ANNUAL BENCHMARK REPORT. On the microfinance sector -

Transcription

1 Papua New Guinea

2 ANNUAL BENCHMARK REPORT On the microfinance sector - Papua New Guinea for 1

3 Authors: Mohita Khamar, Market Intelligence Lead Devanshi Patani, Analyst, East Asia and the Pacific Editors: Henry Bruce, Product Manager Sachin Hirani Regional Manager, Asia and the Pacific Nikhil Gehani, Marketing and Communications Manager Ashwini Ramkumar, Intern, East Asia and the Pacific Partner Team Credits: Loi Bakani, Chairman and Governor of Papua New Guinea Saliya J. Ranasinghe, Director, Centre for Excellence in Financial Inclusion (CEFI) Moses Roth Nambil, Analyst, Macroprudential Supervision Unit of Papua New Guinea Paul Hukahu Project Monitoring Specialist Expansion Project B.V.Raghuram, Team Leader, Business Mentors Program Expansion Project MIX envisions a world where appropriate and accessible financial services are available to everyone, everywhere. We deliver strategically important data, insights, & market intelligence to key decision makers in the financial inclusion industry. Our decision support platforms are the infrastructure that enables coordinated investment, effective policy, & positive social outcomes for the financially underserved. Incorporated in 22, MIX is a nonprofit based in Washington, DC with regional offices in Africa, Asia, Europe, & Latin America. Disclaimer: This publication is available for use in research and analysis. Data and content may only be used for non-commercial purposes. If the material is published or distributed, it should be attributed to MIX with the appropriate citation. MIX has taken due care and caution in preparing this report, it has obtained the information from the institutions. Thus MIX relies on the information submitted and does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors in transmission. 2

4 Acknowledgement MIX would like to thank the Centre for Excellence in Financial Inclusion (CEFI) for supporting the data collection from financial service providers in Papua New Guinea (). CEFI assisted in collecting annual data from the financial service providers (FSPs) operating in the microfinance sector. Without their strong support and dedication to building greater transparency in the industry, MIX would not be able to provide access to this data or analysis. MIX s collaboration with CEFI not only facilitates data collection, but also makes it possible to standardize the data and provide analytical tools that present in-depth analysis of the financial and operating trends in the industry. MIX is privileged to take this opportunity to showcase the result of this collaboration in the form of the second Annual Benchmark Report for the microfinance sector in. This report presents the financial and operational data of those institutions for which CEFI has helped to facilitate the annual data collection for Fiscal Year (FY) 215. MIX is also grateful to all the FSPs, broadly recognized as partner financial institutions (PFIs) in the sector that have provided comprehensive data in a timely manner. Without the strong support and dedication of the institutions, MIX would not be able to contribute to build transparency in the industry. We are grateful for their continued efforts in this regard. 3

5 Content 1. Introduction 2. About MIX & Report 3. Data & Methodology 4. Indicator Summary 5. Key Findings 6. Benchmark Indicators a. Outreach b. Institutional Characteristics c. Asset Quality d. Productivity & Efficiency e. Sustainability & Profitability f. Financing Structure g. Revenues & Expenses 7. Institution Profile 8. Glossary 9. List of Abbreviations 4

6 Introduction The size of the financial system in Papua New Guinea () is over 4 million Kina, i.e. over 98 precent of s Gross Domestic Product (GDP) 1. has some of the highest unbanked rates in the world owing to a set of interrelated challenges including geographically dispersed communities, low population density, low financial literacy, relatively underdeveloped telecommunication and banking infrastructure, and diverse cultural and language groups. is one of the committed nations that strive to achieve financial stability in the sector through implementing financial inclusion and promoting financial literacy in the nation. With only 2 3 of the population having access to any formal financial instrument, financial inclusion assumes greater importance in with each passing day 2. The main objective of financial inclusion is to make the financial services accessible to lower income groups. At the Alliance for Financial Inclusion s Global Policy Forum in 213, became a member of the Maya Declaration 3, the first global commitment by developing and emerging country policymakers to unlock the economic and social potential of the poor through greater financial inclusion 4. This initiative supports institutions with diverse ranges of services, financial products and delivery channels. Further, the Expansion Project (MEP), which led to the creation of a dedicated institution to enhance financial inclusion in the country, named The Centre for Excellence in Financial Inclusion (CEFI), adds to s efforts of eradicating financial exclusion. MEP is designed to enhance the opportunities and address the challenges for the sector by strengthening financial service operations, providing staff training, improving product offerings and expanding outreach to remote areas of the country, while also fostering financial literacy. CEFI, being the industry apex organization for coordinating, advocating and monitoring all financial inclusion activities in, aims to have an organized information platform on microfinance for the market and establish mechanisms for enhanced information exchange. In collaboration with MIX, which is the microfinance industry s leading source of data on the financial, operational and social performance of microfinance institutions, CEFI intends to collect and publish high quality data to strengthen the growth of the microfinance sector, bring transparency and further enhance financial inclusion in. About MIX MIX envisions a world where appropriate and accessible financial services are available to everyone, everywhere. We deliver strategically important data, insights, and market intelligence to key decision makers in the financial inclusion industry. Our decision support platforms are the infrastructure that enables coordinated investment, effective policy, and positive social outcomes for the financially underserved. Incorporated in 22, MIX is a nonprofit based in Washington, DC with regional offices in Africa, Asia, Europe, and Latin America. MIX Market provides instant access to the data, analysis, and tools that deliver key insights into the financial inclusion sector. Whether you are a Financial Service Provider (FSP), investor, or policymaker, the MIX Market platform can help you assess financial, operational, and social performance Statement by Governor of of, Mr. Loi M. Bakani CMG at the Opening of the Financial Inclusion Exposition in Mt. Hagen, 15th July

7 Report As a continued step between MIX and CEFI to collect and publish high quality data that strengthens the growth of microfinance sector, build transparency and further enhance financial inclusion in, we are pleased to present second edition of annual report i.e. the Annual Benchmark Report on the Sector of Papua New Guinea for [First edition of Annual Benchmark Report for FY 214 report can be accessed on MIX Market]. This report captures operational and financial performance of financial service providers (FSPs) also known as CEFI s partner financial institutions (PFIs) for. The numbers are presented at an aggregated level, peergroup level and for the individual FSP. It also compares the performance against previous fiscal year i.e. FY 214 and provides the growth or decline rate for each of the indicators. The report is broadly categorized in two sections Indicators and Institution Profile. The Indicators section analyses the key 3 financial and operational indicators that further compare year-on-year change and helps one benchmark by peer groups and individual institutions. The indicators includes a range of performance variables pertaining to outreach, institutional characteristics, financing structure, financial performance, revenue, expenses, efficiency, productivity, risk and liquidity. Data and Methodology The data and analysis in this report is based on self-reported financial and operational numbers for FY 214 and, for a total of 9 FSPs that are partner financial service providers associated with CEFI. The financial numbers are verified by the audited financial statements of the FSPs for FY 214 and. The benchmark values have been presented at three different levels, i.e. Total, Median and Averages (simple or weighted averages as stated) across all the indicators and peer groups. Peer grouping information in based on the legal classifications that are relevant to the context of microfinance sector, that are Micro s and Savings and Loan Societies (). MIX has received data from the 9 institutions of which 5 FSPs are Micro s and 4 FSPs are Savings and Loan Societies (). The classification of the financial statements is based on IFRS Standards. MIX follows global industry standard definitions and formulae that are used for all analyses in the report. (Refer the glossary for the details of all the definitions and ratios used in the publication) A footnote is provided to explain the relevant abbreviations and representation of the information used in the report for each pages. 6

8 Indicator Summary Indicators FY 214* * Micro s * * 1 Number of Institutions (Σ) Outreach 2 Gross Loan Portfolio (PGK) m (Σ) Number of active borrowers (Σ) 23,549 24,35 15,993 8,312 4 Average loan balance per borrower (PGK) (WAV) 5,737 6,77 7,29 3,899 5 Deposits (PGK) m (Σ) Number of depositors (Σ) 349, , ,789 51,2 7 Number of deposit accounts (Σ) 361, , ,124 59,638 8 Average deposit balance per account (PGK) (WAV) Institutional Characteristics 9 Assets (PGK) m (Σ) Equity (PGK) m (Σ) Offices (Σ) Personnel (Σ) Asset Quality 13 Portfolio at risk > 3 days (WAV) 16.5% 21.4% 11.4% Portfolio at risk > 9 days (WAV) 13.7% % 45.1% 15 Risk coverage (WAV) 37.2% 27.7% 59.2% 5.5% Productivity & Efficiency 16 Borrowers per staff member (WAV) Deposit accounts per staff member (WAV) Cost per borrower (PGK) (WAV) 1,577 2,3 2, Cost per deposit accounts (PGK) (WAV) Sustainability & Profitability 2 Operational self sufficiency (WAV) 87.3% % 9.5% 21 Return on assets (WAV) -1.9% % -.4% 22 Return on equity (WAV) -14.4% -6.9% -7.2% -4.9% Financing Structure 23 Gross loan portfolio to assets (WAV) 46.8% 49.9% 49.6% 5.7% 24 Deposits to assets (WAV) 81.6% 78.8% 77.4% Loan to deposit (WAV) 57.4% 63.3% 64.2% 6.3% 26 Capital to asset (WAV) 14.5% Revenues & Expenses 27 Financial revenue / assets (WAV) 17.4% 17.8% 19.6% 11.1% 28 Profit margin (WAV) -14.5% -7.8% -8.4% -3.8% 29 Yield on gross portfolio (WAV) 31.1% 31.2% 35.3% 17.7% 3 Total expense / assets (WAV) 19.9% 19.3% 21.3% 12.3% 31 Financial expense / assets (WAV) 1.4% 1..8% 1.6% 32 Operating expense / loan portfolio (WAV) 34.4% 34.3% 38.7% 19.8% *Note: (Σ) = Total ; WAV= Weighted average value ; m=millions ; =Savings & Loans Societies 7

