Report of Foreign Issuer (6-k)

Date : 04/23/2019 @ 5:51PM
Source : Edgar (US Regulatory)
Stock : Banco Latinoamericano de Comercio Exterior SA (BLX)
Quote : 21.33  0.0 (0.00%) @ 9:00AM

Report of Foreign Issuer (6-k)

  

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

Long Form of Press Release

 

Commission File Number 1-11414

 

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

 

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

 

Business Park Torre V, Ave. La Rotonda, Costa del Este

P.O. Box 0819-08730

Panama City, Republic of Panama

(Address of Registrant’s Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x    Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

 

Yes ¨ No x

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

 

Yes ¨ No x

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: April 18, 2019

  FOREIGN TRADE BANK OF LATIN AMERICA, INC.
  (Registrant)
     
    By:  /s/ Ana Graciela de Méndez
     
    Name: Ana Graciela de Méndez
    Title:   CFO

 

 

 

 

   

BLADEX ANNOUNCES PROFIT FOR THE FIRST QUARTER 2019 OF $21.2 MILLION, OR $0.54 PER SHARE

 

PANAMA CITY, REPUBLIC OF PANAMA, April 17, 2019

 

Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the region, today announced its results for the first quarter (“1Q19”) ended March 31, 2019.

 

The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

 

FINANCIAL SNAPSHOT

 

(US$ million, except percentages and per share amounts)   1Q19     4Q18     1Q18  
Key Income Statement Highlights                        
Net Interest Income ("NII")   $ 28.0     $ 28.0     $ 26.6  
Fees and commissions, net   $ 2.4     $ 5.4     $ 3.1  
Total revenues   $ 32.1     $ 34.1     $ 30.7  
(Impairment loss) recovery on financial instruments   $ (0.9 )   $ 1.3     $ (1.9 )
Impairment loss on non-financial assets   $ 0.0     $ (2.3 )   $ 0.0  
Operating expenses   $ (9.9 )   $ (12.4 )   $ (14.3 )
Profit for the period   $ 21.2     $ 20.7     $ 14.5  
Profitability Ratios                        
Earnings per Share ("EPS") (1)   $ 0.54     $ 0.52     $ 0.37  
Return on Average Equity (“ROAE”) (2)     8.6 %     8.3 %     5.6 %
Return on Average Assets (“ROAA”)     1.31 %     1.20 %     0.91 %
Net Interest Margin ("NIM") (3)     1.74 %     1.61 %     1.68 %
Net Interest Spread ("NIS") (4)     1.16 %     1.08 %     1.26 %
Efficiency Ratio (5)     30.8 %     36.3 %     46.6 %
Assets, Capital, Liquidity & Credit Quality                        
Commercial Portfolio (6)   $ 6,006     $ 6,290     $ 5,731  
Investment Portfolio   $ 90     $ 107     $ 85  
Total assets   $ 6,450     $ 7,609     $ 5,875  
Total equity   $ 997     $ 994     $ 1,047  
Market capitalization (7)   $ 788     $ 684     $ 1,127  
Tier 1 Basel III Capital Ratio (8)     20.1 %     18.1 %     22.6 %
Total assets / Total equity (times)     6.5       7.7       5.6  
Liquid Assets / Total Assets (9)     11.9 %     22.4 %     9.3 %
Credit-impaired loans to Loan Portfolio (10)     1.18 %     1.12 %     1.12 %
Total allowance for losses to Commercial Portfolio (11)     1.75 %     1.65 %     1.57 %
Total allowance for losses to credit-impaired loans (times) (11)     1.6       1.6       1.5  

 

1Q19 Highlights

 

· Bladex reported Profits of $21.2 million for the 1Q19, a 47% YoY increase, reflecting improved total revenues (+4% YoY), a 31% reduction in operating expenses and lower provisions for credit losses.

 

· The Bank’s quarterly Profits were up from $20.7 million in 4Q18, a 2% QoQ improvement, on the absence of impairment losses on non-financial assets and lower operating expenses (-20% QoQ).

 

· Net Interest Income (“NII”) increased to $28.0 million (+5% YoY; relatively stable QoQ) and Margins (“NIM”) of 1.74% (+6bps YoY; +13bps QoQ), on an improvement in net lending spreads and lesser low-yielding liquidity balances QoQ.

 

· Fees and Commissions income totaled $2.4 million in 1Q19 (-23% YoY; -56% QoQ). The decrease in fees and commissions reflects a seasonally slower first quarter of the year, and the uneven nature of the loan syndication business.

 

· Quarterly operating expenses were $9.9 million, a decrease of 31% YoY (1Q18 expenses were impacted by non-recurring charges). Expenses were 20% lower QoQ, benefitting from a first quarter seasonal effect. The Bank’s Efficiency Ratio improved to 30.8% in 1Q19, compared to 46.6% in 1Q18 and to 36.3% in 4Q18.

 

· 1Q19 annualized Return on Average Equity (“ROAE”) reached 8.6%, compared to 5.6% in 1Q18 and 8.3% in 4Q18. Both annual and quarterly increases were driven by higher profits, while the Bank’s capitalization remained solid with a Tier 1 Basel III Capital Ratio at 20.1%.

 

· End-of-period Commercial Portfolio balance of $6.0 billion in 1Q19 represented a 5% increase YoY, and a 5% reduction QoQ from a seasonally low business quarter. The portfolio’s 1Q19 average balance was $6.1 billion (+1% YoY, -2% QoQ).

 

 

 

 

 

· Credit-Impaired Loans, also referred to as Non-Performing Loans, remained stable QoQ at $64.7 million, or 1.18% of total Loan Portfolio balances at the end of 1Q19. This compares to $58.8 million, or 1.12%, at the end of 1Q18.

 

· Allowance for credit losses on the Commercial Portfolio totaled $105.0 million, or 1.75% of the portfolio, representing a reserve coverage of 1.6 times credit-impaired loan balances.

 

CEO’s Comments

 

Mr. N. Gabriel Tolchinsky, Bladex’s Chief Executive Officer, said, “ The prospect of diminishing trade volumes and other impacts from continuing trade tension, the weight of lower growth rates from developed markets combined with a more challenging political and economic environment in key Latin American countries, results in a macroeconomic context that offers no room for complacency.

 

Against this backdrop we analyze the risk/reward function at the country level and see a dynamic picture of how our portfolio construction is evolving. With more than 75% of our portfolio maturing in less than one year, Bladex is in a privileged position to dynamically adjust portfolio exposures.

