Compartamos Banco – Mexican microfinance company reports 2Q10 results

Banco Compartamos, the leading Mexican microfinance bank today announced its non-audited financial results for the second quarter ended June 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.( 1 INR = 270 Mexican Peso’s approximately)banco compartamos results

Highlights for 2Q10

  • The number of active clients in 2Q10 reached 1,625,151, a 23.4% increase compared to 2Q09.
  • The total loan portfolio in 2Q10 reached Ps. 8,529 million, a 26.7% increase compared to 2Q09.
  • Net income for 2Q10 reached Ps. 477 million, a 45.9% increase compared to 2Q09.
  • Capitalization Ratio (ICAP) stood at 42.6% an improvement from the 41.0% reported in 2Q09, while ROAE was 42.3%, an improvement when compared to the 41.3% reported in 2Q09.
  • In 2Q10, the Company added 11 service offices, ending the quarter with 345 service offices in the network.
  • For 2Q10, the total number of employees grew by 727 people, reaching 8,591 employees, or 1,461 more than 2Q09.
  • Efficiency ratio for 2Q10 was 49.5%, an improvement compared to the 56.7% reported in 2Q09.
  • Non-performing loans decreased to 2.19% in 2Q10, compared to 2.26% in 2Q09.
  • Fitch Ratings affirmed Compartamos’ national long and short-term credit ratings, ‘AA-‘(mex) and ‘F1+'(mex), respectively, with a ‘Stable’ outlook.
  • The Board of Directors appointed Mr. Patricio Diez de Bonilla, Financing and Treasury Officer, as Compartamos Banco’s Chief Financial Officer.

Comments from the Chief Executive Officer

Mr. Fernando Alvarez Toca, Compartamos’ Chief Executive Officer, commented on the results: “In-line with the Bank’s expectations, we saw solid growth in the business during the first half of 2010. We continue to create social value by reaching over 1.6 million customers nationwide. To serve them with excellence, Compartamos now employs 8,591 people throughout Mexico. In addition, we continue to expand the Bank’s footprint. During the second quarter, Compartamos opened 11 service offices for a total of 345 service offices.

Compartamos’ loan portfolio grew at a healthy 26.7% pace to total Ps. 8,529 million. What is most encouraging is the improvement in asset quality; the NPL ratio decreased to 2.19% in 2Q10. Especially noteworthy, Crédito Mujer, the Bank’s core product, which represented 74.7% of the portfolio, improved its NPL ratio to 0.96%, ending the deterioration of the previous two quarters. These results are a consequence of the sales force’s strong execution, in addition to better macroeconomic conditions.

During the second quarter, Compartamos generated human value, contributing donations of more than Ps. 6.6 million to various initiatives, such as education for students interested in finance as well as intensive English classes given at diverse Mexican schools and universities. The Bank will continue to seek ways to make a difference in the communities that we serve, and we are grateful for the support of our clients, employees and stockholders.”

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