Non-banking finance company-microfinance institutions with low capital buffers urgently need funding from banks and bigger, cash-rich, non-bank lenders to ensure they remain in business, people familiar with the matter told ET.VFS Capital, one of India’s oldest microfinance firms where Others that have defaulted on bank loans lately include Navachetana Microfin Services (Karnataka) and Arth Finance (Rajasthan).Live EventsLegacy StressInditrade Microfinance (Maharashtra) is also on that list, said multiple ...

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 19.6%, reflecting strong performance across core businesses and contributions from the innovation portfolio [11][15][35] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits, leading to a net interest margin (NIM) of 6.6% [16][31] - The cost of risk fell to 1.7%, indicating improved asset quality and risk management [15][16][32] Business Line Data and Key Metrics Changes - Universal Banking and Insurance and Pensions delivered strong results, while Microfinance progressed towards its profitability target [11][15] - Fee-based and transactional income grew, with Yape contributing significantly to the overall revenue [11][24] - Mibanco's profitability rose to 18.8%, supported by increased loan disbursements and improved credit risk management [26] Market Data and Key Metrics Changes - Peru's GDP growth for 2025 is projected at 3.4%, driven by higher export prices and increased domestic consumption [9][18] - Inflation in Peru remains low, forecasted at 1.8% for 2025, which is within the central bank's target range [10][19] - The macroeconomic environment in the region shows signs of recovery, with positive indicators in Chile and Colombia [10][19] Company Strategy and Development Direction - The company is focused on three key pillars: scaling its digital ecosystem, unlocking growth through business synergies, and maintaining discipline in profitability and capital allocation [5][6][7] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [7][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic resilience of Peru despite political changes, emphasizing the company's diversified strategy and strong capital position [8][9] - The outlook for 2026 anticipates continued GDP growth, supported by favorable terms of trade and increased private consumption [9][18] Other Important Information - The company aims to expand its digital engagement strategy, with Yape targeting 18 million users by 2028 [24] - The insurance underwriting results showed a year-over-year increase of 23%, driven by improved performance in the life business [29] Q&A Session Summary Question: Regarding asset quality and cost of risk - Analyst inquired about the better-than-expected performance in asset quality and whether the guidance for cost of risk is too conservative [41][42] - Management acknowledged the positive results and indicated that the cost of risk is expected to be around the lower end of the guidance [45][46] Question: On operating expenses growth - Analyst asked about the growth of operating expenses and its breakdown between core business and innovation initiatives [47] - Management confirmed that operating expenses growth is within guidance and will likely slow in the core business while remaining stable in innovation [48] Question: Impact of political uncertainty on growth - Analyst questioned the potential deceleration in growth due to upcoming elections [53] - Management noted historical trends of minimal impact on long-term growth but acknowledged a possible slowdown in the first quarter [55][56] Question: Loan growth guidance - Analyst sought clarification on the loan growth guidance and whether it considers FX adjustments [70] - Management confirmed that the guidance is nominal and includes adjustments for Bolivia's restatement [72] Question: Future contributions from Yape - Analyst inquired about the potential for Yape's contribution to reach double digits by 2026 [64] - Management expressed confidence in achieving this target [65] Question: Outlook for Bolivia post-political shift - Analyst asked about the potential positive impacts of the new government in Bolivia [80] - Management indicated optimism regarding the new government's pro-market stance and its potential benefits for operations in Bolivia [82]