 

We were pleased with Panama’s upgrade from a major credit rating agency, not only because Panama is our home, but also because it is an important exposure in our portfolio that we intend to increase. We also see growth opportunities in the rest of Central America and the Caribbean, Colombia, Peru and Chile.

 

The first quarter of the year is a seasonally slow one for Latin America. Nevertheless, our book of business is solid. We are identifying new prospects, increasing share of wallet with our existing client base and structuring value-added transactions with key clients.

 

Although our focus on high quality borrowers and prescient US dollar liquidity in key markets puts pressure on our origination margins, Bladex continues to originate medium term loans at higher lending spreads than those of maturating loans, thereby improving overall margins for our portfolio.

 

On the cost side, expenses for the quarter benefitted somewhat from the seasonality effect. That said, we reiterate our statement from the last call that net of restructuring and other non-recurring charges, our recurrent expenses continue to decline.

 

Against this backdrop, the management of Bladex - as well as its Board of Directors - is cautiously optimistic for the remainder of 2019 and look for a continuation on the profitability path from last quarter.

 

 

 

  

 

RESULTS BY BUSINESS SEGMENT

 

The Bank’s activities are managed and executed in two business segments, Commercial and Treasury. The business segment results are determined based on the Bank’s managerial accounting process as defined by IFRS 8 – Operating Segments, which assigns consolidated statement of financial positions, revenue and expense items to each business segment on a systemic basis.

 

COMMERCIAL BUSINESS SEGMENT

 

The Commercial Business Segment encompasses the Bank’s core business of financial intermediation and fee generation activities developed to cater to corporations, financial institutions and investors in Latin America. The extensive array of products and services include the origination of bilateral short- and medium-term loans, structured and syndicated credits, loan commitments, letter of credit contingencies such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk, and other assets consisting of customers’ liabilities under acceptances. Profits from the Commercial Business Segment include (i) net interest income from loans; (ii) fees and commissions from the issuance, confirmation and negotiation of letters of credit, guarantees and loan commitments, and through loan structuring and syndication activities; (iii) gain on the sale of loans generated through loan intermediation activities, such as sales in the secondary market and distribution in the primary market; (iv) recovery (impairment loss) on financial instruments, such as loans at amortized cost and loan commitments and financial guarantee contracts, as well as impairment loss in other non-financial assets; and (v) direct and allocated operating expenses.

 

As of March 31, 2019, Commercial Portfolio balance totaled $6.0 billion, compared to $6.3 billion as of December 31, 2018, and $5.7 billion as of March 31, 2018. The 5% QoQ decrease reflects low business seasonality during the first quarter of the year, while the 5% YoY increase results from higher mid-term lending origination from a year ago. 1Q19 average Commercial Portfolio balance remained relatively stable at $6.1 billion, representing a 2% QoQ decrease and 1% YoY increase.

 

The Bank’s traditional client base of Financial Institutions represented 55% of the total Commercial Portfolio, compared to 52% a quarter ago and 47% a year ago, with the remaining of the portfolio well diversified across corporate sectors. Geographically, exposure in Brazil, the Bank’s largest country exposure, decreased to 18% of the total Commercial Portfolio, from 19% a quarter ago, but up compared to 16% a year ago. The following countries in terms of geographic exposure were Mexico and Colombia, with 15% and 12% of the total Commercial Portfolio, respectively. As of March 31, 2019, trade finance transactions represented 56% of the short-term Commercial Portfolio, down from 59% a quarter ago and 73% a year ago. 77% of the Commercial Portfolio was scheduled to mature within a year, up from 74% a quarter ago and down from a five-year high of 82% a year ago.

 

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The following graphs illustrate the geographic distribution of the Bank’s Commercial Portfolio, highlighting the portfolio´s risk diversification by country and across industry segments:

 

 

 

Refer to Exhibit VII for additional information relating to the Bank’s Commercial Portfolio distribution by country, and Exhibit IX for the Bank’s distribution of loan disbursements by country.

 

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(US$ million)   1Q19     4Q18     1Q18     QoQ (%)     YoY (%)  
Commercial Business Segment:                                        
Net interest income   $ 27.8     $ 28.4     $ 27.1       -2 %     2 %
Other income (expense)     2.6       5.8       2.6       -55 %     2 %
Total revenues     30.4       34.1       29.7       -11 %     2 %
(Impairment loss) recovery on financial instruments     (1.0 )     1.3       (2.0 )     -177 %     51 %
Impairment loss on non-financial assets     0.0       (2.3 )     0.0       100 %     n.m.  
Operating expenses     (7.3 )     (9.3 )     (10.8 )     22 %     32 %
Profit for the segment   $ 22.1     $ 23.8     $ 16.9       -7 %     30 %
                                         
"n.m." means not meaningful.                                        

 

The $22.1 million Commercial Business Segment’s profit for the 1Q19 resulted in a 30% YoY increase, mainly attributable to a 2% improvement in total revenues from higher net interest income, along with lower provisions for credit losses and allocated operating expenses. The 7% QoQ decrease in profits during the 1Q19 reflected an 11% QoQ decrease in total revenues, mainly from a seasonally slower fee income generation and a 2% QoQ decrease in net interest income, partially offset by the absence of impairment losses on non-financial assets and lower allocated operating expenses.

 

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TREASURY BUSINESS SEGMENT

 

The Treasury Business Segment focuses on managing the Bank’s investment portfolio and the overall structure of its assets and liabilities to achieve more efficient funding and liquidity positions for the Bank, mitigating the traditional financial risks associated with its balance sheet, such as interest rate, liquidity, price and currency risks. Interest-earning assets managed by the Treasury Business Segment include liquidity positions (cash and cash equivalents), and security instruments related to the investment management activities, consisting of securities at fair value through other comprehensive income (“OCI”) and investment securities at amortized cost (“Investment Portfolio”). The Treasury Business Segment also manages the Bank’s interest-bearing liabilities, which constitute its funding sources, mainly deposits, short- and long-term borrowings and debt.

 

Profit from the Treasury Business Segment includes net interest income derived from the above mentioned treasury assets and liabilities and related net other income (net results from derivative financial instruments and foreign currency exchange, gain (loss) per financial instruments at fair value through profit or loss, gain (loss) per financial instruments at fair value through OCI, and other income), recovery (impairment loss) on financial instruments, and direct and allocated operating expenses.

