Bladex Reports Third Quarter Net Income of $14.8 million, 32% Higher than Last Year, and Year-To-Date Net Income of $56.6 millio
October 22 2007 - 8:30AM
PR Newswire (US)
PANAMA CITY, Oct. 22 /PRNewswire-FirstCall/ -- Financial Highlights
Third Quarter 2007 vs. Third Quarter 2006: -- Net income increased
32% to $14.8 million, and Operating Income(1) increased 76% to
$15.2 million. -- The commercial portfolio grew 19% to $4.0
billion. Third Quarter 2007 vs. Second Quarter 2007: -- The 5%
increase in net interest income during the quarter was offset by
lower trading gains on proprietary asset management, resulting in
net income for the quarter of $14.8 million, 45% lower than the
$27.0 million reported in the second quarter. -- The average
commercial portfolio rose 5% to $4.0 billion, on disbursements of
$2.1 billion, the highest level since the fourth quarter of 2005.
-- The Bank's liquidity ratio (liquid assets / total assets)
strengthened from 5.4% to 7.3%; deposits grew 5% to $1.4 billion.
Overall, cost of funds decreased by 1 bp. -- The loan portfolio's
weighted average lending spreads over Libor increased 6 bps;
average lending spreads over Libor on new loans disbursed during
the quarter increased 19 bps. -- As of September 30, 2007, the Bank
had zero credits in non-accruing or past due status. Nine Months of
2007 vs. Nine Months of 2006: -- Net income amounted to $56.6
million, an increase of 54%. -- Operating income was $55.4 million,
an increase of 120%, driven by the Commercial Division's net
interest income, which increased 27%, and Treasury Division's net
revenues, which rose 803%. -- The Bank's efficiency ratio improved
from 44% to 32%. -- Annualized operating ROE improved from 5.8% to
12.3% -- The net interest revenue component of total revenues
decreased from 94% to 63%. (1) Operating income refers to net
income, excluding reversals (provisions) for credit losses, and
impairment on assets. Banco Latinoamericano de Exportaciones, S.A.
(NYSE:BLX) ("Bladex" or the "Bank") announced today its results for
the third quarter ended September 30, 2007. The table below depicts
selected key financial figures and ratios for the periods indicated
(the Bank's financial statements are prepared in accordance with
U.S. GAAP, and all figures are stated in U.S. dollars): Key
Financial Figures (US$ million, except percentages and per share
amounts) 9M06 9M07 3Q06 2Q07 3Q07 Net interest income $42.1 $51.4
$15.6 $16.7 $17.6 Operating income by business segment: Commercial
Division $25.1 $30.8 $9.7 $10.1 $10.8 Treasury Division $0.1 $24.6
$(1.1) $16.1 $4.5 Operating income $25.2 $55.4 $8.7 $26.1 $15.2 Net
income $36.8 $56.6 $11.2 $27.0 $14.8 EPS(1) $0.99 $1.56 $0.31 $0.74
$0.41 Book value per common share $15.55 $16.89 $15.55 $16.68
$16.89 Return on average equity ("ROE") p.a. 8.4% 12.6% 7.9% 18.0%
9.6% Tier 1 capital ratio 27.3% 21.4% 27.3% 21.2% 21.6% Net
interest margin 1.76% 1.72% 1.78% 1.70% 1.65% Liquid Assets(2)/
Total Assets 4.6% 7.3% 4.6% 5.4% 7.3% Liquid Assets(2)/ Total
Deposits 14.6% 22.3% 14.6% 16.3% 22.3% Total assets $3,521 $4,454
$3,521 $4,205 $4,454 Total stockholders' equity $565 $614 $565 $606
$614 (1) Earnings per share calculations are based on the average
number of shares outstanding during each period. (2) Excludes cash
balances in the proprietary asset management portfolio. Comments
from the Chief Executive Officer Jaime Rivera, Bladex's Chief
Executive Officer, stated the following regarding the quarter's
results: "Bladex is benefiting from underlying fundamentals in our
markets that remain strong. Trade in Latin America continues
growing at a healthy pace, with industry and financial trends in
the Region reflecting generally improving macroeconomic conditions.
Bladex's financial performance during the third quarter represents,
in my opinion, the strength of the Bank's business model and
franchise. Despite, working in the midst of significant volatility
in many sectors of the financial markets, Bladex was able to
achieve solid results across most of our businesses. The Commercial
Division capitalized on increasing lending spreads, rising credit
demand, an expanded client base, and solid portfolio quality, to
post a 7% quarterly improvement in operating income, placing it 23%
ahead of 2006 year-to-date results. While it is too early to
discern a trend, competitive pressures in the Region's offshore
credit business have generally eased, while pricing levels have
improved. The Treasury Division, coming off a record second
quarter, returned to a more normalized performance level,
contributing 29% of the quarter's operating income. Significantly,
in spite of market dislocations, the trading results from Bladex's
proprietary asset management activities were satisfactory. With
four consecutive quarters of positive trading results, we believe
the medium-term economics of the business have been established.
