MICROCAPITAL BRIEF: Mexican Microfinance Provider Banco Compartamos Reports Q2 Earnings, Net Profit Growth of 17% to $46m

Banco Compartamos, a Mexican microfinance bank, reported net income growth of 17 percent to MXN 558 million (USD 46 million) and net operating income growth of 20.2 percent to MXN 787 million (USD 65 million) for the second quarter of 2011, as compared with the same period in 2010. Over the last year, Compartamos’ client base has grown by 30.1 percent to 2.1 million borrowers, while the number of employees rose by 42 percent to 12,230 people. The additional investment in staff resulted in a 39.1 percent increase in operating expenses, to MXN 882 million (USD 73 million).

Compared to the second quarter of 2010, Compartamos boosted lending by 36.3 percent and grew its total loan portfolio to MXN 11.6 billion (USD 962 million). As of June 30, 2011, Compartamos reports total assets of MXN 12.9 billion (USD 1 billion) [1].

MicroCapital reported in June 2011 that Compartamos had begun microcredit operations in Guatemala through a subsidiary, Compartamos SA (Guatemala). In addition, Compartamos continues to work in Peru through part ownership of lender Financiera Creditos Arequipa SA (Financiera Crear) [2].

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. As of March 31, 2011, Compartamos reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 1 billion, a gross loan portfolio of USD 894 million, return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million active borrowers.

Sources and Additional Resources:

[1] Compartamos Banco Press Release: “Banco Compartamos Reports 2Q11 Results”, http://www.compartamos.com/wps/wcm/connect/?MOD=PDMProxy&TYPE=personalization&ID=NONE&KEY=NONE&LIBRARY=%2FcontentRoot%2Ficm%3Alibraries&FOLDER

[2] MicroCapital.org story, June 9, 2011: “MICROCAPITAL BRIEF: Compartamos Banco of Mexico Announces Commencement of Lending Operations in Guatemala Through Subsidiary”, https://www.microcapital.org/microcapital-brief-compartamos-banco-of-mexico-announces-commencement-of-lending-operations-in-guatemala-through-subsidiary/

MicroCapital.org story, April 27, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Banco Compartamos Reports First Quarter Profits Up 14% to $39m, Plans to Expand to Guatemala”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-mfi-banco-compartamos-reports-first-quarter-profits-up-14-to-39m-plans-to-expand-to-guatemala/

MicroCapital.org story, March 29, 2011: “MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco to Acquire 82% Stake in Peruvian Lender Financiero Creditos Arequipa SA”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-mfi-compartamos-banco-to-acquire-82-stake-in-peruvian-lender-financiera-creditos-arequipa-sa/

MicroCapital.org story, February 25, 2011: “MICROCAPITAL BRIEF: Banco Compartamos of Mexico Reports Flat Net Profit For Q4 as Staffing Level Rises 33% in One Year”, https://www.microcapital.org/microcapital-brief-banco-compartamos-of-mexico-reports-flat-net-profit-for-q4-as-staffing-level-rises-33-in-one-year/

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

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: