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
o
(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
o
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.
April 20,
2010
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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 FIRST QUARTER 2010 NET INCOME OF $10.1 MILLION; $0.28
PER
SHARE.
PANAMA CITY, April 20, 2010
–
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
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·
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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.
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·
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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.
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·
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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%.
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·
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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.
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·
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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.
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(*)
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)
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1Q10
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4Q09
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1Q09
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Net
Interest Income
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$
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16.3
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$
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15.2
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$
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15.4
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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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10.6
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$
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11.2
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$
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12.8
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Treasury
Division
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$
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(2.8
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)
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$
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(0.5
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)
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$
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1.0
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Asset
Management Division
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$
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(1.7
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)
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$
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0.8
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$
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8.5
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Net
Operating Income
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$
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6.1
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$
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11.6
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$
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22.3
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Net
income
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$
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9.8
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$
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12.1
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$
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17.0
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Net
income (loss) attributable to the redeemable noncontrolling
interest
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$
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(0.3
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)
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$
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0.2
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$
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0.3
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Net
Income attributable to Bladex
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$
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10.1
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$
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11.9
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$
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16.7
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|
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Net
Income per Share
(1)
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$
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0.28
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$
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0.33
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$
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0.46
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Book
Value per common share (period end)
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$
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18.59
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$
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18.49
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$
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16.50
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Return
on Average Equity (“ROE”)
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6.1
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%
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7.1
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%
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11.4
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%
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Operating
Return on Average Equity ("Operating ROE")
(2)
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3.7
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%
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6.9
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%
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15.2
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%
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Return
on Average Assets (“ROA”)
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1.1
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%
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1.3
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%
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1.6
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%
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Net
Interest Margin
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1.71
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%
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1.60
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%
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1.50
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%
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Efficiency
Ratio
(3)
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62
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%
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46
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%
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33
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%
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|
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|
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|
|
|
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|
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Tier
1 Capital
(4)
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$
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684
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$
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679
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$
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655
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Total
Capital
(5)
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$
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718
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$
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712
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$
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693
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Risk-Weighted
Assets
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$
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2,779
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$
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2,633
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$
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3,014
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Tier
1 Capital Ratio
(4)
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24.6
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%
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25.8
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%
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21.7
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%
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Total
Capital Ratio
(5)
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25.8
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%
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27.0
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%
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23.0
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%
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Stockholders’
Equity
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$
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681
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$
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676
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$
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601
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Stockholders’
Equity to Total Assets
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17.2
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%
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17.4
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%
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14.6
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%
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Other
Comprehensive Income Account ("OCI")
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$
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(6
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)
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$
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(6
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)
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$
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(57
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)
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|
|
|
|
|
|
|
|
|
|
|
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Leverage
(times)
(6)
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5.8
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5.7
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6.8
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Liquid
Assets / Total Assets
(7)
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8.3
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%
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10.4
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%
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13.7
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%
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Liquid
Assets / Total Deposits
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24.2
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%
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32.0
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%
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46.3
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%
|
|
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|
|
|
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|
|
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Non-Accruing
Loans to Total Loans, net
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1.8
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%
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1.8
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%
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0.0
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%
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Allowance
for Credit Losses to Commercial Portfolio
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3.0
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%
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3.2
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%
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3.2
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%
|
|
|
|
|
|
|
|
|
|
|
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Total
Assets
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$
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3,962
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$
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3,879
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$
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4,108
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Footnotes:
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(1)
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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)
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Efficiency
ratio refers to consolidated operating expenses as a percentage of net
operating revenues.
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(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.
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|
(5)
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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)
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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.
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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.
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|
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
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