Compartamos Banco, a Mexican microfinance bank, recently announced the initiation of microfinance operations in Guatemala through its subsidiary, Compartamos SA (Guatemala) . In Guatemala, Compartamos will initially operate through three offices in the departments of Quetzaltenango, Retalhuleu and Suchitepequez. Compartamos Banco’s move into Guatemala occurs soon after an expansion into Peru, where the Mexican MFI recently purchased a majority stake in Peruvian microlender Financiera Creditos Arequipa SA (Financiera Crear) .
In an April interview with US-based newspaper The Wall Street Journal, Compartamos’ CFO Patricio Diez had expressed plans to enter the Guatemalan market before the end of the year, as was reported by MicroCapital at the time .
Financial information on the investment in Guatemala is not available, but Compartamos reported total assets of MXN 12 billion (USD 1 billion) and a total loan portfolio of MXN 10.7 billion (USD 920 million) as of March 31, 2011.
By Rohan Trivedi, Research Associate
About Compartamos Banco:
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, 2011, has a total loan portfolio of MXN 10.7 billion (the equivalent of USD 920 million) and assets of MXN 12 billion (USD 1 billion).
About Financiera Creditos Arequipa SA (Financiera Crear):
Financiera Creditos Arequipa SA (Financiera Crear) is a Peruvian microfinance institution that was founded in 1998 by the NGO “Habitat Arequipa Siglo XXI”. As of the end of 2010, Financiera Crear reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 151 million, a gross loan portfolio of USD 130 million, return on assets (ROA) of 4.37 percent, return on equity of 32.1 percent and 87,300 borrowers.
Sources and Additional Resources:
Compartamos Press Release: “Compartamos, S.A.B. de C.V. Announces Initiation of Operations in Guatemala via New Subsidiary”, http://www.businesswire.com/news/home/20110606006612/en/Compartamos-S.A.B.-de-C.V.-Announces-Initiation-Operations
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 in 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, 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
MicroCapital Universe Profile: Financiera Creditos Arequipa SA (Financiera Crear), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Creditos+Arequipa+SA+%28Financiera+Crear%29
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