MICROCAPITAL BRIEF: UK-Based Standard Chartered Bank Loans $1.8m to Asa Philippines Foundation

Standard Chartered Bank (SCB), a UK-based financial services company, reportedly has extended a loan of PHP 80 million (USD 1.8 million) to Asa Philippines Foundation (Asa), a Manila-based provider of loans, savings, insurance, business development training and academic scholarships for clients and their children in the Philippines. The loan will be used to support the development of microenterprises in the country.

According to an unspecified report conducted by Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, microborrowers repay loans more responsibly and default less than affluent borrowers. The report indicates that thus far in 2013, microlenders have extended loans worth PHP 8.2 billion (USD 189 million).

In 2012, SCB reported total assets of USD 637 billion and return on equity of 12.8 percent. As of March 2013, Asa reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 57 million, a gross loan portfolio of USD 55 million, 601,000 active borrowers, deposits of USD 32 million from 601,000 depositors, return on assets of 5.31 percent and return on equity of 29.28 percent.

By Adrija Vaiciulionis, Research Associate

About Standard Chartered Bank:
Founded in 1969, Standard Chartered Bank (SCB) is a financial services company based in the United Kingdom. For the year 2012, SCB reported total assets of USD 637 billion and return on equity of 12.8 percent. It has also invested a total of USD 1 billion in various microfinance institutions in Asia and Africa over an unspecified period.

About Asa Philippines Foundation:
Asa Philippines Foundation (Asa) is a non-profit organization that was established in 2004 and focuses on microfinance. Asa provides loans, savings and insurance products, in addition to business development training and academic scholarships, to clients and their children in the Philippines. As of March 2013, Asa reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 57 million, a gross loan portfolio of USD 55 million, 601,000 active borrowers, deposits of USD 32 million from 601,000 depositors, return on assets of 5.31 percent and return on equity of 29.28 percent.

Sources and Additional Resources:

Business Mirror Article, “Standard Chartered Bank Extends P80-M Loan to Microlender,”http://www.businessmirror.com.ph/index.php/en/business/banking-finance/19734-standard-chartered-bank-extends-p80-m-loan-to-microlender

MicroCapital Article, August 9, 2013, “MICROCAPITAL BRIEF: Standard Chartered Bank (SCB) Loans $6m to Asian MFIs ASA Philippines Foundation, Mitra Bisnis Keluarga Ventura of Indonesia,”https://www.microcapital.org/microcapital-brief-standard-chartered-bank-scb-loans-6m-to-asian-mfis-asa-philippines-foundation-mitra-bisnis-keluarga-ventura-of-indonesia/

MicroCapital Article, March 13, 2013, “MICROCAPITAL BRIEF: Asian Development Bank, Standard Chartered Bank Commit $150m to Microfinance in Asia,” https://www.microcapital.org/microcapital-brief-asian-development-bank-standard-chartered-bank-commit-150m-to-microfinance-in-asia/

MicroCapital Universe Profile: Standard Chartered Bank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC

MicroCapital Universe Profile: ASA Philippines Foundation,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ASA+Philippines+Foundation

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