilink Microfinance Bank Ltd (MMFB)• MMFB provided PMN its audited accounts. The numbers reported in the PMR match these reports.
A.F Fergurson & Co. audited the annual accounts of MMFB for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from the MIS: i). rural-urban clients; ii). male-female clients;
iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
Telenor Microfinance Bank Ltd (TMFB) • TMFB provided PMN its audited accounts. The numbers reported in the PMR match these reports.
KPMG Taseer Hadi and Co. audited the annual accounts of TMFB for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from the MIS: i). rural-urban clients; ii). male-female clients;
iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
U Microfinance Bank Ltd (U-bank) • U-bank provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Deloitte Yousuf Adil audited the annual accounts of FINCA for the year ending at 31st December 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.• The following numbers have been taken from the MIS: i). rural-urban clients; ii). male-female clients;
iii). Portfolio aging; iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
Microfinance Institution (MFI)ASA Pakistan limited (ASA-P)• ASA-P provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Ernst and Young Ford Rhodes has audited the annual accounts of ASA-P for the year ending at 31st December 2016.
• ASA-P prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• All necessary adjustments to ASA-P data have been made in order to remove subsidies. • The following numbers have been taken from the organization’s MIS: i). rural-urban clients; and ii).
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male-female clients; • There is proper disclosure on the balance sheet of loan portfolio, and loan loss provision; expense
charged during the year is disclosed on the income statement.• The related party transactions have been properly disclosed in notes to the financial statements.
Agahe• Agahe provided PMN its reviewed accounts. The numbers reported in the PMR match these
reports. Grant Thornton Anjum Rahman has reviewed the annual accounts of Agahe for the year ending at 31st December 2016.
• Agahe prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
• All necessary adjustments to Agahe data have been made in order to remove subsidies. • The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements.
Akhuwat• Akhuwat provided PMN its audited accounts. The numbers reported in the PMR match these
reports. Deloitte Yousuf Adil has audited the annual accounts of Akhuwat for the year ending at 30th June 2016.
• Akhuwat prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• All necessary adjustments to data have been made in order to remove subsidies. • The following numbers have been taken from the organization’s MIS: i). rural-urban clients; and ii).
male-female clients; • The grant income has been properly disclosed in financial statements and there is proper disclosure
on grants in notes to the financial statements.
Al-Mehran Rural Development Organization (AMRDO)• AMRDO provided PMN its audited accounts. The numbers reported in the PMR match these
reports. BDO Ebrahim & Co. has audited the annual accounts of AMRDO for the year ending at 30th June 2016.
• AMRDO prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
• All necessary adjustments to data have been made in order to remove subsidies. • The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements.
BRAC-Pakistan• BRAC-Pakistan provided PMN its audited accounts. The numbers reported in the PMR match these
reports. Junaidy Shoaib Asad (Morison KSi) has audited the annual accounts of BRAC-Pakistan for the year ending at 31st December 2016.
• BRAC prepares its financial statements under the historical cost convention and in conformity with accepted accounting policies.
• All necessary adjustments to data have been made in order to remove subsidies.
Community Support Concern (CSC)• CSC provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Riaz Ahmad & Co. audited the annual accounts of CSC for the year ending at 30th June 2016.• All necessary adjustments to CSC data have been made in order to remove subsidies.
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• CSC prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii). male-female clients; iii). Aging on number of loans and value of portfolio (verifiable from audited accounts); iv). Number of staff; v). Number of credit officers; and vi). Number of offices.
• The grant income has been properly disclosed in financial statements.
Development Action for Mobilization and Emancipation (DAMEN)• DAMEN provided PMN its audited accounts. The numbers reported in the PMR match these
reports. A.F Ferguson and Co. audited the annual accounts for DAMEN for the year ending at 30th June 2016.
