| Long-term Subordinated Loan increasing funds to the company over a 5 year period which needs to be approved by NBC. The second major development is the USD 259,730.00 Loan plus Options to be converted into share capital in the long run which will enable the company to increase the share book value after getting the financial report of our Independent Auditor at the end of year 2010. Totally, we plan to get loans from our investors up to at least USD 600,000.00 for expanding our potential operational areas. Our plan was to develop our outreach and the loans outstanding up to USD 1,500,000.00 at the end of 2010. However, unfortunately, the loans from are only to compensate fulfilling the repayment loans of , which are unable to continue these loans anymore. Thus, our outstanding loan is staying the same which is an amount of USD 1,262,000.00 – this increased only 0.58% compared to 2009, resulting in a small decrease in our target areas and clients by -3.80%. The lack of funds has been lowering the productivity from 107 clients to 101 clients per Credit Agent at the end of 2010 and loans outstanding per Credit Agent went down from USD 697,754.00 to USD 57,402.00.
Nevertheless, our PAR>30 days has decreased from 2.81% in 2009 to 1.98% in 2010, showing that our bad debt resolution is improving. The operational income has grown 11.09% and our net profit has grown up to 237.60% because this has been augmented by the selling of some company properties which have been over depreciated and also accrued interest income has been included. On the downside, the total assets decreased -1.86%, but the total equity account has increased 48.48%. In addition, OSS has increased from 105.66% in 2009 up to 119% in 2010. Then, this year the ROE growth is 22% and ROA growth is 4% which surpasses the year’s planned growth.
However, we cannot rely on getting the same result in the future if we continue to have the same growth of our loan portfolio because we need to reduce our interest rate charging to the market rate similar to that of the other companies for expanding target zones reaching a larger clientele.
Meanwhile, we hope that will give us the best chance of institutional progress. To ensure long term sustainability it will be necessary to encourage greater commitment and the best industrial practice from our employees in order to overcome various obstacles in the way of our reaching our goal and strategic plan of 2011.
On behalf of the company and the , I commit to lead and encourage these staff to the best of my ability without sacrificing their personal goals and ideals.
I would like to thank deeply all of our , successive responsible managers in all branches who are the professional staff whose loyalty and industry are essential to the wellbeing of the company and its future sustainability.
Finally, I would like to say many thanks and acknowledgment to all our investing partners in and out of the country for our Economic Development Program of the Rural Credit Institution which has been so rapidly put in place. Especially I highly appreciate the support and backing of the regulatory bodies such as and the most authorized powerful one - and more congratulations to our all who are confident of participating with our company to continue their close collaboration with CBIRD MFI – these form the core of our long term sustainability. |