Core Insights - The microfinance sector is slowly recovering from two years of stress, with improvements in bad loans and collections, but profitability remains challenging and growth is slow due to uneven recovery across states and lenders [15] Company-Specific Insights - Bandhan Bank is experiencing steady improvement in its microfinance portfolio, with a 30-day-plus delinquency ratio of 3.8%, below the industry average of 5.1%, and 90-day-plus delinquencies improved to 2.04% compared to 3% for the sector [2] - Bandhan Bank is cautious in expanding its microfinance portfolio, focusing on reducing concentration risk and increasing secured loans, with its emerging entrepreneurs business portfolio contracting 13% annually to ₹51,730 crore [2][3] - The secured loan book at Bandhan Bank currently makes up about 55% of total advances, expected to rise to 57-58% over the next 18 months [3] - IDFC First Bank anticipates stabilization of stress in its microfinance portfolio within the next six months, with gross slippages in the MFI book falling 9% sequentially in the September quarter [4] - IDFC First Bank's MFI business declined 42% annually to ₹7,306 crore, impacting income, but is expected to stabilize in the second half of the year [5] Industry Trends - The microfinance sector has seen most large players shrink their books by 25-50% over the past two years, primarily through write-offs, which has been termed cautious deleveraging [7] - CreditAccess Grameen reported accelerated write-offs of ₹554 crore related to overdue loans, indicating a need to clean up legacy stress [6] - Policy reforms have capped the number of lenders per borrower and restricted total indebtedness, which has reduced over-leverage but also slowed fresh lending [8][9] - Analysts expect collection efficiency to improve as disbursements rise, but near-term pressure is expected to persist due to erratic monsoon patterns affecting rural borrowers [10] - The upcoming state elections in Bihar raise concerns over potential political interference and debt waivers, although Bandhan Bank does not foresee a repeat of past disruptions [12][13] - Overall, analysts predict that larger banks and MFIs will recover first, with a slow and gradual journey towards normalcy expected for the sector [14]

Lending Trends - Banks in India have slowed lending to non-banks due to rising risk [1] - Non-banks provide nearly 40% of microloans in India [1] Financial Impact - Listed lenders have been hit hard [1]

Challenges - India's microlenders are facing stiff challenges [1] - Economic strain is the biggest challenge for microlenders [1] Policy Impact - A well-intentioned policy change has added to the challenges [1]

Industry Overview - Microlending（小额贷款）在印度一直是一项艰难的业务 [1] - 政客和监管机构使小额贷款业务更加困难 [1] Risk Factors - 经济压力正在推高违约率 [1]

Core Insights - UPAY Inc.'s South African subsidiary, ACPAS, is sponsoring the MicroFinance South Africa (MFSA) Annual General Meeting and Conference on October 22, 2025, marking a significant event in the microfinance sector [1][3] - The MFSA is rebranding to CASA, the Credit Association of South Africa, reflecting its nearly three-decade commitment to responsible credit practices [2][5] - ACPAS is participating as a Legacy Partner in the transition to CASA, emphasizing its dedication to supporting the microfinance and credit sectors [3][4] Company Overview - ACPAS is a leading Loan Management Software provider in South Africa, focusing on automation solutions for loan origination, management, and compliance [6] - UPAY Inc. is a publicly traded holding company in the fintech industry, investing in innovative technologies to enhance financial software platforms [7] Industry Context - CASA, formerly MFSA, represents over 1,800 registered credit providers and advocates for ethical lending, consumer protection, and industry advancement [5] - The transition to CASA signifies growth and renewal within the credit industry, aiming to strengthen South Africa's credit ecosystem through collaboration and technological advancement [4][5]

