BLADEX
REPORTS SECOND QUARTER NET INCOME OF $10.5 MILLION, OR $0.29 PER
SHARE.
PANAMA CITY, July 22, 2009
–
Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the second quarter ended June 30,
2009.
Business
Highlights
|
·
|
Net
interest income in the second quarter 2009 amounted to $16.8 million, an
increase of $1.4 million, or 9% from first quarter 2009, mainly due to
increased lending spreads. Quarter end commercial portfolio
increased by 2% versus the previous
quarter.
|
|
·
|
Net
operating income
(1)
for the second quarter 2009 amounted to $19.7 million, compared to a net
operating income of $22.3 million in the first quarter 2009 and $26.1
million in net operating income in the second quarter 2008. The
decrease was due principally to lower trading
gains.
|
|
·
|
Net
income amounted to $10.5 million in the second quarter 2009, compared to a
net income of $16.7 million in the first quarter 2009, and $26.3 million
gain during the second quarter 2008. The decrease was
principally the result of the creation of $12.0 million in specific
reserves against loans in the process of
restructuring. Operating expenses during the second quarter
2009 decreased to $8.6 million, from $11.1 million in the first quarter
2009.
|
|
·
|
Commercial
Division’s net operating income for the second quarter 2009 was $12.6
million, representing $0.1 million below the first quarter 2009, and $0.3
million lower than in the second quarter 2008, due to lower average loan
portfolio balances, which were essentially offset by wider lending
margins. Credit disbursements during the second quarter
increased by 25%.
|
|
·
|
Treasury
Division reported net operating income of $4.4 million, compared to a net
operating income of $1.0 million in the first quarter 2009, and $3.0
million in the second quarter 2008, mostly due to the appreciation of
trading securities. Deposits as of June 30, 2009 increased $44
million (4%) from the first quarter,
2009.
|
|
·
|
Asset
Management Division’s net operating income for the quarter was $2.6
million, compared to $8.5 million in the first quarter 2009, and $10.2
million in the second quarter 2008. The quarterly decrease was
due to lower trading gains in the Investment
Fund.
|
|
·
|
As
a result of net income generation and the appreciation of the
available-for-sale securities portfolio, book value per common share
increased approximately 7% during the quarter to $17.61. The
Bank’s Tier 1 capital ratio as of June 30, 2009 stood at 21.1%, compared
to 21.7% as of March 31, 2009, and compared to 19.1% as of June 30,
2008. The Bank’s leverage ratio as of these dates was 6.3x,
6.8x and 8.4x, respectively. The Bank’s equity consists entirely of common
shares.
|
|
·
|
The
ratio of the allowance for credit losses to the commercial portfolio
strengthened to 3.5%, compared to 3.2% as of March 31, 2009, and 1.9% as
of June 30, 2008. During the quarter, the Bank recorded $12.0
million in specific reserves for loan
losses.
|
|
·
|
The
Bank’s efficiency ratio improved to 30% in the second quarter 2009,
compared to 33% in the first quarter 2009, and compared to 32% in the
second quarter 2008.
|
CEO's
Comments
Mr. Jaime
Rivera, Bladex’s Chief Executive Officer, stated the following regarding the
Bank's results: "Bladex’s second quarter results reflect a well balanced
performance from each of our divisions: the Commercial Division expanded its
portfolio based on attractive margins, the Treasury Division saw the value of
its securities portfolio improve across the board, and the Asset Management
Division posted its seventh profitable quarter in the last two
years. Combined with reduced operating expenses and
liquidity costs, this performance continued to afford the Bank the strong
earnings power necessary to comfortably fund its growth, its dividend, and to
further strengthen its loan loss coverage.
Our
dialogue with markets across the Region supports the view that general economic
stress levels in most of Latin America seem to have peaked, and might already be
easing in some sectors of the market, most often as a result of effective
government support programs and the return of investor confidence. We also
believe that any economic recovery, once established, will be gradual but
volatile; however, it will inevitably involve an expansion in the
Region's trade flows, for which Bladex is ideally positioned. From the
perspective of individual companies, we are of the opinion that balance sheets
and income statements will continue to reflect the impact of the crisis for some
time, even after the economy starts to improve. Therefore, Bladex’s
will continue to closely monitor risk levels and provision
accordingly.
