Edgar Filing: LATIN AMERICAN EXPORT BANK

Unassociated Document

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 Or 15d-16 Of The

Securities Exchange Act of 1934

Long form of Press Release

BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.

(Exact name of Registrant as specified in its Charter)

LATIN AMERICAN EXPORT BANK

(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia

P.O. Box 0819-08730

El Dorado, Panama City

Republic of Panama

(Address of Registrant’s Principal Executive Offices)

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

Form 20-F x Form 40-F ¨

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)

Yes ¨ No x

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82__.)

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, thereto duly authorized.

July 28, 2008

Banco Latinoamericano de Exportaciones, S.A.

	By:	/s/ Pedro Toll

	Name: Pedro Toll
	Title: Deputy Manager

BLADEX REPORTS SECOND QUARTER NET INCOME OF $26.3 MILLION

COMPARED WITH $19.2 MILLION FOR THE PRIOR QUARTER.

ROE WAS 16.7%, COMPARED TO 12.6% IN THE FIRST QUARTER.

Panama City, Republic of Panama, July 28, 2008 – Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”) announced today its results for the second quarter ended June 30, 2008.

Second Quarter Business Highlights

Net income of $26.3 million, an increase of 37% compared to the first quarter 2008, and 3% lower than the second quarter 2007, principally due to lower trading gains.

Net operating revenue⁽¹⁾ of $36.4 million, an increase of 28% from the first quarter 2008, and unchanged from the second quarter 2007, reflecting strong growth in the Bank’s intermediation business.

Return on average equity (“ROE”) of 16.7%, compared to 12.6% in the first quarter 2008, and 18.0% in the second quarter 2007.

Commercial Division’s net operating income⁽²⁾ was $12.9 million, versus $14.7 million in the previous quarter. Net interest income on lending spreads⁽³⁾ increased 27% as a result of higher lending spreads⁽⁴⁾ (27 bps, or 22%), and a 4% growth on the average commercial portfolio.

Treasury Division’s net operating income was $3.0 million, an increase of $2.0 million compared to the first quarter 2008, and a decrease of $1.1 million from the second quarter 2007 due to lower gains on the sale of securities.

Asset Management Division’s net operating income was $10.1 million, an increase of $6.5 million from the first quarter 2008, and a decrease of $1.9 million from the second quarter 2007, driven by trading gains.

As of June 30, 2008, the Bank had zero credit in non-accrual or past due status.

As of June 30, 2008, liquidity⁽⁵⁾ stood at $372 million, representing 7% of total assets. During the quarter, deposits increased $379 million (28%) to $1,736 million.

The Bank’s efficiency ratio⁽⁶⁾ was 29%, compared to 32% in the first quarter 2008, and 28% in the second quarter 2007. Tier 1 capital ratio stood at 19%.

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the quarter’s results: “We are very pleased with the results for the quarter which were solid across all business lines. This performance demonstrates once more Bladex’s ability to take advantage of a Latin American market that continues to grow, and a business franchise that continues to strengthen.

In broad terms, while we are mindful of both the stress placed on large segments of the financial industry and the implications for the economy as a whole, the current scenario has resulted in opportunities for the Region, which Bladex is uniquely well positioned to realize.

Consistent with this favorable scenario, the Bank’s intermediation business continues to grow, with lending margins widening at an accelerating rate and fee revenue building momentum. Bladex’s Asset Management Division posted another quarter of solid results, and concerns regarding credit quality within Bladex’s portfolio remain a non-issue. On the liability side, the Bank’s deposit base increased at the faster pace that we have seen in years, and our liquidity position remains strong.

As satisfied as Bladex is with the current results, we place great importance on the permanent nature of our improving market share, which we believe will continue to benefit the Bank through the next phase of the credit cycle.”

RESULTS BY BUSINESS SEGMENT

The Commercial Division incorporates the Bank’s financial intermediation and fee generation activities. Net operating income includes net interest income from loans, fee income, and net allocated operating expenses.

(US$ million)	2Q07			1Q08			2Q08
Commercial Division:
Net interest income on lending spreads⁽³⁾	$	7.3		$	10.6		$	13.5
Net interest income on allocated capital⁽⁷⁾		8.1			8.8			5.4
Net Interest Income	$	15.4		$	19.4		$	18.9
Non-interest operating income⁽⁸⁾		1.4			1.8			1.9
Net operating revenues	$	16.8		$	21.2		$	20.8
Operating expenses		(6.7	)		(6.5	)		(7.9	)
Net Operating Income	$	10.1		$	14.7		$	12.9

Net operating income for the second quarter 2008 reached $12.9 million, representing an increase of 28%, compared to second quarter 2007, and a decrease of 12% from the first quarter 2008. With respect to the previous quarter, weighted average lending spreads increased 27 bps (22%), while the average commercial portfolio growth was 4%. Combining these factors resulted in a $2.9 million, or 27% growth in net interest income on lending spreads. These increases were offset by $3.4 million in lower yields on allocated capital due to lower market interest rates.

Weighted average lending spreads on new disbursements were 1.93%, a 41 bps, or 27%, increase with respect to the previous quarter.