• There is no adjustment on cost of borrowing since DAMEN’s actual cost is higher than the adjusted cost. Similarly, no adjustment was made to loan loss provisioning expense; DAMEN is aggressive in its policies.
• DAMEN prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• The grant income has been properly disclosed in financial statements. Additionally, there is proper disclosure on grants in notes to the financial statements.
• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii). male-female clients; iii). Aging on number of loans and value of portfolio (verifiable from audited accounts); iv). Breakup for the number of loans doubtful; v). Number of staff; vi). Number of credit officers
Farmers Friend Organization (FFO)• FFO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Tariq Abdul Ghani Maqbool & Co audited the annual accounts for FFO for the year ending at 30th June 2016.
• All necessary adjustments to FFO data have been made in order to remove subsidies. There is no adjustment on loan loss provisioning expense as FFO is aggressive in its policies.
• FFO prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii). male-female clients; iii). Aging on number of loans and value of portfolio iv). Number of staff; v). Number of credit officers; and vi). Number of offices.
• The grant income has been properly disclosed in financial statements. Additionally, there is proper disclosure on grants in notes to the financial statements.
Ghazi Barotha Taraqiati Idara (GBTI)• GBTI provided PMN its audited accounts. The numbers reported in the PMR match these reports.
KPMG (Taseer Hadi and Co) audited the annual accounts for GBTI for the year ending at 30th June 2016.
• GBTI prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii). male-female clients; iii). Aging on number of loans and value of portfolio (not verifiable from audited accounts); iv). Number of staff; v). Number of credit officers; and vi). Number of offices.
• There is proper disclosure on the balance sheet of loan portfolio, and loan loss provision; expense charged during the year is disclosed on the income statement.
• The grant income has been properly disclosed in financial statements. Additionally, there is proper disclosure on grants in notes to the financial statements.
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Jinnah Welfare Society (JWS)• JWS provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Tariq Abdul Ghani Maqbool & Co. audited the annual accounts for JWS for the year ending at 30th June 2016.
• JWS prepares its financial statements under the historical cost convention and in conformity with accepted accounting practices.
• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii). male-female clients; iii). Aging on number of loans and value of portfolio (verified from audited accounts); iv). Number of staff; v). Number of credit officers; and vi). Number of branches (also available in audited accounts).
Kashf Foundation (KF)• KF provided PMN its audited accounts. The numbers reported in the PMR match these reports.
KPMG (Taseer Hadi and Co) audited the annual accounts for KF for the year ending at 30th June 2016.
• The financial statements have been presented as per the requirements of the State Bank of Pakistan.• All necessary adjustments to KF data have been made in order to remove subsidies. • KF prepares accounts on historical cost basis using the accrual system of accounting.• The grant income has been properly disclosed in financial statements and there is a proper
disclosure on grants in notes to the financial statements.• The following numbers have been taken from KF’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
Micro Options (MO)• MO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Mohisn and Co. has audited the annual accounts of MO for the year ending at 31st December 2016.• MO prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies.• The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.• The following numbers have been taken from MO’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
Organization for Participatory Development (OPD)• OPD provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Junaidy Shoaib Asad has audited the annual accounts of OPD for the year ending at 30th June 2016.• OPD prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Orangi Charitable Trust (OCT)• OCT provided PMN its audited accounts. The numbers reported in the PMR match these reports.
H.A.M.D & Co. has audited the annual accounts of OCT for the year ending at 30th June 2016.• OCT prepares its financial statements under the historical cost convention, in conformity with
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accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The related party transactions have been properly disclosed in notes to the financial statements.• The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Orix Leasing Pakistan Ltd. (OLP)• OLP has provided its audited accounts for the reporting period to PMN. • However, given that OLP’s audited accounts do not disclose figures related to its Microfinance
Division (MFD), the data reported in the PMR is not verifiable with audited accounts.• OLP has separate staff and offices for microfinance. OLP’s MFD has provided data specific to its
microfinance operations. • OLP prepares its financial statements under the historical cost convention in using accrual system
of accounting. • Adjustments to the data have been made as per the PMN’s adjustment policies. These adjustments
are in line with international practices being followed by The MIX.
