BLADEX
REPORTS FULL YEAR NET INCOME OF $54.9 MILLION; $1.50 PER SHARE
FOURTH
QUARTER NET INCOME OF $11.9 MILLION; $0.33 PER SHARE
PANAMA CITY, February 17, 2010
– Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the fourth quarter ended December 31,
2009.
Annual
Business Highlights
|
·
|
Net
income for 2009 amounted to $54.9 million compared to $55.1 million in
2008. Net interest margin increased to 1.62% in 2009, from
1.55% in 2008. The efficiency ratio improved from 42% in 2008
to 35% in 2009, while 2009 operating expenses remained 4% below 2008
levels.
|
|
·
|
The
Commercial Division’s net income for 2009 amounted to $34.8 million
compared to $59.1 million in 2008. Net operating income for
2009 amounted to $49.7 million compared to $58.4 million in
2008. The decreases during the year were due to lower average
loan portfolio balances and lower market interest rates, partially offset
by higher average lending spreads. The commercial
portfolio stood at $3.1 billion, an increase of 2% from December 31, 2008,
and a 17% increase from its lowest level at month-end May 2009.
Disbursements during the fourth quarter 2009 reached $1,217 million, a 16%
increase over the previous quarter, and a 78% increase from the fourth
quarter 2008.
|
|
·
|
The
Treasury Division reported net income for 2009 totaled $6.1 million,
compared to a net loss of $16.3 million in 2008, the result of higher
margins and trading gains.
|
|
·
|
The
Asset Management Division’s net income for 2009 was $14.1 million,
compared to $12.3 million in 2008. The $1.8 million increase
during the year was due to higher trading gains in the Investment Fund,
partially offset by a greater participation of minority
interests.
|
|
·
|
Liquidity
as of December 31, 2009 was $402 million, compared to $826 million as of
December 31, 2008, as the Bank gradually returns to historical liquidity
levels.
|
|
·
|
The
ratio of the allowance for credit losses in the commercial portfolio stood
at 3.2%, compared to 3.5% reported in the third quarter 2009, and 2.8% as
of December 31, 2008. The quarterly decrease was primarily the
net result of a shift in the portfolio composition towards better quality
risk.
|
|
·
|
During
2009, the book value per common share increased 17% to
$18.49. The Bank’s Tier 1 capital ratio as of December 31, 2009
was 25.8%, compared to 24.6% as of September 30, 2009, and 20.4% as of
December 31, 2008, while the leverage ratio as of these dates was 5.7x,
5.6x and 7.6x, respectively. The Bank’s equity consists
entirely of common shares.
|
CEO's Comments
"Bladex
made it through one of the most difficult years in recent financial history in
very good shape. The Bank’s net income at $54.9 million for 2009 was practically
the same as for 2008. Bladex’s capitalization, reflected in a Tier 1
ratio of 25.8% and leverage of 5.7 times, is stronger than the 20.4% and 7.6
times of a year ago, while efficiency improved from 42% to 35%, and the Bank’s
commercial portfolio grew by a full 17% after hitting its low point month-end in
May. Bladex’s liquidity position is ample, supported by a much more
diversified universe of funding sources, while reserve coverage is at
historically high levels, protecting a portfolio of solid and improving
quality. The only financial indicator lagging the Bank’s objectives
is the 8.6% ROE, itself a natural result of Bladex’s strong
capitalization.
Bladex’s
performance is particularly noteworthy when considered against the backdrop of a
Region whose economies had been growing at average annual rates of over 5% and
during 2009, suffered a 1.8% contraction. The impact of the economic
crisis on the Region's trade flows was even more dramatic: commerce during the
year contracted 24%, a figure without parallel since the late
1930s.
Bladex
managed the crisis without the need for any type of external support by calling
on its traditional strengths: a disciplined focus on a Region and a business it
knows well, excellence in credit and liquidity risk management, and a fiercely
competitive, skilled and cohesive team.
With
regards to the fourth quarter, Bladex was pleased to see portfolio growth
becoming more firmly established, credit quality continuing to improve, and
sustained levels of profitability despite a below average performance by the
Bank’s asset management division.
With the
worst of the crisis now apparently over, Bladex is excited to find itself with
the right combination of capital, liquidity, clients and skills to leverage the
opportunities of a significantly changed competitive and business
landscape.
