Our performance in 2017

Social performance

Through its financing activities, Alterfin aims to improve the quality of life of thousands of families who experience problems accessing finance. In total, Alterfin's partners benefit 1.8 million people and Alterfin financing directly reaches 116,705 families. 64% of the beneficiaries live in rural areas, where financial exclusion is greatest, and 55% are women, who are disproportionately represented among the poorest people. 

 

Alterfin's investments contribute to the many Sustainable Development Goals (SDGs) defined by the United Nations. In the Annual Report (pp. 17-31), you will find an overview of the main actions undertaken by Alterfin and its partners in order to make a positive contribution to numerous social, financial and environmental issues. 

 

Portfolio performance

The investment portfolio managed by Alterfin totalled EUR 69.8 million at the end of 2017. The majority of these investments (71%) came directly from Alterfin’s capital, while the remainder consisted of third-party funds managed by Alterfin.

This portfolio grew by 4% in 2017, while increasing in geographical diversity. Expansion in Asia and Africa was responsible for this growth, and the regional distribution of the portfolio was rebalanced in favour of Asia and Africa.

The portfolio's sectoral distribution at the end of the year remained similar to 2016, with microfinance still representing the majority of our investments. However, the range of agricultural products financed increased with the introduction of sustainable fisheries and aquaculture, coconut oil, asparagus and passion fruit.

Portfolio quality 

In 2017, the quality of the portfolio remained a key focus for Alterfin. It improved significantly over the course of the year: total loans in default amounted to 12% of the portfolio at the end of the year, compared to 18% one year earlier. This improvement in portfolio quality is due to numerous repayments relating to loans in default, but also to Alterfin’s decision to eliminate from its portfolio defaulted loans now deemed irrecoverable.You will find more information on the performance and quality of the portfolio in 2017 in the Annual Report (pp. 8-15). 

 

Financial performance

With a net profit of EUR 1,127,001 for 2017, Alterfin has quickly returned to profitability, mainly thanks to the development of a more balanced portfolio and efforts to recover defaulted loans.

You can read the detailed analysis of our financial performance on pages 32 to 39 of the Annual Report.

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