PANAMA CITY, Feb. 23, 2012 /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,
2011.
Full-year and fourth quarter 2011 Business Highlights
- Bladex's full-year 2011 Net Income (*) totaled $83.2 million, compared to $42.2 million in 2010. The $40.9 million, or 97%, increase was driven by
improved performance at each of the Bank's business segments (1):
Commercial Division (+29%), Treasury Division (+37%), and Asset
Management Unit (n.m.).
- The Bank's fourth quarter 2011 Net Income reached $24.8 million, a $9.3
million, or 60%, improvement from the fourth quarter 2010,
and a $8.5 million, or 52%, increase
from the third quarter 2011, mainly driven by the Commercial
Division's sustained growth in Net Income ($17.7 million, +57% vs. 4Q 2010, and +22% vs. 3Q
2011). The Treasury Division and Asset Management Unit contributed
$3.3 million and $3.9 million, respectively, to the quarterly
result.
- During the fourth quarter, ROE was 13.1% compared to 8.9% a
year earlier and 8.7% in the third quarter 2011. 2011 ROE reached
11.4%, compared to 6.2% in 2010.
- Net interest income totaled $102.7
million in 2011, compared to $74.5
million in 2010. The $28.2
million, or 38%, increase was mainly attributable to higher
average interest-earning asset balances (+30%) and improved net
interest margins (+11 bps). Fourth quarter 2011 net interest income
was $29.1 million, an $8.1 million, or 39%, increase from the fourth
quarter 2010, and a $0.4 million, or
2%, increase from the previous quarter.
- As of December 31, 2011, the
Commercial Portfolio totaled $5.4
billion, a $0.9 billion, or
20%, year-on-year increase. While the average portfolio grew 3%
during the fourth quarter, up 26% from the fourth quarter 2010 and
39% year-on-year, end-of-year balances were 4% lower than the
previous quarter as the Bank opted to temporarily slow
disbursements and increase liquidity position towards the end of
the quarter in response to market volatility. Full-year credit
disbursements reached $10.5 billion,
a $3.1 billion, or 42% increase from
the previous year.
- As the Bank placed greater emphasis on liquidity during the
year-end-period, liquid assets (8) amounted to $786 million as of December 31, 2011, compared to $421 million as of December 31, 2010, and $532 million as of September 30, 2011. The liquid assets to total
assets ratio increased to 12.4%, compared to 8.2% as of
December 31, 2010, and 8.5% as of
September 30, 2011.
- As of December 31, 2011, the
non-accrual portfolio was $32.0
million, or 0.6% of the loan portfolio, compared to 0.7% a
year ago. The ratio of credit reserves to the non-accrual portfolio
was 304%, compared to 317% in 2010. As of December 31, 2011, the ratio of the allowance for
credit losses to the Commercial Portfolio was 1.82%, compared to
2.07% a year ago, and 1.70% as of September
30, 2011.
- The efficiency ratio improved to 36% in 2011, compared to 55%
in 2010. The fourth quarter 2011 efficiency ratio was 34%, versus
44% in the fourth quarter 2010, and 40% in third quarter 2011.
- As of December 31, 2011, the
Bank's Tier 1 capital ratio was 18.6%, compared to 20.5% as of
December 31, 2010, and 16.9% as of
September 30, 2011. 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: "Financially, fourth quarter 2011 results capped, in a
particularly convincing manner, a remarkable year for Bladex, with
fourth quarter ROE exceeding 13%, and Tier 1 capitalization of
nearly 19%. As a whole, 2011's average commercial portfolio grew
more than 38%, disbursements rose 42%, intermediation margins
widened 11 bps, the Asset Management Unit returned to historical
levels of profitability, and the Region retained a good deal of
momentum despite the global economic slowdown. Taken together,
these factors allowed Bladex to nearly double Net Income in 2011.
Just as important, given the Bank's view on the sustainability of
these results, the decision was recently made to increase the
common quarterly dividend from $0.20
to $0.25 cents per share, the third
time the dividend has been raised in the last two years.
Beyond the dollar figures, however, Bladex is especially
encouraged as 2011 results validate the soundness of two strategic
principles that have underpinned the Bank's actions since 2008:
First, Latin America has become an
essential and key supplier of much of the food, minerals, energy
and, in some cases, manufactured goods an evolving world requires
as emerging nations develop and established economies transform.
Second, as a result of the Bank's investments over the past two
years, Bladex is both ideally and uniquely positioned to profit
from the resulting growth in foreign trade that this process has
brought about. During 2012, Bladex will continue to execute based
on these strategic principles.
In conclusion, Bladex's fourth quarter and full-year 2011
results confirm the essence of the Bank's business: Trade Finance
in Latin America. While
Latin America is neither immune
nor indifferent to events affecting European Union financial
institutions, Bladex has effectively positioned its business in one
of the sweeter and more resilient spots of the global economy,
Latin America's growing trade
flows."
