PANAMA CITY, Feb. 16, 2011 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the fourth quarter and
full-year ended December 31,
2010.
Quarterly and Annual Business Highlights
- Fourth quarter 2010 Net Income (*) amounted to $15.5 million, an increase of $0.5 million, or 4%, compared to third quarter
2010, and an increase of $3.6
million, or 30%, compared to fourth quarter 2009.
- Net income in 2010 amounted to $42.2
million compared to $54.9
million in 2009, as the strong performance of the Commercial
Division was mostly offset by second quarter losses in the Asset
Management Unit.
- The Commercial Portfolio grew $292
million, or 7% versus the previous quarter and $1.3 billion, or 43%, year-on-year to reach
balances of $4.4 billion. Fourth
quarter 2010 credit disbursements amounted to $2.2 billion, compared to the $2.3 billion in the third quarter. 2010
disbursements reached $7.4 billion,
up $3.2 billion, or 79%, from 2009.
- On a year-on-year-basis, fees and commissions grew 53%,
amounting to $10.3 million.
- Net interest income in the fourth quarter 2010 was $21.0 million, a $1.0
million, or 5%, increase over the previous period and a
$5.8 million, or 38% increase over
the fourth quarter 2009. Net interest income in 2010 amounted
to $74.5 million, a 15% increase from
2009. Net interest margin increased to 1.70% in 2010 from
1.62% in 2009. Average funding costs declined 112bps compared
to 2009.
- The Commercial Division's Net Income for 2010 increased
$22.0 million (+63%) to $56.8 million versus $34.8
million in 2009, mainly as a result of portfolio growth and
improved credit quality. The Division's Net Income in the
fourth quarter 2010 totaled $14.9
million, a 7% increase over the previous quarter, and a 25%
increase over the fourth quarter 2009.
- The Treasury Division reported a 2010 Net Loss of $4.9 million, compared to Net Income of
$6.1 million in 2009, driven by
losses from trading portfolio valuations, as increases in
securities valuations were offset by the diminished valuations of
associated trading derivatives used to hedge interest rate risk.
- The Asset Management Unit reported a Net Loss of $9.7 million in 2010, compared to Net Income of
$14.1 million in 2009 as the result
of trading losses in Bladex Capital Growth Fund (BCGF, the
Investment Fund) incurred mostly during the second quarter. The
Bank will gradually reduce its exposure to BCGF to its original
$100 million investment, freeing
close to $50 million to be used to
fund more fee generating activities.
- Portfolio quality improved year-on-year as credit risks abated
throughout the Region, and as non-accrual loans declined to
$29.0 million in the fourth quarter
2010, down from $32.9 million in the
previous quarter, and from $50.5
million in the fourth quarter of 2009.
- Scale efficiencies improved in 2010, with expenses growing
$3.9 million, or 10% year-on-year, to
$42.1 million, well below the
commercial portfolio's 43% growth, as the Bank invested in
commercial and risk management resources.
- The Bank's equity consists entirely of common stock equity.
The Bank's Tier 1 capital ratio as of December 31, 2010 stood at 20.5%, compared to
20.6% as of September 30, 2010, and
25.8% as of December 31, 2009, while
the leverage ratio as of these dates was 7.3x, 7.1x, and 5.7x,
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: "In many ways, Bladex's solid performance during the
fourth quarter was a proxy for the sustained improvement of our
business fundamentals during 2010, which brought about a steady
commercial portfolio growth of 43%, while fees increased by 53%,
deposits rose by 45%, net interest margins widened and our network
of representative offices expanded. Concurrently, portfolio quality
continued to improve, as non-accrual loans fell to just
$29.0 million, out of a total credit
portfolio of $4.9 billion. Expenses
involved in fueling these improvements rose during the year by a
modest 10%, while the Bank maintained a Tier 1 ratio in excess of
20%, and liquidity remained comfortably above $400 million, or 8% of assets.
The $42.2 million consolidated Net
Income for the year 2010 was not higher principally because the
Asset Management's Unit had its first down full-year since we
created the Unit in 2005. The Bank's $15.5 million net income for the fourth quarter,
however, demonstrates that we have achieved our goal of generating
strong results independently of the performance of the Division's
BCGF fund. As we continue to strengthen the Division's fee-income
generation, we plan to gradually re-deploy our nearly $50 million of accumulated earnings in the BCGF
over the year 2011 to pursue other opportunities arising in our
market.
