1. Islamic Microfinance: Recent Experience and Future Challenges Focus on the Field A Day of Workshops to Advance Practice through Collaboration presents Facilitator: Sasha Muench, Mercy Corps - Monterey Institute of International Studies Presenters: Aamir Rehman, Harvard University Paul Robinson, FINCA Robert Wieland, WOCCU October 23, 2007 Washington, DC

6. WOCCU & Islamic Microfinance in Afghanistan Experiences from ARIES & MISFA Robert Wieland, for Curtis Slover, World Council of Credit Unions. October 23, 2007 Washington, DC

8. 1,134 77 74 66 8 542 367 Female 7,096 737 756 961 305 2,070 2,267 Male Gender 8,230 814 830 1,027 313 2,612 2,634 Total by Province Nangarhar Baghlan Samangan Aqcha Jawzjan Balkh Provinces Grand Total East North Regions Data Disaggregation Number Unit of Measure Members of Investment and Finance Cooperatives Indicators

9. 2,035,061 205,640 142,860 150,090 16090 774,000 746,381 Trade 812,873 68,490 8,700 9,500 7460 366,550 352,173 Service 244,071 17,100 - 7,600 660 142,250 76,461 Non-Ag Manufacturing 1,250,215 6,700 83,500 149,890 33420 499,300 477,405 Ag & Ag related Enterprises Sector 4,342,220 297,930 235,060 317,080 57,630 1,782,100 1,652,420 < 1 Year Term 195,100 195,100 $1001-$7000 1,637,900 114,000 3,000 8,400 1000 718,700 792,800 $501-$1000 2,317,120 176,780 227,560 291,150 54,910 725,680 841,040 $201-$500 192,100 7,150 4,500 17,530 1720 142,620 18,580 < $200 Size 549,405 10,100 11,960 11,100 200 315,665 200,380 Female 3,792,815 287,830 223,100 305,980 57,430 1,466,435 1,452,040 Male Gender 4,342,220 297,930 235,060 317,080 57,630 1,782,100 1,652,420 Total by Province Nangarhar Baghlan Samangan Aqcha Jawzjan Balkh Provinces Grand Total East North Regions Data Disaggregation Loan Principal (USD) Unit of Measure Cumulative Value of Loans Disbursed Indicators

10. Performance Indicators 1 0 0 0 0 130 Number Cumulative # of loans written off $233 0 0 0 0 $23,730 (USD) Cumulative value of loans written off 93% 101 119% 100% 99% 94% Percentage Cumulative repayment rate 8% 8% 0 0% 5% 8% Percentage Portfolio at risk (> 30 days) 11% 13% 14% 5% 12% 12% Percentage Yield on portfolio 26% 43% 37% 11% 132% 102% Percentage Overall operating self-sufficiency 45% 27% 43% 37% 12% 13% Percentage Overall operating expense ratio 136 147 119 78 435 352 Number Clients per staff member NIFC SIFC BaIFC Aqcha IFC JIFC BIFC Unit of Measure Indicator

11. 120,443.00 99,758.00 81,399.00 57,864.00 TOTAL INCOME 99,734.00 81,879.00 65,819.00 47,544.00 Total Financial Income 6,632.00 4,674.00 3,210.00 2,764.00 Loan Fee Income (Murabaha) 93,102.00 77,205.00 62,609.00 44,780.00 Admin Charges on Financial Services 0.00 - 0.00 0.00 Financial Income 20,709.00 17,879.00 15,580.00 10,320.00 Total Non-Financial Income 18,739.00 16,381.00 14,414.00 9,470.00 Income for Future Periods-Project support 1,970.00 1,498.00 1,166.00 850.00 Extra-Ordinary Income/Membership Fee Non-Financial Income INCOME As of September 2007 As of August 2007 As of July 2007 As of June 2007

12. 29,658.00 20,333.00 16,068.00 11,950.00 Total Financial Costs 0.00 - 0.00 0.00 Admin Charges on Borrowings 4,862.00 - 0.00 0.00 Dividend Costs-Share Capital 21,761.00 17,868.00 14,162.00 10,546.00 Dividend Costs-Subordinated Debt 2,574.00 2,059.00 1,577.00 1,157.00 Dividend Costs-Savings Deposits 461.00 406.00 329.00 247.00 Dividend Costs- Time Deposits FINANCIAL COSTS As of September 2007 Asof August 2007 As of July 2007 As of June 2007

13. 8,875.00 12,260.00 9,750.00 1,811.00 NET INCOME 111,568.00 87,498.00 71,649.00 56,053.00 Total Costs 81,910.00 67,165.00 55,581.00 44,103.00 Total Operational Costs 13,452.00 11,216.00 8,971.00 6,551.00 Office Leasing & Utilities 52.00 22.00 11.00 7.00 Dollar Valuation Adjustment 13,423.00 8,484.00 8,235.00 8,235.00 Provision for Losses 0.00 - 0.00 0.00 Marketing 5,204.00 5,055.00 4,901.00 4,852.00 Governance 5,152.00 4,129.00 3,153.00 2,412.00 Depreciation/Amortization 8,271.00 7,405.00 6,442.00 4,274.00 Administrative Costs 36,356.00 30,854.00 23,868.00 17,772.00 Salaries and benefits Operational Expenses As of September 2007 As of August 2007 As of July 2007 As of June 2007