9 Key Findings Understanding of Micro s and Savings & Loans Societies (): The Annual Benchmark Report evaluates institutional benchmarks for with respect to the peer average and country average in the indicator section. The Institutional profile section captures the detailed information for individual institution performance. The peer groups across all the indicators are relevant to the context of market. The peer group distribution widens the scope of comparison of individual institutions and a group of institutions. It differentiates the institution s positioning and thus helps to draw a comparison across the others. The two major peer groups identified in market are Micro s and Savings & Loans Societies () which are briefly explained below. Micro s These institutions offer microloans to low income households and small business operators often referred to as the unbanked market in. They fall under the category of s and Licensed Financial Institutions (LFIs) that are licensed under the s and Financial Institutional Act 2 (BFIA) to conduct banking business. The BFIA defines banking business as the business of taking money on deposit and using that money to lend to others or to finance any other activity of the business, wholly or to a material extent, out of the capital or interest on money received by way of deposit 5. At the end of the fiscal year 215, five Micro s reported to MIX namely Limited,, People s Micro, Limited and Women s Micro. Savings & Loan Societies () - These institutions specialize in accepting deposits and making mortgage and other loans (like other banks) but with a speciality of operating on a principle of mutuality. s are licensed or authorised under the Savings & Loan Societies Act A minimum of 5 members or as stated by the Registrar are required to form an. These members are the owners of the Societies where each member has an equal right on the election of the boards of the Societies. They also have a right in the distribution of the profits. s can raise money or loans, subject to approval of the Registrar. The objects of s are to; (i) receive savings and make loans to their members, (ii) promote thrift amongst their members, and (iii) educate their members in financial responsibility 6. As at the end of the fiscal year 215, four s reported to MIX namely Alekano Savings & Loan Society Limited, Savings & Loan Society Limited, Manus Savings & Loan Society Limited and Niu Ailan Savings & Loan Society Limited

10 Brief analysis that provides key highlights of the peer group performance for : Indicators Micro s (5 Institutions) Savings & Loan Societies () (4 Institutions) Outreach Institutional Characteristics Asset Quality Credit: In, Micro s aggregated gross loan portfolio of K Million and witnessed a Y-o-Y growth of 12.9% as compared to active borrower (15,993) growth of 5.9% which also led to a growth of 6.7% in the average loan balance. People s Micro and Micro bank were among the major contributors to the growth. Savings: The scenario is slightly different in case of savings product. Total deposits marginally declined by.1% in as compared to FY 214 where they reported a growth of 14.9%. Number of deposit accounts on the other hand grew by 19.2 % and led to 8.8% decline in the average deposit balance per account for the year. Once again, People s Micro and Micro were the major contributors for the growth in deposit accounts. Total assets of Micro s grew by 3.7% from K 224. Million in FY 214 to K Million in. People s Micro has the largest asset size among the five Micro s of K 72. million despite of being a new entrant in the market. Micro s equity grew by 15.5%, where Limited reported the highest growth of 191.1% followed by Women s Micro that reported 48.8% growth during the year. The portion of loans greater than 3 days past due (known as portfolio at risk (PAR) > 3 days) has marginally reduced for Micro s from 12.4% in FY 214 to 11.4% in FY 215. Limited reported highest risk levels measured by PAR > 3 days of 74.2%. Credit: in had aggregated gross loan portfolio of (K 32.4 Million) that declined by 1.8% compared to the previous year. Active borrowers on the other hand declined by 1.6% leading to decrease in the average loan balance of.2%. among its competitors had the highest loan portfolio of K 15.5 Million for. Savings: The total deposits have declined for by 3.2% in whereas the total number of deposit accounts grew by 2.2% that aggregated to a decline of 5.3% in the average deposit balance per account for the year. Among four, led the growth by observing 12.4% rise and reaching to 27,931 deposit accounts. Unlike Micro s, s saw a decline of.8% in their total assets for. Equity on the other hand grew by 3.1% with highest growth achieved by Manus of 47.9% and highest decline recorded by Alekano of 81.3% reaching it to K -.3 Million. Portfolio at risk > 3 days has outrageously increased for from 32.2% in FY 214 to 57. in. Alekano was observed to have the highest risk levels of 77.1% PAR. 9

11 Indicators Productivity & Efficiency Sustainability & Profitability Financing Structure Micro s (5 Institutions) An individual staff member manages about 33 borrowers on an average for Micro s whereas the same staff member manages about 693 deposit accounts on an average. A marginal shift was observed in these indicators during as compared to FY 214. The average cost per borrower slightly increased to 2,67 in from K 2,195 in FY 214. Operating self-sufficiency of Micro s in FY 214 was 83.3% which progressed and increased to 92.3% in. However, as this ratio is lower that 1 it implies that FSPs still need to earn enough revenues that could cover its total costs. Return on asset and return on equity has moved from negative change in the previous year to positive change as compared to FY 214 and numbers. Measuring the portion of assets that are funded by deposits, it is observed that Micro s held deposits at 77.4% against their total assets in, which in FY 214 accounted for 8.3% of their total deposits Loan to deposit ratio, considered to assess the liquidity of an FSP at 64.2% suggests further scope of utilizing the deposit money which remains idle with the institutions. Assessing solvency of an FSP, capital to asset ratio of 18. for Micro s shows a healthy condition of the institutions to meet their obligations and absorb any unexpected losses. Savings & Loan Societies () (4 Institutions) For the group of institutions, an individual staff member on an average manages around 78 borrowers, higher than Micro s. On the contrary, on an average 563 deposit accounts are managed by an individual staff member, which is lower than the Micro s during. The average cost per borrower slightly increased to K 772 in from K 632 in FY 214. s recorded decline of 25.1% in their operational self-sufficiency (OSS), sliding from 115.6% in FY 214 to 9.5% in. Major impact could be attributed to the decline of 82.2% in OSS registered by Manus. Return on asset and return on equity, for s have seen negative slope as they recorded a decline of 2.1% and 25.9%, respectively. On similar lines to Micro s, s hold deposits at 84. of their total assets which reduced from 86.1% held in FY 214. Loan to deposit ratio for s stands at 6.3% suggesting opportunity to further utilize deposits for lending. s have a capital to asset ratio of 9. indicating just enough capital that could be settled with any probable losses that occur in future. Returns for the Micro banks seem to have The profitability of s from earnings on improved as the negative profit have core business operations has significantly changed from 2.1% in FY 214 and have reduced from 13.5% in FY 214 to -3.8% in Revenues Expenses & aggregated to negative 8.4% in. The average yield on loan portfolio stands constant in at 35.3% with Women s, mainly affected by Manus and Alekano which observed decline of 29.3% and 27.9% respectively, in. Micro having the highest yield of The average yield on loan portfolio almost 83.9% stands constant in at 17.7% 1

12 Outreach 11

13 Gross Loan Portfolio Year on Year Variance by Peer Group Legal Status Number of FY 214 (PGK) m (PGK) m (Peer Group) Institutions Median (PGK) m Average (PGK) m Mic Micro % S&L % Tot Country Total % Growth by Peer Group (PGK) m Distribution by Peer Group 12.9% -1.8% 9.3% Gross Loan Portfolio (PGK) m Micro Total FY 214 (PGK) m (PGK) m Micro 78% Institutional Benchmark by Peer Group for (PGK) m Micro 76% 24% 22% SAVINGS & LOAN SOCIETY () Gross Loan Portfolio (PGK) m Country Average Alekano Niu Ailan Manus Country Average Year-on-Year per Institution (PGK) m SAVINGS & LOAN SOCIETY () 12.3% 6.5% 33.1% -3.8% 821.7% -12.1% 12.9% 4.1% 17.5% Gross Loan Portfolio (PGK) m Alekano Niu Ailan Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 12

14 Number of Active Borrowers MS & LS Total Micro Year on Year Variance by Peer Group Legal Status Number of (Peer Group) Institutions Median Average Mic Micro 5 15,12 15, % 2,77 3,199 S&L 4 8,447 8, % 1,76 2,78 Tot Country Total 9 23,549 24,35 3.2% 2,572 2,71 Growth by Peer Group Distribution by Peer Group Number of Active Borrowers 3, 25, 2, 15, 1, 5, 15,12 5.9% -1.6% 3.2% 15,993 8,447 8,312 23,549 Micro Total 24,35 Institutional Benchmark by Peer Group for Micro 66% Micro 64% 36% 34% SAVINGS & LOAN SOCIETY () 8, 7, 7,69 Number of Active Borrowers 6, 5, 4, 3, 2, 1, 3,223 2,77 2, ,199 3,855 2,52 Country Average 2,71 2,78 1, Niu Ailan Manus Alekano Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -9.3% -7.3% 33.7% 49.4% 39.7% 1.2% 2.8% -49.7% 9.7% -9.3% -7.3% 33.7% 49.4% 39.7% 1.2% 2.8% -49.7% 9.7% Number of Active Borrowers 9, 8, 7, 6, 5, 4, 3, 2, 1, 7,793 7,69 3,476 3,223 2,25 2,77 2,572 1, ,498 3,855 2,435 2,52 Niu Ailan 2,22 1, Manus Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 13

