MICROCAPITAL BRIEF: Peru’s Grupo ACP Receives Approval to Convert Microfinance Institution Forjadores de Negocios of Mexico into Banco Forjadores

Grupo Accion Comunitaria del Peru (ACP) Inversiones y Desarrollo, a nonprofit holding company based in Peru, recently received the approval of Mexican banking regulators to convert Forjadores de Negocios SA, its Mexican microfinance institution (MFI), into Banco Forjadores, which is expected to begin operations in the first quarter of 2013. As part of the conversion, Forjadores will shift from lending primarily to female entrepreneurs to marketing its microloans to the entire population. The president of Grupo ACP, Luis Felipe Derteano, reportedly stated that as a bank Banco Forjadores will be able to offer additional products. MFIs often convert to bank status in order to offer deposit services.

Grupo ACP, which operates in 10 Latin American countries, reports total assets of PEN 4.67 billion (USD 1.1 billion) as of 2010, the date of its latest available annual report. Among its holdings is Mibanco, a Peruvian microfinance bank with assets of USD 1.9 billion. Grupo ACP holds a 60-percent stake in Mibanco. Forjadores de Negocios, which was founded in 2005, is based in Mexico City and primarily serves poor women. As of 2011, it reports total assets of USD 34.3 million, a gross loan portfolio of USD 14.4 million with 55,147 active borrowers, return on assets (ROA) of 0.85 percent and return on equity (ROE) of 3.73 percent. Forjadores de Negocios does not accept deposits as of 2012.

By Sarah Benali, Research Associate

About Banco Forjadores (Forjadores de Negocios)
Founded in 2005 in Mexico City, Forjadores de Negocios is a microfinance institution (MFI) that predominantly serves poor women. In 2006, it became an unregulated multipurpose financial entity allowing the organization to offer any type of credit or leasing product. As of 2011, Forjadores de Negocios reported USD 34.3 million in total assets, a gross loan portfolio of USD 14.4 million with 55,147 active borrowers, return on assets (ROA) of 0.85 percent and return on equity (ROE) of 3.73 percent. As of 2012, Forjadores de Negocios does not accept deposits, but had received approval from Mexican banking regulators to convert into Banco Forjadores, with operations expected to transform in early 2013.

About Grupo ACP
Established in 1969 as Accion Comunitaria del Peru (ACP), Grupo ACP is a Peruvian non-profit holding company focusing on social inclusion for low-income households. Grupo ACP owns majority stakes in 23 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in ten Latin American countries: Argentina, Bolivia, Brazil, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru and Uruguay. Grupo ACP reported in its 2010 financial statements total assets of PEN 4.67 billion (USD 1.1 billion). Among its holdings is Mibanco, a Peruvian microfinance bank that reports total assets of USD 1.9 billion as of 2011.

About Mibanco
Mibanco, created in 1998, is a private Peruvian bank that aims to assist the development of micro- and small enterprises (MSEs). Its strategy is to target markets “where demand for micro-credit is highest and supply weakest”, mainly focusing on the Lima and Callao area. Mibanco offers both credit and savings products and employs both individual and solidarity group lending methodologies. Loans are offered for working capital and fixed asset purchases in sizes ranging from the equivalent of USD 100 to USD 100,000, with loan terms of 3 to 60 months and interest rates 25 percent to 50 percent per year. As of 2011, Mibanco reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 1.9 billion, a gross loan portfolio of USD 1.6 billion, return on assets (ROA) of 1.91 percent, return on equity (ROE) of 20.47 percent and 435,531 active borrowers. Mibanco also reported total deposits of USD 1.4 billion and 570,782 depositors.

Sources and Additional Resources:

Bloomberg News: “Peru’s Grupo ACP Seeks to Be Top Microfinance Leader in Mexico,” by John Quigley, September 2012, http://www.bloomberg.com/news/2012-09-19/peru-s-grupo-acp-seeks-to-be-top-microfinance-lender-in-mexico.html

Gestion.pe Story: “Forjadores de Negovcios del Grupo ACP se transformara en banco en Mexico,” September, 2012, http://gestion.pe/empresas/forjadores-negocios-grupo-acp-se-transformara-banco-mexico-2012669

MicroCapital.org Story: “MICROCAPITAL BRIEF: Fitch Improves Outlook to Positive for Grupo ACP, Owner of Mibanco of Peru and Forjadores of Mexico,” March 21, 2012,https://www.microcapital.org/microcapital-brief-fitch-improves-outlook-to-positive-for-grupo-acp-owner-of-mibanco-of-peru-and-forjadores-of-mexico/

MicroCapital Universe Profile: Grupo ACP
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grupo+ACP+Inversiones+y+Desarrollo+%28Grupo+ACP%29

MicroCapital Universe Profile: Mibanco
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco

MicroCapital Universe Profile: Banco Forjadores (Forjadores de Negocios)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Forjadores+%28Forjadores+de+Negocios%29

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