PANAMA CITY, July 21, 2011 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the second quarter and
for the six months ended June 30,
2011.
Second Quarter Business Highlights
- Second quarter 2011 Net Income (*) amounted to $25.7 million, a $24.0
million improvement over the second quarter 2010, and a
$9.4 million, or 58% increase
compared to the first quarter 2011. Net Income during the
first six months 2011 reached $42.0
million, a $30.3 million, or
258%, increase compared to the same period 2010, mainly as the
result of increased net interest income from the Commercial
Portfolio and higher trading gains in the Investment Fund.
- Increased Net Income resulted in a 14.3% return on the Bank's
average stockholders' equity ("ROE") in the second quarter 2011,
and 11.9% during the first six months 2011. As of
June 30, 2011, the Bank's Tier 1
capital ratio stood at 18.1% compared to 23.4% as of June 30, 2010, and 19.3% as of March 31, 2011. The Bank's equity consists
entirely of issued and fully paid ordinary common stock.
- Year-on-year, the Commercial Portfolio grew $1.7 billion, or 47%, and $456 million, or 10%, versus the previous quarter
to reach $5.2 billion. Second
quarter 2011 credit disbursements amounted to $3.2 billion, compared to $1.6 billion in the same period 2010, and
$2.3 billion in the first quarter
2011.
- In the second quarter 2011, the Commercial Division's net
operating revenues reached $23.7
million, an increase of 21% over the same period 2010, and
5% over the first quarter 2011. The Division's Net Income in
the second quarter 2011 totaled $13.3
million, compared to $13.9
million in the second quarter 2010, and $13.6 million in the first quarter 2011.
During the second quarter 2011, portfolio growth implied the
creation of generic provisions, which grew $0.5 million, along with increased balances in
the Commercial Portfolio.
- The Treasury Division posted Net Income of $1.1 million in the second quarter 2011, compared
to a Net Loss of $2.8 million in the
second quarter 2010, and a Net Loss of $0.9
million in the first quarter 2011, mainly attributable to
gains on the sale of securities available for sale and the positive
impact of variation on valuations of hedging instruments.
- Funding costs continued to improve as the weighted average
funding cost in the second quarter 2011 stood at 1.08%, a decrease
of 1 bp compared to the first quarter 2011, and a decrease of 18
bps, compared to the second quarter 2010, while during the first
six months 2011, the weighted average funding cost decreased 26 bps
to 1.08%, compared to the same period 2010.
- Net interest margin stood at 1.75% in the second quarter 2011,
compared to 1.67% in the second quarter 2010, and 1.72% in the
first quarter 2011. During the first six months 2011, net
interest margin improved to 1.74% compared to 1.69% in the same
period 2010.
- Net interest income amounted to $23.5
million in the second quarter 2011, a $6.3 million, or 37%, increase when compared to
the second quarter 2010, and $2.1
million, or 10%, increase when compared to the first quarter
2011. During the first six months of 2011, net interest
income amounted to $44.9 million, an
increase of $11.4 million, or 34%,
compared to $33.5 million in the same
period 2010, mainly as a result of higher average interest-earning
assets balances.
- The Asset Management Unit recorded Net Income of $11.3 million in the second quarter 2011,
compared to a Net Loss of $9.4
million in the same period 2010, and Net Income of
$3.6 million in the first quarter
2011. The increases of $20.7 million
and $7.7 million, respectively, were
mainly attributable to net gains from trading activities in the
Bladex Capital Growth Fund (BCGF, the Investment Fund).
- As of June 30, 2011, the
non-accrual portfolio stood at $29.0
million, a decrease of 36% compared to $45.3 million as of June
30, 2010, and the same level as of March 31, 2011. Principal amounts past due
in the entire loan portfolio remained at $1.0 million. The ratio of the allowance
for credit losses to the Commercial Portfolio stood at 1.8% as of
June 30, 2011, compared to 2.7% as of
June 30, 2010, and 1.9% as of
March 31, 2011, while the ratio of
non-accruing loans to the loan portfolio stood at 0.6%, 1.5%, and
0.7%, respectively, as of these dates.
- The Bank's efficiency ratio improved to 33% in the second
quarter 2011, compared to 120% in the second quarter 2010, and 40%
in the first quarter 2011. The efficiency ratio during the
first six months 2011 improved to 36%, compared to 82% during the
first six months 2010, as revenue growth outpaced expense
growth.
(*) 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: "I view the second quarter's results as a confirmation of
the favorable trends underlying our business and the soundness of
our strategy.
Among many other indicators of our solid performance, the 10%
commercial portfolio growth reflects our expanding franchise and
the continued strength and competiveness of Latin America's trade flows. The record
level of central bank deposits confirms the support and close
relationship we maintain with our government shareholders.
Improving intermediation margins reflect our pricing power as
a strategic partner to our clients.
In spite of our gradual reduction of exposure to the Fund that
we had announced, our Asset Management Unit posted one of its best
quarters in 4 years.
