MIX collects financial, operational, and social performance data from MFIs around the world for display on MIX Market. View the video tutorial for a more in-depth look at the MIX data collection process.
Below you will find information about the way MFI data is displayed on MIX Market:
General Calculations
Databases
MFI data exist in one, unified database, some elements of which are kept confidential, per our agreements for the MicroBanking Bulletin benchmarks data. Historical MFI data were merged into a single data set. Where discrepancies existed between the data sets for a given MFI and period, MIX reviewed the data records to ensure we maintained the higher quality data.
Currency Translation
Income statement items and other "flow" data are translated into USD or other currencies using average rates for the period covered. Balance sheet items and other "stock" data are translated using period ending rates. This new currency translation impacts results displayed in USD for the income statement and derivative ratios. You may notice changes to any ratios that compare income statement data to balance sheet accounts, such as returns, revenue or expense ratios. This change also means that recalculation of historical benchmarks may vary from those calculated using the previous method. This new currency translation approach brings MIX in line with best practices in financial reporting.
Averages
Average values are calculated based on existing prior period data. If restatements are made to opening balances, these restatements are made to the prior period, keeping a single figure for the opening balance. In addition, in the case that interim results, other than annual results, are available, those data points are used in average calculation.
Annualized Results
MIX annualizes MFI performance indicators for MFIs that submit results for annual performance data that are greater than or less than a full year – because the MFI is a start-up that year, the MFI has transformed legal status and is reporting only for the period under the new charter, or for other reasons. Annualization compares the full period (a year) against the number of days covered in the results reported to create an annualization factor. All indicators that include flow data (such as information from income statements) are then annualized using this factor.
Balance Sheet
Deposits
Total deposits, whether voluntary, compulsory, retail or institutional are presented under Deposits on the face of the balance sheet. This change means that the Total Deposits amount is higher than previously reported. Ratios, such as deposits-to-assets, are also impacted. This change brings microfinance reporting in line with the MFIs' own financial statements. Users may also view more detailed breakouts on deposits by reviewing the segments reported. Deposits are broken out according to the type of client and product. This additional break includes disclosures of voluntary vs. compulsory deposits, and retail vs. institutional deposits.
Loans
Loan portfolio includes all loans made by the MFI, regardless of product or client type. This change means that total loan portfolio numbers are higher than previously reported. Ratios, such as loan portfolio assets or operating expense/loan portfolio are also impacted. This change brings microfinance reporting in line with the MFIs' own financial statements. Users may also view more detailed breakouts on loan portfolios by reviewing the segments reported. Loan portfolios are broken out according to the type of client and product, the economic sector being financed, lending methodology and other relevant segments. This additional breakout includes disclosure of microenterprise vs household and consumer financing as well as retail vs institutional lending.
Investments and other Financial Assets, other than Loans
Financial assets are presented according to standard IFRS categories based on the treatment of those assets, whether financial assets at fair value through profit or loss, financial assets available for sale, or held-to-maturity. Financial assets not presented in MFI statements according to one of these accounting treatments are treated as short term investments, classified as cash and cash equivalents. As a result, cash and cash equivalents balances may be higher than reported previously.
Subordinated Debt
Subordinated debt is now classified as a distinct line item within the overall MFI debt structure. As a result, MFI leverage may change from prior year results if such subordinated debt were previously classified as equity.
Income Statement
Gains (losses)
As exchange and other gains (losses) from financial assets or liabilities have increased in value, the income statement now contains separate gain (loss) line items. Financial income and expense ratios may vary when compared with prior year results.
Financial Revenue
Revenues from the loan portfolio and from other financial assets are broken out separately and by type of income (interest, fee). Historical data from MIX Market does not offer a comparable level of detail in the income statement.
Financial Expenses
These expenses will continue to be classified by associated liability, but are also broken down by type of expense (interest, fee) for each associated financial liability. Historical data from MIX Market does not offer a comparable level of detail in the income statement.
