Bladex Reports Second Quarter Net Income of $26.3 Million Compared With $19.2 Million for the Prior Quarter
July 28 2008 - 8:41AM
PR Newswire (US)
ROE Was 16.7%, Compared to 12.6% in the First Quarter PANAMA CITY,
July 28 /PRNewswire-FirstCall/ -- Banco Latinoamericano de
Exportaciones, S.A. (NYSE:BLX) ("Bladex" or the "Bank") announced
today its results for the second quarter ended June 30, 2008.
Second Quarter Business Highlights -- Net income of $26.3 million,
an increase of 37% compared to the first quarter 2008, and 3% lower
than the second quarter 2007, principally due to lower trading
gains. -- Net operating revenue(1) of $36.4 million, an increase of
28% from the first quarter 2008, and unchanged from the second
quarter 2007, reflecting strong growth in the Bank's intermediation
business. -- Return on average equity ("ROE") of 16.7%, compared to
12.6% in the first quarter 2008, and 18.0% in the second quarter
2007. -- Commercial Division's net operating income(2) was $12.9
million, versus $14.7 million in the previous quarter. Net interest
income on lending spreads(3) increased 27% as a result of higher
lending spreads(4) (27 bps, or 22%), and a 4% growth on the average
commercial portfolio. -- Treasury Division's net operating income
was $3.0 million, an increase of $2.0 million compared to the first
quarter 2008, and a decrease of $1.1 million from the second
quarter 2007 due to lower gains on the sale of securities. -- Asset
Management Division's net operating income was $10.1 million, an
increase of $6.5 million from the first quarter 2008, and a
decrease of $1.9 million from the second quarter 2007, driven by
trading gains. -- As of June 30, 2008, the Bank had zero credit in
non-accrual or past due status. -- As of June 30, 2008,
liquidity(5) stood at $372 million, representing 7% of total
assets. During the quarter, deposits increased $379 million (28%)
to $1,736 million. -- The Bank's efficiency ratio(6) was 29%,
compared to 32% in the first quarter 2008, and 28% in the second
quarter 2007. Tier 1 capital ratio stood at 19%. Mr. Jaime Rivera,
Bladex's Chief Executive Officer, stated the following regarding
the quarter's results: "We are very pleased with the results for
the quarter which were solid across all business lines. This
performance demonstrates once more Bladex's ability to take
advantage of a Latin American market that continues to grow, and a
business franchise that continues to strengthen. In broad terms,
while we are mindful of both the stress placed on large segments of
the financial industry and the implications for the economy as a
whole, the current scenario has resulted in opportunities for the
Region, which Bladex is uniquely well positioned to realize.
Consistent with this favorable scenario, the Bank's intermediation
business continues to grow, with lending margins widening at an
accelerating rate and fee revenue building momentum. Bladex's Asset
Management Division posted another quarter of solid results, and
concerns regarding credit quality within Bladex's portfolio remain
a non-issue. On the liability side, the Bank's deposit base
increased at the faster pace that we have seen in years, and our
liquidity position remains strong. As satisfied as Bladex is with
the current results, we place great importance on the permanent
nature of our improving market share, which we believe will
continue to benefit the Bank through the next phase of the credit
cycle." CONSOLIDATED RESULTS OF OPERATIONS KEY FINANCIAL FIGURES
AND RATIOS (US$ million, except percentages and per share amounts)
2Q07 1Q08 2Q08 Net Interest Income $16.7 $21.1 $20.1 Net Operating
Income by Business Segment: Commercial Division $10.1 $14.7 $12.9
Treasury Division $4.1 $1.0 $3.0 Asset Management Division $12.0
$3.6 $10.1 Net Operating Income $26.1 $19.2 $25.9 Net Income $27.0
$19.2 $26.3 Net Income per Share(7) $0.74 $0.53 $0.72 Book Value
per common share (period end) $16.68 $16.73 $17.74 Return on
Average Equity ("ROE") 18.0% 12.6% 16.7% Operating Return on
Average Equity ("Operating ROE") 17.4% 12.6% 16.5% Return on
Average Assets ("ROA") 2.7% 1.6% 2.0% Net Interest Margin 1.70%
