Press Room

Microfinance Information Exchange (MIX) has just published the Latin America and the Caribbean Benchmarks for 2009, which compare performance indicators for microfinance institutions in the region. The Benchmarks are based on performance data from 2009 - the most recent data available - and cover 343 MFIs across 18 countries. Here are some key developments from the 2009 LAC Benchmark Tables:

Changes in Performance

• MFIs accumulated a Gross Loan Portfolio of US$ 19.6 billion disbursed to 14.6 million borrowers. This represents a 25.4% increase in Gross Loan Portfolio alongside a 10.9% increase in Active Borrowers from 2008.
• In terms of overall financial performance, profitability decreased significantly as represented by a 100-point decline in Return on Assets (ROA) to 0.3% for the entire LAC Region, from 1.3% in 2008.
• On the other hand, portfolio quality deteriorated with Portfolio at Risk over 30 days (PAR > 30) rising to 5% from 4% in 2008.
• Comparing the Geographical Sub-regions of LAC, Central America registered losses in economies like Honduras and Nicaragua, while South American MFIs maintained positive returns in such developed microfinance markets as Peru and Bolivia.
• MFIs who focused their attention on one single product (for example, only microenterprise lending) registered some losses compared to the general positive returns for MFIs with diversified loan products (e.g. microenterprise and consumption loans).

Changes in Reporting

• 343 microfinance institutions (MFIs) reported figures for 2009 FYE, 3.3% (11) more MFIs than the previous year.
• Nonetheless, 2009 was particularly challenging in terms of reporting, as 37 MFIs did not report again this year (largest number ever), offset by 48 new entries.

To explore further, please review the full data set of LAC benchmarks for 2009.

MIX would like to thank its 10 partners along the region for their support in this data collection process: REDCAMIF, COPEME, RFR, ProDesarrollo, ASOFIN, FINRURAL, RADIM, FGV / Small Business, Microfinanzas para el Desarrollo and FEPCMAC. Performance benchmarking is a comparative exercise that standardizes raw data and groups institutions to provide a tool for meaningful comparative analysis. Managers and practitioners find benchmarking useful in evaluating their institution’s performance within the spectrum of similar organizations.