MICROCAPITAL BRIEF: Financiera Edyficar Launches Microfinance Institution (MFI) Encumbra in Colombia

Peru-based microlender Financiera Edyficar (Edyficar), an operating subsidiary of Peruvian bank holding company Credicorp, recently launched a microfinance institution (MFI) named Encumbra in the Colombian city of Medellin that will serve the micro- and small enterprise sector in the country. Credicorp plans to invest USD 78 million in Encumbra over the next eight years. The new MFI will provide loans of up to COP 15 million (USD 7,700) each.

As of December 2012, Edyficar reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 1.1 billion, 433,000 active borrowers, total deposits of USD 514 million, 1,810 depositors, return on assets of 4.23 percent and return on equity of 41.0 percent. As of December 2013, Credicorp reported total assets of USD 40.9 billion, return on assets of 1.4 percent and return on equity of 13.4 percent.

By Juan Blanco, Research Associate

About Financiera Edyficar (Edyficar)

Established in Peru in 1997, Financiera Edyficar (Edyficar) is a financial institution that provides services to low-income individuals, in particular small-business owners. In 2009, the institution was acquired by Banco de Credito del Peru (BCP), an operating subsidiary of Peruvian bank holding company Creditcorp. As of December 2012, Edyficar reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 1.1 billion, 433,000 active borrowers, total deposits of USD 514 million, 1,810 depositors, return on assets of 4.23 percent and return on equity of 41.0 percent.

About Credicorp

Credicorp is a bank holding company with headquarters in the city of Lima, Peru. The company was founded in 1889 and operates through four principal subsidiaries: Banco de Credito del Peru (BCP), Atlantic Security Holding Corporation (ASHC), El Pacífico-Peruano Suiza Compañía de Seguros y Reaseguros (PPS) and Credicorp Capital. Through its subsidiaries, Credicorp provides commercial banking, insurance and investment banking services in Peru and internationally. As of December 2013, Credicorp reported USD 40.9 billion in total assets, return on assets (ROA) of 1.4 percent and return on equity (ROE) of 13.5 percent.

Sources and Additional Resources

[1] El Comercio, “Credicorp ingresó al sector microfinanzas en Colombia,” April 2014, http://elcomercio.pe/economia/negocios/credicorp-ingreso-al-sector-microfinanzas-colombia-noticia-1726014

[2] El Economista, “Credicorp lanza microfinanciera Encumbra en Colombia,” April 2014, http://www.eleconomistaamerica.co/empresas-eAm-colombia/noticias/5743210/04/14/Credicorp-lanza-microfinanciera-Encumbra-en-Colombia.html#.Kku8IqjtBbBNi5K

MicroCapital Story, March 25, 2014, “Peru-based Financiera Edyficar’s Acquisition of 61% Stake in Mibanco Receives Regulatory Approval,” https://www.microcapital.org/microcapital-brief-peru-based-financiera-edyficars-acquisition-of-61-stake-in-mibanco-receives-regulatory-approval/

MicroCapital Story, February 21, 2014, “Creditcorp’s Financiera Edyficar of Peru to Acquire 61% Stake in Mibanco for $179m,” https://www.microcapital.org/microcapital-brief-creditcorps-financiera-edyficar-of-peru-to-acquire-61-stake-in-mibanco-for-179m/

MicroCapital Universe Profile: Edyficar, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Edyficar

MicroCapital Universe Profile: Credicorp, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Creditcorp

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