 

Liquidity balances reverted to historical levels, decreasing to $0.8 billion at the end of 1Q19, of which 99% were held in deposits with the Federal Reserve Bank of New York, compared to $1.7 billion, or 97% of liquid assets, at year-end 2018, and to $0.5 billion, or 99% of liquid assets, at the end of 1Q18. As of these quarter-end dates, liquidity balances to total assets represented 11.9%, 22.4% and 9.3%, respectively, while the liquidity balances to total deposits ratio was 28.0%, 57.4% and 19.3%, respectively.

 

The Investment Portfolio balances totaled $90 million as of March 31, 2019, compared to $107 million as of December 31, 2018, and compared to $85 million as of March 31, 2018. As of these dates, this portfolio accounted for only 1% of total assets, mostly consisting of readily-quoted Latin American securities, and of which 76% represented sovereign or state-owned risk at the end of the 1Q19, unchanged from a quarter ago and compared to 87% a year ago (refer to Exhibit VIII for a per-country risk distribution of the Investment Portfolio).

 

On the funding side, deposit balances totaled $2.7 billion at the end of 1Q19, an 8% decrease from $3.0 billion at year-end 2018, and a 2% decrease from $2.8 billion a year ago. As of these quarter-end dates, deposits represented 52%, 46% and 59% of total funding sources, respectively. The majority of the deposits are placed by central banks or designees (i.e.: Class A shareholders of the Bank), with 64%, 71% and 70%, of total deposits, at the end of these periods, respectively. Meanwhile, short- and medium-term borrowings and debt totaled $2.5 billion, a 29% QoQ decrease and a 32% YoY increase, as part of the Bank’s funding requirements from its commercial origination. Weighted average funding costs reached 3.35% in 1Q19, up 22bps from a quarter ago and 103bps from a year ago, reflecting higher LIBOR-based market rates and funding spreads on lower average deposits YoY.

 

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(US$ million)   1Q19     4Q18     1Q18     QoQ (%)     YoY (%)  
Treasury Business Segment:                                        
Net interest income   $ 0.2     $ (0.4 )   $ (0.5 )     161 %     145 %
Other income (expense)     1.5       0.4       1.6       307 %     -9 %
Total revenues     1.7       (0.0 )     1.1       n.m.       56 %
Recovery on financial instruments     0.0       0.1       0.0       -55 %     4 %
Operating expenses     (2.6 )     (3.1 )     (3.6 )     16 %     28 %
Loss for the segment   $ (0.9 )   $ (3.0 )   $ (2.4 )     72 %     65 %
                                         
"n.m." means not meaningful.                                        

 

The Treasury Business Segment’s results improved to a $0.9 million loss in 1Q19 (+72% QoQ; +65% YoY), mainly as a result of a $1.7 million total revenues from higher NII and other income mainly related to hedging derivatives valuations and gain on sale of financial instruments, along with lower allocated operating expenses.

 

NET INTEREST INCOME AND MARGINS

 

(US$ million, except percentages)   1Q19     4Q18     1Q18     QoQ (%)     YoY (%)  
Net Interest Income                                        
Interest income   $ 73.6     $ 74.1     $ 57.4       -1 %     28 %
Interest expense     (45.5 )     (46.1 )     (30.8 )     1 %     -48 %
Net Interest Income   $ 28.0     $ 28.0     $ 26.6       0 %     5 %
                                         
Net Interest Margin     1.74 %     1.61 %     1.68 %     8 %     3 %

 

NII remained stable QoQ at $28.0 million and NIM increased 13bps QoQ to 1.74% in the 1Q19, on an improvement in net lending spreads and lesser low-yielding liquidity balances QoQ. The YoY increases of 5% and 6bps in NII and NIM, respectively, were primarily attributable to the net positive effect in the repricing of the Bank’s assets and liabilities, as the Bank maintained a narrow interest rate gap structure due to the short-term nature of its loan portfolio, and was able to pass along LIBOR-based market rates increases in its funding to its asset base.

 

FEES AND COMMISSIONS

 

Fees and Commissions, net, includes the fee income associated with letters of credit and other contingent credits, such as guarantees and credit commitments, as well as fee income derived from loan structuring and syndication activities, together with loan intermediation and distribution activities in the primary market.

 

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(US$ million)   1Q19     4Q18     1Q18     QoQ (%)     YoY (%)  
Letters of credit and other contingent credits     2.4       3.5       3.0       -31 %     -22 %
Loan structuring and distribution fees     0.0       1.9       0.0       -101 %     -174 %
Fees and Commissions, net   $ 2.4     $ 5.4     $ 3.1       -56 %     -23 %

 

Fees and Commissions income totaled $2.4 million in 1Q19, a 56% QoQ decrease reflecting seasonally slower first quarter of the year, along with the uneven nature of the loan syndication business, and a 23% YoY decrease mostly from lower fees in the letters of credit activities.

 

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PORTFOLIO QUALITY AND TOTAL ALLOWANCE FOR LOANS, LOAN COMMITMENTS AND FINANCIAL GUARANTEE CONTRACT LOSSES

 

 

(US$ million, except percentages)   31-Mar-19     31-Dec-18     30-Sep-18     30-Jun-18     31-Mar-18  
Allowance for loan losses                                        
Balance at beginning of the period   $ 100.8     $ 139.3     $ 85.8     $ 82.7     $ 81.3  
Provisions (reversals)     1.6       (1.3 )     53.6       7.6       1.4  
Write-offs, net of recoveries     0.0       (37.2 )     0.0       (4.5 )     0.0  
End of period balance   $ 102.3     $ 100.8     $ 139.3     $ 85.8     $ 82.7  
                                         
Allowance for loan commitments and financial guarantee contract losses                                        
Balance at beginning of the period   $ 3.3     $ 3.2     $ 1.7     $ 7.4     $ 6.8  
Provisions (reversals)     (0.6 )     0.1       1.6       (5.8 )     0.6  
End of period balance   $ 2.7     $ 3.3     $ 3.2     $ 1.7     $ 7.4  
                                         
Total allowance for losses (loans and loan commitments and financial guarantee contract losses)   $ 105.0     $ 104.1     $ 142.5     $ 87.4     $ 90.1  
                                         
Total allowance for losses to Commercial Portfolio     1.75 %     1.65 %     2.26 %     1.44 %     1.57 %
Credit-impaired loans to Loan Portfolio     1.18 %     1.12 %     2.08 %     0.98 %     1.12 %
Total allowance for losses to credit-impaired loans (times)     1.6       1.6       1.2       1.6       1.5  

 

The total allowance for credit losses on the Commercial Portfolio totaled $105.0 million at March 31, 2019, or 1.75% of the portfolio, compared to $104.1 million, or 1.65%, respectively, as of December 31, 2018, and compared to $90.1 million, or 1.57%, respectively, as of March 31, 2018. The $0.9 million QoQ increase was primarily associated to an increase in the individually assessed allocation based on lifetime expected credit losses (Stage 3 under IFRS 9), partially offset by the collectively assessed provision on lower Commercial Portfolio volumes.