Outreach
Depositors
All depositors served by the MFI are included in the total depositor count, regardless of the type of deposits. This change means that total depositor numbers are higher than previously reported. Outreach and staff productivity ratios, as well as average balances, are impacted. Users may also view more detailed breakouts on depositors by reviewing the segments reported. Depositors are broken out according to the type of clients and products. This additional break out includes disclosure of depositors taking part in voluntary or compulsory products, as well as distinctions between retail and institutional deposits.
Borrowers
Borrowers and loan accounts include all loans made by the MFI, regardless of product or client type. This change means that total borrowers number is higher than previously reported. Outreach, staff productivity, cost per borrower and average balance ratios are also impacted. Users may also view more detailed breakouts on borrowers by reviewing the segments reported. Loans and borrowers are broken out according to the type of clients and products. This additional breakout includes disclosure of borrowers by microenterprise or household and consumer financing products, as well as whether they are retail or institutional clients.
Comparative Analysis
Users can compare MFIs against peer group aggregate results using the same underlying benchmarking methodology as applied to MIX’s MFI benchmark published in the MicroBanking Bulletin.
Peer Groups
Peer groups represent groups of institutions that share common traits, such as legal status, country of operations, scale of lending operations, or age. These groups are organized and categorized based on the peer group methodology applied in MIX’s MicroBanking Bulletin. Refer to that chart or the table below for further description of peer group categories.
Age: MIX classifies MFIs into three categories (new, young and mature) based on the maturity of their microfinance operations. This is calculated as the difference between the year they started their microfinance operations and the year of data submitted by the institutions.
Charter Type: The charter under which the MFI is registered is used to classify the organization as a bank, credit union/cooperative, NGO, and non bank financial institution. *Financial Intermediation*: This classification measures the extent to which an MFI intermediates between savers and borrowers, funding its assets through mobilized deposits. It is calculated as a percentage of total assets funded by deposits.
Lending Methodology: Performance may vary by the way the institution delivers its loan products and servers borrowers. MIX tables present MFIs based on the primary methodology used, determined by the number and volume of loans outstanding.
Outreach: Scale of outreach is measured as the total number of borrowers served.
Profit Status: According to an MFI's registration, an institution is classified as "not for profit" and "for profit" institutions.
Region: MFIs are divided into five primary geographic regions: Africa, Asia, Eastern Europe and Central Asia (ECA), Latin America, Middle East and North Africa (MENA).
Scale: Institutional scale is measured by the size of an institution's loan portfolio in US Dollars (USD). The measure of scale is regionalized to reflect differences in income levels across regions.
Sustainability: MFIs are grouped according to their level of self-sufficiency, representing their ability to cover all costs.
Target Market: MIX classifies MFIs into three categories based on the average balance of loans served: low-end, broad, and high-end. For international comparison, this balance is stated as a percentage of local income levels (GNI per capita).
Peer Group Results
Data set
The data used for peer group results in comparative reports is unadjusted data. This differs from the practice of the MFI Benchmarks presented in the MicroBanking Bulletin. For more information on adjustments and their impact on performance results, please refer to the benchmark methodology of MIX’s MFI benchmarks and MicroBanking Bulletin.
Median
Peer groups results present the median result for the selected variable across that group of MFIs. The median represents the middle value in a series, that is, the point at which half of all observed values are higher and half are lower. MIX presents medians to remove the influence of outlier results, such as the influence of extremely large MFIs on outreach results or exceptionally efficient MFIs on efficiency results.
Observations
MIX’s published MFI Benchmarks present peer group results only when at least three observations are present. This practice intends both to preserve the confidentiality of the results and to ensure that there is a minimum standard for a representative pool of data in the benchmark results. Fewer results would not yield a meaningful aggregate result. The Comparative analysis tab allows users to display peer group results for peer groups with any number of observations. Users should check the “Number of MFI” line at the top of each data to review the number of observations.
