Business Park Torre V, Ave. La Rotonda,
Costa del Este
P.O. Box 0819-08730
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or 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):
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):
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: February 14, 2020
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FOREIGN TRADE BANK OF LATIN AMERICA, INC.
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(Registrant)
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By:
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/s/ Ana Graciela de Méndez
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Name:
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Ana Graciela de Méndez
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Title:
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CFO
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BLADEX ANNOUNCES PROFIT FOR THE FOURTH
QUARTER 2019 OF $22.1 MILLION, OR $0.56 PER SHARE;
FULL YEAR 2019 PROFIT OF $86.1 MILLION,
OR $2.17 PER SHARE
PANAMA CITY, REPUBLIC OF PANAMA, February
14, 2020
Banco Latinoamericano de Comercio Exterior,
S.A. (NYSE: BLX, “Bladex”, or “the Bank”), a Panama-based multinational bank originally established
by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the region,
today announced its results for the fourth quarter (“4Q19”) and full year (“FY19”) ended December 31,
2019.
The consolidated financial information
in this document has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued
by the International Accounting Standards Board (“IASB”).
FINANCIAL SNAPSHOT
(US$
million, except percentages and per share amounts)
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2019
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2018
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4Q19
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3Q19
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4Q18
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Key Income Statement Highlights
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Net Interest Income ("NII")
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$
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109.5
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$
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109.7
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$
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26.9
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$
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26.7
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$
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28.0
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Fees and commissions, net
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$
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15.6
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$
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17.2
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$
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5.4
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$
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2.8
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$
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5.4
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Total revenues
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$
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126.7
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$
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127.6
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$
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31.4
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$
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29.5
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$
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34.1
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(Impairment loss) reversal on financial instruments
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$
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(0.4
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)
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$
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(57.5
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)
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$
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1.9
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$
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(0.6
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)
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$
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1.3
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Gain (loss) on non-financial assets
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$
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0.5
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$
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(10.0
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)
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$
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0.0
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$
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0.5
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$
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(2.3
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)
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Operating expenses
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$
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(40.7
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)
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$
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(48.9
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)
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$
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(11.3
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)
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$
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(9.0
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)
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$
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(12.4
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)
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Profit for the period
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$
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86.1
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$
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11.1
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$
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22.1
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$
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20.4
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$
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20.7
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Profitability Ratios
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Earnings per Share ("EPS") (1)
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$
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2.17
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$
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0.28
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$
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0.56
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$
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0.52
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$
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0.52
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Return on Average Equity (“ROAE”) (2)
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8.6
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%
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1.1
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%
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8.7
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%
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8.0
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%
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8.3
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%
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Return on Average Assets (“ROAA”)
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1.36
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%
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0.17
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%
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1.34
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%
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1.34
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%
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1.20
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%
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Net Interest Margin ("NIM") (3)
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1.74
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%
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1.71
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%
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1.65
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%
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1.77
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%
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1.61
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%
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Net Interest Spread ("NIS") (4)
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1.19
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%
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1.21
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%
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1.18
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%
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1.19
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%
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1.08
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%
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Efficiency Ratio (5)
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32.1
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%
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38.3
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%
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35.9
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%
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30.4
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%
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36.3
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%
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Assets, Capital, Liquidity & Credit Quality
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Commercial Portfolio (6)
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$
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6,502
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$
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6,290
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$
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6,502
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$
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6,217
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$
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6,290
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Investment Portfolio
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$
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80
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$
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107
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$
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80
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$
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85
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$
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107
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Total assets
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$
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7,250
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$
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7,609
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$
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7,250
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$
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6,681
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$
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7,609
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Total equity
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$
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1,016
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$
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994
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$
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1,016
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$
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1,009
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$
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994
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Market capitalization (7)
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$
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847
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$
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684
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$
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847
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$
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790
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$
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684
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Tier 1 Basel III Capital Ratio (8)
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19.8
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%
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18.1
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%
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19.8
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%
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21.1
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%
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18.1
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%
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Total assets / Total equity (times)
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7.1
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7.7
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7.1
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6.6
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7.7
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Liquid Assets / Total Assets (9)
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16.0
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%
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22.4
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%
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16.0
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%
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14.4
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%
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22.4
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%
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Credit-impaired loans to Loan Portfolio (10)
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1.05
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%
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1.12
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%
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1.05
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%
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1.11
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%
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1.12
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%
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Total allowance for losses to Commercial Portfolio (11)
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1.57
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%
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1.65
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%
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1.57
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%
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1.67
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%
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1.65
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%
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Total allowance for losses to credit-impaired loans (times) (11)
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1.7
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1.6
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1.7
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1.7
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1.6
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FY19 & 4Q19 Highlights
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·
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Profit
for FY19 totaled $86.1 million, compared to $11.1 million in FY18, primarily from lower
impairment losses and improved operating efficiency on reduced operating expenses (-17%
YoY), along with steady top-line revenues YoY.
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·
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Bladex’s
4Q19 profit increased 8% QoQ and 7% YoY to $22.1 million, or $0.56 per share, as improved
revenues and reversal of impairment losses offset higher operating expenses QoQ.
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·
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Net
Interest Income (“NII”) for FY19 totaled $109.5 million (stable YoY) with
Net Interest Margin (“NIM”) of 1.74% (+3 bps), and Net Interest Spread (“NIS”)
nearly stable at 1.19%. NII for the 4Q19 improved 1% QoQ to $26.9 million, mainly on
higher average lending volumes. The quarterly YoY decrease of 4% was mainly due to lower
lending spreads and the net effect of lower average market rates, partly compensated
by the decrease in average low-yielding liquidity assets.
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·
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Fees
and commissions income totaled $15.6 million for FY19, -9% YoY on lower fees from letters
of credit (-12% YoY). The Bank closed six syndicated transactions in FY19 for a total
of $5.6 million, up from $4.9 million in FY18. In 4Q19, fees totaled $5.4 million from
structured transactions and improved fees from the Bank’s letters of credit business,
up 4% QoQ and up 7% from 4Q18.
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·
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Efficiency
Ratio was 32% for FY19 (-6pts YoY) as operating expenses decreased 17% YoY with total
revenues nearly stable (-1% YoY), reflecting effective cost control management and overall
improved structural and operational efficiencies. 4Q19 Efficiency Ratio was 36% (+6pts
QoQ; stable YoY) as improved revenues QoQ were offset by higher operating expenses from
employee-related expenses and other seasonal expenses.
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·
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Return
on Average Equity (“ROAE”) was 8.6% in FY19 compared to 1.1% in FY18. 4Q19
annualized ROAE was 8.7% vs. 8.0% in 3Q19 and 8.3% in 4Q18. The Bank’s capitalization
remained solid with Tier 1 Basel III Capital Ratio of 19.8%, with risk-weighted assets
up QoQ due to Commercial Portfolio growth and down YoY due to a shift to a lower risk
country exposure of the portfolio.
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·
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End-of-period
Commercial Portfolio balances increased 5% QoQ and 3% YoY to $6.5 billion in 4Q19. Average
balances were up to $6.2 billion for the 4Q19
(+6% QoQ; stable YoY) and $6.1 billion for FY19 (stable YoY).
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·
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Credit-impaired
Loans, also referred to as Non-Performing Loans or NPLs, were $61.8 million, or 1.0%
of total Loan Portfolio, at the end of 4Q19. This compares to $64.7 million, or 1.1%
of total Loan Portfolio, a year ago. No new NPLs were recorded during 2019. Total allowance
for credit losses was 1.7 times NPL balances for 4Q19.
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CEO’s Comments
Mr. N. Gabriel Tolchinsky, Bladex’s
Chief Executive Officer said, “In 2019, the global economy experienced its weakest year of growth since the financial
crisis, weighed down by tensions that have significantly slowed international trade. The main drivers for the lackluster performance
were the trade war between the US and China, negative trade flows that disrupted supply chains, and idiosyncratic risks in some
countries.
2019 was also a very difficult
year for Latin America regionally. Economic growth came in significantly below beginning of year expectations and significantly
below last year’s levels. Of the largest three economies of Latin America, Brazil was the only one that showed any signs
of life, though growing tepidly, while Mexico stagnated, a remarkable decoupling from a strong US economy and Argentina´s
GDP shrank.
We regard Brazil as the main
potential driver for economic growth in the Region. That said, Colombia and Peru should also perform well. But with (a) commodity
prices depressed because of trade uncertainties and a strong US dollar, (b) Mexico stuck in low or no growth mode due to needed
fiscal restraint, tight monetary policy to keep portfolio moneys flowing and a fundamental lack of investment, (c) potential social
unrest in Chile and (d) smaller countries like Costa Rica mired in a fiscal red ink and Ecuador struggling to comply with the
IMF program, we simply do not see other countries as significant contributors to Regional growth.
We continue to believe that
the current macroeconomic context offers no room for complacency. Furthermore, low growth combined with risk aversion is exacerbating
liquidity for top names in the Region, compressing their margins, while not always compensating for the risk these credits represent.
Nevertheless, Bladex´s
book of business is solid as we have been able to add new clients, shift exposures to lower risk jurisdictions and structure value
added transactions. We achieved our current profitability levels despite this very challenging environment. Over the past two
years, macroeconomic risks, slow regional economic growth, tepid trade flows, idiosyncratic country and industry risks have been
the norm. And, all these risks were coupled with an overwhelming amount of liquidity chasing the same creditworthy clients. If
Bladex can deliver 8.6% ROAE with these headwinds, we should be very well positioned to deliver more sizeable returns in more
benign environments that surely will come. We are keenly aware of the risks in the Region’s industries and entities we finance.
And, I can say with confidence that our team knows how to spot opportunities and deliver results.
We continue to diversify
our funding sources beyond our typical Central Bank deposits, bilateral lines of credit, capital markets and international borrowings.
We recently started a new Yankee CD program that will complement our short-term funding structure.
On the cost side, expenses
continue to stay under control.
Against this backdrop, the
management of Bladex, and its Board of Directors, is cautiously optimistic for 2020 and look for a continuation of the profitability
path we embarked on in the last five quarters.”
RESULTS BY BUSINESS SEGMENT
The Bank’s activities
are managed and executed in two business segments, Commercial and Treasury. Information related to each reportable segment is
set out below. Business segment results are based on the Bank’s managerial accounting process, which assigns assets, liabilities,
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. These activities include the origination of bilateral short-term and medium-term
loans, structured and syndicated credits, 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.
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
sale of loans generated through loan intermediation activities; (iv) recovery or impairment loss on financial instruments, as
well as gain (loss) in other non-financial assets, net; and (v) direct and allocated operating expenses.
Commercial Portfolio balance
totaled $6.5 billion as of December 31, 2019, a 5% QoQ increase compared to $6.2 billion as of September 30, 2019, and a 3% YoY
increase compared to $6.3 billion as of December 31, 2018. Average Commercial Portfolio balances were $6.1 billion for the FY19
(stable YoY), and $6.2 billion for the 4Q19, which resulted in a 6% increase QoQ (stable YoY).