A number
of Bladex’s competitors are still in the process of reorganizing their approach
to Latin America, or have exited the market altogether. Much more
importantly, however, the crisis has brought about a surge in intraregional
trade, Latin American companies selling to Latin American markets, which is
ideally suited to Bladex’s unique ability to provide clients with trade finance
support on a regional basis. Combined with the incipient recovery in
international trade flows and the internationalization many of the Region’s
companies, Bladex believes these trends will result in significant growth
opportunities for the Bank and is allocating resources accordingly. As a first
step, the Board of Directors has approved the establishment of two new
Representative Offices in Porto Alegre, Brazil, and in Monterrey, Mexico, as
part of a plan designed to capture as much of this new business as
possible. As Bladex re-leverages the balance sheet, the Bank’s ROE
levels will rise accordingly.
Over the
short term, the road forward is not likely to be smooth, as there are simply too
many financial, economic and political risks at play globally, all of which
impact Latin America and Bladex’s business, even if only in an indirect
manner. Nevertheless, Bladex is confident that 2010 marks the start
of a transformation in Bladex every bit as significant as when the Bank evolved
from being solely a bank–to-banks to the best trade finance platform in Latin
America.”
RESULTS
BY BUSINESS SEGMENT
COMMERCIAL
DIVISION
The
Commercial Division
incorporates the Bank’s core business from financial intermediation and fee
generation activities. Net income includes net interest income from
loans, fee income, net allocated operating expenses, the reversal (provision)
for loan and off-balance sheet credit losses, and any impairment on
assets.
(US$ million)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Commercial
Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
66.2
|
|
|
$
|
78.1
|
|
|
$
|
15.5
|
|
|
$
|
16.7
|
|
|
$
|
18.6
|
|
Non-interest
operating income
(1)
|
|
|
6.9
|
|
|
|
7.8
|
|
|
|
2.1
|
|
|
|
1.6
|
|
|
|
1.4
|
|
Net
operating revenues
(2)
|
|
|
73.1
|
|
|
|
85.9
|
|
|
|
17.6
|
|
|
|
18.3
|
|
|
|
20.0
|
|
Operating
expenses
|
|
|
(23.4
|
)
|
|
|
(27.5
|
)
|
|
|
(6.3
|
)
|
|
|
(5.3
|
)
|
|
|
(6.2
|
)
|
Net
operating income
(3)
|
|
|
49.7
|
|
|
|
58.4
|
|
|
|
11.2
|
|
|
|
13.0
|
|
|
|
13.8
|
|
Reversal
(provision) for loan and off-balance sheet credit losses,
net
|
|
|
(14.8
|
)
|
|
|
1.5
|
|
|
|
0.6
|
|
|
|
(1.2
|
)
|
|
|
0.7
|
|
Impairment
of assets, net of recoveries
|
|
|
(0.1
|
)
|
|
|
(0.8
|
)
|
|
|
(0.0
|
)
|
|
|
0.0
|
|
|
|
(0.4
|
)
|
NET
INCOME ATTRIBUTABLE TO BLADEX
|
|
$
|
34.8
|
|
|
$
|
59.1
|
|
|
$
|
11.8
|
|
|
$
|
11.8
|
|
|
$
|
14.0
|
|
4Q09
vs. 3Q09
The
Commercial Division accelerated portfolio growth in the fourth quarter 2009 as
market demand improved, reaching $3.1 billion, an 8% increase over the previous
quarter. The Division’s net income in the fourth quarter 2009 amounted to $11.8
million, nearly unchanged from the previous quarter. Net operating
income in the fourth quarter 2009 amounted to $11.2 million compared to $13.0
million in the third quarter 2009. The $1.7 million decrease in
operating income was the result of the combined effects of: (i) a $1.2 million
decrease in net interest income due to lower weighted average lending spreads on
average loan portfolio (-18 bps), partially offset by increased average loan
portfolio balances (+7%), mainly driven by demand from financial institutions;
(ii) a $1.0 million increase in operating expenses primarily due to seasonal
effects; and (iii) a $0.5 million increase in non-interest operating income
attributable mostly to increased commission income from the letter of credit
business.
4Q09
vs. 4Q08
Net
income from the Commercial Division decreased $2.2 million versus the fourth
quarter 2008 as a result of: (i) a $3.1 million decrease in net interest income
attributable mostly due to decreased average loan balances (-16%) as the Bank
readjusted its portfolio risk profile and boosted liquidity during the financial
crisis and decreased market interest rates, partially offset by an increase in
the average lending margins during the year (+63 bps); (ii) a $0.1 million
increase in operating expenses, and (iii) a $0.7 million increase in commissions
and fees.
