1. Elizabeth Larson
Regional Manager for Asia, MIX Market
2009 RBAP-MABS National Roundtable Conference
May 12-13, 2009
Hyatt Hotel and Casino
Manila

2. What is the MIX?
OUR MISSION:
To support the growth of the microfinance
industry through a world-class public
information platform

3. The Problem: Overcoming data
dearth
 Limited ability for MFIs and banks to benchmark
Lack of performance for management diagnostic and
transparency business planning
stymies industry  New capital cannot connect with second tier MFIs
growth
 Policy makers have limited picture of areas requiring
support
… because …
 Lack of consistent, reliable data in public domain
 Private data costly to aggregate on representative
scale and coverage for any single actor

4. MIX delivers
Standards  The authoritative voice on definitions and selection
of core indicators for microfinance data analysis
Data  The leader in fundamental MFI data for banks and
other institutions
 An independent source – no other business interest
Analysis
 The researcher’s choice for MFI performance
benchmarks and global, regional analysis including
banks with microfinance operations
Company data – on MFIs, Banks & Investors
Through MFI performance data – individual and in aggregate
Training – financial & operational reporting
Leadership – performance standards

5. Products: MicroBanking Bulletin
MicroBanking Bulletin is a
global leading publication
on the sector
 xpert author contributions on
E
latest industry topics
 ndustry leading annual / time
I
series MFI performance
benchmarks and analysis

6. Products: Customized MFI
performance reports, CPRs
Performance reports for
MFIs, covering:
 nalysis of trends in performance
A
 omparison to peer institution
C
benchmarks
Diagnostic tools for:
 anagers
M
 oard
B
 takeholders
S

7. Products: MIX Market
Public profiles:
 ,400 MFIs
1
 03 Investors / Donors
1
 84 Market Facilitators
1
Information:
 eneral information and contacts
G
 utreach
O
 inancial Performance
F
 udits / Ratings
A
Tools:
 omparative Analysis
C
 rend Analysis
T
 eat Map
H

8. Asia Coverage: MIX Market Growth
70
60
50
Cambodia
40
China
Indonesia
30
Philippines
Vietnam
20
10
0
1900 1900 1900 1900 1900 1900 1900 1900
2000 2001 2002 2003 2004 2005 2006 2007

9. Products: Regional/Country
analysis Annual surveys of
microfinance performance
in a region or country,
including:
 erformance analysis
P
 ector development
S
 ocal performance benchmarks
L
 ome latest reports: including
S
Asia 2008 report, Global 100
Benchmarking Report, MCPI report
Written, published and
disseminated with local
partners

10. Working with Partners
MIX Partners (examples):
Latin America
• ProDesarrollo
• REDCAMIF (C. America)
• COPEME (Peru)
• RFR (Ecuador)
• ASOFIN (Bolivia)
Africa
• Ghamfin (Ghana)
• AEMFI (Ethiopia)
Arab States
• Sanabel
E. Europe / C. Asia
• RMC (Russia)
• AMFA (Azerbaijan)
Asia
• PMN (Pakistan)
• M-Cril (India)
• RBAP (Philippines)
• MCPI (Philippines)
• MICRA (East Asia)

11. How can you use this information?
 Understand sector trends
 Set the context for rural banks
 Compare your rural bank

12. Asia Trends: Growth
Philippines
6%
Cambodia Cambodia
5% Others 9%
0%
Philippines Vietnam Vietnam
4% 25% 21%
Indonesia Indonesia
Others 64%
66%
0%
Loan Portfolio 2006 Loan Portfolio 2007
Cambodia and Philippines lead portfolio growth in East Asia, with
borrowers growing by 32% and 36%.

13. Asia Trends: Funding Patterns
Country Equity Liabilities
Afghanistan
Afghanistan 20% 84% Bangladesh
Bangladesh 21% 48% Cambodia
Higher Growth in Cambodia 18% 130% India
Indonesia
Debt Nepal 11% 31%
Nepal
Pakistan 5% 36% Pakistan
Vietnam 66% 82% Philippines
Higher Growth in Sri Lanka
Equity India 216% 91% Vietnam
Indonesia 25% 27% 0% 20% 40% 60% 80% 100%
Equal growth in Philippines 77% 72%
Debt / Equity Vol. Deposits Borrowings
Sri Lanka 20% 28%
Comp. Savings Other Debt
As leverage increases in Asian microfinance, countries with savings
based funding (incl. Philippines) keep stable funding structure.

14. Asia Trends: Returns
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Asia Afgh. Bangla. Camb. India Indo. Nepal Pak. Phil.
RoA 2006 RoA 2007 RoE 2006 RoE 2007
Asia returns are stable, with slight increase in returns on equity from
higher leverage. Returns on equity in the Philippines are increasing
especially in 2007.

15. Asia Trends: Efficiency
100% 100
80% 80
60% 60
40% 40
20% 20
0% -
06 07 06 07 06 07 06 07 06 07 06 07 06 07 06 07 06 07
Asia Afgh. Bangla. Camb. India Indo. Nepal Pak. Phil.
Cost Per Borrower Operating Expense / GLP
Asian efficiency remains stable, with biggest gains in developing
Afghan sector. Indian subcontinent leads through group lending but
Philippines is improving.