2010 was the first of a two year program designed to
substantially increase the Bank's footprint and strengthen its
franchise based on rapidly growing trade flows in Latin America, a region where we enjoy
significant competitive advantages in terms of market knowledge,
support from our government shareholders, stellar reputation, and
timely, tailored customer service. 2011 will be another year of
growth, as we continue expanding our penetration of the corporate
markets, developing new products, supporting the rapidly growing
intra regional trade, expanding our delivery network, and
continuing to serve as the region's premier bank-to-banks. As was
the case with our recent common dividend increase, we look forward
to continuing to share our success with our shareholders." Mr.
Rivera concluded.
CONSOLIDATED
RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND
RATIOS
The following table
illustrates the consolidated results of operations of the Bank for
the periods indicated below:
|
|
(US$ million, except percentages
and per share amounts)
|
2010
|
2009
|
4Q10
|
3Q10
|
4Q09
|
|
Net Interest Income
|
$74.5
|
$64.8
|
$21.0
|
$20.0
|
$15.2
|
|
Net Operating Income (Loss) by
Business Segment:
|
|
|
|
|
|
|
Commercial
Division
|
$51.8
|
$49.7
|
$14.3
|
$14.0
|
$11.3
|
|
Treasury
Division
|
($4.9)
|
$6.1
|
$2.2
|
($1.5)
|
($0.5)
|
|
Asset Management
Unit
|
($12.1)
|
$15.2
|
($1.8)
|
$3.1
|
$0.8
|
|
Net Operating Income
|
$34.7
|
$70.9
|
$14.7
|
$15.6
|
$11.6
|
|
Net income
|
$39.7
|
$56.0
|
$15.3
|
$15.5
|
$12.1
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
($2.4)
|
$1.1
|
($0.2)
|
$0.5
|
$0.2
|
|
Net Income attributable to
Bladex
|
$42.2
|
$54.9
|
$15.5
|
$15.0
|
$11.9
|
|
|
|
|
|
|
|
|
Net Income per Share
(1)
|
$1.15
|
$1.50
|
$0.42
|
$0.41
|
$0.33
|
|
Book Value per common share
(period end)
|
$18.99
|
$18.49
|
$18.99
|
$18.77
|
$18.49
|
|
Return on Average Equity
(“ROE”)
|
6.2%
|
8.6%
|
8.9%
|
8.7%
|
7.1%
|
|
Operating Return on Average
Equity ("Operating ROE") (2)
|
5.1%
|
11.1%
|
8.4%
|
9.0%
|
6.9%
|
|
Return on Average Assets
(“ROA”)
|
1.0%
|
1.4%
|
1.3%
|
1.3%
|
1.3%
|
|
Net Interest Margin
|
1.70%
|
1.62%
|
1.70%
|
1.73%
|
1.60%
|
|
Efficiency Ratio (3)
|
55%
|
35%
|
44%
|
40%
|
46%
|
|
|
|
|
|
|
|
|
Tier 1 Capital
(4)
|
$701
|
$679
|
$701
|
$690
|
$679
|
|
Total Capital
(5)
|
$744
|
$712
|
$744
|
$732
|
$712
|
|
Risk-Weighted
Assets
|
$3,417
|
$2,633
|
$3,417
|
$3,352
|
$2,633
|
|
Tier 1 Capital Ratio
(4)
|
20.5%
|
25.8%
|
20.5%
|
20.6%
|
25.8%
|
|
Total Capital Ratio
(5)
|
21.8%
|
27.0%
|
21.8%
|
21.8%
|
27.0%
|
|
Stockholders’ Equity
|
$697
|
$676
|
$697
|
$689
|
$676
|
|
Stockholders’ Equity to
Total Assets
|
13.7%
|
17.4%
|
13.7%
|
14.2%
|
17.4%
|
|
Other Comprehensive Income
Account ("OCI")
|
(6)
|
(6)
|
(6)
|
(5)
|
($6)
|
|
|
|
|
|
|
|
|
Leverage (times) (6)
|
7.3
|
5.7
|
7.3
|
7.1
|
5.7
|
|
Liquid Assets / Total
Assets (7)
|
8.2%
|
10.4%
|
8.2%
|
6.9%
|
10.4%
|
|
Liquid Assets / Total
Deposits
|
23.1%
|
32.0%
|
23.1%
|
18.1%
|
32.0%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
0.7%
|
1.8%
|
0.7%
|
0.9%
|
1.8%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
2.1%
|
3.2%
|
2.1%
|
2.3%
|
3.2%
|
|
|
|
|
|
|
|
|
Total Assets
|
$5,100
|
$3,879
|
$5,100
|
$4,861
|
$3,879
|
|
|
|
|
|
|
|
|
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 December 31, 2010, Bladex had disbursed
accumulated credits of approximately $169
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
and annual results on Thursday, February 17,
2011 at 9:30 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 April 17, 2011.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is 32221920.
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.