The
following graph illustrates the trend in quarterly weighted average lending
spreads:
4Q09
vs. 3Q09
During
the quarter, the Bank disbursed credits totaling $1,217 million compared to
$1,050 million in the third quarter 2009, and $685 million in the fourth quarter
2008. The accelerated increase in demand primarily impacted the
letter of credit activities and the financial institutions portfolio. The
weighted average lending spreads on new loan disbursements decreased from 2.91%
in the third quarter 2009 to 2.02% in the fourth quarter 2009, mostly due to a
shift in the portfolio’s composition towards financial institutions, with an
overall favorable impact on portfolio quality.
As of
December 31, 2009, 43% of the loan portfolio consisted of loans to banks,
compared to 35% as of September 30, 2009, and 35% as of December 31,
2008.
2009
vs. 2008
During
2009, the Commercial Division’s net income amounted to $34.8 million, compared
to $59.1 million in 2008. The $24.3 million decrease is attributable
to the combined effects of: (i) a $11.9 million decrease in net interest income
due to lower average loan balances (-31%) and lower market interest rates,
partially offset by increased weighted average lending spreads (+88 bps); (ii) a
$0.9 million decrease in non-interest operating income as a result of decreased
commission income from the letter of credit business; (iii) $16.4 million in
provisions for loan and off-balance sheet credit losses, and (iv) $4.1 million
in lower operating expenses following cost control measures taken in early
2009.
The
following graph illustrates the trend in yearly weighted average 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. The Bank’s commercial portfolio balance reached $3.1
billion as of December 31, 2009, an 8% increase over the balance as of September
30, 2009, and 2% over the balance as of December 31, 2008. Similarly,
on an average basis, the commercial portfolio increased 7% in the fourth quarter
2009 compared to the previous quarter, and decreased 17% from the fourth quarter
2008. From its pre-crisis peak of $4.5 billion during the third quarter of 2008,
the average commercial portfolio declined 40% to $2.7 billion in the second
quarter of 2009 as the bank adjusted its portfolio composition to mitigate
risks, and boosted liquidity and capitalization levels. Since then, average
portfolio balances have grown 9% to $2.9 billion in the fourth quarter 2009 as
credit demand accelerates.
The
commercial portfolio continues to be short-term and trade-related in
nature. $2.2 billion, or 69%, of the commercial portfolio mature
within one year. Trade financing operations represent 62% of the
portfolio. Refer to Exhibit X for information relating to the Bank’s
commercial portfolio distribution by country and Exhibit XII for the Bank’s
distribution of credit disbursements by country.
TREASURY
DIVISION
The
Treasury Division
incorporates the Bank’s
liquidity management and investment securities activities. Net income
is presented net of allocated operating expenses, and includes net interest
income on treasury activities and net other income (expense) relating to
treasury activities
(12)
.
(US$ million)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Treasury
Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
2.0
|
|
|
$
|
3.0
|
|
|
$
|
0.5
|
|
|
$
|
1.3
|
|
|
$
|
(3.0
|
)
|
Non-interest
operating income (loss)
(1)
|
|
|
12.0
|
|
|
|
(12.4
|
)
|
|
|
0.7
|
|
|
|
1.6
|
|
|
|
(14.4
|
)
|
Net
operating revenues
(2)
|
|
|
14.0
|
|
|
|
(9.4
|
)
|
|
|
1.2
|
|
|
|
2.9
|
|
|
|
(17.5
|
)
|
Operating
expenses
|
|
|
(7.9
|
)
|
|
|
(6.9
|
)
|
|
|
(1.7
|
)
|
|
|
(1.8
|
)
|
|
|
(2.1
|
)
|
Net
operating income (loss)
(3,
12)
|
|
|
6.1
|
|
|
|
(16.3
|
)
|
|
|
(0.5
|
)
|
|
|
1.2
|
|
|
|
(19.6
|
)
|
NET
INCOME (LOSS) ATTRIBUTABLE TO BLADEX
|
|
$
|
6.1
|
|
|
$
|
(16.3
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
1.2
|
|
|
$
|
(19.6
|
)
|
4Q09
vs. 3Q09
In the
fourth quarter 2009, the Treasury Division posted a net loss of $0.5 million
compared to $1.2 million in net income during the third quarter
2009. The $1.7 million decrease is attributable mostly to: (i) a $0.9
million decrease in net interest income mainly from lower average balances in
the investment securities portfolio after sales were made in the third quarter
2009 to lock in gains; and (ii) a $0.9 million decrease in non-interest
operating income, mainly reflecting lower trading gains from available for sale
and trading securities, partially offset by increased gains from foreign
currency exchange.
