MICROCAPITAL BRIEF: Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente of Peru Now Controlled by Fundacion Microfinannzas BBVA, to be Merged into Financiera Confianza

The Peruvian Superintendency of Banking, Insurance and Pension Fund Administrators (known as SBS in Spanish) recently approved the merger of two Peruvian microfinance institutions (MFIs) via the absorption of Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente by Financiera Confianza. The new entity, Financiera Confianza SAA will have assets of approximately PEN 1.2 billion (USD 462 million), approximately 180 offices and information booths, and 456,000 clients served when the merger takes effect on May 1, 2013.

Fundacion Microfinanzas BBVA, a nonprofit organization founded by the Spain-based Banco Bilbao Vizcaya Argentaria (BBVA) Group, holds an 80-percent share in CRAC Nuestra Gente, which – until this transaction is closed – holds a 49-percent share in Financiera Confianza. The size of the stake that Fundacion Microfinanzas BBVA will hold in the new entity has not been disclosed. Other MFI members of Fundacion Microfinanzas BBVA are located in Argentina, Chile, Colombia, the Dominican Republic, Panama and Puerto Rico.

As of year-end 2012, Financiera Confianza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 248 million, a gross loan portfolio of USD 202 million outstanding to 96,000 borrowers, return on assets (ROA) of 3.39 percent, return on equity (ROE) of 21.38 percent and USD 78 million in deposits from 45,000 depositors. As of the same time period, CRAC Nuestra Gente reported total assets of USD 399 million, a gross loan portfolio of USD 272 million disbursed to 133,000 active borrowers, ROA of 0.65 percent, ROE of 2.93 percent and USD 236 million in deposits from 276,000 depositors.

Sources and Additional Resources:

Fundacion Microfinanzas BBVA Press Release: “The Superintendency Office of Banking, Insurance and AFP Approves the Merger of Caja Nuestra Gente and Financiera Confianza,” http://www.mfbbva.org/english/press-room/news/article/106/89.html?no_cache=1&cHash=0cdb51c52c

MicroCapital.org story, November 28, 2012, “MICROCAPITAL BRIEF: Fundacion Microfinanzas BBVA of Spain Takes 31% Stake in Asociacion Dominicana para el Desarrollo de la Mujer (ADOPEM) of the Dominican Republic,” https://www.microcapital.org/microcapital-brief-fundacion-microfinanzas-bbva-of-spain-takes-31-stake-in-asociacion-dominicana-para-el-desarrollo-de-la-mujer-adopem-of-the-dominican-republic/

MicroCapital.org story, August 11, 2011, “MICROCAPITAL BRIEF: responsAbility Loans $10.5m in Local Currency to ProCredit Affiliates in Ecuador, Mexico; Peruvian Microfinance Institutions Confianza, Crear Arequipa,” https://www.microcapital.org/microcapital-brief-responsability-loans-10-5m-in-local-currency-to-procredit-affiliates-in-ecuador-mexico-peruvian-microfinance-institutions-confianza-crear-arequipa/

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