Creating Brighter Futures

Cissy Sekyewa FINCA’s Client of the Year finca.org

2013 ANNUAL REPORT Founder’s Letter

Dear Friends: Mission The theme of this year’s annual report—Creating Brighter Futures— allows me the opportunity to make some important distinctions. First of To provide financial services to the all, FINCA is an enabler. We provide financial, technical, and motivational world’s lowest-income entrepreneurs so services to our 1.7 million clients worldwide. But it is how our clients that they can create jobs, build assets, make use of those services that results in a difference for their families. As they grow their small businesses, generate profits, set aside savings, and improve their standard of living. replenish working capital, and repay their loans, it is our clients— hard-working people—who make the difficult daily choices that will shape their futures and that of the next generation. They choose how John Hatch, Founder Vision to allocate their growing net income among priorities such as food, To be a global microfinance network education, healthcare, clothing, or necessary housing upgrades. It is not always an easy road, but the empowerment to decide what a brighter future means is a gift collectively serving more low- in itself. income entrepreneurs than any Secondly, when I contemplate how FINCA is doing in this enabler role, I don’t focus solely on our other microfinance institution while growing client outreach and sustainability. Nor do I focus on the growth and profitability of our operating on commercial principles of clients’ own businesses. Rather, I dwell on a different definition of success—(1) a family where no infant or child is malnourished; (2) a family whose school-age children (girls as well as boys) are all performance and sustainability. in school; (3) a family where the mother has access to pre- and post-natal health care; (4) a family that has access to clean drinking water and sanitation; (5) a family where every working-age adult is gainfully employed; and (6) a family whose head of household is hopeful for the future. These are social outcomes that critically depend on our clients’ access to the vital resources that FINCA delivers. They are also aligned to the United Nations’ eight end-poverty Millennium Development Goals and the World Bank commitment to end severe poverty worldwide by the year 2030. Founder’s Letter...... 3 As FINCA aspires to be a leader in this global end-poverty crusade, we will need to explore new Letter from the Chairman ways to partner with non-financial service providers to enhance health, nutrition, education, and the President & CEO...... 4-5 employment, and empowerment outcomes among our poorest clients. At FINCA we will need to Our Microfinance Services...... 6-11 greatly expand our own financial service outreach at sharply reduced costs per client. We will need to deploy increasingly reliable tools for targeting the poorest and measuring client outcomes. Beyond Finance ...... 12-13 And we will need to mobilize much larger flows of donor resources to accelerate the widening Milestones...... 14-17 and deepening of FINCA’s client service outreach. God willing, I hope to stay alive for another 17 years so I can help accelerate and personally celebrate (at age 90) the end of poverty. I thank FINCA by Region...... 18-33 and welcome the many donors who wish to join me in this crusade to create the “brightest future” The FINCA Family...... 34-35 in human history. Philanthropic Partners...... 36-37 John Hatch 2013 Financial Summary...... 38-41 Leadership...... 42-43 Our Generous Supporters...... 44-49 Ways to Give...... 50 FINCA Offices...... 51

Santa Fe, New Mexico June 30, 2014

2 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 3 Letter from the Chairman and the President & CEO

Dear Friends,

FINCA has come a long way since our founder, John Hatch, sketched out his concept for an innovative credit system, Village Banking, on the back of a napkin during a plane ride to Bolivia almost thirty years ago. Today FINCA is a global financial services organization reaching 1.7 million clients in 22 countries, with a global loan portfolio approaching $1 billion and with nearly 12,000 employees. The simple Robert Hatch, Chairman idea of helping people to help themselves remains at the heart of our approach to fighting poverty to this day.

The way we serve our clients has evolved over the years, and the process of transforming our subsidiaries into full-service financial institutions continues. For this reason, increasingly, our client base includes not only borrowers, Focus on Outreach chance to gain control over their own destiny and that of but also savers and people who want to transfer money, Looking at FINCA by region, Eurasia continued to be their family members. While FINCA’s financial services give make payments, or purchase insurance. By end-2013, we the largest part of our network in terms of outreach to them an important set of tools, this is not an end in itself. counted 767,104 savers in nine countries, all depending entrepreneurs. The borrower base grew by a healthy 8.9 Not for FINCA, and not for our donors. on FINCA to keep their money safe and accessible. We Rupert Scofield, percent to 438,900 people, and the gross loan portfolio are giving more options to existing borrowers, while President and CEO surpassed $520 million at the end of 2013. Eurasian With this in mind, in 2013 we continued to focus attracting new clients to FINCA. Meanwhile, building a subsidiaries are also leading FINCA in the development significant resources on how to address poverty in a strong savings portfolio helps FINCA to lower its financial more holistic way. FINCA has extensive social enterprise Real Opportunities for Real People of small and medium enterprise loan products, so that costs and reduce dependency on external borrowers as a clients can stay with us as they grow. experience and deep knowledge of the challenges that source of working capital. In 2013, FINCA surpassed one million active borrowers for our poorest clients face. We are actively exploring and the first time in our history. We gave out over 1.76 million In Africa, the number of borrowers grew by 23.5 percent, testing how to leverage our organization to provide non- Partnering for the Future loans to entrepreneurs, valued at $1.46 billion, with 98.5% for a total of 339,700 entrepreneurs across five countries, financial services that will improve our clients’ quality of To reach so many people – and to achieve our vision of clients paying back on time. The average loan size and a gross loan portfolio of more than $116 million. We life. From financing solar energy products and training of helping millions more – FINCA is partnering with disbursed ranged from $421 in Africa to more than $1,650 also saw a 101% percent increase in the number of savers micro-entrepreneurs to brokering affordable health carefully chosen social investors. These partners bring in Eurasia – capturing a breadth of personal stories and in the region, thanks to Tanzania and Zambia joining DRC insurance packages, to finding ways to help our rural additional capital and expertise to FINCA’s microfinance situations such as those in the FINCA by Region section of and Uganda to provide this service. clients boost their agricultural output, we see enormous network through our social enterprise subsidiary, FINCA this report. potential in this space to expand both our outreach and In Latin America and the Caribbean, our subsidiaries faced Microfinance Holding Company LLC (FMH). In 2013, the social and economic impact. For that reason, we call this Significantly, in 2013, we reduced interest rates for our strong headwinds due to a deteriorating economic and partners provided an additional $48 million in capital to initiative “FINCA+”. microenterprise loans across the network. This had an security environment. As a consequence, our growth was the network. The larger capital base helps FINCA access impact on our operational income, but it was the right flat, up by only 1.6%. One bright spot was Haiti, where The core of our operations remains financial services for more funds for on-lending to those in need. It has enabled thing to do because it left clients with more of the fruits FINCA helped clients rise from the rubble that still plagues poor and low-income individuals. How we grow and build us to build our internal capacity and upgrade our systems of their labors, enabling them to invest more in their that country since the 2010 earthquake. Our program upon that solid foundation is what will define the FINCA and technology to provide more efficient financial businesses and the welfare of their families. there grew from 2,445 to 10,244 borrowers in just 12 of the future. On behalf of all our clients and employees, services. It has also helped us obtain the banking licenses months by end of year 2013. Overall in the region, we I thank you for continued support. I hope you feel as required to offer savings accounts in more countries. A highlight of the year for FINCA was the acquisition had 282,100 borrowers and more than $157 million in proud as we do about what we have accomplished over of Kashf Microfinance Bank, Ltd. in Pakistan. Going into outstanding loans to clients by the end of 2013. the last thirty years, and as excited about what is to come. Other partnerships allow us to address the non-financial Pakistan represented a decision to reach out and support needs of our clients, or to finance strategic initiatives that vulnerable and underserved populations whose success The Middle East and South Asia is a new regional improve the effectiveness and efficiency of our services. In in life is critical to regional stability. The acquisition grouping for FINCA. It includes our subsidiaries in Sincerely, 2013, we received a $12.8 million grant from Master Card brought knowledgeable employees to FINCA, as well as a Afghanistan, Jordan, and now Pakistan, with a total of Foundation to build out alternative delivery channels, banking license and an established client base from which 85,300 borrowers at end-2013, and a gross loan portfolio such as mobile and agent banking, to save our clients to expand our work. of over $46 million. Outreach in Jordan increased by 23 time and money when they transact with FINCA branches. percent, while in Afghanistan it increased by an incredible Rupert W. Scofield A generous grant from Credit Suisse has allowed us to Another highlight was watching FINCA client Cissy 41 percent. FINCA Pakistan added more than 200,000 Robert W. Hatch President and strengthen our middle management training program Sekyewa speak to an audience of global entrepreneurs savers to our network total by the year’s end. While all Chairman via the FINCA Development Academy. A grant from the about how she built her successful venture with a $38 FINCA subsidiaries serve both women and men, in FINCA Chief Executive Officer Bill & Melinda Gates Foundation helped us create savings FINCA loan. The crowd gave her a standing ovation. We Afghanistan 80% of our clients are women entrepreneurs. are so proud of Cissy we decided to launch a FINCA Client programs in three countries. And generous donations June 30, 2014 from individuals have allowed us to keep funding flowing of the Year Award, and Cissy is our first honoree. You can Generating Social Impact to our subsidiaries in more challenging environments like read more about her story on page 21. Behind these impressive statistics lies a larger reality: Haiti and Afghanistan. each client we serve represents one more person with a

4 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 5 OUR MICROFINANCE SERVICES OUR MICROFINANCE SERVICES

Brighter Futures FINCA in Latin America and Caribbean FINCA in Eurasia Ecuador Honduras Armenia Kyrgyzstan Through Financial El Salvador Mexico Azerbaijan Russia Guatemala Nicaragua Georgia Tajikistan Inclusion Haiti Kosovo FINCA takes a broad view of financial inclusion – access to loans to build a business; savings accounts to keep money safe and provide a basis for transactions; electronic banking technologies to remove cost and distance barriers; insurance to protect assets and income and to reduce the strain on society’s most vulnerable people.

Village Banking and small group Agricultural loans have repayment loans deliver small, group-based schedules timed to coincide with loans targeted to very low-income the planting and harvesting cycles of entrepreneurs with the smallest agriculture. These loans let rural clients enterprises. purchase seeds, fertilizer, livestock and equipment when they need to, leading Individual loans are tailored to to higher farm yields and increased borrowers whose businesses are income. growing. Larger loan sizes and more flexible terms help entrepreneurs Islamic microfinance products continue growth and generate jobs in enable FINCA to offer culturally the community. appropriate financing in some of our Muslim-majority countries of Savings accounts help clients build operation. FINCA in the Middle East a cushion against hard times and a and South Asia nest egg for education, medical care, Microenergy loans allow clients to major life milestones, old age, business purchase or lease clean electricity Afghanistan Jordan expansion, and other long-term goals. systems so they can create or expand FINCA in Africa small businesses. The systems Pakistan Microinsurance – health, credit life, also improve health and safety by DR Congo disability, and funeral insurance all help eliminating the use of kerosene or Malawi reduce the financial stress of meeting charcoal. Tanzania major or unexpected expenses. Uganda Agent banking, ATM and branchless Zambia Money transfers provide FINCA banking programs are being rolled customers with a safe and affordable out across the FINCA network to way to receive and send money to increase convenience and reduce costs family, friends, or business associates. to clients, especially those in remote areas.