 

Credit-impaired loan balances remained unchanged QoQ at $64.7 million, representing 1.18% of total Loan Portfolio balances at the end of 1Q19, compared to 1.12% of total Loan Portfolio balances, at the end of the comparative periods.

 

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OPERATING EXPENSES

 

(US$ million, except percentages)   1Q19     4Q18     1Q18     QoQ (%)     YoY (%)  
Operating expenses                                        
Salaries and other employee expenses     6.3       6.6       10.1       -4 %     -37 %
Depreciation of equipment and leasehold improvements     0.7       0.3       0.3       113 %     114 %
Amortization of intangible assets     0.2       0.2       0.3       -1 %     -51 %
Other expenses     2.7       5.3       3.6       -49 %     -24 %
Total Operating Expenses   $ 9.9     $ 12.4     $ 14.3       -20 %     -31 %
Efficiency Ratio     30.8 %     36.3 %     46.6 %     -15 %     -34 %

 

Total Operating Expenses in 1Q19 decreased to $9.9 million, representing a 20% QoQ decrease benefitting from a first quarter seasonal effect, and a 31% YoY decrease mostly related to non-recurring charges from the variable compensation incurred in 1Q18 as the Bank executed personnel restructurings. Consequently, Efficiency Ratio improved to 30.8% in 1Q19, compared to 36.3% in 4Q18 and 46.6% in 1Q18, while total revenues decreased 6% QoQ and increased 4% YoY.

 

CAPITAL RATIOS AND CAPITAL MANAGEMENT

 

The following table shows capital amounts and ratios as of the dates indicated:

 

(US$ million, except percentages and shares outstanding)   31-Mar-19     31-Dec-18     31-Mar-18     QoQ (%)     YoY (%)  
Tier 1 Capital (8)   $ 997     $ 994     $ 1,047       0 %     -5 %
Risk-Weighted Assets Basel III (8)   $ 4,963     $ 5,494     $ 4,623       -10 %     7 %
Tier 1 Basel III Capital Ratio (8)     20.1 %     18.1 %     22.6 %     11 %     -11 %
Total equity   $ 997     $ 994     $ 1,047       0 %     -5 %
Total equity to total assets     15.5 %     13.1 %     17.8 %     18 %     -13 %
Accumulated other comprehensive income (loss) ("OCI")   $ (1 )   $ 0     $ 4       -269 %     -120 %
Total assets / Total equity (times)     6.5       7.7       5.6       -16 %     15 %
Shares outstanding (in thousand)     39,544       39,539       39,546       0 %     0 %

 

The Bank’s equity consists entirely of issued and fully paid ordinary common stock, with 39.5 million common shares outstanding as of March 31, 2019. At the same date, the Bank’s ratio of total assets to total equity was 6.5 times, and the Tier 1 Basel III Capital Ratio strengthened to 20.1%, with decreased level of risk-weighted assets from lower Commercial Portfolio balances, and total equity quarterly stable.

 

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RECENT EVENTS

 

§ Quarterly dividend payment: The Bank’s Board of Directors approved a quarterly common dividend of $0.385 per share corresponding to the first quarter 2019. The dividend will be paid on May 15, 2019, to stockholders registered as of April 29, 2019.
§ Ratings updates: On April 3, 2019, S&P Global Ratings affirmed the Bank’s global- and national-scale issuer credit ratings at “BBB/A-2” and “mxAAA”, respectively. The outlook was revised to “Negative” from “Stable” on shifting economic risk exposures in Latin America countries.

 

Notes:

 

- Numbers and percentages set forth in this earnings release have been rounded and accordingly may not total exactly.

 

- QoQ and YoY refer to quarter-on-quarter and year-on-year variations, respectively.

 

Footnotes:

 

1) Earnings per Share (“EPS”) calculation is based on the average number of shares outstanding during each period.

 

2) ROAE refers to return on average stockholders’ equity which is calculated on the basis of unaudited daily average balances.

 

3) NIM refers to net interest margin which constitutes to net interest income divided by the average balance of interest-earning assets.

 

4) NIS refers to net interest spread which constitutes the average yield earned on interest-earning assets, less the average yield paid on interest-bearing liabilities.

 

5) Efficiency Ratio refers to consolidated operating expenses as a percentage of total revenues.

 

6) The Bank’s “Commercial Portfolio” includes gross loans (or the “Loan Portfolio”), loan commitments and financial guarantee contracts, such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk and other assets consisting of customers’ liabilities under acceptances.

 

7) Market capitalization corresponds to total outstanding common shares multiplied by market close price at the end of each corresponding period.

 

8) Tier 1 Capital is calculated according to Basel III capital adequacy guidelines, and is equivalent to stockholders’ equity excluding certain effects such as the OCI effect of the financial instruments at fair value through OCI. Tier 1 Capital ratio is calculated as a percentage of risk-weighted assets. Risk-weighted assets are estimated based on Basel III capital adequacy guidelines.

 

9) Liquid assets refer to total cash and cash equivalents, consisting of cash and due from banks, and interest-bearing deposits in banks, excluding pledged deposits and margin calls. Liquidity ratio refers to liquid assets as a percentage of total assets.

 

10) Credit-impaired loans are also commonly referred to as Non-Performing Loans or NPLs. Loan Portfolio refers to gross loans, excluding interest receivable, the allowance for loan losses, and unearned interest and deferred fees.

 

11) Total allowance for losses refers to allowance for loan losses plus allowance for loan commitments and financial guarantee contract losses.

