PANAMA CITY, Oct. 12 /PRNewswire-FirstCall/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex," or
"the Bank") announced today its results for the third quarter ended
September 30, 2010.
Third Quarter Business Highlights
- Net Income (*) for the third quarter 2010 amounted to
$15.0 million, compared to
$1.7 million in the second quarter
2010, and $15.8 million in the third
quarter 2009. 93% of the Bank's Net Income was the result of
the Commercial Division's strong quarterly performance,
contributing Net Income of $13.9
million.
- During the quarter, the Commercial Portfolio grew $607 million, or 17%, to reach a balance of
approximately $4.2 billion.
Year-on-year, the Commercial Portfolio has grown $1.3 billion, or 44%.
- Net interest income in the third quarter 2010 was $20.0 million, a 16% increase over the previous
period. Fees and commissions amounted to $2.0 million, a decrease of $0.8 million compared to the previous quarter.
On a year-to-date-basis, fees and commissions have grown 66%,
amounting to $7.2 million.
- Net interest margin stood at 1.73% in the third quarter 2010,
compared to 1.67% in the previous quarter, and 1.76% in the third
quarter 2009.
- With the Bank's portfolio growth driven mainly by demand from
established banking and corporate clients, portfolio quality
continued to improve, as non-accrual loans declined 27% compared to
the previous quarter to $33
million.
- The Asset Management Unit reported Net Income of $2.6 million in the third quarter 2010, compared
to a Net Loss of $9.4 million in the
second quarter 2010, and Net Income of $2.8
million in the third quarter 2009. The gain in the
third quarter 2010 was mainly related to gains on investments in
the Investment Fund.
- The Bank's Tier 1 capital ratio as of September 30, 2010 was 20.6%, compared to 23.4%
as of June 30, 2010, and 24.6% as of
September 30, 2009, while the
leverage ratio as of these dates was 7.1x, 6.6x, and 5.6x,
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: "Solid as this quarter's results were, Bladex is
particularly encouraged by the underlying trends, which support the
Bank's overriding objective of increasing profitability through
balance sheet growth and higher income levels in the core
business.
The Commercial Portfolio's 17% growth in the quarter and 44%
growth over the last year is a reflection of both the strength of
the Region's trade flows recovery, and crucially, Bladex's ability
to leverage an increasing share of this business across a variety
of industries throughout the Region. During the third
quarter, Bladex experienced a 50% expansion of loan disbursements
in both the corporate and financial institution segments, with
total disbursements exceeding $1.7
billion. Loan disbursements in Bladex's new middle
market corporate segment, though still small in absolute terms,
grew at an impressive 76% to $109
million. Due to rapid portfolio growth mainly fueled
by segments and companies familiar to Bladex, credit quality has
remained sound as the portfolio expands. Bladex firmly
believes that supporting this kind of quality growth is the best
manner in which to deploy the Bank's capital.
On the liability side of the business, the 23% quarterly growth
in deposit balances drove the total to $1.9
billion, the highest level on record, and 52% higher than a
year ago, providing the Bank with an attractively priced funding
source, which has largely offset thinner lending spreads that have
come with improving risk levels.
While down in the third quarter, commission income is 66% above
the total of a year ago, a growing trend that Bladex expects to
continue, fueled by the Bank's expanding client base.
Results in the Asset Management Unit have improved, and are now
largely in-line with the historical track record since the Unit
initiated operations 4 years ago. As explained below, the Unit has
taken measures to reduce the volatility of Bladex Capital Growth
Fund. Bladex remains committed to the Asset Management business in
light of what it views as the Bank's competitive
advantages.
As a combined result of these trends, the $15.0 million in quarterly Net Income was of high
quality and well-diversified in nature, reflective of the
composition that the Bank seeks as it steadily expands its
business. The Bank's increased dividend announced today is meant to
allow shareholders to share in Bladex's growth as the Bank
continues executing its strategy.", Mr. Rivera concluded.