6 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 7 OUR MICROFINANCE SERVICES OUR MICROFINANCE SERVICES

Through FINCA, more people than ever are accessing the basic Helping Clients Build Savings FINCA offers savings accounts in nine countries: tools they need to be the Democratic Republic of the Congo, Ecuador, economically productive Georgia, Honduras, Pakistan, Tajikistan, Tanzania, Uganda, and Zambia. This is our fastest-growing and make change in their service, thanks in part to new technologies such lives and communities. as biometrics (fingerprint readers) for identity ver- ification. Besides providing clients with a secure place to save, savings accounts provide a conve- nient way for FINCA to disburse its loans and for Jobs and Income Mean Hope clients to repay, especially if these accounts are connected to a mobile money network. More than one million of our clients are entrepre- 1,647,234 neurs who borrow money to carry out their micro- Insurance for the Vulnerable Outreach CLIENTS enterprise and small business activities. Whether Life, health and business insurance strengthens they are raising chickens or running small shops, the safety net that prevents families from slip- starting rural schools or running home-based bak- ping back into poverty when unfortunate events eries, FINCA helps these clients participate in the happen. Many FINCA subsidiaries offer microinsur- 2013 local economy. Each enterprise represents at least ance products to cover business losses due to fire one self-employment job, which on average sup- or natural disasters, health and funeral expenses, ports a family of five. Depending on the country, and or loan repayments in the event of a client’s 764,770 up to half of these businesses employ at least one illness, injury or death. Expanding these services 2010 other person and often more. The result: millions CLIENTS to all subsidiaries is an important part of our of people benefitting directly and indirectly from future plans. FINCA’s microfinance loans. Access to Electronic Banking Isn’t a Luxury For the poorest, a successful microenterprise means more and better food on the table, tuition In many countries, families depend on the income paid for elementary school, a solid roof or door, a of loved ones working far away. Getting access to solar lamp for reading, and perhaps a little bit of that cash to pay for basics – including food – is savings. How they choose to spend their income critical, and not always easy. Without electronic depends on their own needs. As clients grow with cash transfers, people must deliver cash by hand FINCA, larger business loans might mean adding to their families. This can mean a day or more off a second greenhouse, buying more inventory or of work. It also puts people at risk for robbery. FIN- equipment, adding more workers. Wherever they CA provides secure wire transfer services in many fall on the spectrum, FINCA is there to help them of its locations, helping clients to support family take their next step. members and do business transactions as well.

8 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 9 OUR MICROFINANCE SERVICES OUR MICROFINANCE SERVICES FINCA’s Social Investment Partners

Responsible Banking Ensuring Social Impact FINCA clients and stakeholders trust us to be FINCA’s financial services were created responsible bankers in every sense. For clients, in response to a clear need in poor and this means we listen to their needs and we are low-income communities in many coun- committed to delivering appropriate and respon- tries. We were trying to solve a problem: sibly priced products and services, in terms that how to give “unbanked” people a sus- our clients understand. We are also committed to fairness and respect for all clients, making them tainable hand up so they could generate feel that in FINCA they have a caring, trustworthy income and improve the lives of their Since 2011, FINCA’s microfinance subsidiaries Zurich-based responsAbility Global Microfinance financial partner. families. Thousands of success stories, have been owned or controlled by FINCA Micro- Fund; Triple Jump, a Netherlands microfinance close relationships with our clients, and finance Holding Company LLC (FMH), a unique investment firm; and Netherlands-based Triodos many client surveys let us know that we social investment partnership designed to help us Bank. scale faster and serve more people in need. FMH were making a difference. is a “double bottom line” company dedicated to Thanks to this partnership, FINCA has been able to access an additional $90 million in working capital These days, the stories still pour in but delivering both sustainable financial performance and social impact. to expand our lending capacity and make needed FINCA is taking a more comprehensive investments in technology. We have moved more approach to assessing social impact: job FINCA International, a 501(c)(3) not-for-profit quickly to transform our subsidiaries into deposit- creation and increased income for clients; corporation, is the majority owner of FMH. We taking community banks, including all the licens- empowerment; and improved living are honored and grateful to be joined by six ing and capital requirements this entails. We have conditions. Our work in 2012 and 2013 outstanding partners who share our mission: IFC strengthened our internal policies and governance focused on establishing new metrics and (International Finance Corporation, a member of structures. We have also been able to invest more in research, client-focused products, and the baselines, with the goal of better measur- the World Bank Group); KfW, a German develop- ment bank; FMO, the Dutch development bank; development of social performance metrics. ing change over time. Our random sample surveys include direct observation of household consumption (including food) Lending Partner Spotlight and household fittings, such as electricity, plumbing, shelter fabrication, and appli- ances – parameters that will allow us to measure change in clients’ lives. FINCA relies on many valued partners to finance our operations and provide us Precisely measuring social impact is not a simple task. It depends on robust research with social impact capital for on-lending skills, plus a commitment to collect quality to FINCA clients. BlueOrchard Finance has data while respecting the privacy and partnered with FINCA since 2005, providing dignity of clients. As a charter member of the Universal Standards for Social Mea- more than $170 million in funds to FINCA’s surement Performance of the Social Per- global network of microfinance institutions. formance Task Force, FINCA is proud to be Through these investments, BlueOrchard Fi- leading the industry in the development nance has enabled hundreds of thousands of social performance tools and structures. of loans to FINCA’s client entrepreneurs.

10 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 11 BEYOND FINANCE BEYOND FINANCE

FINCA+ Social Enterprise Innovation

FINCA’s microfinance services have empowered millions of people throughout the years to increase their income and make positive changes in their lives. Yet access to financial services alone is not always sufficient to guarantee a permanent escape from poverty. Low-income entrepreneurs lack other essentials such as basic healthcare, electric power, or market knowledge that could help them generate more income and improve their quality of life. Meanwhile, there are still millions of ultra-poor individuals whose challenges are so great they must focus exclusively on putting food on the table today versus starting an income-generating activity that could help them eat better tomorrow.

FINCA is tapping into three decades of experience in sustainable social enterprise to help address a wider range of our clients’ critical needs. We call this FINCA+. We are exploring and developing social enterprise models that can complement our microfinance services and network in areas such as energy, health, water, and technical support for livelihoods. We are also looking at how FINCA can best serve ultra-poor individuals so they can stabilize their lives before Solar Power for Uganda taking initial steps out of the poverty trap – including, In Africa alone, more than 200 million people are have also adopted solar energy systems for their potentially, joining the millions of people who have without electricity. For lighting, most people rely businesses, allowing extended business hours, used FINCA’s microfinance services to do just that. on kerosene lamps, known as tadoobas. These lighting up livestock pens, and even establishing smoky, sooty traditional lanterns are proven to rural schools that are powered by solar panels. Building upon the successful pilot of our solar energy cause respiratory illness, plus they pose a daily fire loans in Uganda, for example, in 2013 FINCA created hazard. Moreover, they require frequent kerosene FINCA’s goal is to strengthen the marketing and a company there to pilot the distribution of solar purchases so that over time, people spend twice distribution of solar products while creating local lamps and other products through micro-retailers. In as much on kerosene in a year as they would for a entrepreneurial opportunities. Local people will Tanzania, we piloted a program that gave $100 grants good quality solar lantern. be able to get involved in the supply chain of this to extremely poor individuals with no expectation business – from being distributors and mer- regarding how the money was to be spent and For this reason, in 2013, solar lanterns were the chants, to installers, to service providers of solar no requirement for repayment. The majority of the starting point for a new social enterprise created energy products – like a FINCA Uganda client families directed the grant to income-generating by FINCA to train assist small entrepreneurs to who purchased two small solar panels to set up a activities, such as farming and retail. In Mexico, we deliver the benefits of solar power to Ugandans. cell-phone charging station in her village. FINCA launched a pilot medical insurance program, with Solar lanterns provide safe, higher-quality light for will source the products, train local merchants and FINCA acting as a broker of appropriately priced work and for families. Through our solar energy installers, and provide business and marketing products. In El Salvador and Tanzania, we prepared loan program, FINCA had already started financ- training to members of the distribution channel. pilots in agricultural credit plus technical assistance to ing the purchase of such lamps. FINCA clients help farmers increase their yields.

12 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 13 IN THE LAST 10 YEARS MILESTONES MILESTONES FINCA Village Banks FINCA Afghanistan 546,366 Formed out FINCA Afghanistan has one of the highest percentages of female borrowers across the 4of FINCA Georgia Clients Reached FINCA network – four out of five are women. 7,713,130 5 The program has nearly quadrupled since 2010 – from 7,000 clients to 27,000 clients spread 15 YEARS 48,623 CLIENTS Loans to Clients over 15 branches – remarkable growth in one 13,387,361 of the world’s most challenging environments. FINCA Bank Georgia received a new banking license in 2013, One Million our first bank subsidiary in Eurasia. The license will allow our clients to save with us. Many of our 48,600 Georgian clients 10 CLIENTS YEARS 27,236 CLIENTS are internally displaced persons, forced by conflict to leave homes and jobs behind. FINCA Georgia helped them start Entrepreneurs over, with individual and solidarity group loans to start new microbusinesses. In 2013, FINCA surpassed the one million mark for clients who were actively borrowing to support their microenterprises. While our FINCA Ecuador Banco FINCA Ecuador was the first registered definition of a “client” is now expanding to include savers and customers bank within the FINCA network. Banco FINCA Ecuador operates in 10 Serves more clients in provinces, serving 71,620 clients with Village Banking, savings, and other of other essential FINCA services, one million borrowers is a historic DRC than any other MFI services. Seventy-five percent of clients’ microbusinesses are in retail and restaurants, 9% are in manufacturing or production, 9% in services, 4% in agriculture, and the remainder in other businesses. milestone. We achieved this with the help of tens of thousands of FINCA FINCA DRC FINCA Democratic Republic of the supporters, employees, and communities who have had faith not only in 20 YEARS 71,620 CLIENTS Congo (DRC) has more total clients our mission, but in the ingenuity and spirit of our clients. than any other microfinance insti- tution in this dynamic and immense country. More than 170,000 people are served through FINCA’s 14 branches and extensive network of banking agents. 15 YEARS 152,825 CLIENTS

FINCA Anniversaries 10 YEARS 170,947 CLIENTS FINCA Azerbaijan FINCA Azerbaijan is our largest subsidiary on Four Continents in the region, serving nearly 153,000 client borrowers, mainly in rural areas. In 2013, FINCA Azerbaijan won the most prestigious Delivering services to economic and business award in the country, the Uğur. The Uğur is awarded for contribution low income entrepreneurs to strengthening and improving the economy around the world has been through job creation and improving the well-be- 34 ing of Azeri families. a nearly 30-year journey. locations While FINCA is now a FINCA Tajikistan FINCA Tajikistan serves one of the poorest countries mature, global microfinance in Eurasia, where 97% of the population is financially excluded. In 2013 we provided financial services to FINCA Tanzania institution, our mission nearly 30,000 clients in over 30 locations, in Dushanbe FINCA Tanzania has over 120,000 clients and remains the same as when as well as the southern and northern regions of the 26 branches. In 2013, it became the first country. When we added foreign cash remittances to microfinance organization in the county to we disbursed our first loan. our services, more than $1 million was transferred to our receive a license to become a deposit-tak- clients from their loved ones abroad within the first year. ing institution.