16. How can you use this information?
 Understand sector trends
 Set the context for rural banks
 Compare your rural bank

17. Rural Banks: Size
12,000,000 20,000
18,000
10,000,000
16,000
14,000
8,000,000
12,000
6,000,000 10,000
8,000
4,000,000
6,000
4,000
2,000,000
2,000
- -
Asia Philippines Asia Rural Bank Indonesia Rural Philippines
Bank Rural Bank
Assets Loans Deposits Borrowers Depositors
Philippine rural banks are much larger than regional peers with the
greatest number of depositors and borrowers.

18. Rural Banks: Deposit funding
120%
100%
80%
60%
40%
20%
0%
Asia Philippines Asia Rural Bank Indonesia Rural Philippines
Bank Rural Bank
Capital/ Asset Ratio Deposits to Loans
Rural banks have same leverage as peers, with Philippine Rural
Banks having the highest deposit to loan ratio.

19. How can you use this information?
 Understand sector trends
 Set the context for rural banks
 Compare your rural bank

20. Strong returns …
35,000 7%
30,000 6%
25,000 5%
20,000 4%
15,000 3%
10,000 2%
5,000 1%
- 0%
(5,000) -1%
Philippines Indonesia Rural Philippines Rural MIX Super Bank
Bank Bank
Borrowers Loan Portfolio (USD '000 ) Return on Assets Return on Equity
“MIX Super Bank” serves 2x more borrowers than peer rural banks,
and earns higher returns. What drives returns?

21. … from high revenues …
35%
30%
25%
20%
15%
10%
5%
0%
Philippines Indonesia Rural Philippines Rural MIX Super Bank
Bank Bank
Total Expense/ Assets Financial Revenue/Assets
“MIX Super Bank” has much higher (+33%) revenues to cover costs
and still maintain strong returns. What drives revenues and costs?

22. … from high yield and allocation …
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Philippines Indonesia Rural Philippines Rural MIX Super Bank
Bank Bank
Portfolio Yield Financial Revenue/Assets Portfolio to Assets
“MIX Super Bank” has higher yield, and maximizes its yield through
high asset allocation to portfolio. What about costs?

23. … but high costs …
35%
30%
25%
20%
15%
10%
5%
0%
Philippines Indonesia Rural Philippines Rural MIX Super Bank
Bank Bank
Operating Expense / Assets Provision for Loan Impairment/ Assets
Financial Expense/Assets
“MIX Super Bank” has higher costs due to higher operating
expenses. What drives its higher operating costs?

24. … due to salary structure.
120 450%
400%
100
350%
80 300%
250%
60
200%
40 150%
100%
20
50%
- 0%
Philippines Indonesia Rural Philippines Rural MIX Super Bank
Bank Bank
Borrowers per Staff Member Average Salary/ GNI per Capita
“MIX Super Bank” maintains same productivity as peers, but high
salary structure raises costs. So, in summary …

25. Summary
MIX Super Philippines Philippines Indonesia Rural
Bank Rural Bank Bank
Return on Assets 1% 1% 1% -1%
Financial Revenue/Assets 31% 31% 22% 24%
Total Expense/ Assets 29% 31% 22% 23%
Portfolio Yield 35% 43% 30% 29%
Portfolio to Assets 83% 66% 67% 69%
Financial Expense/Assets 5% 5% 5% 10%
Provision for Loan Impairment/ 2% 2% 1% 3%
Assets
Operating Expense / Assets 22% 23% 12% 9%
Average Salary/ GNI per Capita 427% 239% 261% 195%
Borrowers per Staff Member 100 109 95 48
Despite high salary structure, “MIX Super Bank” achieves high
returns through strong yield and asset allocation.

26. Benefits to you
 Realistic context on the market
 Benchmarks for peer performance
 Quick identification of strengths, weaknesses, and
drivers of performance
 Comparable information recognized globally by
1000s of microfinance providers, 100s of investors,
and regulators and networks.
 CPRs are FREE to participating banks!!!

27. How to participate
 Provide current data to MABS or MCPI
 Audited financial statements
 One page questionnaire (outreach, product,
portfolio, background of organization)
 Deadline: August 2009 – elarson@themix.org
 All benchmarked institutions receive
 Custom Performance Report
 Trend Report (with 2-3 years data)
 Recognition in MicroBanking Bulletin (MBB)
 Inclusion in analytical reports
 Profile on MIX Market site for global visibility

28. MICROFINANCE INFORMATION EXCHANGE, INC.
The leading provider of business information and data services for the
microfinance industry.
THANK YOU!!!
Web: www.themix.org
Email: info@themix.org
Headquarters:
1901 Pennsylvania Ave., NW, Suite 307
Washington, D.C. 20006 USA
Other Locations
Lima, Peru ● Dakar, Senegal ● Gurgoan, India ● Jakarta, Indonesia