Mexican bank Compartamos profit up despite crisis

MEXICO CITY, Feb 25 (Reuters) - Compartamos, a Mexican bank that makes small loans to family businesses, posted a 53 percent jump in fourth-quarter net profit on Wednesday and said it expected to keep expanding despite the slumping economy.

Compartamos (COMPARTO.MX) reported net profit of 346 million pesos ($25 million) for the quarter.

Compartamos normally lends to one- or two-person businesses. They typically borrow around $450, at a 75 percent annual interest rate, to buy supplies or capital, such as a sewing machine or tables.

"We are aware of the global economic challenges that we will face in 2009; however, we expect that Compartamos will experience yet another year of growth," Chief Executive Carlos Danel said in a statement.

Lending in the fourth quarter rose 14 percent over the prior quarter, bringing its loan portfolio to 5.7 billion pesos, tiny compared with traditional banks in Mexico like BBVA (BBVA.MC)(BBVA.MX) and Citigroup (C.N).

"We have identified Compartamos as the best investment option to take advantage of the enormous potential of the unbanked population in Mexico," Banamex said in a report ahead of the company's earnings.

Compartamos shares were up 3.05 percent to 27.70 pesos in midday trading. ($1 = 13.815 per dollar at end of December) (Reporting by Noel Randewich; Editing by Lisa Von Ahn)