10 YEARS 28,932 CLIENTS 15 YEARS 120,664 CLIENTS

14 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 15 MILESTONES MILESTONES

FINCA Launches in Pakistan

Since its inception, FINCA has been known for going A Beautiful Partnership: wherever we can do the most good, trying to reach the Story of Bushra Rasheed those who have been financially excluded or ignored. Bushra Rasheed describes FINCA in Pakistan as her safe harbor in the deep ocean that FINCA’s entrance to the microfinance market FINCA’s leadership met extensively with KMBL life can sometimes be. A few years ago, in Pakistan is a case in point. We first visited executives and local business and banking Mrs. Rasheed’s husband took everything she Pakistan in 2011 to better understand the leaders, and in 2012 decided to move forward owned and left her alone to raise their four socio-economic challenges for low-income with a partnership. It was clear that by children. She had never had a job other than and stayed up all night deciding whether entrepreneurs in that country, where nearly combining the operations, staff, and taking care of the family. She was suddenly she was ready to take on a business loan to 90% of the population lacks access to formal expertise of KMBL with the strength of the solely responsible for providing the basic expand. financial services. FINCA network, a much larger percentage of necessities of life to her children. the underserved population in Pakistan could Four years later, Mrs. Rasheed not only has FINCA soon learned about one of Pakistan’s be served. Our two organizations shared a Mrs. Rasheed decided to offer hair and her expanded beauty salon but she has largest microfinance institutions: Kashf common mission, vision, and core values, beauty treatments out of her home, drawing opened a clothing boutique as well. She has Microfinance Bank Ltd. (KMBL). KMBL was along with a shared commitment to constant on skills she had learned when she was created jobs for four women who work in founded in 2008 by a leading microfinance innovation and to social performance. young. After some time, she received advice the shop. practitioner, Roshaneh Zafar, a Pakistani that to build clientele she needed a shop national, banking expert, founder of micro- The combination was approved in May 2013, in the main market street. Mrs. Rasheed Her children have received an education, she finance in the country, and a graduate from and the enterprise formally rebranded as found a good location and opened a small was able to purchase a car, and she recently Wharton Business School of the University FINCA Microfinance Bank Ltd. in November shop in the market. Soon, she met with a provided a beautiful traditional wedding of Pennsylvania. In just four years, Roshaneh 2013. At the end of 2013, FINCA Microfinance representative of Kashf Microfinance Bank ceremony for her daughter. Tears are a thing had built KMBL into one of Pakistan’s fastest- Bank Ltd. had more than 200,000 active Ltd (now FINCA Microfinance Bank Ltd.), of the past. growing microfinance banks. clients.

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Brighter Futures through Innovation

DR Congo Africa Malawi Tanzania Brighter Futures Uganda through Innovation Zambia

New ways to access services saves Faster approvals Africa is on the rise and time and money Loan processing in many places takes 7-21 days. FINCA is proud to be In remote locations, or even in cities where In Malawi we pioneered FINCA Express loans to playing an important transport is expensive, microenterprise owners allow 24-hour processing for clients with existing part. With 600,000 loans often spend hours each week just to deposit businesses and verifiable creditworthiness. This distributed in 2013, valued money or make a utility or loan payment. It can shorter cycle enables clients to take advantage of at $253 million, more be a true burden. To assist clients, FINCA stepped unexpected business opportunities or respond to unanticipated setbacks. entrepreneurs than ever up its roll-out of mobile banking and text alerts are getting what they need to help clients save time and stay focused on Clean electricity with microenergy loans growing their businesses. In Tanzania, clients to build their economies In Uganda, innovative microenergy loans are made 333,000 transactions using their phones in from the ground up. By the helping clients purchase or lease clean energy the first year of the service’s launch. products and systems for their businesses and year’s end, nearly 340,000 homes. For many this is the first time they have To bring in-person services to new neighborhoods people were actively had access to power. and towns, FINCA DRC led the way in opening borrowing to support new locations using third-party retail banking Savings accounts for all businesses ranging agents. This extends our reach while reducing Tanzania and Zambia joined the Democratic from nursery schools to costs for FINCA – and ultimately for clients. FINCA Republic of the Congo (DRC) and Uganda to offer pineapple farming, with Zambia also began preparing for third-party agent savings accounts in 2013. Combined, the number an average disbursed loan banking in 2013. It’s a big investment for us but, of savers in the region doubled in one year. For size of $421. along with mobile banking, this is the exciting many clients, this was the first account they had future of microfinance. ever opened.

18 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 19 FINCA BY REGION Africa Client Stories Brighter Futures through Innovation

Youth Renew- Small Products/ able Agri- Individual Village Group Voluntary Agency Micro Money Education Energy cultural Products & Services Loans Banking Loan Savings Banking Insurance Transfer Loan Loans Loans DR Congo Malawi Tanzania Uganda

Titiwa Mwanji, FINCA Democratic Zambia Republic of the Congo Titiwa Mwanji and her husband have two children TOTAL LOANS AVERAGE SERVICE YEAR and another one on the way. They’re excited, not CLIENTS DISBURSED LOAN OUTLETS FOUNDED Esther George - Malawi worried, because Titiwa’s business is booming. DR Congo 170,947 $82M $454 14 2003 Esther George was introduced to the “Amazing Titiwa used to have a small shop selling basic Malawi 44,048 $20M $211 23 1994 foodstuff in Kingasani, a suburb of Kinshasa. Rent Grace” Village Bank after a tragic fire burned down was just $15 a month, but business was bad because her house. Esther was facing tough times even Tanzania 120,664 $68M $464 26 1998 of the store’s poor location. Her husband could not before the fire: as a working widow supporting Uganda 178,211 $46M $479 27 1992 find work, like many men in Kinshasa. seven children, her meager salary could not Zambia 129,737 $36M $463 16 2001 adequately support the family. Then Titiwa joined a FINCA Village Bank called As of Dec. 31, 2013 Tosungana, which means “we will help each other”. While in a temporary shelter, Esther used her first She used her first loan of $80 to move her store village bank loan to invest in a grocery business. to the main street of the Pascal Markets in the Within a short time, Esther started selling second- Commune of Masina. Though rent was $25 a month, Cissy Sekyewa – FINCA’s Client of the Year hand shoes as well. The business grew rapidly her profits began to rise and she never looked back. and soon provided enough income to ensure an Cissy Sekyewa’s journey would be a remarkable With Titiwa’s second loan of $160, she expanded her education for all her children. “I have educated success story in any setting. offerings, adding powdered milk to the rice, sugar, two of my children up to the university level, and Cissy Sekyewa’s family once believed that their struggle Cissy’s success permits her to care for six dependents, in salt and flour she was already selling. A third loan of I have sent the other children to better schools to eat and survive would be endless. Instead, a $38 addition to her own immediate family. Her five children $320 helped her take advantage of bulk pricing for where they can get quality education. My business FINCA loan jump-started a journey not only out of are all attending school, and her eldest is at university poverty, but to true financial independence. studying software engineering. This is a tremendous rice during the dry season. Rice is cheapest then, income also provides the food for the family and point of pride for Cissy, who was forced to leave school at 15 because her family could not afford the fees. She since it is imported from Asia and must be trucked Before Cissy joined a FINCA Village Bank in 2000, our other basic necessities,” Esther told us. and her husband each have a car, and she has built a she cooked and sold food for a penny per plate on to Kinshasa on roads that become treacherous in the house that is large enough to bring in rental income. rain. the streets of Kampala, Uganda, to help her family Esther’s business success gave her confidence survive. Wishing to make a change, Cissy used her first Looking forward, Cissy’s goal is to establish a farm on a loan to buy scraps of foam – rejects from mattress in her own ability to provide for others. She has five-acre parcel of land that she purchased in 2012, 20 For her next step, Titiwa is thinking through what manufacturers – to make pillows and sell them as a since adopted 12 orphaned children, in addition kilometers from the city. Her friends refer to her as their will bring the most improvement to her business. street vendor. With hard work and persistence, she local “property mogul.” The support of FINCA and her fellow Village Bank to raising her own. Esther says she is proud of her developed a loyal customer base and opened a small shop. Thanks to increasingly larger FINCA loans, and entrepreneurs means she can finally plan better and business because it enables her to help people in Cissy’s exemplary achievements were honored at the outstanding entrepreneurial instinct, Cissy’s business WildHearts Global Entrepreneurial Leaders Conference take advantage of new opportunities. her community. soared. Over several years, she expanded her enterprise in Scotland, in 2013, where she was the keynote to three outlets in the city center, hired ten employees, speaker. Her success also inspired us to create a FINCA and she is now a supplier for businesses as far away as Client of the Year Award. Naturally, Cissy is our first Dubai, where she flies almost monthly for sales calls. honoree.

20 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 21 FINCA BY REGION

Brighter Futures as Clients Grow with Us

Armenia Azerbaijan Eurasia Georgia Kosovo Kyrgyzstan Brighter Futures as Russia Clients Grow with Us Tajikistan

With a combined half-billion- Meeting needs with improved products and expansion is continuing into 2014. FINCA dollar loan portfolio, almost half a To reach greater numbers of low-income Russia also began negotiations to introduce an million clients, and a nearly 99% entrepreneurs in remote locations, FINCA agent-based remittances product. Kyrgyzstan launched a microfinance hotline and client repayment rate, FINCA’s Despite operating in a challenging market, FINCA call center in 2013. Dialing 4400 from any location subsidiaries in Eurasia have long Armenia has been a pioneer in the country on provides prospective and current customers with been among the most successful several fronts. We introduced foreign exchange consultation and assistance related to FINCA’s services in 27 branches; raised the maximum microfinance providers in the services. FINCA Kyrgyzstan also installed payment region. amount on small and medium enterprise loans for terminals in many of its large branches to allow clients who continue to grow their businesses; and In 2013, FINCA Armenia was clients to make loan payments, pay utility bills, and we laid the groundwork for credit life insurance, access other services with greater speed, safety, recognized as the Best Credit which ensures that a client’s loan will be paid in and efficiency. Organization of the Year in an the event of the borrower’s death. independent public opinion poll. To provide a more relevant suite of products for 2013 was a milestone year for FINCA Georgia, FINCA Azerbaijan was named clients, FINCA Kosovo re-priced and merged its which transformed into a formal deposit-taking best “2013 Non-Bank Credit previous 10 loan offerings into five products: bank and began preparing for a whole new set Organization” in a national banking business loans, agriculture loans, group loans, of services. FINCA Georgia operates in all areas of industry survey. And FINCA home improvement loans and life improvement the country, with about 85% of our 47,000 clients Tajikistan was named microfinance loans. located outside the capital city. “Brand of the Year” by the Ministry At FINCA Russia, we developed a new loan In Azerbaijan, where we reached over 150,000 of Economic Development and product, “Express Micro,” and launched it in two active borrowers and disbursed $314 million Trade, which noted the important branches in late 2013. Express Micro simplifies the in loans, FINCA became the first microfinance role that organizations like FINCA loan origination process, making it easier for clients institution to issue a bond on the Baku Stock play in economic development. to access our services. Initial results were successful Exchange to help finance our work there.

