Mexican microlender Financiera Independencia had a rough first quarter, seeing earnings drop 36.6% year-on-year due to rising costs.
The non-bank lender - which focuses on unsecured consumer microloans to low-income borrowers - earned 90mn pesos (US$7.63mn) in the first quarter.
Its ROE dropped to 12.1%, from 24.4% in the year-ago quarter.
The drop in earnings seemed to be caused largely by a rise in expenses. Administration and personnel costs rose by 59.6mn pesos - or 10.5% - compared with 1Q10.
That contrasts with modest expansion of 2.6% in the lender's financial margin.
Credit growth was strong for the lender, which saw its portfolio up by 21.4% year-on-year as of the end of the first quarter, to 6.56bn pesos.