As of December 31, 2019, 73%
of the Commercial Portfolio was scheduled to mature within a year, and 53% of its short.-term origination represented trade finance
transactions, compared to 76% and 53%, respectively, a quarter ago, and 74% and 59%, respectively, a year ago.
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:
The Bank’s traditional
client base of financial institutions represented 56% of the total Commercial Portfolio at the end of 4Q19, compared to 55% a quarter
ago and 52% a year ago. The portfolio continued to be well diversified across corporate sectors, with total oil and gas exposure
(integrated & downstream) at 10% of the total Commercial Portfolio at the end of 4Q19, down from 12% a quarter and year ago.
All the remaining industry sectors were at 5% or lower, except for electric power industry which accounted for 6% of total Commercial
Portfolio.
Geographically, exposure in Brazil,
the Bank’s largest country-risk exposure, decreased to 16% of the total Commercial Portfolio, compared to 17% and 19% a quarter
and year ago, respectively, out of which 81% was with financial institutions at the end of 4Q19, compared to 85% and 73% a quarter
and year ago, respectively. Exposure in Argentina was reduced to 3% of the total Commercial Portfolio at the end of 4Q19, from
10% a year ago, as the Bank re-shifted its portfolio origination towards top-tier banks and corporations in lower-risk countries,
focusing its growth in top rated countries in the Region, where it was able to take advantage of good risk/return opportunities.
Consequently, exposures in Colombia and Chile increased to 15% and 11% of the total Commercial Portfolio, which now represent the
second and fourth largest country exposures, respectively, up from 11% and 3% a year ago. In addition, exposure to other top-rated
countries outside of Latin America, which relates to transactions carried out in the Region, was also increased to 7% of total
portfolio at the end of the 4Q19, from 2% a year ago. Mexico, which still represents a significant part of the portfolio as the
third largest exposure, decreased to 12% of the Commercial Portfolio, compared to 14% a quarter and year ago.
Refer to Exhibit IX for additional
information relating to the Bank’s Commercial Portfolio distribution by country, and Exhibit XI for the Bank’s distribution
of loan disbursements by country.
(US$ million)
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2019
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|
|
2018
|
|
|
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YoY (%)
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4Q19
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3Q19
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4Q18
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QoQ (%)
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YoY (%)
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Commercial Business Segment:
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|
|
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|
|
|
|
|
|
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Net interest income
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$
|
108.4
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|
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$
|
109.8
|
|
|
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-1
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%
|
|
$
|
26.1
|
|
$
|
26.9
|
|
$
|
28.4
|
|
|
-3
|
%
|
|
|
-8
|
%
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Other income
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|
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17.8
|
|
|
|
18.0
|
|
|
|
-1
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%
|
|
|
6.3
|
|
|
3.4
|
|
|
5.8
|
|
|
84
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%
|
|
|
9
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%
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Total revenues
|
|
|
126.2
|
|
|
|
127.8
|
|
|
|
-1
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%
|
|
|
32.4
|
|
|
30.4
|
|
|
34.1
|
|
|
7
|
%
|
|
|
-5
|
%
|
(Impairment loss) reversal on financial instruments
|
|
|
(0.7
|
)
|
|
|
(57.6
|
)
|
|
|
99
|
%
|
|
|
1.9
|
|
|
(0.9
|
)
|
|
1.3
|
|
|
307
|
%
|
|
|
53
|
%
|
Gain (loss) on non-financial assets, net
|
|
|
0.5
|
|
|
|
(6.0
|
)
|
|
|
108
|
%
|
|
|
0.0
|
|
|
0.5
|
|
|
(2.3
|
)
|
|
-100
|
%
|
|
|
100
|
%
|
Operating expenses
|
|
|
(31.2
|
)
|
|
|
(37.4
|
)
|
|
|
17
|
%
|
|
|
(8.7
|
)
|
|
(7.0
|
)
|
|
(9.3
|
)
|
|
-25
|
%
|
|
|
6
|
%
|
Profit for the segment
|
|
$
|
94.8
|
|
|
$
|
26.8
|
|
|
|
254
|
%
|
|
$
|
25.6
|
|
$
|
22.9
|
|
$
|
23.8
|
|
|
12
|
%
|
|
|
8
|
%
|
Commercial Business Segment’s
results were $25.6 million for the 4Q19 (+12% QoQ; +8% YoY) and $94.8 million for the FY19 (+254% YoY). The quarterly Profit increases
were mainly attributable to the re-shifting of its portfolio towards lower-risk countries that resulted on a $1.9 million reversal
of impairment losses on financial instruments in 4Q19 compared to net losses on financial instruments and other assets in the comparative
periods, along with a 7% QoQ increase in total revenues, mainly from higher fee income. Annual Profit improvement was mainly driven
by lower impairment losses on financial instruments and losses in other assets, coupled with improved operating efficiency on a
17% YoY reduction in operating expenses and steady top-line revenues.
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 the balance
sheet, such as interest rate, liquidity, price and currency risks. Interest-earning assets managed by the Treasury Business Segment
include liquidity positions in cash and cash equivalents, and financial instruments related to the investment management activities,
consisting of securities at fair value through other comprehensive income (“FVOCI”) and securities at amortized cost
(the “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.
Profits from the Treasury Business
Segment include 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 (“FVTPL”), gain (loss) on sale of securities at FVOCI, and other income), recovery or
impairment loss on financial instruments, and direct and allocated operating expenses.
Liquidity balances totaled $1,160
million at the end of 4Q19, up from $963 million at the end of 3Q19 and down from $1,706 million at the end of 4Q18. Deposits placed
with the Federal Reserve Bank of New York represented 98% at the end of 4Q19. As of these quarter-end dates, liquidity balances
to total assets represented 16.0%, 14.4% and 22.4%, respectively, while the liquidity balances to total deposits ratio was 40.2%,
33.8% and 57.4%, respectively.
The Investment Portfolio balances
totaled $80 million as of December 31, 2019, down from $85 million as of September 30, 2019, and $107 million as of December 31,
2018. As of these dates, the Investment Portfolio accounted for 1% of total assets, mostly consisting of readily-quoted Latin American
securities, out of which 72% represented sovereign or state-owned risk at the end of the 4Q19, compared to 71% a quarter ago and
76% a year ago (refer to Exhibit X for a per-country risk distribution of the Investment Portfolio).
On the funding side, deposit
balances totaled $2.9 billion at the end of 4Q19, up 1% from a quarter ago and down 3% from a year ago. As of December 31, 2019,
total deposits represented 48% of total funding sources, which compared to 52% and 46% of total funding sources a quarter and year
ago, respectively. Many of the deposits are placed by central banks or designees (i.e.: Class A shareholders of the Bank), representing
61%, 62% and 71% of total deposits at the same dates, respectively. Short- and medium-term borrowings and debt totaled $3.1 billion,
which represented a 20% QoQ increase and a 11% YoY decrease, on a reopening of the bond issuance in the Mexican capital markets
and several short-term bilateral transactions during the quarter. Weighted average funding costs were 2.69% in 4Q19 and 3.10% in
FY19, down 40bps and 43bps from a quarter and year ago on higher average deposit base and lower quarterly LIBOR-based market rates,
and yearly up 34bps compared to FY18, mainly reflecting the annual increase on LIBOR-based market rates.
(US$
million)
|
|
|
2019
|
|
|
|
2018
|
|
|
|
YoY
(%)
|
|
|
|
4Q19
|
|
|
3Q19
|
|
|
4Q18
|
|
|
QoQ
(%)
|
|
|
|
YoY
(%)
|
|
Treasury Business Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
1.1
|
|
|
($
|
0.0
|
)
|
|
|
3037
|
%
|
|
$
|
0.8
|
|
($
|
0.3
|
)
|
($
|
0.4
|
)
|
|
390
|
%
|
|
|
311
|
%
|
Other
income (expense)
|
|
|
(0.7
|
)
|
|
|
(0.2
|
)
|
|
|
-344
|
%
|
|
|
(1.8
|
)
|
|
(0.6
|
)
|
|
0.4
|
|
|
-219
|
%
|
|
|
-597
|
%
|
Total revenues
|
|
|
0.4
|
|
|
|
(0.2
|
)
|
|
|
318
|
%
|
|
|
(1.0
|
)
|
|
(0.8
|
)
|
|
(0.0
|
)
|
|
-16
|
%
|
|
|
-3768
|
%
|
Reversal on financial
instruments
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
196
|
%
|
|
|
0.0
|
|
|
0.3
|
|
|
0.1
|
|
|
-100
|
%
|
|
|
-100
|
%
|
Operating
expenses
|
|
|
(9.5
|
)
|
|
|
(11.5
|
)
|
|
|
17
|
%
|
|
|
(2.5
|
)
|
|
(2.0
|
)
|
|
(3.1
|
)
|
|
-29
|
%
|
|
|
17
|
%
|
Loss for
the segment
|
|
$
|
(8.8
|
)
|
|
$
|
(11.6
|
)
|
|
|
24
|
%
|
|
$
|
(3.5
|
)
|
$
|
(2.5
|
)
|
$
|
(3.0
|
)
|
|
-42
|
%
|
|
|
-16
|
%
|
Treasury Business Segment’s
results were a $3.5 million loss for the 4Q19 (-42% QoQ; -16% YoY) and an $8.8 million loss for FY19 (+24% YoY). The quarterly
decreases were mainly associated to a $1.8 million loss in other financial instruments during the 4Q19 related to the Bank’s
results on its hedging positions, partially offset by a $0.8 million Net Interest Income in the 4Q19, primarily driven by the positive
impact from the repricing on the Bank’s asset-liability interest rate gap position. The 24% improvement YoY was driven by
higher Net Interest Income mainly from the positive gap income, along with a 17% decrease in operating expenses.
NET INTEREST INCOME AND MARGINS
(US$
million, except percentages)
|
|
|
2019
|
|
|
|
2018
|
|
|
|
YoY
(%)
|
|
|
|
4Q19
|
|
|
3Q19
|
|
|
4Q18
|
|
|
QoQ
(%)
|
|
|
|
YoY
(%)
|
|
Net Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
273.7
|
|
|
$
|
258.5
|
|
|
|
6
|
%
|
|
$
|
64.1
|
|
$
|
65.5
|
|
$
|
74.1
|
|
|
-2
|
%
|
|
|
-14
|
%
|
Interest
expense
|
|
|
(164.2
|
)
|
|
|
(148.7
|
)
|
|
|
-10
|
%
|
|
|
(37.2
|
)
|
|
(38.9
|
)
|
|
(46.1
|
)
|
|
4
|
%
|
|
|
19
|
%
|
Net Interest
Income ("NII")
|
|
$
|
109.5
|
|
|
$
|
109.7
|
|
|
|
0
|
%
|
|
$
|
26.9
|
|
$
|
26.7
|
|
$
|
28.0
|
|
|
1
|
%
|
|
|
-4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin ("NIM")
|
|
|
1.74
|
%
|
|
|
1.71
|
%
|
|
|
2
|
%
|
|
|
1.65
|
%
|
|
1.77
|
%
|
|
1.61
|
%
|
|
-6
|
%
|
|
|
3
|
%
|
NII for the 4Q19 totaled $26.9
million (+1% QoQ; -4% YoY), with NIM of 1.65% (-12bps QoQ; +4bps YoY). The 1% QoQ improvement was mainly attributable to higher
average lending volumes. The 4% YoY quarterly decrease was mainly due to a decline in lending spreads and to the net effect of
lower average LIBOR-based market rates, partly compensated by decreased average low-yielding liquidity levels.
