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Mexican microfinance bank Compartamos posts 31% rise in net profit

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July 22, 2009: Banco Compartamos, the Mexican microfinance bank, on Tuesday announced its second quarter results which show net profit rose 31.3% totaling 327 million pesos ($24.7 million), up from 249 million pesos recorded in the corresponding quarter of 2008, in a statement filed with the Mexican Stock Exchange.
The bank’s active clients reached 1,317,472 or a 40.1% increase compared to 2008 and its total loan portfolio reached 6,729 million pesos or a 40.4% increase compared to second quarter in 2008.
Earnings per share or EPS, excluding shares repurchased, reached 0.79 peso versus 0.58 peso in second quarter of 2008, representing 35.2% growth. Equity to assets was at 40.1%, while ROAE reached 41.3%.
Carlos Danel, the Bank’s Executive Vice President, said despite a challenging macroeconomic environment, the bank said it achieved 40.4% growth in the total loan portfolio driven by a 40.1% growth in the number of active clients being served with 1,841 more employees than a year ago. “Another important aspect of our strategy is to improve efficiency; to achieve this, we implemented a key measure of using our existing infrastructure, therefore, during 2Q09, we did not grow the number of offices, thus focusing on controlling costs. This was not only evidence of our commitment to gain efficiencies but also to grow in a manner that is aggressive yet controlled,” he said.
Tha bank’s statement said both rating agencies, Standard & Poor’s and Fitch Ratings, affirmed counterparty credit ratings of Compartamos at ‘mxAA-’ / ‘mxA-1′ and ‘AA-(mex)’ / ‘F1+(mex)’, respectively. The outlook remains stable and the total number of employees reached 7,130, a 34.8% growth.
The ratio of non-performing loans rose to 2.26%, from 1.38% a year earlier which was better than the general banking sector. Danel was confident to reach 2009 goals too. “With half of the year behind us, we are on track to fulfill our goals for 2009,” he said.
Earlier this week, the bank raised $500 million pesos through the public issuance of bonds in the local debt capital markets for a tenor of 3 years. The bonds obtained a credit rating from Standard & Poors of “mxAA-” and “AA- (mex)” from Fitch Ratings.
Banco Compartamos, S.A., is the largest lender to microbusiness owners in Latin America. Established in 1990 and headquartered in Mexico City, Compartamos provides small loans to low-income individuals and business owners, such as craft manufacturers, food vendors and other small businesses. Banco Compartamos’ shares began trading on the Mexican Stock Exchange on April 25, 2007. It is in the process of establishing a 6-billion pesos bond program to issue long-term debt over the next five years.

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