Financial Performance (PESOS Indicators)

RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL

P- Portfolio Quality (25%)
Portfolio at Balance of loan with one day Measures the risk 5% or less • 5% or less 15
risk missed payment of default risk in • 6-10% 12
Total loan outstanding the portfolio. 9
• 11-15%
6
• 16-20%
3
• 21-25% 0
• 26% and above
Allowance for Amount of allowance for loans Measures the 100% PLL1 100% 5
probable over 12 months past due adequacy of the 80-99% 4
losses on loan Total outstanding balance of allowance for 60-79% 3
loans over 12 months past due probable losses o 36-59% 2
loans 10-35% 1
9% and below 0
Amount of allowance for loans
1 to 12 months past due 35% PLL2 35% 5
Outstanding balance of loans 1 25-34% 4
to 12 months past due 17-24% 3
9-16% 2
1-8% 1
0 0
E- Efficiency (20%)
Asset Yield Measures the At least • At least inflation rate 4
Undivided Net surplus ability of he coop’s inflation rate • 1-2%below inflation 3
Average total assets assets to generate 2
rate
income • 3-4%below inflation 1
rate 0
• more than 4% below
inflation rate
• 0 or negative asset
yield
1
 RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL
Operational Interest income from loans + Measures the a >100% • 120% and above 4
self service fee + filing fee +fines, bility the • 111-119 3
sufficiency penalties, surcharges cooperatives to 2
Financing Cost + admin cost • 101-110%
sustain its 1
• 100%
operations 0
• below 100%
Rate of return Interest on Share Capital Measures the Higher than • Higher than inflation 4
on members’ Average member’s share earning power of inflation rate rate
share the member • Inflation rate 3
• 1-2% below inflation 2
rate
• more than 2% 1
inflation rate
• Zero or negative ROR 0
Loan Portfolio Interest income from loans + Measures how More than • 20% and above 4
profitability service fee+ filing fees + fines, profitable the loan 20% • 13-19% 3
penalties, surcharges the loan portfolio is 2
Average total loans outstanding • 7-12%
1
• 1-6%
0
• 0 or negative
Cost per peso Financing cost + (admin cost- Measures Php .10 per • .10 and below 2
loan members’ benefit expense) efficiency in Php 1.00 loan • .11 to 0.15 1.5
Average total loan outstanding managing the 1
• .16-.20
coops loan 0
• above .20
portfolio
Administrative Administrative cost Measures the cost 3 to 10% • 10% and below 2
efficiency Average total assets of managing the • 11-15% 1.5
coop’s asset • 16-20% 1
• above 20% 0

2
 RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL
S –Stability (30%)
Solvency (Assets + allowances)- (total Measures the At least 110% • 110 and above 10
liabilities – Deposits + past due degree of • 100-109% 8
loans + loans re structured + protection that the 6
loans under litigation) • 90-99%
coop has for 4
Deposits + share capital • 80-89%
member savings 2
and shares in the • 70-79% 0
event of liquidation • below 70%
of he coop’s assets
and liabilities
Liquidity Liquid assets – short terms Measures the coop Not less than • 15% and above 10
payables ability to service its 15% • 12-14% 8
Total deposits members 6
• 9-11%
withdrawal and 4
• 6-8%
deposit on time 2
• 1-5% 0
• 0
Net (Reserves +allowance from Measures the level At least 10% • 10% and above 10
institutional probable losses )- (past due of institutional • 7-9% 8
capital loans + loans under litigation + capital after 6
problem asset) • 5-6%
subtracting the 4
total assets • 3-4%
losses. 2
• 1-2% 0
• 0
O- Operations (10%)
Performance Actual interest in the number of Determines the Target set in • 75-100% of Target 5
of members performance of the • 50-74% 4
membership Target increase in the number change in development 3
of members • 25-49%
growth membership vis-à- 2
• 1-24%
vis target 1
• status quo 0
• decreasing or
without
3
 development plan

RATIOS FORMULA PURPOSE STANDARD SCORE MAX. PT. ACTUAL

Trend in Ending external borrowings Determine the Decreasing • No external 5
external -beginning external borrowings percentage of towards zero borrowings
borrowings Beginning external borrowings change in external 3
• Decreasing
borrowings compared to
previous period
• Status quo 2
0
• Increasing compared
to previous period
S – Structure of Assets (15%)
Asset Quality Non earning assets Measure the Not more • 5% and below 5
Total Asset percentage of total than 5% • 6-7% 4
assets that are not • 8-9% 3
producing income. 2
• 10-11%
1
• 12-13% 0
• 14% and above
Asset Total deposits Measures the 55-65% • 55-65% 5
Structure Total Assets percentage of total • 45-54%/66-70% 3
assets finance b • 34-44% / 71-75% 1
deposits 0
• below 35% or above
75%

Total loan receivables Measures the 70-80% 70-80% 2

Total assets percentage of total 60-69% or 81-85% 1.5
assets invested in 50-59% /86-90% 1
the loan portfolio 40-49% / 91-95% 0.5
39% and below / 96% 0
and below
Total member share capital Measures the 35-45% 35-45% 3
Total assets percentage of total 30-34% /46-55% 2

4
assets financed by 25-29% / above 26% 1
members’ share below 25% 0
capital

5
assets financed by 25-29% / above 26% 1
members’ share below 25% 0
capital