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Mexico’s Compartamos Sees More Growth In Micro-Lending – WSJ.com

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MEXICO CITY (Dow Jones)–Mexico’s Compartamos SAB (CMPRF, COMPARC.MX) said Wednesday its net profit expanded 12% on the year in the first quarter as the microfinance lender grew its loan portfolio and attracted new clients.

Chief Financial Officer Patricio Diez told Dow Jones Newswires that the company is “very satisfied” with the results.

Compartamos grew its loan portfolio by 40% to 14.88 billion pesos ($1.13 billion) while expanding its client base by 23% to 2.47 million. Its net profit came to MXN503 million. In addition to Mexico, where 95% of Compartamos’ clients reside, the lender is also active in Guatemala and Peru.

Operating expenses rose 43%, to MXN1.18 billion, as the company opened 35 service branches, invested in new technology, added employees to service clients and spent more on advertising.

Diez said Compartamos sees a highly competitive environment among lenders to the low-income market segment, but not from large banks. “We have to always be focused on better products and services,” he said.

Compartamos has long aimed to loan in rural areas and to women, but is now beefing up its capabilities in urban and semiurban areas. The diversification into new markets and products has driven the lender’s rate of nonperforming loans higher, to 2.86% in March from 2.65% at end-2011 and 2.01% for first quarter 2011.

The vast majority of the lender’s clients in Mexico are women, whereas in Peru the split is more even between the two sexes, Diez said. Demand for credit in Guatemala is similar to the market Compartamos has in Mexico, mostly rural and mostly female.

Compartamos Profit Beats Estimates as Loan Portfolio Expands-Bloomberg

By Jonathan J. Levin – Apr 25, 2012 3:00 PM CT

Compartamos SAB (COMPARC*), the operator of microfinance companies in Mexico and Peru, posted first-quarter profit that beat analyst expectations.

Net income climbed 14.3 percent to 497 million pesos ($37.8 million) in the first three months of the year, the Mexico City- based company said today in an e-mailed statement. Banco Santander SA had projected profit would total 475.2 million pesos, according to an April 24 research note.

Outstanding loans rose 40 percent to 14.9 billion pesos, the company said.

Compartamos shares fell 2.1 percent to 15.35 pesos in Mexico City trading before release of the report.


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