Upload
mabsiv
View
610
Download
3
Embed Size (px)
DESCRIPTION
MABS Microfinance Specialist, Ms. Jennifer Sabianan shares how to use the EAGLE Scorecard to measure the bank's microfinance performance during the 2012 RBAP-MABS National Roundtable Conference on June 7.
Citation preview
Session 2: Measuring Performance through the
EAGLE Score Card
Jennifer S. Sabianan MABS
2012 RBAP-MABS National Roundtable Conference June 7-8, 2012
Hyatt Hotel Manila
“What gets measured gets done.” “What can’t be measured can’t be managed.”
MABS-EAGLE Assessment
• Evaluates the performance of microfinance portfolio in 5 areas, with 11 indicators
• A management tool to monitor and
evaluate factors affecting microfinance operations
Indicators & Weights
EFFICIENCY (30%) ASSET QUALITY (30%)
GROWTH (10%) LIABILITY STRUCTURE (10%) EARNINGS (20%)
EAGLE Grades
Excellent (AA): 4.25 -‐ 5 Very Good (A): 3.5 -‐ 4.24 Good (B): 2.5 -‐ 3.49
No Grade (NG): 2.49 or less
Results for 2011 (Base: 34 Banks)
Annual Assessment
• 34 banks evaluated • 2 AA; 1 EAGLE Award • 7 A • 19 B • 6 No grade
January – December 2011
RESULTS FOR EFFICIENCY Cost efficiency Loan officer producIvity -‐ Individual loan product -‐ Group loan product
Cost Efficiency
Loan Officer Productivity
Range: 33 – 214 Median: 86
Loan Officer Productivity
Range: 115 – 305 Median: 260
RESULTS FOR ASSET QUALITY PorMolio at Risk (PAR) 7 & 30 Loan Loss Reserve (% Provisioning) Loan Loss Rate (% Write Off)
% PAR >7 days
Range: 0.28% - 52% Median: 9.3%
% PAR >30 days
Range: 0.21% - 47% Median: 8%
Loan Loss Reserve (%)
Loan Loss Rate (%)
RESULTS FOR GROWTH
Year on Year Growth -‐-‐Number of Borrowers -‐-‐PorMolio Amount
%Growth - Number of Borrowers
16 of 34 banks, or 47% had negative growth!
% Growth - Gross Loan Portfolio
Median: (0.59%) 19 of 34 banks, or 56% had negative growth!
RESULTS FOR LIABILITY STRUCTURE
DEPOSIT TO LOAN RATIO (%)
Deposit to Loan Ratio
RESULTS FOR EARNINGS
NET INCOME OVER AVG PORTFOLIO
Earnings (%)
In Summary….Pay a_enIon to the following:
• Cost efficiency – Determine expenses that can be reduced – Book only MF-‐related operaIonal expenses – Increase porMolio by diversifying product – Accuracy of expense data reflected in MPM report
• Loan officer producIvity – low producIon means high cost of operaIons
• Book adequate loan loss provision following BSP Circ. 409
In Summary….Pay a_enIon to the following:
• Write off, clean out long overdue & uncollecIble accounts
• Arrest client drop outs – monitor drop outs and document reasons for leaving your bank
WHEN WAS THE LAST TIME YOU HAD A MICROFINANCE OPERATIONS REVIEW IN YOUR BANK?
FINDINGS FROM OPERATIONS REVIEW
Check if your bank manifests any of the adverse findings
• Lack of monitoring of PAR status due to non-‐ funcIoning MIS. • Loan Supervisors do not have authority to address delinquency issues (no delegaIon of authority). • Inflexible products (fixed loan amount, terms, etc.) leave clients no opIons • Poor customer service (long waiIng lines, not enough chairs, unfriendly staff) • No incenIves for borrowers who maintain high savings balance (e.g., lower interest rate, be_er payment terms, etc.)
ObservaIons on usual areas needing improvement
!DO WELL BY DOING
GOOD! !!