Organization for Social Development Initiative (OSDI)• OSDI provided PMN its audited accounts. The numbers reported in the PMR match these reports. • OSDI prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The following numbers have been taken from MO’s MIS: i). rural-urban clients; ii). male-female
clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
Rural Community Development Program (RCDP)• RCDP provided PMN its audited accounts. The numbers reported in the PMR match these reports. • RCDP prepares its financial statements under the historical cost convention and in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; iv). Number of credit officers; and v). Number of branches (also available in audited accounts).
SAFCO Support Fund (SAFCO)• SAFCO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Deloitte Yousuf Adil audited the annual accounts for SAFCO for the year ending at 30th June 2016.• All necessary adjustments to SAFCO data have been made in order to remove subsidies. • SAFCO prepares its financial statements under the historical cost convention and in conformity
with accepted accounting practices.• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; and iv). Number of credit officers. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
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Saath Development Society (SDS)• SDS provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Moochhala Gangat & Co. has audited the annual accounts of SDS for the year ending at 30th June 2016.
• SDS prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
• All necessary adjustments to data have been made in order to remove subsidies. • The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; and iv). Number of credit officers. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Shadab Rural Development Organization (SRDO)• SRDO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Junaidy Shoaib Asad has audited the annual accounts of SRDO for the year ending at 30th June 2016.
• SRDO prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
• All necessary adjustments to data have been made in order to remove subsidies. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Sindh Rural Support Organization (SRSO)• SRSO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
EY Ford Rhodes has audited the annual accounts of SRSO for the year ending at 30th June 2016.• SRSO prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The related party transactions have been properly disclosed in notes to the financial • The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; and iv). Number of credit officers.
Soon Valley Development Program (SVDP)• SVDP provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Horwath Hussain Chaudhury and Co. has audited the annual accounts of SVDP for the year ending at 30th June 2016.
• SVDP prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
• All necessary adjustments to data have been made in order to remove subsidies. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Villagers Development Organization (VDO)• VDO provided PMN its audited accounts. The numbers reported in the PMR match these reports.
Moochhala Gangat and Co. has audited the annual accounts of VDO for the year ending at 30th June 2016.
• VDO prepares its financial statements under the historical cost convention, in conformity with accepted accounting practices.
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• All necessary adjustments to data have been made in order to remove subsidies. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Rural Support Programme (RSP)
National Rural Development Program (NRSP)• NRSP provided PMN its audited accounts. The numbers reported in the PMR match these reports.
EY Ford Rhodes has audited the annual accounts of NRSP for the year ending at 30th June 2016.• NRSP prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• All necessary adjustments to data have been made in order to remove subsidies. • The grant income has been properly disclosed in financial statements. Additionally, there is proper
disclosure on grants in notes to the financial statements.
Punjab Rural Support Programme (PRSP)• PRSP has provided its audited accounts for the reporting period to PMN. A.F Ferguson and Co.
audited the annual accounts for PRSP for the year ending at 30th June 2016.• All necessary adjustments to PRSP data have been made in order to remove subsidies. • PRSP prepares its financial statements under the historical cost convention, in conformity with
accepted accounting practices.• The grant income has been properly disclosed in financial statements and there is a proper
disclosure on grants in notes to the financial statements.• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; and iv). Number of credit officers.
Thardeep Microfinance Foundation (TMF)• TMF has provided its audited accounts to PMN. Grant Thornton (Anjum Rahman) audited the
annual accounts for TMF for the year ending at 30th June 2016.• All necessary adjustments to TMF data have been made in order to remove subsidies. • TMF prepares its financial statements under the historical cost convention in conformity with
accepted accounting practices.• The following numbers have been taken from the organization’s MIS: i). rural-urban clients; ii).
male-female clients; iii). Number of staff; and iv). Number of credit officers.