Our
management of the Bank is consistent with our view of the market and our
position as a profitable financial institution with solid capital and liquidity
resources: we continue to successfully navigate ongoing market turbulence so as
to protect our expanding franchise, while positioning Bladex to take
advantage of the opportunities that will emerge when the economy recovers, at
which time, Bladex will represent one of only a handful of financial
organizations with regional trade finance expertise and
reach.”
RESULTS
BY BUSINESS SEGMENT
Commercial
Division
The
Commercial Division
incorporates the Bank’s financial intermediation and fee generation
activities. Net operating income includes net interest income from
loans, fee income, and net allocated operating
expenses.
(US$ million)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Commercial
Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
33.9
|
|
|
$
|
38.7
|
|
|
$
|
17.0
|
|
|
$
|
17.0
|
|
|
$
|
18.9
|
|
Non-interest
operating income
(2)
|
|
|
3.3
|
|
|
|
3.7
|
|
|
|
0.8
|
|
|
|
2.5
|
|
|
|
1.9
|
|
Net
operating revenues
(3)
|
|
$
|
37.2
|
|
|
$
|
42.4
|
|
|
$
|
17.8
|
|
|
$
|
19.5
|
|
|
$
|
20.9
|
|
Operating
expenses
|
|
|
(11.8
|
)
|
|
|
(14.5
|
)
|
|
|
(5.1
|
)
|
|
|
(6.7
|
)
|
|
|
(8.0
|
)
|
Net
Operating Income
|
|
$
|
25.4
|
|
|
$
|
27.9
|
|
|
$
|
12.6
|
|
|
$
|
12.8
|
|
|
$
|
12.9
|
|
Net
operating income for the second quarter 2009 amounted to $12.6 million, compared
to $12.8 million in the first quarter 2009, and compared to $12.9 million in the
second quarter 2008. The 1% decrease during the second quarter was
primarily due to decreased non-interest operating income related mostly to the
reduction in commission income from the letters of credit
business. During the second quarter the Commercial Division´s net
interest income remained stable at $17.0 million as a result of increasing
weighted average lending spreads on the loan portfolio (25 basis points), which
offset a 3% decrease in the average loan portfolio balance.
Credit
disbursements in the second quarter totaled $1,025 million, 25% higher than the
first quarter 2009, and 48% below the level in the second quarter
2008. The quarterly increase in credit disbursements, which took
place principally in June, reflects the gradually increasing demand for credit
in the financial markets. (Please refer to Exhibit XII for the Bank’s
distribution of credit disbursements by country.) Weighted average
lending spreads
(4)
increased 25 bps, or 11%, during the second quarter 2009, and are 95 bps, or 62%
higher than during the same period previous year. Weighted average
lending spreads on new disbursements during the second quarter 2009 increased
202 bps versus the previous year.
The
following graph illustrates the trend in quarterly lending spreads:
The
commercial portfolio includes loans, letters of credit, country risk guarantees
and loan commitments pertaining to the Bank’s client-oriented intermediation
activities. On a period-end basis, the Bank reversed the decreasing
trend of the last 3 quarters and increased the commercial portfolio by 2% over
the March 31, 2009 balances. On an average basis, the portfolio
decreased 10% during the quarter, as the majority of the new loans were extended
only in June, 2009.
The
commercial portfolio continues to be short-term and trade-related in
nature. The commercial portfolio balance as of June 30, 2009 amounted
to $2,856 million, with 54%, or $1,519 million, maturing in
2009. Trade financing operations represent 63% of the
exposure. See Exhibit X for information related to the Bank’s
commercial portfolio distribution by country.
Treasury
Division
The
Treasury Division
incorporates the Bank’s
liquidity management and investment securities activities. Net
operating income is presented net of allocated operating expenses, and includes
net interest income on treasury activities and net other income (expense)
related to treasury activities
(12)
.