15 Average Loan Balance Per Borrower Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro 5 6,759 7,29 6.7% 8,646 7,29 S&L 4 3,99 3, % 4,62 3,899 Tot Country Level 9 5,737 6,77 5.9% 6,211 6,77 Growth by Peer Group (WAV) Median and Weighted Average (WAV) Average Loan Balance Per Borrower (PGK) 8, 7, 6, 5, 4, 3, 2, 1, 6, % -.2% 5.9% 7,29 3,99 3,899 5,737 Micro Total FY 214 (PGK) (PGK) 6,77 8, 7, 6, 5, 4, 3, 2, 1, Institutional Benchmark by Peer Group for (WAV) 7,26 6,211 6,77 5,737 Median Weighted Average FY 214 (WAV) (WAV) SAVINGS & LOAN SOCIETY () Average Loan Balance Per Borrower (PGK) 18, 16, 14, 12, 1, 8, 6, 4, 2, 16,662 12,72 8,646 1, ,29 7,65 Alekano 6,211 3,3 Manus Country Average 6,77 3,899 1,727 Niu Ailan Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Average Loan Balance Per Borrower (PGK) 25, 2, 15, 1, 5, 19, % -1.9% 87.8% 6.1% -4.8% -14.5% 133.6% -5.6% 16,662 12,72 11,59 9,72 8, , ,838 7,65 Alekano 7,26 6,211 3,3 1,297 1,829 Manus 1,727 Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 14

16 Deposits Year on Year Variance by Peer Group Legal Status Number of FY 214 (PGK) m (PGK) m (Peer Group) Institutions Median (PGK) m Average (PGK) m Mic Micro % S&L % Tot Country Total % Growth by Peer Group (PGK) m Distribution by Peer Group % -3.2% -.8% Deposits (PGK) m Micro 77% Micro 76% 24% 23% Micro Total FY 214 (PGK) m (PGK) m Institutional Benchmark by Peer Group for (PGK) m SAVINGS & LOAN SOCIETY () Deposits (PGK) m Country Average Niu Ailan Manus Alekano Country Average Year-on-Year per Institution (PGK) m SAVINGS & LOAN SOCIETY () -1.3% 25.6% -18.3% 5.5% 28.8% -4.4% 3.9% -3.6% -1.1% Deposits (PGK) m Niu Ailan Manus Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 15

17 Number of Depositors MS & LS Total Micro Year on Year Variance by Peer Group Legal Status Number of (Peer Group) Institutions Median Average Mic Micro 5 297, , % 6,14 66,358 S&L 4 52,176 51,2-1.9% 9,918 12,8 Tot Country Total 9 349, , % 22,686 42,554 Growth by Peer Group Distribution by Peer Group Number of Depositors 45, 4, 35, 3, 25, 2, 15, 1, 5, 297, % -1.9% 9.6% 331,789 52,176 51,2 349,433 Micro Total 382,989 Institutional Benchmark by Peer Group for Micro 87% Micro 85% 15% 13% SAVINGS & LOAN SOCIETY () 18, 16, 162,23 Number of Depositors 14, 12, 1, 8, 6, 4, 2, 65,498 6,14 31,259 12,995 66,358 22,686 1,146 9,69 Country Average 42,554 12,8 8,678 Niu Ailan Alekano Manus Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 1.1% -17.7% 56.3% 41.6% 29.1% 6.3% -.7% -24.3% 11.3% 1.1% -17.7% 56.3% 41.6% 29.1% 6.3% -.7% -24.3% 11.3% 18, 16, 162,23 147,166 Number of Depositors 14, 12, 1, 8, 6, 4, 2, 79,568 65,498 38,389 6,14 22,69 31,259 1,65 12,995 21,348 22,686 1,22 1,146 12,88 9,69 7,8 8,678 Niu Ailan Alekano Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 16

18 Number of Deposit Accounts MS & LS Total Micro Year on Year Variance by Peer Group Legal Status Number of (Peer Group) Institutions Median Average Mic Micro 5 33, , % 6,14 66,425 S&L 4 58,334 59, % 11,476 14,91 Tot Country Total 9 361, , % 27,931 43,529 Growth by Peer Group Distribution by Peer Group 9.5% 2.2% 8.3% Number of Deposit Accounts 45, 4, 35, 3, 25, 2, 15, 1, 5, 33, ,124 58,334 59, ,711 Micro Total 391,762 Institutional Benchmark by Peer Group for Micro 85% Micro 84% 16% 15% SAVINGS & LOAN SOCIETY () 18, 16, 162,23 Number of Deposit Accounts 14, 12, 1, 8, 6, 4, 2, 65,498 6,14 31,259 13,33 66,425 27,931 13,3 9,948 Country Average 43,529 14,91 8,756 Niu Ailan Alekano Manus Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 1.1% -17.7% 56.3% 1.9% 32.4% 12.4% % 12.3% 1.1% -17.7% 56.3% 1.9% 32.4% 12.4% % 12.3% Number of Deposit Accounts 18, 16, 14, 12, 1, 8, 6, 4, 2, 162,23 147,166 79,568 65,498 38,389 6,14 28,189 31,259 1,65 13,33 24,855 27,931 12,871 13,3 12,88 9,948 7,8 8,756 Niu Ailan Alekano Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 17

19 Average Deposit Balance Per Account Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro % S&L % Tot Country Level % Growth by Peer Group (WAV) Median and Weighted Average (WAV) Average Deposit Balance Per Account (PGK) 1, % -5.3% -8.5% Micro Total Median Weighted Average FY 214 (PGK) (PGK) FY 214 (WAV) (WAV) Institutional Benchmark by Peer Group for (WAV) SAVINGS & LOAN SOCIETY () 1,2 Average Deposit Balance Per Account (PGK) 1, , Country Average Niu Ailan Manus Alekano Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Average Deposit Balance Per Account (PGK) 1,4 1,2 1, , % -.8% -4.8% -1.3% -2.8% -14.9% 2.8% -14.1% 15.7% ,212 1, Niu Ailan Manus Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 18

20 InstitutionalCharacteristics 19

21 Assets Year on Year Variance by Peer Group Legal Status Number of FY 214 (PGK) m (PGK) m (Peer Group) Institutions Median (PGK) m Average (PGK) m Mic Micro % S&L % Tot Country Total % Growth by Peer Group (PGK) m Distribution by Peer Group 3.7% -.8% 2.7% Assets (PGK) m Micro 78% Micro 78% 22% 22% 5 Micro Total FY 214 (PGK) m (PGK) m Institutional Benchmark by Peer Group for (PGK) m SAVINGS & LOAN SOCIETY () Assets (PGK) m Country Average Niu Ailan Manus Alekano Country Average Year-on-Year per Institution (PGK) m SAVINGS & LOAN SOCIETY () 24.9% 6.3% -17.6% 1.5% 35.1% -6.1% 3.8% 1.6%. Assets (PGK) m Niu Ailan Manus Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 2

22 Equity Year on Year Variance by Peer Group Legal Status Number of FY 214 (PGK) m (PGK) m (Peer Group) Institutions Median (PGK) m Average (PGK) m Mic Micro % S&L % Tot Country Total % Growth by Peer Group (PGK) m Distribution by Peer Group Equity (PGK) m % 3.1% 13.8% Micro Total FY 214 (PGK) m (PGK) m 47.5 Micro 88% Institutional Benchmark by Peer Group for (PGK) m Micro 87% 13% 12% SAVINGS & LOAN SOCIETY () Equity (PGK) m Country Average Manus Niu Ailan Alekano Country Average Year-on-Year per Institution (PGK) m SAVINGS & LOAN SOCIETY () 29.9% -14.6% -.4% 48.8% 191.1% 47.9% -.4% -26.4% -81.3% Equity (PGK) m Manus Niu Ailan. Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 21

23 Offices MS & LS Total Micro Year on Year Variance by Peer Group Legal Status Number of (Peer Group) Institutions Median Average Mic Micro % 6 7 S&L Tot Country Total % 4 5 Growth by Peer Group Distribution by Peer Group Offices %. 2.2% Micro Total 12 Micro 74% Institutional Benchmark by Peer Group for Micro 74% 26% 26% SAVINGS & LOAN SOCIETY () Offices Country Average Niu Ailan Alekano Manus Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -8.3% -21.4% % -21.4% Offices Niu Ailan Alekano Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 22

24 Personnel MS & LS Total Micro Year on Year Variance by Peer Group Legal Status Number of (Peer Group) Institutions Median Average Mic Micro % S&L % Tot Country Total % Growth by Peer Group Distribution by Peer Group 1.3% -4.5%.2% Personnel Micro 82% Micro 81% 19% 18% Micro Total Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Personnel Country Average Alekano Niu Ailan Manus Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -.6% %. 43.8% -11.5% 13.6% % %. 43.8% -11.5% 13.6% Personnel Alekano Niu Ailan Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society 23

25 AssetQuality 24

26 Portfolio At Risk > 3 Days (%) Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 11.4% -1.1% 8.7% 23.8% S&L % % 6.4% 61.3% Tot Country Total % 21.4% 4.9% 5.1% 42.6% by Peer Group Median and Weighted Average Portfolio At Risk > 3 Days (%) % 24.8% 4.9% % % % % 16.5% % 11.4% 1.7% 1 Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 9 Portfolio At Risk > 3 Days (%) % % 3.6% 11.4% #N/A 77.1% % 47.4% Country Average 21.4% 57. Alekano Manus Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -24.4% 2.3%.5% 1.3% % 1.9% 19.2% 12 Portfolio At Risk > 3 Days (%) % 74.2% 6.7% % 8.4% 2.3% 3.6%. #N/A #N/A 77.1% 13.5% % 52.8% 28.2% 47.4% Alekano Manus Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 25