NII and NIM for FY19 reached
$109.5 million (stable YoY) and 1.74% (+3bps YoY), respectively. The net positive effect of higher average LIBOR-based market rates
throughout the year, was offset by lower average lending volumes and decreased average liability deposit balances, impacting overall
funding costs.
FEES AND COMMISSIONS
Fees and Commissions, net, includes
the fee income associated with letters of credit and the fee income derived from loan structuring and syndication activities, and
other commissions, mostly from other contingent credits, such as guarantees and credit commitments, net of fee expenses.
(US$
million)
|
|
|
2019
|
|
|
|
2018
|
|
|
|
YoY
(%)
|
|
|
|
4Q19
|
|
|
3Q19
|
|
|
4Q18
|
|
|
QoQ
(%)
|
|
|
|
YoY
(%)
|
|
Letters of credit fees
|
|
|
9.5
|
|
|
|
10.8
|
|
|
|
-12
|
%
|
|
|
2.5
|
|
|
2.4
|
|
|
2.3
|
|
|
4
|
%
|
|
|
7
|
%
|
Loan syndication fees
|
|
|
5.6
|
|
|
|
4.9
|
|
|
|
14
|
%
|
|
|
2.7
|
|
|
0.5
|
|
|
2.0
|
|
|
463
|
%
|
|
|
36
|
%
|
Other commissions, net
|
|
|
0.5
|
|
|
|
1.5
|
|
|
|
-65
|
%
|
|
|
0.2
|
|
|
0.0
|
|
|
1.1
|
|
|
468
|
%
|
|
|
-84
|
%
|
Fees and
Commissions, net
|
|
$
|
15.6
|
|
|
$
|
17.2
|
|
|
|
-9
|
%
|
|
$
|
5.4
|
|
$
|
2.8
|
|
$
|
5.4
|
|
|
90
|
%
|
|
|
-1
|
%
|
4Q19 and FY19 Fees and Commissions
income totaled $5.4 million and $15.6 million, respectively. The QoQ increase of 90% was primarily attributable to the closing
of two structured transactions in 4Q19, while YoY total fees remained relatively stable. Fee income from the letters of credit
business has remained steady on a quarterly basis throughout 2019; whereas FY19 fees and commissions decreased 9% YoY on lower
letters of credit revenues with syndication fees up 14% after closing six transaction.
PORTFOLIO QUALITY AND TOTAL ALLOWANCE FOR LOANS,
LOAN COMMITMENTS AND FINANCIAL GUARANTEE CONTRACT LOSSES
(US$
million, except percentages)
|
|
31-Dec-19
|
|
|
30-Sep-19
|
|
|
30-Jun-19
|
|
|
31-Mar-19
|
|
|
31-Dec-18
|
|
Allowance
for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
101.4
|
|
|
$
|
103.3
|
|
|
$
|
102.3
|
|
|
$
|
100.8
|
|
|
$
|
139.3
|
|
Provisions
(reversals)
|
|
|
(2.1
|
)
|
|
|
0.5
|
|
|
|
0.9
|
|
|
|
1.6
|
|
|
|
(1.3
|
)
|
Write-offs,
net of recoveries
|
|
|
0.0
|
|
|
|
(2.4
|
)
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(37.2
|
)
|
End
of period balance
|
|
$
|
99.3
|
|
|
$
|
101.4
|
|
|
$
|
103.3
|
|
|
$
|
102.3
|
|
|
$
|
100.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan commitments and financial guarantee contract losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at beginning of the period
|
|
$
|
2.7
|
|
|
$
|
2.6
|
|
|
$
|
2.7
|
|
|
$
|
3.3
|
|
|
$
|
3.2
|
|
Provisions
(reversals)
|
|
|
0.4
|
|
|
|
0.1
|
|
|
|
(0.1
|
)
|
|
|
(0.6
|
)
|
|
|
0.1
|
|
End
of period balance
|
|
$
|
3.0
|
|
|
$
|
2.7
|
|
|
$
|
2.6
|
|
|
$
|
2.7
|
|
|
$
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
allowance for losses (loans and loan commitments and financial guarantee contract losses)
|
|
$
|
102.4
|
|
|
$
|
104.1
|
|
|
$
|
105.8
|
|
|
$
|
105.0
|
|
|
$
|
104.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
allowance for losses to Commercial Portfolio
|
|
|
1.57
|
%
|
|
|
1.67
|
%
|
|
|
1.70
|
%
|
|
|
1.75
|
%
|
|
|
1.65
|
%
|
Credit-impaired
loans to Loan Portfolio
|
|
|
1.05
|
%
|
|
|
1.11
|
%
|
|
|
1.16
|
%
|
|
|
1.18
|
%
|
|
|
1.12
|
%
|
Total
allowance for losses to credit-impaired loans (times)
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.6
|
|
|
|
1.6
|
|
|
|
1.6
|
|
The total allowance for credit
losses on the Commercial Portfolio totaled $102.4 million, or 1.57% of the Commercial Portfolio at December 31, 2019, compared
to $104.1 million, or 1.67% and 1.65% of the portfolio, a quarter and year ago, respectively. The $1.7 million QoQ decrease was
mostly associated to lower net provision requirements resulting from the collectively assessed allocation segment (IFRS Stage 2),
based on lifetime expected credit losses, as the Bank reduced its exposure in this segment.
Credit-impaired Loans, also referred
to as Non-Performing Loans or NPLs, were $61.8 million, or 1.0% of total Loan Portfolio balances at the end of 4Q19, as no new
NPLs was recorded during 2019. These levels of NPLs compare to $64.7 million, or 1.1% of total Loan Portfolio as of December 31,
2018. Total allowance for credit losses was 1.7 times NPL balances at the end of 4Q19 and 3Q19, compared to 1.6 times NPL balances
a year ago.
OPERATING EXPENSES
|
|
|
2019
|
|
|
|
2018
|
|
|
|
YoY (%)
|
|
|
|
4Q19
|
|
|
|
3Q19
|
|
|
|
4Q18
|
|
|
|
QoQ (%)
|
|
|
|
YoY (%)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and other employee expenses
|
|
|
24.2
|
|
|
|
28.0
|
|
|
|
-14
|
%
|
|
|
6.4
|
|
|
|
5.7
|
|
|
|
6.6
|
|
|
|
13
|
%
|
|
|
-3
|
%
|
Depreciation of equipment and leasehold improvements
|
|
|
2.9
|
|
|
|
1.3
|
|
|
|
123
|
%
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.3
|
|
|
|
1
|
%
|
|
|
126
|
%
|
Amortization of intangible assets
|
|
|
0.7
|
|
|
|
1.2
|
|
|
|
-40
|
%
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
17
|
%
|
|
|
13
|
%
|
Other expenses
|
|
|
12.9
|
|
|
|
18.5
|
|
|
|
-30
|
%
|
|
|
4.0
|
|
|
|
2.4
|
|
|
|
5.3
|
|
|
|
63
|
%
|
|
|
-25
|
%
|
Total Operating Expenses
|
|
$
|
40.7
|
|
|
$
|
48.9
|
|
|
|
-17
|
%
|
|
$
|
11.3
|
|
|
$
|
9.0
|
|
|
$
|
12.4
|
|
|
|
26
|
%
|
|
|
-9
|
%
|
Efficiency Ratio
|
|
|
32.1
|
%
|
|
|
38.3
|
%
|
|
|
-16
|
%
|
|
|
35.9
|
%
|
|
|
30.4
|
%
|
|
|
36.3
|
%
|
|
|
18
|
%
|
|
|
-1
|
%
|
Fourth Quarter and Full Year
operating expenses totaled $11.3 million and $40.7 million, respectively. The quarterly increases of 26% QoQ was mostly explained
by higher employee-related expenses and other seasonal expenses compared to the previous quarter. The annual decrease of 17% YoY
was mainly associated to lower employee-related expenses resulting from the personnel restructuring in 2018, together with other
cost savings.
Efficiency Ratio improved to
32% for FY19 (-6pts YoY) as operating expenses decreased 17% YoY with total revenues nearly stable (-1% YoY), reflecting an effective
cost control management and overall improved structural and operational efficiencies. 4Q19 Efficiency Ratio increased 6pts QoQ
to 36% (stable YoY), as improved revenues QoQ were offset by higher operating expenses.
CAPITAL RATIOS AND CAPITAL MANAGEMENT
The following table shows capital
amounts and ratios as of the dates indicated:
(US$ million, except
percentages and shares outstanding)
|
|
31-Dec-19
|
|
|
30-Sep-19
|
|
|
31-Dec-18
|
|
|
QoQ
(%)
|
|
|
YoY
(%)
|
|
Tier
1 Capital (8)
|
|
$
|
1,016
|
|
|
$
|
1,009
|
|
|
$
|
994
|
|
|
|
1
|
%
|
|
|
2
|
%
|
Risk-Weighted
Assets Basel III (8)
|
|
$
|
5,142
|
|
|
$
|
4,780
|
|
|
$
|
5,494
|
|
|
|
8
|
%
|
|
|
-6
|
%
|
Tier
1 Basel III Capital Ratio (8)
|
|
|
19.8
|
%
|
|
|
21.1
|
%
|
|
|
18.1
|
%
|
|
|
-6
|
%
|
|
|
9
|
%
|
Total equity
|
|
$
|
1,016
|
|
|
$
|
1,009
|
|
|
$
|
994
|
|
|
|
1
|
%
|
|
|
2
|
%
|
Total equity to total assets
|
|
|
14.0
|
%
|
|
|
15.1
|
%
|
|
|
13.1
|
%
|
|
|
-7
|
%
|
|
|
7
|
%
|
Accumulated other comprehensive
income (loss) ("OCI")
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
0
|
|
|
|
-4
|
%
|
|
|
-533
|
%
|
Total assets / Total equity (times)
|
|
|
7.1
|
|
|
|
6.6
|
|
|
|
7.7
|
|
|
|
8
|
%
|
|
|
-7
|
%
|
Shares outstanding
(in thousand)
|
|
|
39,602
|
|
|
|
39,602
|
|
|
|
39,539
|
|
|
|
0
|
%
|
|
|
0
|
%
|
The Bank’s equity consists
entirely of issued and fully paid ordinary common stock, with 39.6 million common shares outstanding as of December 31, 2019. At
the same date, the Bank’s ratio of total assets to total equity increased to 7.1 times, and the Bank’s capitalization
remained solid with a Tier 1 Basel III Capital Ratio of 19.8%, with risk-weighted assets up 8% QoQ due to Commercial Portfolio
growth, but 6% down YoY on the Commercial Portfolio’s mix shift towards lower country risk.
