Bladex Reports Second Quarter 2004 Net Income of US$24.3 Million
August 17 2004 - 10:28AM
PR Newswire (US)
Bladex Reports Second Quarter 2004 Net Income of US$24.3 Million
PANAMA CITY, Aug. 17 /PRNewswire-FirstCall/ -- 2Q04 Financial
Highlights -- Net Income in the 2Q04 was US$24.3 million, compared
to US$29.8 million in the 1Q04, and US$67.1 million in the 2Q03. --
Credit portfolio in Argentina at June 30, 2004, was US$360 million,
down US$224 million, or 38%, from a year ago, and down US$39
million, or 10%, from 1Q04. -- Credit disbursements grew 41% during
the quarter. Following repayments on the Argentine credit portfolio
and reductions of the non-trade exposure, the total credit
portfolio grew by US$58 million, or 2%. -- The trade portfolio grew
by US$114 million, or 7%. Banco Latinoamericano de Exportaciones,
S.A. (NYSE:BLX) ("Bladex" or the "Bank"), announced today its
results for the second quarter ended June 30, 2004. (The Bank's
financial statements are prepared in accordance with U.S. GAAP, and
all figures are stated in U.S. dollars.) For the quarter, the Bank
reported net income of US$24.3 million, or US$0.62 per share,
compared to net income of US$29.8 million, or US$0.76 per share, in
the previous quarter, and net income of US$67.1 million, or US$3.65
per share, in the second quarter of 2003. Net income for the second
quarter reflected Argentine provision reversals of US$18.3 million,
compared to Argentine provision reversals of US$18.9 million for
the first quarter due to payments and prepayments on the Argentine
restructured loans. First half 2004 net income amounted to US$54.1
million, or US$1.37 per share, compared to US$77.5 million, or
US$4.32 per share, for the same period in 2003. The results for the
first half of 2004 reflected Argentine provision reversals of
US$37.2 million, compared to provision reversals and gain on the
sale of securities for US$57.5 million in the first half of 2003.
The 2003 results reflected the sale of US$169.5 million of
Argentine assets. No such sales have taken place during 2004. Key
Figures 6M03 6M04 2Q03 1Q04 2Q04 Net Income (In US$ million) $77.5
$54.1 $67.1 $29.8 $24.3 EPS (*) $4.32 $1.37 $3.65 $0.76 $0.62
Return on Avg. Equity 43.2% 18.0% 70.3% 20.2% 15.8% Tier 1 Capital
Ratio 32.2% 41.1% 32.2% 37.9% 41.1% Net Interest Margin 1.76% 1.70%
1.78% 1.69% 1.72% (*) Earnings per share calculations are based on
the average number of shares outstanding during each period. During
the first quarter of 2004 the average number of common shares
outstanding was 39.4 million, an amount unchanged from the first
quarter of 2004, and compared to 18.3 million during the second
quarter of 2003. Comments from the Chief Executive Officer: Jaime
Rivera, Chief Executive Officer of Bladex, stated, "The second
quarter saw continued progress with respect to our client, product,
and portfolio strategies. "We are working in an environment that
plays to Bladex's strengths. Although overall economic growth
levels are not as robust as we had envisioned, trade flows are
benefiting from strong commodity prices and from policies geared
towards promoting foreign trade as one of the cornerstones of
economic growth. With the completion of the CAFTA negotiations, and
with the ongoing talks among the United States, the European
Community and several countries in the Region, we are now more
confident than ever about our strategic premise calling for
increased business opportunities for Bladex. "The second quarter
highlights for Bladex were the following: "First, the obligors
under our rescheduled credit portfolio in Argentina met all of
their US$18.7 million in principal payments due. In addition, the
Bank received US$19.6 million in prepayments, a reflection of the
improving liquidity and, in some cases, improved balance sheet
strength of some of our clients in the country. "Second, the Bank's
new client coverage model is yielding results. Disbursements in the
second quarter totaled US$1.2 billion, 41%, or US$343 million,
above the levels of the first quarter. We were thus able to grow
the credit portfolio by 2%, in spite of significant reductions in
our stock of non-trade portfolio. "Third, we are encouraged by the
continued increase in deposit balances, which have risen 64% to
US$841 million in the last year. "Fourth, Bladex took action on the
capital management front. The increased common dividend, the
special dividend, and the stock repurchase program announced on
August 5, 2004, comprise a balanced package designed with the
long-term interests of the Bank and its shareholders in mind. "The
