Mexican Microfinance Compartamos Banco reports increase in Net income in 1Q10

Microfinance Focus, April 21, 2010 : Banco Compartamos, S.A. I.B.M. (“Compartamos” or “the Bank”) (BMV: COMPART), a Mexican bank specialized in microfinance announced its non-audited financial results for the first quarter ended March 31, 2010. According to the results,

• Net income for 1Q10 reached Ps. 400 million, a 38.9% increase compared to 1Q09.
• The number of active clients in 1Q10 reached 1,546,059, a 28.8% increase compared to 1Q09.
• The total loan portfolio in 1Q10 reached Ps. 8,454 million, a 34.1% increase compared to 1Q09.
• Capitalization Ratio stood at 43.1%; while ROAE was 37.6%, similar to the level reported in 1Q09.
• In 1Q10, the Company reported to add 9 service offices, ending the quarter with 334 service offices in the network.
• For 1Q10, the total number of employees grew by 500 people, reaching 7,864 employees, or 1,093 more than in 1Q09. Efficiency ratio for 1Q10 ended at 50.4%, an improvement compared to the 55.0% reported in 1Q09.
• The ratio of non-performing loans to total loans reached 2.40% in 1Q10, compared to 1.92% in 1Q09 and 2.43% in 4Q09.

Fernando Alvarez Toca, Compartamos’ Chief Executive Officer, commented on the results: “The first quarter has been encouraging for us. We observed strong demand from existing and new clients; therefore we were able to maintain and even improve strong financial performance indicators. The loan portfolio surpassed Ps. 8.4 billion, to cover 1,546,059 clients who demand, repay and renew loans with Compartamos. We are grateful for their support and loyalty and will remain committed to seeking new and better ways of serving clients and maintain long-term relationships with them.”

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