MICROCAPITAL BRIEF: Microfinance Bank Compartamos of Mexico Seeking Acquisitions in Microinsurance, Mobile Banking Arenas

Mr Fernando Alvarez Toca, chief executive officer of the Mexican microfinance bank Compartamos Banco, reportedly has said that the bank is seeking to venture into “alternative products” such as microinsurance and mobile banking during 2012 either “through acquisitions in different countries or through organic growth” [1]. As reported by MicroCapital in a story dated July 25, Compartamos acquired Peruvian microfinance institution Financiera Créditos Arequipa SA (Financiera Crear) and is also looking to expand in Latin American countries such as Columbia and Brazil through additional acquisitions. Mr Toca declined to name potential acquisition targets.

As of March 31, 2011, Compartamos reported total assets of MXN 12 billion (USD 1 billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million borrowers.

By Nisha Koul, Research Associate

About Compartamos Banco: Compartamos Banco is a microfinance bank based in Mexico that was founded in 1990. It offers group and individual loans in rural and urban areas. Compartamos Banco 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, 2011, reported total assets of MXN 12 billion (USD 1 billion), a total loan portfolio of MXN 10.7 billion (USD 920 million), return on assets (ROA) of 16.3 percent, return on equity (ROE) of 32.7 percent and approximately 2 million borrowers.

Sources and Additional Resources:

[1] Bloomberg News, “Mexico’s Compartamos May Seek More Acquisitions in 2012, CEO Alvarez Says,” http://www.bloomberg.com/news/2011-10-25/mexico-s-compartamos-may-seek-more-acquisitions-in-2012-ceo-alvarez-says.html

MicroCapital.org story, October 3, 2011, “MICROCAPITAL BRIEF: Mexican Microfinance Institution Banco Compartamos Issues $147m in Long-Term Debt,” https://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-banco-compartamos-issues-147m-in-long-term-debt/

MicroCapital.org story, July 25, 2011, “MICROCAPITAL BRIEF: Compartamos of Mexico Completes Acquisition of Majority Stake in Financiera Créditos Arequipa (Financiera Crear) of Peru,” https://www.microcapital.org/microcapital-brief-compartamos-of-mexico-completes-acquisition-of-majority-stake-in-financiera-creditos-arequipa-financiera-crear-of-peru/

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, January 24, 2011, “MICROCAPITAL BRIEF: Mexican Microfinance Bank Compartamos Banco Looks To Expand in Other Latin American Nations,” https://www.microcapital.org/microcapital-brief-mexican-microfinance-bank-compartamos-banco-looks-to-expand-in-other-latin-american-nations/

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/

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