Compartamos, a holding company established in Mexico in 2010 with microfinance institution (MFI) Banco Compartamos as its only subsidiary, recently announced that upon receiving the approval of the Peruvian Securities and Exchange Commission, it settled the acquisition of an 82.7 percent stake in Financiera Créditos Arequipa SA (Financiera Crear), a Peruvian MFI, for USD 63 million. The transaction was initially announced by MicroCapital in March 2011. Banco Compartamos Director of Strategy Javier Fernández Cueto stated that this type of acquisition strengthens confidence that the Peruvian economy has a stable financial market and a mature microfinance sector.
As of March 31 2011, Compartamos reported total assets of USD 1 billion, a gross loan portfolio of USD 894 million, return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million active borrowers. Financiera Crear reported to the MIX total assets of USD 149 million, a gross loan portfolio of USD 131 million, return on assets (ROA) of 4.98 percent, return on equity (ROE) of 33.3 percent and approximately 88,600 borrowers as of March 31 2011.
By Ashim Kar, Research Associate
About Banco Compartamos:
Banco Compartamos is a microfinance bank based in Mexico that was founded in 1990. It offers group and individual loans in rural and urban areas. Banco Compartamos provides loans to low-income people for business and home improvement purposes. It also offers voluntary savings and insurance products. The company made its initial public offering (IPO) in 2007 on the New York and Mexican stock exchanges in a transaction worth USD 467 million. As of March 31 2011, Compartamos reported to the US-based nonprofit Microfinance Information Exchange (MIX) assets of USD 1 billion and gross loan portfolio of USD 894 million.
In 2011, Banco Compartamos expanded its operations beyond Mexico as follows. In Peru, Compartamos took a majority stake in microlender Financiera Créditos Arequipa SA (Financiera Crear). In Guatemala, Compartamos established a subsidiary, Compartamos SA (Guatemala) that is expected to provide microfinance services across that country.
About Financiera Créditos Arequipa SA (Financiera Crear):
Financiera Créditos Arequipa SA (Financiera Crear) is a Peruvian microfinance institution that was founded in 1992 by the NGO “Habitat Arequipa Siglo XXI” and became a credit entity in 1998. As of March 31 2011, Financiera Crear reported to the MIX total assets of USD 149 million, a gross loan portfolio of USD 131 million, return on assets (ROA) of 4.98 percent, return on equity (ROE) of 33.3 percent and 88,625 borrowers. In 2011, Banco Compartamos of Mexico purchased a majority stake in Financiera Crear.
Sources and Additional Resources:
Compartamos Banco Press Release: “Compartamos S.A.B. de C.V. Concludes the Acquisition for a Majority Stake in Financiera Créditos Arequipa S.A.”,
http://www.businesswire.com/news/home/20110616006596/en/Compartamos-S.A….
MicroCapital.org story, June 9, 2011: “MICROCAPITAL BRIEF: Compartamos Banco of Mexico Announces Commencement of Lending Operations in Guatemala Through Subsidiary”,
https://www.microcapital.org/microcapital-brief-compartamos-banco-of-mexi…
MicroCapital.org story, March 29, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco to Acquire 82% Stake in Peruvian Lender Financiera Créditos Arequipa SA”,
https://www.microcapital.org/microcapital-brief-mexican-microfinance-inst…
MicroCapital.org story, January 24, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Bank Compartamos Banco Looks to Expand in Other Latin American Nations”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-bank…
MicroCapital Universe Profile: Compartamos Banco, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Com…
MicroCapital Universe Profile: Financiera Créditos Arequipa SA (Financiera Crear), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fin…
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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