PANAMA CITY, July 21 /PRNewswire-FirstCall/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the second quarter
ended June 30, 2010.
Second Quarter Business Highlights
- Net Income (*) for the second quarter 2010 amounted to
$1.7 million, compared to
$10.1 million in the first quarter
2010, and $10.5 million in the second
quarter 2009; the decline was driven by trading losses in the Asset
Management Division.
- During the quarter, the Commercial Portfolio grew $305 million, or 9%. Year-to-date, the
commercial portfolio has grown $436
million, or 14%. Compared to June 30, 2009, the portfolio has expanded
24%.
- Net interest income in the second quarter 2010 was $17.2 million, a 6% increase over the previous
period. Fees and commissions grew 17% during the quarter,
reaching $2.8 million. On a
year-to date-basis, fees and commissions have grown 78%.
- The Bank's weighted average cost of funds decreased 17bps, or
12%, compared to the first quarter 2010, and 125bps, or 50%,
compared to the second quarter 2009. As of June 30, 2010 deposit balances increased 11% over
the previous quarter and 20% year-on-year.
- Portfolio quality continued to improve, as non-accrual loans
declined 12% compared to the previous quarter to $45 million.
- Second quarter 2010 operating expenses were $10.0 million, the same level as the first
quarter 2010, and 16% higher than the second quarter 2009, as
average commercial portfolio balances grew 21% year-on-year.
- The Commercial Division recorded a $2.4
million, or 23%, increase in operating income during the
quarter, as business grew across all customer segments and the new
offices in Porto Alegre and
Monterrey came on line. The Treasury Division reported a Net
Loss (*) in the second quarter of $2.8
million, unchanged from the previous period. While the
Division has no open interest or currency positions, the results
were driven by unrealized net losses on the valuations of hedging
instruments used, and by valuations of the $51 million securities trading portfolio.
- The Asset Management Division reported a Net Loss in the second
quarter 2010 of $9.4 million,
compared to a Net Loss of $1.4
million in the first quarter 2010, and Net Income of
$2.5 million in the second quarter
2009. The loss in the second quarter 2010 was related to
trading losses in the Investment Fund, as volatility and Latin
American market correlations with European markets peaked during
the quarter.
- The Bank's Tier 1 capital ratio as of June 30, 2010 was 23.4%, compared to 24.6% as of
March 31, 2010, and 21.1% as of
June 30, 2009, while the leverage
ratio as of these dates was 6.6x, 5.8x, and 6.3x,
respectively.
(*) Net income or loss attributable to Bladex ("Net Income", or
"Net Loss").
CEO's Comments
Mr. Jaime Rivera, Bladex's Chief
Executive Officer, stated the following regarding the Bank's
results: "Bladex's second quarter results demonstrate the Bank's
ability to leverage the Region's recovering trade flows, expand its
operation and grow the core business. Unfortunately, trading
losses in the Asset Management Division masked the substantial
progress made in just about all other aspects of Bladex's
business.
Bladex posted strong results in its core business, with an
expanding commercial portfolio and strong fee generation.
Trade flows continue to expand, economies are in generally
good shape, and investment levels across most of the Region are
rising. Working off this favorable environment, Bladex
continues to expand its client base and develop new markets.
The Bank has opened two new representative offices and just
received Board approval to open the next. As a result, the
commercial portfolio grew 9% during the quarter, bringing
year-to-date growth to 14%, and growth during the previous twelve
months to 24%. Disbursements in the second quarter were
$1.6 billion, 25% ahead of the
previous period. Fees and commissions are running 78% ahead
of last year.
Bladex's cost of funds has continued to decline and is now 142
bps less than this time last year. Crucially, credit quality,
already nearing the Bank's historical standards, continues to
improve. The Bank's capitalization remains strong (Tier 1 of
23.4%), deposits are growing, and liquidity is ample.
Expenses are running higher than last year, but are doing so
because of a good reason: Bladex is investing in the growth
of the Commercial Division.
The trading losses within the Asset Management Division stemmed
from an unusually strong correlation that developed between Latin
American positions and some EU sovereign risk, particularly while
the Greek crisis was in full swing in April and May. The
Asset Management Division is reviewing its trading strategy in
light of this new reality, and the Bank expects the Division to
return to its usual performance levels as markets stabilize.