2009
vs. 2008
The
Treasury Division reported net income of $6.1 million in 2009, compared to a net
loss of $16.3 million in 2008. The 2009 results were driven primarily
by a $24.4 million increase in non-interest operating income mostly attributable
to gains from trading securities. The 2008 results were impacted by a
$25.0 million accounting charge relating to securities sold under repurchase
agreements, accounted for as sales, partially offset by a $12.2 million gain
related to the application of FASB Statement No. 157 to value the Bank’s cross
currency swap portfolio.
The
trading portfolio as of December 31, 2009 amounted to $50 million, the same
amount as of September 30, 2009, and compared to $45 million as of December 31,
2008. The securities available for sale portfolio as of December 31,
2009 totaled $457 million, representing a 1% decrease from September 30, 2009
and a 25% decrease from December 31, 2008. The year-on-year decrease
reflects the sale of $147 million in book value of the securities portfolio,
which generated net gains of $0.5 million during 2009.
The
available for sale portfolio as of December 31, 2009 consisted entirely of
readily quoted Latin American securities, 79.8% of which were sovereign and
state-owned risk in nature (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 fourth quarter 2009, recorded a $3 million improvement in value
to -$6 million, reflecting mostly the increased market valuation of the
securities portfolio (refer to Exhibit I.)
Liquid
assets
(11)
decreased to $402 million as of December 31, 2009 compared to $431 million as of
September 30, 2009, and $826 million as of December 31, 2008. The
Bank is gradually reducing liquidity balances to historically prevalent levels
as funding markets improve.
The Bank
continues reducing its repurchase agreement obligations, while selectively
replacing bank borrowings to adjust liquidity levels and to improve funding
costs. Weighted average funding costs for the fourth quarter 2009
amounted to 1.75%, a decrease of 42 bps, or 19%, compared to the third quarter
2009, and a decrease of 183 bps, or 51%, compared to the fourth quarter
2008. Weighted average funding costs for 2009 stood at 2.38% compared
to 3.80% in 2008.
ASSET
MANAGEMENT DIVISION
The Asset
Management Division
incorporates the Bank’s
asset management activities.
The Division’s Investment
Fund follows primarily a Latin America macro strategy, utilizing a combination
of products (foreign exchange, equity indices, interest rate swaps, and credit
derivative products) to establish long and short positions in the
markets.
The
Division’s net income includes net interest income on the Investment Fund, as
well as net gains (losses) from Investment Fund trading, other related income
(loss), allocated operating expenses, and the participation of minority interest
in gains of the Investment Fund.
(US$ million)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Asset
Management Division:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (loss)
|
|
$
|
(3.4
|
)
|
|
$
|
(3.2
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(0.7
|
)
|
|
$
|
(0.9
|
)
|
Non-interest
operating income (loss)
(1)
|
|
|
25.4
|
|
|
|
21.3
|
|
|
|
3.5
|
|
|
|
5.5
|
|
|
|
3.6
|
|
Net
operating revenues
(2)
|
|
|
22.1
|
|
|
|
18.1
|
|
|
|
2.7
|
|
|
|
4.7
|
|
|
|
2.7
|
|
Operating
expenses
|
|
|
(6.8
|
)
|
|
|
(5.6
|
)
|
|
|
(1.9
|
)
|
|
|
(1.5
|
)
|
|
|
(1.4
|
)
|
Net
operating income (loss)
(3)
|
|
|
15.2
|
|
|
|
12.5
|
|
|
|
0.8
|
|
|
|
3.3
|
|
|
|
1.3
|
|
Net
income attributable to the redeemable noncontrolling
interest
|
|
|
(1.1
|
)
|
|
|
(0.2
|
)
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
|
(0.1
|
)
|
NET
INCOME ATTRIBUTABLE TO BLADEX
|
|
$
|
14.1
|
|
|
$
|
12.3
|
|
|
$
|
0.6
|
|
|
$
|
2.8
|
|
|
$
|
1.2
|
|
4Q09
vs. 3Q09
Net
income in the fourth quarter 2009 totaled $0.6 million, compared to net income
of $2.8 million in the prior quarter and net income of $1.2 million in the
fourth quarter 2008. The $2.2 million decrease in net income for the
quarter was mainly due to a $2.0 million decrease in non-interest operating
income attributable to lower gains from Investment Fund trading.
