MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Banco Compartamos Releases Non-Audited Financial Results for Second Quarter 2010 Reporting Significant Growth

Mexican microfinance institution (MFI), Banco Compartamos, has announced its non-audited financial results for the quarter ended June 30, 2010 (2Q10). All figures were reportedly prepared in accordance with the requirements of the Comision Nacional Bancaria y de Valores (CNBV) and are expressed in nominal pesos.

Highlights for 2Q10:

– The number of active clients in 2Q10 reached 1,625,151, a 23.4 percent increase compared to 2Q09.
– The total loan portfolio in 2Q10 reached MXN 8.5 billion (USD 673 million), a 26.7 percent increase compared to 2Q09.
– Net income for 2Q10 reached MXN 477 million (USD 38 million), a 45.9 percent increase compared to 2Q09.
– Capitalization ratio (ICAP) stood at 42.6 percent, an improvement from the 41.0 percent reported in 2Q09, while ROAE was 42.3 percent, an improvement over the 41.3 percent reported in 2Q09.
– In 2Q10, the Company added 11 service offices, ending the quarter with 345 service offices in the network.
– For 2Q10, the total number of employees grew by 727 people, reaching 8,591 employees, or 1,461 more than 2Q09.
– The efficiency ratio for 2Q10 was 49.5 percent
– Non-performing loans decreased to 2.19 percent in 2Q10, compared to 2.26 percent in 2Q09.
– Fitch Ratings affirmed Compartamos’ national long- and short-term credit ratings, ‘AA-‘(mex) and ‘F1+'(mex), respectively, with a ‘Stable’ outlook.
– The Board of Directors appointed Mr. Patricio Diez de Bonilla, Financing and Treasury Officer, as Compartamos Chief Financial Officer.

Fernando Alvarez Toca, Compartamos Chief Executive Officer, commented on the results “In-line with the Bank’s expectations, we saw solid growth in the business during the first half of 2010. Compartamos’ loan portfolio grew at a healthy 26.7 percent pace to total MXN 8,529 million (USD 673 million). What is most encouraging is the improvement in asset quality; the NPL [nonperforming loan] ratio decreased to 2.19 percent in 2Q10. Especially noteworthy, Credito Mujer, the Bank’s core product, which represented 74.7 percent of the portfolio, improved its NPL ratio to 0.96 percent, ending the deterioration of the previous two quarters. These results are a consequence of the sales force’s strong execution, in addition to better macroeconomic conditions.”

About Banco Compartamos:

Banco Compartamos is a microfinance bank based in Mexico that was founded in 1990. It offers both group and individual loans in rural and urban areas. Compartamos provides small loans to low-income Mexican individuals and business owners, such as craft manufacturers, food vendors and other small businesses. It also offers voluntary savings, insurance and loans specifically for home improvement. 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, and, as of June 30, 2010, has a total loan portfolio of MXN 8.5 billion (USD 673 million).

By Matthew Fox, Research Assistant

Sources and Additional Resources

Banco Compartamos: Compartamos Reporte 2Q10: http://www.compartamos.com/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os_gADwNLcw93IwP_UHcXAyNjR6cgIy9TY29jM_1wkA6zeAMcwNFA388jPzdVPzg1T78gO68cANXVfA8!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfUEgwOTdIRzIwT1VHRDAyM0FCUjJKNTNDUTI!/?mosHist=1

MicroCapital Universe: Banco Compartamos: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Compartamos+Banco

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