FOR
IMMEDIATE RELEASE
Bladex
Reports
Full
Year 2007 Net Income of $72.2 million, up 25% from 2006 and
Fourth
Quarter Net Income of $15.5 million, up 5% from prior quarter;
Asset
quality remains strong; liquidity strengthens.
Financial
Highlights
Full
Year 2007 vs. Full Year 2006:
·
|
Net
income amounted to $72.2 million, an increase of
25%.
|
·
|
Operating
income
(1)
amounted to $71.2 million, an increase of
81%.
|
·
|
The
Commercial Division’s operating income increased 25%, to $42.3 million,
driven by increased net interest income.
|
·
|
The
Treasury Division’s operating income increased 84%, driven by higher net
gains on the sale of securities available for sale.
|
·
|
Bladex
Asset Management’s (“BAM”) operating income increased $18.6 million,
driven by trading gains.
|
·
|
The
Bank’s efficiency ratio improved from 42% to 34%.
|
Fourth
Quarter 2007 vs. Third Quarter 2007:
·
|
Net
income stood at $15.5 million, increasing 5%. Operating income
amounted to
$15.8 million, increasing 4%, driven by 9% in higher net interest
income.
|
·
|
The
average commercial portfolio rose 6% to $4.2 billion.
|
·
|
The
Bank’s liquidity ratio (liquid assets / total assets) strengthened from
7.3% to 8.4%; deposits rose 1% to $1.5 billion.
|
·
|
As
of December 31, 2007, the Bank had zero credits in non-accruing
or past
due status.
|
Fourth
Quarter 2007 vs. Fourth Quarter 2006:
·
|
Operating
income increased 12%, driven primarily by increased net interest
income
and non-interest operating income, which offset higher operating
expenses.
|
·
|
Net
income declined 26%, because of the impact of a one-time $5.6 million
recovery on impaired assets that took place in the fourth quarter
2006.
|
·
|
The
loan portfolio grew 25% to $
3.7
billion.
|
(1)
Operating income refers to net income, excluding reversals (provisions) for
credit losses, and recoveries (impairment), on assets.
Panama
City, Republic of Panama, February 19, 2008
-
Banco
Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”)
announced today its results for the fourth quarter ended December 31, 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)
|
|
2006
|
|
2007
|
|
4Q06
|
|
3Q07
|
|
4Q07
|
|
Net
interest income
|
|
$
|
58.8
|
|
$
|
70.6
|
|
$
|
16.7
|
|
$
|
17.6
|
|
$
|
19.1
|
|
Operating
income by business segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Division
|
|
$
|
33.7
|
|
$
|
42.3
|
|
$
|
8.6
|
|
$
|
10.8
|
|
$
|
11.4
|
|
Treasury
Division
|
|
$
|
5.6
|
|
$
|
10.3
|
|
$
|
0.6
|
|
$
|
0.8
|
|
$
|
2.8
|
|
Bladex
Asset Management
|
|
$
|
0.0
|
|
$
|
18.6
|
|
$
|
4.9
|
|
$
|
3.7
|
|
$
|
1.5
|
|
Operating
income
|
|
$
|
39.3
|
|
$
|
71.2
|
|
$
|
14.1
|
|
$
|
15.2
|
|
$
|
15.8
|
|
Net
income
|
|
$
|
57.9
|
|
$
|
72.2
|
|
$
|
21.1
|
|
$
|
14.8
|
|
$
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS
(1)
|
|
$
|
1.56
|
|
$
|
1.99
|
|
$
|
0.58
|
|
$
|
0.41
|
|
$
|
0.43
|
|
Book
value per common share
|
|
$
|
16.07
|
|
$
|
16.83
|
|
$
|
16.07
|
|
$
|
16.89
|
|
$
|
16.83
|
|
Return
on average equity (“ROE”) p.a.