RECENT EVENTS
|
§
|
Quarterly dividend
payment: The Bank’s Board of Directors (the “Board”) approved a quarterly common dividend of $0.385 per share
corresponding to the fourth quarter 2019. The cash dividend will be paid on March 12, 2020, to shareholders registered as of February
26, 2020.
|
|
§
|
Appointment of
Director: After a thorough selection process, the Board appointed Ms. Alexandra M. Aguirre as Director representing all classes
of shares, in replacement of Mr. Gonzalo Menendez Duque, who passed away on June 29, 2019. Ms. Aguirre will serve for the remainder
of the term, set to expire in April of 2021.
|
|
§
|
CEO succession:
As part of an orderly and programmed succession plan, the Board announced on January 27, 2020, that, effective March 9, 2020, Mr.
N. Gabriel Tolchinsky will step down as Chief Executive Officer, and will be succeeded by Mr. Jorge Salas.
|
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
(“NII”) 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.
|
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, and the United States of America, and a Representative License in Peru, 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 Friday, February 14, 2020 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 webcast presentation will be available for viewing and downloads
on http://www.bladex.com.
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: 44638262.
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
EXHIBIT I
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
AT THE END OF,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
(A) - (B)
|
|
|
|
|
|
(A) - (C)
|
|
|
|
|
|
December 31, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
CHANGE
|
|
|
%
|
|
|
CHANGE
|
|
%
|
|
|
|
|
(In
US$ thousand)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,178,170
|
|
|
$
|
981,484
|
|
|
$
|
1,745,652
|
|
$
|
196,686
|
|
|
|
20
|
%
|
|
$
|
(567,482
|
)
|
|
(33
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities and other financial assets, net
|
|
|
88,794
|
|
|
|
96,958
|
|
|
|
123,598
|
|
|
(8,164
|
)
|
|
|
(8
|
)
|
|
|
(34,804
|
)
|
|
(28
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
5,892,997
|
|
|
|
5,554,259
|
|
|
|
5,778,424
|
|
|
338,738
|
|
|
|
6
|
|
|
|
114,573
|
|
|
2
|
|
Interest receivable
|
|
|
41,757
|
|
|
|
40,031
|
|
|
|
41,144
|
|
|
1,726
|
|
|
|
4
|
|
|
|
613
|
|
|
1
|
|
Allowance for loan losses
|
|
|
(99,307
|
)
|
|
|
(101,425
|
)
|
|
|
(100,785
|
)
|
|
2,118
|
|
|
|
2
|
|
|
|
1,478
|
|
|
1
|
|
Unearned interest and deferred fees
|
|
|
(12,114
|
)
|
|
|
(13,715
|
)
|
|
|
(16,525
|
)
|
|
1,601
|
|
|
|
12
|
|
|
|
4,411
|
|
|
27
|
|
Loans, net
|
|
|
5,823,333
|
|
|
|
5,479,150
|
|
|
|
5,702,258
|
|
|
344,183
|
|
|
|
6
|
|
|
|
121,075
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers' liabilities under acceptances
|
|
|
115,682
|
|
|
|
86,407
|
|
|
|
9,696
|
|
|
29,275
|
|
|
|
34
|
|
|
|
105,986
|
|
|
1,093
|
|
Derivative financial instruments - assets
|
|
|
11,157
|
|
|
|
3,730
|
|
|
|
2,688
|
|
|
7,427
|
|
|
|
199
|
|
|
|
8,469
|
|
|
315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment and leasehold improvements, net
|
|
|
18,752
|
|
|
|
22,569
|
|
|
|
6,686
|
|
|
(3,817
|
)
|
|
|
(17
|
)
|
|
|
12,066
|
|
|
180
|
|
Intangibles, net
|
|
|
1,427
|
|
|
|
1,474
|
|
|
|
1,633
|
|
|
(47
|
)
|
|
|
(3
|
)
|
|
|
(206
|
)
|
|
(13
|
)
|
Investment properties
|
|
|
3,494
|
|
|
|
0
|
|
|
|
0
|
|
|
3,494
|
|
|
|
n.m.
|
(*)
|
|
|
3,494
|
|
|
n.m.
|
(*)
|
Other assets
|
|
|
8,857
|
|
|
|
9,420
|
|
|
|
16,974
|
|
|
(563
|
)
|
|
|
(6
|
)
|
|
|
(8,117
|
)
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
7,249,666
|
|
|
$
|
6,681,192
|
|
|
$
|
7,609,185
|
|
$
|
568,474
|
|
|
|
9
|
%
|
|
$
|
(359,519
|
)
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
$
|
85,786
|
|
|
$
|
145,530
|
|
|
$
|
211,381
|
|
$
|
(59,744
|
)
|
|
|
(41
|
)%
|
|
$
|
(125,595
|
)
|
|
(59
|
)%
|
Time deposits
|
|
|
2,802,550
|
|
|
|
2,705,940
|
|
|
|
2,759,441
|
|
|
96,610
|
|
|
|
4
|
|
|
|
43,109
|
|
|
2
|
|
|
|
|
2,888,336
|
|
|
|
2,851,470
|
|
|
|
2,970,822
|
|
|
36,866
|
|
|
|
1
|
|
|
|
(82,486
|
)
|
|
(3
|
)
|
Interest payable
|
|
|
5,219
|
|
|
|
6,813
|
|
|
|
12,154
|
|
|
(1,594
|
)
|
|
|
(23
|
)
|
|
|
(6,935
|
)
|
|
(57
|
)
|
Total deposits
|
|
|
2,893,555
|
|
|
|
2,858,283
|
|
|
|
2,982,976
|
|
|
35,272
|
|
|
|
1
|
|
|
|
(89,421
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under repurchase agreements
|
|
|
40,530
|
|
|
|
56,065
|
|
|
|
39,767
|
|
|
(15,535
|
)
|
|
|
(28
|
)
|
|
|
763
|
|
|
2
|
|
Borrowings and debt, net
|
|
|
3,138,310
|
|
|
|
2,626,040
|
|
|
|
3,518,446
|
|
|
512,270
|
|
|
|
20
|
|
|
|
(380,136
|
)
|
|
(11
|
)
|
Interest payable
|
|
|
10,554
|
|
|
|
13,589
|
|
|
|
13,763
|
|
|
(3,035
|
)
|
|
|
(22
|
)
|
|
|
(3,209
|
)
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers' liabilities under acceptances
|
|
|
115,682
|
|
|
|
86,407
|
|
|
|
9,696
|
|
|
29,275
|
|
|
|
34
|
|
|
|
105,986
|
|
|
1,093
|
|
Derivative financial instruments - liabilities
|
|
|
14,675
|
|
|
|
13,398
|
|
|
|
34,043
|
|
|
1,277
|
|
|
|
10
|
|
|
|
(19,368
|
)
|
|
(57
|
)
|
Allowance for loan commitments and financial guarantee contract losses
|
|
|
3,044
|
|
|
|
2,675
|
|
|
|
3,289
|
|
|
369
|
|
|
|
14
|
|
|
|
(245
|
)
|
|
(7
|
)
|
Other liabilities
|
|
|
17,149
|
|
|
|
15,634
|
|
|
|
13,615
|
|
|
1,515
|
|
|
|
10
|
|
|
|
3,534
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
$
|
6,233,499
|
|
|
$
|
5,672,091
|
|
|
$
|
6,615,595
|
|
$
|
561,408
|
|
|
|
10
|
%
|
|
$
|
(382,096
|
)
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
$
|
279,980
|
|
|
$
|
279,980
|
|
|
$
|
279,980
|
|
$
|
0
|
|
|
|
0
|
%
|
|
$
|
0
|
|
|
0
|
%
|
Treasury stock
|
|
|
(59,669
|
)
|
|
|
(59,669
|
)
|
|
|
(61,076
|
)
|
|
0
|
|
|
|
0
|
|
|
|
1,407
|
|
|
2
|
|
Additional paid-in capital in excess of value assigned of common stock
|
|
|
120,362
|
|
|
|
119,920
|
|
|
|
119,987
|
|
|
442
|
|
|
|
0
|
|
|
|
375
|
|
|
0
|
|
Capital reserves
|
|
|
95,210
|
|
|
|
95,210
|
|
|
|
95,210
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
Regulatory reserves
|
|
|
136,019
|
|
|
|
136,019
|
|
|
|
136,019
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
0
|
|
Retained earnings
|
|
|
446,083
|
|
|
|
439,385
|
|
|
|
423,050
|
|
|
6,698
|
|
|
|
2
|
|
|
|
23,033
|
|
|
5
|
|
Other comprehensive income (loss)
|
|
|
(1,818
|
)
|
|
|
(1,744
|
)
|
|
|
420
|
|
|
(74
|
)
|
|
|
(4
|
)
|
|
|
(2,238
|
)
|
|
(533
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
$
|
1,016,167
|
|
|
$
|
1,009,101
|
|
|
$
|
993,590
|
|
$
|
7,066
|
|
|
|
1
|
%
|
|
$
|
22,577
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
7,249,666
|
|
|
$
|
6,681,192
|
|
|
$
|
7,609,185
|
|
$
|
568,474
|
|
|
|
9
|
%
|
|
$
|
(359,519
|
)
|
|
(5
|
)%
|
|
(*)
|
"n.m."
means not meaningful.