Credicorp Investor Day Summary Company Overview - **Company**: Credicorp - **Industry**: Financial Services - **Event**: 2025 Investor Day, marking the 30th anniversary of Credicorp's listing on the New York Stock Exchange Key Points and Arguments Company Growth and Performance - Credicorp has established itself as Peru's leading financial group with an expanding presence in the Andean region, demonstrating resilience through disciplined execution and strategic long-term planning [5][6] - The company has achieved a total shareholder return of 14.1% annually on average since its inception in 1995 [5] - By the end of September, Credicorp outperformed the market, showcasing its ability to decouple from macroeconomic cycles [11] Strategic Priorities - **Four Pillars of Strategy**: 1. **Purpose**: Focus on improving lives through financial inclusion and education [8] 2. **Innovation**: Continuous adaptation and learning, exemplified by the success of Yape, which has over 15 million active users [8] 3. **Culture and Talent**: Investment in digital capabilities and leadership development [9] 4. **Governance**: Strong governance practices linked to long-term sustainability and value creation [9] Financial Inclusion and Innovation - Credicorp aims to expand financial inclusion, targeting 8.8 million new clients by 2028 [51] - Yape is positioned as a key driver for financial inclusion, with aspirations to become a super app and expand into international markets [56] - The company has transitioned from cash-based transactions to cashless, increasing from 24% to 84% [25] Insurance and Growth Opportunities - Pacifico aims to double its client base from 7.5 million to 15 million by 2030, with a focus on becoming the most protected country in Latin America [53] - Insurance penetration in Peru is low at 2.2% of GDP, presenting significant growth opportunities [53] - The bancassurance premiums have grown from $950 million in 2021 to $1.5 billion in 2024, with digital policies issued increasing tenfold [73] Supply Chain Finance - The penetration of supply chain finance in Peru is only 4% of GDP, compared to 14% in Chile, indicating substantial growth potential [62] - The factoring business has grown five times since 2022, with expectations to grow six times in the next five years [63] Technological Integration - Credicorp leverages technology through partnerships with fintechs to enhance product offerings and customer experience [67][70] - Monokera, an insurtech acquired by Krealo, has enabled efficient product design and distribution [67] Future Outlook - The macroeconomic environment in Peru and Latin America is positive, with strong commodity prices and demographic advantages expected to drive growth [35][36] - Credicorp is focused on maintaining a customer-centric approach, leveraging technology to enhance user experience and operational efficiency [39][41] Additional Important Insights - The company emphasizes the importance of adaptability and resilience in leadership and talent acquisition [43] - Credicorp's strategy includes a commitment to sustainability and social responsibility, aiming to drive change in the communities it serves [10] - The company has a strong focus on embedding insurance into daily transactions, enhancing customer engagement and financial literacy [55][96] This summary encapsulates the key insights and strategic directions discussed during the Credicorp Investor Day, highlighting the company's commitment to innovation, financial inclusion, and sustainable growth in the financial services sector.

Core Viewpoint - *ST Panda received an administrative regulatory decision from the China Securities Regulatory Commission due to significant discrepancies between its 2024 performance forecast and the annual report, leading to warnings and a commitment to improve information disclosure quality [3][4]. Company Overview - *ST Panda was established on December 12, 1999, with a registered capital of 166 million RMB, and is primarily engaged in fireworks sales, internet financial lending, and small loan issuance [3]. - The company has 14 subsidiaries, including Panda Capital Management Co., Ltd. and several fireworks companies [4]. Financial Performance - The company's revenue for 2022, 2023, and 2024 was 329 million RMB, 228 million RMB, and 324 million RMB, reflecting year-on-year changes of 13.86%, -30.66%, and 41.82% respectively [4]. - The net profit attributable to the parent company for the same years was 90.36 million RMB, -212 million RMB, and -474 million RMB, with year-on-year changes of 25.56%, -335.01%, and -123.42% respectively [4]. - The asset-liability ratios for the years were 20.48%, 25.03%, and 81.18% [4]. Risk Factors - The company has a total of 111 internal risks, 75 external risks, 12 historical risks, and 98 warning risks according to Tianyancha [5].

Core Insights - AML Go (Pty) Ltd, a subsidiary of UPAY Inc., presented at the MicroFinance South Africa (MFSA) Virtual Workshop on FICA Compliance, highlighting its role in AML compliance solutions [1][5] - The workshop attracted over 380 delegates, including compliance officers and representatives from the Financial Intelligence Centre, focusing on practical insights for the credit and microfinance sector [2][3] AML Go's Contributions - AML Go demonstrated its intelligent compliance engine, showcasing how it simplifies regulatory processes for accountable institutions in the microfinance sector [4] - The company emphasizes the importance of technology-enabled compliance tools to meet regulatory standards effectively [3][5] Industry Context - The workshop addressed key areas of the Financial Intelligence Centre Act (FICA), including Risk Management and Compliance Programs, Customer Due Diligence, and employee screening procedures [8] - There is a growing need for automated solutions that can perform client screening, risk profiling, and generate audit-friendly reports [9]