 

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SAFE HARBOR STATEMENT

 

This press release contains forward-looking statements of expected future developments within the meaning of the Private Securities Litigation Reform Act of 1995.  The forward-looking statements in this press release include the growth of the credit portfolio, including the trade portfolio, the increase in the number of the Bank’s corporate clients, the trend of lending spreads, changes in activities engaged in by the Bank that are derived from the Bank’s client base, anticipated operating results and return on equity in future periods, including income derived from the Treasury Business Segment,  and changes in the financial and performance strength of the Bank.  These forward-looking statements reflect the expectations of the Bank’s management and are based on currently available data; however, actual performance and results are 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 changes in 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 expected credit losses; the need for additional allowance for expected 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. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.   

 

ABOUT BLADEX

 

Bladex, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, began operations in 1979 to promote foreign trade and economic integration in the Region. The Bank, headquartered in Panama, also has offices in Argentina, Brazil, Colombia, Mexico, Peru, and the United States of America, supporting the regional expansion and servicing its customer base, which includes financial institutions and corporations.

 

Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include: central banks and state-owned banks and entities representing 23 Latin American countries; commercial banks and financial institutions; and institutional and retail investors through its public listing.

 

CONFERENCE CALL INFORMATION

 

There will be a conference call to discuss the Bank’s quarterly results on Wednesday, April 17, 2019 at 9:00 a.m. New York City time (Eastern Standard 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 webcast presentation will be available for viewing and downloads on http://www.bladex.com .

 

12

 

 

 

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available for 60 days. Please dial (877) 919-4059 or (334) 323-0140, and follow the instructions. The replay passcode is: 33287579.

 

For more information, please access http://www.bladex.com or contact:

 

Mrs. Ana Graciela de Méndez

Chief Financial Officer

Tel: +507 210-8563

E-mail address: amendez@bladex.com

 

13

 

 

 

EXHIBIT I

 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

    AT THE END OF,                          
    (A)     (B)     (C)     (A) - (B)           (A) - (C)        
    March 31, 2019     December 31, 2018     March 31, 2018     CHANGE     %     CHANGE     %  
    (In US$ thousand)                          
                                           
Assets:                                                        
                                                         
Cash and cash equivalents   $ 803,549     $ 1,745,652     $ 560,276     $ (942,103 )     (54 )%   $ 243,273       43 %
                                                         
Securities and other financial assets, net     106,549       123,598       93,642       (17,049 )     (14 )     12,907       14  
                                                         
Loans     5,479,172       5,778,424       5,225,324       (299,252 )     (5 )     253,848       5  
Interest receivable     47,826       41,144       34,023       6,682       16       13,803       41  
Allowance for loan losses     (102,346 )     (100,785 )     (82,670 )     (1,561 )     (2 )     (19,676 )     (24 )
Unearned interest and deferred fees     (14,938 )     (16,525 )     (5,927 )     1,587       10       (9,011 )     (152 )
Loans, net     5,409,714       5,702,258       5,170,750       (292,544 )     (5 )     238,964       5  
                                                         
Customers' liabilities under acceptances     97,805       9,696       4,940       88,109       909       92,865       1,880  
Derivative financial instruments assets     2,102       2,688       14,682       (586 )     (22 )     (12,580 )     (86 )
                                                         
Property and equipment, net     23,158       6,686       7,120       16,472       246       16,038       225  
Intangibles, net     1,469       1,633       5,115       (164 )     (10 )     (3,646 )     (71 )
Investment properties     0       0       5,119       0       n.m.       (5,119 )     (100 )
Other assets     5,996       16,974       13,401       (10,978 )     (65 )     (7,405 )     (55 )
                                                         
Total assets   $ 6,450,342     $ 7,609,185     $ 5,875,045     $ (1,158,843 )     (15 )%   $ 575,297       10 %
                                                         
Liabilities                                                        
                                                         
Demand deposits   $ 21,937     $ 211,381     $ 42,001     $ (189,444 )     (90 )%   $ (20,064 )     (48 )%
Time deposits     2,725,637       2,759,441       2,772,214       (33,804 )     (1 )     (46,577 )     (2 )
      2,747,574       2,970,822       2,814,215       (223,248 )     (8 )     (66,641 )     (2 )
Interest payable     10,399       12,154       8,541       (1,755 )     (14 )     1,858       22  
Total deposits     2,757,973       2,982,976       2,822,756       (225,003 )     (8 )     (64,783 )     (2 )
                                                         
Securities sold under repurchase agreement     28,232       39,767       49,316       (11,535 )     (29 )     (21,084 )     (43 )
Borrowings and debt, net     2,513,208       3,518,446       1,900,875       (1,005,238 )     (29 )     612,333       32  
Interest payable     12,296       13,763       8,464       (1,467 )     (11 )     3,832       45  
                                                         
Customers' liabilities under acceptances     97,805       9,696       4,940       88,109       909       92,865       1,880  
Derivative financial instruments liability     29,262       34,043       12,469       (4,781 )     (14 )     16,793       135  
Allowance for loan commitments and financial guarantee contract losses     2,702       3,289       7,423       (587 )     (18 )     (4,721 )     (64 )
Other liabilities     11,930       13,615       22,066       (1,685 )     (12 )     (10,136 )     (46 )
                                                         
Total liabilities   $ 5,453,408     $ 6,615,595     $ 4,828,309     $ (1,162,187 )     (18 )%   $ 625,099       13 %
                                                         
Equity:                                                        
                                                         
Common stock   $ 279,980     $ 279,980     $ 279,980     $ 0       0 %   $ 0       0 %
Treasury stock     (60,947 )     (61,076 )     (60,671 )     129       0       (276 )     (0 )
Additional paid-in capital in excess of assigned value of common stock     120,318       119,987       120,319       331       0       (1 )     (0 )
Capital reserves     95,210       95,210       95,210       0       0       0       0  
Regulatory reserves     136,019       136,019       127,504       0       0       8,515       7  
Retained earnings     427,064       423,050       480,778       4,014       1       (53,714 )     (11 )
Other comprehensive income     (710 )     420       3,616       (1,130 )     (269 )     (4,326 )     (120 )
                                                         
Total equity   $ 996,934     $ 993,590     $ 1,046,736     $ 3,344       0 %   $ (49,802 )     (5 )%
                                                         
Total liabilities and equity   $ 6,450,342     $ 7,609,185     $ 5,875,045     $ (1,158,843 )     (15 )%   $ 575,297       10 %

 

(*) "n.m." means not meaningful.

