Compartamos Banco Reports 3Q10 Results – 40% ROE, 2% NPL, and $39mm net income

Written by Patrick Fisher October 22, 2010 0 comment

October 21, 2010

MEXICO CITY–(BUSINESS WIRE)– Banco Compartamos, S.A. I.B.M. (“Compartamos” or “the Bank”) (BMV: COMPART), the leading Mexican microfinance bank today announced its non-audited financial results for the third quarter ended September 30, 2010. All figures were prepared in accordance with the requirements of the Comisión Nacional Bancaria y de Valores (CNBV) and are expressed in nominal pesos.

Highlights for 3Q10

  • The number of active clients reached 1,751,821, a 23.1% increase compared to 3Q09.
  • The total loan portfolio reached Ps. 8,784 million, a 24.2% increase compared to 3Q09.
  • Net income reached Ps. 491 million, a 36.8% increase compared to 3Q09.
  • Capitalization Ratio stood at 44.8%, an improvement from the 41.6% reported in 3Q09.
  • ROAE was 40.9%, a decrease when compared to the 42.6% reported in 3Q09.
  • Non-performing loans decreased to 1.97% in 3Q10, compared to 2.26% in 3Q09.
  • The Company added 7 service offices, ending the quarter with 352 service offices in the network.
  • The total number of employees grew by 536 people, reaching 9,127 employees; 1,863 more than in 3Q09.
  • Efficiency ratio for 3Q10 was 51.3%, an improvement compared to the 55.0% reported in 3Q09.

Comments from the Chief Executive Officer

Mr. Fernando Alvarez Toca, Compartamos’ Chief Executive Officer, stated: “Compartamos continues to grow across its most important indicators; we grew our client base by 23.1% to over 1.7 million active clients, which resulted in a 24.2% growth in the loan portfolio. Additionally, interest income grew 22.5% to over Ps. 1.5 billion and net income rose over 36% for the quarter. Finally, and to better serve customers, we added 7 service offices and 536 employees, surpassing 9 thousand employees companywide.

Despite the rapid growth, our focus on asset quality has paid off. NPL’s decreased to 1.97%, a twelve-month low; this is a result of close customer loan monitoring as well as our commitment to prevent their over indebtedness. As has always been part of Compartamos’ strategy, efficiency continues to thrive. The efficiency ratio was 51.3%, down from 55.0% in 3Q09. The internal cost-control culture is now firmly in place and has enabled us to keep the level of cost increases at a slower pace than the actual growth experienced at the Bank.

Generating social value, Compartamos donated over Ps. 2 million during 3Q10 to various community initiatives, including: computer equipment, educational grants, financial literature and conferences, among others. We are proud to aid our local communities in upgrading the standard of life for its constituents and it remains a core part of our mission.”