PANAMA CITY, Oct. 20, 2011 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or
"the Bank") announced today its results for the third quarter and
nine months ended September 30, 2011.
Third Quarter Business Highlights
- Third quarter 2011 Net Income (*) totaled $16.3 million, a $1.4
million, or 9%, improvement from third quarter 2010, as the
Commercial Division reported Net Income of $17.7 million, a $3.8
million, or 27%, increase over last year, partly offset by
results in the Asset Management Unit (-$3.3
million).
- On a year-to-date basis, the Bank's Net Income totaled
$58.4 million, a $31.7 million, or 118%, increase from 2010,
driven by improved performance across all of the Bank's business
lines.
- The Commercial Division's continued growth in Net Income was
driven by net operating revenues of $30.0
million, 42% higher than the same period 2010, and 27%
higher than the second quarter 2011. The increase during the
quarter was driven by portfolio growth and diversification, along
with increased commission income.
- The Commercial Portfolio reached $5.6
billion, a $1.4 billion, or
34%, year-on-year increase, and a $371
million, or 7%, increase from the previous quarter, while
average portfolio balances grew 11%.
- As of September 30, 2011, the
non-accrual portfolio stood at $33.1
million, or 0.7% of the loan portfolio, compared to 0.9% a
year ago. The Bank reported no past-due amounts and all loans
in non-accruing status were current. As of September 30, 2011, the ratio of the allowance
for credit losses to the Commercial Portfolio was 1.7%, compared to
2.3% as of September 30, 2010, and
1.8% as of June 30, 2011.
- In the third quarter 2011, the Treasury Division reported Net
Income of $2.0 million, compared to a
$1.5 million Net Loss in the same
period 2010, and $1.1 million in Net
Income in the second quarter 2011. Net Income in the third
quarter 2011 was mainly attributable to gains on sales of
securities.
- As of September 30, 2011, the
Bank's deposit balances totaled $2.5
billion, a new historical high, representing a 34%
year-on-year increase, and a 20% increase from the previous
quarter.
- Funding costs continued to improve as the weighted average
funding cost in the third quarter 2011 was 1.05%, a decrease of 17
bps compared to the third quarter 2010, and a decrease of 3 bps
compared to the previous quarter.
- Net interest income amounted to $28.7
million in the third quarter 2011, an $8.7 million, or 43%, increase compared to the
third quarter 2010, and a $5.2
million, or 22%, increase compared to the second quarter
2011. The results were driven by higher average
interest-earning assets (+31% versus third quarter 2010 and +12%
versus second quarter 2011), as well as an improved net interest
margin (up 17 bps from the third quarter 2010, and 15 bps higher
than the second quarter 2011).
- During the third quarter 2011, the Asset Management Unit
reported a Net Loss of $3.3 million,
mainly due to mark-to-market losses on long positions in Latin
American currencies and Latin American short-term sovereign credits
incurred late in the quarter during increased market volatility.
On a year-to-date basis, Bladex's investment in the Bladex
Capital Growth Fund (BCGF, the Investment Fund, managed by this
Unit), contributed Net Income of $11.5
million to the Bank, compared to a Net Loss of $8.1 million in the same period 2010.
- As of September 30, 2011, the
Bank's Tier 1 capital ratio was 16.9%, compared to 20.6% as of
September 30, 2010, and 18.1% as of
June 30, 2011, as the Bank continues
deploying capital through growth. 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: "The third quarter saw the Bank's business shift into high
gear. In just three months, net interest income grew 22%, fees
increased 93%, deposits were up 20% to reach an all-time high,
while the Commercial Portfolio grew 7%. Concurrently,
liquidity strengthened and credit quality remained strong.
The Asset Management Division, however, posted a $3.3 million loss during what is widely viewed as
one of the most volatile quarters in recent years, but still
remains comfortably ahead year-to-date with a Net Income
contribution of $11.5 million in
9M11.
By supporting clients at a difficult time in the market, Bladex
is strengthening its franchise and proving once more the Bank's
strategic value to the Region. With its ample capitalization
supporting sustained growth, Bladex has been able to steadily
increase margins, ROA and ROE levels within its core intermediation
and client business, even while the world economy slows.
Bladex is keenly aware of the increasing risk levels in the
markets, and has taken measures to protect the Bank accordingly -
this is something we know how to do quite well. Crucially,
however, the Bank has strengthened its position as a uniquely
qualified specialist in the intermediation of Latin America's growing trade flows, which
continue supplying the global demand for food, commodities, and
energy. This is a great position in which to be, and the
reason why Bladex is so confident with regards to the Bank's
prospects moving forward."
