AMERSFOORT, The Netherlands - Financial Statements 2008 Show Solid Fundamentals and Positive Results

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.

www.oikocredit.org

Source: Oikocredit

Further information: Juliette de Voogd, Corporate Communication, Oikocredit, T: +31-33-422-40-50, M: +31-6-133-65-205, jdevoogd at oikocredit.org