The Premier Source for Microfinance Data and Analysis

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Microfinance Information Exchange

Panorama 2011 de América Latina y el Caribe

December 2011

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2

América Latina y El Caribe en resumen

Prestatarios por Su-bregión

América del Sur Centroamérica y El Caribe México

América del Sur Centroamérica y El Caribe

México

0

40

80

120

160

200

IMFs por Edad

Nueva Joven Madura

www.mixmarket.org/es/profiles-reports/crossmarket-analysis-report?rid=NJMQaVef

• At the end of 2010, more than half (58%) of the borrowers in the region were concentrated in South America.

• The market in the region is developed, the MFIs with more than 8 years in the market (Mature) represented 86% of the total of participants. Especially in South America (53% out of the total in 2010).

LAC is divided into three clearly differentiated sub-regions:

1. South America

2. Central America and the

Caribbean

3. Mexico

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3

América Latina y El Caribe en resumen

América del Sur Centroamérica y El Caribe

México LAC

0

100

200

300

400

500

LAC: IMF Participantes por Regulación

Total IMF IMF Reguladas

IMF

América del Sur Centroamérica y El Caribe

México LAC

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

LAC: Alcance de IMF participantes

Total IMF IMF Reguladas

www.mixmarket.org/es/profiles-reports/crossmarket-analysis-report?rid=taVYENe6

The trend toward regulation is not yet strong in Mexico and Central America. 79% of the regulated IMF were South American (which represented 27% of the total IMF participants).

How has the micro-financial industry evolved in the region?

www.mixmarket.org/es/profiles-reports/crossmarket-analysis-report?rid=LSnvWEqb

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.

4

1.

•Credits

2.

•Deposits

3.

•Special Cases

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.

5

¿Los mercados urbanos están saturados en la región?

69%

11%

20%

Población LAC

América del Sur Centroamérica y El Caribe

México

Hondu

ras

Gua

tem

ala Haiti

Nicara

gua

El Salv

ador

Parag

uay

Costa

Rica

Bolivia

Ecuad

or

R. Dom

inica

naPer

u

Panam

a

Colom

bia

Méx

icoBra

sil

Chile

Urugu

ay

Argen

tina

Venez

uela

0%

20%

40%

60%

80%

100%

Distribución Urbano / Rural por país

Urbano Rural

Central America and the Caribbean is the sub-region that has the highest incidence of rural population: Honduras (51.2%), Guatemala (50.5%) and Haiti (50.0%). In South America, the country with the largest population in rural areas was Paraguay (38.5%).

http://data.worldbank.org/country

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6

¿Los mercados urbanos están saturados en la región?

America accelerated progress in placements particularly in rural areas (89.0%) between 2008 to 2010 in search of new markets.

The growth scale in Central America and the Caribbean was justified in rural areas (18.5%), the urban portfolio has not yet recovered levels reached in 2008.

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.

7

¿Dónde se concentró la oferta crediticia?

2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010No-Minoristas MIC CNS VIV No-Minoristas MIC CNS VIV

Cartera Préstamos

0%

20%

40%

60%

80%

100%Tendencias por Tipo de Crédito

CC MEX SA

• LAC: Micro-enterprise credit remained the most dynamic in 2010.

• Central America (81.1%) and South America (74.6%) were intensive in financing for productive purposes (Micro-enterprise and Commercial).

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.

8

¿Cuál fue el tamaño del crédito ofrecido?

2008 2009 2010 2008 2009 2010 2008 2009 2010MIC CNS VIV

0

2,000

4,000

6,000

8,000

10,000

12,000

Saldo de Crédito por Productos mi-noristas

CC MEX SA LAC

2008 2009 2010

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Saldo de Créditos no minoristas

CC MEX SA LAC

South America presented higher than average regional credit balances in retail products.

Housing credits in Mexico and Central America focused on financing housing improvements, the opposite of South America, where the IMF offered more products for the acquisition of houses.

The advance in the scale of commercial loans (25. 6% in 2010) in Mexico was based on high average balances maintained (USD 76 thousand versus USD 30 thousand in LAC).

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.

9

¿Se redujo la morosidad en las colocaciones?

DO

M

CR

I

GT

M

HN

D

HT

I

NIC

PA

N

SL

V

ME

X

AR

G

BO

L

BR

A

CO

L

EC

U

PE

R

PR

YCC ME

XSA

0%

5%

10%

15%

20%

25%

Cartera en riesgo > 30 días (mediana)

2008 2009 2010

DO

M

CR

I

GT

M

HN

D

HT

I

NIC

PA

N

SL

V

ME

X

AR

G

BO

L

BR

A

CO

L

EC

U

PE

R

PR

Y

CC MEX

SA

0%

5%

10%

15%

20%

25%

Cartera en riesgo > 30 días (Promedio Ponderado)

2008 2009 2010

www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=JGQm8W7W

www.mixmarket.org/profiles-reports/crossmarket-analysis-report?rid=FLkEcPfv

SA: Prudential regulation and self-regulation standards in most countries contributed to the presentation of risk indicators on similar levels.CC: The IMF resorted to penalties and to the refinancing of loans, which maintained high risk portfolio indicators. MEX: Improved indicators of portfolio at risk in 2010. However, about 10% is still retained for the group of intensive IMF in sample consumption.

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.

10

Riesgo de cartera trimestral en 2011

Country IMF GLP participation

Bolivia 23 100%

Colombia 5 72.4%

Ecuador 9 61.2%

Mexico 20 65.2%

Peru 37 88.2%

Based on quarterly data from a representative sample by the IMF of 5 countries in the region.

