In a time when most financial institutions look back on a very weak year, Oikocredit has succeeded in growing its field investments by 32% to EUR 365 million. Total assets increased with 15% to EUR 449 million. Despite the drop of all stock markets, the Oikocredit share has retained its value. Based on the good results and expectations for the coming year, Oikocredit's board of directors will propose to its members to continue paying out 2% dividend to its investors.

According to the World Bank, net private debt and equity flows to developing countries will fall from 7,7% to 3% of those countries' Gross Domestic Products this year. The Institute for International Finance predicts banks will extract more from debt repayments in emerging markets than they will inject in new loans. Against this bleak background we are proud to say that Oikocredit stands out in its fight against poverty. Our prudent investment strategy, strong relationship with project partners and straightforward financial products allow us to continue investing in the working poor. In 2008, the ratio of our microfinance projects at risk dropped to the lowest level in our history: 1.5%. This proves that poor borrowers with little collateral can be successful entrepreneurs and repay their microloans. Evidence shows that investing in them brings significant social and economic change.

Measuring the impact of microfinance

Oikocredit is committed to measuring the social performance of its financing activities. A recent impact assessment survey was conducted with Philippine microfinance institution PALFSI, which received an Oikocredit loan in 2003 and 2007. The survey was performed over 3 years and aimed to measure the real-life impact of the PALFSI microfinance programme. The results were overwhelmingly positive, with around 93% of participants citing improved living conditions since their membership with the microfinance institution. They stated that they were able to start up a business, improve business conditions, develop self-confidence and send their children to school. This recent study shows us that microfinance holds the power to bring about positive social change. In 2008 Oikocredit and its partners reached out to 15 million people worldwide.

The purpose of profit

Oikocredit's net result in 2008 amounted to EUR 11.4 million, of which EUR 6.6 million is proposed to be paid as dividend to its members. Today's crisis questions the financial world on the purposes of profit making. From its inception, Oikocredit has - apart from paying a modest dividend to its members - used its net result for the benefit of its social mission. Oikocredit's investors put their financial interests after the social benefit their money can have. This year, investors will receive a share of the good results and, again, they will be asked to reinvest some of that reward to continue to help the working poor. We can not lose sight of the fact 1 billion people live under the poverty line, lacking basic needs as food security, shelter and education. Those people need our trust and credit to overcome this situation. Poverty is a threat to peace, as professor Yunus reminded us when he received his 2006 Nobel Peace prize. Investors, with their daily choices, can join Oikocredit in the fight for peace and against poverty.

About Oikocredit

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Started as a pioneer in the field of development financing, Oikocredit is today one of the largest financiers of the microfinance sector worldwide. Oikocredit is one of the few ethical investment opportunities, which finances development projects in the South benefiting disadvantaged and marginalised people.
 
Privately owned, Oikocredit is a unique cooperative society, which encourages investors to invest their funds in a socially responsible manner. Read more about Oikocredit's mission and values.
 
Oikocredit's loans are channelled through a network of Regional Offices spread over Latin America, Asia, Africa, Central and Eastern Europe and managed by local professionals. Today more than 75% of our outstanding capital goes to financial intermediaries, so-called microfinance institutions (MFIs).
 
Moreover Oikocredit finances cooperatives or small and medium-sized enterprises (SMEs) involved in agriculture, trade, services and manufacturing. Read more about Oikocredit's Facts & Figures.
   
Oikocredit gives loans instead of donations. This is based on the view that when it comes to achieving economic productivity and self-reliance, loans are a more effective instrument than grants.