|
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)
|
|
|
|
|
|
|
December 31, 2019
|
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
|
CHANGE
|
|
|
%
|
|
|
CHANGE
|
|
|
%
|
|
Net Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
64,084
|
|
|
$
|
65,514
|
|
|
$
|
74,114
|
|
|
$
|
(1,430
|
)
|
|
|
(2
|
)%
|
|
$
|
(10,030
|
)
|
|
|
(14
|
)%
|
Interest expense
|
|
|
(37,178
|
)
|
|
|
(38,856
|
)
|
|
|
(46,146
|
)
|
|
|
1,678
|
|
|
|
4
|
|
|
|
8,968
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
26,906
|
|
|
|
26,658
|
|
|
|
27,968
|
|
|
|
248
|
|
|
|
1
|
|
|
|
(1,062
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions, net
|
|
|
5,354
|
|
|
|
2,815
|
|
|
|
5,402
|
|
|
|
2,539
|
|
|
|
90
|
|
|
|
(48
|
)
|
|
|
(1
|
)
|
(Loss) gain on financial instruments, net
|
|
|
(2,029
|
)
|
|
|
(169
|
)
|
|
|
253
|
|
|
|
(1,860
|
)
|
|
|
(1,101
|
)
|
|
|
(2,282
|
)
|
|
|
(902
|
)
|
Other income, net
|
|
|
1,200
|
|
|
|
217
|
|
|
|
461
|
|
|
|
983
|
|
|
|
453
|
|
|
|
739
|
|
|
|
160
|
|
Total other income, net
|
|
|
4,525
|
|
|
|
2,863
|
|
|
|
6,116
|
|
|
|
1,662
|
|
|
|
58
|
|
|
|
(1,591
|
)
|
|
|
(26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
31,431
|
|
|
|
29,521
|
|
|
|
34,084
|
|
|
|
1,910
|
|
|
|
6
|
|
|
|
(2,653
|
)
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal (impairment loss) on financial instruments
|
|
|
1,935
|
|
|
|
(612
|
)
|
|
|
1,321
|
|
|
|
2,547
|
|
|
|
416
|
|
|
|
614
|
|
|
|
46
|
|
Gain (loss) on non-financial assets, net
|
|
|
0
|
|
|
|
500
|
|
|
|
(2,289
|
)
|
|
|
(500
|
)
|
|
|
(100
|
)
|
|
|
2,289
|
|
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and other employee expenses
|
|
|
(6,389
|
)
|
|
|
(5,651
|
)
|
|
|
(6,599
|
)
|
|
|
(738
|
)
|
|
|
(13
|
)
|
|
|
210
|
|
|
|
3
|
|
Depreciation of equipment and leasehold improvements
|
|
|
(734
|
)
|
|
|
(724
|
)
|
|
|
(325
|
)
|
|
|
(10
|
)
|
|
|
(1
|
)
|
|
|
(409
|
)
|
|
|
(126
|
)
|
Amortization of intangible assets
|
|
|
(187
|
)
|
|
|
(160
|
)
|
|
|
(165
|
)
|
|
|
(27
|
)
|
|
|
(17
|
)
|
|
|
(22
|
)
|
|
|
(13
|
)
|
Other expenses
|
|
|
(3,960
|
)
|
|
|
(2,434
|
)
|
|
|
(5,294
|
)
|
|
|
(1,526
|
)
|
|
|
(63
|
)
|
|
|
1,334
|
|
|
|
25
|
|
Total operating expenses
|
|
|
(11,270
|
)
|
|
|
(8,969
|
)
|
|
|
(12,383
|
)
|
|
|
(2,301
|
)
|
|
|
(26
|
)
|
|
|
1,113
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
$
|
22,096
|
|
|
$
|
20,440
|
|
|
$
|
20,733
|
|
|
$
|
1,656
|
|
|
|
8
|
%
|
|
$
|
1,363
|
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value (period average)
|
|
$
|
25.45
|
|
|
$
|
25.52
|
|
|
$
|
25.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value (period end)
|
|
$
|
25.66
|
|
|
$
|
25.48
|
|
|
$
|
25.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares
|
|
|
39,602
|
|
|
|
39,602
|
|
|
|
39,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
|
|
|
39,602
|
|
|
|
39,602
|
|
|
|
39,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares period end
|
|
|
39,602
|
|
|
|
39,602
|
|
|
|
39,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.34
|
%
|
|
|
1.34
|
%
|
|
|
1.20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity
|
|
|
8.7
|
%
|
|
|
8.0
|
%
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
1.65
|
%
|
|
|
1.77
|
%
|
|
|
1.61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
1.18
|
%
|
|
|
1.19
|
%
|
|
|
1.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio
|
|
|
35.9
|
%
|
|
|
30.4
|
%
|
|
|
36.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses to total average assets
|
|
|
0.69
|
%
|
|
|
0.59
|
%
|
|
|
0.71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT III
CONSOLIDATED
STATEMENTS OF PROFIT OR LOSS
(In US$ thousand, except per share amounts and ratios)
|
|
FOR THE YEAR ENDED
|
|
|
|
|
|
|
|
|
|
(A)
|
|
|
(B)
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
(A) - (B)
CHANGE
|
|
|
%
|
|
Net Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
273,682
|
|
|
$
|
258,490
|
|
|
$
|
15,192
|
|
|
|
6
|
%
|
Interest expense
|
|
|
(164,167
|
)
|
|
|
(148,747
|
)
|
|
|
(15,420
|
)
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
|
|
|
109,515
|
|
|
|
109,743
|
|
|
|
(228
|
)
|
|
|
(0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions, net
|
|
|
15,647
|
|
|
|
17,185
|
|
|
|
(1,538
|
)
|
|
|
(9
|
)
|
Loss on financial instruments, net
|
|
|
(1,379
|
)
|
|
|
(1,009
|
)
|
|
|
(370
|
)
|
|
|
(37
|
)
|
Other income, net
|
|
|
2,874
|
|
|
|
1,670
|
|
|
|
1,204
|
|
|
|
72
|
|
Total other income, net
|
|
|
17,142
|
|
|
|
17,846
|
|
|
|
(704
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
126,657
|
|
|
|
127,589
|
|
|
|
(932
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss on financial instruments
|
|
|
(430
|
)
|
|
|
(57,515
|
)
|
|
|
57,085
|
|
|
|
99
|
|
Gain (loss) on non-financial assets, net
|
|
|
500
|
|
|
|
(10,018
|
)
|
|
|
10,518
|
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and other employee expenses
|
|
|
(24,179
|
)
|
|
|
(27,989
|
)
|
|
|
3,810
|
|
|
|
14
|
|
Depreciation of equipment and leasehold improvements
|
|
|
(2,854
|
)
|
|
|
(1,282
|
)
|
|
|
(1,572
|
)
|
|
|
(123
|
)
|
Amortization of intangible assets
|
|
|
(702
|
)
|
|
|
(1,176
|
)
|
|
|
474
|
|
|
|
40
|
|
Other expenses
|
|
|
(12,939
|
)
|
|
|
(18,471
|
)
|
|
|
5,532
|
|
|
|
30
|
|
Total operating expenses
|
|
|
(40,674
|
)
|
|
|
(48,918
|
)
|
|
|
8,244
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
$
|
86,053
|
|
|
$
|
11,138
|
|
|
$
|
74,915
|
|
|
|
673
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
2.17
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
2.17
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
Book value (period average)
|
|
$
|
25.41
|
|
|
$
|
26.06
|
|
|
|
|
|
|
|
|
|
Book value (period end)
|
|
$
|
25.66
|
|
|
$
|
25.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic shares
|
|
|
39,575
|
|
|
|
39,543
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
|
|
|
39,575
|
|
|
|
39,543
|
|
|
|
|
|
|
|
|
|
Basic shares period end
|
|
|
39,602
|
|
|
|
39,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.36
|
%
|
|
|
0.17
|
%
|
|
|
|
|
|
|
|
|
Return on average equity
|
|
|
8.6
|
%
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
1.74
|
%
|
|
|
1.71
|
%
|
|
|
|
|
|
|
|
|
Net interest spread
|
|
|
1.19
|
%
|
|
|
1.21
|
%
|
|
|
|
|
|
|
|
|
Efficiency Ratio
|
|
|
32.1
|
%
|
|
|
38.3
|
%
|
|
|
|
|
|
|
|
|
Operating expenses to total average assets
|
|
|
0.64
|
%
|
|
|
0.76
|
%
|
|
|
|
|
|
|
|
|
EXHIBIT
IV
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES
|
|
FOR
THE THREE MONTHS ENDED
|
|
|
|
December
31, 2019
|
|
|
September
30, 2019
|
|
|
December
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
|
|
$
|
810,691
|
|
|
$
|
3,716
|
|
|
|
1.79
|
%
|
|
$
|
658,220
|
|
|
$
|
3,757
|
|
|
|
2.23
|
%
|
|
$
|
1,083,628
|
|
|
$
|
6,322
|
|
|
|
2.28
|
%
|
Securities
at fair value through OCI
|
|
|
7,729
|
|
|
|
54
|
|
|
|
2.71
|
|
|
|
12,143
|
|
|
|
110
|
|
|
|
3.56
|
|
|
|
19,135
|
|
|
|
252
|
|
|
|
5.15
|
|
Securities
at amortized cost (1)
|
|
|
74,761
|
|
|
|
662
|
|
|
|
3.47
|
|
|
|
73,351
|
|
|
|
653
|
|
|
|
3.48
|
|
|
|
79,907
|
|
|
|
626
|
|
|
|
3.06
|
|
Loans,
net of unearned interest
|
|
|
5,573,386
|
|
|
|
59,652
|
|
|
|
4.19
|
|
|
|
5,247,195
|
|
|
|
60,994
|
|
|
|
4.55
|
|
|
|
5,714,077
|
|
|
|
66,914
|
|
|
|
4.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTEREST EARNING ASSETS
|
|
$
|
6,466,567
|
|
|
$
|
64,084
|
|
|
|
3.88
|
%
|
|
$
|
5,990,909
|
|
|
$
|
65,514
|
|
|
|
4.28
|
%
|
|
$
|
6,896,748
|
|
|
$
|
74,114
|
|
|
|
4.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for expected credit losses on loans
|
|
|
(103,221
|
)
|
|
|
|
|
|
|
|
|
|
|
(99,476
|
)
|
|
|
|
|
|
|
|
|
|
|
(138,848
|
)
|
|
|
|
|
|
|
|
|
Non
interest earning assets
|
|
|
158,324
|
|
|
|
|
|
|
|
|
|
|
|
167,755
|
|
|
|
|
|
|
|
|
|
|
|
121,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
6,521,669
|
|
|
|
|
|
|
|
|
|
|
$
|
6,059,188
|
|
|
|
|
|
|
|
|
|
|
$
|
6,879,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
BEARING LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,703,014
|
|
|
$
|
14,154
|
|
|
|
2.05
|
%
|
|
|
2,692,159
|
|
|
$
|
16,692
|
|
|
|
2.43
|
%
|
|
$
|
2,551,232
|
|
|
$
|
15,986
|
|
|
|
2.45
|
%
|
Securities
sold under repurchase agreement and short-term borrowings and debt
|
|
|
1,160,886
|
|
|
|
8,533
|
|
|
|
2.88
|
|
|
|
891,872
|
|
|
|
8,361
|
|
|
|
3.67
|
|
|
|
1,747,793
|
|
|
|
13,979
|
|
|
|
3.13
|
|
Long-term
borrowings and debt, net (2)
|
|
|
1,537,943
|
|
|
|
14,491
|
|
|
|
3.69
|
|
|
|
1,338,207
|
|
|
|
13,803
|
|
|
|
4.04
|
|
|
|
1,472,192
|
|
|
|
16,180
|
|
|
|
4.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTEREST BEARING LIABILITIES
|
|
$
|
5,401,844
|
|
|
$
|
37,178
|
|
|
|
2.69
|
%
|
|
$
|
4,922,239
|
|
|
$
|
38,856
|
|
|
|
3.09
|
%
|
|
$
|
5,771,217
|
|
|
$
|
46,145
|
|
|
|
3.13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non
interest bearing liabilities and other liabilities
|
|
$
|
112,039
|
|
|
|
|
|
|
|
|
|
|
$
|
126,214
|
|
|
|
|
|
|
|
|
|
|
$
|
118,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
5,513,883
|
|
|
|
|
|
|
|
|
|
|
|
5,048,453
|
|
|
|
|
|
|
|
|
|
|
|
5,889,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
1,007,786
|
|
|
|
|
|
|
|
|
|
|
|
1,010,735
|
|
|
|
|
|
|
|
|
|
|
|
990,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
6,521,669
|
|
|
|
|
|
|
|
|
|
|
$
|
6,059,188
|
|
|
|
|
|
|
|
|
|
|
$
|
6,879,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST SPREAD
|
|
|
|
|
|
|
|
|
|
|
1.18
|
%
|
|
|
|
|
|
|
|
|
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
1.08
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME AND NET INTEREST MARGIN
|
|
|
|
|
|
$
|
26,906
|
|
|
|
1.65
|
%
|
|
|
|
|
|
$
|
26,658
|
|
|
|
1.77
|
%
|
|
|
|
|
|
$
|
27,969
|
|
|
|
1.61
|
%
|
(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.