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RationaleAdjustments to financial statements are made when doing benchmark analysis. Adjustments are made for two primary reasons:
• To give an institution a more accurate picture of its financial position, by accounting for factors unique to an MFP including the predominance of below-market-rate funding sources. Such factors distort an MFP’s on-going performance.
• To make the data of various MFPs comparable. Thus, adjustments are made in order to bring organizations operating under varying conditions and with varying levels of subsidy onto a level playing field.
The following adjustments are made to data used for the PMR:
A. Inflation AdjustmentInflation adjustment adjusts for the effect of inflation on an MFP’s equity and non-monetary assets i.e., fixed assets. Inflation decreases the real value of an MFP’s equity. Fixed assets are capable of tracking the increase in price levels; their monetary value is increased. The net loss (or gain) is considered to be a cost of funds, and results in a decrease (or increase) in net operating income.
Annexure D Adjustments to Financial Data
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Calculation of inflation adjustment
Inflation adjustment revenueNet Fixed Assets (Prior Year) X Average Annual Inflation Rate (Current Financial Year)
Inflation adjustment expenseEquity (Prior Year) X Average Annual Inflation Rate (Current Year)
Net inflation adjustment expenseInflation Adjusted Revenue – Inflation Adjusted Expense
B. Subsidies adjustmentAdjustments for three types of subsidies are made:
• A cost-of-funds subsidy from loans at below-market rates• Current year cash donations to fund portfolio and cover expenses• In-kind subsidies, such as rent-free office space or the services of personnel not paid by the MFP
and thus not reflected on its income statement.
Additionally, for multipurpose MFPs, an attempt to isolate the performance of the financial services program is made by removing the effect of any cross-subsidization. Cash donations flowing through the income statement are accounted for by reclassifying them below net operating income on the income statement. Thus, adjustments for cash donations are not made since these are handled through a direct reclassification on the income statement. This year no MFP has disclosed receipt of in-kind subsidy.
B.1 Cost-of-funds subsidyThe cost-of-funds adjustment reflects the impact of soft loans on the financial performance of an MFP. The analyst needs to calculate the difference between what an MFP actually paid in interest on its subsidized liabilities and a shadow market rate for each country. This difference represents the value of the subsidy, considered an additional financial expense. Only funds received as loans need to be adjusted. Client deposits are not adjusted. Only loans that have a finite (1-5 years) term length are adjusted. Subordinated debt and other quasi-equity accounts are reclassified as ‘other equity’ on the balance sheet.
Care is taken in the choice of an appropriate shadow rate thus, PMN has used the KIBOR rate on outstanding loans as reported by the State Bank of Pakistan on its website (12.5%) to make this adjustment.
Calculation of cost-of-funds subsidy
1. Calculate average balance for all borrowings. Borrowings do not include deposits or “other liabilities”. If an MFI has given an average balance, see if this is more appropriate to use; if not, calculate average from last year’s ending balance.
2. Multiply the average balance by the shadow market rate3. Compare with the amount actually paid in interest and fees. If less “market” rate, impute the
difference (market price minus Financial Expense paid on Borrowings) to the Subsidized Cost of Funds Adjustment Expense
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B.2 Cash donationsFunds donated to cover operational costs constitute a direct subsidy to an MFP. The value of the subsidy is therefore, equal to the amount donated to cover expenses incurred in the period reported. Some donations are provided to cover operating shortfall over a period greater than one year. Only the amount spent in the year is recorded on the income statement as revenue. Any amount still to be used in subsequent years appears as a liability on the balance sheet (deferred revenue). This occurs because theoretically, if an MFP stopped operations in the middle of a multi-year operating grant, it would have to return the unused portion of the grant to the donor. The unused amount is therefore, considered as a liability.