2009
vs. 2008
Net
income for 2009 amounted to $14.1 million compared to $12.3 million in
2008. The $1.8 million increase in net income during the year was due
to the combined effect of: a (i) $4.2 million increase in non-interest operating
income attributable to increased gains from Investment Fund trading, a (ii) $1.2
million increase in operating expenses, and a (iii) $0.9 million increase in net
income attributable to redeemable non-controlling interest..
As of
December 31, 2009, the Investment Fund’s asset value totaled $198 million,
compared to $189 million as of September 30, 2009 and $151 million as of
December 31, 2008. For the same dates, Bladex´s ownership of the Bladex Offshore
Feeder Fund was 82.34%, 85.53% and 96.89%, respectively, with remaining balances
owned by third party investors.
CONSOLIDATED
RESULTS OF OPERATIONS
KEY
FINANCIAL FIGURES AND RATIOS
The
following table illustrates the consolidated results of operations of the Bank
for the periods indicated below:
(US$ million, except percentages and per share amounts)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Net
Interest Income
|
|
$
|
64.8
|
|
|
$
|
77.9
|
|
|
$
|
15.2
|
|
|
$
|
17.4
|
|
|
$
|
14.7
|
|
Net
Operating Income (Loss) by Business Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Division
|
|
$
|
49.7
|
|
|
$
|
58.4
|
|
|
$
|
11.2
|
|
|
$
|
13.0
|
|
|
$
|
13.8
|
|
Treasury
Division
|
|
$
|
6.1
|
|
|
$
|
(16.3
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
1.2
|
|
|
$
|
(19.6
|
)
|
Asset
Management Division
|
|
$
|
15.2
|
|
|
$
|
12.5
|
|
|
$
|
0.8
|
|
|
$
|
3.3
|
|
|
$
|
1.3
|
|
Net
Operating Income
|
|
$
|
70.9
|
|
|
$
|
54.6
|
|
|
$
|
11.6
|
|
|
$
|
17.4
|
|
|
$
|
(4.5
|
)
|
Net
Income
|
|
$
|
54.9
|
|
|
$
|
55.1
|
|
|
$
|
11.9
|
|
|
$
|
15.8
|
|
|
$
|
(4.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income per Share
(5)
|
|
$
|
1.50
|
|
|
$
|
1.51
|
|
|
$
|
0.33
|
|
|
$
|
0.43
|
|
|
$
|
(0.12
|
)
|
Book
Value per common share (period end)
|
|
$
|
18.49
|
|
|
$
|
15.77
|
|
|
$
|
18.49
|
|
|
$
|
18.23
|
|
|
$
|
15.77
|
|
Return
on Average Equity (“ROE”)
|
|
|
8.6
|
%
|
|
|
9.0
|
%
|
|
|
7.1
|
%
|
|
|
9.5
|
%
|
|
|
-3.0
|
%
|
Operating
Return on Average Equity ("Operating ROE")
(6)
|
|
|
11.1
|
%
|
|
|
8.9
|
%
|
|
|
6.9
|
%
|
|
|
10.6
|
%
|
|
|
-3.1
|
%
|
Return
on Average Assets (“ROA”)
|
|
|
1.4
|
%
|
|
|
1.1
|
%
|
|
|
1.3
|
%
|
|
|
1.6
|
%
|
|
|
-0.4
|
%
|
Net
Interest Margin
|
|
|
1.62
|
%
|
|
|
1.55
|
%
|
|
|
1.60
|
%
|
|
|
1.76
|
%
|
|
|
1.24
|
%
|
Efficiency
Ratio
(7)
|
|
|
35
|
%
|
|
|
42
|
%
|
|
|
46
|
%
|
|
|
33
|
%
|
|
|
185
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier
1 Capital
(8)
|
|
$
|
679
|
|
|
$
|
640
|
|
|
$
|
679
|
|
|
$
|
671
|
|
|
$
|
640
|
|
Total
Capital
(9)
|
|
$
|
712
|
|
|
$
|
680
|
|
|
$
|
712
|
|
|
$
|
706
|
|
|
$
|
680
|
|
Risk-Weighted
Assets
|
|
$
|
2,633
|
|
|
$
|
3,144
|