second quarter showed the initial results of our new product
deployment strategy, as we booked US$43.4 million of new country
risk guarantee transactions. Continued work along the new product
front holds the key to operating earnings growth. With all other
issues addressed, operating earnings growth has now become the
principal priority of the Bank." Mr. Rivera concluded. About Bladex
Bladex is a multinational bank, originally established by the
Central Banks of Latin American and Caribbean countries to promote
trade finance in the Region. Based in Panama, its shareholders
include central banks and state-owned entities in 23 countries in
the Region, Latin American and international commercial banks, and
institutional and retail investors. Through June 30, 2004, over its
25 years of operations, Bladex had disbursed accumulated credits of
over US$126 billion in Latin America. This press release contains
forward-looking statements of expected future developments. The
Bank wishes to ensure that such statements are accompanied by
meaningful cautionary statements pursuant to the safe harbor
established by the Private Securities Litigation Reform Act of
1995. The forward-looking statements in this press release refer to
the environment in which Bladex is working playing to Bladex's
strengths, the ability of Bladex to do business under specific
market conditions, the improving liquidity of Bladex's clients in
Argentina and the ability of Bladex to withstand volatility in its
markets. These forward-looking statements reflect the expectations
of the Bank's management and are based on currently available data;
however, actual experience with respect to these factors is subject
to future events and uncertainties, which could materially impact
the Bank's expectations. Among the factors that can cause actual
performance and results to differ materially are as follows: a
decline in the willingness of international lenders and depositors
to provide funding to the Bank, causing a contraction of the Bank's
credit portfolio, adverse economic or political developments in the
Region, particularly in Argentina or Brazil, which could increase
the level of impaired loans in the Bank's loan portfolio and, if
sufficiently severe, result in the Bank's allowance for probable
credit losses being insufficient to cover losses in the portfolio,
unanticipated developments with respect to international banking
transactions (including among other things, interest rate spreads
and competitive conditions), a change in the Bank's credit ratings,
events in Argentina and Brazil or other countries in the Region
unfolding in a manner that is detrimental to the Bank, or which
might result in adequate liquidity being unavailable to the Bank,
or the Bank's operations being less profitable than anticipated.
Bladex is listed on the New York Stock Exchange. Further investor
information can be found at http://www.blx.com/ . A LONGER VERSION
OF THIS PRESS RELEASE WITH DETAILED INFORMATION HAS BEEN FILED WITH
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, AND CAN BE
OBTAINED FROM BLADEX AT: Bladex, Head Office, Calle 50 y Aquilino
de la Guardia, Panama City, Panama Attention: Carlos Yap, Senior
Vice President, Finance Tel. No. (507) 210-8581, e-mail: , -or-
Investor relations firm i-advize Corporate Communications, Inc.
Melanie Carpenter / Peter Majeski Tel: (212) 406-3690, e-mail:
There will be a conference call to discuss the quarterly results on
August 18, 2004, at 11:00 a.m. New York City time. For those
interested in participating, please call (888) 208-1814 in the
United States or, if outside the United States, please dial (719)
457-2655. All participants should give the conference ID#816466 to
the telephone operator five minutes before the call is set to
begin. There will also be a live audio webcast of the event at
http://www.blx.com/ . Bladex's conference call will become
available for review on Conference Replay one hour after the
conclusion of the conference, and will remain available through
August 19, 2004. Please dial (888) 203-1112, or (719) 457-0820 and
follow the instructions. The Conference ID# for the call that will
be replayed is 816466. http://www.blx.com/DATASOURCE: Banco
Latinoamericano de Exportaciones, S.A. CONTACT: Carlos Yap, Senior
Vice President, CFO, Bladex, +1-507-210-8581, or ; or Melanie
Carpenter or Peter Majeski, both of i-advize Corporate
Communications, Inc., +1-212-406-3690, or , for Bladex Web site:
http://www.blx.com/
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