01/12/200801/03/2009

01/06/200901/09/2009

01/12/200901/03/2010

01/06/201001/09/2010

01/12/201001/03/2011

01/06/2011

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

0%

1%

2%

3%

4%

5%

6%

7%

8%

Cartera y Riesgo de Crédito

BOL GLP COL GLP ECU GLP MEX GLP PER GLPBOL PAR 30 COL PAR 30 ECU PAR 30 MEX PAR 30 PER PAR 30

PAR

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.

11

Endeudamiento Cruzado en 2010

Indicator Ecuador Peru IMF Number 38 25Participation Borrowers Country (%) 88.5% 54.7%Total of reported loans 737,756 2,096,969 Total Borrowers declared 650,572 1,818,831 Loans per Borrower 1.1 1.2 Borrowers adjusted per cross-indebtedness

466,753 1,207,326

Loans per adjusted borrower by cross-indebtedness

1.58 1.74

Shared borrowers (%) 45.3% 55.7%

It was not possible to determine a direct correlation between portfolio risk indicators and those of crossed debt. The participation of NGOs and non-regulated COAC in the Ecuador sample, which function in rural zones with limited competitors, allowed for a smaller percentage of shared borrowers.  In the case of Peru, the largest indicator of Shared Borrowers was reflected in the intense competition in the country's major cities, among the regulated IMF (Mibanco, CMACs and Financial especially) figures in the sample.

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.

12

1.

•Credits

2.

•Deposits

3.

•Special Cases

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.

13

¿Hacia dónde se enfocaron las captaciones de depósitos?

The savings of small depositors constitute the main origin (85%) of deposits received in the region.

85%

15%

Depósitos totales 2010

Depósitos Minoris-tasDepósitos Insti-tucionales 52%48%

Depósitos voluntarios minoristas

Depósitos a PlazoDepósitos a la Vista

The savings solutions of the commercial bank seem unknown or unattractive compared to IMF's long-

term deposits.

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.

14

¿Hacia dónde se enfocaron las captaciones de depósitos?

South America (that concentrates 95.6% of the deposits in the region) reaffirmed the tendency to concentrate the receipt of deposits in small

savers (atomization).

2008 2009 20100

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

Sudamérica

Depósitos Minoristas Depósitos Institucionales

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.

15

¿Hacia dónde se enfocaron las captaciones de depósitos?

2008 2009 20100

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000 México

Depósitos Minoristas Depósitos Institucionales

2008 2009 20100

50,000,000100,000,000150,000,000200,000,000250,000,000300,000,000350,000,000400,000,000450,000,000500,000,000

Centroamérica y el Caribe

Depósitos Minoristas Depósitos Institucionales

The same tendency as South America was also presented in Central America and the Caribbean, where the small deposits grew more than USD 150 million in two years.

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.

16

1. • Credits

2. • Deposits

3.• Special Cases

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.

17

Nicaragua: El reto de la recuperación

2006 2007 2008 2009 20100%2%4%6%8%

10%12%14%16%18%20%

Cartera en Riesgo > 30 díasRatio de Préstamos Castigados

2006 2007 2008 2009 20100

50,000100,000150,000200,000250,000300,000350,000400,000

050,000,000100,000,000150,000,000200,000,000250,000,000300,000,000350,000,000400,000,000

Nº de Prestatarios ActivosCartera Bruta de Crédito (USD)

2006 2007 2008 2009 20100

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Adeudos (USD)

The indicators affected by the "No Payment" movement reached their most critical level during the years 2009 and 2010, after the withdrawal of the international financing for IMF operations and the beginning of the international crisis.

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.

18

México: Un mercado heterogéneo

42.0%

30.0%

9.4%

6.6%

10.3%1.6%

Número de Prestatarios a Diciembre 2010

CompartamosBanco Financiera Independencia

Entre 250,000 y 100, 000 (3 IMF) Entre 100,000 y 50,000 (5 IMF)

Entre 50,000 y 10,000 (20 IMF) Menos de 10,000 (19 IMF)

AC (5) Banco (1) SOFIPO (5) SOFOM (19) Otros (5)

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

Cartera por Forma Legal local

2008 2009 2010

It is the home of the IMF with the largest scope in the whole region (Share Bank and Independence Financial with the focus on financing the Microenterprise and Consumption, respectively).

The SOFOM are non-regulated institutions, the legal form most applied by the IMF, their high accumulated portfolio is mainly based on the placements of Independence Financial (60.4% to December 2010).

www.mixmarket.org/es/profiles-reports/crossmarket-analysis-report?rid=wFYBPWZC

www.mixmarket.org/es/profiles-reports/crossmarket-analysis-report?rid=R6ZEcQfh

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.

19

México: Reduciendo el riesgo

0

300,000,000

600,000,000

900,000,000

1,200,000,000

1,500,000,000

0%

1%

2%

3%

4%

5%

Cartera y Cartera en Riesgo > 30 días

Cartera PAR 30 días (mediana)

PAR

01/12/2

008

01/03/2

009

01/06/2

009

01/09/2

009

01/12/2

009

01/03/2

010

01/06/2

010

01/09/2

010

01/12/2

010

01/03/2

011

01/06/2

011

0%

1%

2%

3%

4%

5%

6%

7%

8%Cartera en Riesgo > 30 días (mediana)

AC (3) Banco (1) SOFIPO (3) SOFOM (5) MEX

Based on a sample of 13 IMF with quarterly information in 2010 and 2011 (represented 57.6% of the total accumulated portfolio to December 2010).

The increase of placed balances in the first semester of 2011 (24.8%) already surpassed the similar semester in 2010 (14.3%).

For the first time the national median was under the 3% because of the improvement in the indicators of the SOFOMES. The group of Regulated Financial Societies (SOFIPOs as per its initials in Spanish) proved some difficulties to reduce the NPLs, kept at similar levels since September 2010.

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.

20

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