27 Portfolio At Risk > 9 Days (%) Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro 5 1.8% 9.1% -1.8% 6.9% 19.6% S&L % 45.1% 2.4% 5.8% 5. Tot Country Total % % % by Peer Group Median and Weighted Average Portfolio At Risk > 9 Days (%) 5 45% 4 35% 3 25% 2 15% 1 5% -1.8% 2.4% 3.3% 45% % % 35% % 25% 22.9% % 13.7% 15% 9.1% 1 9.7% 5% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Portfolio At Risk > 9 Days (%) % 7.5% 6.2% 1.8% 9.1% #N/A 61.6% 54.3% 47.3% Country Average % 36.8% Manus Alekano Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -33.5% -.2% 2.3%. 49.8% 3.2% 17.1% 12 Portfolio At Risk > 9 Days (%) % 62.8% 7.7% 7.5% 3.9% 6.2%. 1.8%. #N/A 11.7% 61.6% #N/A 54.3% 44.1% 47.3% 19.7% 36.8% Manus Alekano Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 26

28 Risk Coverage Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 59.2% % 55.1% S&L 4 6.2% 5.5% -.6% 5.7% 5.6% Tot Country Total % 27.7% -9.5% 25.7% 3.4% by Peer Group Median and Weighted Average Risk Coverage (%) % -9.5% 45% 39.8% 58.2% 59.2% % 35% 3.4% % 37.2% 25% 27.7% 2 15% 1 6.2% 5.5% 5% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () % Risk Coverage (%) % 44.9% 44.3% 59.2% 3 2 Country Average 27.7% 1 #N/A 7.2% 6.1% 5.3% Manus Alekano 5.5% 3.9% Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 13.7% -12.1% 5.1% -2.9% -28.1%.7% -.3% Risk Coverage (%) % 74.9% 68.4% 56.4% 39.8% 47.2% 44.9% 44.3% 35.2% 1 #N/A #N/A Manus 7.2% 5.4% 6.1% 5.3% 4.2% 3.9% #N/A Alekano Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 27

29 Productivity&Efficiency 28

30 Borrowers Per Staff Member Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro % S&L Tot Country Level Growth by Peer Group (WAV) Median and Weighted Average (WAV) Borrowers Per Staff Member (PGK) % Micro Total Median Weighted Average FY 214 (PGK) (PGK) FY 214 (WAV) (WAV) Institutional Benchmark by Peer Group for (WAV) SAVINGS & LOAN SOCIETY () 3 Borrowers Per Staff Member (PGK) Country Average 42 Niu Ailan Manus Alekano Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Borrowers Per Staff Member (PGK) % % 241.4% 43.8% % 16.1% 67.8% Niu Ailan Manus Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 29

31 Deposit Accounts Per Staff Member Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro % S&L % Tot Country Level % Growth by Peer Group (WAV) Median and Weighted Average (WAV) Deposit Accounts Per Staff Member (PGK) % 7.1% 8.1% Micro Total Median Weighted Average FY 214 (PGK) (PGK) FY 214 (WAV) (WAV) Institutional Benchmark by Peer Group for (WAV) SAVINGS & LOAN SOCIETY () 1,4 Deposit Accounts Per Staff Member (PGK) 1,2 1, ,158 1, , Manus Niu Ailan Country Average Alekano Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Deposit Accounts Per Staff Member (PGK) 1,4 1,2 1, ,44 1.9% 18.4% 38.1% -7.9% -17.2% 12.3% 6.3% 26.9% -31.7% 1, , ,95 Manus Niu Ailan Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 3

32 Cost Per Borrower Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro 5 2,195 2, % 4,916 2,67 S&L % Tot Country Level 9 1,577 2, ,683 2,3 Growth by Peer Group (WAV) Median and Weighted Average (WAV) Cost Per Borrower (PGK) 3, 2,5 2, 1,5 1, % 22.3% 27. 2,67 2,195 2,3 1, ,5 2, 1,5 1, ,683 1,577 2,3 Micro Total Median Weighted Average FY 214 (PGK) (PGK) FY 214 (WAV) (WAV) Institutional Benchmark by Peer Group for (WAV) SAVINGS & LOAN SOCIETY () 14, Cost Per Borrower (PGK) 12, 1, 8, 6, 12,44 6,67 4,916 4, 2, 2,887 Country Average 2,67 1,683 1,547 2, Alekano Manus Niu Ailan Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Cost Per Borrower (PGK) 14, 12, 1, 8, 6, 4, 2, #N/A 12,44 5, % 3.5% % 13.6% % 6,67 4,748 4,916 2,887 #N/A Alekano 1,683 1,362 1, Manus Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 31

33 Cost Per Deposit Accounts Year on Year Variance by Peer Group Legal Status Number of Weighted FY 214 (PGK) (PGK) Median (Peer Group) Institutions Average (WAV) Mic Micro % S&L % Tot Country Level % Growth by Peer Group (WAV) Median and Weighted Average (WAV) Cost Per Deposit Accounts (PGK) % 12.8% 8.9% Micro Total Median Weighted Average FY 214 (PGK) (PGK) FY 214 (WAV) (WAV) Institutional Benchmark by Peer Group for (WAV) SAVINGS & LOAN SOCIETY () 3 Cost Per Deposit Accounts (PGK) Country Average Alekano Manus Niu Ailan Country Average Year-on-Year per Institution (WAV) SAVINGS & LOAN SOCIETY () Cost Per Deposit Accounts (PGK) #N/A % -1.3% -12.3% -2.5% % 4.5% 227 #N/A Alekano Manus Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 32

34 Sustainability&Profitability 33

35 Operational Self Sufficiency Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 92.3% % 8.9% S&L % 9.5% -25.1% 99.8% 1.6% Tot Country Total % % 91.6% 89.6% by Peer Group Median and Weighted Average Operational Self Sufficiency (%) % % 4.7% 115.6% 92.3% 9.5% % Micro Total 98% 96% 94% 92% 9 88% 86% 84% 97. Institutional Benchmark by Peer Group for 91.6% % Median Weighted Average SAVINGS & LOAN SOCIETY () Operational Self Sufficiency (%) % % 55.3% 35.5% 92.3% 131.2% 116.6% Country Average % 9.5% 71.4% 2 Manus Niu Ailan Alekano 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 55.2%.7% -5.4% 12.6% 24.7% -82.2% 1.1% % 25 Operational Self Sufficiency (%) % 12.9% 1.3% % 42.7% 55.3% 1.8% 35.5% 213.4% 131.2% 115.5% 116.6% 111.1% 83.1% 89.3% 71.4% Manus Niu Ailan Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 34

36 Return On Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 1.8% -2.2% -5. S&L 4 1.7% -.4% -2.1%. -.5% Tot Country Total 9-1.9% -1..9% by Peer Group Median and Weighted Average Return On Assets (%) 2% 1% -1% -2% -3% -4% 1.8% -2.1%.9% 1.7% Micro Total -.4% -1.2% % % -1% -2% -2% -3% -3% -4% -4% -5% Median Weighted Average -.7% % Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Return On Assets (%) 4% 2% -2% -4% -6% -8% 2.2%.1% -2.2% -1.2% 2.9% 1.1% -.4% Country Average % -1-12% -9.7% -14% -16% -18% -15.1% Manus Niu Ailan Alekano 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 6.8% -.1% -1.5% 5.8% 1.2% -4.3%.1% -2.6% -3.5% 1 7.2% Return On Assets (%) 5% -5% -1-15% % 2.2%.2%.1% -.7% -2.2% -15.5% -9.7% -15.1% 2.9% % 1.5% % -4.8% -25% % Manus Niu Ailan Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 35

37 Return On Equity Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro 5-2.2% -7.2% S&L % -25.9% 9.6% 73.7% Tot Country Total % -6.9% 7.5%.6% 18.8% by Peer Group Median and Weighted Average 25% % 7.5% % Return On Equity (%) 15% 1 5% -5% -1-15% -2-25% Micro Total -4.9% -7.2% -6.9% -14.4% -2.2% % Median Weighted Average -5.1% -42.5% Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Return On Equity (%) %.6% % -7.2% 299.4% 1.8% 8.4% Country Average -6.9% -4.9% -23.7% % Alekano Manus Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 31.5% -1.7% -11.8% 12.9% 197.6% 42.9% -22.6%.6% -57.6% % Return On Equity (%) % 9.8% 2.3%.6% -5.1% % -24.4% -94.3% -13.5% 33.3% 1.8% 7.8% 8.4% 33.9% -23.7% % Alekano Manus Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 36

38 FinancingStructure 37

39 Gross Loan Portfolio To Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 49.6% 4.1% 5.5% 42.5% S&L % 5.7% -.5% 46.1% 54.2% Tot Country Total % 49.9% % 47.7% by Peer Group Median and Weighted Average Gross Loan Portfolio To Assets (%) 52% 51% 5 49% 48% 47% 46% 45% 44% 43% 42% 4.1% -.5% 3. 51% 5.3% 51.2% 5.7% % 49.9% 49% 47.6% 47.7% 48% 46.8% 47% 45.6% 46% 44.9% 45% 44% 43% 42% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Gross Loan Portfolio To Assets (%) % 5.5% 3.9% 5.4% 49.6% % Country Average 49.9% 41.9% 5.7% 32.8% Alekano Niu Ailan Manus 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 3.4% % 1.9% 4.6% 1.5% -3.5%.1% 1.9% Gross Loan Portfolio To Assets (%) % % 61.6% % %.8% 5.4% 81.5% 92. Alekano 53.8% 5.3% 41.8% 41.9% Niu Ailan 3.9% 32.8% Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 38