Funds donated to pay for operations should be reported on the income statement separately from the revenue generated by lending and investment activities. This practice is meant for accurately reporting the earned revenue of an MFP. Donated funds are deducted from revenue or net income prior to any financial performance analysis because they do not represent revenue earned from operations.
Note: Costs incurred to obtain donor funds (fundraising costs) should also be separated from operating expenses, because the benefit of receiving the funds is not included.
B.3 In-kind subsidyImputed cost (book value) of donated/loaned-out vehicles, machinery and buildings need to be included in operating expenses. Expatriate staff salaries paid by donor or parent company, or other technical assistance, need to be accounted for. Here, imputed salaries are used instead of salaries actually received by them i.e., the salary range that a local hire would get for the same level of work-load/position is used.Note: The analyst must use his/her judgment in deciding whether or not the in-kind donation represents a key input to the on-going operations of the MFP. An appropriate basis for valuation is important. This could include selecting a percentage of the total cost and attributing it to program expense. The percentage may be selected on the basis of sales proportion, management input, etc.
Calculation of in-kind subsidy
Sum of in-kind subsidies by operating expense account, added to unadjusted numbers for each account.
C. Loan loss provisioningPMN standardizes loan loss provisioning for MFPs to a minimum threshold or risk. MFPs vary tremendously in accounting for loan delinquency. Some count the entire loan balance as overdue the day a payment is missed. Others do not consider a loan delinquent until its full term has expired. Some MFPs write off bad debt within one year of the initial delinquency, while others never write off bad loans, thus carrying forward a default that they have little chance of ever recovering.
The analyst applies a standard loan loss provisioning to all MFPs and adjusts, where necessary, to bring them to the minimum threshold. In some cases, these adjustments may not be precise. Portfolio aging information may only be available on different aging scales.
Calculation of loan loss provisioning
Step 1:Multiply the PAR age categories by the following reserve factors:PAR up to 89 days no provisioningPAR 91 – 180 x 0.50PAR 181 – 360 x 1.00Renegotiated loans x 0.50
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Step 2:Sum above reserve calculations. If sum is more than current reserves make calculated reserve new Loan Loss Reserve. If not, keep current reserves.
Step 3:Add the Unadjusted Loan Loss Provision Expense to the difference between the Adjusted Net Loan Portfolio and the Unadjusted Net Loan Portfolio. This is the Adjusted Loan Loss Provision Expense.
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AgeNumber of years an organization has been functioning as a microfinance provider (MFP).
Active Saving Account BalanceIt is the average balance of savings per account (not per depositor).
Adjustment ExpenseTotal adjustment cost related to inflation, subsidized cost of borrowing, loan loss provisioning and in-kind subsidies.
Adjusted Financial Expense RatioIt is calculated by using standardized ageing-of-portfolio technique. The principle of conservatism is used which is why loan loss provision in audited accounts is greater than the amount computed by the analyst.
Adjusted Loan Loss ReserveFormula:Adjusted Financial ExpenseAdjusted Average Total Assets
Adjusted Operating ExpenseAlso included in operating expense:• Imputed cost (book value) of donated/loaned vehicles, machinery and buildings• Expatriate staff salaries paid by donor or parent company• Other technical assistance paid for with donations
NOTE: Imputed salaries should be used instead of salaries actually received by such persons, thus salary range that a local hire would get for the same level of work-load/position should be used. Judgment is used to decide whether or not the in-kind donation represents a key input to the on-going operations of the MFP
Annexure ETerms and Definitions
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Formula:Personnel Expense + Administrative Expense
Adjusted Operating Expense RatioFormula:Adjusted Operating ExpenseAdjusted Average Total Assets
Adjusted Portfolio at Risk > (30, 60, 90 Days)Indicates the credit risk of a borrower above the specified number of days (30, 60, 90) past his/her due date for installment payment.Formula:Outstanding balance less loans overdue > (30 or 60 or 90) DaysAdjusted Gross Loan Portfolio
Adjusted Cost per BorrowerIt accounts for loan size differentials, generally operating expense ratio is lower (more efficient) for institutions with higher loan sizes, ceteris paribus. This indicator discounts the effect of loan size on efficient management of loan portfolio.Formula:Adjusted Operating ExpenseAverage Number of Active Borrowers
Adjusted Cost per LoanFormula:Adjusted Operating ExpenseAverage Number of Active Loans
Adjusted Financial ExpenseIt includes actual cost of borrowing and shadow cost of subsidized funding.
