PANAMA CITY, April 27, 2011 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the first quarter ended
March 31, 2011.
Quarterly
Business Highlights
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- First quarter 2011 Net Income (*) amounted to $16.3 million, an increase of $6.2 million, or 61%, compared to first quarter
2010, and an increase of $0.8
million, or 5%, compared to the fourth quarter 2010, mainly
as a result of Commercial Portfolio growth and good results from
the Investment Fund.
- The Commercial Portfolio grew $1.5
billion, or 47%, year-on-year, and $313 million, or 7%, versus the previous quarter
to reach $4.8 billion. First quarter
2011 credit disbursements amounted to $2.3
billion, compared to $1.3
billion in the same period 2010, and $2.2 billion in the fourth quarter 2010.
- The Commercial Division's Net Income in the first quarter 2011
totaled $13.6 million, compared to
$14.3 million in the first quarter
2010, and compared to $14.9 million
in the fourth quarter 2010, as provisions for credit losses grew
associated with increased balances in the Commercial Portfolio. The
Division's net operating revenues reached $22.5 million in the first quarter 2011, an
increase of 29% over the same period 2010.
- The Treasury Division reported a first quarter 2011 Net Loss of
$0.9 million, compared to a Net Loss
of $2.8 million in the first quarter
2010, and compared to Net Income of $2.2
million in the fourth quarter 2010, mainly attributable to
gains (losses) in the securities portfolio.
- Funding costs continued to improve as the weighted average
funding cost in the first quarter 2011 was 1.09%, a decrease of 34
bps, or 24%, compared to the first quarter 2010, and a decrease of
8 bps, or 7%, compared to the fourth quarter 2010.
- The Asset Management Unit recorded Net Income in the first
quarter 2011 of $3.6 million,
compared to a Net Loss of $1.4
million in the same period 2010 and a Net Loss of
$1.6 million in the fourth quarter
2010. The increases of $5.0 million
and $5.2 million, respectively, were
mainly attributable to net gains in the first quarter 2011 from
trading activities in the Bladex Capital Growth Fund (BCGF, the
Investment Fund).
- The non-accrual portfolio amounted to $29.0 million, a decrease of 43% compared to
$51.3 million as of March 31, 2010, and remained at the same level as
of December 31, 2010. The ratio
of the allowance for credit losses to the Commercial Portfolio
stood at 1.9% as of March 31, 2011,
compared to 3.0% as of March 31,
2010, and 2.1% as of December 31,
2010, while the ratio of non-accruing loans to the loan
portfolio stood at 0.7%, 1.8%, and 0.7%, respectively, as of these
dates, reflecting continued improvement of the portfolio risk
profile.
- The Bank's first quarter 2011 efficiency ratio improved to 40%
in first quarter 2011, compared to 62% in the first quarter 2010,
and 44% in the fourth quarter 2010, as revenue growth outpaced
expense growth.
- The Bank's capitalization remained strong. As of
March 31, 2011, the Bank's Tier 1
capital ratio stood at 19.3% compared to 24.6% as of March 31, 2010 and 20.5% as of December 31, 2010. The Bank's equity
consists entirely of issued and fully paid ordinary common stock.
(*) 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: "Our financial results for the first
quarter were a reflection of the favorable dynamics
driving our market and our
ability to capture its steady growth.
Over the course of the last three months, 2011
GDP growth projections for countries such as the
US, Japan, and India, have been lowered.
In marked contrast, in the case of Latin America, the IMF now expects growth
in 2011 to reach 4.7%, a significant increase over the 4.3%
figure published in January. We are thus operating in a market that
continues to expand steadily, in spite of some level of concern
with regards to inflation and uncertainties in other
regions of the world. Along with our growing client
reach, this explains our healthy 7% commercial portfolio
growth for the quarter, laying the foundation
for increasing revenue levels for the remainder
of the year.
Just about every financial indicator moved in the
right direction during the quarter. Our cost of funds and
efficiency improved, deposit balances reached record levels,
portfolio quality strengthened, the Asset Management Division
returned to profitability, and ROE levels -- while
still below our target -- approached double digit
levels. The $16.3 million profit
figure for the quarter contributed to the Bank's strong Tier 1
capitalization, which stands at 19.3%, even as our
portfolio has expanded by 47% in the last year.
While we are not alone in the market and competition remains
strong, our franchise continues to strengthen as our
unique expertise in trade finance and our knowledge of Latin
America become increasingly important competitive
advantages. We still need to bring our new offices in Lima and Bogota fully on-stream, but expect to do so
during the next few months, thus providing us with additional
origination capabilities during the second half of the year.
All in all, the results for the first quarter followed from the
steady execution of the plans we have set for the Bank:
an increasing client base, additional deployment of capital,
diversification of revenues, efficient funding, credit discipline
and excellence in execution - all as a means of fueling
increasing profitability and value." Mr. Rivera concluded.
