BLADEX
REPORTS SECOND QUARTER NET INCOME OF $26.3 MILLION
COMPARED
WITH $19.2 MILLION FOR THE PRIOR QUARTER.
ROE
WAS 16.7%, COMPARED TO 12.6% IN THE FIRST QUARTER.
Panama
City, Republic of Panama, July 28, 2008
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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
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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.
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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.
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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.
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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.
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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.
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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.
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As
of June 30, 2008, the Bank had zero credit in non-accrual or past
due
status.
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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 $1,736
million.
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The
Bank’s efficiency ratio
(6)
was 29%, compared to 32% in the first quarter 2008, and 28% in
the second
quarter 2007. Tier 1 capital ratio stood at
19%.
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Mr.
Jaime
Rivera, Bladex’s Chief Executive Officer, stated the following regarding the
quarter’s results: “
We
are very pleased with the results for the quarter which were solid across
all
business lines. This performance demonstrates once more Bladex’s ability
to take advantage of a Latin American market that continues to grow, and
a business franchise that continues to strengthen.
In
broad terms, while we are mindful of both the stress placed on large segments
of
the financial industry and the implications for the economy as a whole, the
current scenario has resulted in opportunities for the Region, which Bladex
is
uniquely well positioned to realize.
Consistent
with this favorable scenario, the Bank’s intermediation business continues
to grow, with lending margins widening at an accelerating rate and fee revenue
building momentum. Bladex’s Asset Management Division posted another
quarter of solid results, and concerns regarding credit quality within Bladex’s
portfolio remain a non-issue. On the liability side, the Bank’s deposit
base increased at the faster pace that we have seen in years, and our liquidity
position remains strong.
As
satisfied as Bladex is with the current results, we place great importance
on
the permanent nature of our improving market share, which we believe will
continue to
benefit
the Bank through the next phase of the credit cycle.”
CONSOLIDATED
RESULTS OF OPERATIONS
KEY
FINANCIAL FIGURES AND RATIOS
(US$
million, except percentages and per share amounts)
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|
2Q07
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1Q08
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2Q08
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Net
Interest Income
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$
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16.7
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$
|
21.1
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|
$
|
20.1
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Net
Operating Income by Business Segment:
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Commercial
Division
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$
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10.1
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$
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14.7
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|
$
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12.9
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Treasury
Division
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$
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4.1
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$
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1.0
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$
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3.0
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Asset
Management Division
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$
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12.0
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$
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3.6
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|
$
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10.1
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|
Net
Operating Income
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|
$
|
26.1
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|
$
|
19.2
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|
$
|
25.9
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Net
Income
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|
$
|
27.0
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|
$
|
19.2
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|
$
|
26.3
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|
|
|
|
|
|
|
|
|
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Net
Income per Share
(9)
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|
$
|
0.74
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|
$
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0.53
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|
$
|
0.72
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Book
Value per common share (period end)
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|
$
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16.68
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|
$
|
16.73
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$
|
17.74
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Return
on Average Equity (“ROE”)
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|
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18.0
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%
|
|
12.6
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%
|
|
16.7
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%
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Operating
Return on Average Equity ("Operating ROE")
|
|
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17.4
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%
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|
12.6
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%
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|
16.5
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%
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Return
on Average Assets (“ROA”)
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2.7
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%
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|
1.6
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%
|
|
2.0
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%
|
Net
Interest Margin
|
|
|
1.70
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%
|
|
1.77
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%
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1.56
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%
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|
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|
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Tier
1 Capital
(10)
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$
|
606
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|
$
|
608
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$
|
645
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|
Total
Capital
(11)
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|
$
|
642
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|
$
|
647
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|
$
|
688
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Risk-Weighted
Assets
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$
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2,862
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$
|
3,112
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$
|
3,392
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Tier
1 Capital Ratio
(10)
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|
|
21.2
|
%
|
|
19.6
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%
|
|
19.0
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%
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Total
Capital Ratio
(11)
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|
|
22.4
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%
|
|
20.8
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%
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20.3
|
%
|
Stockholders’
Equity to Total Assets
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|
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14.4
|
%
|
|
12.0
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%
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11.9
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%
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|
|
|
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Liquid
Assets / Total Assets
(5)
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|
7.6
|
%
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|
9.7
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%
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|
6.9
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%
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Liquid
Assets / Total Deposits
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23.2
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%
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36.3
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%
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21.5
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%
|
|
|
|
|
|
|
|
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Non-Accruing
Loans to Total Loans, net
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|
0.0
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%
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|
0.0
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%
|
|
0.0
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%
|
Allowance
for Loan Losses to Total Loan Portfolio
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|
|
2.0
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%
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|
1.9
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%
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|
1.7
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%
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Allowance
for Losses on Off-Balance Sheet Credit Risk to Total
Contingencies
|
|
|
2.6
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%
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|
3.5
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%
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|
4.0
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%
|
|
|
|
|
|
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Total
Assets
|
|
$
|
4,205
|
|
$
|
5,090
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$
|
5,407
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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.
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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
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
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: jcelorio@bladex.com
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:
bladex@i-advize.com