EXHIBIT V
CONSOLIDATED
NET INTEREST INCOME AND AVERAGE BALANCES
|
|
FOR
THE YEAR ENDED
|
|
|
|
December
31, 2019
|
|
|
December
31, 2018
|
|
|
|
AVERAGE
|
|
|
|
|
|
AVG.
|
|
|
AVERAGE
|
|
|
|
|
|
AVG.
|
|
|
|
BALANCE
|
|
|
INTEREST
|
|
|
RATE
|
|
|
BALANCE
|
|
|
INTEREST
|
|
|
RATE
|
|
|
|
(In US$
thousand)
|
|
INTEREST EARNING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
755,781
|
|
|
$
|
17,011
|
|
|
|
2.22
|
%
|
|
$
|
784,062
|
|
|
$
|
15,615
|
|
|
|
1.96
|
%
|
Securities at fair value
through OCI
|
|
|
13,975
|
|
|
|
568
|
|
|
|
4.01
|
|
|
|
16,955
|
|
|
|
668
|
|
|
|
3.89
|
|
Securities
at amortized cost (1)
|
|
|
75,854
|
|
|
|
2,641
|
|
|
|
3.43
|
|
|
|
74,577
|
|
|
|
2,231
|
|
|
|
2.95
|
|
Loans, net of unearned
interest
|
|
|
5,448,716
|
|
|
|
253,462
|
|
|
|
4.59
|
|
|
|
5,551,890
|
|
|
|
239,976
|
|
|
|
4.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTEREST EARNING ASSETS
|
|
$
|
6,294,326
|
|
|
$
|
273,682
|
|
|
|
4.29
|
%
|
|
$
|
6,427,483
|
|
|
$
|
258,490
|
|
|
|
3.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for expected
credit losses on loans
|
|
|
(100,907
|
)
|
|
|
|
|
|
|
|
|
|
|
(98,107
|
)
|
|
|
|
|
|
|
|
|
Non interest earning assets
|
|
|
153,061
|
|
|
|
|
|
|
|
|
|
|
|
122,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
6,346,480
|
|
|
|
|
|
|
|
|
|
|
$
|
6,451,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
2,718,736
|
|
|
$
|
67,435
|
|
|
|
2.45
|
%
|
|
$
|
2,950,368
|
|
|
$
|
63,146
|
|
|
|
2.11
|
%
|
Securities sold under
repurchase agreement and short-term borrowings and debt
|
|
|
1,116,876
|
|
|
|
38,944
|
|
|
|
3.44
|
|
|
|
1,123,438
|
|
|
|
33,941
|
|
|
|
2.98
|
|
Long-term
borrowings and debt, net (2)
|
|
|
1,388,113
|
|
|
|
57,788
|
|
|
|
4.11
|
|
|
|
1,244,619
|
|
|
|
51,660
|
|
|
|
4.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INTEREST BEARING LIABILITIES
|
|
$
|
5,223,725
|
|
|
$
|
164,167
|
|
|
|
3.10
|
%
|
|
$
|
5,318,425
|
|
|
$
|
148,747
|
|
|
|
2.76
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest bearing liabilities
and other liabilities
|
|
$
|
117,190
|
|
|
|
|
|
|
|
|
|
|
$
|
102,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
5,340,915
|
|
|
|
|
|
|
|
|
|
|
|
5,420,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
1,005,565
|
|
|
|
|
|
|
|
|
|
|
|
1,030,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
6,346,480
|
|
|
|
|
|
|
|
|
|
|
$
|
6,451,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST SPREAD
|
|
|
|
|
|
|
|
|
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
1.21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INTEREST INCOME AND NET INTEREST MARGIN
|
|
|
|
|
|
$
|
109,515
|
|
|
|
1.74
|
%
|
|
|
|
|
|
$
|
109,743
|
|
|
|
1.71
|
%
|
(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.
EXHIBIT VI
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(In US$ thousand, except per share amounts and ratios)
|
|
FOR THE YEAR
|
|
|
FOR THE THREE MONTHS ENDED
|
|
|
FOR THE YEAR
|
|
|
|
ENDED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENDED
|
|
|
|
DEC 31/19
|
|
|
DEC 31/19
|
|
|
SEP 30/19
|
|
|
JUN 30/19
|
|
|
MAR 31/19
|
|
|
DEC 31/18
|
|
|
DEC 31/18
|
|
Net Interest Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
273,682
|
|
|
$
|
64,084
|
|
|
$
|
65,514
|
|
|
$
|
70,530
|
|
|
$
|
73,554
|
|
|
$
|
74,114
|
|
|
$
|
258,490
|
|
Interest expense
|
|
|
(164,167
|
)
|
|
|
(37,178
|
)
|
|
|
(38,856
|
)
|
|
|
(42,599
|
)
|
|
|
(45,534
|
)
|
|
|
(46,146
|
)
|
|
|
(148,747
|
)
|
Net Interest Income
|
|
|
109,515
|
|
|
|
26,906
|
|
|
|
26,658
|
|
|
|
27,931
|
|
|
|
28,020
|
|
|
|
27,968
|
|
|
|
109,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees and commissions, net
|
|
|
15,647
|
|
|
|
5,354
|
|
|
|
2,815
|
|
|
|
5,128
|
|
|
|
2,350
|
|
|
|
5,402
|
|
|
|
17,185
|
|
(Loss) gain on financial instruments, net
|
|
|
(1,379
|
)
|
|
|
(2,029
|
)
|
|
|
(169
|
)
|
|
|
63
|
|
|
|
756
|
|
|
|
253
|
|
|
|
(1,009
|
)
|
Other income, net
|
|
|
2,874
|
|
|
|
1,200
|
|
|
|
217
|
|
|
|
512
|
|
|
|
945
|
|
|
|
461
|
|
|
|
1,670
|
|
Total other income, net
|
|
|
17,142
|
|
|
|
4,525
|
|
|
|
2,863
|
|
|
|
5,703
|
|
|
|
4,051
|
|
|
|
6,116
|
|
|
|
17,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
126,657
|
|
|
|
31,431
|
|
|
|
29,521
|
|
|
|
33,634
|
|
|
|
32,071
|
|
|
|
34,084
|
|
|
|
127,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Impairment loss) reversal on financial instruments
|
|
|
(430
|
)
|
|
|
1,935
|
|
|
|
(612
|
)
|
|
|
(811
|
)
|
|
|
(942
|
)
|
|
|
1,321
|
|
|
|
(57,515
|
)
|
Gain (loss) on non-financial assets, net
|
|
|
500
|
|
|
|
0
|
|
|
|
500
|
|
|
|
0
|
|
|
|
0
|
|
|
|
(2,289
|
)
|
|
|
(10,018
|
)
|
Total operating expenses
|
|
|
(40,674
|
)
|
|
|
(11,270
|
)
|
|
|
(8,969
|
)
|
|
|
(10,551
|
)
|
|
|
(9,884
|
)
|
|
|
(12,383
|
)
|
|
|
(48,918
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
$
|
86,053
|
|
|
$
|
22,096
|
|
|
$
|
20,440
|
|
|
$
|
22,272
|
|
|
$
|
21,245
|
|
|
$
|
20,733
|
|
|
$
|
11,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
2.17
|
|
|
$
|
0.56
|
|
|
$
|
0.52
|
|
|
$
|
0.56
|
|
|
$
|
0.54
|
|
|
$
|
0.52
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
1.36
|
%
|
|
|
1.34
|
%
|
|
|
1.34
|
%
|
|
|
1.43
|
%
|
|
|
1.31
|
%
|
|
|
1.20
|
%
|
|
|
0.17
|
%
|
Return on average equity
|
|
|
8.6
|
%
|
|
|
8.7
|
%
|
|
|
8.0
|
%
|
|
|
9.0
|
%
|
|
|
8.6
|
%
|
|
|
8.3
|
%
|
|
|
1.1
|
%
|
Net interest margin
|
|
|
1.74
|
%
|
|
|
1.65
|
%
|
|
|
1.77
|
%
|
|
|
1.81
|
%
|
|
|
1.74
|
%
|
|
|
1.61
|
%
|
|
|
1.71
|
%
|
Net interest spread
|
|
|
1.19
|
%
|
|
|
1.18
|
%
|
|
|
1.19
|
%
|
|
|
1.22
|
%
|
|
|
1.16
|
%
|
|
|
1.08
|
%
|
|
|
1.21
|
%
|
Efficiency Ratio
|
|
|
32.1
|
%
|
|
|
35.9
|
%
|
|
|
30.4
|
%
|
|
|
31.4
|
%
|
|
|
30.8
|
%
|
|
|
36.3
|
%
|
|
|
38.3
|
%
|
Operating expenses to total average assets
|
|
|
0.64
|
%
|
|
|
0.69
|
%
|
|
|
0.59
|
%
|
|
|
0.68
|
%
|
|
|
0.61
|
%
|
|
|
0.71
|
%
|
|
|
0.76
|
%
|
EXHIBIT
VII
BUSINESS SEGMENT ANALYSIS
(In US$ thousand)
|
|
FOR
THE YEAR ENDED
|
|
|
FOR
THE THREE MONTHS ENDED
|
|
|
|
DEC
31/19
|
|
|
DEC
31/18
|
|
|
DEC
31/19
|
|
|
SEP
30/19
|
|
|
DEC
31/18
|
|
COMMERCIAL
BUSINESS SEGMENT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
108,398
|
|
|
$
|
109,781
|
|
|
$
|
26,100
|
|
|
$
|
26,936
|
|
|
$
|
28,350
|
|
Other