22 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 23 FINCA BY REGION Eurasia Client Stories Brighter Futures as Clients Grow with Us

Small Individual Village Group Voluntary Agency Micro Money Agricultural Products & Services Loan Banking Loan Savings Banking Insurance Transfer Loan Armenia Azerbaijan Georgia Kosovo Rabia Urokova, Tajikistan Sabrije Tehaj, Kosovo Kyrgyzstan Rabia Urokova works as a teacher in the Kurgan Tyube Sabrije Tehaj lives with her husband, their four young area in Tajikistan, but her teaching salary alone does children, and her in-laws in a small home in the village Russia not cover educational expenses for her five daughters. of Kushnin in the Has region of Kosovo. Her husband To earn extra income, Rabia started a business in the works in a bakery and Sabrije helps support the family with earnings from her home-based business. central market selling plov, a national rice dish. Tajikistan A creative and nimble-fingered tailor, Sabrije designs Rabia heard about FINCA’s financial services and im- and embroiders the ornate traditional wedding dresses mediately recognized an opportunity. She organized of her region. Hand-stitching the unique garments, TOTAL LOANS AVERAGE SERVICE YEAR a village banking group with five entrepreneurs from with their complex and colorful patterns, is labor CLIENTS DISBURSED LOAN OUTLETS FOUNDED the central market and became the chairperson. Rabia’s intensive but the result is outstanding and highly first loan of $160 allowed her to open an additional valued in the community. Armenia 53,474 $66M $1,466 28 1999 summer business location, where her daughters sell Sabrije joined FINCA Kosovo’s “Temaj” Village Bank plov while on school vacation. With her second loan of group to help her expand and strengthen her business. Azerbaijan 152,825 $314M $2,008 65 1998 $262, Rabia bought rice wholesale, increasing her profit She used her first €500 FINCA loan to purchase margin. Rabia’s daughters were able to return to school materials and other supplies at wholesale, in order to Georgia 48,623 $93M $1,571 36 1998 after the summer with money that they and their save money. Her business is growing steadily and now mother earned from their microbusiness. Rabia and her becoming more profitable. She plans to continue her Kosovo 11,424 $15M $1,666 19 2000 Village Bank group “Zebo” plan to continue growing relationship with FINCA and enjoys contributing to her their businesses through successive loan cycles. family’s welfare. They need the income and it is helping create a better future for her children. Kyrgyzstan 128,341 $152M $1,219 105 1995 Russia 15,688 $51M $4,142 34 1999 Gujumal, Kyrgyzstan Tajikistan 28,932 $38M $1,172 34 2003 Twenty-six years ago, Gujumal’s husband died, leaving her to care for their five children. To earn income, Gujumal started a small shop with As of Dec. 31, 2013 a few random items. She gradually built her inventory but it wasn’t until 2004, when she received her first FINCA loan for $600, that her business started to take off. Ten years later, Gujumal owns a thriving, two-story retail establishment, with groceries on the ground floor and clothing on the second floor. She built and stocked a new store with a $12,000 FINCA loan. With the profits from her microenterprise, Gujumal has been able to send her children to university. They are now all doctors, lawyers and businessmen in their own right and Gujumal is a very proud mother indeed.

24 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 25 FINCA BY REGION

Brighter Futures by Working Hand in Hand

Ecuador Latin America El Salvador Guatemala and Caribbean Haiti Brighter Futures by Honduras Mexico Working Hand in Hand Nicaragua

When economic times are tough, like Village Banking for the smallest individual small enterprise loans were strong. they were in many Latin American and businesses In Honduras, this supported the take-up of The LAC region is where FINCA first devel- savings accounts, leading to a doubling in Caribbean (LAC) countries in 2013, the oped Village Banking – the group lending savings clients. It also enabled our village basic need for people to access finance model that caters to the smallest microenter- banking clients to make payments directly and other support to create their own prises. It continues to be popular in several with FINCA, instead of through a commercial countries, such as Nicaragua, where three bank where they might not be welcomed in livelihoods becomes ever more critical. quarters of borrowers were group lending the same way as at FINCA. In total, FINCA issued over 624,000 clients at the end of 2013. In Haiti, where we are still rebuilding our program after the 2010 loans to entrepreneurs in LAC, valued earthquake, more than 80 percent of clients Local partnering for remote at $414 million. We closed the year depend on the solidarity and group guar- and electronic banking with 282,142 clients. While there were antees provided by Village Banking. In 2013, To help people make payments and total clients in Haiti grew from 2,445 to 10,244 remittances remotely, FINCA partnered with challenges and important adjustments in one year, a remarkable come-back. Oxxo in Mexico and TIGO in Guatemala, for in Ecuador, Guatemala and Mexico, we example, adding thousands of convenient saw significant growth in some of our More branches, teller services payment locations for our clients in both to welcome clients countries. We estimate this saves clients an smaller programs, especially in Central The addition of new and renovated branches average of five US dollars in transportation America, leading to overall FINCA and cashier stations – for a total of 179 – con- costs to make a payment in person. It also borrower growth of 1.6%. tributed to growth in client outreach across saves them valuable time and is safer than many countries, such as in El Salvador, where traveling with hard-earned cash.

26 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 27 FINCA BY REGION Latin America and Caribbean Client Stories Brighter Futures by Working Hand in Hand

Small Individual Village Group Voluntary Micro Money Agricultural Products & Services Loan Banking Loan Savings Insurance Transfer Loan Ecuador El Salvador Guatemala

The Garcia Women, Mexico Haiti Catarina Castro Cac De Lux, Guatemala Three industrious women in Mexico epitomize the goal of FINCA to build brighter futures. They are a grandmother, daughter, and granddaughter Honduras The business of weaving is a family affair from the Garcia family in the village of San Jose Morelos, in Pueblo. for Catarina Castro Cac de Lux and her Matriarch Maria Petra Garcia has raised pigs for many years. In 1995, she Mexico husband. They have earned their living over joined a FINCA Village Bank and took out a loan to expand her farm. After the past seven years by weaving beautiful seeing her mother’s success as a FINCA client and entrepreneur, Maria Nicaragua scarves, blankets, and fabrics for skirts, Petra’s daughter Catalina took out a FINCA loan to start a restaurant. which they sell in their village in Quiché, Catalina’s daughter – Maria Petra’s granddaughter – Elizabeth, inspired by Guatemala. the success of the women in her family, recently began selling shoes and is TOTAL LOANS AVERAGE SERVICE YEAR using the profits from that business to attend law school. This generational CLIENTS DISBURSED LOAN OUTLETS FOUNDED While the business has provided the family succession of FINCA clients is the best possible testament to the power of with a small income over the years, there FINCA loans to change lives. Ecuador 71,620 $77M $1,293 26 1993 was never enough to ensure that their five El Salvador 13,132 $15M $823 10 1990 children—between 3 and 15 years old— Don Yovanni, El Salvador had more than small amounts of food. Don Yovanni lives in the midst of a tropical for- Guatemala 32,261 $30M $670 29 1989 Sending the children to school was also a est, past the commercial area of Planes de Ren- luxury the family couldn’t afford. deros, near San Salvador. He is married and the Haiti 10,244 $8M $387 6 1989 father of three children. As a child, Don Yovanni Catarina and her husband knew that if had big dreams. He hoped to study engineering Honduras 16,910 $14M $873 18 1989 and join the Air Force. His parents were very they could purchase another loom, they Mexico 131,818 $235M $586 76 1989 could increase their production and earn poor, however, and so he instead went to work more income. Catarina joined the Pachaj at an early age, mostly as a car painter. After 15 years exposed to the paint fumes, he developed Nicaragua 41,588 $36M $546 14 1992 Flowers Village Bank group and took out a serious lung problems and had to quit. loan to purchase a second loom and buy As of Dec. 31, 2013 thread in bulk. This helped her be more To feed his family, Don Yovanni began fixing profitable and ensure sufficient supplies bicycles by the side of a main road in San and inventory through the rainy season. Salvador. He slowly saved enough money to purchase a couple of bicycles that he could rent out by the hour to tour- Once the rain sets in, it is very difficult ists. With loans from friends, Don Yovanni purchased additional bicycles, to travel from Catarina’s village to larger until he had accumulated more than 30, along with an old pick-up truck to markets to access materials. It was always transport them from his home to tourist locations. He was doing well, but a problem that resulted in a halt to income was limited by the lack of a permanent location. Meanwhile, as his production at a certain point each year. inventory of bicycles become old and increasingly damaged, Don Yovanni knew he would need to renew his supply in order to remain in business. Catarina is proud to report that, since No banks were willing to lend funds to his small, informal business. receiving her loan, she and her husband FINCA provided Don Yovanni his first business loan. He now owns a shop have increased their production two-fold. that rents bicycles to tourists across from a large park in San Salvador. He This has allowed her to buy a greater variety has an inventory of 60 bicycles. Don Yovanni says that if weren’t for his of foods for her family and the children are FINCA loan, he would have lost his little business and his ability to provide now all in school. for his family.

28 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 29 FINCA BY REGION

Brighter Futures by Working Together

Middle East

and South Asia Afghanistan Brighter Futures by Jordan Working Together Pakistan

At FINCA, we believe that when regular people FINCA builds the basis for peace In Jordan, we also saw tremendous growth. are empowered to produce and provide for Throughout the MESA region, businesses are Client numbers rose by 23 percent, and we more flourishing and women and men are embrac- than doubled the total value of loans disbursed, their families and communities, they will do ing the opportunity that FINCA provides. FINCA with an average disbursed loan size of $898. We so. Economic opportunity and a dynamic disbursed 90,744 loans valued at over $67 million began offering declining interest rate loan prod- micro and small business sector are a critical in 2013, helping advance the goals and work of ucts, which offer a significant cost reduction for part of the fabric of any society. It is important 85,000 entrepreneurs and their families. Including clients on their loan payments. We also began a savers, FINCA served approximately 250,000 cli- mobile wallets pilot program enabling clients to not only for the happiness and welfare of ents in the MESA region. FINCA offers a variety of pay off their loans using their mobile phones. individuals, but for the overall peace and products to clients in all three countries, including In Pakistan, FINCA focused on rebranding our stability of nations and regions. solidarity group loans and Sharia-compliant loans. new subsidiary there and welcoming all our new FINCA Afghanistan had a banner year even in clients and employees. Preparing for 2014, we set FINCA first opened doors in Afghanistan, in the face of external challenges that affected the plans for reaching more clients with the already 2003, followed by Jordan in 2007. Ten years country’s economy and security. Client outreach diverse array of services and delivery channels later, with the acquisition of Pakistan’s largest increased by 41 percent, with an average loan size that are offered – such as point of service devic- of $470. Our entrepreneurs ran businesses ranging and most successful microfinance organization es and banking via third party agents. We also from beauty salons to farming to tailoring, serving prepared to pilot a new agricultural and livestock in 2013, we started delivering services to local communities with the goods and services loan product. low-income entrepreneurs in Pakistan, where they need every day. We look forward to a possi- ble regulatory change in the country that would there is enormous need and potential for permit FINCA to offer savings accounts to clients microfinance to make an impact. in addition to loans.