(US$ million)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Treasury
Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (loss)
|
|
$
|
0.3
|
|
|
$
|
4.3
|
|
|
$
|
0.8
|
|
|
$
|
(0.6
|
)
|
|
$
|
2.1
|
|
Non-interest
operating income
(2)
|
|
|
9.6
|
|
|
|
2.9
|
|
|
|
5.8
|
|
|
|
3.8
|
|
|
|
2.7
|
|
Net
operating revenues
(3)
|
|
|
9.9
|
|
|
|
7.2
|
|
|
|
6.7
|
|
|
|
3.2
|
|
|
|
4.8
|
|
Operating
expenses
|
|
|
(4.5
|
)
|
|
|
(3.2
|
)
|
|
|
(2.2
|
)
|
|
|
(2.2
|
)
|
|
|
(1.8
|
)
|
Net
Operating Income
|
|
$
|
5.4
|
|
|
$
|
4.0
|
|
|
$
|
4.4
|
|
|
$
|
1.0
|
|
|
$
|
3.0
|
|
Treasury
Division's net operating income for the second quarter of 2009 was $4.4 million,
compared to a net operating income of $1.0 million in the first quarter 2009,
and net operating income of $3.0 million during the second quarter
2008.
The $3.4
million quarterly increase in operating income in the second quarter 2009
compared to the first quarter 2009 resulted from a (i) $1.4 million increase in
net interest income due to higher average interest earning assets in the
portfolio, and a (ii) $2.0 million increase in non-interest operating income
mainly reflecting the appreciation of the securities in the trading
portfolio.
The
portfolio of securities available for sale as of June 30, 2009 totaled $608
million, representing a 3% increase from March 31, 2009, and a 17% decrease from
June 30, 2008. The portfolio consisted entirely of readily quoted
Latin American securities, 85% of which were sovereign and state-owned risk in
nature (please refer to Exhibit XI for a per country distribution of the
treasury portfolio). The available for sale portfolio is marked to
market, with the impact recorded in stockholders’ equity through the Other
Comprehensive Income Account “OCI” which, for the second quarter 2009, recorded
a $36 million improvement in value, mostly reflecting increasing market
valuation of the securities portfolio (Please refer to Exhibit I.)
Liquid
assets
(11)
decreased to $456 million as of June 30, 2009, compared to $563 million as of
March 31, 2009, and compared to $372 million as of June 30, 2008. As
of June 30, 2009, deposit balances totaled $1,261 million, $44 million, or 4%
higher than March 31, 2009, and $476 million, or 27% lower than June 30,
2008. The Bank is gradually reducing liquidity balances to
historically prevalent levels as the situation in the funding markets gradually
improves.
Asset
Management Division
The Asset
Management Division
incorporates the Bank’s
asset management activities.
The Division’s Investment
Fund follows primarily a Latin America macro strategy, utilizing a combination
of products (foreign exchange, equity indices, interest rate swaps, and credit
derivative products) to establish long and short positions in the
markets.
As of
June 30, 2009, Bladex owned 95.32% of Bladex Offshore Feeder Fund, with the
balance owned by third party investors.
The
Division’s Net Operating Income is presented net of allocated operating
expenses, and includes net interest income on Investment Fund, as well as net
gains (losses) from Investment Fund trading, and other related income
(loss).
(US$ million)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Asset
Management Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest loss
|
|
$
|
(2.0
|
)
|
|
$
|
(1.7
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(0.8
|
)
|
Non-interest
operating income
(2)
|
|
|
16.6
|
|
|
|
18.9
|
|
|
|
4.9
|
|
|
|
11.7
|
|
|
|
13.5
|
|
Net
operating revenues
(3)
|
|
$
|
14.6
|
|
|
$
|
17.2
|
|
|
$
|
3.9
|
|
|
$
|
10.7
|
|
|
$
|
12.8
|
|
Operating
expenses
|
|
|
(3.5
|
)
|
|
|
(3.9
|
)
|
|
|
(1.3
|
)
|
|
|
(2.2
|
)
|
|
|
(2.6
|
)
|
Net
Operating Income
|
|
$
|
11.1
|
|
|
$
|
13.3
|
|
|
$
|
2.6
|
|
|
$
|
8.5
|
|
|
$
|
10.2
|
|
Net
operating income in the second quarter 2009 totaled $2.6 million, compared to
net operating income of $8.5 million in the prior quarter, and compared to net
operating income of $10.2 million in the second quarter 2008. The
decrease in the second quarter 2009 when compared to the first quarter 2009 was
due to decreased trading gains.
As of
June 30, 2009, the Investment Fund’s asset value totaled $166 million, compared
to $160 million as of March 31, 2009, and compared to $147 million as of June
30, 2008.