 

14

 

 

 

EXHIBIT II

 

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

(In US$ thousand, except per share amounts and ratios)

 

    FOR THE THREE MONTHS ENDED                          
    (A)     (B)     (C)     (A) - (B)           (A) - (C)        
    March 31, 2019     December 31, 2018     March 31, 2018     CHANGE     %     CHANGE     %  
                               
Net Interest Income:                                                        
Interest income   $ 73,554     $ 74,114     $ 57,437     $ (560 )     (1 )%   $ 16,117       28 %
Interest expense     (45,534 )     (46,146 )     (30,847 )     612       1       (14,687 )     (48 )
                                                         
Net Interest Income     28,020       27,968       26,590       52       0       1,430       5  
                                                         
Other income (expense):                                                        
Fees and commissions, net     2,350       5,402       3,059       (3,052 )     (56 )     (709 )     (23 )
Gain on financial instruments, net     756       253       979       503       199       (223 )     (23 )
Other income, net     945       461       115       484       105       830       722  
Total other income, net     4,051       6,116       4,153       (2,065 )     (34 )     (102 )     (2 )
                                                         
Total revenues     32,071       34,084       30,743       (2,013 )     (6 )     1,328       4  
                                                         
(Impairment loss) recovery on financial instruments     (942 )     1,321       (1,931 )     (2,263 )     (171 )     989       51  
Impairment loss on non-financial assets     0       (2,289 )     0       2,289       100       0       n.m.     
                                                         
Operating expenses:                                                        
Salaries and other employee expenses     (6,311 )     (6,599 )     (10,094 )     288       4       3,783       37  
Depreciation of equipment and leasehold improvements     (691 )     (325 )     (323 )     (366 )     (113 )     (368 )     (114 )
Amortization of intangible assets     (164 )     (165 )     (338 )     1       1       174       51  
Other expenses     (2,718 )     (5,294 )     (3,559 )     2,576       49       841       24  
Total operating expenses     (9,884 )     (12,383 )     (14,314 )     2,499       20       4,430       31  
                                                         
Profit for the period   $ 21,245     $ 20,733     $ 14,498     $ 512       2 %   $ 6,747       47 %
                                                         
PER COMMON SHARE DATA:                                                        
Basic earnings per share   $ 0.54     $ 0.52     $ 0.37                                  
Diluted earnings per share   $ 0.54     $ 0.52     $ 0.37                                  
Book value (period average)   $ 25.45     $ 25.05     $ 26.45                                  
Book value (period end)   $ 25.21     $ 25.13     $ 26.47                                  
                                                         
Weighted average basic shares     39,542       39,539       39,466                                  
Weighted average diluted shares     39,559       39,539       39,492                                  
Basic shares period end     39,544       39,539       39,546                                  
                                                         
PERFORMANCE RATIOS:                                                        
Return on average assets     1.31 %     1.20 %     0.91 %                                
Return on average equity     8.6 %     8.3 %     5.6 %                                
Net interest margin     1.74 %     1.61 %     1.68 %                                
Net interest spread     1.16 %     1.08 %     1.26 %                                
Efficiency Ratio     30.8 %     36.3 %     46.6 %                                
Operating expenses to total average assets     0.61 %     0.71 %     0.90 %                                

 

(*) "n.m." means not meaningful.

 

15

 

 

 

EXHIBIT III

 

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

 

    FOR THE THREE MONTHS ENDED  
    March 31, 2019     December 31, 2018     March 31, 2018  
    AVERAGE           AVG.     AVERAGE           AVG.     AVERAGE           AVG.  
    BALANCE     INTEREST     RATE     BALANCE     INTEREST     RATE     BALANCE     INTEREST     RATE  
    (In US$ thousand)  
                                                       
INTEREST EARNING ASSETS                                                                        
Cash and cash equivalents   $ 877,224       5,357       2.44 %   $ 1,083,628       6,322       2.28 %   $ 752,628     $ 2,939       1.56 %
Securities at fair value through OCI     20,022       250       4.99       19,135       252       5.15       16,652       123       2.95  
Securities at amortized cost (1)     83,194       692       3.33       79,907       626       3.06       68,835       485       2.82  
Loans, net of unearned interest     5,551,698       67,255       4.85       5,714,077       66,914       4.58       5,576,646       53,890       3.87  
                                                                         
TOTAL INTEREST EARNING ASSETS   $ 6,532,138     $ 73,554       4.50 %   $ 6,896,748     $ 74,114       4.21 %   $ 6,414,761     $ 57,437       3.58 %
                                                                         
Allowance for expected credit losses on loans     (98,896 )                     (138,848 )                     (81,474 )                
Non interest earning assets     132,896                       121,939                       114,985                  
                                                                         
TOTAL ASSETS   $ 6,566,137                     $ 6,879,839                     $ 6,448,272                  
                                                                         
INTEREST BEARING LIABILITIES                                                                        
Deposits     2,658,892     $ 17,693       2.66 %     2,551,232     $ 15,986       2.45 %   $ 3,223,641     $ 14,004       1.74 %
Securities sold under repurchase agreement and short-term borrowings and debt     1,389,071       12,079       3.48       1,747,793       13,979       3.13       984,930       6,575       2.67  
Long-term borrowings and debt, net (2)     1,390,923       15,762       4.53       1,472,192       16,180       4.30       1,111,615       10,268       3.69  
                                                                         
TOTAL INTEREST BEARING LIABILITIES   $ 5,438,886     $ 45,534       3.35 %   $ 5,771,217     $ 46,145       3.13 %   $ 5,320,186     $ 30,847       2.32 %
                                                                         
Non interest bearing liabilities and other liabilities   $ 120,890                     $ 118,153                     $ 84,259                  
                                                                         
TOTAL LIABILITIES     5,559,776                       5,889,370                       5,404,444                  
                                                                         
EQUITY     1,006,362                       990,469                       1,043,827                  
                                                                         
TOTAL LIABILITIES AND EQUITY   $ 6,566,137                     $ 6,879,839                     $ 6,448,272                  
                                                                         
NET INTEREST SPREAD                     1.16 %                     1.08 %                     1.26 %
                                                                         
NET INTEREST INCOME AND NET INTEREST MARGIN           $ 28,020       1.74 %           $ 27,969       1.61 %           $ 26,590       1.68 %

 

(1) Gross of the allowance for losses relating to securities at amortized cost.
(2) Includes lease liabilities, net of prepaid commissions.

