UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES
EXCHANGE ACT OF 1934
Short
form of Press Release
BANCO
LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.
(Exact
name of Registrant as specified in its Charter)
FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
(Translation
of Registrant’s name into English)
Calle 50
y Aquilino de la Guardia
P.O. Box
0819-08730
Panama
City, Republic of Panama
(Address
of Registrant’s Principal Executive Offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form 20-F
x
Form
40-F
¨
(Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing information to the Commission pursuant to
Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)
Yes
¨
No
x
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). 82__.)
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereto duly
authorized.
October
29, 2009
FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
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By:
/s/ Pedro Toll
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Name:
Pedro Toll
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Title:
General Manager
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BLADEX
REPORTS THIRD QUARTER NET INCOME OF $15.8 MILLION, OR $0.43 PER
SHARE
PANAMA CITY, October 29, 2009
– Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the third quarter ended September 30,
2009.
Business
Highlights
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·
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Net
income amounted to $15.8 million in the third quarter 2009, compared to
$10.5 million in the second quarter 2009, and $14.0 million in the third
quarter 2008. Net interest margin increased to 1.76% in the third quarter
2009, from 1.62% in the previous quarter and 1.61% in the third quarter
2008.
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·
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The
Commercial Division’s net income for the third quarter 2009 was $11.8
million, compared to $3.6 million in the second quarter 2009, and $16.8
million in the third quarter 2008. The increase from the previous quarter
was mainly driven by more stable margins, lower provisions for credit
losses, and increased commission income from the letter of credit
business. Credit disbursements in the third quarter reached
$1.1 billion, 3% higher than the second quarter 2009 and 30% below the
third quarter 2008. The commercial portfolio rose 1% during the
third quarter 2009 to $2.9 billion, compared to $4.2 billion at the end of
the third quarter 2008.
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·
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Driven
by lower non-interest operating income generated from the securities
portfolios, the Treasury Division reported net income for the third
quarter 2009 of $1.2 million, compared to net income of $4.4 million in
the previous quarter and a net loss of $0.7 million in the third quarter
2008.
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·
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The
Asset Management Division’s net income for the third quarter 2009 was $2.8
million, compared to $2.5 million in the second quarter 2009, and a net
loss of $2.1 million in the third quarter 2008. The quarterly
increase was due to higher trading gains in the Investment Fund, partially
offset by a greater participation of minority
interests.
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·
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During
the third quarter 2009, the book value per common share increased 3% to
$18.23. The Bank’s Tier 1 capital ratio as of September 30,
2009 was 24.6%, compared to 21.1% as of June 30, 2009, and 18.3% as of
September 30, 2008, while the leverage ratio as of these dates was 5.6x,
6.3x and 8.7x, respectively. The Other Comprehensive Income
account (“OCI”) recorded an improvement of $12 million (57%) versus the
previous quarter and $35 million (80%) versus the third quarter 2008. The
Bank’s equity consists entirely of common
shares.
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·
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The
ratio of the allowance for credit losses to the commercial portfolio
remained stable at 3.5%, the same level reported in the second quarter
2009, and 2.0% as of September 30, 2008. During the third
quarter 2009, the Bank recorded $2.0 million in specific loan loss
reserves, compared to the $12.0 million recorded in the second quarter
2009, and none in the third quarter
2008.
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CEO's Comments
"Bladex
is satisfied with its third quarter results and encouraged by the underlying
trends in the markets. Financially, the quarter was well-balanced,
with all business units performing well. In the Commercial Division,
margins remained attractive, commission income increased, portfolio balances
grew for the first time since the onset of the crisis, while credit provisions
eased. In the Treasury Division, liquidity remained ample, as the
Bank successfully tapped Asian interbank funding markets, while reaping the
benefits of improving prices within the securities
portfolios. Notably, results in the Asset Management Division were
consistent with the solid track record realized since the Fund’s inception.
Trade
flows in Latin America, while still markedly below levels of a year ago, are
beginning to show a gradual improvement, consistent with the situation
internationally. With Bladex facing less competitive pressures and a
growing client franchise, the Bank expects to benefit from these trends as they
become more significant, particularly given that Bladex possesses the capital
and funding needed to absorb additional credit demand. Furthermore,
credit risk levels are showing signs of gradual improvement, as companies
benefit from a generally less challenging economic climate, a trend that will
afford Bladex greater flexibility in terms of credit decisions, thus gradually
easing the pressure on provision levels. Trends in the Asset
Management Division are also encouraging as the Fund steadily builds its assets
under management.
As Latin
American markets regain some stability Bladex is focused on identifying new
opportunities and deploying the resources to exploit them. Companies
throughout the Region have, as a result of the crisis, become more
internationally oriented, demanding coordinated trade services throughout Latin
America. This new reality represents a tremendous opportunity for
Bladex, given the Bank’s status as one of the very few regional wholesale
banking franchises in Latin America. Bladex looks forward to continued progress
in the coming quarters.”