CONSOLIDATED
RESULTS OF OPERATIONS
KEY
FINANCIAL FIGURES AND RATIOS
The
following table illustrates the consolidated results of operations of the Bank
for the periods indicated below:
(US$ million, except percentages and per share amounts)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Net
Interest Income
|
|
$
|
32.2
|
|
|
$
|
41.4
|
|
|
$
|
16.8
|
|
|
$
|
15.4
|
|
|
$
|
20.2
|
|
Net
Operating Income by Business Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Division
|
|
$
|
25.4
|
|
|
$
|
27.9
|
|
|
$
|
12.6
|
|
|
$
|
12.8
|
|
|
$
|
12.9
|
|
Treasury
Division
|
|
$
|
5.4
|
|
|
$
|
4.0
|
|
|
$
|
4.4
|
|
|
$
|
1.0
|
|
|
$
|
3.0
|
|
Asset
Management Division
|
|
$
|
11.1
|
|
|
$
|
13.3
|
|
|
$
|
2.6
|
|
|
$
|
8.5
|
|
|
$
|
10.2
|
|
Net
Operating Income
|
|
$
|
41.9
|
|
|
$
|
45.3
|
|
|
$
|
19.7
|
|
|
$
|
22.3
|
|
|
$
|
26.1
|
|
Net
Income
|
|
$
|
27.2
|
|
|
$
|
45.5
|
|
|
$
|
10.5
|
|
|
$
|
16.7
|
|
|
$
|
26.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
Share
(5)
|
|
$
|
0.75
|
|
|
$
|
1.25
|
|
|
$
|
0.29
|
|
|
$
|
0.46
|
|
|
$
|
0.72
|
|
Book
Value per common share (period end)
|
|
$
|
17.61
|
|
|
$
|
17.74
|
|
|
$
|
17.61
|
|
|
$
|
16.50
|
|
|
$
|
17.74
|
|
Return
on Average Equity (“ROE”)
|
|
|
8.9
|
%
|
|
|
14.7
|
%
|
|
|
6.6
|
%
|
|
|
11.4
|
%
|
|
|
16.7
|
%
|
Operating Return on
Average Equity ("Operating ROE")
(6)
|
|
|
13.8
|
%
|
|
|
14.6
|
%
|
|
|
12.4
|
%
|
|
|
15.2
|
%
|
|
|
16.6
|
%
|
Return
on Average Assets (“ROA”)
|
|
|
1.3
|
%
|
|
|
1.8
|
%
|
|
|
1.0
|
%
|
|
|
1.6
|
%
|
|
|
2.0
|
%
|
Net
Interest Margin
|
|
|
1.56
|
%
|
|
|
1.66
|
%
|
|
|
1.62
|
%
|
|
|
1.50
|
%
|
|
|
1.56
|
%
|
Efficiency Ratio
(7)
|
|
|
32
|
%
|
|
|
32
|
%
|
|
|
30
|
%
|
|
|
33
|
%
|
|
|
32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Capital
(8)
|
|
$
|
662
|
|
|
$
|
648
|
|
|
$
|
662
|
|
|
$
|
655
|
|
|
$
|
648
|
|
Total Capital
(9)
|
|
$
|
701
|
|
|
$
|
690
|
|
|
$
|
701
|
|
|
$
|
693
|
|
|
$
|
690
|
|
Risk-Weighted
Assets
|
|
|
3,129
|
|
|
|
3,392
|
|
|
|
3,129
|
|
|
|
3,014
|
|
|
|
3,392
|
|
Tier 1 Capital
Ratio
(8)
|
|
|
21.1
|
%
|
|
|
19.1
|
%
|
|
|
21.1
|
%
|
|
|
21.7
|
%
|
|
|
19.1
|
%
|
Total Capital Ratio
(9)
|
|
|
22.4
|
%
|
|
|
20.3
|
%
|
|
|
22.4
|
%
|
|
|
23.0
|
%
|
|
|
20.3
|
%
|
Stockholders’
Equity
|
|
$
|
643
|
|
|
$
|
645
|
|
|
$
|
643
|
|
|
$
|
601
|
|
|
$
|
645
|
|
Stockholders’
Equity to Total Assets
|
|
|
15.8
|
%
|
|
|
11.9
|
%
|
|
|
15.8
|
%
|
|
|
14.6
|
%
|
|
|
11.9
|
%
|
Other
Comprehensive Income Account ("OCI")
|
|
$
|
(21
|
)
|
|
$
|
(6
|
)
|
|
$
|
(21
|
)
|
|
$
|
(57
|
)
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage (times)
(10)
|
|
|
6.3
|
|
|
|
8.4
|
|
|
|
6.3
|
|
|
|
6.8
|
|
|
|
8.4
|
|
Liquid Assets / Total