40 Deposits To Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro 5 8.3% 77.4% % 74. S&L % % 78.8% 79.2% Tot Country Total % 78.8% -2.8% 78.1% 76.3% by Peer Group Median and Weighted Average Deposits To Assets (%) 88% 86% 84% 82% 8 78% 76% 74% 72% % -2.8% 82% 81.5% 86.1% 81% % 81.6% 79% 78.1% 8.3% 78% 78.8% 77.4% 77% 76.3% 76% 75% 74% 73% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 12 Deposits To Assets (%) % 8.8% 78.1% 75.5% 77.4% 93.3% 79.8% 77.8% 84. Country Average 78.8% 66.1% % 2 Niu Ailan Alekano Manus 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -4.9% -.7% -6..4% -1.6% 1.6%.1% -8.8% -9.7% Deposits To Assets (%) % 13.4% 81.5% 8.8% 84.1% 78.1% 75.1% 75.5% % 91.6% 93.3% 79.7% 86.6% 79.8% 77.8% 75.8% 66.1% Niu Ailan Alekano Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 39

41 Loan To Deposit Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 64.2% 7.4% 48.8% 52.9% S&L % 6.3%.8% 53.2% 68.6% Tot Country Total % 63.3% 5.9% 52.5% 59.9% by Peer Group Median and Weighted Average 66% 64% 7.4%.8% 5.9% 64.2% 63.3% 62% % Loan To Deposit (%) 62% 6 58% 56% 54% 56.7% 59.5% 6.3% 57.4% 58% 56% 54% 52% % 52.5% 52.3% 52% 48% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 14 Loan To Deposit (%) % 48.8% 4.9% 118.2% Country Average 63.3% 64.2% 6.3% 53.9% 52.5% 49.6% % Alekano Niu Ailan Manus 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 9.9% 17.8% -4.7% 2.3% 14.3% 24.2% -4.7%.1% 8.9% % Loan To Deposit (%) % % 76.3% 53.6% 48.8% 38.6% 4.9% 2.3% 16.6% 94.1% Alekano 58.7% 53.9% 52.4% 52.5% 49.6% 4.7% Niu Ailan Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 4

42 Capital To Asset Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % % 14.6% 25.3% S&L 4 8.6% 9..3% 8.1% 1.8% Tot Country Total % % 13.4% 18.8% by Peer Group Median and Weighted Average Capital To Asset (%) 2 18% 16% 14% 12% 1 8% 6% 4% 2% 1.8%.3% 1.6% % % 16.9% 16.2% % 14.5% 12.9% 13.4% 14% 12% 8.6% % 6% 4% 2% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () % Capital To Asset (%) % 3.6% % 13.4% 11.6% % Country Average % Manus Niu Ailan -3.7% Alekano 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 6..9% 9.1%.5% -.8% 7.7% -.5% -1.1% -4.2% % 64.5% Capital To Asset (%) % 22.4% 5.6% 14.6% 12.9% 13.4% 12.3% 11.6% 22.9% 3.6% Manus 12.9% 12.4% 4.9% 3.8% Niu Ailan.5% Alekano -3.7% % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 41

43 Revenues&Expenses 42

44 Financial Revenue / Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 19.6%.8% 17.2% 17.7% S&L % 11.1% -1.5% 12.1% 11. Tot Country Total % 17.8%.4% 12.5% 14.7% by Peer Group Median and Weighted Average Financial Revenue / Assets (%) 25% 2 15% 1 5%.8% -1.5%.4% 15% 14.7% 15% 18.8% 19.6% 17.4% 17.8% 14% 13.5% 13.5% 14% 12.6% 11.1% 13% 12.5% 13% 12% 12% 11% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 3 Financial Revenue / Assets (%) 25% 2 15% % 22.8% 17.2% 12.5% 11.9% 19.6% 12.5% 12.2% 11.9% Country Average 17.8% 11.1% 7.5% 5% Manus Alekano Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 1.7%.1%.8% 3.7% 7.5% -2.9% -1.3% 1.5%. 3 Financial Revenue / Assets (%) 25% 2 15% 1 5% 24.4% 22.7% 22.7% 22.8% 16.4% 17.2% 8.8% 15.4% 13.5% 12.5% 11.9% 12.5% 12.2% 11.9% 1.5% 4.4% 7.5% 7.5% Manus Alekano Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 43

45 Profit margin Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro 5-2.1% -8.4% 11.7% -9.1% -5.7% S&L % -3.8% -17.3% % Tot Country Total % -7.8% 6.7% -8.3% -29.3% by Peer Group Median and Weighted Average Profit margin (%) 2 15% 1 5% -5% -1-15% -2-25% 11.7% -17.3% 6.7% 13.5% Micro Total -3.8% -8.4% -7.8% -14.5% -2.1% % Median Weighted Average -8.3% -29.3% -15.6% Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Profit margin (%) % % -8.4% 23.8% 14.2% -8.3% -3.8% Country Average -7.8% % % Manus Niu Ailan Alekano 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () 69.6%.7% -6.1% 53.5% 643.1% -29.3%.8% -18.3% -27.9% Profit margin (%) % 17.3%.3% % -9.1% -8.9% % % 53.1% 23.8% 13.4% 14.2% % % Manus Niu Ailan Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 44

46 Yield On Gross Portfolio Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 35.3% -.1% 36.3% 41.8% S&L % 17.7%.1% 16.8% 16.6% Tot Country Total % 31.2%.1% 21.8% 3.6% by Peer Group Median and Weighted Average Yield On Gross Portfolio (%) 4 35% 3 25% 2 15% 1 5% -.1%.1%.1% 35% 35.4% 35.3% 3.6% % 31.2% 25.7% 25.1% 25% 21.8% % 17.7% 15% 1 5% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () % Yield On Gross Portfolio (%) % 36.3% 28.9% % 21.8% 2.8% Country Average 31.2% 17.7% 12.9% 1.9% Manus Niu Ailan Alekano 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY (). -.4%.4% -.1% -2.6% 1.4% %.2% % Yield On Gross Portfolio (%) % 39.7% 35.9% 36.3% % 22.7% 28.8% % 21.8% 2.8% 13.6% 12.9% 1.7% 1.9% Manus Niu Ailan Alekano % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 45

47 Total Expense / Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 21.3% -1.3% 26.6% 24.8% S&L 4 1.9% 12.3% 1.4% 12.1% 11.9% Tot Country Total % 19.3% -.6% 16.7% 19.1% by Peer Group Median and Weighted Average Total Expense / Assets (%) 25% 2 15% 1 5% -1.3% 1.4% -.6% 25% 22.6% 21.3% 19.9% 19.6% 19.3% % 16.7% 15% 13.9% 12.3% 1.9% 1 5% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 4 Total Expense / Assets (%) 35% 3 25% 2 15% % 31.1% 26.6% 22.6% 1.3% 21.3% 16.7% % Country Average 19.3% 12.3% 6.4% 5% Alekano Manus Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () % 3.2% -.1% -3.1% % % Total Expense / Assets (%) 45% 4 35% 3 25% 2 15% 1 5% 4.5% 33.5% 38.4% 31.1% 26.6% 23.4% 22.6% 22.6% 13.4% 1.3% 11.7% 16.7% 13.9% % 6.3% 6.5% 6.4% Alekano Manus Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 46

48 Financial Expense / Assets Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro 5 1.2%.8% -.3%.5%.5% S&L % -.4% 1.3% 1.2% Tot Country Total 9 1.4% % 1.1%.8% by Peer Group Median and Weighted Average Financial Expense / Assets (%) 3% 2% 2% 1% 1% -.3% -.4% -.4% 2% 1.4% 1% % 1% 1.1% 1.6% 1% 1.4%.8% 1.2% 1% 1..8% 1% Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () Financial Expense / Assets (%) 3% 2% 2% 1% 1% 1.2% 1.1%.5%.8% 2.2% 1.5% 1.1% Country Average %... Niu Ailan Alekano Manus 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () -.3% -.4%. -.7% -.2%.1% 4% Financial Expense / Assets (%) 3% 3% 2% 2% 1% 1% 1.5% 1.4% 1.2% 1.1%.5%.5%. 2.6%.. 2.9% 2.2% 1.6% 1.5% 1.1% 1... Niu Ailan Alekano Manus % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 47

49 Operating Expense / Loan Portfolio Year on Year Variance by Peer Group Legal Status Number of Weighted Average Median (Peer Group) Institutions (WAV) Mic Micro % 38.7% -.4% 34.1% 222.6% S&L % 19.8%.2% 2.4% 19.1% Tot Country Total % 34.3% -.1% 26.8% 132.2% by Peer Group Median and Weighted Average Operating Expense / Loan Portfolio (%) 45% 4 35% 3 25% 2 15% 1 5% -.4%.2% -.1% % 39.2% 38.7% 34.4% 34.3% % 19.8% % 26.8% 28.2% 2 Micro Total Median Weighted Average Institutional Benchmark by Peer Group for SAVINGS & LOAN SOCIETY () 12 Operating Expense / Loan Portfolio (%) % Country Average 34.3% 41.5% 19.8% 34.1% 31.8% 26.8% 23.9% % 11.8% 38.7% Manus Alekano Niu Ailan 215 Country Average Year-on-Year per Institution SAVINGS & LOAN SOCIETY () Operating Expense / Loan Portfolio (%) #N/A 978.7% -4.9% 1.2% -27.4% 8.1% % 3.3% -.7% 46.4% 41.5% 32.8% 34.1% 59.2% 31.8% 18.8% 26.8% 16.9% 23.9% 24.6% % 17.9% 12.6% 11.8% Manus Alekano Niu Ailan % Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) The ratios are calculated as per WAV i.e. weighted average value for the period under review 48

