Microfinance Market Outlook 2012: Persistent Demand Provides for Stable Returns

Examining the market outlook for microfinance in 2012
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This report is based on a survey of 27 industry experts, including MFIs, investors, rating agencies, and consultants, as well as responsAbility’s extensive market data.  Key findings include:

  • Microfinance loan portfolio growth is likely to be modest in 2012, with a real growth rate of about 15%;
  • Experts forecast strongest growth for South and East Asia, unless consolidation in India stalls;
  • Nonperforming loans are likely to remain on the current low levels. Regional differences might decrease due to mean reversion;
  • Profitability has reached pre-crisis highs, but is set to moderate to its long term average in 2012;
  • MFIs express an increased appetite for funding, as repayment rates have recovered and local demand persists;
  • MFIs expect to grow at market pace in 2012, with funds being fully invested, after substantially increasing investment capacity in 2011.