CONSOLIDATED RESULTS OF
OPERATIONS
KEY FINANCIAL FIGURES AND
RATIOS
The following table illustrates
the consolidated results of operations of the Bank for the periods
indicated below:
|
|
(US$ million, except percentages
and per share amounts)
|
9M10
|
9M09
|
3Q10
|
2Q10
|
3Q09
|
|
Net Interest Income
|
$53.5
|
$49.6
|
$20.0
|
$17.2
|
$17.4
|
|
Net Operating Income (Loss) by
Business Segment:
|
|
|
|
|
|
|
Commercial
Division
|
$37.5
|
$38.4
|
$14.0
|
$13.0
|
$13.0
|
|
Treasury
Division
|
($7.1)
|
$6.6
|
($1.5)
|
($2.8)
|
$1.2
|
|
Asset Management
Unit
|
($10.3)
|
$14.4
|
$3.1
|
($11.8)
|
$3.3
|
|
Net Operating Income
|
$20.1
|
$59.3
|
$15.6
|
($1.6)
|
$17.5
|
|
Net income
|
$24.6
|
$43.8
|
$15.5
|
($0.7)
|
$16.3
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
($2.3)
|
$0.9
|
$0.5
|
($2.4)
|
$0.5
|
|
Net Income attributable to
Bladex
|
$26.9
|
$42.9
|
$15.0
|
$1.7
|
$15.8
|
|
|
|
|
|
|
|
|
Net Income per Share
(1)
|
$0.73
|
$1.18
|
$0.41
|
$0.05
|
$0.43
|
|
Book Value per
common share (period end)
|
$18.77
|
$18.23
|
$18.77
|
$18.35
|
$18.23
|
|
Return on Average Equity
(“ROE”)
|
5.3%
|
9.1%
|
8.7%
|
1.0%
|
9.5%
|
|
Operating Return on Average
Equity ("Operating ROE") (2)
|
3.9%
|
12.6%
|
9.0%
|
-1.0%
|
10.6%
|
|
Return on Average Assets
(“ROA”)
|
0.9%
|
1.4%
|
1.3%
|
0.2%
|
1.6%
|
|
Net Interest Margin
|
1.70%
|
1.63%
|
1.73%
|
1.67%
|
1.76%
|
|
Efficiency Ratio (3)
|
60%
|
32%
|
40%
|
120%
|
33%
|
|
|
|
|
|
|
|
|
Tier 1 Capital (4)
|
$690
|
$671
|
$690
|
$680
|
$671
|
|
Total Capital (5)
|
$732
|
$706
|
$732
|
$716
|
$706
|
|
Risk-Weighted Assets
|
$3,352
|
$2,732
|
$3,352
|
$2,899
|
$2,732
|
|
Tier 1 Capital Ratio
(4)
|
20.6%
|
24.6%
|
20.6%
|
23.4%
|
24.6%
|
|
Total Capital Ratio
(5)
|
21.8%
|
25.8%
|
21.8%
|
24.7%
|
25.8%
|
|
Stockholders’ Equity
|
$689
|
$666
|
$689
|
$673
|
$666
|
|
Stockholders’ Equity to Total
Assets
|
14.2%
|
17.9%
|
14.2%
|
15.2%
|
17.9%
|
|
Other Comprehensive Income
Account ("OCI")
|
($5)
|
($9)
|
($5)
|
($11)
|
($9)
|
|
|
|
|
|
|
|
|
Leverage (times) (6)
|
7.1
|
5.6
|
7.1
|
6.6
|
5.6
|
|
Liquid Assets / Total Assets
(7)
|
6.9%
|
11.6%
|
6.9%
|
13.5%
|
11.6%
|
|
Liquid Assets / Total
Deposits
|
18.1%
|
35.3%
|
18.1%
|
39.4%
|
35.3%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
0.9%
|
1.4%
|
0.9%
|
1.5%
|
1.4%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
2.3%
|
3.5%
|
2.3%
|
2.7%
|
3.5%
|
|
|
|
|
|
|
|
|
Total Assets
|
$4,861
|
$3,723
|
$4,861
|
$4,412
|
$3,723
|
|
|
|
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 Unit, 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 September 30, 2010, Bladex had disbursed
accumulated credits of approximately $167
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Wednesday, October 13,
2010 at 12:30 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 December 13, 2010.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
44126421. 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) 406-3694
|
|
E-mail address:
bladex@i-advize.com
|
|
|
SOURCE Banco Latinoamericano de Comercio Exterior, S.A.
Copyright . 12 PR Newswire