|
|
$
|
2,633
|
|
|
$
|
2,732
|
|
|
$
|
3,144
|
|
Tier
1 Capital Ratio
(8)
|
|
|
25.8
|
%
|
|
|
20.4
|
%
|
|
|
25.8
|
%
|
|
|
24.6
|
%
|
|
|
20.4
|
%
|
Total
Capital Ratio
(9)
|
|
|
27.0
|
%
|
|
|
21.6
|
%
|
|
|
27.0
|
%
|
|
|
25.8
|
%
|
|
|
21.6
|
%
|
Stockholders’
Equity
|
|
$
|
676
|
|
|
$
|
574
|
|
|
$
|
676
|
|
|
$
|
666
|
|
|
$
|
574
|
|
Stockholders’
Equity to Total Assets
|
|
|
17.4
|
%
|
|
|
13.2
|
%
|
|
|
17.4
|
%
|
|
|
17.9
|
%
|
|
|
13.2
|
%
|
Other
Comprehensive Income Account ("OCI")
|
|
$
|
(6
|
)
|
|
$
|
(72
|
)
|
|
$
|
(6
|
)
|
|
$
|
(9
|
)
|
|
$
|
(72
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leverage
(times)
(10)
|
|
|
5.7
|
|
|
|
7.6
|
|
|
|
5.7
|
|
|
|
5.6
|
|
|
|
7.6
|
|
Liquid
Assets / Total Assets
(11)
|
|
|
10.4
|
%
|
|
|
19.6
|
%
|
|
|
10.4
|
%
|
|
|
11.6
|
%
|
|
|
18.9
|
%
|
Liquid
Assets / Total Deposits
|
|
|
32.0
|
%
|
|
|
73.1
|
%
|
|
|
32.0
|
%
|
|
|
35.3
|
%
|
|
|
70.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Accruing
Loans to Total Loans, net
|
|
|
1.8
|
%
|
|
|
0.0
|
%
|
|
|
1.8
|
%
|
|
|
1.4
|
%
|
|
|
0.0
|
%
|
Allowance
for Credit Losses to Commercial Portfolio
|
|
|
3.2
|
%
|
|
|
2.8
|
%
|
|
|
3.2
|
%
|
|
|
3.5
|
%
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
3,879
|
|
|
$
|
4,363
|
|
|
$
|
3,879
|
|
|
$
|
3,723
|
|
|
$
|
4,363
|
|
The
following graphs illustrate the trends in Net Income and Return on Average
Stockholders’ Equity for the periods indicated:
NET
INTEREST INCOME AND MARGINS
(US$ million, except percentages)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Net
Interest Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Division
|
|
$
|
66.2
|
|
|
$
|
78.1
|
|
|
$
|
15.5
|
|
|
$
|
16.7
|
|
|
$
|
18.6
|
|
Treasury
Division
|
|
|
2.0
|
|
|
|
3.0
|
|
|
|
0.5
|
|
|
|
1.3
|
|
|
|
(3.0
|
)
|
Asset
Management Division
|
|
|
(3.4
|
)
|
|
|
(3.2
|
)
|
|
|
(0.8
|
)
|
|
|
(0.7
|
)
|
|
|
(0.9
|
)
|
Consolidated
|
|
$
|
64.8
|
|
|
$
|
77.9
|
|
|
$
|
15.2
|
|
|
$
|
17.4
|
|
|
$
|
14.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Interest Margin
*
|
|
|
1.62
|
%
|
|
|
1.55
|
%
|
|
|
1.60
|
%
|
|
|
1.76
|
%
|
|
|
1.24
|
%
|
* Net
interest income divided by average balance of interest-earning
assets.
4Q09
vs. 3Q09
For the
fourth quarter 2009, net interest income amounted to $15.2 million, a decrease
of $2.2 million, or 13%, from the third quarter 2009. The quarterly
decrease in net interest income was mainly due to: (i) lower net interest income
from the Commercial Division as a result of lower weighted average lending
spreads on the average loan portfolio from increased lending to banks, partially
offset by higher average loan portfolio balances, and (ii) lower net interest
income from the Treasury Division as a result of lower average balances in the
investment securities portfolio following sales in the third quarter 2009 to
lock in trading gains.
