PANAMA CITY, April 20 /PRNewswire-FirstCall/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the first quarter ended
March 31, 2010.
First Quarter Business Highlights
-- Net Income (*) for the first quarter 2010 amounted to
$10.1 million, compared to
$11.9 million in the fourth quarter
2009, and $16.7 million in the first
quarter 2009. Net interest margin reached 1.71% in the first
quarter 2010, up from 1.60% in the fourth quarter 2009, and 1.50%
in the first quarter 2009. First quarter 2010 operating expenses
increased 1% over the fourth quarter 2009, and decreased 10% from
the first quarter 2009.
-- The Commercial Division's Net Income for the first quarter
2010 amounted to $14.2 million,
mainly driven by portfolio growth and the impact of an improved
risk profile on provisions, compared to $11.8 million in the fourth quarter 2009, and
$7.5 million in the first quarter
2009. The average commercial portfolio balances stood at
$3.1 billion, an increase of 5% from
the fourth quarter 2009, and a 3% increase compared to the first
quarter 2009. Disbursements during the first quarter 2010 reached
$1,254 million, a 3% increase over
the previous quarter, and a 51% increase from the first quarter
2009.
-- The Treasury Division reported a Net Loss in the first
quarter 2010 of $2.8 million,
compared to a Net Loss of $0.5
million in the fourth quarter 2009, and $1.0 million in Net Income in the first quarter
2009. The first quarter 2010 loss was mostly attributable to net
losses on the valuation of hedging instruments stemming from the
downward trend in market interest rates. The Bank's weighted
average funding costs decreased 18% quarter-on-quarter to
1.43%.
-- The Asset Management Division reported a Net Loss in the
first quarter 2010 of $1.4 million,
compared to Net Income of $0.6
million in the fourth quarter 2009, and Net Income of
$8.2 million in the first quarter
2009. The loss in the first quarter 2010 was mostly the result of a
$1.5 million trading losses in the
Investment Fund.
-- The book value per common share increased 1% compared to the
previous quarter to $18.59 in the
first quarter 2010, up 13% compared to the first quarter 2009. The
Bank's Tier 1 capital ratio as of March 31,
2010 was 24.6%, compared to 25.8% as of December 31, 2009, and 21.7% as of March 31, 2009, while the leverage ratio as of
these dates was 5.8x, 5.7x, and 6.8x, respectively. The Bank's
equity consists entirely of common shares.
(*) Net income attributable to Bladex ("Net Income").
CEO's Comments
"The environment Bladex faced during the first quarter continued
to reflect the combined impact of a gradual recovery in economic
growth rates and the Region's credit, improved liquidity levels and
lower cost of funds, and risk levels that appear to have
stabilized. Within this scenario, Bladex was quite pleased to see
that, for the first time in four years, the seasonably weak January
through March period recorded an expansion in average portfolio
balances.
"The careful re-leveraging of the Bank, based on a prudent
expansion of Bladex's franchise to service the increasing numbers
of Latin American companies doing business regionally, remains at
the core of what the Bank has planned for 2010. In doing so, Bladex
is operating with the benefit of a very strong capitalization that
allows ample room for growth, along with an expanding Commercial
Division team and footprint, developing opportunities in market
niches where the Bank's competitive position is especially strong.
The results of these efforts will take some time to fully bear
fruit but, judging from the progress achieved in the previous three
months, the trends are encouraging indeed. A larger portfolio will
result in higher revenues, decreased concentrations and improved
ROE levels.
"The Treasury and Asset Management divisions struggled a bit
during the quarter. From a medium term perspective, however, Bladex
remains confident about their performance. The Asset Management
Division has operated profitably in 12 out of 16 quarters since its
inception in 2006, and has contributed a net of more than
$43 million in Net Income to the
Bank's results. Most importantly for the long term, the Fund's
balances under management continue to gradually increase. For its
part, the Treasury Division's results for the quarter were impacted
by the valuation of interest rate swaps used to hedge the interest
rate risk of the Bank's securities portfolio, a cost Bladex
considers well worth paying.
"In conclusion, Bladex possesses all of the elements needed to
execute the strategy for the remainder of 2010, while we continue
positioning the Bank for significantly improved results and value
over the next few years."
CONSOLIDATED RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND RATIOS
The following table illustrates the consolidated results of
operations of the Bank for the periods indicated below:
(US$ million, except percentages and
per share amounts) 1Q10 4Q09 1Q09
Net Interest Income $16.3 $15.2 $15.4
Net Operating Income (Loss) by
Business Segment:
Commercial Division $10.6 $11.2 $12.8
Treasury Division ($2.8) ($0.5) $1.0
Asset Management Division ($1.7) $0.8 $8.5
Net Operating Income $6.1 $11.6 $22.3
Net income $9.8 $12.1 $17.0
Net income (loss) attributable to the
redeemable noncontrolling interest ($0.3) $0.2 $0.3
Net Income attributable to Bladex $10.1 $11.9 $16.7
Net Income per Share (1) $0.28 $0.33 $0.46
Book Value per common share (period
end) $18.59 $18.49 $16.50
Return on Average Equity ("ROE") 6.1% 7.1% 11.4%
Operating Return on Average Equity
("Operating ROE") (2) 3.7% 6.9% 15.2%
Return on Average Assets ("ROA") 1.1% 1.3% 1.6%
Net Interest Margin 1.71% 1.60% 1.50%
Efficiency Ratio (3) 62% 46% 33%
Tier 1 Capital (4) $684 $679 $655
Total Capital (5) $718 $712 $693
Risk-Weighted Assets $2,779 $2,633 $3,014
Tier 1 Capital Ratio (4) 24.6% 25.8% 21.7%
Total Capital Ratio (5) 25.8% 27.0% 23.0%
Stockholders' Equity $681 $676 $601
Stockholders' Equity to Total Assets 17.2% 17.4% 14.6%
Other Comprehensive Income Account
("OCI") ($6) ($6) ($57)
Leverage (times) (6) 5.8 5.7 6.8
Liquid Assets / Total Assets (7) 8.3% 10.4% 13.7%
Liquid Assets / Total Deposits 24.2% 32.0% 46.3%
Non-Accruing Loans to Total Loans, net 1.8% 1.8% 0.0%
Allowance for Credit Losses to
Commercial Portfolio 3.0% 3.2% 3.2%
Total Assets $3,962 $3,879 $4,108
Footnotes:
(1) Net Income per Share calculations are based on the average
number of shares outstanding during each period.
(2) Operating ROE: Annualized net operating income divided by
average stockholders' equity.
(3) Efficiency ratio refers to consolidated operating expenses
as a percentage of net operating revenues.
(4) Tier 1 Capital is calculated according to 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
Basel I capital adequacy guidelines.
(5) Total Capital refers to Tier 1 Capital plus Tier 2 Capital,
based on Basel I capital adequacy guidelines. Total Capital ratio
refers to Total Capital as a percentage of risk weighted
assets.
(6) Leverage corresponds to assets divided by stockholders'
equity.
(7) 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 March 31, 2010,
Bladex had disbursed accumulated credits of approximately
$163 billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Wednesday, April 21, 2010
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 June 22, 2010.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is 49698537.
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
SOURCE Banco Latinoamericano de Comercio Exterior, S.A.