50 InstitutionProfile 49

51 List of Financial Service Providers (FSPs) Micro 1. Limited 2. Limited 3. bank Limited 4. Limited 5. Limited Savings and Loan Society Limited 1. Alekano Savings & Loan Society Limited 2. Savings & Loan Society Limited 3. Manus Savings & Loans Society Limited 4. Niu Ailan Savings & Loan Society Limited 5

52 Alekano Savings & Loan Society Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Alekano Savings & Loan Society Limited Alekano Savings and Loan Society Outreach Indicators Outreach Outreach Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers % 2,78 2,71 Average loan balance per borrower (PGK) 12,838 7,65-4.8% 3,899 6, Deposits (PGK) m % Number of depositors 12,88 9, % 12,8 42,554 Number of deposit accounts 12,88 9, % 14,91 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Country Average Average Assets (PGK) m Equity (PGK) m % Offices Personnel % Loan to deposit 94.1% 118.2% 12,838 GLP (PGK) m 7,65 Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Country Average Average Portfolio at risk > 3 days #N/A 77.1% NM % Portfolio at risk > 9 days #N/A 54.3% NM 45.1% 17. Risk coverage #N/A 5.3% NM 5.5% 27.7% PAR> 9 days PAR> 3 days #N/A #N/A Asset Quality 54.3% 77.1% Financial Indicators Productivity & Efficiency Country Average Average Borrowers per staff member % Deposit accounts per staff member % Productivity Cost per borrower (PGK) , % ,3. Cost per deposit accounts (PGK) Sustainability & Profitability Country Average Average Operational self sufficiency 89.3% 71.4% -17.8% 9.5% 92. Return on assets -1.3% -4.8% -3.5% -1. Return on equity -13.5% 299.4% 42.9% -5% -6.9% Borrowers per staff member Deposit accounts per staff member Sustainability & Profitability 299.4% Financing Structure Country Average Average Gross loan portfolio to total assets 81.5% % 5.7% 49.9% 89.3% 71.4% -1.3% -4.8% Deposits to total assets 86.6% 77.8% -8.8% % Loan to deposit 94.1% 118.2% 24.2% 6.3% 63.3% Capital /asset ratio.5% -3.7% -4.2% Operational self sufficiency Return on Assets -13.5% Return on Equity Revenues & Expenses Country Average Average Financial revenue / assets 1.5% 11.9% 1.5% 11.1% 17.8% Revenue & Expense 14.6% 17.9% Profit margin % -3.8% -7.8% Yield on gross portfolio 1.7% 1.9%.2% 17.7% 31.2% 1.7% 1.9% Total expense / assets 11.7% 16.7% % 19.3% Financial expense / assets %.1% 1.6% 1. Operating expense / loan portfolio 14.6% 17.9% 3.3% 19.8% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 51

53 Savings and Loan Society Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Savings and Loan Society Limited Savings and Loan Society Outreach Indicators Outreach Outreach Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 2,435 2,52 2.8% 2,78 2,71 Average loan balance per borrower (PGK) 7,26 6, % 3,899 6, Deposits (PGK) m % Number of depositors 21,348 22, % 12,8 42,554 Number of deposit accounts 24,855 27, % 14,91 43,529 Average deposit balance per account (PGK) 1,212 1, % Institutional Characteristics Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel % Loan to deposit 58.7% 53.9% 7,26 GLP (PGK) m 6,211 Deposits (PGK) m 1,212 1,31 Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Country Average Average Portfolio at risk > 3 days 28.2% 47.4% 19.2% % Portfolio at risk > 9 days 19.7% 36.8% 17.1% 45.1% 17. Risk coverage 5.4% 6.1%.7% 5.5% 27.7% PAR> 9 days PAR> 3 days Asset Quality 28.2% 19.7% 36.8% 47.4% Financial Indicators Productivity & Efficiency Country Average Average Borrowers per staff member % Productivity Deposit accounts per staff member % Cost per borrower (PGK) 1, , % ,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Country Average Average Operational self sufficiency 111.1% 83.1% % 92. Return on assets 1.5% % -1. Return on equity 33.9% -23.7% -57.6% -5% -6.9% 111.1% Borrowers per staff member Deposit accounts per staff member 83.1% Sustainability & Profitability Financing Structure Country Average Average Gross loan portfolio to total assets 53.8% 5.3% -3.5% 5.7% 49.9% Deposits to total assets 91.6% 93.3% 1.6% % Loan to deposit 58.7% 53.9% -4.7% 6.3% 63.3% Capital /asset ratio 4.9% 3.8% -1.1% Operational self sufficiency 1.5% -1. Return on Assets 33.9% -23.7% Return on Equity Revenues & Expenses Country Average Average Financial revenue / assets 15.4% 12.5% -2.9% 11.1% 17.8% Profit margin % -18.3% -3.8% -7.8% 2.4% Revenue & Expense 21.8% 24.6% 23. Yield on gross portfolio 2.4% 21.8% 1.4% 17.7% 31.2% Total expense / assets 13.9% % 12.3% 19.3% Financial expense / assets 2.9% 2.2% -.7% 1.6% 1. Operating expense / loan portfolio 24.6% % 19.8% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 52

54 Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Limited Micro Outreach Indicators Outreach Outreach Micro Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 7,793 7,69-9.3% 3,199 2,71 Average loan balance per borrower (PGK) % 7,29 6, Deposits (PGK) m % Number of depositors 22,69 31, % 66,358 42,554 Number of deposit accounts 28,189 31, % 66,425 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Micro Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel Loan to deposit 53.6% 48.8% 86 GLP (PGK) m 912 Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Micro Country Average Average Portfolio at risk > 3 days 98.6% 74.2% -24.4% 11.4% 21.4% Portfolio at risk > 9 days 96.4% 62.8% -33.5% 9.1% 17. Risk coverage 61.2% 74.9% 13.7% 59.2% 27.7% PAR> 9 days PAR> 3 days Asset Quality 74.2% 62.8% 98.6% 96.4% Financial Indicators Productivity & Efficiency Micro Country Average Average Borrowers per staff member % Productivity 1,44 1,158 Deposit accounts per staff member 1,44 1, % Cost per borrower (PGK) ,67.3 2,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Micro Country Average Average Operational self sufficiency 42.7% 55.3% 12.6% 92.3% 92. Return on assets -15.5% -9.7% 5.8% -1% -1. Return on equity % -94.3% 197.6% -7% -6.9% 42.7% Borrowers per staff member Deposit accounts per staff member 55.3% Sustainability & Profitability -15.5% -9.7% Micro Country Financing Structure Average Average Gross loan portfolio to total assets % -7.5% 49.6% 49.9% -94.3% Deposits to total assets 18.3% 13.4% -4.9% 77.4% 78.8% Loan to deposit 53.6% 48.8% -4.7% 64.2% 63.3% Capital /asset ratio 5.6% 14.6% 9.1% Operational self sufficiency Return on Assets % Return on Equity Revenues & Expenses Micro Country Average Average Financial revenue / assets 16.4% 17.2%.8% 19.6% 17.8% Profit margin % -8.9% 53.5% -8.4% -7.8% 22.7% Revenue & Expense % 26.8% Yield on gross portfolio 22.7% % 35.3% 31.2% Total expense / assets 38.4% 31.1% -7.4% 21.3% 19.3% Financial expense / assets....8% 1. Operating expense / loan portfolio 18.8% 26.8% 8.1% 38.7% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 53

55 Manus Savings & Loans Society Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Manus Savings & Loans Society Limited Manus Savings and Loan Society Outreach Indicators Outreach Country Outreach Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 2,22 1, % 2,78 2,71 Average loan balance per borrower (PGK) 1,297 3, % 3,899 6, Deposits (PGK) m % Number of depositors 7,8 8, % 12,8 42,554 Number of deposit accounts 7,8 8, % 14,91 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel Loan to deposit 4.7% 49.6% 1,297 GLP (PGK) m 3,3 Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Country Average Average Portfolio at risk > 3 days 13.5% % % Portfolio at risk > 9 days 11.7% 61.6% 49.8% 45.1% 17. Risk coverage 35.2% 7.2% -28.1% 5.5% 27.7% PAR> 9 days PAR> 3 days 13.5% 11.7% Asset Quality 61.6% 68. Financial Indicators Productivity & Efficiency Country Average Average Borrowers per staff member % Productivity 975 1,95 Deposit accounts per staff member 975 1, % Cost per borrower (PGK) ,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Country Average Average Operational self sufficiency 213.4% 131.2% -82.2% 9.5% 92. Return on assets 7.2% 2.9% -4.3% -1. Return on equity 33.3% 1.8% -22.6% -5% -6.9% 213.4% Borrowers per staff member Deposit accounts per staff member Sustainability & Profitability Financing Structure Country Average Average Gross loan portfolio to total assets 3.9% 32.8% 1.9% 5.7% 49.9% Deposits to total assets 75.8% 66.1% -9.7% % 131.2% 7.2% 2.9% 33.3% 1.8% Loan to deposit 4.7% 49.6% 8.9% 6.3% 63.3% Capital /asset ratio 22.9% 3.6% 7.7% Operational self sufficiency Return on Assets Return on Equity Revenues & Expenses Country Average Average Financial revenue / assets 13.5% 12.2% -1.3% 11.1% 17.8% Profit margin 53.1% 23.8% -29.3% -3.8% -7.8% Yield on gross portfolio 28.8% 2.8% % 31.2% 28.8% Revenue & Expense 2.8% 16.9% 23.9% Total expense / assets 6.3% 9.3% % 19.3% Financial expense / assets % 1. Operating expense / loan portfolio 16.9% 23.9% % 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 54