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)
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9M09
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9M08
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3Q09
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2Q09
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3Q08
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Net
Interest Income
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$
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49.6
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$
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63.1
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$
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17.4
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$
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16.8
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$
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21.8
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Net
Operating Income (Loss) by Business Segment:
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Commercial
Division
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$
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38.4
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$
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44.5
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$
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13.0
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$
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12.6
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$
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16.6
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Treasury
Division
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$
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6.6
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$
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3.3
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$
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1.2
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$
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4.4
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$
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(0.7
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)
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Asset
Management Division
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|
$
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14.4
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|
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$
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11.2
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$
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3.3
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$
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2.6
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|
|
$
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(2.1
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)
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Net
Operating Income
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$
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59.4
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|
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$
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59.0
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$
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17.4
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|
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$
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19.7
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$
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13.8
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Net
Income
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$
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42.9
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|
|
$
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59.4
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$
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15.8
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$
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10.5
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|
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$
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14.0
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|
|
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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Net
Income per Share
(1)
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$
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1.18
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$
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1.63
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$
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0.43
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$
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0.29
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$
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0.38
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Book
Value per common share (period end)
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$
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18.23
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$
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16.87
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$
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18.23
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$
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17.61
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$
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16.87
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Return
on Average Equity (“ROE”)
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9.1
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%
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12.6
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%
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9.5
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%
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6.6
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%
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8.6
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%
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Operating
Return on Average Equity ("Operating ROE")
(2)
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|
12.6
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%
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12.5
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%
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10.6
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%
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12.4
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%
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|
8.5
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%
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Return
on Average Assets (“ROA”)
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1.4
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%
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|
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1.5
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%
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1.6
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%
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1.0
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%
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1.0
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%
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Net
Interest Margin
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1.63
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%
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1.64
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%
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1.76
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%
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1.62
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%
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1.61
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%
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Efficiency
Ratio
(3)
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32
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%
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|
|
34
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%
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|
|
33
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%
|
|
|
30
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%
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|
|
39
|
%
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|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
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Tier
1 Capital
(4)
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|
$
|
671
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|
|
$
|
654
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|
|
$
|
671
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|
|
$
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662
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|
$
|
654
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|
Total
Capital
(5)
|
|
$
|
706
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|
|
$
|
699
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|
|
$
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706
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|
|
$
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701
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|
|
$
|
699
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|
Risk-Weighted
Assets
|
|
$
|
2,732
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|
|
$
|
3,573
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$
|
2,732
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|
|
$
|
3,129
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|
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$
|
3,573
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|
Tier
1 Capital Ratio
(4)
|
|
|
24.6
|
%
|
|
|
18.3
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%
|
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|
24.6
|
%
|
|
|
21.1
|
%
|
|
|
18.3
|
%
|
Total
Capital Ratio
(5)
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25.8
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%
|
|
|
19.5
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%
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25.8
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%
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22.4
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%
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19.5
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%
|
Stockholders’
Equity
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$
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666
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$
|
614
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$
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666
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|
|
$
|
643
|
|
|
$
|
614
|
|
Stockholders’
Equity to Total Assets
|
|
|
17.9
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%
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|
11.5
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%
|
|
|
17.9
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%
|
|
|
15.8
|
%
|
|
|
11.5
|
%
|
Other
Comprehensive Income Account ("OCI")
|
|
|
(9
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)
|
|
|
(44
|
)
|
|
|
(9
|
)
|
|
|
(21
|
)
|
|
|
(44
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Leverage
(times)
(6)
|
|
|
5.6
|
|
|
|
8.7
|
|
|
|
5.6
|
|
|
|
6.3
|
|
|
|
8.7
|
|
Liquid
Assets / Total Assets
(7)
|
|
|
11.6
|
%
|
|
|
8.6
|
%
|
|
|
11.6
|
%
|
|
|
11.2
|
%
|
|
|
8.6
|
%
|
Liquid
Assets / Total Deposits
|
|
|
35.3
|
%
|
|
|
29.7
|
%
|
|
|
35.3
|
%
|
|
|
36.2
|
%
|
|
|
29.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accruing
Loans to Total Loans, net
|
|
|
1.4
|
%
|
|
|
0.0
|
%
|
|
|
1.4
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Allowance
for Credit Losses to Commercial Portfolio
|
|
|
3.5
|
%
|
|
|
2.0
|
%
|
|
|
3.5
|
%
|
|
|
3.5
|
%
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
3,723
|
|
|
$
|
5,351
|
|
|
$
|
3,723
|
|
|
$
|
4,067
|
|
|
$
|
5,351
|
|
Footnotes:
|
(1)
|
Net
Income per Share calculations are based on the average number of shares
outstanding during each
period.
|
|
|
Operating
ROE: Annualized net operating income divided by average stockholders’
equity.
|
|
|
Efficiency
ratio refers to consolidated operating expenses as a percentage of net
operating revenues.
|
|
|
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.
|
|
|
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.
|
|
|
Leverage
corresponds to assets divided by stockholders’
equity.
|
|
|
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.
|
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 September 30, 2009, Bladex had disbursed
accumulated credits of approximately $161 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Friday,
October 30, 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 December 29,
2009. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The Conference ID# for the replayed call is
96623186. For more information, please access http://
www.bladex.com
or contact:
Mr.
Christopher Schech
Chief
Financial Officer
Bladex
Calle 50
y Aquilino de la Guardia
Panama
City, Panama
Tel:
(507) 210-8630
E-mail
address: cschech@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
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