SBI is dedicated to expanding access to capital, information and services for small & growing businesses, entrepreneurs and households, to catalyze

SBI is dedicated to expanding access to capital, information and services for small & growing businesses, entrepreneurs and households, to catalyze sustainable development and build an inclusive global financial system Finance for Development June 7, 2012

Our Business SBI advises its partners all types of financial institutions, funders and social enterprises in emerging economies in sustainable development and inclusive finance Utilizing business, finance and transaction practitioners Focusing on the fundamentals of banking, sustainable finance, entrepreneurship and sustainable development Delivering innovative and market-driven products and services Building capacity in our partners ability to increase access to finance locally Providing direct support to enterprises seeking access to finance and to achieve sustainability Sustaining long-term partnerships Copyright ShoreBank International Ltd. 2012 2

Delivery Framework Two Advisory Offerings Capacity Building and Transaction Advisory Services REGIONS Sub-Saharan Africa South & Southeast Asia Europe and Central Asia Latin America & the Caribbean Middle East and North Africa PRACTICE TEAMS Small Business Finance Microfinance Housing Finance Alternative Delivery Channels Enterprise Development Services SOLUTIONS & SERVICES Strategy Sales & Marketing Operations Risk Management SBI is committed to what we call "capital plus": the conviction that capacity constraints are often as significant a barrier to economic transformation as the lack of financial resources, and the two must be addressed in tandem. Copyright ShoreBank International Ltd. 2012 3

Results 80+ 200+ 107,296 $1.954 billion 670,000 > 6,600 > $210 million 6 > 20 12 Developing & transitional economies Partner financial institutions Loans or investments facilitated Loans disbursed by partners Active savers Loan officers and managers trained Raised in debt and equity vehicles Greenfield institutions Transformation engagements Operations around the world As of Q1, 2012 Copyright ShoreBank International Ltd. 2012 4

Lending for affordable housing brings new challenges Many concerns plague banks deepening their affordable housing lending line of business Is affordable housing lending profitable? We have inadequate staffing or technical ability. What will the costs be? It is difficult to verify income. Bank Do we have adequate infrastructure? Many borrowers are unbanked. Is affordable housing lending a strategic priority? Copyright ShoreBank International Ltd. 2012 5

First Microfinance Bank, Afghanistan INVESTOR International Finance Corporation SOLUTIONS SBI assessed a housing microfinance pilot that FMFB-A had previously launched. Based on the results of the pilot, SBI assisted in strengthening the product offerings, marketing strategy, policies and procedures and staff skills. Developed a Shariah-compliant Housing Microfinance Toolkit for Afghanistan. Incorporated energy efficiency components into the housing microfinance product. RESULTS The revamped program was rolled-out to eight additional branches. Today the portfolio is over $10 million and is 25% of total portfolio outstanding. The FMFB-A housing microfinance product serves as a model for the MENA region. Copyright ShoreBank International Ltd. 2012 6

HMF Risk Factors -- Mitigants RISK FACTORS Inadequate analysis of borrower income Construction cost overruns and poor use of materials Building seasonality in cold climates Over-indebtedness; In Afghanistan 21% of arrears had HMF plus business loan Security of land tenure MITIGANTS Use financial analysis tools over period of time Construction technical assistance Market internal repairs during off-season MFI should impose lending overall limits on borrowers; monitor debts Tenure screening tools Copyright ShoreBank International Ltd. 2012

Thank you Ms. Lauren Moser Counts Vice President; Head, Housing Finance Practice lmoser@sbksbi.com Copyright ShoreBank International Ltd. 2012 12