Here is the third quarterly portfolio performance update of the year.
After two relatively slow quarters, volume really picked up over the last three months to match the high growth that we saw in the second half of 2012. Close to €1,1 million was disbursed in around 1550 loans which is the highest quarterly volume on the platform in four years!
Performance wise, the portfolio continues to be healthy. The portfolio at risk above 30 days (PAR30) stays below the 5 % mark and net defaults remain below 2 %. It is also positive to note that cancellations of open loans reduced from around €250,000 in the second quarter to €70,000 in the third.
There were some defaults in the quarter, primarily from BELITA, but these were more or less offset with recoveries coming in from Gatsby, BELITA and PRC. From an investor point of view, the overall net return is again positive at 1.7 % on loans disbursed by the current providers* in the last four years. It would thus appear that the overall net return has somewhat stabilised considering the previous quarters’ 1.6 % (Q2 2013), 1.5 % (Q1 2013), 1.7 % (Q4 2012) and 1.9 % (Q3 2012).
The Portfolio Performance Graph above shows the performance of loans disbursed since 2010 divided by quarter of disbursement. The colour blue shows funds that have already been repaid, green shows amounts that are being repaid on time, yellow indicates the balances on loans that are currently more than 30 days late, while red shows the net defaulted principal (i.e. defaulted principal less recoveries).
The high volume of disbursements was distributed through 9 providers, three in each of our countries of operation (Kenya, Uganda, Tanzania). KEEF and Tujijenge Tanzania were the most active, each accounting for 21 % of the disbursements, but we also had good volumes from Gatsby (14 %), Uganda Microcredit Foundation (13 %), and SISDO (12 %). The distribution of the funds can be seen in the graph below.
There were not a lot of changes in terms of the profit and loss. Loans disbursed in 2012 were further affected by currency losses, but the overall net result of 9 of the last 10 quarters – the exception still being Q3 2012 – continues to be positive seeing as interest earned covers losses on currency and defaults (see graphs below). Loans disbursed in 2013 have not been affected that much by currency fluctuations, but considering that 65 % is still outstanding on this portfolio, it is too soon to know how it will develop in the months to come.
The Profit & Loss graphs above show the current result on loans disbursed since 2010 divided by quarter of disbursement. In the first graph, the colour green shows the earned interest, the red indicates the net defaults (i.e. defaulted principal less recoveries), and the purple shows the net realised currency gains or losses. The second graph shows the same figures as a net sum to give an easy overview quarter by quarter.
The total MYC4 portfolio closed the quarter with an outstanding loan balance (OLB) of €2.24 million in 5,049 active loans. This is an increase from the previous quarter’s €2.17 million which means that the OLB is almost back where it was at the start of the year. Around 45 % of the portfolio is concentrated in Kenya where KEEF is the largest provider; 30 % is held in Uganda where Gatsby still dominates the picture; and with 25 % of the portfolio, Tanzania is really catching up through the increased activity of Tujijenge.
Remember that you can always monitor the development and performance of the portfolio in real-time by following this link: MYC4 Portfolio
* Current Providers: GrowthAfrica, Gatsby Microfinance Ltd, Micro Africa Ltd, Premier Resource Consulting, Tujijenge Tanzania, Fusion Capital Ltd, Makao Mashinani Ltd, Tujijenge Uganda, BELITA, KEEF, Yehu Microfinance Trust, SISDO, Fanikiwa Microfinance Company Ltd., Mtaji Credit Facility Ltd, and Uganda Microcredit Foundation Ltd.