Adjusted Financial Expense on BorrowingThe cost-of-funds adjustment reflects the impact of soft loans on the financial performance of the institution. The analyst calculates the difference between what the MFP actually paid in interest on its subsidized liabilities and what it would have paid at a shadow market rate for each country. This difference represents the value of the subsidy, considered an additional financial expense.
Adjusted Loan Loss Provision Expense RatioFormula:Adjusted Net Loan Loss Provision ExpenseAdjusted Average Total Assets
Adjusted Loan Loss Provision ExpenseLoan loss provision expense calculated with standardized ageing-of-portfolio technique. It is however ensured that if the actual loan loss provision expense is higher than the adjusted then the conservatism principle is followed.
Adjusted Operating ExpenseIt includes actual operational expenses and in-kind subsidy adjustments.
Adjusted Operating Expense RatioIt indicates efficiency of an MFP’s loan portfolio.Formula:Adjusted Operating ExpenseAverage Gross Loan Portfolio
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Adjusted Personnel ExpenseIncludes actual personnel expenses (salaries and benefits), and in-kind subsidy adjustments.
Adjusted Personnel Expense RatioFormula:Adjusted Personnel ExpenseAverage Gross Loan Portfolio
Adjusted Profit MarginFormula:Adjusted Net Operating IncomeAdjusted Financial Revenue
Adjusted Return on AssetsFormula:Adjusted Net Operating Income, net of taxesAverage Total Assets
Adjusted Return on EquityFormula:Adjusted Net Operating Income, net of taxesAverage Total Equity
Adjusted Total ExpenseIncludes all actual and adjusted expenses related to operations, cost of borrowings, loan losses and inflation adjustment.
Adjusted Total Expense RatioFormula:Adjusted (Financial Expense + Net Loan Loss Provision Expense + Operating Expense) Cost Average Total Assets
Average Gross Loan PortfolioAverage of opening and closing balance of Gross Loan Portfolio (GLP).
Average Loan Balance per Active BorrowerIndicates average loan balance outstanding.
Average Loan Balance per Active Borrower to Per Capita IncomeUsed to measure depth of outreach. The lower the ratio the more poverty-focused the MFP.
Average Number of Active BorrowersIt is average of opening and closing balance of active borrowers.Formula:[Active Borrowers (Opening Balance) + Active Borrowers (Closing Balance)] 2
Average Number of Active LoansAverage of opening and closing balance of active loans
Average Outstanding BalanceIt indicates the average balance of loans outstanding.Formula:Adjusted Gross Loan PortfolioAdjusted Number of Loans Outstanding
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Average Outstanding Balance to Per Capita IncomeIt is a measure of depth of outreach. The lower the ratio the more poverty-focused the MFP.Formula:Average Outstanding BalancePer Capita Income
Average Saving Balance per SaverIt indicates average amount of saving balance per saver.
Average Total AssetsIt is average of opening and closing balance of total assets.
Average Total EquityIt is average of opening and closing balance of total equity.
Borrowers per Loan OfficerIt is a measure of loan officer productivity. It indicates the number of borrowers managed by a loan officer.Formula:Number of Active BorrowersNumber of Loan Officers
Borrowers per StaffIt is a measure of staff productivity. It indicates the number of borrowers managed by the staff on average.Formula:Number of Active BorrowersNumber of Total Personnel
Commercial LiabilitiesIt is principal balance of all borrowings, including overdraft accounts, for which the organization pays a nominal rate of interest that may be greater than or equal to the local commercial interest rate.