Net
interest margin stood at 1.60% in the fourth quarter 2009, compared to 1.76% in
the third quarter 2009. The quarter-on-quarter decrease was mainly
driven by (i) increased lending to financial institutions, which command tighter
margins due to a lower risk profile and by (ii) lower average balances and
yields in the investment securities portfolio following the sale of trading
securities in the third quarter 2009.
4Q09
vs. 4Q08
Compared
to the fourth quarter 2008, net interest income increased $0.5 million, while
the net interest margin increased 36 bps in the fourth quarter
2009. The increase is attributable mostly to higher average lending
margins, which more than offset a decrease in average balances.
2009
vs. 2008
Net
interest income amounted to $64.8 million in 2009 compared to $77.9 million in
2008. The $13.1 million year-on-year variance was due to (i) lower
average loan and investment securities portfolio balances (-$15.9 million), and
(ii) lower market base rates (-$12.6 million); partially offset by increased
weighted average lending margins during 2009 (+$15.6 million).
FEES
AND COMMISSIONS
(US$ million)
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Letters
of credit
|
|
$
|
5.0
|
|
|
$
|
4.7
|
|
|
$
|
1.8
|
|
|
$
|
1.2
|
|
|
$
|
0.8
|
|
Guarantees
|
|
|
1.0
|
|
|
|
1.1
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Loans
|
|
|
0.2
|
|
|
|
0.6
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.1
|
|
Third
party investor (BAM)
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
0.3
|
|
|
|
0.0
|
|
|
|
0.0
|
|
Other*
|
|
|
0.2
|
|
|
|
0.8
|
|
|
|
0.1
|
|
|
|
0.0
|
|
|
|
0.3
|
|
Fees
and Commissions, net
|
|
$
|
6.7
|
|
|
$
|
7.3
|
|
|
$
|
2.4
|
|
|
$
|
1.5
|
|
|
$
|
1.3
|
|
*
Net of commission expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q09
vs. 3Q09 and vs. 4Q08
Fees and
commissions amounted to $2.4 million in the fourth quarter 2009, compared to
$1.5 million in the third quarter 2009 and $1.3 million in the fourth quarter
2008. The increase was mainly due to increased commission income from
the letter of credit business, as well as higher commission income from third
party investors in the Asset Management Division.
2009
vs. 2008
Fees and
commissions amounted to $6.7 million in 2009 compared to $7.3 million in 2008,
mainly driven by lower loan commissions from reduced loan balances and letters
of credit activity, reflecting credit risk and demand considerations in the
first half of 2009.
PORTFOLIO
QUALITY AND PROVISION FOR CREDIT LOSSES
(In US$ million)
|
|
31-Dec-08
|
|
|
31-Mar-09
|
|
|
30-Jun-09
|
|
|
30-Sep-09
|
|
|
31-Dec-09
|
|
Allowance
for Loan Losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
69.1
|
|
|
$
|
54.6
|
|
|
$
|
80.6
|
|
|
$
|
90.2
|
|
|
$
|
89.9
|
|
Provisions
(reversals)
|
|
|
(14.5
|
)
|
|
|
25.8
|
|
|
|
8.9
|
|
|
|
(0.4
|
)
|
|
|
(16.1
|
)
|
Recoveries,
net of charge-offs
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.8
|
|
|
|
0.0
|
|
|
|
(0.0
|
)
|
End
of period balance
|
|
$
|
54.6
|
|
|
$
|
80.6
|
|
|
$
|
90.2
|
|
|
$
|
89.9
|
|
|
$
|
73.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve
for Losses on Off-balance Sheet Credit Risk:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
16.9
|
|
|
$
|
30.7
|
|
|
$
|
10.1
|
|
|
$
|
10.3
|
|
|
$
|
11.8
|
|
Provisions
(reversals)
|
|
|
13.8
|
|
|
|
(20.6
|
)
|
|
|
0.2
|
|
|
|
1.5
|
|
|
|
15.5
|
|
End
of period balance
|
|
$
|
30.7
|
|
|
$
|
10.1
|
|
|
$
|
10.3
|
|
|
$
|
11.8
|
|
|
$
|
27.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Allowance for Credit Losses
|
|
$
|
85.4
|
|
|
$
|
90.7
|
|
|
$
|
100.5
|
|
|
$
|
101.7
|
|
|
$
|
101.0
|
|
During
the fourth quarter 2009, the allowance for credit losses decreased $0.7 million,
reflecting the combination of: (i) a $0.3 million increase in specific reserves
assigned to a loan in the restructuring process, (ii) a $16.5 million reduction
in generic loan loss reserves driven by decreased loss exposure within the
portfolio, which more than offset additional reserve requirements from loan
portfolio growth, and (iii) a $15.5 million increase in generic off-balance
sheet credit risk reserves reflecting the increased portfolio balances of
acceptances and contingencies (mostly letters of credit).