30 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 31 FINCA BY REGION Middle East and South Asia Client Stories Brighter Futures by Working Together

Noor Zia, Majeda Suleiman, Jordan Afghanistan Youth Noor Zia used to Majeda Suleiman and Small Products/ her husband were Individual Group Voluntary Agency Education Islamic work in a beauty Products & Services Loan Loan Savings Banking Loan Loan successful Jordanian parlor and her entrepreneurs, earn- husband was a ing a good income Afghanistan master tailor. After from a trading com- migrating to a new pany they had start- Jordan city due to mili- ed. In 2008, however, tary unrest, they the company suffered Pakistan suddenly had no a series of reversals source of income and Majeda and her and could not meet husband lost every- daily expenses. To support her husband, daugh- thing. They ended ter, four teenage sons and herself, Noor used her up owing thousands of dollars to their suppliers, small savings to purchase cosmetics and set up a and had to sell much of their property to repay TOTAL LOANS AVERAGE SERVICE YEAR their debts. The family’s living standards suffered beauty salon at her home. At first, she struggled to CLIENTS DISBURSED LOAN OUTLETS FOUNDED severely. make enough income but she was determined to Afghanistan 27,236 $20M $735 15 2003 provide what she could. In 2009, Majeda decided to start another family venture on a smaller scale – a catering business In 2005, things got better when Noor heard about Jordan 19,022 $17M $890 9 2007 – hoping to turn around her family’s fortunes. FINCA. FINCA appealed to her because we were She realized she needed additional capital if she Pakistan 200,489 $28M $682 76 2013 making loans available to women like her who was going to be able to expand her business and work hard to build small businesses. Noor joined meet the surprising demand. Having heard about As of Dec. 31, 2013 a FINCA solidarity group and used her first loan FINCA Jordan from her daughter, who belonged of $100 to expand her inventory. With the profits to a borrowing group, Majeda decided to apply from those sales, she bought a sewing machine for an individual FINCA loan of $700. She used her for her husband and he was able to return to his first loan to finance the purchase of utensils and previous occupation as a tailor. After several years other equipment, as well as a supply of ingredi- of steady growth in her business, Noor qualified ents, to accommodate the high volume of orders. for higher individual loans, opened a beauty salon Thanks to her long hours in the kitchen, glowing in the marketplace, and hired an employee. Over reviews from her customers, and her FINCA loans, the years and with bigger FINCA loans, she has Majeda’s catering business has grown rapidly. generated enough income to ensure that her Now she is taking big orders for wedding par- daughter and sons could complete school. After ties and other occasions. She plans to continue graduation, her daughter married and now her working with FINCA so she can continue growing sons are master tailors too. her business. Majeda is very proud of how she has helped her family regain some of what they had Noor’s most recent loan of $1,800 has been in- before. She feels like the worst is behind them, vested in cosmetics and accessories for her shop, and now she smiles because she knows her luck which now employs four people. After supporting has changed for the better. her family, Noor says that her greatest achieve- ment is that she has trained more than 70 young women to become beauticians. She says she would not have had this success without FINCA.

32 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 33 THE FINCA FAMILY THE FINCA FAMILY

Nayima Omar – A Special FINCA Family Member Nayima was born in the Iganga District of Uganda in 1958. Her mother was Ugandan and her fa- ther was of Arab origin. In Nayima’s family, the girls were not permit- ted to receive an education, but her brother secretly taught her to read and write. Nayima was mar- ried at age 13 and bore her first child at age 15. Nayima Omar, in a FINCA Ambas- sador outfit that she designed take on the responsibility of a loan. In Warmth, trust, and responsible banking Twenty years – and eight chil- all that they do, loan officers embody What it Means to In many ways, our loan officers are the heart dren – later, Nayima’s husband and soul of FINCA, comprising 45% of FINCA’s the warmth, trust, and responsible died after a long illness while she was pregnant with twins. With lit- personnel. Loan officers generally come banking that clients know are at the tle money, Nayima and her ten children were forced to move into a be Part of FINCA from the communities they serve and they core of FINCA. one-room dwelling. She had to borrow a neighbor’s used soap suds build close relationships with our borrowers. to wash her family’s clothes. Her sons were forced to leave school. Trained employees benefit clients They are the ones who ride dusty roads on a Frequently, her family had no food. FINCA relies on the expertise and and benefit communities motorcycle to teach small groups of women dedication of nearly 12,000 staff in Tanzania how to borrow and find new ways FINCA provides classroom and on- In 1996, Nayima was introduced to FINCA Village Banking and re- ceived a loan of $40, which she used to buy and re-sell fruit by the members based at more than 700 local to save. They traverse difficult terrain to visit the-job training to all loan officers road. With incredible hard work and perseverance, and increasingly weavers in Nicaragua to hear how a business before they are qualified to work for FINCA offices on five continents. Less larger FINCA loans, Nayima saved enough money to start and oper- is doing. They are the interviewers who help us. We also give them opportunities ate a modest hotel and restaurant. She also began building a modest than 1% of our global staff works at individuals who have never before discussed to advance within the organization. four-bedroom home for her large family. FINCA International’s headquarters in financial services determine their readiness to From initial training for new recruits, to specialized courses for managers Nayima had become a model of entrepreneurial success. But then Washington, DC. and supervisors through our FINCA hardship and misfortune struck when Nayima was diagnosed with Development Academy, FINCA advanced breast cancer and she was forced to shut down her hotel succeeds because we invest in people. and was unable to complete the construction of her family home. This means good jobs for thousands When FINCA learned of Nayima’s reversal of fortune, we invited her to of people in communities that need become a special member of the FINCA family. With her experience them, including operational and as a successful entrepreneur and customer-service skills learned in financial roles, risk management, the hotel business, it was obvious that Nayima had much to teach relationship management, branch budding micro-entrepreneurs in her community. supervision and loan servicing. As with our clients, behind every FINCA Nayima is now an official FINCA Ambassador in Uganda. She is re- employee there is usually a family and ceiving regular medical treatment and is doing well. She has been sometimes many more people who able to complete construction on her house, she owns a small retail benefit from the income. shop, and she is paying the school fees for her younger children and grandchildren. In Nayima’s words, “becoming a FINCA Ambassador and member of the FINCA family has made it possible for me to re- gain my lost glory.”

34 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 35 PHILANTHROPIC PARTNERS Philanthropic Partners

FINCA is grateful to all the corporate, foundation, bilateral, and multilateral partners who support our work on long-range and large-scale initiatives. The partners below lend significant financial support, as well as technology and know-how. They United States Department of mobilization strategies throughout its 22-subsidiary help us enter new markets, deliver new products and services, and improve the Agriculture (USDA) network, and by the end of 2013, FINCA had more than Since FINCA’s first Food for Prog- 760,000 depositors – more than ten times the number efficiency and effectiveness of our operations. ress program with the USDA, we of savers when the grant was signed in 2009. have shared a vision for investing in market-based agricultural development. FINCA has The MasterCard Foundation implemented 14 programs in 11 countries, using In July 2013, The MasterCard Founda- Public Sector Philanthropic Partners Tajikistan to develop human resources, brand USDA resources to pioneer unique agricultural tion and FINCA Canada entered into recognition and new savings products. The aim is loan, insurance, and savings products, and deploy- a multi- year partnership to signifi- Inter-American Development to mobilize 17,000 new savers and $3.5 million in ing mobile and digital technology wherever pos- cantly scale-up financial inclusion in Bank (IDB) savings by the end of 2014. sible to save costs and create more convenience Malawi, Tanzania and Zambia. During this period, FINCA IDB, through its Multilateral Investment for our clients. Since 2000, USDA has contributed will establish new delivery channels to deliver products Fund (FOMIN), has supported FINCA with both loans and United Nations Capital Development Fund over $70 million for FINCA projects, including $54 to rural and underserved communities. In addition, targeted technical assistance that has allowed FINCA to (UNCDF) million in seed capital for loans that get repaid and support will allow FINCA to provide training that helps expand its outreach in rural areas, improve its operations, The UNCDF is supporting FINCA’s efforts to in- recycled into new microloans. staff shift their orientation from credit-centric prod- and increase its use of technology to deliver value to its crease financial inclusion in Sub-Sa- ucts to a broader range of financial services including microfinance clients. FOMIN is currently providing loans haran Africa. FINCA is a partner with Private Sector Philanthropic Partners savings, and further embed social performance metrics and technical assistance to FINCA in Nicaragua and Mexi- UNCDF in the Democratic Republic into every aspect of FINCA’s operations. The MasterCard co. This assistance is supporting FINCA’s use of technology of Congo and Uganda as part of Credit Suisse Foundation also supports FINCA through their Youth- to expand credit activities in rural areas, developing an their Youth Start program, which is Since October 2008, Credit Start program, managed by UNCDF. activity-based costing model in Nicaragua to ultimately also supported by The MasterCard Foundation. Suisse has been the pre- lower prices for clients, and assisting FINCA Mexico in Through these two programs, FINCA has devel- mier partner of FINCA’s global training and leader- MasterCard WorldWide transforming into a deposit-taking institution offering oped savings products tailored to meet the needs ship development initiatives, including the FINCA MasterCard Worldwide is partnering expanded services and value to its clients. of youth ages 12 to 24. With UNCDF support, Development Academy. These capacity building with FINCA in Nigeria to assist with FINCA has provided financial education to more initiatives are designed to promote leadership, the establishment of a new subsidi- International Finance than 28,000 young people, and mobilized more expertise, and performance among FINCA’s 12,000 ary in the FINCA network. The funding Corporation (IFC) than 21,000 youth to open savings accounts in employees worldwide, particularly credit staff. is helping us develop branchless banking capacity so In addition to being the the two countries. Credit Suisse has also provided instrumental sup- that when FINCA Nigeria commences operations in lead social investor in FINCA Microfinance Holding port for FINCA’s social performance and customer 2014 we will be able to quickly expand outreach to Company LLC, IFC has been partnering with FINCA to United States Agency for research capabilities. unbanked people in Nigeria. improve governance and risk management systems, International Development build capacity, establish a leadership program in (USAID) Citi Foundation Whole Planet Foundation principles of responsible finance, and enhance its USAID has been a long-time Citi Foundation has provided philan- Through the Whole Planet Founda- ability to deliver digital financial services in hard- supporter of FINCA and was a key partner in thropic support to FINCA for more tion’s provision of interest-free loan to-reach areas. Starting in 2012, for example, FINCA FINCA’s early development and growth. USAID than 20 years, in nine countries across capital, FINCA has expanded outreach partnered with IFC to scale up the use of alternative support has allowed FINCA to significantly scale the FINCA network. Citi Foundation has facilitated the in the Democratic Republic of Congo, delivery channels in the DR Congo with the goal of its microfinance programs throughout Latin creation of new village banking groups and has been specifically in our Likasi and Kolwezi branches, by reaching an additional 100,000 clients over four years. America, Eurasia and Africa. Recent programs an active sponsor of FINCA’s branchless banking and funding loan capital that provides much needed Principles and standards laid out in many of these have supported the earthquake recovery in Haiti, social performance initiatives, most recently in Jordan micro-loans to several thousand borrowers. initiatives will be rolled out systematically in all of our financial access for the very poor in Mexico, pilot and Zambia. Africa Subsidiaries. IFC has provided a number of loans programs to develop card-based services in Latin WildHearts The Bill & Melinda directly to several FINCA Subsidiaries. America, and clean energy financing in Uganda. Wild Hearts, a Scot- FINCA is currently partnering with USAID in Gates Foundation tish-based charity that Oesterreichische Entwick- Jordan on a Youth Finance Program, piloting an The Bill & Melinda raises funds through lungsbank AG approach that integrates microfinance loans and Gates Foundation’s three-year “Poverty Alleviation its office supply business, partnered with FINCA UK to FINCA developed a new part- entrepreneurship training for budding young through Scalable Savings” grant has helped more than fund microfinance programs in the poorest communi- nership in 2013 with the OeEB, entrepreneurs. 260,000 of the financially excluded become active ties in Africa, Eurasia, the Middle East, and Latin Ameri- which serves as the official development bank of the savers in the DRC, Ecuador, and Uganda. FINCA was ca. Through their efforts they have provided grants and Republic of Austria. The inaugural award for this partner- able to replicate the program’s successful deposit zero percent interest loans to FINCA’s subsidiaries. ship is supporting FINCA’s subsidiaries in Kyrgyzstan and

