Mexico 2009: Microfinance Analysis and Benchmarking Report

This report analyzes the performance of 51 Mexican MFIs in 2008 compared to their peers in Latin America and the Caribbean. Mexico has experienced a dynamic and rapidly-growing microfinance market, but 2008 data indicates significant changes.

The report focuses on the results of MFIs grouped together according to the types of credits and financial self-sufficiency — outreach. Findings include:

• Economic situation affected incomes of MFI clients;
• Credit to microenterprises grew more than that to consumers;
• Market share of high outreach MFIs continued to determine loan distribution;
• Mexican MFIs increased their outreach depth;
• Number of borrowers increased significantly;
• Portfolio volume of non- Mexican MFIs saw accelerated growth;
• Profitability in Mexico was less than the regional median;
• Active rates charged by MFIs in Mexico increased;
• MFIs with financial self-sufficiency were characterized by high staff productivity and better efficiency indicators.

MFIs need to search for more efficient cost structures that may allow them to recover their positive returns and make them sustainable over time, thus securing sound growth and strengthening the microfinance industry in Mexico.