MBB 15 - Benchmark Tables.pdf - Microfinance Information Exchange

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BULLETIN TABLESMICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007Index of Terms and Definitions (Balance Sheet)Starting with its 2006 MFI Benchmarks, MIX has updated its published terms and definitions to reflect the latest industry reportingstandards as defined in: Bruett, Tillman (ed.), Measuring Performance of Microfinance Institutions: A framework for reporting, analysis, andmonitoring. Washington, DC: SEEP, 2005. These changes do not affect ratio or benchmark calculations.TermsCash and Due from BanksReserves from Central BankTrade InvestmentsNet Loan PortfolioGross Loan Portfolio(Impairment Loss Allowance)Interest ReceivableAccounts Receivable and Other AssetsOther InvestmentsNet Fixed AssetsTOTAL ASSETSDemand DepositsVoluntary DepositsCompulsory DepositsTime DepositsBorrowingsBorrowings at concessional interest ratesBorrowings at commercial interest ratesInterest PayableAccounts Payable and Other LiabilitiesTOTAL LIABILITIESPaid-in CaptialDonated EquityPrior YearsCurrent YearRetained EarningsPrior YearsCurrent YearAdjustments to EquityInflation AdjustmentSubsidized Costs of Funds AdjustmentIn-Kind Subsidy AdjustmentReservesOther Equity AccountsTOTAL EQUITYTOTAL LIABILITIES AND EQUITYDefinitionsCash, petty cash, balances in banks, including non-interest bearing depositsCash reserves in a central bankTreasury bills and other short term investments, including interest-bearing deposits,convertible to cash within 12 months. Usually used in liquidity management.Gross Loan Portfolio minus Loan Loss ReserveAll outstanding principal for all outstanding client loans, including current, delinquent andrestructured loans, but not loans that have been written off. It does not include interestreceivable. It does not include employee loans.The portion of the gross loan portfolio that has been expensed (provisioned for) inanticipation of losses due to default. This item represents the cumulative value of the loanloss provision expense, less the cumulative value of loans written off.Interest receivable on all asset accounts. Recorded by institutions using accrual accounting.Accounts receivable, notes receivables and other receivables. This includes all receivablesother than client loan accounts, including employee loans.Long term investments not convertible to cash within 12 monthsThe purchase value of property, plant and equipment, less accumulated depreciation. Thisincludes intangibles, such as MIS development or goodwill, less accumulated amortization.Total of all net asset accountsTotal of Voluntary and Compulsory SavingsDemand deposits from the general public and members that are not maintained as acondition for accessing a current or future loan and are held with the institutionClient savings accounts that are maintained as a condition for a current or future loan andare held with the institutionCertificates of deposit or other fixed term depositsTotal of Commercial and Concessional BorrowingsPrincipal balance of all borrowings, including overdraft accounts, for which the institutionpays a nominal rate of interest that is less than the local commercial interest ratePrincipal balance of all borrowings, including overdraft accounts, for which the institution paysa nominal rate of interest that is greater than or equal to the local commercial interest rateInterest payable on all liability accounts. Recorded by institutions using accrual accounting.Other liabilities including tax and salary liabilities, social withholdings, deferred income,other accounts payable, including liabilities that do not fund the portfolio, such asmortgages on real estateTotal of all liability accountsCapital paid by shareholders or membersAccumulated donationsAccumulated donations from prior periodsDonations from the current yearAccumulated net income after taxes and before donationsAccumulated net income after taxes and before donations from prior periodsNet income after taxes and before donations from the current yearValue of all adjustments, including inflation adjustmentValue of inflation adjustment expenseValue of subsidized cost of funds adjustment expenseValue of in-kind subsidy adjustmentReserves such as those imposed by law or statuteOther equity accounts not included elsewhereTotal of all equity accountsTotal of Total Liabilities and Total Equity50Microfinance Information eXchange, Inc
