Yesterday social investor and worldwide cooperative Oikocredit published its financial results for 2016, revealing a development financing portfolio of €1,047.2 million, up 16% on 2015. The results reconfirm the cooperative’s commitment to using investors’ funds to improve the quality of life of people in low-income countries by providing financial services to partner organizations in its focus areas of inclusive finance, agriculture, renewable energy and Africa.
Significant growth in focus areas
Oikocredit’s inclusive finance portfolio, which includes financing for microfinance institutions and banks that support small to medium enterprises, grew 11% from 2015 to € 814.5 million in 2016. Because Oikocredit is diversifying into agriculture and renewable energy, inclusive finance’s share of the total portfolio has strategically decreased, from 82% to 78%.
Oikocredit grew its total agriculture portfolio to € 157.3 million in 2016, up 39% on 2015. Agriculture now makes up 15% of Oikocredit’s total portfolio as it increases investments in projects striving to reduce rural unemployment and poverty.
As part of Oikocredit’s commitment to environmental protection, the renewable energy portfolio saw record growth of 150% on 2015 to € 39.8 million in 2016. A focus area since 2014, renewable energy represents 4% of Oikocredit’s total portfolio.
In Africa, Oikocredit’s portfolio grew to € 188.7 million in 2016, up 19% from 2015. The portfolio growth for this focus region has exceeded 100% in the past three years.
Oikocredit also grew its total equity portfolio by 47% to € 113.8 million, in line with its strategy to invest more in partner organizations needing long-term risk capital and strategic support.
Strong capital inflow and new capacity building programmes
Together with its support associations, members and ethical banking partners, Oikocredit raised € 94.3 million in net lendable funds (2015: € 102.0 million) in line with targets.
Oikocredit approved 45 capacity building engagements in 2016 and spent € 490,000 on its three global programmes: agriculture, financial services and measuring outcomes at client levels. Oikocredit will continue to increase its capacity building efforts which aim at strengthening its partner organizations.
“Our investors share Oikocredit’s passion”
Ging Ledesma, interim managing director at Oikocredit, said: “We achieved another successful year of providing loans, equity investments and capacity building to 801 partners in 70 countries. These achievements were made possible by our 54,000 investors, who share our passion for Oikocredit’s vision.
“Maintaining the right balance between social, environmental and financial returns will remain a priority as we continue in our focus areas. We will also further strengthen our organization and keep exploring new opportunities so that we can continue to improve the quality of life of low-income people.”
Result highlights include:
- Total assets up 18% to € 1,209.3 million
- Development financing portfolio up 16% to € 1,047.2 million
- Financing in Africa up 19%, totalling € 188.7 million
- 45 capacity building engagements totalling € 490,000
- Net inflow of lendable funds € 94.3 million
- Net consolidated result of € 29.0 million
- Proposed 2% dividend