1.77% 1.56% Tier 1 Capital(8) $606 $608 $645 Total Capital(9) $642
$647 $688 Risk-Weighted Assets $2,862 $3,112 $3,392 Tier 1 Capital
Ratio(8) 21.2% 19.6% 19.0% Total Capital Ratio (9) 22.4% 20.8%
20.3% Stockholders' Equity to Total Assets 14.4% 12.0% 11.9% Liquid
Assets / Total Assets(5) 7.6% 9.7% 6.9% Liquid Assets / Total
Deposits 23.2% 36.3% 21.5% Non-Accruing Loans to Total Loans, net
0.0% 0.0% 0.0% Allowance for Loan Losses to Total Loan Portfolio
2.0% 1.9% 1.7% Allowance for Losses on Off-Balance Sheet Credit
Risk to Total Contingencies 2.6% 3.5% 4.0% Total Assets $4,205
$5,090 $5,407 Footnotes: (1) Net Operating Revenue refers to net
interest income plus non-interest operating income. (2) Net
Operating Income refers to net interest income plus non-interest
operating income, minus operating expenses. (3) Net interest income
on lending spreads refers to interest income on weighted average
net lending spreads of average loan portfolio, plus loan
commissions. (4) Lending spreads refer to loan portfolio weighted
average lending spread over weighted average Libor-based cost rate,
excluding loan commission. (5) Liquidity ratio refers to liquid
assets as a percentage of total assets. Liquid assets consist of
investment-grade 'A' securities, and cash and due from banks,
excluding cash balances in the Asset Management Division. (6)
Efficiency ratio refers to consolidated operating expenses as a
percentage of net operating revenues. Excluding the Asset
Management Division's net revenues and expenses, the efficiency
ratio is 38%, 34% and 35% for second quarter 2008, first quarter
2008 and second quarter 2007, respectively. (7) Net Income per
Share calculations are based on the average number of shares
outstanding during each period. (8) Tier 1 Capital refers to total
stockholders' equity. Tier 1 Capital ratio refers to Tier 1 Capital
as a percentage of risk weighted assets. Risk-weighted assets are
calculated based on US Federal Reserve Board and Basel I capital
adequacy guidelines. (9) Total Capital refers to total
stockholders' equity plus Tier 2 Capital based on US Federal
Reserve Board and Basel I capital adequacy guidelines. Total
Capital ratio refers to Total Capital as a percentage of risk
weighted assets. 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 and
Asset Management 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/decreasing 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 June 30, 2008, Bladex
had disbursed accumulated credits of over $156 billion. Conference
Call Information There will be a conference call to discuss the
Bank's quarterly results on Tuesday, July 29, 2008, at 11:00 a.m.,
New York City time (Eastern Time). For those interested in
participating, please dial (800) 311-9401 in the United States or,
if outside the United States, (334) 323-7224. Participants should
use conference ID# 8034, and dial in five minutes before the call
is set to begin. There will also be a live audio web cast of the
conference at http://www.bladex.com/. The conference call will
become available for review on Conference Replay one hour after its
conclusion, and will remain available through September 28, 2008.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The Conference ID# for the replayed call is 42697683.
For more information, please access http://www.bladex.com/ or
contact: Mr. Jaime Celorio Chief Financial Officer Bladex Calle 50
y Aquilino de la Guardia P.O. Box: 0819-08730 Panama City, Panama
Tel: (507) 210-8563 Fax: (507) 269-6333 E-mail address: Investor
Relations Firm: i-advize Corporate Communications, Inc. Mrs.
Melanie Carpenter / Mr. Peter Majeski 82 Wall Street, Suite 805 New
York, NY 10005 Tel: (212) 406-3690 E-mail address: DATASOURCE:
Banco Latinoamericano de Exportaciones, S.A. CONTACT: Mr. Jaime
Celorio, Chief Financial Officer, Bladex, +1-507-210-8563, Fax:
+1-507-269-6333, ; or Investor Relations Firm, Mrs. Melanie
Carpenter or Mr. Peter Majeski, i-advize Corporate Communications,
Inc., +1-212-406-3690, Web site: http://www.bladex.com/
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