Significantly as well, in light of both market conditions and
strong loan growth, the Bank further strengthened its ample
liquidity position while maintaining stability in the cost of its
funding. We intend to carry an especially strong liquidity position
as long as volatile conditions in the market warrant it. While we
are satisfied with the success of the expansion and diversification
of the Bank's client base, as well as with the results of
transforming the Treasury Division into a revenue center, we remain
dissatisfied with both the trend and absolute level of fee income.
While Bladex has plans to offset the decline in the letter of
credit and guarantee business, we foresee the fees charged on third
party asset management, a business line we intend to deploy in the
coming months, as providing the most significant short-term source
of incremental fees. In summary terms, with net income through the
end of the third quarter running 54% ahead of 2006, Bladex believes
that it possesses the market and management momentum needed to
continue executing on all aspects of its strategy." Mr. Rivera,
concluded. SAFE HARBOR STATEMENT This press release contains
forward-looking statements of expected future developments. The
Bank wishes to ensure that such statements are accompanied by
meaningful cautionary statements pursuant to the safe harbor
established by the Private Securities Litigation Reform Act of
1995. The forward-looking statements in this press release refer to
the growth of the credit portfolio, including the trade portfolio,
the increase in the number of the Bank's corporate clients, the
positive trend of lending spreads, the increase in activities
engaged in by the Bank that are derived from the Bank's client
base, anticipated operating income and return on equity in future
periods, including income derived from the Treasury Division, the
improvement in the financial and performance strength of the Bank
and the progress the Bank is making. These forward-looking
statements reflect the expectations of the Bank's management and
are based on currently available data; however, actual experience
with respect to these factors is subject to future events and
uncertainties, which could materially impact the Bank's
expectations. Among the factors that can cause actual performance
and results to differ materially are as follows: the anticipated
growth of the Bank's credit portfolio; the continuation of the
Bank's preferred creditor status; the impact of increasing interest
rates and of improving macroeconomic environment in the Region on
the Bank's financial condition; the execution of the Bank's
strategies and initiatives, including its revenue diversification
strategy; the adequacy of the Bank's allowance for credit losses;
the need for additional provisions for credit losses; the Bank's
ability to achieve future growth, to reduce its liquidity levels
and increase its leverage; the Bank's ability to maintain its
investment-grade credit ratings; the availability and mix of future
sources of funding for the Bank's lending operations; potential
trading losses; the possibility of fraud; and the adequacy of the
Bank's sources of liquidity to replace large deposit withdrawals.
About Bladex Bladex is a supranational bank originally established
by the Central Banks of Latin American and Caribbean countries to
support trade finance in the Region. Based in Panama, its
shareholders include central banks and state-owned entities in 23
countries in the Region, as well as Latin American and
international commercial banks, along with institutional and retail
investors. Through September 30, 2007, Bladex had disbursed
accumulated credits of over $150 billion. Bladex is listed on the
New York Stock Exchange. Further investor information can be found
at http://www.blx.com/. A LONGER VERSION OF THIS PRESS RELEASE WITH
DETAILED INFORMATION WILL BE FILED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION, AND CAN BE OBTAINED FROM BLADEX
AT: Bladex, Head Office, Calle 50 y Aquilino de la Guardia, Panama
City, Panama Attention: Mr. Carlos Yap, Chief Financial Officer
Tel. No. (507) 210-8563, e-mail: , -or- Investor Relations Firm
i-advize Corporate Communications, Inc. Mrs. Melanie Carpenter /
Mr. Peter Majeski Tel: (212) 406-3690, e-mail: Conference Call
Information There will be a conference call to discuss the Bank's
quarterly results on Monday, October 22, 2007, at 11:00 a.m., New
York City time (Eastern Time). For those interested in
participating, please dial (888) 335-5539 in the United States or,
if outside the United States, (973) 582-2857. Participants should
use conference ID# 9261663, and dial in five minutes before the
call is set to begin. There will also be a live audio webcast of
the conference at http://www.blx.com/. The conference call will
become available for review on Conference Replay one hour after its
conclusion, and will remain available through October 29, 2007.
Please dial (877) 519-4471 or (973) 341-3080, and follow the
instructions. The Conference ID# for the replayed call is 9261663.
DATASOURCE: Bladex CONTACT: Mr. Carlos Yap, Chief Financial Officer
of Bladex, +1-507-210-8563, ; or Investor Relations, Mrs. Melanie
Carpenter or Mr. Peter Majeski, +1-212-406-3690, , both of i-advize
Corporate Communications, Inc., for Bladex Web site:
http://www.blx.com/
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