56 Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Limited Micro Outreach Indicators Outreach Micro Country Outreach Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 2,25 2, % 3,199 2,71 Average loan balance per borrower (PGK) 19,835 16, ,29 6,77 Deposits (PGK) m % Number of depositors 147, ,23 1.1% 66,358 42,554 Number of deposit accounts 147, ,23 1.1% 66,425 43,529 Average deposit balance per account (PGK) % GLP (PGK) m Deposits (PGK) m Loan to deposit 72.1% 82. Institutional Characteristics Micro Country Average Average Assets (PGK) m % Equity (PGK) m % Offices % 7 5 Personnel ,835 16,662 Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Micro Country Average Average Portfolio at risk > 3 days 7.8% 8.4%.5% 11.4% 21.4% Portfolio at risk > 9 days 7.7% 7.5% -.2% 9.1% 17. Risk coverage 68.4% 56.4% -12.1% 59.2% 27.7% PAR> 9 days PAR> 3 days Asset Quality 7.8% 7.7% 7.5% 8.4% Financial Indicators Productivity & Efficiency Micro Country Average Average Borrowers per staff member % Productivity 861 1,19 Deposit accounts per staff member 861 1, % Cost per borrower (PGK) 5, , % 2,67.3 2,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Micro Country Average Average Operational self sufficiency 1.3% 11..7% 92.3% 92. Return on assets.2%.1% -.1% -1% -1. Return on equity 2.3%.6% -1.7% -7% -6.9% 1.3% Borrowers per staff member Deposit accounts per staff member 11. Sustainability & Profitability Financing Structure Micro Country Average Average Gross loan portfolio to total assets 6.6% % 49.6% 49.9% Deposits to total assets 84.1% 78.1% % 78.8% Loan to deposit 72.1% % 64.2% 63.3% Capital /asset ratio 12.3% 11.6% -.8% Operational self sufficiency.2%.1% 2.3%.6% Return on Assets Return on Equity Revenues & Expenses Micro Country Average Average Financial revenue / assets 22.7% 22.8%.1% 19.6% 17.8% 35.9% Revenue & Expense 36.3% Profit margin.3% 1..7% -8.4% -7.8% Yield on gross portfolio 35.9% 36.3%.4% 35.3% 31.2% Total expense / assets 22.6% 22.6% -.1% 21.3% 19.3% 32.8% 34.1% Financial expense / assets 1.5% 1.2% -.3%.8% 1. Operating expense / loan portfolio 32.8% 34.1% 1.2% 38.7% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 55

57 Niu Ailan Savings & Loan Society Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Niu Ailan Savings & Loan Society Limited Niu Ailan Savings and Loan Society Outreach Indicators Outreach Outreach Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 3,498 3, % 2,78 2,71 Average loan balance per borrower (PGK) 1,829 1, % 3,899 6, Deposits (PGK) m % Number of depositors 1,22 1, % 12,8 42,554 Number of deposit accounts 12,871 13, ,91 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel Loan to deposit 52.4% 52.5% 1,829 GLP (PGK) m 1,727 Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Country Average Average Portfolio at risk > 3 days 5.9% 52.8% 1.9% % Portfolio at risk > 9 days 44.1% 47.3% 3.2% 45.1% 17. Risk coverage 4.2% 3.9% -.3% 5.5% 27.7% PAR> 9 days PAR> 3 days Asset Quality 44.1% 47.3% 5.9% 52.8% Financial Indicators Productivity & Efficiency Country Average Average Borrowers per staff member Productivity Deposit accounts per staff member % Cost per borrower (PGK) % ,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Country Average Average Operational self sufficiency 115.5% 116.6% 1.1% 9.5% 92. Return on assets %.1% -1. Return on equity 7.8% 8.4%.6% -5% -6.9% 115.5% Borrowers per staff member Deposit accounts per staff member 116.6% Sustainability & Profitability Financing Structure Country Average Average Gross loan portfolio to total assets 41.8% 41.9%.1% 5.7% 49.9% Deposits to total assets 79.7% 79.8%.1% % % 7.8% 8.4% Loan to deposit 52.4% 52.5%.1% 6.3% 63.3% Capital /asset ratio 12.9% 12.4% -.5% Operational self sufficiency Return on Assets Return on Equity Revenues & Expenses Country Average Average Financial revenue / assets 7.5% 7.5%. 11.1% 17.8% Profit margin 13.4% 14.2%.8% -3.8% -7.8% 13.6% Revenue & Expense 12.9% 12.6% Yield on gross portfolio 13.6% 12.9% -.7% 17.7% 31.2% Total expense / assets 6.5% 6.4% -.1% 12.3% 19.3% 11.8% Financial expense / assets 1.6% 1.5% -.2% 1.6% 1. Operating expense / loan portfolio 12.6% 11.8% -.7% 19.8% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 56

58 bank Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page bank Limited Micro Outreach Indicators Outreach Micro Country Outreach Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 1,722 2, % 3,199 2,71 Average loan balance per borrower (PGK) 9,72 8, % 7,29 6, Deposits (PGK) m % Number of depositors 38,389 6, % 66,358 42,554 Number of deposit accounts 38,389 6, % 66,425 43,529 Average deposit balance per account (PGK) 1, % GLP (PGK) m Deposits (PGK) m Loan to deposit 38.6% 4.9% Institutional Characteristics Micro Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel % ,72 8,646 1,128 Average loan balance per borrower Average deposit balance per account (PGK) (PGK) 96 Asset Quality Micro Country Average Average Portfolio at risk > 3 days 2.3% 3.6% 1.3% 11.4% 21.4% Portfolio at risk > 9 days. 1.8% 1.8% 9.1% 17. Risk coverage 47.2% 44.3% -2.9% 59.2% 27.7% PAR> 9 days PAR> 3 days. Asset Quality 1.8% 2.3% 3.6% Financial Indicators Productivity & Efficiency Micro Country Average Average Borrowers per staff member Deposit accounts per staff member % Productivity Cost per borrower (PGK) #N/A 2,887.2 NM 2,67.3 2,3. Cost per deposit accounts (PGK) #N/A 126. NM Sustainability & Profitability Micro Country Average Average Operational self sufficiency 65.7% 12.9% 55.2% 92.3% 92. Return on assets -4.6% 2.2% 6.8% -1% -1. Return on equity -21.6% 9.8% 31.5% -7% -6.9% Borrowers per staff member Deposit accounts per staff member 12.9% Sustainability & Profitability Financing Structure Micro Country Average Average Gross loan portfolio to total assets % 1.9% 49.6% 49.9% Deposits to total assets 75.1% 75.5%.4% 77.4% 78.8% Loan to deposit 38.6% 4.9% 2.3% 64.2% 63.3% Capital /asset ratio 21.5% 22.4%.9% % Operational self sufficiency 2.2% -4.6% Return on Assets -21.6% 9.8% Return on Equity Revenues & Expenses Micro Country Average Average Financial revenue / assets 8.8% 12.5% 3.7% 19.6% 17.8% Revenue & Expense 59.2% Profit margin -52.3% 17.3% 69.6% -8.4% -7.8% Yield on gross portfolio % -.1% 35.3% 31.2% Total expense / assets 13.4% 1.3% -3.1% 21.3% 19.3% % 31.8% Financial expense / assets.5%.5%..8% 1. Operating expense / loan portfolio 59.2% 31.8% -27.4% 38.7% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 57

59 Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Limited Micro Outreach Indicators Outreach Outreach Micro Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers 3,476 3, % 3,199 2,71 Average loan balance per borrower (PGK) 11,59 12, % 7,29 6, Deposits (PGK) m % Number of depositors 79,568 65, % 66,358 42,554 Number of deposit accounts 79,568 65, % 66,425 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Micro Country Average Average Assets (PGK) m % Equity (PGK) m % Offices % 7 5 Personnel % Loan to deposit 58.5% 76.3% 11,59 GLP (PGK) m 12,72 Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Micro Country Average Average Portfolio at risk > 3 days 6.7% % 11.4% 21.4% Portfolio at risk > 9 days 3.9% 6.2% 2.3% 9.1% 17. Risk coverage 39.8% 44.9% 5.1% 59.2% 27.7% PAR> 9 days PAR> 3 days Asset Quality 3.9% 6.2% 6.7% 9. Financial Indicators Productivity & Efficiency Micro Country Average Average Borrowers per staff member % Productivity Deposit accounts per staff member % Cost per borrower (PGK) 4, , % 2,67.3 2,3. Cost per deposit accounts (PGK) % Sustainability & Profitability Micro Country Average Average Operational self sufficiency % -5.4% 92.3% 92. Return on assets -.7% -2.2% -1.5% -1% -1. Return on equity -5.1% % -7% -6.9% 97. Borrowers per staff member Deposit accounts per staff member 91.6% Sustainability & Profitability Financing Structure Micro Country Average Average Gross loan portfolio to total assets 47.6% 61.6% % 49.9% Deposits to total assets 81.5% 8.8% -.7% 77.4% 78.8% Loan to deposit 58.5% 76.3% 17.8% 64.2% 63.3% Capital /asset ratio 12.9% 13.4%.5% Operational self sufficiency -.7% -2.2% -5.1% -17. Return on Assets Return on Equity Revenues & Expenses Micro Country Average Average Financial revenue / assets 22.7% 24.4% 1.7% 19.6% 17.8% Revenue & Expense 46.4% Profit margin -3.1% -9.1% -6.1% -8.4% -7.8% Yield on gross portfolio 4.1% 39.7% -.4% 35.3% 31.2% Total expense / assets 23.4% 26.6% 3.2% 21.3% 19.3% 4.1% 39.7% 41.5% Financial expense / assets 1.4% 1.1% -.4%.8% 1. Operating expense / loan portfolio 46.4% 41.5% -4.9% 38.7% 34.3% Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 58

