Financiera Confianza Peru
Classification by the principal vulnerability dimensions of new clients taking out their first loan in 2015, and of total clients who had a loan with the institution at the close of 2015.

Later in the chapter we examine clients in more detail, what they do and how they have performed. The lines presented are in scale with the percentages.
435,879
Total clients
213,152
Credit clients
92,363
New credit clients
1_ Clients with primary education at best, as proportion of all credit clients.
2_ According to Peru's official poverty line (distinguishing between rural and urban environments). Source: National Statistics & IT Institute. Clients whose net income (i.e. profit resulting of their micro­enterprise) divided by the number of members of the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).
435,879
Total clients
213,152
Credit clients
92,363
New credit clients
Classification by the principal vulnerability dimensions of new clients taking out their first loan in 2015, and of total clients who had a loan with the institution at the close of 2015. Later in the chapter we examine clients in more detail, what they do and how they have performed. The lines presented are in scale with the percentages.
1_ Clients with primary education at best, as proportion of all credit clients.
2_ According to Peru's official poverty line (distinguishing between rural and urban environments). Source: National Statistics & IT Institute. Clients whose net income (i.e. profit resulting of their micro­enterprise) divided by the number of members of the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).
Measuring
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Our clients and our scale

Financiera Confianza remains focused on serving low−income clients. 86% of its clients are economically vulnerable.

Clients by type of product1

1 According to Peru's official poverty line (distinguishing between rural and urban environments). Source: National Statistics & IT Institute. Clients whose net income (i.e. profit obtained from their micro-enterprise) divided by the number of members in the family unit (per capita) is no more than 3 times the poverty line of their corresponding country and type of environment (rural/urban).

New credit clients 2

2 No information available about levels of insurance products held by savings clients.

New credit clients 3

The client acquisition rate (YOY (14-15) 5.6%) has remained steady, particularly so in terms of its focus on signing up vulnerable clients: these account for over 90% of clients acquired in the last 3 years.

3 Takes into account clients joining during the year (new clients).

Profile of our credit clients 3

New clients' profile is essentially unchanged, with a noticeable increase in new clients who are less than 30 years old.

3 Takes into account clients joining during the year (new clients).

Sales, disbursement & weight of credit installment 3
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There has been a trend in the last few years to sign up clients with lower sales levels, whilst keeping the ratio of loan installment over sales at around 11%.

3 Takes into account clients joining during the year (new clients).
4 Average disbursement, calculated as the average first disbursement for new clients each year.
5 Weight of the installment calculated as a ratio average (installment divided by sales) of each client.

Clients’ average monthly per capita net income is USD 165 and rises the longer a client stays with the institution

Average per capita micro-entrepreneurial net income, by client seniority 6

6 Data for the current portfolio as of December 31, 2015.

Average per capita micro-entrepreneurial net income, by client vulnerability 6 7

The average per capita net income of 53% of clients classified as vulnerable is USD 4.90 a day; the poorest 33% have an average per capita net income of USD 2.20 a day.

6 Data for the current portfolio as of December 31, 2015.
7 Poverty lines are for the urban environment.

Our clients’ enterprises

Economic activity 8

Nearly half of the clients work in trade. In the case of rural clients, 43% work in agriculture.

8 Data for the current portfolio as of December 31, 2015.

Average monthly sales by vulnerability 8

8 Data for the current portfolio as of December 31, 2015.

Micro-enterprises’ employee breakdown 8

In 87% of cases the client is the business' sole employee.

8 Data for the current portfolio as of December 31, 2015.

Assets, liabilities and equity by vulnerability 9 10

Clients' financial leverage remains at around 14% whatever their level of vulnerability.

9 Assets and equity calculated at the time of credit evaluation (i.e. not including the microcredit granted).
10 Data for the current portfolio as of December 31, 2015.

Assets and average disbursement by vulnerability 10

10 Data for the current portfolio as of December 31, 2015.

Loan installment, expenses & margins (as % of sales) 11

The financial burden of the installment payment as a proportion of sales lessens as clients' income levels rise. On average it comes in at 12%.

The average gross percentage margin (net income + loan installment) of clients' businesses is 38%.

11 Calculations based on those clients reporting expenditures.

Our clients’ development

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Client economic vulnerability (by cohort) 12 13
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12 Shows the situation at the outset and the current situation as of December 31, 2015 of clients in each cohort current at that time.
13 Clients participating in the sample are current clients whose data has been updated in the last 12 months.

After two years, 24% of the clients classified at the outset as poor are above the poverty line.

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Clients overcoming poverty (by cohort) 13
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Since 2011 around 7,000 of the current clients who were initially classed as poor have overcome the poverty line.

13 Clients participating in the sample are current clients whose data has been updated in the last 12 months.

Retention (by cohort) 14

Similar client retention rates in the last 4 cohorts analyzed. After one year, client loss works out at an average 43%.

14 Percentage of clients in each cohort still current as of December 31 2015.

Those clients who remain with the institution report sustained growth in their enterprise's sales, net income and, in particular, assets.

Average monthly sales (by cohort) (USD)15
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15 Data of current clients as of December 31, 2015, and whose data has been updated in the last 12 months. The situation at the outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.

Average monthly net income (by cohort) (USD) 15
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15 Data of current clients as of December 31, 2015, and whose data has been updated in the last 12 months. The situation at outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.

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Average assets (by cohort) (USD) 15
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Micro-enterprises’ assets over the different cohorts also show momentum in asset accumulation, with these growing at a faster rate than sales and monthly net income per capita.

15 Data of current clients as of December 31, 2015, and whose data has been updated in the last 12 months. The situation at outset is shown (data in their cohort year) and their situation at the end of December 2015. The outset is the moment that the first loan was granted.

Average disbursement per transaction (by cohort) 16

Sustained increase in the average disbursement, which on average doubles after 3-4 years.

16 Average disbursement, calculated as the total disbursement made in a year divided by the number of transactions by each client participating in the disbursement in said year.

Average savings (of existing clients) 17 18
Average savings (by cohort) 18 19

Savings amounts grow over time among credit clients.

17 Includes the overnight and term savings of current clients each year.
18 Average saving calculated for all clients with a balance of USD 1 or more (in local currency equivalent) on all dates.
19 Savings of clients current in each cohort having both credit and savings.

Activity Data

Summary of activity 20
Total

Gross loan portfolio (USD)

447,075,072

Total disbursed in 2015 (USD)

578,380,102

Nº transactions in 2015

291,945

Average disbursement in 2015 (USD)

1,981

Deposits & other (USD)

272,876,591

Nº Employees

2,168

Nº Offices

153

Clients receiving financial education

50,907

20 Data as of December 31, 2015.