SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereto
duly authorized.
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October
22, 2007
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Banco Latinoamericano de Exportaciones,
S.A.
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By:
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/s/ Pedro
Toll
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Name:
Pedro Toll
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Title:
Deputy Manager
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FOR
IMMEDIATE RELEASE
Bladex
Reports Third Quarter Net Income of $14.8 million, 32% higher than last year,
and
Year-to-date Net Income of $56.6 million, 54% higher than last year;
liquidity
strengthens
Financial
Highlights
Third
Quarter 2007 vs. Third Quarter 2006:
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·
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Net
income increased 32% to $14.8 million, and Operating Income
(1)
increased 76% to $15.2 million.
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·
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The
commercial portfolio grew 19% to $4.0
billion.
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Third
Quarter 2007 vs. Second Quarter 2007:
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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.
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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.
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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.
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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.
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As
of September 30, 2007, the Bank had zero credits in non-accruing
or past
due status.
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Nine
Months of 2007 vs. Nine Months of 2006:
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Net
income amounted to $56.6 million, an increase of
54%.
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Operating
income was $55.4 million, an increase of 120%, driven by the Commercial
Division’s net interest income, which increased 27%, and Treasury
Division’s net revenues, which rose 803%.
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The
Bank’s efficiency ratio improved from 44% to
32%.
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Annualized
operating ROE improved from 5.8% to
12.3%
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The
net interest revenue component of total revenues decreased from 94%
to
63%.
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(1)
Operating income refers to net income, excluding reversals (provisions) for
credit losses, and impairment on assets.
Panama
City, Republic of Panama, October 22, 2007
-
Banco
Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”)
announced today its results for the third quarter ended September 30, 2007.
The
table
below depicts selected key financial figures and ratios for the periods
indicated (the Bank’s financial statements are prepared in accordance with U.S.
GAAP, and all figures are stated in U.S. dollars):
Key
Financial Figures
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(US$
million, except percentages and per share amounts)
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9M06
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9M07
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3Q06
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2Q07
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3Q07
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Net
interest income
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$
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42.1
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$
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51.4
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$
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15.6
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$
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16.7
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$
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17.6
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Operating
income by business segment:
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Commercial
Division
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$
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25.1
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$
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30.8
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$
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9.7
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$
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10.1
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$
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10.8
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Treasury
Division
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$
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0.1
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$
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24.6
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$
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(1.1
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)
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$
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16.1
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$
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4.5
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Operating
income
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$
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25.2
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$
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55.4
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$
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8.7
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$
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26.1
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$
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15.2
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Net
income
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$
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36.8
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$
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56.6
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$
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11.2
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$
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27.0
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$
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14.8
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EPS
(1)
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$
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0.99
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$
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1.56
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$
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0.31
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$
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0.74
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$
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0.41
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Book
value per common share
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$
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15.55
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$
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16.89
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$
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15.55
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$
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16.68
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$
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16.89
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Return
on average equity (“ROE”) p.a.
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8.4
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%
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12.6
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%
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7.9
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%
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18.0
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%
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9.6
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%
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Tier
1 capital ratio
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27.3
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%
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21.4
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%
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27.3
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%
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21.2
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%
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21.6
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%
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Net
interest margin
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1.76
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%
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1.72
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%
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1.78
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%
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1.70
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%
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1.65
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%
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Liquid
Assets
(2)
/
Total Assets
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4.6
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%
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7.3
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%
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4.6
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%
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5.4
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%
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7.3
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%
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Liquid
Assets
(2)
/
Total Deposits
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14.6
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%
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22.3
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%
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14.6
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%
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16.3
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%
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22.3
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%
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Total
assets
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$
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3,521
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$
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4,454
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$
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3,521
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$
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4,205
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$
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4,454
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Total
stockholders’ equity
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$
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565
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$
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614
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$
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565
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$
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606
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$
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614
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(1)
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Earnings
per share calculations are based on the average number of shares
outstanding during each period.
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(2)
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Excludes
cash balances in the proprietary asset management portfolio.
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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
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: cyap@blx.com,
-or-
Investor
Relations Firm
i-advize
Corporate Communications, Inc.
Mrs.
Melanie Carpenter / Mr. Peter Majeski
Tel:
(212) 406-3690, e-mail: bladex@i-advize.com
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
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.