Commercial Liabilities-to-Gross Loan Portfolio RatioIt indicates efficiency of an MFP’s loan portfolio.Formula:All liabilities with “market” priceGross Loan Portfolio
Deposits Demand deposits from the general public and members (clients) held with the institution. These deposits are not conditional to accessing a current or future loan from the MFP and include certificates of deposit or other fixed term deposits.
Deposit-to-Gross Loan Portfolio RatioIt is inverse of the advance-to-deposit ratio.Formula:DepositsGross Loan Portfolio
Deposit-to-Total Asset RatioIndicates the percentage of assets financed through deposits.Formula:DepositsTotal Assets
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Equity-to-Asset RatioThis is a simple version of the capital adequacy ratio as it does not take in to account risk weighted assets. This ratio indicates the proportion of a company’s equity that is accounted for by assets.Formula:Total EquityTotal Assets
Financial ExpenseThis is total of financial expense on liabilities and deposits.
Financial RevenueThis is the total revenue from loan portfolio and other financial assets, as well as other financial revenue from financial services.
Financial Revenue from Other Financial AssetsThis is net gains on other financial assets.
Financial Revenue from Loan PortfolioThis is total interest, fees and commission on loan portfolio.
Financial Revenue RatioIndicates the efficiency with which an MFP is utilizing its assets to earn income from them.Formula:Financial RevenueAverage Total Assets
Financial Self-SufficiencyFormula:Financial RevenueAdjusted (Financial Expense + Net Loan Loss Provision Expense + Operating Expense + Inflation Adjustment)
Gross Loan PortfolioIt is the outstanding principal for all outstanding client loans, including current, delinquent and restructured loans. It does not include:
• Loans that have been written-off• Interest receivable• Employee loans
For accounting purposes GLP is categorized as an asset.
Gross Loan Portfolio-to-Total Asset RatioIndicates the efficiency of assets deployed in high yield instruments and core business of an MFP.Formula:Gross Loan PortfolioTotal Assets
Inflation Adjustment Expense31
Inflation decreases the real value of an MFP’s equity. Fixed assets are considered to track the increase in price levels, and their value is considered increased. The net loss (or gain) is treated as a cost of funds, is disclosed on the income statement, and decreases net operating income.
31 PMN adjusts for the effect of inflation on an MFP’s equity and its non-monetary assets - essentially fixed assets - on its balance sheet.Sect
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Inflation RateLatest annualized consumer price index (CPI) as reported by the State Bank of Pakistan.
Liabilities-to-Equity Ratio (debt-equity ratio)Formula:Total LiabilitiesTotal Equity
Loan Loss Provision ExpenseIt is the sum of loan loss provision expense and recovery on loan loss provision.
Loans per Loan OfficerFormula:Number of Active LoansNumber of Loan Officers
Loans per StaffFormula:Number of Active LoansNumber of Personnel
Net Adjusted Loan Loss Provision Expense32
It is the sum of loan loss provision expense and recovery on loan loss provision. MFPs vary tremendously in accounting for loan delinquency. Some count the entire loan balance as overdue the day a payment is missed. Others do not consider a loan delinquent until its full term has expired. Some MFPs write off bad debt within one year of the initial delinquency, while others never write off bad loans, thus carrying forward a defaulting loan that they have little chance of ever recovering.
Number of Active BorrowersNumber of borrowers with loan amount outstanding.
Number of Active LoansThe number of loans that have been neither fully repaid nor written off, and thus that are part of the MFP’s gross loan portfolio.
Number of Active Women BorrowersNumber of women borrowers with loan amount outstanding.
Number of Active Women Borrowers to total Active BorrowersIt indicates percentage of women borrower to total active borrowers.