Assets
(11)
|
|
|
11.2
|
%
|
|
|
6.9
|
%
|
|
|
11.2
|
%
|
|
|
13.7
|
%
|
|
|
6.9
|
%
|
Liquid
Assets / Total Deposits
|
|
|
36.2
|
%
|
|
|
21.5
|
%
|
|
|
36.2
|
%
|
|
|
46.3
|
%
|
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accruing
Loans to Total Loans, net
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Allowance
for Credit Losses to Commercial Portfolio
|
|
|
3.5
|
%
|
|
|
1.9
|
%
|
|
|
3.5
|
%
|
|
|
3.2
|
%
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
4,067
|
|
|
$
|
5,410
|
|
|
$
|
4,067
|
|
|
$
|
4,108
|
|
|
$
|
5,410
|
|
The
following graphs illustrate the trends in Net Operating Income and Return on
Average Stockholders’ Equity for the periods indicated:
NET
INTEREST INCOME AND MARGINS
(US$ million, except percentages)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Net
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Division
|
|
$
|
33.9
|
|
|
$
|
38.7
|
|
|
$
|
17.0
|
|
|
$
|
17.0
|
|
|
$
|
18.9
|
|
Treasury
Division
|
|
|
0.3
|
|
|
|
4.3
|
|
|
|
0.8
|
|
|
|
(0.6
|
)
|
|
|
2.1
|
|
Asset
Management Division
|
|
|
(2.0
|
)
|
|
|
(1.7
|
)
|
|
|
(1.0
|
)
|
|
|
(1.0
|
)
|
|
|
(0.8
|
)
|
Consolidated
|
|
$
|
32.2
|
|
|
$
|
41.4
|
|
|
$
|
16.8
|
|
|
$
|
15.4
|
|
|
$
|
20.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin
*
|
|
|
1.56
|
%
|
|
|
1.66
|
%
|
|
|
1.62
|
%
|
|
|
1.50
|
%
|
|
|
1.56
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Net interest income divided by average
balance of interest-earning
assets.
|
For the
second quarter 2009, net interest income amounted to $16.8 million, an increase
of $1.4 million, or 9% from first quarter 2009, mostly reflecting increased
lending spreads, despite lower average loan volumes. The $3.4
million, or 17% decrease in net interest income in the second quarter 2009,
compared to the second quarter 2008, was mainly due to decreased average loan
portfolio balances.
FEES
AND COMMISSIONS
(US$ million)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Letters
of credit
|
|
$
|
1.9
|
|
|
$
|
2.3
|
|
|
$
|
0.4
|
|
|
$
|
1.5
|
|
|
$
|
1.2
|
|
Guarantees
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
0.3
|
|
Loans
|
|
|
0.1
|
|
|
|
0.4
|
|
|
|
0.0
|
|
|
|
0.1
|
|
|
|
0.2
|
|
Other*
|
|
|
0.1
|
|
|
|
0.4
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.2
|
|
Fees
and Commissions, net
|
|
$
|
2.9
|
|
|
$
|
3.8
|
|
|
$
|
0.7
|
|
|
$
|
2.2
|
|
|
$
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Net of commission
expenses
|
During
the second quarter 2009, fees and commissions decreased $1.4 million, or 66%,
mostly due to seasonally decreased letter of credit activity. The
$0.7 million in fees was $1.3 million, or 63%, lower than the second quarter
2008.
