Carlos Danel, an executive vice president and co-founder of Mexican microfinance bank Compartamos Banco, recently said that the bank is looking to expand into other countries that have similar markets to Mexico, particularly other Latin American countries.

The bank currently has no specific plans for expansion in terms of acquisitions or partnerships, but, according to Compartamos Chairman Alvaro Rodriguez, the bank’s capitalization level of approximately 40 percent gives it flexibility and “many financing options.” In another effort to increase Compartamos’ expansion flexibility, the bank also recently converted its shares to constitute a newly-created holding company, Compartamos SAB as was reported by MicroCapital in November 2010 [1].

By John Howard-Smith, Research Associate

About Compartamos Banco: Compartamos Banco is a microfinance bank based in Mexico that was founded in 1990. It offers groups and individuals services including business and home-improvement loans, voluntary savings and insurance. 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 2009, Compartamos Banco had total assets equivalent to USD 708 million, a gross loan portfolio of USD 577 million and 1.5 million borrowers. For the quarter ending June 30, 2010 the MFI had a return on assets (ROA) of 19.65 percent and return on equity (ROE) of 42.17 percent.

[1] NASDAQ: “Mexico’s Compartamos Likely To Look South For Expansion”, http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201101191249dowjonesdjonline000415&title=mexicos-compartamos-likely-to-look-south-for-expansion

MicroCapital.org story, November 24, 2010: “MICROCAPITAL BRIEF: Eyeing International Expansion, Mexican Microfinance Bank Compartamos Banco Directs Shares to Holding Company”, http://www.microcapital.org/microcapital-brief-eyeing-international-expansion-mexican-microfinance-bank-compartamos-banco-directs-shares-to-holding-company/

MicroCapital’s Microfinance Universe profile: Compartamos Banco, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Compartamos+Banco

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