CONSOLIDATED RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND RATIOS
The following table illustrates the consolidated results of
operations of the Bank for the periods indicated below:
(US$ million, except percentages
and per share amounts)
|
9M11
|
9M10
|
3Q11
|
2Q11
|
3Q10
|
|
Net Interest Income
|
$73.6
|
$53.5
|
$28.7
|
$23.5
|
$20.0
|
|
Net Operating Income (Loss) by
Business Segment:
|
|
|
|
|
|
|
Commercial
Division
|
$47.9
|
$37.4
|
$20.1
|
$13.9
|
$14.0
|
|
Treasury
Division
|
$2.2
|
($7.1)
|
$2.0
|
$1.1
|
($1.5)
|
|
Asset Management
Unit
|
$12.0
|
($10.4)
|
($3.5)
|
$11.7
|
$3.1
|
|
Net Operating Income
|
$62.2
|
$19.9
|
$18.5
|
$26.7
|
$15.6
|
|
Net income
|
$58.9
|
$24.4
|
$16.1
|
$26.1
|
$15.5
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
$0.5
|
($2.3)
|
($0.2)
|
$0.4
|
$0.5
|
|
Net Income attributable to
Bladex
|
$58.4
|
$26.7
|
$16.3
|
$25.7
|
$15.0
|
|
|
|
|
|
|
|
|
Net Income per Share
(1)
|
$1.58
|
$0.73
|
$0.44
|
$0.70
|
$0.41
|
|
Book Value per common share
(period end)
|
$19.71
|
$18.77
|
$19.71
|
$19.73
|
$18.77
|
|
Return on Average Equity
(“ROE”)
|
10.8%
|
5.3%
|
8.7%
|
14.3%
|
8.7%
|
|
Operating Return on Average
Equity ("Operating ROE") (2)
|
11.5%
|
3.9%
|
9.9%
|
14.9%
|
9.0%
|
|
Return on Average Assets
(“ROA”)
|
1.4%
|
0.9%
|
1.1%
|
1.9%
|
1.3%
|
|
Net Interest Margin
|
1.80%
|
1.70%
|
1.90%
|
1.75%
|
1.73%
|
|
Efficiency Ratio (3)
|
37%
|
60%
|
40%
|
33%
|
40%
|
|
|
|
|
|
|
|
|
Tier 1 Capital
(4)
|
$741
|
$690
|
$741
|
$731
|
$690
|
|
Total Capital
(5)
|
$796
|
$732
|
$796
|
$782
|
$732
|
|
Risk-Weighted
Assets
|
$4,395
|
$3,352
|
$4,395
|
$4,047
|
$3,352
|
|
Tier 1 Capital Ratio
(4)
|
16.9%
|
20.6%
|
16.9%
|
18.1%
|
20.6%
|
|
Total Capital Ratio
(5)
|
18.1%
|
21.8%
|
18.1%
|
19.3%
|
21.8%
|
|
Stockholders’ Equity
|
$732
|
$689
|
$732
|
$731
|
$689
|
|
Stockholders’ Equity to
Total Assets
|
11.6%
|
14.2%
|
11.6%
|
12.6%
|
14.2%
|
|
Other Comprehensive Income
Account ("OCI")
|
($13)
|
($5)
|
($13)
|
($3)
|
($5)
|
|
|
|
|
|
|
|
|
Leverage (times) (6)
|
8.6
|
7.1
|
8.6
|
7.9
|
7.1
|
|
Liquid Assets / Total
Assets (7)
|
8.5%
|
6.9%
|
8.5%
|
6.0%
|
6.9%
|
|
Liquid Assets / Total
Deposits
|
21.4%
|
18.1%
|
21.4%
|
16.8%
|
18.1%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
0.7%
|
0.9%
|
0.7%
|
0.6%
|
0.9%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
1.7%
|
2.3%
|
1.7%
|
1.8%
|
2.3%
|
|
|
|
|
|
|
|
|
Total Assets
|
$6,293
|
$4,861
|
$6,293
|
$5,807
|
$4,861
|
|
|
|
|
|
|
|
RECENT EVENTS
- Ratings affirmed: On August
29, 2011, Fitch Ratings affirmed the Bank's credit rating at
BBB/F2, with a "Stable" Outlook.
- Quarterly dividend payment: At the Board of
Director's meeting held October 18,
2011, the Bank's Board approved a quarterly common dividend
of $0.20 per share corresponding to
the third quarter 2011. The dividend will be paid
November 8, 2011, to stockholders
registered as of October 31,
2011.
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.
- Liquid assets consist of investment-grade 'A' securities, and
cash and due from banks, excluding pledged regulatory deposits.
Liquidity ratio refers to liquid assets as a percentage of
total assets.
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, 2011, Bladex had disbursed
accumulated credits of approximately $178
billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Friday, October 21, 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 December 21, 2011.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
64247223. 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.