Fundacion Microfinanzas Banco Bilbao Vizcaya Argentaria (BBVA), a nonprofit affiliate of Spanish banking heavyweight BBVA Group, recently has taken a 31-percent stake in microfinance institution (MFI) Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) of the Dominican Republic for an undisclosed sum. This percentage is reportedly expected to grow over time. According to Manuel Mendez del Rio Piovich, President of Fundacion Microfinanzas BBVA, both parties have the same social mission and together want to impact the most vulnerable segment of the population by offering a range of financial products and services that will lead to a sustainable lifestyle. Customers will be offered financial education and entrepreneurial training programs by the partners. Fundacion Microfinanzas BBVA now operates in seven Latin American countries and eventually intends to expand its services to markets it has not yet penetrated such as Haiti.
Established in 1982, ADOPEM offers financial products and services including microenterprise loans, voluntary savings and insurance products as well as enterprise skill development and financial literacy education. The client base of ADOPEM is 74 percent female. As of 2011, ADOPEM reports total assets of USD 85.3 million, a gross loan portfolio of USD 66 million outstanding to 146,000 borrowers, return on assets (ROA) of 5.5 percent, return on equity (ROE) of 21.9 percent and USD 23 million in deposits collected from 199,000 depositors.
Fundacion Microfinanzas BBVA, based in Madrid, Spain, was created in May 2007 by Spanish bank BBVA, which reports total assets of EUR 598 billion (USD 775 billion) as of 2011. The foundation has built a network of nine MFIs in Argentina, Chile, Colombia, Dominican Republic, Panama, Peru and Puerto Rico serving 1.26 million customers through 462 branches with an outstanding credit volume of USD 1.07 billion as of 2011.
By Sarah Benali, Research Associate
About Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM)
Established in 1982, Asociación Dominicana para el Desarrollo de la Mujer (Banco ADOPEM) is a microfinance institution based in the Dominican Republic. It provides a number of financial products and services, including microenterprise loans, voluntary savings and insurance products. It also provides non-financial services such as enterprise skill development and financial literacy education. Loans have terms of 4 to 36 months and can be used for either working capital or fixed investments across its 43 offices. The main client base is made up of women that want to create their own business or to strengthen their existing microenterprise. As of 2011, Banco ADOPEM reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 85.3 million, a gross loan portfolio of USD 66 million outstanding to 146,000 borrowers, return on assets (ROA) of 5.5 percent, return on equity (ROE) of 21.9 percent and USD 23 million in deposits from 199,000 depositors.
About Fundacion BBVA Microfinanzas
Fundación BBVA Microfinanzas (BBVA Microfinance Foundation) is a Spanish nonprofit organization that was created in May 2007 by BBVA, a Spanish bank that reported total assets of EUR 598 billion (USD 775 billion) as of December, CUT COMMA 2011. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance. Fundación BBVA Microfinanzas is also building a network of microfinance institutions (MFIs), which consists of nine MFIs in Argentina, Chile, Colombia, Dominican Republic, Panama, Peru and Puerto Rico as of September 2012. As of the same period, these nine report having 462 branches, an outstanding credit volume of USD 1.07 billion serving 1.26 million customers.
Sources and Additional Resources
Fundacion Microfinanzas BBVA Press Release: “Banco ADOPEM and BBVA Microfinance Foundation join to support poor people’s economic enterprises and small-scale businesses,” November 2012, http://www.mfbbva.org/english/press-room/news/article/100/89.html?no_cache=1&cHash=e2d410ee2a
MicroCapital.org story: “MICROCAPITAL BRIEF: BBVA Microfinance Affiliate Corporacion para las Microfinanzas Puerto Rico (PR) Reaches $2m in Entrepreneurial Loans,” March 13, 2012, http://www.microcapital.org/microcapital-brief-bbva-microfinance-affiliate-corporacion-para-las-microfinanzas-puerto-rico-pr-reaches-2m-in-entrepreneurial-loans/
MicroCapital.org story: “MICROCAPITAL BRIEF: Women’s World Banking, Microfinance Institution Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) Use Television Soap Opera to Teach Savings,” November 6, 2011, http://www.microcapital.org/microcapital-brief-women%E2%80%99s-world-banking-microfinance-institution-asociacion-dominicana-para-el-desarrollo-de-la-mujer-banco-adopem-use-television-soap-opera-to-teach-savings/
MicroCapital Universe Profile: Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM)
MicroCapital Universe Profile: Fundación BBVA Microfinanzas http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundaci%C3%B3n+BBVA+Microfinanzas
MicroCapital Universe Profile: Grupo BBVA
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