SANABEL's sixth annual conference
Beirut – May 2009
Charles Cordier
Lead analyst –Africa and MENA
MIX ( Microfinance Information Exchange)
2008 MIX Global 100 Composite Rankings
Background• Why a Composite Ranking?
– Rankings on single results are too simplistic– Performance has many aspects to it– Composite creates a picture of well rounded MFI, balanced scorecard
• What performance does it attempt to measure?– Build long term profitability– Increase access to financial services– Minimize costs of those services– Disclose results
How does it work• Sample
– FY07 results published in MIX Market– 971 MFIs, 651 included in ranking
• Process– Remove MFIs with missing data– Exclude MFIs that do not meet minimum profitability
requirements– Rank MFIs by 11 individual variables– Average ranks by performance area or “pillar” (i.e.
outreach)– Average performance area rankings for overall ranking
• Methodology: Percentile ranking
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Profitability
Full sample (971 MFIs)
Screened for profitability (651 MFIs)
Ranked on 11 variables under three pillars:
Outreach (1)
Efficiency (2)
Transparency (3)
MFIs ranked according to percentile scores, averaged across the following variables (example for MBK Ventura, ranked #1 in 2008 MIX Global 100: Composite Rankings)
Pillar Metric Result (by metric)
Percentile (by metric)
Percentile (by pillar)
Percentile (overall)
1
Borrowers 64,548 83.20%
72.58%
87.10%
Market Penetration 0.2% 56.20%
Growth in Borrowers 135.8 % 94.90%
Deposits / Loan Portfolio
0.0%56.60%
Depositors / Borrowers 0.0%
2
Cost per Borrower / GNI per capital
0.9% 96.50%
88.73%Profit / Loan Portfolio 0.4% 88.70%
Portfolio at Risk > 30 days
0.0%81%
Write off ratio 0.0%
3
Audits on MIX Market 4 100.00%100.00%Annual reporting on
MIX Market3 100.00%
Methodology
Distribution by Charter
NGOs dominate top 25 to top 500 rankings
Banks represented a smallgroup in the overall ranking; yet, half their sample claimed spots in the top 100
8 in 10 MFIs from top 10 are « for profits » ones.
Distribution by Region
Latin America ranked most MFIs, 28 in top 100. 7 MFIs from Colombia and 6 from Ecuador.
Asia gets 9 MFIs in top 10 thanks to their size (borrowers), growth in borrower and efficiency.
14 Arab region MFIs are included in top 100, with higher regional representation in top 100 than any other region, given the small number of MFIs from the region.
MENA Ranking
• 26 Arab MFIs in the Top 500 ranking
• 5 goes down and 7 goes up from 2006 and 2007
Arab MFIs
Top 10 1
Top 25 4
Top 50 7
Top 100 13
Morocco 6
Egypt 3
Jordan 2
Lebanon 1
Tunisia 1
TOP 100
Distribution: Percentile Rankings
Top 100 MFIs still improving efficiency, averaging 56th percentile, with majority below 60%.
Outreach averaging 73rd percentile, only a few below 60th percentile.
• Rankings capture important industry developments– Change in rankings reflected gains in efficiency– Ranking changes reflected “real” changes in MFI performance
• Market Feedback– Single most commented MIX piece, incl. drawing MFI attention to their
own data– Confusion of prior year ranking “changes”– Outreach is underweighted– No data on social performance disclosure
Observations and Feedback
Improve methodology
– Seek guidance from an Advisory Panel
– Review and revise methodology, as necessary, which may include disclosures on Social Performance
2009 Improvements
Web: www.themix.org
Email: [email protected]
Africa Office:
BP 23035Dakar, Senegal
Other Locations
Washington, D.C. ● Lima, Peru ● Guragon, India ● Jakarta, Indonesia
MICROFINANCE INFORMATION EXCHANGE, INC.
The leading provider of business information and data services for the microfinance industry.