|
|
|
10.0
|
%
|
|
11.9
|
%
|
|
14.5
|
%
|
|
9.6
|
%
|
|
9.9
|
%
|
Tier
1 capital ratio
|
|
|
24.4
|
%
|
|
20.9
|
%
|
|
24.4
|
%
|
|
21.6
|
%
|
|
20.9
|
%
|
Net
interest margin
|
|
|
1.76
|
%
|
|
1.71
|
%
|
|
1.76
|
%
|
|
1.65
|
%
|
|
1.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquid
Assets
(2)
/
Total Assets
|
|
|
10.0
|
%
|
|
8.4
|
%
|
|
10.0
|
%
|
|
7.3
|
%
|
|
8.4
|
%
|
Liquid
Assets
(2)
/
Total Deposits
|
|
|
37.7
|
%
|
|
27.4
|
%
|
|
37.7
|
%
|
|
22.3
|
%
|
|
27.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
3,978
|
|
$
|
4,791
|
|
$
|
3,978
|
|
$
|
4,454
|
|
$
|
4,791
|
|
Total
stockholders’ equity
|
|
$
|
584
|
|
$
|
612
|
|
$
|
584
|
|
$
|
614
|
|
$
|
612
|
|
(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.
|
The
following graphs illustrate Operating Income and the Return on Average
Stockholders’ Equity trends from 2005 through 2007:
Comments
from the Chief Executive Officer
Jaime
Rivera, Bladex’s Chief Executive Officer, stated the following regarding the
quarterly and year end results:
“The
Bank’s performance during the fourth quarter, and during 2007 as a whole, was
a
proxy for the steady, quality growth pattern established by Bladex during
the
last four years.
During
2007, we achieved steady growth and solid returns across all of our business
lines. The operating contribution of the Commercial Division increased 25%,
the
second consecutive year of double digit growth rates. The Commercial Division
remains at the heart of the Bank’s business, responsible for 59% of the year’s
operating results.
Our
Treasury Division had a successful year as well, contributing 15% of operating
income. In addition, we were able to strengthen liquidity and improve the
diversification and relative cost of our funding.
Bladex’s
proprietary asset management operations had what, in our opinion, can be
objectively described as a banner year, with returns over NAV amounting to
23.34%.
These
results prove that our business model combines the strength and stability
of our
credit risk-driven core business with higher-return, market-risk oriented
activities.
After
a
four year period of ample liquidity and lax credit standards in the markets
(to
which Bladex never subscribed, as evidenced by our pristine portfolio), we
are
experiencing a steady improvement in our intermediation margins. In addition,
current circumstances in the markets, while increasing the levels of volatility,
provide Bladex with attractive opportunities.
Events
in
the financial markets during the last few months compel me to state
unequivocally that Bladex is not afflicted with any of the types problems
impacting some segments of the international financial industry. The Bank’s
accounting records and information are simple, clear, transparent, and
reflective of the entirety of our business.
Regarding
our plans moving forward, further, steady improvement in ROE, while continuing
to strengthen the Bank’s growing core business, will remain the driving force
behind the management of the company. We will continue optimizing our business,
convinced that our valuation will reflect the unique value of our franchise,“
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 December 31,
2007,
Bladex had disbursed accumulated credits of over $152 billion.
Bladex
is
listed on the New York Stock Exchange. Further investor information can be
found
at
www.bladex.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@bladex.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
|
New
Chief Financial Officer contact information:
Mr.
Jaime
Celorio
New
Chief
Financial Officer
Tel:
(507) 210-8630
Fax:
(507) 269-6333
e-mail
address: jcelorio@bladex.com
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Wednesday,
February 20, 2008, 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# 33441861, 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.bladex.com
.
The
conference call will become available for review on Conference Replay one
hour
after its conclusion, and will remain available through February 27, 2008.
Please dial (800) 642-1687 or (706) 645-9291, and follow the instructions.
The
Conference ID# for the replayed call is 33441861.