Transcript Sanabel Annual Industry Survey 2008 The Region in a Snapshot

Sanabel 6th Annual Conference
Beirut - May 2009
State of the Industry in 2008
Ranya Abdel-Baki
Transparency & Research Manager
Sanabel – The Microfinance Network of Arab Countries
Data Collection & Resources
Primary Sources:
•Sanabel Annual Industry Survey
• FY 2008 data
•Sample: 363 Arab MFIs
•Benchmarks (Sanabel/MIX Annual Data Collection for MBB)
• FY 2007 data
• Sample: 48 Arab MFIs
•Fixed Sample Benchmarks
•FY 2004 FY 2008 data
•Sample: 20 MFIs
Secondary Sources:
•CGAP Funders Survey (FY 2007)
The Region in a Snapshot: Overview
Sanabel Annual Industry Survey 2008
2008
2007
9.75 years
8.5 years
Number of Branches
2,542
1,960
Number of Employees
21,808
18,984
31%
32%
37 MFIs
NA
Median Age
Percentage of Female Employees
Number of MFIs with HR Managers
Legal Status
Limited Liability
2%
Govt Institution
1%
Intl Organization
1%
Bank
1%
NGO
95%
The Region in a Snapshot: Financial Services in 2008
Loans
Country
A
Bahrain
B
C
E
H
X
X
X
X
X
Iraq
X
X
X
Jordan
X
X
X
Lebanon
X
X
X
Maurirania
Morocco
X
X
Palestine
X
X
Saudi Arabia
X
Sudan
X
X
Tunisia
Yemen
I
Insurance
D /D
F/T
H/M
L
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
S
SU
Y
X
X
X
X
X
X
X
X
V
C
X
Egypt
Syria
Savings
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
The Region in a Snapshot: Non-Financial Services in 2008
Country
BDS
Consultancy
X
X
Financial
Education
Health
Education
Training
X
X
Bahrain
Egypt
Iraq
X
Jordan
X
Lebanon
X
Mauritania
X
X
X
X
X
X
X
X
X
X
X
X
X
Morocco
X
X
Palestine
X
X
X
Saudi Arabia
X
X
X
Sudan
X
X
Syria
X
X
Tunisia
X
X
X
Yemen
X
X
X
X
X
X
X
X
The Region in a Snapshot: Outreach & Scale in 2008
Sanabel Annual Industry Survey 2008:
2008
2007
Number of Borrowers
3.141 million
2.985 million
% Women Borrowers
62%
59%
% Rural Borrowers
40%
42%
% Borrowers Below Poverty Line
60%
63%
USD 1.492 billion
USD 1.405 billion
USD 475
USD 471
Gross Loan Portfolio
Average Loan Balance
Nonmembers
17%
Members
83%
The Region in a Snapshot: Outreach & Scale in 2008
Sanabel Annual Industry Survey 2008:
Top MFIS
Top 5 MFIs
Top1 0 MFIs
Top15 MFIs
Top 20 MFIs
# of Borrowers
1,337,597
% of Borrowers
from Total
43%
Outstanding
GLP (USD)
% of GLP
from Total
720,714,161
48%
1,866,806
59%
901,655,207
60%
2,194,517
70%
1,003,671,764
62%
2,338,829
74%
1,079,579,440
72%
Outreach: Breakdown by Country in 2008
Sudan
Yemen
1%
1%
Tunisia
Saudi Arabia Syria
Bahrain
6%
1%
0%
0%
Palestine
1%
Egypt
42%
Morocco
40%
Iraq
1%
Mauritania Lebanon Jordan
4%
1%
2%
Scale: Breakdown by Country in 2008
Yemen
Sudan
0% Bahrain
0% Syria Tunisia
0%
Saudi Arabia 1%
7%
1%
Palestine
5%
Egypt
22%
Iraq
4%
Jordan
9%
Morocco
47%
Lebanon
3%
Mauritania
1%
Growth in Outreach and Scale (2005-2008)
Fixed Sample
120%
112%
100%
80%
67%
60%
52%
45%
40%
37%
35%
30%
20%
11%
3%
0%
2004-2005
2005-2006
2006-2007
-20%
Growth in Number of Borrowers
-1%
2007-2008
2007-2008
(Excluding Morocco)
Growth in GLP
Growth in Average Number of Borrowers and Percentage of
Women Borrowers (2005-2008)
30,000
100%
25,000
80%
20,000
60%
15,000
40%
10,000
20%
5,000
0%
2004
2005
2006
2007
2008
% of Women Borrowers
Average Number of Borrowers
Fixed Sample
Change in Financial Structure in Arab Region (2007)
100%
80%
60%
40%
20%
0%
Arab
World
Large
Medium
Small
Capital/ Asset Ratio
FSS
Non FSS
Egypt
Jordan Morocco Palestine Yemen
Commercial Funding Liabilities Ratio
Funding in the Region: Amount (2007)
Total Amount Committed by Funders in USD Million:
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”,
Microfinance Portfolio, November 2008.
Funding in the Region: Key Players (2007)
Breakdown by Type of Funder
Source: CGAP, “Who is Funding Microfinance? Results of the First Global
Survey of Funders”, Microfinance Portfolio, November 2008.
Funding in the Region: Financial Instruments (2007)
Breakdown by Financial Instrument
Source: CGAP, “Who is Funding Microfinance? Results of the First Global
Survey of Funders”, Microfinance Portfolio, November 2008.
Funding in the Region: Recipients (2007)
Breakdown by Countries
< 50 million
50 — 100 million
100—300 million
> 300 million
Algeria
Palestine
Egypt
Morocco
Djibouti
Syria
Iraq
Tunisia
Jordan
Yemen
Lebanon
Source: CGAP, “Who is Funding Microfinance? Results of the First Global Survey of Funders”,
Microfinance Portfolio, November 2008.
Breaking Down Return on Assets (2007)
40%
35%
30%
25%
20%
15%
10%
5%
0%
Arab
World
Large
Medium
Small
FSS
Non FSS
Egypt
Jordan Morocco Palestine Yemen
Financial Expense Ratio
Loan Loss Provision Expense Ratio
Operating Expense Ratio
Financial Revenue Ratio
Yield on Portfolio (2006-2007)
50%
40%
30%
20%
10%
0%
2006
2007
Arab Region
2006
2007
Egypt
2006
2007
Jordan
Yield on Gross Loan Portfolio
2006
2007
Morocco
2006
2007
2006
Palestine
Operating Expense/ Loan Portfolio
2007
Yemen
Portfolio Quality in 2008
PAR > 30 days: Arab Region
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2004
2005
2006
2007
2008
PAR > 30 days: Morocco
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2004
2005
2006
2007
2008
Legislation Highlights in 2009
Developments
EGYPT
•Single Regulators Law was passed
•Consultation Event on the Draft General Rules for MFC was held on May 4th
2009
•USAID EMF/CGAP working with MoSS on transformation plan
YEMEN
•On March 22nd 2008 Parliament approved the new microfinance law
allowing for the establishment of microfinance banks
Conclusion: Future Outlook
• Only strong sustainable MFIs are able to survive
• By doing what?
• Addressing key human resource challenges and align staff with MFI strategy
• Carefully selecting clients and matching products with client needs
• Clearly disclosing loan terms to clients and properly evaluating creditworthiness and
repayment ability
• Introducing innovations and establishing market niches
• Securing funding and diversifying funding sources on the medium to long terms
• Applying sound governance and risk management practices