2012 nepal country snapshot
TRANSCRIPT
The Premier Source for Microfinance Data and Analysis
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Microfinance Information Exchange
2012 Nepal Snapshot
CMF Nepal Microfinance Conference, Feb 14, 2013, Yak and Yeti Hotel, Kathmandu, Nepal
By Deepika Kumari and Liz Larson
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
MIX BasicsContents of the presentation
Introduction
Profitability
Efficiency
Funding
Risk
2
What can we learn about Nepal’s microfinance market with MIX data?
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
MIX Basics
MFI
Donors and Investors
Raters
MFI Networks
Regulators
What is MIX?
2,100+ MFIs
150 Networks
200 Funders
300 Service Providers
3What can we learn about Nepal’s microfinance market with MIX data?
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Nepal in South Asia
Avg Loan Size:
21,671 NPR Ris
ing
2008 2009 2010 201129
30
31
32
33
34
35
36
37
38
Nepal's MIX MFIs
37
MFIs
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Growth rates in key areas
1,713 Crore NRS212 Million USD
Loan Portfolio 37 %
807,312Borrower
s 9 %
741 Crore NRS91 Million USD
Deposits53 %
1.4 MillionDepositor
s 40 %
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
• Growth driven by Rural Banks• All legal form growing
What institutions are driving this growth?
2008 2009 2010 2011 -
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
GLP by Legal Status
Rural Bank
Bank
Credit Union / Cooperative
NGO
The GLP and Borrowers Graphs depicts the Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Are loan sizes contributing to this growth?
2008 2009 2010 20110
50
100
150
200
250
300
350
400
0%
10%
20%
30%
40%
50%
60%
70%
80%
ALB USD
ALBGNI
Average Loan Balance
The ALB GNI is the Weighted Average % of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThe ALB USD is the Average Loan Balance (ALB USD= Totals of GLP divided by Total of Borrowers) of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM
• Average loan balance growing• In context of economic growth, not much difference
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
How profitable are Nepali MFIs?
The ROA Graphs is the weighted Average of a Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM
• ROA and ROE steadily increasing• Global context: high ROE
Kyrgyzstan
Cambodia
Brazil
Nigeria
Georgia
Benin
Ghana
Nepal
Indonesia
Uzbekistan
0% 5% 10% 15% 20% 25% 30% 35%
ROE, top 10 Countries
ROE
2008 2009 2010 20110.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Nepal, ROA and ROE
ROEROA
Perc
ent
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Efficiency: an analysis of costs
The Expense Graph depicts Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM
• MFIs’ cost of funds increasing, but not dramatically• Yields rising in tandem• All other expense categories extremely stable
2008 2009 2010 20110.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Deconstruction of Expenses
Financial ExpenseProvision for Impairment LossPersonnel ExpenseAdministriative ExpenseFinancial Revenue
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
A deeper look at funding…..
2008 2009 2010 20110%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Liabilities and Equity Structure
DepositsBorrowingsEquity
The Liabilities and Equity Structure Graphs depicts Totals of the Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MMThe Borrowings (USD) is the Totals of data extract from FSDB tools on MM- unbalanced Panel of MFI’s in Year 2011 only.
• Some institutions now allowed to mobilize public deposits
• Domestic borrowings and deprived sector lending still key
• Slight increase in equity, likely due to Nepal’s stellar ROE
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
The above table is an extract from the FSDB tool on Mix Market representing all the MFI’s in 2011.The Borrowings of MFI (USD) is the Totals of data extract from FSDB tools on MM- unbalanced Panel of all MFI’s in Year 2011.
2008 2009 2010 20110%
1%
2%
3%
4%
5%
6%
7%
8%
9%
DFIGovernmentOtherFinancial Institution
Funding interest rates trend
A deeper look at funding…..II
• Huge increase between 2009 and 2010• Slight decrease last year as liquidity crisis subsided
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
2008 2009 2010 20110%
2%
4%
6%
8%
10%
12%
14%
16%
18%
PAR > 30
%
How risky are microfinance clients in Nepal?
The PAR Graphs is the weighted Average of a Balanced Panel of 24 MFI’s reported through 2008 to 2011 on MM
• PAR decreasing dramatically in recent years
Bangladesh: 6.5%
India: 24%
Pakistan: 5%
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
In conclusion . . .
Thank you
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
MIX partners with a dedicated group of industry leaders:
MIX Global and Project Partners
This presentation is the proprietary and/or confidential information of MIX, and all rights are reserved by MIX. Any dissemination, distribution or copying of this presentation without MIX’s prior written permission is strictly prohibited.
Visit us on the Web:
www.themix.org www.mixmarket.org
Contact us: [email protected]
Interested in learning more about MIX? Sign up to receive our free e-mail
newsletters!
Find us on Facebook Follow us on Twitter: @mix_market
Regional Offices:
Baku, Azerbaijan 44 J. Jabbarli st. Caspian Plaza I, 5th Floor,
Baku, Azerbaijan
Lima, Peru Jirón León Velarde 333 Lince, Lima 14, Perú
Rabat, Morocco Immeuble CDG Place Moulay Hassan
BP 408 Rabat Morocco
Hyderabad, IndiaRoad #12, Landmark Building, 5th Floor,Banjara Hills, Hyderabad 500034, India
Microfinance Information Exchange
Headquarters:
1901 Pennsylvania Ave., NW, Suite 307
Washington, D.C. 20006 USA