MICROBANKING BULLETIN, ISSUE 15, AUTUMN 2007BULLETIN TABLESIndex of Terms and Definitions (Income Statement)Starting with its 2006 MFI Benchmarks, MIX has updated its published terms and definitions to reflect the latest industry reportingstandards as defined in: Bruett, Tillman (ed.), Measuring Performance of Microfinance Institutions: A framework for reporting, analysis, andmonitoring. Washington, DC: SEEP, 2005. These changes do not affect ratio or benchmark calculations.IndicatorFinancial RevenueFinancial Revenue from Loan PortfolioInterest on Loan PortfolioFees and Commissions on Loan PortfolioFinancial Revenue from InvestmentsOther Operating RevenueFinancial ExpenseFinancial Expense on Funding LiabilitiesInterest and Fee Expense on DepositsInterest and Fee Expense on BorrowingsNet Adjustment for InflationInflation Adjustment to EquityInflation Adjustment to Fixed AssetsAdjustment for Subsidized Cost of FundsOther Financial ExpenseNET FINANCIAL INCOMEImpairment Losses on LoansProvision for Loan ImpairmentValue of Loans RecoveredOperating ExpensePersonnel ExpenseAdministrative ExpenseRent and UtilitiesTransportationOffice SuppliesDepreciation and AmortizationOther Administrative ExpenseNET OPERATING INCOMENet Non-Operating IncomeNon-Operating RevenueNon-Operating ExpenseNET INCOME (BEFORE TAXES ANDDONATIONS)TaxesNET INCOME (AFTER TAXES AND BEFOREDONATIONS)DonationsNET INCOME (AFTER TAXES ANDDONATIONS)DefinitionsTotal of revenue from loan portfolio and other financial assets, as well as other financialrevenue from financial servicesTotal interest, fees and commission on loan portfolioInterest earned on loan portfolioPenalties, commissions and other fees charged on loan portfolioNet gains on other financial assetsOther revenue from provision of financial services, including revenue from insurance ortransfer services or non-financial revenue from the provision of financial services, such asthe sale of passbooks or SmartCards. This account also includes net exchange gains.Total of financial expense on liabilities, net inflation adjustment, cost-of-funds adjustmentand other expenses from financial servicesTotal of interest and fees paid on deposits and borrowingsInterest and fees paid on demand or term depositsInterest and fees paid on borrowingsReserved for institutions that use inflation based accounting. Net amount of inflationadjustment.Cost of maintaining the value of the institution’s equityGain on the value of fixed assets due to inflationAdjustment expense for difference between market rate and concessional rate on borrowingsOther expenses from provision of financial services, including non-financial expenses onfinancial products, as well as net exchange depreciationFinancial Revenue minus Financial ExpenseSum of loan loss provision expense and recovery on loans written offLoan Loss Provision Expense for the periodTotal recovery on loans written offTotal of Personnel Expense and Administrative ExpenseSalaries, withholdings, fringe benefits and personnel taxes paid on all those who work forthe institutionTotal of Rent and Utilities, Transportation, Office Supplies, Depreciation and OtherAdministrative ExpensesRent and utility chargesTransportation of staff to attend to clients and to manage operationsPrinted matter, supplies, photocopies, books, etc.Allowance for deterioration, eventual replacement of equipmentOther non-personnel administrative expensesFinancial Revenue less Financial Expense, Net Loan Loss Provision Expense and OperatingExpenseNon-operating Revenue less Non-operating ExpenseRevenue from activity unrelated to the MFI’s core activity of providing financial services.This could include consulting income, sale of IT products, or fees for business developmentservices (BDS).Expenses from activity unrelated to the MFI’s core activity of providing financial services,such as BDS development costs or consulting expensesNet Operating Income less Net Non-Operating IncomeIncludes all taxes paid on Net Income or other measure of profits as defined by local taxauthoritiesNet Income (before Taxes and Donations) less TaxesDonations made to the MFI to subsidize its operationsNet Income (after Taxes and before Donations) plus DonationsMicrofinance Information eXchange, Inc51
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MBB 15 - Benchmark Tables.pdf - Microfinance Information Exchange

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