Mexican microfinance lender Compartamos SAB (CMPRF, COMPARC.MX) said Monday that its third quarter net profit rose 10% this year but equaled last year's results due to recent heavy investment that has limited its profit growth. "The holding company is in a period of heavy investment," said Fernando Alvarez, chief executive of the Compartamos Banco unit in a phone interview from Mexico City. The chief executive added that the holding company opted to invest in software and other operational expenses as part of a strategy to boost future income.
"The holding company is in a period of heavy investment," Alvarez said, noting that the company is also busy consolidating information from new markets and learning the ropes in different countries and currencies.
The microfinance lender has also opened a unit in Guatemala. The Guatemalan unit, which Compartamos is developing from scratch, is growing faster than the company anticipated or would even like, Alvarez said. The unit attracted close to 10,000 clients during the quarter, with payment on all loans current.
"That the market is receiving us very well inspires us to keep growing in Guatemala and continue exploring options in other countries," he said.
The holding company's net interest income -- the difference between revenue generated by interest-bearing assets and the cost of servicing liabilities -- rose 35% on the year during the quarter to MXN2.02 billion.
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