Banco Compartamos, a Mexican microfinance bank, reported net income growth of 14.8 percent to MXN 459 million (USD 39.5 million) and net operating income growth of 19.2 percent to MXN 702 million (USD 60.4 million) for the first quarter of 2011, as compared with the same period in 2010. Increased revenues came primarily from delinquency fees and voluntary life insurance premiums, resulting in growth of 21.6 percent over the first quarter of 2010. Operating expenses in the same period rose by 37.9 percent to MXN 823 million (USD 69 million) during the first quarter of 2011. More than half of the increase in expenditure is attributable to employee-related costs, including additional salaries, bonuses and training for the 3,000 staff that Compartamos added over the last year, taking the total workforce to 10,878 employees .
In the fourth quarter of 2010, Compartamos reported flat performance but expected to reap future benefits from the addition of new products like microinsurance and home-improvement loans . Over the twelve months ending March 2011, the bank expanded its outreach by 30.5 percent to 2 million clients. The total loan portfolio increased by 26.1 percent to MXN 10.7 billion (USD 920 million). The share of nonperforming loans dropped from 2.40 percent to 2.01 percent, supported by strength in the bank’s core group loan product. Although the loan portfolio grew by more than MXN 2 billion (USD 172 million), year-on-year write offs remained constant at MXN 63 million (USD 5.4 million) for the quarter .
Compartamos is currently negotiating a deal to acquire a majority stake in Financiera Creditos Arequipa SA, a Peruvian microfinance institution (MFI) as was reported by MicroCapital in March . In a telephone interview with The Wall Street Journal, Compartamos’ Chief Financial Officer Patricio Diez expressed plans to begin operations in Guatemala before the end of 2011 .
By Rohan Trivedi, 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 and, as of March 31, 2010, has a total loan portfolio of MXN 10.7 billion (the equivalent of USD 920 million).
Sources and Additional Resources:
 Wall Street Journal Online: “Mexico’s Compartamos 1Q Net Profit Rose 14.8% on Higher Fees”, http://online.wsj.com/article/BT-CO-20110425-706115.html
 MicroCapital.org article, February 25, 2011: “MICROCAPITAL BRIEF: Banco Compartamos of Mexico Reports Flat Net Profit For Q4 as Staffing Level Rises 33% in One Year”, http://www.microcapital.org/microcapital-brief-banco-compartamos-of-mexico-reports-flat-net-profit-for-q4-as-staffing-level-rises-33-in-one-year/
 MicroCapital.org article, March 29, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco to Acquire 82% Stake in Peruvian Lender Financiero Creditos Arequipa SA”, http://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-mfi-compartamos-banco-to-acquire-82-stake-in-peruvian-lender-financiera-creditos-arequipa-sa/
Compartamos Banco Press Release: “Compartamos Banco Reports 1Q11 Results”, http://www.compartamos.com/wps/wcm/connect/?MOD=PDMProxy&TYPE=personalization&ID=NONE&KEY=NONE&LIBRARY=%2FcontentRoot%2Ficm%3Alibraries&FOLDER=%2FRelacion+con+Inversionistas%2FInfo+Gral+para+Inversionistas%2FInformaci?n+General+En%2F&DOC_NAME=%2FcontentRoot%2Ficm%3Alibraries%2FRelacion+con+Inversionistas%2FInfo+Gral+para+Inversionistas%2FInformaci?n+General+En%2FCompartamos_Reporte_1Q11_ENG__graphics__V8.pdf&VERSION_NAME=NONE&VERSION_DATE=NONE&IGNORE_CACHE=false&CONVERT=text/html&MUST_CONVERT=false
MicroCapital.org article, January 24, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Bank Compartamos Banco Looks to Expand in Other Latin American Nations”, http://www.microcapital.org/microcapital-brief-mexican-microfinance-bank-compartamos-banco-looks-to-expand-in-other-latin-american-nations/
MicroCapital Universe Profile: Banco Compartamos, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Compartamos+Banco
Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/