CONSOLIDATED RESULTS OF OPERATIONS
KEY FINANCIAL FIGURES AND RATIOS
The following table illustrates the consolidated results of
operations of the Bank for the periods indicated below:
(US$ million, except percentages
and per share amounts)
|
2011
|
2010
|
4Q11
|
3Q11
|
4Q10
|
|
Net Interest Income
|
$102.7
|
$74.5
|
$29.1
|
$28.7
|
$21.0
|
|
Net Operating Income (Loss) by
Business Segment (1):
|
|
|
|
|
|
|
Commercial
Division
|
$57.9
|
$36.5
|
$18.9
|
$16.9
|
$10.7
|
|
Treasury
Division
|
$14.7
|
$10.7
|
$3.3
|
$5.3
|
$5.8
|
|
Asset Management
Unit
|
$15.8
|
($12.4)
|
$4.1
|
($3.6)
|
($1.8)
|
|
Net Operating Income
|
$88.4
|
$34.8
|
$26.2
|
$18.5
|
$14.7
|
|
Net income
|
$83.9
|
$39.8
|
$25.0
|
$16.1
|
$15.3
|
|
Net income (loss) attributable
to the redeemable noncontrolling interest
|
$0.7
|
($2.4)
|
$0.2
|
($0.2)
|
($0.2)
|
|
Net Income attributable to
Bladex
|
$83.2
|
$42.2
|
$24.8
|
$16.3
|
$15.5
|
|
|
|
|
|
|
|
|
Net Income per Share
(2)
|
$2.25
|
$1.15
|
$0.67
|
$0.44
|
$0.42
|
|
Book Value per common share
(period end)
|
$20.45
|
$18.99
|
$20.45
|
$19.71
|
$18.99
|
|
Return on Average Equity
("ROE")
|
11.4%
|
6.2%
|
13.1%
|
8.7%
|
8.9%
|
|
Operating Return on Average
Equity ("Operating ROE") (3)
|
12.1%
|
5.1%
|
13.9%
|
9.9%
|
8.4%
|
|
Return on Average Assets
("ROA")
|
1.5%
|
1.0%
|
1.6%
|
1.1%
|
1.3%
|
|
Net Interest Margin
|
1.81%
|
1.70%
|
1.84%
|
1.90%
|
1.70%
|
|
Efficiency Ratio (4)
|
36%
|
55%
|
34%
|
40%
|
44%
|
|
|
|
|
|
|
|
|
Tier 1 Capital
(5)
|
$761
|
$701
|
$761
|
$741
|
$701
|
|
Total Capital
(6)
|
$812
|
$744
|
$812
|
$796
|
$744
|
|
Risk-Weighted
Assets
|
$4,090
|
$3,417
|
$4,090
|
$4,395
|
$3,417
|
|
Tier 1 Capital Ratio
(5)
|
18.6%
|
20.5%
|
18.6%
|
16.9%
|
20.5%
|
|
Total Capital Ratio
(6)
|
19.9%
|
21.8%
|
19.9%
|
18.1%
|
21.8%
|
|
Stockholders' Equity
|
$759
|
$697
|
$759
|
$732
|
$697
|
|
Stockholders' Equity to
Total Assets
|
11.9%
|
13.7%
|
11.9%
|
11.6%
|
13.7%
|
|
Other Comprehensive Income
Account ("OCI")
|
($3)
|
($6)
|
($3)
|
($13)
|
($6)
|
|
|
|
|
|
|
|
|
Leverage (times) (7)
|
8.4
|
7.3
|
8.4
|
8.6
|
7.3
|
|
Liquid Assets / Total
Assets (8)
|
12.4%
|
8.2%
|
12.4%
|
8.5%
|
8.2%
|
|
Liquid Assets / Total
Deposits
|
34.1%
|
23.1%
|
34.1%
|
21.3%
|
23.1%
|
|
|
|
|
|
|
|
|
Non-Accruing Loans to Total
Loans, net
|
0.6%
|
0.7%
|
0.6%
|
0.7%
|
0.7%
|
|
Allowance for Credit Losses to
Commercial Portfolio
|
1.8%
|
2.1%
|
1.8%
|
1.7%
|
2.1%
|
|
|
|
|
|
|
|
|
Total Assets
|
$6,360
|
$5,100
|
$6,360
|
$6,293
|
$5,100
|
|
|
|
|
|
|
|
RECENT EVENTS
- Quarterly dividend payment: At the Board of Director's
Meeting held January 17, 2012, the
Bank's Board reaffirmed its commitment to a dividend approach that
reflects Bladex's growing core business. Consequently, the Bank's
quarterly common dividend was increased from $0.20 to $0.25 per
share.
- Ratings affirmed: Following a Standard & Poor's
review based on recently revised banking criteria published
November 9, 2011, S&P affirmed
the Bank's credit rating at 'BBB/A-2', with a "Stable" Outlook on
December 6, 2011.
Note: Various numbers and percentages set forth in this
press release have been rounded and, accordingly, may not total
exactly.
Footnotes:
(1) In the fourth quarter 2011, the Bank made the following
changes in the measurement methods used to determine segment profit
or loss: (i) The interest expense allocation methodology reflects
funding costs allocated on a matched-funded basis, net of the risk
adjusted capital determined for each business segment, (ii) The
operating expenses allocation methodology allocates overhead
expenses based on actual resource usage determined for business
segment. The approach utilized in prior periods allocated interest
and overhead expenses based on each segment's average portfolio
balances. Comparative amounts for the previous quarters in 2011 and
2010 have been reclassified to conform to the current period
presentation.
(2) Net Income per Share calculations are based on the average
number of shares outstanding during each period.
(3) Operating ROE: Annualized net operating income divided by
average stockholders' equity.
(4) Efficiency ratio refers to consolidated operating expenses
as a percentage of net operating revenues.
(5) 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.
(6) 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.
(7) Leverage corresponds to assets divided by stockholders'
equity.
(8) 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 December 31, 2011,
Bladex had disbursed accumulated credits of approximately
$180 billion.
Conference Call Information
There will be a conference call to discuss the Bank's quarterly
results on Friday, February 24, 2012
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 April 24, 2012.
Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is 28237663.
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 Bladex