Microfinance Leader Opportunity International Reports Record Growth

OAK BROOK, Ill., June 21 /PRNewswire-USNewswire/ -- Opportunity International, one of the world's largest and fastest growing microfinance organizations, today announced in 2006 audited financial results that it received record donations of $80.7 million worldwide, an 85 percent increase over 2005. Combined with capital market debt and savings deposits from its microfinance clients, the organization mobilized a record total of $293 million to deploy to the poor in 28 countries where it provides a broadening range of financial services.

This significant increase in mobilizing funds directly impacted the number of poor people receiving its loans, banking and insurance services. At year-end, Opportunity International was helping more than eight million poor, including the children, family members and employees of its clients.

"We're pleased with these results because they demonstrate the effectiveness of microfinance as an important solution to world poverty, and because this empowers our organization to fulfill our mission to serve more of the poorest of the working poor," said Christopher A. Crane, president and CEO of Opportunity International.

Founded in 1971 by business entrepreneurs, Opportunity International has grown at a compound rate of 26 percent annually the past five years. The organization distributed nearly 1.5 million loans totaling $466 million in 2006 through its microfinance programs in Africa, Asia, Eastern Europe and Latin America.

Banks, Insurance Lead Growth in Serving More Clients

A key factor in the growth of Opportunity International has been the rapid expansion of microfinance banks that provide a range of financial services to the working poor. From opening its first bank in 2000, the organization now operates 17 banks or financial institutions that provide needed savings accounts, loans and other financial services. These "banks for the poor" use cutting-edge technology to lower transaction costs with smart cards, biometric fingerprint identification and mobile ATMs. Most importantly, they give the poor a safe, secure place to save their money. The banks ended 2006 with $190 million in client savings accounts.

Opportunity International is a pioneer and world leader in developing insurance for the poor. Started only five years ago, the Micro Insurance Agency now insures 3.5 million people in 10 Asian and African countries, helping establish a financial safety net for the poorest of the working poor. With average premiums of about $1.50 per month, the agency is making affordable credit and life insurance available for the first time to those most at risk, including people infected with HIV/AIDS. The Micro Insurance Agency is expanding with a wide variety of insurance products, including a successful crop insurance program that protects rural farmers in Malawi from drought.

Opportunity International's increasingly vast reach can be attributed to its comprehensive approach to microfinance. Currently, the organization has more than one million active loan clients, 85 percent of whom are women. These clients on average have five financial dependents (children, relatives and adopted orphans) and its research shows that for every two loans made, one new job is created.

  Additional highlights from the 2006 results include:

  --  Opportunity International is ahead of schedule to meet its goal of
      mobilizing $1 billion over the next six years to benefit 100 million
      poor people by 2015.
  --  Thanks to third-party investments, savings deposits and commercial
      borrowings, every $1 donated to Opportunity International in 2006
      resulted in $1.63 mobilized to serve the poor.
  --  The loan repayment rate of 98 percent was unchanged, emphasizing the
      ability of the poor to manage their loans and grow their businesses
      with great success.
  --  The operational sustainability of the 45 organizations that make up
      Opportunity International in 28 countries was 106 percent, meaning
      that the organizations are financially sustainable and able to broaden
      their reach and scope, especially into rural areas.  Any funds
      remaining after expenses are plowed right back in these organizations
      to serve more poor people.

"In just the past two years, our industry has been recognized, honored and funded by, among others, the United Nations, the World Bank, the Nobel Committee and the Bill & Melinda Gates Foundation, which demonstrates the effectiveness of the leading microfinance organizations operating in the developing world today. We are succeeding where so many other attempts to alleviate poverty have failed," Crane said.

About Opportunity International

Opportunity International is committed to solving global poverty. Serving over one million poor entrepreneurs in 28 developing countries, Opportunity International is a pioneer in offering small business loans, savings, insurance and training in basic business practices to women and men living in chronic poverty. Founded in 1971 as one of the first microcredit lenders, Opportunity International provides small loans - sometimes as little as $50 - and other services that allow poor entrepreneurs to start or expand a business, develop a steady income, provide for their families and create jobs for their neighbors. Opportunity International is motivated by Jesus Christ's call to serve the poor and maintains a network of offices across the globe, with U.S. offices in Oak Brook, Ill. and San Diego. For more information, visit http://www.opportunity.org/.