36 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 37 2013 FINANCIAL SUMMARY 2013 FINANCIAL SUMMARY

Key Indicators: Three-Year Summary 2013 Summary of Performance by Region

2011 2012 2013 Average Year-End Gross Portfolio Total Disbursed Loan Portfolio Total Amount at Risk Total borrowers 910,000 990,000 1,146,000 Region Borrowers Loan Size Outstanding Disbursed >30 days Africa 339,700 $ 421 $ 116,408,606 $ 253,386,000 2.2% Year-end net portfolio $ 505,200,000 $ 626,500,000 $ 828,800,000 Eurasia 438,900 $ 1,659 $ 520,427,737 $ 729,314,000 0.8% Total amount disbursed $ 1,049,668,000 $ 1,191,194,000 $ 1,464,727,000 Middle East and 85,300 $ 745 $ 46,083,297 $ 67,621,000 1.2% South Asia Portfolio at risk >30 days 1.5% 1.5% 1.5% Latin America 282,100 $ 664 $ 157,711,027 $ 414,406,000 3.3% Total savers 228,284 311,522 767,104 and Caribbean

Total 1,146,000 $ 834 $ 840,630,667 $1,464,727,000 1.5% Total deposits from clients* $ 40,723,414 $ 44,180,546 $ 78,354,279

*Includes savings accounts and loan-related deposits.

38 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 39 2013 FINANCIAL SUMMARY 2013 FINANCIAL SUMMARY

FINCA International 2013 FINCA International 2013 Consolidated Statement of Activities* Consolidated Statement of Financial Position*

FINCA International is a 501(c)3 Total 2013 Total 2012 ASSETS 2013 2012 not-for-profit corporation and the majority shareholder of FINCA OPERATING REVENUES: CASH AND CASH EQUIVALENTS $155,060,628 $114,632,334 Microfinance Holding Company 2013 LLC (FMH) which owns or controls Contributions: RESTRICTED CASH AND CASH EQUIVALENTS 25,054,057 27,749,373 our network of 22 microfinance Corporate, foundation, and individual giving $12,993,001 $14,978,673 4.5% SHORT-TERM INVESTMENTS 8,261,193 17,245,829 subsidiaries. FMH is a unique social % investment partnership designed to Services and gifts in kind 2,848,012 3,091,475 General & 1.1 LOANS RECEIVABLE—Net 828,793,935 626,474,238 Administrative Fundraising help us scale up our services to serve GRANTS RECEIVABLE—Net 3,817,764 2,071,262 more people in need (see page 11 of Program: this report.) Interest income 307,025,050 262,343,616 OTHER RECEIVABLES, PREPAIDS, AND OTHER ASSETS 16,127,756 12,842,703 PROPERTY AND EQUIPMENT—Net 29,135,224 21,592,896 FINCA grew steadily in 2013, Grants and contracts, including federal government 15,593,236 5,936,488 issuing 1,756,682 loans valued at INTANGIBLE ASSETS—Net 14,961,450 9,232,789 Fees and other program income 17,339,952 7,636,034 $1,464,727,000 representing a 23 LONG-TERM INVESTMENTS AND OTHER ASSETS 14,250,454 3,750,789 percent increase over 2012. Year- Total operating revenues 355,799,251 293,986,286 end net portfolio outstanding was Program GOODWILL 1,108,117 – $828,793,935, which was a 32.3 OPERATING EXPENSES: Services 94.3% DEFERRED TAX ASSETS 8,081,528 5,482,836 percent increase. On the savings Program services 313,051,586 250,330,456 side, the value of total deposits from TOTAL $1,104,652,106 $841,075,049 clients grew by 77%. Fundraising 3,815,725 3,520,656

FINCA International’s consolidated General and administrative 15,008,823 7,916,356 LIABILITIES AND NET ASSETS expenses are classified in three Total operating expenses 331,876,134 261,767,468 categories: program services, general LIABILITIES: and administrative expenses; and fundraising. During 2013, FINCA Accounts payable and other accrued liabilities $36,232,443 $28,004,761 CHANGE IN NET ASSETS FROM OPERATIONS 23,923,117 32,218,818 spent more than $313 million – or Client deposits 78,354,279 44,180,546 94.3 percent of the total consolidated INVESTMENT AND FOREIGN EXCHANGE GAIN (LOSS) 26,701 (451,800) 2012 expenses – on program services Notes payable 644,350,196 480,709,872 PENSION-RELATED CHANGES OTHER THAN NET to benefit our low-income clients. 867,225 (595,440) Subordinated debt 22,558,246 24,101,222 General and administrative expenses PERIODIC BENEFIT COST GAIN (LOSS) 3.02% totaled $15 million, and fundraising TRANSLATION LOSSES OF FOREIGN OPERATIONS (4,487,453) (2,464,486) General & 1.35% Other liabilities 1,650,749 – expenses were $3.8 million, for 4.5 Administrative Fundraising Deferred revenue 7,702,074 11,441,850 percent and 1.1 percent, respectively, CHANGE IN NET ASSETS BEFORE INCOME TAXES 20,329,590 28,707,092 of our total 2013 expenses. Deferred benefits 3,504,764 4,854,602 INCOME TAXES 9,100,297 12,504,331 Deferred tax liabilities 1,245,419 1,924,305 FINCA International’s financial CHANGE IN NET ASSETS BEFORE 11,229,293 – statements were prepared NON-CONTROLLING INTEREST Total liabilities 795,598,170 595,217,158 according to both United States ISSUE OF FMH INTERESTS TO Generally Accepted Accounting 49,999,511 – NET ASSETS: NON-CONTROLLING SHAREHOLDERS Principles (GAAP), shown here, and Unrestricted net assets, FINCA 183,396,344 171,997,415 International Financial Reporting NON-CONTROLLING INTEREST ON THE Program 1,967,241 – Standards. Copies of both versions of PURCHASE OF FINCA BANK LTD. PAKISTAN Services 95.63% Unrestricted net assets, non-controlling interest 123,796,630 71,783,593 the audited financial statements are Total unrestricted net assets 307,192,974 243,781,008 available on our website. CHANGE IN NET ASSETS 63,196,045 16,202,761 NET ASSETS—Beginning of year 245,857,891 229,655,130 Temporary restricted net assets 1,860,962 2,076,883 The consolidated financial statements of FINCA Microfinance NET ASSETS—End of year $309,053,936 $245,857,89 Total net assets 309,053,936 245,857,891 Holding Company are also available on our website. TOTAL $1,104,652,106 $841,075,049 www.finca.org

*Full copies of the Audited Financial Statements, including the Notes, are available at finca.org. *Full copies of the Audited Financial Statements, including the Notes, are available at finca.org.

40 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 41 LEADERSHIP LEADERSHIP

Directors & Advisors FINCA Executive Management

FINCA International FINCA Canada Executive Committee of the Board Directors of the Board Rupert W. Scofield, President and Chief Executive Officer Robert W. Hatch, Chairman and Founding Member Rupert W. Scofield, President, FINCA Canada; Chairman and CEO, Cereal Ingredients, Inc. President and CEO, FINCA International Jacquie Green, Visual Artist Dane Steven McGuire, Vice President and Chief Financial Officer Rupert W. Scofield, Founding Member Gwen Andreotti, Vice President, Knowledge Management, President and CEO, FINCA FINCA International Soledad Gompf, Vice President, New Business Andrée Simon, Vice President and Chief Operations Officer Richard W. Williamson, Founding Member Development, FINCA International Michael Green, President and CEO, ObjectSharp John K. Hatch, Founding Member Corporation Founder, FINCA Linda Wolfond, Philanthropist Ronald Aizer, Deputy Chief Financial Officer

Directors of the Board Advisory Board Carlos Camacho, Entrepreneur Karen Basian, Principal, Firefly Strategy Capital, Inc. Masood Aziz, Vice President and Chief Risk Officer John Elkins, President, International Regions, First Data Debbie Gamble, President, Gamble Consulting Jo Ann Field, Community Activist Shawn Hassel, Managing Director, Alvarez & Marsal Jeff Flowers, Vice President and Regional Director for Eurasia Harold D. Jastram, Esq., Oppenheimer, Wolff & Donnelly (ret.) FINCA United Kingdom Paul LeFort, Retired partner Deloitte Management Consulting, Former SVP/CIO United Health Group & Directors of the Board Mike Gama-Lobo, Vice President and Regional Director for Africa Peoples Resource Center Board Member Rupert W. Scofield, President and CEO, FINCA UK; Agrina Musa, Former Malawi High Commissioner to the Republic President and CEO, FINCA International of South Africa Daniela Menzky, Chief Executive, Auto Clubs International James Semakadde, Lecturer, Kisubi Brother University & Visiting Janet Pope, Director of Group Chief Executive’s Office Soledad Gompf, Vice President, New Business Development Lecturer, Makerere University Business School at Lloyd’s Banking Group Rita E. Spillman Charles Trevail, CEO, Promise Corporation David Weisman, President and CEO, InSite Wireless Group, LLC Chikako Kuno, Director, Transformation, Equity, Mergers and Acquisitions Her Majesty Queen Rania Al-Abdullah of Jordan, Director Advisory Board Emeritus Clare Delmar, Social Entrepreneur Jennifer Harris, Founder and Managing Director, James Lemke, Vice President, Human Resources Advisory Board Board Intelligence Susan Ainsworth, President, Ainsworth Associates Christine Renier, Corporate Marketing Consultant Margaret S. Blakey, Principal, Canopy Investment Advisors, LLC Christina Tessaro, Founder and Director, Asad Mahmood, Vice President of Social Enterprise and Financial Innovation Eugene P. Ericksen, PhD., Professor Emeritus, Tessaro & Associates Temple University Jo Ann Field, Community Activist Braulio Oliveira, Vice President and Chief Information Officer Angéline Fournier, President, Maeva Investments, Inc. FINCA Microfinance Robert Graham, Strategic Financial, The Private Consulting Group Holding Company LLC Hon. Cheryl F. Halpern Directors of the Board Stefan Queck, Vice President and Regional Director for Latin America John Hatch, Jr., Vice President, Global Securities Solutions, Bank Robert W. Hatch, Chairman and CEO, Cereal Ingredients, Inc. of America Merrill Lynch Matthias Adler, Principal Financial Sector Economist, KfW Kristin G. Hatch, Information Consultant Michael Barth, Managing Partner, Barth & Associates LLC Volker Renner, Vice President for Credit and Savings Nabeeha Mujeeb Kazi, Managing Director, Rachel Robbins, former General Counsel, IFC Humanitas Global Development Rupert W. Scofield, President and CEO, FINCA International Aleen Keshishian, Partner, Brillstein Entertainment Partners David Weisman, President and CEO, InSite Wireless Group, LLC Allison Scuriatti, Deputy to the President and Chief Executive Officer Charles Loveless, Director of Legislation, American Federation of Richard M. Williamson State, County & Municipal Employees Rebecca Minkoff, REBECCAMINKOFF/BENMINKOFF P. Daniel Smith, Vice President and General Counsel Rosalie Swedlin, Anonymous Content Colston Young, Operation and Special Projects, SAP Ventures Mary Ann Zirelli, Senior Director, Marketing, Oracle Zarlasht Wardak, Vice President and Regional Director for the Middle East and South Asia Ambassador of Hope Natalie Portman