Note: Interest income and/or expense includes the effect of derivative financial instruments used for hedging.

 

16

 

 

 

EXHIBIT IV

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(In US$ thousand, except per share amounts and ratios)

 

    FOR THE THREE MONTHS ENDED  
    MAR 31/19     DEC 31/18     SEP 30/18     JUN 30/18     MAR 31/18  
                               
Net Interest Income:                                        
Interest income   $ 73,554     $ 74,114     $ 65,020     $ 61,919     $ 57,437  
Interest expense     (45,534 )     (46,146 )     (37,724 )     (34,030 )     (30,847 )
                                         
Net Interest Income     28,020       27,968       27,296       27,889       26,590  
                                         
Other income (expense):                                        
Fees and commissions, net     2,350       5,402       3,692       5,032       3,059  
Gain (Loss) on financial instruments, net     756       253       (1,445 )     (796 )     979  
Other income, net     945       461       564       530       115  
                                         
Total other income, net     4,051       6,116       2,811       4,766       4,153  
                                         
Total revenues     32,071       34,084       30,107       32,655       30,743  
                                         
(Impairment loss) recovery on financial instruments     (942 )     1,321       (55,134 )     (1,771 )     (1,931 )
Impairment loss on non-financial assets     0       (2,289 )     (4,841 )     (2,888 )     0  
Total operating expenses     (9,884 )     (12,383 )     (10,851 )     (11,370 )     (14,314 )
                                         
Profit (loss) for the period   $ 21,245     $ 20,733     $ (40,719 )   $ 16,626     $ 14,498  
                                         
SELECTED FINANCIAL DATA                                        
                                         
PER COMMON SHARE DATA                                        
Basic earnings per share   $ 0.54     $ 0.52     $ (1.03 )   $ 0.42     $ 0.37  
                                         
PERFORMANCE RATIOS                                        
Return on average assets     1.31 %     1.20 %     -2.58 %     1.07 %     0.91 %
Return on average equity     8.6 %     8.3 %     -15.5 %     6.4 %     5.6 %
Net interest margin     1.74 %     1.61 %     1.74 %     1.81 %     1.68 %
Net interest spread     1.16 %     1.08 %     1.20 %     1.31 %     1.26 %
Efficiency Ratio     30.8 %     36.3 %     36.0 %     34.8 %     46.6 %
Operating expenses to total average assets     0.61 %     0.71 %     0.69 %     0.73 %     0.90 %

 

17

 

 

 

EXHIBIT V

 

BUSINESS SEGMENT ANALYSIS

(In US$ thousand)

 

    FOR THE THREE MONTHS ENDED  
    MAR 31/19     DEC 31/18     MAR 31/18  
                   
COMMERCIAL BUSINESS SEGMENT:                        
                         
Net interest income   $ 27,787     $ 28,350     $ 27,110  
Other income (expense)     2,598       5,759       2,551  
Total revenues     30,385       34,109       29,661  
(Impairment loss) recovery on financial instruments     (968 )     1,263       (1,956 )
Impairment loss on non-financial assets     0       (2,289 )     0  
Operating expenses     (7,310 )     (9,317 )     (10,762 )
                         
Profit for the segment   $ 22,107     $ 23,766     $ 16,943  
                         
Segment assets     5,522,790       5,726,977       5,190,926  
                         
TREASURY BUSINESS SEGMENT:                        
                         
Net interest income   $ 233     $ (382 )   $ (520 )
Other income (expense)     1,453       357       1,602  
Total revenues     1,686       (25 )     1,082  
Recovery on financial instruments     26       58       25  
Operating expenses     (2,574 )     (3,066 )     (3,552 )
                         
Loss for the segment   $ (862 )   $ (3,033 )   $ (2,445 )
                         
Segment assets     896,984       1,857,196       660,239  
                         
TOTAL:                        
                         
Net interest income   $ 28,020     $ 27,968     $ 26,590  
Other income (expense)     4,051       6,116       4,153  
Total revenues     32,071       34,084       30,743  
(Impairment loss) recovery on financial instruments     (942 )     1,321       (1,931 )
Impairment loss on non-financial assets     0       (2,289 )     0  
Operating expenses     (9,884 )     (12,383 )     (14,314 )
                         
Profit for the period   $ 21,245     $ 20,733     $ 14,498  
                         
Total segment assets     6,419,774       7,584,173       5,851,165  
Unallocated assets     30,568       25,012       23,880  
Total assets     6,450,342       7,609,185       5,875,045  

 

18

 

 

 

EXHIBIT VI

 

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

  

    AT THE END OF,              
    (A)     (B)     (C)              
    March 31, 2019     December 31, 2018     March 31, 2018     Change in Amount  
COUNTRY   Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    (A) - (B)     (A) - (C)  
                                                 
ARGENTINA   $ 570       9     $ 611       10     $ 353       6     $ (41 )   $ 217  
BOLIVIA     0       0       14       0       5       0       (14 )     (5 )
BRAZIL     1,089       18       1,210       19       916       16       (121 )     173  
CHILE     221       4       182       3       253       4       39       (32 )
COLOMBIA     762       12       706       11       780       13       56       (18 )
COSTA RICA     319       5       409       6       445       8       (90 )     (126 )
DOMINICAN REPUBLIC     408       7       318       5       200       3       90       208  
ECUADOR     406       7       438       7       320       6       (32 )     86  
EL SALVADOR     54       1       71       1       42       1       (17 )     12  
GUATEMALA     305       5       344       5       255       4       (39 )     50  
HONDURAS     42       1       89       1       50       1       (47 )     (8 )
JAMAICA     0       0       22       0       22       0       (22 )     (22 )
MEXICO     912       15       917       14       869       15       (5 )     43  
NICARAGUA     0       0       0       0       24       0       0       (24 )
PANAMA     548       9       555       9       437       8       (7 )     111  
PARAGUAY     150       2       159       2       81       1       (9 )     69  
PERU     83       1       83       1       313       5       0       (230 )
TRINIDAD & TOBAGO     124       2       153       2       184       3       (29 )     (60 )
URUGUAY     0       0       11       0       39       1       (11 )     (39 )
OTHER NON-LATAM (1)     103       2       105       2       228       4       (2 )     (125 )
                                                                 
TOTAL CREDIT PORTFOLIO (2)   $ 6,096       100 %   $ 6,397       100 %   $ 5,816       100 %   $ (301 )   $ 280  
                                                                 
UNEARNED INTEREST AND DEFERRED FEES     (15 )             (17 )             (6 )             2       (9 )
                                                                 
TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INTEREST & DEFERRED FEES   $ 6,081             $ 6,380             $ 5,810             $ (299 )   $ 271  

 

(1) Risk in countries outside the Region, mostly in Europe and North America, related to transactions carried out in the Region and which do not exceed individually 2% of total exposure.
(2) Includes gross loans (or the “Loan Portfolio”), securities at fair value through OCI and at amortized cost, gross of interest receivable and the allowance for expected credit losses, loan commitments and financial guarantee contracts, such as confirmed and stand-by letters of credit, and guarantees covering commercial risk; and other assets consisting of customers’ liabilities under acceptances.