PORTFOLIO
QUALITY AND PROVISION FOR CREDIT LOSSES
(In US$ million)
|
|
30-Jun-08
|
|
|
30-Sep-08
|
|
|
31-Dec-08
|
|
|
31-Mar-09
|
|
|
30-Jun-09
|
|
Allowance
for Loan Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
69.9
|
|
|
$
|
69.8
|
|
|
$
|
69.1
|
|
|
$
|
54.6
|
|
|
$
|
80.6
|
|
Provisions
(reversals)
|
|
|
(3.2
|
)
|
|
|
(0.8
|
)
|
|
|
(14.5
|
)
|
|
|
25.8
|
|
|
|
8.9
|
|
Recoveries,
net of charge-offs
|
|
|
3.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.8
|
|
End
of period balance
|
|
$
|
69.8
|
|
|
$
|
69.1
|
|
|
$
|
54.6
|
|
|
$
|
80.6
|
|
|
$
|
90.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve
for Losses on Off-balance Sheet Credit Risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
13.7
|
|
|
$
|
16.2
|
|
|
$
|
16.9
|
|
|
$
|
30.7
|
|
|
$
|
10.1
|
|
Provisions
(reversals)
|
|
|
2.5
|
|
|
|
0.7
|
|
|
|
13.8
|
|
|
|
(20.6
|
)
|
|
|
0.2
|
|
End
of period balance
|
|
$
|
16.2
|
|
|
$
|
16.9
|
|
|
$
|
30.7
|
|
|
$
|
10.1
|
|
|
$
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Allowance for Credit Losses
|
|
$
|
86.0
|
|
|
$
|
86.0
|
|
|
$
|
85.4
|
|
|
$
|
90.7
|
|
|
$
|
100.5
|
|
During
the second quarter, there was a net increase of $9.8 million in the allowance
for credit losses, reflecting $12.0 million in specific reserves assigned to
loans in the process of restructuring and placed in non-accrual status as of
July 1, 2009, a $2.3 million reduction in generic reserves driven by improving
risk levels, and an increase of $0.2 million in generic off-balance sheet credit
risk reserves. The ratio of the allowance for credit losses to the
commercial portfolio increased to 3.5%, compared to 3.2% as of March 31, 2009,
and 1.9% as of June 30, 2008.
OPERATING
EXPENSES
(US$ million)
|
|
|
6M09
|
|
|
|
6M08
|
|
|
|
2Q09
|
|
|
|
1Q09
|
|
|
|
2Q08
|
|
Salaries
and other employee expenses
|
|
$
|
10.4
|
|
|
$
|
10.5
|
|
|
$
|
4.2
|
|
|
$
|
6.2
|
|
|
$
|
5.0
|
|
Depreciation,
amortization and impairment of premises and equipment
|
|
|
1.4
|
|
|
|
2.3
|
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
1.6
|
|
Professional
services
|
|
|
1.7
|
|
|
|
1.9
|
|
|
|
1.0
|
|
|
|
0.7
|
|
|
|
1.1
|
|
Maintenance
and repairs
|
|
|
0.5
|
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
0.4
|
|
Expenses
from the investment fund
|
|
|
2.1
|
|
|
|
2.0
|
|
|
|
0.6
|
|
|
|
1.5
|
|
|
|
2.0
|
|
Other
operating expenses
|
|
|
3.6
|
|
|
|
4.2
|
|
|
|
1.9
|
|
|
|
1.8
|
|
|
|
2.2
|
|
Total
Operating Expenses
|
|
$
|
19.8
|
|
|
$
|
21.5
|
|
|
$
|
8.6
|
|
|
$
|
11.1
|
|
|
$
|
12.3
|
|
The
Bank’s efficiency ratio was 30% in the second quarter 2009, compared to 33% in
the first quarter 2009, and 32% in the second quarter 2008.
Operating
expenses during the second quarter 2009 amounted to $8.6 million compared to
$11.1 million in the first quarter 2009. The $2.5 million reduction
during the quarter was mainly attributed to a $2.0 million decrease in salaries
and other employee expenses, and to lower expenses in the investment fund
related to reduced compensation expenses associated with lower trading gains in
the Asset Management Division.
OTHER
EVENTS
§
|
Quarterly Dividend Payment:
On July 16, 2009, the Bank announced a quarterly common dividend
payment of US$0.15 per share related to the second quarter 2009. The
dividend will be paid on August 3, 2009, to stockholders registered as of
July 23, 2009 the record date.
|
§
|
Amendments to the Bank’s
Articles of Incorporation:
On June 22, 2009, the Bank
announced various amendments to the Bank’s Articles of Incorporation
approved by shareholders at the Annual Shareholders’ Meeting that took
place on April 15, 2009. The amendments became effective June
17, 2009, and included the
following:
|
|
Ÿ
|
An
amendment to change the name of the Bank from “Banco Latinoamericano de
Exportaciones, S.A.” to “Banco Latinoamericano de Comercio Exterior, S.A.”
