QUESTION ONE

The following information were extracted from the books and report of MFI operating in Kisumu County as ta $31$st December $2022$:

$

$$ Number of active loans outstanding as at $31$st December $20221,200,000$

$$ Outstanding principal balance of all loans with at least one payment Rest due more than $30$ days $1,300,000$

$$ Outstanding principal balance as at $31$st December $2022120,000,000$

$$ Outstanding balance of loans negotiated during the year $1,100,000$

$$ Amount of loans written$-$off during the financial year ended $31$st December $1,320,000$

$$ Total outstanding portfolio at the beginning of the year $(2022)100,000,000$

$$ Net operating profit for the year ended $1,300,000$

$$ Total Equity capital of the beginning of the year $12,000,000$

$$ Total Assets of the beginning of the year $120,000,000$

$$ Total Assets of the end of the year $125,000,000$

$$ Administrative and personnel costs $12,000,000$

$$ Number of active loans at the beginning of the year $1,160,000$

Required:

a$)$ Calculate:

$($i$)$ Depth of the MFI$$s outreach

$($ii$)$ Portfolio at Risk

$($iii$)$ Written $$ off loan ratio

$($iv$)$ Return on equity

$($v$)$ Return on Asset

$($vi$)$ Operating expense ratio

$($vii$)$ Comment on the general performance of this institution

$[$Total: $35$marks$]$