income
|
|
|
17,835
|
|
|
|
18,002
|
|
|
|
6,298
|
|
|
|
3,418
|
|
|
|
5,759
|
|
Total
revenues
|
|
|
126,233
|
|
|
|
127,783
|
|
|
|
32,398
|
|
|
|
30,354
|
|
|
|
34,109
|
|
(Impairment
loss) reversal on financial instruments
|
|
|
(744
|
)
|
|
|
(57,621
|
)
|
|
|
1,935
|
|
|
|
(934
|
)
|
|
|
1,263
|
|
Gain
(loss) on non-financial assets, net
|
|
|
500
|
|
|
|
(5,967
|
)
|
|
|
0
|
|
|
|
500
|
|
|
|
(2,289
|
)
|
Operating
expenses
|
|
|
(31,183
|
)
|
|
|
(37,436
|
)
|
|
|
(8,724
|
)
|
|
|
(6,998
|
)
|
|
|
(9,317
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the segment
|
|
$
|
94,806
|
|
|
$
|
26,759
|
|
|
$
|
25,609
|
|
|
$
|
22,922
|
|
|
$
|
23,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
assets
|
|
|
5,967,157
|
|
|
|
5,726,977
|
|
|
|
5,967,157
|
|
|
|
5,577,142
|
|
|
|
5,726,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TREASURY
BUSINESS SEGMENT:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
1,117
|
|
|
$
|
(38
|
)
|
|
$
|
806
|
|
|
$
|
(278
|
)
|
|
$
|
(382
|
)
|
Other
income (expense)
|
|
|
(693
|
)
|
|
|
(156
|
)
|
|
|
(1,773
|
)
|
|
|
(555
|
)
|
|
|
357
|
|
Total
revenues
|
|
|
424
|
|
|
|
(194
|
)
|
|
|
(967
|
)
|
|
|
(833
|
)
|
|
|
(25
|
)
|
Reversal
on financial instruments
|
|
|
314
|
|
|
|
106
|
|
|
|
0
|
|
|
|
322
|
|
|
|
58
|
|
Operating
expenses
|
|
|
(9,491
|
)
|
|
|
(11,482
|
)
|
|
|
(2,546
|
)
|
|
|
(1,971
|
)
|
|
|
(3,066
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
for the segment
|
|
$
|
(8,753
|
)
|
|
$
|
(11,570
|
)
|
|
$
|
(3,513
|
)
|
|
$
|
(2,482
|
)
|
|
$
|
(3,033
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
assets
|
|
|
1,273,678
|
|
|
|
1,857,196
|
|
|
|
1,273,678
|
|
|
|
1,070,607
|
|
|
|
1,857,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
|
109,515
|
|
|
$
|
109,743
|
|
|
$
|
26,906
|
|
|
$
|
26,658
|
|
|
$
|
27,968
|
|
Other
income
|
|
|
17,142
|
|
|
|
17,846
|
|
|
|
4,525
|
|
|
|
2,863
|
|
|
|
6,116
|
|
Total
revenues
|
|
|
126,657
|
|
|
|
127,589
|
|
|
|
31,431
|
|
|
|
29,521
|
|
|
|
34,084
|
|
(Impairment
loss) reversal on financial instruments
|
|
|
(430
|
)
|
|
|
(57,515
|
)
|
|
|
1,935
|
|
|
|
(612
|
)
|
|
|
1,321
|
|
Gain
(loss) on non-financial assets, net
|
|
|
500
|
|
|
|
(5,967
|
)
|
|
|
0
|
|
|
|
500
|
|
|
|
(2,289
|
)
|
Operating
expenses
|
|
|
(40,674
|
)
|
|
|
(48,918
|
)
|
|
|
(11,270
|
)
|
|
|
(8,969
|
)
|
|
|
(12,383
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
profit for reportable segments
|
|
|
86,053
|
|
|
|
15,189
|
|
|
|
22,096
|
|
|
|
20,440
|
|
|
|
20,733
|
|
Unallocated
impairment loss on non-financial assets
|
|
|
0
|
|
|
|
(4,051
|
)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
for the period
|
|
$
|
86,053
|
|
|
$
|
11,138
|
|
|
$
|
22,096
|
|
|
$
|
20,440
|
|
|
$
|
20,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
segment assets
|
|
|
7,240,835
|
|
|
|
7,584,173
|
|
|
|
7,240,835
|
|
|
|
6,647,749
|
|
|
|
7,584,173
|
|
Unallocated
assets
|
|
|
8,831
|
|
|
|
25,012
|
|
|
|
8,831
|
|
|
|
33,443
|
|
|
|
25,012
|
|
Total
assets
|
|
|
7,249,666
|
|
|
|
7,609,185
|
|
|
|
7,249,666
|
|
|
|
6,681,192
|
|
|
|
7,609,185
|
|
EXHIBIT
VIII
CREDIT PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ million)
|
|
AT
THE END OF,
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
|
|
|
|
|
December
31, 2019
|
|
|
September
30, 2019
|
|
|
December
31, 2018
|
|
|
Change
in Amount
|
|
COUNTRY
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
(A)
- (B)
|
|
|
(A)
- (C)
|
|
ARGENTINA
|
|
$
|
226
|
|
|
|
3
|
|
|
$
|
263
|
|
|
|
4
|
|
|
$
|
611
|
|
|
|
10
|
|
|
($
|
37
|
)
|
|
($
|
385
|
)
|
BOLIVIA
|
|
|
7
|
|
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
|
14
|
|
|
|
0
|
|
|
|
2
|
|
|
|
(7
|
)
|
BRAZIL
|
|
|
1,067
|
|
|
|
16
|
|
|
|
1,063
|
|
|
|
17
|
|
|
|
1,210
|
|
|
|
19
|
|
|
|
4
|
|
|
|
(143
|
)
|
CHILE
|
|
|
688
|
|
|
|
10
|
|
|
|
661
|
|
|
|
10
|
|
|
|
182
|
|
|
|
3
|
|
|
|
27
|
|
|
|
506
|
|
COLOMBIA
|
|
|
972
|
|
|
|
15
|
|
|
|
844
|
|
|
|
13
|
|
|
|
706
|
|
|
|
11
|
|
|
|
128
|
|
|
|
266
|
|
COSTA
RICA
|
|
|
280
|
|
|
|
4
|
|
|
|
317
|
|
|
|
5
|
|
|
|
409
|
|
|
|
6
|
|
|
|
(37
|
)
|
|
|
(129
|
)
|
DOMINICAN
REPUBLIC
|
|
|
306
|
|
|
|
5
|
|
|
|
213
|
|
|
|
3
|
|
|
|
318
|
|
|
|
5
|
|
|
|
93
|
|
|
|
(12
|
)
|
ECUADOR
|
|
|
427
|
|
|
|
6
|
|
|
|
416
|
|
|
|
7
|
|
|
|
438
|
|
|
|
7
|
|
|
|
11
|
|
|
|
(11
|
)
|
EL
SALVADOR
|
|
|
60
|
|
|
|
1
|
|
|
|
67
|
|
|
|
1
|
|
|
|
71
|
|
|
|
1
|
|
|
|
(7
|
)
|
|
|
(11
|
)
|
GUATEMALA
|
|
|
323
|
|
|
|
5
|
|
|
|
359
|
|
|
|
6
|
|
|
|
344
|
|
|
|
5
|
|
|
|
(36
|
)
|
|
|
(21
|
)
|
HONDURAS
|
|
|
129
|
|
|
|
2
|
|
|
|
113
|
|
|
|
2
|
|
|
|
89
|
|
|
|
1
|
|
|
|
16
|
|
|
|
40
|
|
JAMAICA
|
|
|
38
|
|
|
|
1
|
|
|
|
39
|
|
|
|
1
|
|
|
|
22
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
16
|
|
MEXICO
|
|
|
803
|
|
|
|
12
|
|
|
|
874
|
|
|
|
14
|
|
|
|
917
|
|
|
|
14
|
|
|
|
(71
|
)
|
|
|
(114
|
)
|
PANAMA
|
|
|
330
|
|
|
|
5
|
|
|
|
332
|
|
|
|
5
|
|
|
|
555
|
|
|
|
9
|
|
|
|
(2
|
)
|
|
|
(225
|
)
|
PARAGUAY
|
|
|
139
|
|
|
|
2
|
|
|
|
104
|
|
|
|
2
|
|
|
|
159
|
|
|
|
2
|
|
|
|
35
|
|
|
|
(20
|
)
|
PERU
|
|
|
158
|
|
|
|
2
|
|
|
|
136
|
|
|
|
2
|
|
|
|
83
|
|
|
|
1
|
|
|
|
22
|
|
|
|
75
|
|
TRINIDAD
& TOBAGO
|
|
|
182
|
|
|
|
3
|
|
|
|
190
|
|
|
|
3
|
|
|
|
153
|
|
|
|
2
|
|
|
|
(8
|
)
|
|
|
29
|
|
URUGUAY
|
|
|
1
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
|
1
|
|
|
|
(10
|
)
|
OTHER
NON-LATAM (1)
|
|
|
446
|
|
|
|
7
|
|
|
|
306
|
|
|
|
5
|
|
|
|
105
|
|
|
|
2
|
|
|
|
140
|
|
|
|
341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
CREDIT PORTFOLIO (2)
|
|
$
|
6,582
|
|
|
|
100
|
%
|
|
$
|
6,302
|
|
|
|
100
|
%
|
|
$
|
6,397
|
|
|
|
100
|
%
|
|
$
|
280
|
|
|
$
|
185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNEARNED
INTEREST AND DEFERRED FEES
|
|
|
(12
|
)
|
|
|
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
CREDIT PORTFOLIO, NET OF UNEARNED INTEREST & DEFERRED FEES
|
|
$
|
6,570
|
|
|
|
|
|
|
$
|
6,288
|
|
|
|
|
|
|
$
|
6,380
|
|
|
|
|
|
|
$
|
282
|
|
|
$
|
190
|
|
(1)
|
Risk
in highly rated countries outside the Region, mostly in Europe and North America, related to transactions carried out in the
Region.
|
(2)
|
Includes
gross loans (or the “Loan Portfolio”), securities at FVOCI 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.