CONSOLIDATED RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND RATIOS
The following table illustrates the consolidated results of
operations of the Bank for the periods indicated below:
(US$ million, except percentages
and per share amounts)
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1Q11
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4Q10
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1Q10
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Net Interest Income
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$21.4
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$21.0
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$16.3
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Net Operating Income (Loss) by
Business Segment:
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Commercial
Division
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$13.9
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$14.3
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$10.6
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Treasury
Division
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($0.9)
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$2.2
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($2.8)
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Asset Management
Unit
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$3.8
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($1.8)
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($1.7)
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Net Operating Income
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$16.8
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$14.7
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$6.1
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Net income
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$16.5
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$15.3
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$9.8
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Net income (loss) attributable
to the redeemable noncontrolling interest
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$0.2
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($0.2)
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($0.3)
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Net Income attributable to
Bladex
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$16.3
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$15.5
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$10.1
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Net Income per
Share(1)
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$0.44
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$0.42
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$0.28
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Book Value per common share
(period end)
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$19.25
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$18.99
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$18.59
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Return on Average Equity
("ROE")
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9.4%
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8.9%
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6.1%
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Operating Return on Average
Equity ("Operating ROE")(2)
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9.7%
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8.4%
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3.7%
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Return on Average Assets
("ROA")
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1.3%
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1.3%
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1.1%
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Net Interest Margin
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1.72%
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1.70%
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1.71%
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Efficiency Ratio(3)
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40%
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44%
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62%
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Tier 1
Capital(4)
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$709
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$701
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$684
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Total
Capital(5)
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$755
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$744
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$718
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Risk-Weighted
Assets
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$3,681
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$3,417
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$2,779
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Tier 1 Capital
Ratio(4)
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19.3%
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20.5%
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24.6%
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Total Capital
Ratio(5)
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20.5%
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21.8%
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25.8%
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Stockholders’ Equity
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$709
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$697
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$681
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Stockholders’ Equity to
Total Assets
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13.4%
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13.7%
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17.2%
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Other Comprehensive Income
Account ("OCI")
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($4)
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($6)
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($6)
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Leverage (times)(6)
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7.5
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7.3
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5.8
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Liquid Assets / Total
Assets(7)
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6.1%
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8.2%
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8.3%
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Liquid Assets / Total
Deposits
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16.9%
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23.1%
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24.2%
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Non-Accruing Loans to Total
Loans, net
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0.7%
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0.7%
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1.8%
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Allowance for Credit Losses to
Commercial Portfolio
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1.9%
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2.1%
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3.0%
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Total Assets
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$5,301
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$5,100
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$3,962
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RECENT EVENTS
- Annual Shareholders' Meeting: At
the Annual Shareholders' Meeting held April 20, 2011, in Panama City, Panama, Mr. Manuel
Sanchez Gonzalez was elected as Director
representing the Class "A" shareholders, Mr. Esteban Alejandro Acerbo was re-elected as
Director representing the Class "A" shareholders, and Mr.
Mario Covo was re-elected as
Director representing the Class "E" shareholders.
In addition, the shareholders approved the Bank's audited
financial statements for the fiscal year ended December 31, 2010, the appointment of Deloitte as
the Bank's registered independent public accounting firm for the
fiscal year ending December 31, 2011,
and the advisory votes on executive compensation to be held on
a yearly basis.
After the Annual Shareholders' Meeting, Mr. Will
C. Wood submitted his
resignation as Director representing Class "E"
shareholders. The Bank's Board of Directors, based
on the authority granted by the Articles of
Incorporation, appointed Mr. Guillermo
Guemez as a Director representing Class "E"
shareholders to fill the vacancy created by Mr. Wood's
resignation, for the remainder of Mr. Wood's term,
which is due to expire in April, 2012.
- Quarterly dividend payment: During the Board of
Director's meeting held April 19,
2011, the Bank's Board approved a quarterly common dividend
of $0.20 per share corresponding to
the first quarter 2011. The dividend will be paid May 9, 2011, to stockholders registered as of
May 2, 2011.
- Ratings affirmed: On April
14, 2011, Standard & Poor's affirmed the Bank's credit
rating at BBB/A-2; with a "Stable" Outlook.
On February 28, 2011, Moody's
Investor Service affirmed the Bank's credit rating at Baa2/P-2;
with a "Stable" Outlook.
- New Representative Offices: The Bank commenced
operations on March 1, 2011, in the
representative office located in Lima,
Peru, upon receipt of the required regulatory
authorizations.
On January 20, 2011, the Bank
received authorization from the Superintendency of Banks of
Panama to open a representative
office in Bogota, Colombia.
Approval from Colombian Regulatory Authorities was received on
April 19, 2011.
- Closing of Three-Year Syndicated Loan in Asia: On January 18, 2011, the Bank successfully closed a
$130 million three-year cross-border
syndicated loan arranged by Mizuho Corporate Bank, Ltd. and Taiwan
Cooperative Bank. This financing represents the third
syndication involving Asian markets, after the successful closing
of two previous Bladex deals in August and November 2009, which further diversifies the
Bank's funding sources, and expands Bladex's network of Asian
correspondent banks.
Note: Various numbers and percentages set forth in this
press release have been rounded and, accordingly, may not total
exactly.
Footnotes:
- Net Income per Share calculations are based on the average
number of shares outstanding during each period.
- Operating ROE: Annualized net operating income divided by
average stockholders' equity.
- Efficiency ratio refers to consolidated operating expenses as a
percentage of net operating revenues.
- 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.
- 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.
- Leverage corresponds to assets divided by stockholders'
equity.
- 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 March 31, 2011, Bladex had disbursed accumulated
credits of approximately $172
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Thursday, April 28, 2011
at 10:00 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 webcast 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 28, 2011.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
93235257. 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.