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.
April
21, 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 SECOND QUARTER 2010 NET INCOME OF $1.7 MILLION; $0.05 PER
SHARE.
PANAMA CITY, July 21, 2010
–
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
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·
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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.
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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%.
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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%.
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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.
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Portfolio
quality continued to improve, as non-accrual loans declined 12% compared
to the previous quarter to $45
million.
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·
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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.
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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.
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The
Asset Management Division reported a Net Loss in the second quarter 2010
of $9.4 million, compa
red 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. T
he 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.
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·
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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.
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(*)
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)
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6M10
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6M09
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2Q10
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1Q10
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2Q09
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Net
Interest Income
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$
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33.5
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$
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32.2
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$
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17.2
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$
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16.3
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$
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16.8
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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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23.4
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$
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25.4
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$
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13.0
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$
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10.6
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$
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12.7
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Treasury
Division
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$
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(5.5
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)
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$
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5.4
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$
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(2.8
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)
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$
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(2.8
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)
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$
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4.4
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Asset
Management Division
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$
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(13.5
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)
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$
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11.1
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$
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(11.8
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)
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$
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(1.7
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)
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$
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2.6
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Net
Operating Income
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$
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4.4
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$
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41.9
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$
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(1.6
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)
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$
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6.1
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$
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19.7
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Net
income
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$
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9.0
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$
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27.6
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$
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(0.7
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)
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$
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9.8
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$
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10.6
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Net
income (loss) attributable to the redeemable noncontrolling
interest
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$
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(2.8
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)
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$
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0.4
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$
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(2.4
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)
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$
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(0.3
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)
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$
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0.1
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Net
Income attributable to Bladex
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$
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11.8
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$
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27.2
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$
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1.7
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$
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10.1
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$
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10.5
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Net
Income per Share
(1)
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$
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0.32
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$
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0.75
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$
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0.05
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$
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0.28
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$
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0.29
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Book
Value per common share (period end)
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$
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18.35
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$
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17.61
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$
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18.35
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$
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18.59
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$
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17.61
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Return
on Average Equity (“ROE”)
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3.5
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%
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8.9
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%
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1.0
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%
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6.1
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%
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6.6
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%
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Operating
Return on Average Equity ("Operating ROE")
(2)
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1.3
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%
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13.8
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%
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-1.0
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%
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3.7
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%
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12.4
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%
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Return
on Average Assets (“ROA”)
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0.6
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%
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1.3
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%
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0.2
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%
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1.1
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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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1.69
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%
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1.56
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%
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1.67
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%
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1.71
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%
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1.62
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%
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Efficiency
Ratio
(3)
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82
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%
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32
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%
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120
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%
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62
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%
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30
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%
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Tier
1 Capital
(4)
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$
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680
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$
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662
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$
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680
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$
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684
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$
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662
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Total
Capital
(5)
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$
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716
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$
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701
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$
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716
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$
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718
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$
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701
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Risk-Weighted
Assets
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$
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2,899
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$
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3,129
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$
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2,899
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$
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2,779
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$
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3,129
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Tier
1 Capital Ratio
(4)
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23.4
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%
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21.1
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%
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23.4
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%
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24.6
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%
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21.1
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%
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Total
Capital Ratio
(5)
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24.7
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%
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22.4
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%
|
|
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24.7
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%
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|
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25.8
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%
|
|
|
22.4
|
%
|
Stockholders’
Equity
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$
|
673
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$
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643
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$
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673
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$
|
681
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|
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$
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643
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Stockholders’
Equity to Total Assets
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15.2
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%
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|
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15.8
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%
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15.2
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%
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|
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17.2
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%
|
|
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15.8
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%
|
Other
Comprehensive Income Account ("OCI")
|
|
$
|
(11
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)
|
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$
|
(21
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)
|
|
$
|
(11
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)
|
|
$
|
(6
|
)
|
|
$
|
(21
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Leverage
(times)
(6)
|
|
|
6.6
|
|
|
|
6.3
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|
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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.
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|
(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.
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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.
|
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
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