Oikocredit delivers solid financial results

Oikocredit delivers solid financial results

19 March 2014

Social investor and worldwide cooperative, Oikocredit, recorded another set of solid results for the full year ended 31 December 2013.

Throughout the year, Oikocredit continued its strategic investments in Africa, agriculture and inclusive finance, whilst looking to develop into other sectors.

Net inflow of lendable funds reached a record of € 80 million, up 74% from € 46 million in 2012.

Total investors grew to 52,000 from 48,000 in 2012, reaffirming the worldwide support for social investing.

Oikocredit’s operating revenue was up in 2013, however the net consolidated result of € 13.4 million was down from 2012 due to a revaluation of the term investment portfolio.

The result in 2012 had been boosted by gains in the term investment portfolio and the sale of two equity holdings.

A proposed dividend of € 11.6 million will be paid to shareholders following the annual general meeting in June 2014.

Oikocredit managing director, Mr David Woods, said he was pleased with Oikocredit’s 2013 financial results.

“Our overall result shows solid growth in our development financing portfolio,” said Mr Woods.

“In 2013, we increased our inflow of funds, loan approvals as well as disbursements and improved the overall quality of the portfolio,” added Mr Woods.

The development financing portfolio grew to € 591 million, an increase of 11% from € 531 million in 2012.

Loan approvals reached € 297 million, up 27% from € 234 million in 2012 and disbursements increased 40% to € 306 million, up from € 218 million the previous year.

Oikocredit increased total investments in equity, including commitments to € 66 million, up 7% from € 62 million in 2012.

Throughout 2013, Oikocredit remained committed to improving its social performance and support for partners through capacity building initiatives which were conducted worldwide.

Throughout the year, Oikocredit provided € 3 million in capacity building funds, approving over 130 support initiatives and strengthening its mentoring programme.

In 2014, social performance will remain a priority, with a focus on longer-term programmes for microfinance and agricultural value chains.

Mr Woods said Oikocredit is committed to growing a quality portfolio, with a triple bottom line of social, environmental and financial returns.

“Going into 2014, we are well positioned to diversify our portfolio and strengthen our investments in agriculture and renewable energy to grow in line with our social mission,” said Mr Woods.

Oikocredit is a worldwide cooperative and social investor, providing funding to the microfinance sector, fair trade organizations, cooperatives and small to medium enterprises.

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