Number of Loans OutstandingIt is the number of loans outstanding at the end of the reporting period. Depending upon the policy of an MFP one borrower can have two loans outstanding; hence, the number of loans could be more than the number of borrowers.
Number of SaversIt is the number of depositors maintaining voluntary demand deposit and time deposit accounts with an MFP.
32 PMN applies a standard write-off and loan loss provisioning to all MFPs, and adjusts, where necessary, to bring them to the minimum threshold.
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Number of Saving Accounts
One depositor can have more than two deposit accounts. Hence, the number of deposit accounts could be more than the number of depositors.
Number of Women SaversIt is the number of women savers with voluntary demand deposit and time deposit accounts.
OfficesThe total number of staffed points of service (POS) and administrative sites (including head office) used to deliver or support the delivery of financial services to microfinance clients.
Operating ExpenseTotal of Personnel Expense and Administrative Expense.
Operational Self-SufficiencyFormula:Financial Revenue(Financial Expense + Net Loan Loss Provision Expense + Operating Expense)
Per Capita IncomeAverage income per person.
Percentage of Women Savers to Total SaversThe percentage of women in the total saving portfolio.
PersonnelThe number of individuals actively employed by an MFP. This number includes contract employees and advisors who dedicate the majority of their time to the organization, even if they are not on the MFP’s roster of employees. This number is expressed as a full-time equivalent, such that an advisor who spends 2/3 of his/her time with the MFP is accounted for as 2/3 of a full-time employee.
Personnel Allocation RatioThe higher the indicator the more lean the head office structure of the organization. This indictor is used to measure organizational efficiency.Formula:Loan OfficersTotal Staff
Risk Coverage RatioIndicates the provision created by an MFP against its credit risk.Formula:Adjusted Loan Loss ReservePAR > 30 Days
Saving OutstandingTotal value of demand deposit and time deposit accounts.
Savers per StaffFormula:Number of SaversNumber of Personnel
Loan Loss Provision ExpenseThe sum of loan loss provision expense and recovery on loan loss provision.
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Loans per Loan OfficerFormula:Adjusted Loan Loss ReservePAR > 30 Days
Total AssetsTotal net asset accounts i.e., all asset accounts net of any allowance. The one exception to this is the separate disclosure of the gross loan portfolio and loan loss reserve.
Total EquityEquity represents the worth of an organization net of what it owes (liabilities). Equity accounts are presented net of distributions, such as dividends.Formula:Total Assets – Total Liabilities
Total LiabilitiesLiabilities represent the borrowings of an organization i.e., the amount owed. Examples of liabilities include loans, and deposits. This number includes both interest and non-interest bearing liabilities of an MFP.
Total Number of Loan OfficersThe number of staff members who dedicate the majority of their time to direct client contact. Front office staff include more than those typically qualified as credit or loan officers. They may also include tellers, personnel who open and maintain accounts—such as savings accounts—for clients, delinquent loan recovery officers, and others whose primary responsibilities bring them in direct contact with microfinance clients.
Loan Written Off during YearThe value of loans written off during the year.
Write-Off RateFormula:Loans written off during the yearAverage Gross Loan Portfolio
Yield on Gross Portfolio (Nominal)Indicates the yield on an MFPs loan portfolio and is usually used as a proxy to look at MFPs (realized) effective interest rate.Formula:Financial Revenue from Loan PortfolioAverage Gross Loan Portfolio
Yield on Gross Portfolio (Real)It is the number of depositors maintaining voluntary demand deposit and time deposit accounts with an MFP.Formula:(Yield on Gross Portfolio (nominal) - Inflation Rate)(1 + Inflation Rate)
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F I N A N C I A L S E R V I C E S F O R A L L
Pakistan Microfinance Network
3rd Floor, Mandir Square, Block 12-C/2, G-8 Markaz, Islamabad, Pakistan.TEL. +92 51 226 6215-17, +92 51 229 2231 FAX. +92 51 226 6218
www.pmn.org.pk
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