With all of the Bank's other indicators showing clear progress,
management will continue to focus its efforts on the execution of
Bladex's medium-term plan designed to achieve scale, stability and
attractive returns," Mr. Rivera concluded.
CONSOLIDATED RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND RATIOS
The following table illustrates the consolidated results of
operations of the Bank for the periods indicated below:
(US$ million, except percentages
and per share amounts)
|
6M10
|
6M09
|
2Q10
|
1Q10
|
2Q09
|
|
Net Interest Income
|
$33.5
|
$32.2
|
$17.2
|
$16.3
|
$16.8
|
|
Net Operating Income (Loss) by
Business Segment:
|
|
|
|
|
|
|
Commercial
Division
|
$23.4
|
$25.4
|
$13.0
|
$10.6
|
$12.7
|
|
Treasury
Division
|
($5.5)
|
$5.4
|
($2.8)
|
($2.8)
|
$4.4
|
|
Asset Management
Division
|
($13.5)
|
$11.1
|
($11.8)
|
($1.7)
|
$2.6
|
|
Net Operating Income
|
$4.4
|
$41.9
|
($1.6)
|
$6.1
|
$19.7
|
|
Net income
|
$9.0
|
$27.6
|
($0.7)
|
$9.8
|
$10.6
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
($2.8)
|
$0.4
|
($2.4)
|
($0.3)
|
$0.1
|
|
Net Income attributable to
Bladex
|
$11.8
|
$27.2
|
$1.7
|
$10.1
|
$10.5
|
|
|
|
|
|
|
|
|
Net Income per Share
(1)
|
$0.32
|
$0.75
|
$0.05
|
$0.28
|
$0.29
|
|
Book Value per common share
(period end)
|
$18.35
|
$17.61
|
$18.35
|
$18.59
|
$17.61
|
|
Return on Average Equity
(“ROE”)
|
3.5%
|
8.9%
|
1.0%
|
6.1%
|
6.6%
|
|
Operating Return on Average
Equity ("Operating ROE") (2)
|
1.3%
|
13.8%
|
-1.0%
|
3.7%
|
12.4%
|
|
Return on Average Assets
(“ROA”)
|
0.6%
|
1.3%
|
0.2%
|
1.1%
|
1.0%
|
|
Net Interest Margin
|
1.69%
|
1.56%
|
1.67%
|
1.71%
|
1.62%
|
|
Efficiency Ratio (3)
|
82%
|
32%
|
120%
|
62%
|
30%
|
|
|
|
|
|
|
|
|
Tier 1 Capital (4)
|
$680
|
$662
|
$680
|
$684
|
$662
|
|
Total Capital (5)
|
$716
|
$701
|
$716
|
$718
|
$701
|
|
Risk-Weighted Assets
|
$2,899
|
$3,129
|
$2,899
|
$2,779
|
$3,129
|
|
Tier 1 Capital Ratio
(4)
|
23.4%
|
21.1%
|
23.4%
|
24.6%
|
21.1%
|
|
Total Capital Ratio
(5)
|
24.7%
|
22.4%
|
24.7%
|
25.8%
|
22.4%
|
|
Stockholders’ Equity
|
$673
|
$643
|
$673
|
$681
|
$643
|
|
Stockholders’ Equity to Total
Assets
|
15.2%
|
15.8%
|
15.2%
|
17.2%
|
15.8%
|
|
Other Comprehensive Income
Account ("OCI")
|
($11)
|
($21)
|
($11)
|
($6)
|
($21)
|
|
|
|
|
|
|
|
|
Leverage (times) (6)
|
6.6
|
6.3
|
6.6
|
5.8
|
6.3
|
|
Liquid Assets / Total Assets
(7)
|
13.5%
|
11.2%
|
13.5%
|
8.3%
|
11.2%
|
|
Liquid Assets / Total
Deposits
|
39.4%
|
36.2%
|
39.4%
|
24.2%
|
36.2%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
1.5%
|
0.0%
|
1.5%
|
1.8%
|
0.0%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
2.7%
|
3.5%
|
2.7%
|
3.0%
|
3.5%
|
|
|
|
|
|
|
|
|
Total Assets
|
$4,412
|
$4,067
|
$4,412
|
$3,962
|
$4,067
|
|
|
|
|
|
|
|
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 June 30, 2010, Bladex had disbursed accumulated
credits of approximately $165
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Thursday, July 22, 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 September 21, 2010.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
18275331. 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.