Goodwill Envoy Zoe Saldana

42 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 43 FINCA International’s OUR GENEROUS SUPPORTERS Generous Supporters

FINCA received more than 125,000 contributions, investments and other financial Estate of Eugene A. Simon Marianne Gabel and Donald Lateiner Rosalie Swedlin and Robert Cort Gregory L. Garst support between January 1 and December 31, 2013. To all who generously support Alexander C. Templeton The Gesher Family Foundation our efforts to provide a hand up, not a handout, the Board of Directors, staff, and H. van Ameringen Foundation The Lynn Gordon and David E. Simon Fund Armin F. Vetter Foundation Trust Mary and John Grant Foundation our more than one million clients worldwide offer heartfelt gratitude. Due to space Edward J. and Barbara A. Wilson Michael and Jacquie Green Elizabeth and Jack Witherow Timothy and Amy Guth constraints, FINCA is not able to acknowledge all donors individually. In addition, Linda and Greg Wolfond Kimberly A. Halley Cary and Lynn Yeh Andrea and Robert Hannus while every effort is made to ensure the accuracy of this list, errors can sometimes Colston E. Young Ruth E. Henry Trust The Zephyr Charitable Foundation, Inc. Rosita Hiscox occur. If you believe an error or omission has been made, please contact us. Sue and Ralph Hoevelman Donors Giving Erle G. Holm Donors Giving $25,000 and Above Donors Giving $10,000-$24,999 Brenda L. Johnson $5,000-$9,999 Nina G. Kagiwada Anonymous (1) Anonymous (5) Anonymous (2) Berthe K. and Edward H. Ladd The Cameron and Jane Baird Foundation Rev. Linda Hunt Anton Shirley A. Adams Carol K. Levine Catherine M. Stiefel and J. Keith Behner Cindy and Eric Arbanovella Alpern Family Foundation, Inc. Cathy A. Lindy Charitable Fund Byron E. Bartlett Hedi and Markus Andres Torben S. Lorenzen Estate of Audrey Brune Alvin I. Brown and Peggy Brown Family Michael Andrews Daniel Lynch Foundation, Inc. Estelle Craig Charitable Foundation The Ruth Arnhold Endowment Fund at the Beverley Martin Estate of Donald D. Dodge, Jr. Brunner Wise Fund East Bay Community Foundation Mastropieri Trust Terry and John Elkins Craig and Samantha Campbell Kent P. Bach The Virginia McCallum Charitable Trust The Hershey Family Foundation Mr. Robert A. Ciulla Mr. and Mrs. Dennis M. Berryman Alice D. Mertz Estate of Jeanne Hess Carol and Lloyd Darlington Jill O. Brown Margaret C. Miller Ron and Cheryl Howard Family Foundation Julia and Eugene Ericksen Steven Bruckner Malcolm R. Minasian David A. Kiefer Helen H. Ford Estate of Frederic Buch Marjorie B. Morris Paul and Eileen LeFort Nancy and Robert W. Hatch Susan O. Bush Susan B. Okie Mr. David Aron Levine and Jennifer and John F. Haughton Cathy B. and Richard Cavell Leslie O’Loughlin Mrs. Ruth Miriam Levine Frank R. and Miriam R. Hellinger Clifford Foundation, Inc. Barbara Payne Margaret O. Little Estate of James Hughson Mr. D. Elwood Clinard Kathleen Peto Sharon Lee MacDonald Charitable Trust Soledad and Robert Hurst Loretta Connolly Living Trust Nicholas Petraglia Gwen McLaughlin Trust The InMaat Foundation Kerry K. Reinertsen-Crabbe and Ronald J. and Nancy Ryan Proesel The Osprey Foundation of Maryland Estate of Mark Jansen Emmanuel F. Crabbe William H. Prusoff Foundation Estate of Jane Grey Pfeiffer Willis Jensen Mr. and Mrs. Larry Dare Ruth Rollins The Skolnick Foundation Mrs. Marianne D. Kluever DeMartini Family Foundation The Dorothy D. and George H. Ruff Foundation The Spurlino Foundation Carol Tyrrell Kyle Foundation Carol Duncan The Saint Paul Foundation The Vibrant Village Foundation The Leibowitz and Greenway Family Charles Engelke Dr. Gary H. Schwartz David E. Weisman and Ms. Jacqueline Michel Charitable Foundation Brian and Beth Etheridge Barbara T. Sloan Stephen H. Wolf William and Lisa McGlone Walter & Marie & Barbara Falk Family Foundation Tana Sommer-Belin Josie Woodman Grace McIlvain Nancy and Larry Fitzgerald Sheila Stiles Nolan A. Miller The Elaine & Tim Fitzgibbon Charitable Fund Estate of Allan Joseph Taylor Tertia Moore Bert and Candace Forbes Mr. and Mrs. Bruce M. Thomson Ostara, a supporting foundation Estate of Carolyn Fostel Maria S. Tracy of the Jewish Federation of Cleveland Franklin Conklin Foundation Charles and Elaine Turnbull Lynne and Archie Palmer Cameron and Diane Fowler Chris and Valerie Valdiviez Scoob Trust Foundation Ms. Rebecca G. Frederick and Ray E. & Barbara Van Alstine Trust The Seattle Foundation Ms. Trina J. Tjersland Jared and Rachel Van Bussel

44 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 45 OUR GENEROUS SUPPORTERS OUR GENEROUS SUPPORTERS

Margaret and Walter D. Wales Kathleen Garfield Raymond Family Foundation Clifford Chance LLP Margaret B. Watkins Charles M. and Patricia Geiger Christine Renier Covington & Burling LLP Marcia D. Weber Steven Gerber Hannes Richter and Synthia Scofield Credit Suisse Foundation Lainy and Rick Wells Bob and Eileen Gilman Family Foundation Frank E. Ritchey Dechert LLP Noah L. Wheeler and Amanda L. Cooper Lynn and John Goodwyne Rita M. Rodriguez DLA Piper LLP Cheryl and Jeffrey L. Williams Kathryn Graham Katherine M. Sanford First Data Corporation Richard and Kristen Williamson Robert Granieri Dr. Barton D. Schmitt Freshfields Bruckhaus Deringer LLP Janet and Joseph Williamson Greater Houston Community Foundation Gregg S. Sciabica Gilbert’s LLP Pedie E. Wolfond Michael Haber Dr. Ralph D. Scoville Google Inc Dr. Robert B. Zufall Kristen Hatch and Delaina Miller Scudder Family Foundation Hengeler Mueller Diane Horn Brenda B. Senturia Investors Group Matching Gift Program Donors Giving $2,500-$4,999 Mark Houghton Patricia Serio Kirkland & Ellis LLP Sally House-Miller Andrew M. Sessler Latham & Watkins LLP Anonymous (2) Joe B. Hudgens Barbara C. Simmons MasterCard Incorporated Janet and Gregory Abels Judy M. Judd Simple Actions Family Foundation Inc. Metlife Foundation Lynne Altwerger The Kalan Foundation Gary R. Smith Microsoft Corporation Elizabeth Anderson Kirsten Kinney Robert M. Sprague Roxann Stoski Medical Corp Lill I. Anderson Ernest and Karen Koenig Helen Squires Simmons & Simmons LLP Russell E. and Carol H. Atha Walter A. and Madeleine D. Korfmacher Leigh E. Stamets Total Security Management Services Inc. James T. Avery Richard and Barbara Kraft John Sullivan WeirFoulds LLP Avila University George W. Krumme Michael P. Sullivan Stephen Bany Jacqueline Krump John and Susan Tappeiner Foundations Philip and Daniele Barach Family Foundation George W. and Marlys E. Ladd Thendara Foundation Victoria E. Beynon Thomas A. Lehrer Rebecca Thomas BenefAction Foundation Phyllis Bischof Dr. Josef L. Leitmann Jeffrey Urbina and Gaye L. Hill Chimp Foundation John W. Bloom Andrea Lekushoff Wendy Vanden Heuvel The Flanagan Foundation Marion Boyle Alexi Lubomirski Betty A. Vinton Ford Foundation Cynthia G. and Joel C. Bradley Luck Family Foundation Mr. and Mrs. John Waldron Bill and Melinda Gates Foundation James Broucek Angela Lustig John W. Watts The Peter Gilgan Foundation Karen L. Bruinooge Alexandra J. and Thomas G. MacCracken Robert and Renate Wegner Greater Kansas City Community Foundation David and Barbara Burns James B. Mackenzie David F. and Sara K. Weston Fund The Hockey Family Foundation Samuel Burr Susan L. Madian Lois Q. and Martin J. Whitman The Krembil Foundation Paul & Pearl Caslow Foundation Lorenz and Ursula Magaard Nancy G. Whitney The Kristie Charitable Foundation Brad C. and Amanda Cherry Mary and John F. Manley Karen and Stephen Wiel The Susan, Sarah and Nicholas Latremoille Fund William G. Christensen Andrew Marmillion John P. Wood The MasterCard Foundation Audrey Clarke Victoria Marone Karen A. Wright Gerald Oppenheimer Family Foundation Renee Conforte Margaret C. McKee Walter and Regina Wunsch C. B. Powell Foundation Martha R. Davis McKenzie River Gathering Foundation RBC Foundation Jean Day Ann Morrison Corporations Rumsfeld Foundation Mark Dexter and Deborah Cowley J. T. Murphy Sharp Foundation Mr. and Mrs. Mark Dickson Alec J. Newman Akol Avukatlik Bürosu Whole Planet Foundation Joan M. Drury One Kings Lane, Inc. Barrday, Inc. Wildhearts Limited William Ewing Foundation Vikas and Lois E. Passi Boivin Desbiens Senécal Letendre LLP Feinstein Foundation Paulson Charitable Foundation Brigard & Castro Jo Ann Field Kenneth Pavlik Burberry Ltd (Canada) Evelyn R. Ferguson Leslie Petteys Cereal Ingredients, Inc. Richard A. Fink Roger Piper Citi Foundation Frank W. Finsthwait Jacqueline Ratner Cleary Gottlieb Steen & Hamilton LLP