 

19

 

 

 

EXHIBIT VII

 

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

 

    AT THE END OF,              
    (A)     (B)     (C)              
    March 31, 2019     December 31, 2018     March 31, 2018     Change in Amount  
COUNTRY   Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    (A) - (B)     (A) - (C)  
                                                 
ARGENTINA   $ 570       9     $ 611       10     $ 353       6     $ (41 )   $ 217  
BOLIVIA     0       0       14       0       5       0       (14 )     (5 )
BRAZIL     1,085       18       1,206       19       912       16       (121 )     173  
CHILE     216       4       177       3       248       4       39       (32 )
COLOMBIA     746       12       678       11       751       13       68       (5 )
COSTA RICA     319       5       409       6       445       8       (90 )     (126 )
DOMINICAN REPUBLIC     408       7       318       5       200       3       90       208  
ECUADOR     406       7       438       7       320       6       (32 )     86  
EL SALVADOR     54       1       71       1       42       1       (17 )     12  
GUATEMALA     305       5       344       5       255       4       (39 )     50  
HONDURAS     42       1       89       1       50       1       (47 )     (8 )
JAMAICA     0       0       22       0       22       0       (22 )     (22 )
MEXICO     885       15       890       14       849       15       (5 )     36  
NICARAGUA     0       0       0       0       24       0       0       (24 )
PANAMA     518       9       520       8       419       7       (2 )     99  
PARAGUAY     150       2       159       3       81       1       (9 )     69  
PERU     83       1       83       1       313       5       0       (230 )
TRINIDAD & TOBAGO     116       2       145       2       175       3       (29 )     (59 )
URUGUAY     0       0       11       0       39       1       (11 )     (39 )
OTHER NON-LATAM (1)     103       2       105       2       228       4       (2 )     (125 )
                                                                 
TOTAL COMMERCIAL PORTFOLIO (2)   $ 6,006       100 %   $ 6,290       100 %   $ 5,731       100 %   $ (284 )   $ 275  
                                                                 
UNEARNED INTEREST AND DEFERRED FEES     (15 )             (17 )             (6 )             2       (9 )
                                                                 
TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INTEREST & DEFERRED FEES   $ 5,991             $ 6,273             $ 5,725             $ (282 )   $ 266  

 

(1) Risk in countries outside the Region, mostly in Europe and North America, related to transactions carried out in the Region and which do not exceed individually 2% of total exposure.
(2) Includes gross loans (or the “Loan Portfolio”), loan commitments and financial guarantee contracts, such as confirmed and stand-by letters of credit, and guarantees covering commercial risk; and other assets consisting of customers’ liabilities under acceptances.

 

20

 

 

 

EXHIBIT VIII

 

INVESTMENT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

 

    AT THE END OF,              
    (A)     (B)     (C)              
    March 31, 2019     December 31, 2018     March 31, 2018     Change in Amount  
COUNTRY   Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    Amount     % of Total
Outstanding
    (A) - (B)     (A) - (C)  
                                                 
BRAZIL   $ 4       5     $ 4       4     $ 4       5     $ 0     $ 0  
CHILE     5       6       5       5       5       6       0       0  
COLOMBIA     16       17       28       26       29       34       (12 )     (13 )
MEXICO     27       30       27       25       20       24       0       7  
PANAMA     30       34       35       32       18       21       (5 )     12  
TRINIDAD & TOBAGO     8       9       8       7       9       10       0       (1 )
                                                                 
TOTAL INVESTMENT PORTOFOLIO (1)   $ 90       100 %   $ 107       100 %   $ 85       100 %   $ (17 )   $ 5  

 

(1)        Includes securities at fair value through OCI and at amortized cost, gross of interest receivable and the allowance for losses.

 

21

 

 

 

EXHIBIT IX

 

LOAN DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

 

    QUARTERLY     Change in Amount  
    (A)     (B)     (C)              
COUNTRY   1Q19     4Q18     1Q18     (A) - (B)     (A) - (C)  
                               
ARGENTINA   $ 116     $ 252     $ 132     $ (136 )   $ (16 )
BOLIVIA     0       4       0       (4 )     0  
BRAZIL     206       240       116       (34 )     90  
CHILE     165       28       185       137       (20 )
COLOMBIA     358       285       280       73       78  
COSTA RICA     94       233       158       (139 )     (64 )
DOMINICAN REPUBLIC     248       103       117       145       131  
ECUADOR     165       272       187       (107 )     (22 )
EL SALVADOR     35       30       21       5       14  
GUATEMALA     52       191       71       (139 )     (19 )
HONDURAS     13       49       18       (36 )     (5 )
JAMAICA     0       58       67       (58 )     (67 )
MEXICO     910       915       1,411       (5 )     (501 )
NICARAGUA     0       5       0       (5 )     0  
PANAMA     190       160       78       30       112  
PARAGUAY     29       70       28       (41 )     1  
PERU     34       87       360       (53 )     (326 )
TRINIDAD & TOBAGO     0       86       77       (86 )     (77 )
URUGUAY     13       12       0       1       13  
OTHER NON-LATAM (1)     25       68       243       (43 )     (218 )
                                         
TOTAL LOAN DISBURSED (2)   $ 2,653     $ 3,148     $ 3,549     $ (495 )   $ (896 )

 

(1) Risk in countries outside the Region, mostly in Europe and North America, related to transactions carried out in the Region.
(2) Total loan disbursed does not include loan commitments and financial guarantee contracts, nor other interest-earning assets such as investment securities.

 

22

 

 

 

 

 

23

 

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