|
EXHIBIT
IX
COMMERCIAL PORTFOLIO
DISTRIBUTION BY COUNTRY
(In
US$ million)
|
|
AT THE END OF,
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
|
|
|
|
|
|
|
|
December
31, 2019
|
|
|
September
30, 2019
|
|
|
December
31, 2018
|
|
|
Change
in Amount
|
|
COUNTRY
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
(A)
- (B)
|
|
|
(A)
- (C)
|
|
ARGENTINA
|
|
$
|
226
|
|
|
|
3
|
|
|
$
|
263
|
|
|
|
4
|
|
|
$
|
611
|
|
|
|
10
|
|
|
$
|
(37
|
)
|
|
$
|
(385
|
)
|
BOLIVIA
|
|
|
7
|
|
|
|
0
|
|
|
|
5
|
|
|
|
0
|
|
|
|
14
|
|
|
|
0
|
|
|
|
2
|
|
|
|
(7
|
)
|
BRAZIL
|
|
|
1,065
|
|
|
|
16
|
|
|
|
1,058
|
|
|
|
17
|
|
|
|
1,206
|
|
|
|
19
|
|
|
|
7
|
|
|
|
(141
|
)
|
CHILE
|
|
|
683
|
|
|
|
11
|
|
|
|
656
|
|
|
|
11
|
|
|
|
177
|
|
|
|
3
|
|
|
|
27
|
|
|
|
506
|
|
COLOMBIA
|
|
|
957
|
|
|
|
15
|
|
|
|
829
|
|
|
|
13
|
|
|
|
678
|
|
|
|
11
|
|
|
|
128
|
|
|
|
279
|
|
COSTA
RICA
|
|
|
280
|
|
|
|
4
|
|
|
|
317
|
|
|
|
5
|
|
|
|
409
|
|
|
|
6
|
|
|
|
(37
|
)
|
|
|
(129
|
)
|
DOMINICAN
REPUBLIC
|
|
|
306
|
|
|
|
5
|
|
|
|
213
|
|
|
|
3
|
|
|
|
318
|
|
|
|
5
|
|
|
|
93
|
|
|
|
(12
|
)
|
ECUADOR
|
|
|
427
|
|
|
|
7
|
|
|
|
416
|
|
|
|
7
|
|
|
|
438
|
|
|
|
7
|
|
|
|
11
|
|
|
|
(11
|
)
|
EL
SALVADOR
|
|
|
60
|
|
|
|
1
|
|
|
|
67
|
|
|
|
1
|
|
|
|
71
|
|
|
|
1
|
|
|
|
(7
|
)
|
|
|
(11
|
)
|
GUATEMALA
|
|
|
323
|
|
|
|
5
|
|
|
|
359
|
|
|
|
6
|
|
|
|
344
|
|
|
|
5
|
|
|
|
(36
|
)
|
|
|
(21
|
)
|
HONDURAS
|
|
|
129
|
|
|
|
2
|
|
|
|
113
|
|
|
|
2
|
|
|
|
89
|
|
|
|
1
|
|
|
|
16
|
|
|
|
40
|
|
JAMAICA
|
|
|
38
|
|
|
|
1
|
|
|
|
39
|
|
|
|
1
|
|
|
|
22
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
|
16
|
|
MEXICO
|
|
|
781
|
|
|
|
12
|
|
|
|
847
|
|
|
|
14
|
|
|
|
890
|
|
|
|
14
|
|
|
|
(66
|
)
|
|
|
(109
|
)
|
PANAMA
|
|
|
294
|
|
|
|
5
|
|
|
|
299
|
|
|
|
5
|
|
|
|
520
|
|
|
|
8
|
|
|
|
(5
|
)
|
|
|
(226
|
)
|
PARAGUAY
|
|
|
139
|
|
|
|
2
|
|
|
|
104
|
|
|
|
2
|
|
|
|
159
|
|
|
|
3
|
|
|
|
35
|
|
|
|
(20
|
)
|
PERU
|
|
|
158
|
|
|
|
2
|
|
|
|
136
|
|
|
|
2
|
|
|
|
83
|
|
|
|
1
|
|
|
|
22
|
|
|
|
75
|
|
TRINIDAD
& TOBAGO
|
|
|
182
|
|
|
|
3
|
|
|
|
190
|
|
|
|
3
|
|
|
|
145
|
|
|
|
2
|
|
|
|
(8
|
)
|
|
|
37
|
|
URUGUAY
|
|
|
1
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
11
|
|
|
|
0
|
|
|
|
1
|
|
|
|
(10
|
)
|
OTHER
NON-LATAM (1)
|
|
|
446
|
|
|
|
7
|
|
|
|
306
|
|
|
|
5
|
|
|
|
105
|
|
|
|
2
|
|
|
|
140
|
|
|
|
341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMMERCIAL PORTFOLIO (2)
|
|
$
|
6,502
|
|
|
|
100
|
%
|
|
$
|
6,217
|
|
|
|
100
|
%
|
|
$
|
6,290
|
|
|
|
100
|
%
|
|
$
|
285
|
|
|
$
|
212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNEARNED
INTEREST AND DEFERRED FEES
|
|
|
(12
|
)
|
|
|
|
|
|
|
(14
|
)
|
|
|
|
|
|
|
(17
|
)
|
|
|
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
COMMERCIAL PORTFOLIO, NET OF UNEARNED
INTEREST & DEFERRED FEES
|
|
$
|
6,490
|
|
|
|
|
|
|
$
|
6,203
|
|
|
|
|
|
|
$
|
6,273
|
|
|
|
|
|
|
$
|
287
|
|
|
$
|
217
|
|
|
(1)
|
Risk
in highly rated countries outside the Region, mostly in Europe and North America, related
to transactions carried out in the Region.
|
|
(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.
|
EXHIBIT X
INVESTMENT PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ million)
|
|
AT THE END OF,
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
|
|
|
|
|
|
|
|
December
31, 2019
|
|
|
September
30, 2019
|
|
|
December
31, 2018
|
|
|
Change
in Amount
|
|
COUNTRY
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
Amount
|
|
|
%
of Total
Outstanding
|
|
|
(A)
- (B)
|
|
|
(A)
- (C)
|
|
BRAZIL
|
|
$
|
2
|
|
|
|
2
|
|
|
$
|
5
|
|
|
|
5
|
|
|
$
|
4
|
|
|
|
4
|
|
|
$
|
(3
|
)
|
|
$
|
(2
|
)
|
CHILE
|
|
|
5
|
|
|
|
6
|
|
|
|
5
|
|
|
|
6
|
|
|
|
5
|
|
|
|
5
|
|
|
|
0
|
|
|
|
0
|
|
COLOMBIA
|
|
|
15
|
|
|
|
19
|
|
|
|
15
|
|
|
|
18
|
|
|
|
28
|
|
|
|
26
|
|
|
|
0
|
|
|
|
(13
|
)
|
MEXICO
|
|
|
22
|
|
|
|
27
|
|
|
|
27
|
|
|
|
32
|
|
|
|
27
|
|
|
|
25
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
PANAMA
|
|
|
36
|
|
|
|
45
|
|
|
|
33
|
|
|
|
39
|
|
|
|
35
|
|
|
|
32
|
|
|
|
3
|
|
|
|
1
|
|
TRINIDAD
& TOBAGO
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
8
|
|
|
|
7
|
|
|
|
0
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
INVESTMENT PORTOFOLIO (1)
|
|
$
|
80
|
|
|
|
100
|
%
|
|
$
|
85
|
|
|
|
100
|
%
|
|
$
|
107
|
|
|
|
100
|
%
|
|
$
|
(5
|
)
|
|
$
|
(27
|
)
|
|
(1)
|
Includes
securities at FVOCI and at amortized cost, gross of interest receivable and the allowance
for losses.
|
EXHIBIT
XI
LOAN DISBURSEMENTS
DISTRIBUTION BY COUNTRY
(In US$ million)
|
|
YEARLY
|
|
|
QUARTERLY
|
|
|
Change
in Amount
|
|
|
|
(A)
|
|
|
(B)
|
|
|
(C)
|
|
|
(D)
|
|
|
(E)
|
|
|
|
|
|
|
|
|
|
|
COUNTRY
|
|
2019
|
|
|
2018
|
|
|
4Q19
|
|
|
3Q19
|
|
|
4Q18
|
|
|
(A)
- (B)
|
|
|
(C)
- (D)
|
|
|
(C)
- (E)
|
|
ARGENTINA
|
|
$
|
193
|
|
|
$
|
958
|
|
|
$
|
0
|
|
|
$
|
50
|
|
|
$
|
252
|
|
|
$
|
(765
|
)
|
|
$
|
(50
|
)
|
|
$
|
(252
|
)
|
BOLIVIA
|
|
|
7
|
|
|
|
24
|
|
|
|
2
|
|
|
|
5
|
|
|
|
4
|
|
|
|
(17
|
)
|
|
|
(3
|
)
|
|
|
(2
|
)
|
BRAZIL
|
|
|
1,194
|
|
|
|
1,015
|
|
|
|
415
|
|
|
|
425
|
|
|
|
240
|
|
|
|
179
|
|
|
|
(10
|
)
|
|
|
175
|
|
CHILE
|
|
|
1,157
|
|
|
|
396
|
|
|
|
262
|
|
|
|
358
|
|
|
|
28
|
|
|
|
761
|
|
|
|
(96
|
)
|
|
|
234
|
|
COLOMBIA
|
|
|
1,424
|
|
|
|
1,276
|
|
|
|
429
|
|
|
|
315
|
|
|
|
285
|
|
|
|
148
|
|
|
|
114
|
|
|
|
144
|
|
COSTA
RICA
|
|
|
466
|
|
|
|
577
|
|
|
|
146
|
|
|
|
112
|
|
|
|
233
|
|
|
|
(111
|
)
|
|
|
34
|
|
|
|
(87
|
)
|
DOMINICAN
REPUBLIC
|
|
|
556
|
|
|
|
532
|
|
|
|
127
|
|
|
|
124
|
|
|
|
103
|
|
|
|
24
|
|
|
|
3
|
|
|
|
24
|
|
ECUADOR
|
|
|
775
|
|
|
|
998
|
|
|
|
179
|
|
|
|
190
|
|
|
|
272
|
|
|
|
(223
|
)
|
|
|
(11
|
)
|
|
|
(93
|
)
|
EL
SALVADOR
|
|
|
126
|
|
|
|
119
|
|
|
|
29
|
|
|
|
41
|
|
|
|
30
|
|
|
|
7
|
|
|
|
(12
|
)
|
|
|
(1
|
)
|
GUATEMALA
|
|
|
490
|
|
|
|
470
|
|
|
|
159
|
|
|
|
60
|
|
|
|
191
|
|
|
|
20
|
|
|
|
99
|
|
|
|
(32
|
)
|
HONDURAS
|
|
|
150
|
|
|
|
146
|
|
|
|
17
|
|
|
|
52
|
|
|
|
49
|
|
|
|
4
|
|
|
|
(35
|
)
|
|
|
(32
|
)
|
JAMAICA
|
|
|
291
|
|
|
|
278
|
|
|
|
134
|
|
|
|
59
|
|
|
|
58
|
|
|
|
13
|
|
|
|
75
|
|
|
|
76
|
|
MEXICO
|
|
|
3,666
|
|
|
|
4,523
|
|
|
|
892
|
|
|
|
1,000
|
|
|
|
915
|
|
|
|
(857
|
)
|
|
|
(108
|
)
|
|
|
(23
|
)
|
NICARAGUA
|
|
|
0
|
|
|
|
57
|
|
|
|
0
|
|
|
|
0
|
|
|
|
5
|
|
|
|
(57
|
)
|
|
|
0
|
|
|
|
(5
|
)
|
PANAMA
|
|
|
611
|
|
|
|
824
|
|
|
|
165
|
|
|
|
91
|
|
|
|
160
|
|
|
|
(213
|
)
|
|
|
74
|
|
|
|
5
|
|
PARAGUAY
|
|
|
173
|
|
|
|
195
|
|
|
|
72
|
|
|
|
10
|
|
|
|
70
|
|
|
|
(22
|
)
|
|
|
62
|
|
|
|
2
|
|
PERU
|
|
|
287
|
|
|
|
1,073
|
|
|
|
97
|
|
|
|
80
|
|
|
|
87
|
|
|
|
(786
|
)
|
|
|
17
|
|
|
|
10
|
|
TRINIDAD
& TOBAGO
|
|
|
126
|
|
|
|
231
|
|
|
|
0
|
|
|
|
0
|
|
|
|
86
|
|
|
|
(105
|
)
|
|
|
0
|
|
|
|
(86
|
)
|
URUGUAY
|
|
|
25
|
|
|
|
22
|
|
|
|
1
|
|
|
|
0
|
|
|
|
12
|
|
|
|
3
|
|
|
|
1
|
|
|
|
(11
|
)
|
OTHER
NON-LATAM (1)
|
|
|
439
|
|
|
|
589
|
|
|
|
286
|
|
|
|
82
|
|
|
|
68
|
|
|
|
(150
|
)
|
|
|
204
|
|
|
|
218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LOAN DISBURSED (2)
|
|
$
|
12,156
|
|
|
$
|
14,303
|
|
|
$
|
3,412
|
|
|
$
|
3,054
|
|
|
$
|
3,148
|
|
|
$
|
(2,147
|
)
|
|
$
|
358
|
|
|
$
|
264
|
|
|
(1)
|
Origination
in highly rated 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.
|