The combination of these factors resulted in the Bank achieving
an ROE of 14.3%, while maintaining a strong 18.1% Tier 1 capital
ratio and improving credit quality even further.
While we are satisfied with the quarter's results, we are
particularly encouraged about what they say about the Bank's
ability to continue to increase its profitability in a prudent,
sound, and stable manner," 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)
|
6M11
|
6M10
|
2Q11
|
1Q11
|
2Q10
|
|
Net Interest Income
|
$44.9
|
$33.5
|
$23.5
|
$21.4
|
$17.2
|
|
Net Operating Income (Loss) by
Business Segment:
|
|
|
|
|
|
|
Commercial
Division
|
$27.7
|
$23.4
|
$13.9
|
$13.9
|
$13.0
|
|
Treasury
Division
|
$0.3
|
($5.5)
|
$1.1
|
($0.9)
|
($2.8)
|
|
Asset Management
Unit
|
$15.5
|
($13.5)
|
$11.7
|
$3.8
|
($11.8)
|
|
Net Operating Income
(loss)
|
$43.5
|
$4.4
|
$26.7
|
$16.8
|
($1.6)
|
|
Net income (loss)
|
$42.6
|
$9.0
|
$26.1
|
$16.5
|
($0.7)
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
$0.6
|
($2.8)
|
$0.4
|
$0.2
|
($2.4)
|
|
Net Income attributable to
Bladex
|
$42.0
|
$11.8
|
$25.7
|
$16.3
|
$1.7
|
|
|
|
|
|
|
|
|
Net Income per Share
(1)
|
$1.14
|
$0.32
|
$0.70
|
$0.44
|
$0.05
|
|
Book Value per common share
(period end)
|
$19.73
|
$18.35
|
$19.73
|
$19.25
|
$18.35
|
|
Return on Average Equity
(“ROE”)
|
11.9%
|
3.5%
|
14.3%
|
9.4%
|
1.0%
|
|
Operating Return on Average
Equity ("Operating ROE") (2)
|
12.3%
|
1.3%
|
14.9%
|
9.7%
|
-1.0%
|
|
Return on Average Assets
(“ROA”)
|
1.6%
|
0.6%
|
1.9%
|
1.3%
|
0.2%
|
|
Net Interest Margin
|
1.74%
|
1.69%
|
1.75%
|
1.72%
|
1.67%
|
|
Efficiency Ratio (3)
|
36%
|
82%
|
33%
|
40%
|
120%
|
|
|
|
|
|
|
|
|
Tier 1 Capital
(4)
|
$731
|
$680
|
$731
|
$709
|
$680
|
|
Total Capital
(5)
|
$782
|
$716
|
$782
|
$755
|
$716
|
|
Risk-Weighted
Assets
|
$4,047
|
$2,899
|
$4,047
|
$3,681
|
$2,899
|
|
Tier 1 Capital Ratio
(4)
|
18.1%
|
23.4%
|
18.1%
|
19.3%
|
23.4%
|
|
Total Capital Ratio
(5)
|
19.3%
|
24.7%
|
19.3%
|
20.5%
|
24.7%
|
|
Stockholders’ Equity
|
$731
|
$673
|
$731
|
$709
|
$673
|
|
Stockholders’ Equity to
Total Assets
|
12.6%
|
15.2%
|
12.6%
|
13.4%
|
15.2%
|
|
Other Comprehensive Income
Account ("OCI")
|
($3)
|
($11)
|
($3)
|
($4)
|
($11)
|
|
|
|
|
|
|
|
|
Leverage (times) (6)
|
7.9
|
6.6
|
7.9
|
7.5
|
6.6
|
|
Liquid Assets / Total
Assets (7)
|
6.0%
|
13.5%
|
6.0%
|
6.1%
|
13.5%
|
|
Liquid Assets / Total
Deposits
|
16.8%
|
39.4%
|
16.8%
|
16.9%
|
39.4%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
0.6%
|
1.5%
|
0.6%
|
0.7%
|
1.5%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
1.8%
|
2.7%
|
1.8%
|
1.9%
|
2.7%
|
|
|
|
|
|
|
|
|
Total Assets
|
$5,807
|
$4,412
|
$5,807
|
$5,301
|
$4,412
|
|
|
|
|
|
|
|
RECENT EVENTS
- Quarterly dividend payment: During the Board of
Director's meeting held July 18,
2011, the Bank's Board approved a quarterly common dividend
of $0.20 per share corresponding to
the second quarter 2011. The dividend will be paid August 9, 2011, to stockholders registered as of
August 1, 2011.
- New Representative Office: On July 7, 2011, the Bank inaugurated a new
representative office in Lima,
Peru.
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 June 30, 2011, Bladex had disbursed accumulated
credits of approximately $175
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Friday, July 22, 2011 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 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 September 22, 2011.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
53588479. 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
20 Broad Street, 25th Floor, New York,
NY 10005
Tel: (212) 406-3694
E-mail address: bladex@i-advize.com
SOURCE Banco Latinoamericano de Comercio Exterior, S.A.