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Mexico's Banco Compartamos, the largest microlender in Latin America, should continue to enjoy solid growth despite the country's decelerating economy, according to analysts at investment bank Barclays Capital.
Compartamos' focus on lower-income segments make it relatively sheltered from today's volatile financial and labor markets.
"Arguably, its microlending model has proven quite defensive and still very profitable in the aftermath of the 2008-2009 crisis, by dissociating from the 'real economy' slowdown," the analysts said in a research note. While Mexico's GDP dropped 6% in 2009, Compartamos' earnings were up 33% and ROE was more than 40%, they noted.