in Spanish, and from “Latin American Export Bank” to “Foreign Trade Bank
of Latin America, Inc.” in English. The Bank will continue to
use the name “Bladex” in order to identify itself for branding, marketing
and other purposes.
|
|
Ÿ
|
An
amendment to broaden the scope of the Bank’s activities to encompass all
banking, investment, and financial businesses that support foreign trade
flows and the development of Latin American
countries.
|
|
Ÿ
|
Amendments
authorizing (1) the increase in the total share capital of the Bank to 290
million shares, which includes up to ten million new shares of preferred
stock, par value US$10.00 per share, to be issued in one or more series
from time to time at the discretion of the Bank’s Board of Directors; and
(2) the establishment of a new class of common shares (class F) only to be
issued to (a) state entities and agencies of non-Latin American countries,
including, among others, central banks and those banks with the related
state agency as the majority shareholder, and (b) multilateral
institutions that are international or regional
institutions. The class F common shares will not have any
special privileges with respect to voting rights, and each class F common
share will entitle its holder to one vote at any of the Bank’s shareholder
meetings, and to cumulative voting rights with respect to the election of
directors of its class. The authorized number of class A, B and
E common shares, and the rights and privileges associated with these
common shares, have not changed.
|
§
|
Ratings Affirmed:
On May
13, 2008, Standard & Poor’s Rating Services affirmed the Bank’s credit
rating to BBB/A-2; Outlook
Stable.
|
Note:
Various numbers and
percentages set forth in this press release have been rounded and, accordingly,
may not total exactly.
Footnotes:
|
(1)
|
Net
Operating Income (Loss) refers to net interest income plus non-interest
operating income, minus operating
expenses.
|
|
(2)
|
Non-interest
operating income (loss) refers to net other income (expense) excluding
reversals (provisions) for credit losses and recoveries (impairment) on
assets. By business segment, non-interest operating income
includes:
|
|
Commercial
Division: Net fees and commissions and Net related other income
(expense).
|
|
Treasury
Division: net gain (loss) on sale of securities available-for-sale, impact
of derivative hedging instruments, gain (loss) on foreign currency
exchange, and gain (loss) on trading
securities.
|
|
Asset
Management Division: Gain from Investment Fund trading and related other
income (expense).
|
|
(3)
|
Net
Operating Revenues refers to net interest income plus non-interest
operating income.
|
|
(4)
|
Lending
spreads are calculated as loan portfolio weighted average lending spread,
net of weighted average Libor-based cost rate, excluding loan
commissions.
|
|
(5)
|
Net
Income per Share calculations are based on the average number of shares
outstanding during each
period.
|
|
(6)
|
Operating
ROE: Annualized net operating income divided by average stockholders’
equity.
|
|
(7)
|
Efficiency
ratio refers to consolidated operating expenses as a percentage of net
operating revenues.
|
|
(8)
|
Tier
1 Capital is calculated according to the US Federal Reserve Board, and
Basel I capital adequacy guidelines, and is equivalent to stockholders’
equity excluding the OCI effect of the available for sale
portfolio. Tier 1 Capital ratio is calculated as a percentage
of risk weighted assets. Risk-weighted assets are, in turn,
also calculated based on US Federal Reserve Board, and Basel I capital
adequacy guidelines.
|
|
(9)
|
Total
Capital refers to Tier 1 Capital 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.
|
|
(10)
|
Leverage
corresponds to assets divided by stockholders’
equity.
|
|
(11)
|
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 regulatory
deposits.
|
|
(12)
|
Treasury
Division’s net operating income includes: (i) interest income from
interest bearing deposits with banks, investment securities and trading
assets, net of allocated cost of funds; (ii) other income (expense) from
derivative financial instrument and hedging; (iii) net gain (loss) from
trading securities; (iv) net gain (loss) on sale of securities available
for sale; (v) gain (loss) on foreign currency exchange; and (vi) allocated
operating expenses.
|
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 the 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 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, 2009, Bladex had disbursed accumulated
credits of approximately $160 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Thursday
July 23, 2009 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 23,
2009. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The Conference ID# for the replayed call is
79484056. 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
Panama
City, Panama
Tel:
(507) 210-8630
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