Financial Performance (PESOS Indicators)
RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL P- Portfolio Quality (25%)
Portfolio at risk
Balance of loan with one day missed payment
Total loan outstanding
Measures the risk of default risk in the portfolio.
5% or less 5% or less 6-10% 11-15% 16-20% 21-25% 26% and above
15129630
Allowance for probable losses on loan
Amount of allowance for loans over 12 months past due
Total outstanding balance of loans over 12 months past due
Amount of allowance for loans 1 to 12 months past due
Outstanding balance of loans 1 to 12 months past due
Measures the adequacy of the allowance for probable losses o loans
100%
35%
PLL1 100%80-99%60-79%36-59%10-35%9% and below
PLL2 35%25-34%17-24%9-16%1-8%0
543210
543210
E- Efficiency (20%)Asset Yield
Undivided Net surplus Average total assets
Measures the ability of he coop’s assets to generate income
At least inflation rate
At least inflation rate 1-2%below inflation
rate 3-4%below inflation
rate more than 4% below
inflation rate 0 or negative asset
yield
43210
RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL
1
Operational self sufficiency
Interest income from loans + service fee + filing fee +fines,
penalties, surcharges Financing Cost + admin cost
Measures the a bility the cooperatives to sustain its operations
>100% 120% and above 111-119 101-110% 100% below 100%
43210
Rate of return on members’ share
Interest on Share Capital Average member’s share
Measures the earning power of the member
Higher than inflation rate
Higher than inflation rate
Inflation rate 1-2% below inflation
rate more than 2%
inflation rate Zero or negative ROR
4
32
1
0Loan Portfolio profitability
Interest income from loans + service fee+ filing fees + fines,
penalties, surchargesAverage total loans outstanding
Measures how profitable the loan the loan portfolio is
More than 20%
20% and above 13-19% 7-12% 1-6% 0 or negative
43210
Cost per peso loan
Financing cost + (admin cost-members’ benefit expense)
Average total loan outstanding
Measures efficiency in managing the coops loan portfolio
Php .10 per Php 1.00 loan
.10 and below .11 to 0.15 .16-.20 above .20
21.510
Administrative efficiency
Administrative cost Average total assets
Measures the cost of managing the coop’s asset
3 to 10% 10% and below 11-15% 16-20% above 20%
21.510
RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL S –Stability (30%)Solvency (Assets + allowances)- (total Measures the At least 110% 110 and above 10
2
liabilities – Deposits + past due loans + loans re structured +
loans under litigation)Deposits + share capital
degree of protection that the coop has for member savings and shares in the event of liquidation of he coop’s assets and liabilities
100-109% 90-99% 80-89% 70-79% below 70%
86420
Liquidity Liquid assets – short terms payables
Total deposits
Measures the coop ability to service its members withdrawal and deposit on time
Not less than 15%
15% and above 12-14% 9-11% 6-8% 1-5% 0
1086420
Net institutional capital
(Reserves +allowance from probable losses )- (past due
loans + loans under litigation + problem asset)
total assets
Measures the level of institutional capital after subtracting the losses.
At least 10% 10% and above 7-9% 5-6% 3-4% 1-2% 0
1086420
O- Operations (10%)Performance of membership growth
Actual interest in the number of members
Target increase in the number of members
Determines the performance of change in membership vis-à-vis target
Target set in the development
75-100% of Target 50-74% 25-49% 1-24% status quo decreasing or
without development plan
543210
RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL Trend in external borrowings
Ending external borrowings -beginning external borrowings Beginning external borrowings
Determine the percentage of change in external
Decreasing towards zero
No external borrowings
Decreasing
5
3
3
borrowings compared to previous period
Status quo Increasing compared
to previous period
20
S – Structure of Assets (15%)Asset Quality Non earning assets
Total Asset Measure the percentage of total assets that are not producing income.
Not more than 5%
5% and below 6-7% 8-9% 10-11% 12-13% 14% and above
543210
Asset Structure
Total deposits Total Assets
Measures the percentage of total assets finance b deposits
55-65% 55-65% 45-54%/66-70% 34-44% / 71-75% below 35% or above
75%
5310
Total loan receivables Total assets
Measures the percentage of total assets invested in the loan portfolio
70-80% 70-80%60-69% or 81-85%50-59% /86-90%40-49% / 91-95%39% and below / 96% and below
21.51
0.50
Total member share capital Total assets
Measures the percentage of total assets financed by members’ share capital
35-45% 35-45%30-34% /46-55%25-29% / above 26%below 25%
3210
4