46 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 47 OUR GENEROUS SUPPORTERS OUR GENEROUS SUPPORTERS

Government and Donna and Donna Burke Nancy Sienknecht Française de Développement – AFD) Multilateral Institutions Kenneth Burrows Nancy D. Solomon Fundación José María Covelo Diane Cavenee Robert and Faye Spencer Global Partnerships Inter-American Development Bank Thomas and Janice Chamberlin Ruth Stahl Greater Horizons International Finance Corporation Roger C. Conant Bill and Susie Thorness Greater Kansas City Foundation KfW Bankengruppe Barbara Crook Ann Tiernan Incofin Investment Management Oesterreichische Entwicklungsbank AG Don Dietz Robin E. Velte Inter-American Development Bank Regional MSME Investment Fund for Sub- Estate of Donald D. Dodge, Jr. Barbara Wade Inter-American Investment Corporation Saharan Africa S.A. Damaris J. Rohsenow and Norman A. Dudziak Mark F. Wales International Finance Corporation Swiss Capacity Building Facility Jo Ann Field Thomas E. and Barbara Weakley KfW Development Bank United Nations Capital Development Fund Elizabeth A. Fimbres Karen and Stephen Wiel Langley Hill Friends Society United States Agency for International Ray Ganey Rodney E. and Priscilla H. Wilson MFX Solutions Development Emily Garlin Julia T. Wood Microfinance Enhancement Facility United States Department of Agriculture Steve Goldstein Colston E. Young Microfinance Growth Facility (MigroF) Margaret Gossage MicroVest Capital Management Private Voluntary Organizations Nancy and Robert W. Hatch LENDING PARTNERS Netherlands Development Finance Company $1000 and above Maryjude Hoeffel (FMO) John R. Hoffman ALTERFIN Oikocredit Church of the Resurrection Sarah Evelyn Jeffrey Ardshininvestbank Our Lady of Victory Miss. Community Church of Barrington Marie Kellogg ArmSwissBank Perls Foundation First Grantham United Church Ann R. Kempees Banamex Rabitabank First Unitarian Church of Oklahoma City Martha Kilgour Banco Atlantida Regional MSME Fund for Sub-Saharan Africa First Unitarian Church of Providence Douglas H. Kleinsmith Banco G&T Continental (REGMIFA) First United Methodist Church of Northville Marianne D. Kluever Banco Internacional responsAbility The Human Rights Project Inc. K. A. Krick Banco Pacifico Sisters of Charity of New York Mile High Friends of FINCA James E. and Leslea S. Kunz Banco Reformador Sisters of Sorrowful Mother Rotaract Club of the University of Toronto Mr. and Rev. C. T. Leinbach, III Bank Alfalah BBVA Bancomer Sisters of St. Joseph Saltwater Unitarian Universalist Church Helen Lieber Black Sea Trade and Development Bank Société Générale de Banque Jordanie University College School Rosemary and David Logan BlueOrchard Finance Symbiotics Zen Buddhist Temple Richard A. Lundy BNP PARIBAS The Currency Exchange Fund (TCX) Jeannine McCormick Calvert Foundation Triodos Investment Management B.V. Deanna Melendez Central American Bank for Triple Jump Circle of Hope Regina Michaelis Economic Integration (BCIE) VBCF & Individual Lenders Terri Mockler Citibank Whole Planet Foundation FINCA gratefully acknowledges the more than Corporacion Financiera Nacional 3,000 members of our Circle of Hope who Peter Newman and Kathy Lang Wild Hearts Limited Mr. and Mrs. John Parke Credit Suisse Woodlands Investment Management support FINCA’s efforts to end global poverty by Deutsche Bank making automatic contributions every month. Dr. Vivienne E. Perkins-McLean The World Bank William N. Raiford Developing World Markets John Rau Dreamcatcher Fund MicroPlace Legacy Society Alfred and Connie Remetch EOLO Investments B.V. Alan M. and Helen C. Appleford Victoria Repen European Bank for Reconstruction and We gratefully acknowledge the more than 1,500 David F. Bard Phillip Richman Development individuals and organizations who invested in Belinda K. Barington Michele Risa European Fund for Southeast Europe FINCA through MicroPlace, a unique website in Deborah A. Barto Tracie E. Rowson FINAFIM operation from 2007 through 2013 that helped Ann Bein Chris M. Sanders Finance in Motion FINCA aggregate individual investments to make Dorothy L. Benavides Lynne Schreiber FINCA Microfinance Fund B.V. loans to clients in FINCA’s 22 Subsidiaries. M. Judith and R. Bruce Billings Lorraine O’Hara and Rupert Scofield First Merchant Bank Limited Dorothy Bloch Catherine E. Shearer French Agency for Development (Agence

48 FINCA.org | Creating Brighter Futures FINCA 2013 ANNUAL REPORT 49 FINCA OFFICES

FINCA Afghanistan FINCA Haiti FINCA Pakistan Sher Zaman, CEO Marie Marcelle Saint-Gilles, CEO Mudassar Aqil, CEO Tel: +1-202-682-1510 26, Rue Métellus 387-E, Johar Town Pétionville, Port-au-Prince Lahore, Pakistan FINCA Armenia Haiti Tel: +92-42-35222852 Hrach Tokhmakhyan, CEO Tel: +509-2813-0631 Tel: +92-42-35222853 Agatangeghos Street, 2a Yerevan, Armenia 0023 FINCA Honduras FINCA Russia Tel: +374-10-54-55-31 Juan More, CEO Manish Sane, Interim CEO Tel: +374-10-54-55-32 Colonia Tepeyac, Edificio Discovery 111 Revolutsionnaya Street Tel: +374-60-46-56-11 Avenida las Minitas enfrente de la Samara 443079 Embajada de Nicaragua Russia FINCA Azerbaijan Tegucigalpa, Honduras Tel: +7-846-260-7832 Timothy Tarrant, CEO Tel: +504-2235-8191 Tel: +7-846-260-1307 Jafar Jabbarli Street 44 Tel: +504-2235-8192 Tel: +7-846-260-1308 Caspian Plaza, 8th floor Tel: +504-2235-8196 Baku 1065, Azerbaijan FINCA Tajikistan Tel: +994-12-596-3384 FINCA Jordan Jana Kadian, CEO Tel: +994-12-596-3385 John Yancura, CEO F. Niezi 34 Tel: +994-12-596-3386 Al Abdali- Al Farid Building- 3rd Floor Dushanbe P.O.Box 926939 Republic Tajikistan FINCA Democratic Republic of Congo Amman 11190 Jordan Tel: +992-37-2214476 Alejandro Jakubowicz, CEO Tel: +962-6-566-4627 1286 Ave Tombalbaye Tel: +962-6-566-4678 FINCA Tanzania Entrée: au coin Ave Colonel Ed Greenwood, CEO Ebeya–Ave Hopital FINCA Kosovo Plot 84, Morogoro Road, BP 13447, Kinshasa 1 Florin Lila, CEO Magomeni Mwembe chai Democratic Republic of the Congo Robert Doll 5 P.O. Box 78783 Tel: +243-84-104-6615 Prishtina, Kosovo Dar es Salaam, Tanzania Tel: +381-38-609721 Tel: +255-22-2172452 FINCA Ecuador Tel: +255-22-2172453 Phil Broughton, CEO FINCA Kyrgyzstan Avda. Amazonas N39-123 y José Arízaga Makhmud Saidakhmatov, CEO FINCA Uganda Edificio Amazonas Plaza, 9no. piso 93/2 Shopokova Street Julius Omoding, CEO Quito, Ecuador Bishkek 720021 Plot 22 Ben Kiwanuka Street Ways to Give Tel: +593-2-246-1660 Kyrgyz Republic Post Office Box 24450 Tel: +996-312-440-440 Kampala, Uganda FINCA El Salvador Tel: +256-41-4-231134 A Gift of Securities Honor and Memorial Gifts Jov O’Brien, CEO FINCA Malawi Consider a gift to FINCA of stocks, bonds or mutual Making a gift in honor, or memory, of a loved one is a Paseo General Escalón y Calle Chris Kizza, Acting CEO FINCA Zambia funds. Any securities you’ve owned for 12 months thoughtful way to support FINCA’s poverty alleviation Circunvalación Henderson Street Thomas Lendzian, CEO or longer, whose value has increased, are subject to work, and make a statement of care about someone No. 4647 Private Bag 382 P. O. Box 50061, Ridgeway, Colonia Escalon Blantyre, Malawi Stand No. 4513 capital gains tax when sold. By giving these securities special in your life. San Salvador, El Salvador Tel: +265-1-823-157 Madzi Moyo Road, Northmead to FINCA, you may receive a charitable deduction for Tel: +503-22007400 Tel: +265-1-822-256 Lusaka, Zambia up to their full fair market value. Please consult your tax Corporate Matching Gifts Tel: +265-1-824-544 Tel: +260-21-1291903 advisor for further information. Corporate matching gift programs are among the best FINCA Georgia E-mail: [email protected] Vusal Verdiyev, CEO FINCA Mexico and simplest ways for FINCA supporters to maximize Circle of Hope 71 Vazha-Pshavela Avenue Luis Camacho, CEO the value and impact of their gifts. Most programs 3rd Floor, Office 12 Calle Díaz Ordaz No. 12, Col. Cantarranas, The most cost effective—and easiest—way to support match the charitable contributions of employees, dollar Tbilisi 0186, Georgia Cuernavaca, Morelos FINCA. Simply determine a monthly contribution for dollar, and some even double or triple the amount! Tel: +995-32-207410 México, C.P. 62448 amount, provide us with credit card or checking Tel: +995-32-207411 Tel: +52-777-362-1070 account information, and your account will be Legacy Society Tel: +995-32-207412 E-mail: [email protected] billed automatically. You can change the amount, or FINCA’s Legacy Society provides an opportunity to withdraw from the program, simply by writing us. FINCA Guatemala FINCA Nicaragua include a bequest to FINCA in your will. A carefully- Elmer Zepeda, CEO Klaus Geyer, CEO designed estate plan can provide significant estate 3ave. 10-35, Zona 09 De la Rotonda del Gueguense, tax relief, allow you to determine the distribution of Guatemala City 3 cuadras al Lago, contiguo a SUMEDICO your assets, and let you express your values through Guatemala Residencial Bolonia, Managua, Nicaragua continued support of our work. Tel: +502-2312-9292 Tel: +505-2254-5120 E-mail: [email protected]

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