BLX Banco Latinoamericano de Comercio Exterior SA

Year to Date Net Income Was $59.4 Million, $2.8 Million Higher Than the Same Period 2007 PANAMA CITY, Oct. 8 /PRNewswire-FirstCall/ -- Banco Latinoamericano de Exportaciones, S.A. (NYSE:BLX) ("Bladex" or the "Bank") announced today its results for the third quarter ended September 30, 2008. Third Quarter's Results were driven by: -- Commercial Division's net operating income(1) for the quarter was $16.7 million, representing a 29% increase compared to the second quarter 2008, and an increase of 55% compared to the third quarter 2007. -- Although the year to date return of Bladex's investment in our Asset Management Division was 11.6%, its net operating loss for the third quarter was $2.2 million, a decrease of $12.3 million when compared to the second quarter 2008, and a decrease of $5.9 million compared to the third quarter 2007. -- Treasury Division's net operating loss was $0.7 million, compared to a $3.0 million gain in the second quarter 2008, and compared to a $0.8 million gain in the third quarter 2007, due to the carry cost of strong liquidity and the absence of gains on the sale of securities during the third quarter 2008. -- The combined effect of these factors was a net income for the third quarter of $14.0 million, a decline of $12.3 million compared to the second quarter 2008, and compared to the third quarter 2007, net income decreased by $0.8 million. -- As of September 30, 2008, the Bank had no credits in non-accrual or past due status. -- As of September 30, 2008, liquidity(2) stood at $469 million, representing an increase of $96 million, or 26% from the previous quarter. Tier 1 capital ratio stood at 18.4%, compared to 19.0% in the prior quarter. Mr. Jaime Rivera, Bladex's Chief Executive Officer, stated the following regarding the quarter's results: "Bladex's performance during the third quarter reflected business conducted in an environment that was tougher than usual, but for which the Bank was well prepared. "Most importantly, during the third quarter 2008, the Commercial Division performed at record levels. As strong as the Commercial Division's performance was, however, it could not fully offset the impact of diminished performance in the Asset Management Division. "On a year to date basis, Bladex remains ahead of its results for 2007, which validates the benefits of its diversified business model. "Under current market conditions, liquidity management, always one of our strengths, has become paramount. Starting in August 2007, we established stringent guidelines in anticipation of a deteriorating market. The placement of a $245 million oversubscribed syndicated term loan facility on August 8th, 2008, was part of the plan we put in effect. Once conditions deteriorated starting in mid September, we slowed our portfolio growth to quickly build a comfortable $469 million liquidity position, none of which is deposited in any of the institutions that have gone bankrupt in recent weeks. "Asset quality, which Bladex has been monitoring with special care ever since a slowdown in the U.S. economy became a possibility, remains solid. While Bladex has noted some pressure developing on the absolute levels of EBITDA in some industries as commodity prices come off their record levels, debt coverage ratios remain sound. "As we have stated before, Bladex does not own, nor has it ever owned, any of the asset classes that have come to be generally known as "toxic debt" in the industry. "As of the end of the third quarter, Bladex Asset Management had invested 99.9% of its funds under management in U.S. treasuries. Bladex's share of trading losses(3) incurred during the quarter was $1.1 million, not an inconsequential amount, but a relatively modest one in the context of the $15.5 million trading gains(3) realized year to date. "Regarding other indicators, expenses during the quarter decreased $1.5 million, or 13%, loan loss reserve coverage strengthened to 2%, and Tier 1 capitalization stood at a strong 18.4%. "This was a quarter where Bladex's strengths in terms of its sound strategy, effective business model, skilled and experienced management, and a strong brand came to the forefront. It was also a period during which Bladex's ability to support Latin America's trade flows in times of market stress once again proved Bladex's strategic importance to companies, governments, and people in our Region." Footnotes: (1) Net Operating Income (Loss) refers to net interest income plus non-interest operating income, minus operating expenses. (2) 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 pledged deposits and cash balances in the Asset Management Division. (3) Includes trading gains (losses) and net gains (losses) on investment fund. 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 September 30, 2008, Bladex had disbursed accumulated credits of over $157 billion. Conference Call Information There will be a conference call to discuss the Bank's quarterly results on Thursday, October 9, 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 December 9, 2008. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The Conference ID# for the replayed call is 56208326. 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: Jaime Celorio, Chief Financial Officer, Bladex, +011-507-269-6333, , or Investor Relations, Melanie Carpenter or Peter Majeski, +1-212-406-3690, , of i-advize, for Bladex Web site: http://www.bladex.com/

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