60 Limited Profile Information Name of the Institution Search on MIX Market Legal Status (Peer Group) MIX Market page Limited Micro Outreach Indicators Outreach Micro Country Average Average Gross Loan Portfolio (PGK) m % Number of active borrowers % 3,199 2,71 Average loan balance per borrower (PGK) 711 1, % 7,29 6,77 Deposits (PGK) m % Number of depositors 1,65 12, % 66,358 42,554 Number of deposit accounts 1,65 13, % 66,425 43,529 Average deposit balance per account (PGK) % Institutional Characteristics Micro Country Average Average Assets (PGK) m % Equity (PGK) m % Offices Personnel % Outreach Loan to deposit 2.3% 16.6% 711 GLP (PGK) m.6 1, Deposits (PGK) m Average loan balance per borrower Average deposit balance per account (PGK) (PGK) Asset Quality Micro Country Average Average Portfolio at risk > 3 days. #N/A NM 11.4% 21.4% Portfolio at risk > 9 days. #N/A NM 9.1% 17. Risk coverage #N/A #N/A NM 59.2% 27.7% PAR> 9 days PAR> 3 days. #N/A. #N/A Asset Quality Financial Indicators Productivity & Efficiency Micro Country Average Average Borrowers per staff member % Productivity Deposit accounts per staff member % Cost per borrower (PGK) #N/A 12,44.1 NM 2,67.3 2,3. Cost per deposit accounts (PGK) #N/A NM Sustainability & Profitability Micro Country Average Average Operational self sufficiency 1.8% 35.5% 24.7% 92.3% 92. Return on assets -25.4% -15.1% 1.2% -1% -1. Return on equity -37.3% -24.4% 12.9% -7% -6.9% Borrowers per staff member Deposit accounts per staff member 35.5% Sustainability & Profitability 1.8% Financing Structure Micro Country Average Average Gross loan portfolio to total assets.8% 5.4% 4.6% 49.6% 49.9% Deposits to total assets % -1.6% 77.4% 78.8% -25.4% -15.1% -37.3% -24.4% Loan to deposit 2.3% 16.6% 14.3% 64.2% 63.3% Capital /asset ratio 58.5% 64.5% Operational self sufficiency Return on Assets Return on Equity Revenues & Expenses Micro Country Average Average Financial revenue / assets 4.4% 11.9% 7.5% 19.6% 17.8% Revenue & Expense 978.7% Profit margin % % 643.1% -8.4% -7.8% Yield on gross portfolio #N/A 83.9% NM 35.3% 31.2% Total expense / assets 4.5% 33.5% % 19.3% Financial expense / assets 2.6%. -2.6%.8% 1. Operating expense / loan portfolio #N/A 978.7% NM 38.7% 34.3% #N/A 83.9% #N/A Yield on gross portfolio (nominal) Operating expense / loan portfolio Notes: (i) #N/A represents 'Data Not Available' (ii) NM = Not meaningful (iii) FY = Fiscal year from January to December (iv) m = Millions (v) = Savings and Loan Society (vi) All the ratios provided for benchmarking in relevant peer average and country average columns are weighted average values (WAV) 59

61 Glossary S.no Indicators Outreach 1 Gross Loan Portfolio 2 Number of active borrowers 3 Average loan balance per borrower Indicators Definitions All outstanding principals due for all outstanding client loans. This includes current, delinquent, and renegotiated loans, but not loans that have been written off. The number of individuals or entities who currently have an outstanding loan balance with the I or are primarily responsible for repaying any portion of the Loan Portfolio, Gross. Individuals who have multiple loans with an FSPs are counted as a single borrower. Gross loan portfolio divided by total number of active borrowers. That measures outstanding loan accessed by borrower. [Formula: Gross Loan Portfolio/ Number of active borrowers] 4 Deposits 5 Number of depositors 6 Number of deposit accounts 7 Average deposit balance per account Institutional Characteristics 7 Assets 8 Equity 9 Offices 1 Personnel Asset Quality 11 Portfolio at risk > 3 days (%) 12 Portfolio at risk > 9 days (%) 13 Risk coverage Productivity & Efficiency 14 Borrowers per staff member 15 Deposit accounts per staff member 16 Cost per borrower 17 Cost per deposit accounts Sustainability/Profitability 18 Operational self sufficiency 19 Return on assets 2 Return on equity Financing Structure 21 Gross loan portfolio to assets 22 Deposits to assets 23 Loan to deposit 24 Capital to asset Revenues & Expenses 25 Financial revenue / assets 26 Profit margin 27 Yield on gross portfolio 28 Total expense / assets 29 Financial expense / assets 3 Operating expense / loan portfolio The total value of funds placed in an account with the FSP that are payable to a depositor. Number of clients with any type of deposit account, whether voluntary or compulsory. The number of deposit accounts opened with the FSP. These accounts represent an individual account holders and not a groups. Total deposits divided by number of deposit accounts that measure deposit balance held per account. [Formula: Deposits/ Number of deposit accounts] Total of all net asset accounts Total of all equity accounts, less any distributions. The number of staffed points of service and administrative sites used to deliver or support the delivery of financial services to microfinance clients. Total number of staff members, individuals who are actively employed by an entity. Represents the portion of loans greater than 3 days past due compared to gross loan portfolio. [Formula: (Amount of Portfolio at Risk, over one month or more + Renegotiated Loans)/ Gross Loan Portfolio] Represents the portion of loans greater than 9 days past due compared to gross loan portfolio. [Formula: (Amount of Portfolio at Risk, over nintey day and more + Renegotiated Loans)/ Gross Loan Portfolio] Measures how much of the portfolio at risk is covered by an FSP with loan-loss allowance. [Formula: Impairment Loss Allowance/ Amount of Portfolio at risk over one month or more ] Measures overall productivity of the personnel for serving the borrowers. [Formula: Number of Active Borrowers / Personnel] Measures the overall productivity of the personnel managing deposit accounts. [Formula: Number of Deposit Accounts/ Personnel] Represents the average cost of maintaining an active borrower [Formula: Operating Expense/ Average Number of Active Borrowers] Represents the average cost of maintaining a deposit account [Formula: Operating Expense/ Average Deposit Accounts] Measures the FSPs ability to cover its costs through operating incomes. [Formula: Financial Revenue / (Financial Expense + Net Impairment Loss + Operating Expense)] Measures how the FSP is managing its assets to optimize its profitability. [Formula: (Net Operating Income, less Taxes)/ Average Assets] Measures FSPs ability to build equity through retained earnings. [Formula: (Net Operating Income, less Taxes)/ Average Equity] Measures FSPs allocation of assets to its lending activity, considered to be the primary business activity for the FSP. [Formula: Gross loan portfolio / Total Assets] Measures the portion of FSPs assets that are funded by deposits. [Formula: Total Deposits / Total Assets] Measures the proportion of loans relative to deposits to assess the liquidity. [Formula: Gross loan portfolio/ Total Deposits] Measure of the solvency of a FSP, helping to assess its ability to meet its obligations and absorb unexpected losses. [Formula: Total Equity/ Total Assets] Represents the total revenue generated by the FSPs core business operations as a percentage of its assets. [Formula: Financial Revenue/ Average Total Assets] Measures the profitability of the FSP from earnings on core business operations. [Formula: Net Operating Income/ Financial Revenue] Estimate's FSP ability to generate revenues from interest, fees and commissions on the gross loan portfolio. [Formula: Interest and Fees on Loan Portfolio/ Average Gross Loan Portfolio] All expenses incurred to support FSPs core business activities. [Formula: (Financial Expense + Impairment Loss + Operating Expense) / Average assets] Determines the proportion of total financial expense incurred by a FSP to fund its assets. [Formula: Financial Expense/ Average Assets] Measures all operating cost, including personnel, depreciation and amortisation & administrative cost incurred to deliver loans. [Formula: Operating Expense / Average Loan Portfolio] Note: FSP = Financial Service Provider. 6

62 List of Abbreviations: CEFI - The Centre for Excellence in Financial Inclusion FSPs - Financial Service Providers FY - Fiscal Year K - Kina, currency m - Millions MEP - Expansion Project NM - Not Meaningful PFI - Partner Financial Institution Papua New Guinea - Savings and Loan Society #N/A Data not available [WAV] - Weighted Average Value [Σ] - Total 61

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