The ratio
of the allowance for credit losses to the commercial portfolio stood at 3.2% as
of December 31, 2009, compared to 3.5% as of September 30, 2009, and 2.8% as of
December 31, 2008.
OPERATING
EXPENSES
|
|
2009
|
|
|
2008
|
|
|
|
4Q09
|
|
|
|
3Q09
|
|
|
|
4Q08
|
|
Salaries
and other employee expenses
|
|
$
|
20.2
|
|
|
$
|
20.2
|
|
|
$
|
5.1
|
|
|
$
|
4.7
|
|
|
$
|
4.5
|
|
Depreciation,
amortization and impairment of premises and equipment
|
|
|
2.7
|
|
|
|
3.7
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.7
|
|
Professional
services
|
|
|
3.3
|
|
|
|
3.8
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
|
1.3
|
|
Maintenance
and repairs
|
|
|
1.1
|
|
|
|
1.4
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
0.4
|
|
Expenses
from the investment fund
|
|
|
3.5
|
|
|
|
2.1
|
|
|
|
0.8
|
|
|
|
0.6
|
|
|
|
0.4
|
|
Other
operating expenses
|
|
|
7.4
|
|
|
|
8.9
|
|
|
|
2.1
|
|
|
|
1.6
|
|
|
|
2.5
|
|
Total
Operating Expenses
|
|
$
|
38.2
|
|
|
$
|
40.0
|
|
|
$
|
9.9
|
|
|
$
|
8.5
|
|
|
$
|
9.7
|
|
The
Bank’s efficiency ratio was 46% in the fourth quarter, compared to 33% in the
third quarter 2009, and 185% in the fourth quarter 2008. For 2009,
the efficiency ratio stood at 35% compared to 42% in 2008.
Operating
expenses during the fourth quarter 2009 increased to $9.9 million, compared to
$8.5 million in the third quarter 2009, and $9.7 million in the fourth quarter
2008. The quarterly increase is attributable to an increase in
salaries and other employee expenses due to increased average headcount and
seasonal effects, and an increase in expenses from the Investment Fund due to
higher expenses pertaining to third party interests in the Investment
Fund.
Operating
expenses for 2009 amounted to $38.2 million compared to $40.0 million in
2008. The $1.8 million or 4% decrease in operating expenses was
mainly the effect of cost control measures implemented in early 2009, partially
offset by increased operating expenses and third party investors-related
expenses in the Investment Fund.
OTHER
EVENTS
§
|
Quarterly Dividend Payment:
On January 21, 2010, the Bank announced a quarterly common dividend
payment of US$0.15 per share related to the fourth quarter 2009. The
dividend was paid on February 8, 2010, to stockholders registered as of
the January 29, 2010 record date.
|
§
|
Closing of Two-Year Syndicated
Loan in Asia:
On December 9, 2009, the Bank announced the
successful closing of a $113 million two-year syndicated loan structured
by Mizuho Corporate Bank, Ltd. through the participation of ten commercial
banks from Taiwan and Hong Kong. This second syndication
involving Asian markets further diversifies the Bank’s funding sources,
and expands Bladex’s network of Asian correspondent
banks.
|
Note:
Various numbers and
percentages set forth in this press release have been rounded and, accordingly,
may not total exactly.
Footnotes:
|
(1)
|
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).
|
(2)
|
Net
Operating Revenues refers to net interest income plus non-interest
operating income.
|
|
(3)
|
Net
Operating Income (Loss) refers to net interest income plus non-interest
operating income, minus operating
expenses.
|
|
(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 December 31, 2009, Bladex had disbursed
accumulated credits of approximately $162 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Thursday,
February 18, 2010 at 10:00 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 April 18,
2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
29285679. 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