The following graph illustrates lending spreads’ quarterly trend:

The average commercial portfolio grew 4% during the quarter and 15% during the last year. End of period growth during the quarter was 8%.

The commercial portfolio includes letters of credit, country risk guarantees and loan commitments pertaining to the Bank’s traditional intermediation activities.

See Exhibit X for information related to the Bank’s commercial portfolio distribution by country.

During the second quarter 2008, the Bank disbursed credits amounting to $2 billion, unchanged when compared to the previous quarter. Please refer to Exhibit XII for the Bank’s distribution of credit disbursements by country.

As of June 30, 2008, the corporate market segment represented 55% of the Bank’s total commercial portfolio, compared to 53% as of March 31, 2008, and 49% a year ago.

The commercial portfolio as a whole continues to be short-term and trade-related in nature, with 70% of credits maturing within one year, and 66% representing trade financing operations.

As of June 30, 2008, the Bank had zero credits in non-accruing or past-due status.

The Treasury Division incorporates the Bank’s investment securities activities. Net operating income is presented net of allocated operating expenses, and includes net interest income on investment securities, and net gains on sale of securities available for sale.

(US$ million)	2Q07			1Q08			2Q08
Treasury Division:
Net interest income	$	1.1		$	2.2		$	2.1
Non-interest operating income⁽⁸⁾		3.9			0.2			2.7
Net operating revenues	$	5.1		$	2.3		$	4.7
Operating expenses		(1.0	)		(1.4	)		(1.8	)
Net Operating Income	$	4.1		$	1.0		$	3.0

Net operating income totaled $3.0 million, representing an increase of $2.0 million from the first quarter 2008, and a decrease of $1.1 million from the second quarter 2007. These variations mostly reflected different levels of gains on sales of securities in the referenced quarters.

The quarter-end securities available for sale portfolio totaled $737 million, representing an increase of 6% from March 31, 2008. As of June 30, 2008, the securities portfolio represented 14% of the Bank’s total credit portfolio, and consisted of Latin American securities (please refer to Exhibit XI for a per country distribution of the investment securities in the available for sale portfolio).

In its available for sale portfolio, and in order to hedge the instruments’ interest rate risk, the Bank enters into interest rate swap agreements to convert them from fixed interest to floating rate instruments. The available for sale portfolio is marked-to-market, and the impact thereof is recorded in capital through the other comprehensive income account (please refer to Exhibit I).

As of June 30, 2008, deposit balances totaled $1,736 million, a $379 million (28%) increase compared to the previous quarter, and $356 million (26%) higher than the second quarter 2007, mostly reflecting $240 million in new deposits from central banks.

The Asset Management Division incorporates the Bank’s asset management activities. Net operating income is presented net of allocated operating expenses, and includes net interest income on trading assets and investment in mutual funds, as well as trading gains and other related income (loss).

(US$ million)	2Q07			1Q08			2Q08
Asset Management Division:
Net interest income	$	0.2		$	(0.4	)	$	(0.8	)
Non-interest operating income⁽⁸⁾		14.3			5.4			11.7
Net operating revenues	$	14.5		$	4.9		$	10.8
Operating expenses		(2.5	)		(1.3	)		(0.8	)
Net Operating Income	$	12.0		$	3.6		$	10.1

Net operating income in the second quarter 2008 totaled $10.1 million, representing an increase of 182% compared to the previous quarter, and a 16% decrease from the second quarter 2007, driven by trading gains.

In April 2008, Bladex Offshore Feeder Fund (the "Fund") registered with the Cayman Islands Monetary Authority under the Cayman Islands Mutual Funds Law. On May 1, 2008, the Fund began receiving third party investments. In May 2008, Bladex also began accounting for the Fund and its related companies in accordance with the specialized accounting guidance in the AICPA Audit and Accounting Guide, Audits of Investment Companies.

As of June 30, 2008, investment in mutual funds totaled $144 million compared to the Fund’s net asset value of $133 million and $122 million, as of March 31, 2008 and June 30, 2007, respectively.

CONSOLIDATED RESULTS OF OPERATIONS

KEY FINANCIAL FIGURES AND RATIOS

(US$ million, except percentages and per share amounts)	2Q07			1Q08			2Q08
Net Interest Income	$	16.7		$	21.1		$	20.1
Net Operating Income by Business Segment:
Commercial Division	$	10.1		$	14.7		$	12.9
Treasury Division	$	4.1		$	1.0		$	3.0
Asset Management Division	$	12.0		$	3.6		$	10.1
Net Operating Income	$	26.1		$	19.2		$	25.9
Net Income	$	27.0		$	19.2		$	26.3

Net Income per Share⁽⁹⁾	$	0.74		$	0.53		$	0.72
Book Value per common share (period end)	$	16.68		$	16.73		$	17.74
Return on Average Equity (“ROE”)		18.0	%		12.6	%		16.7	%
Operating Return on Average Equity ("Operating ROE")		17.4	%		12.6	%		16.5	%
Return on Average Assets (“ROA”)		2.7	%		1.6	%		2.0	%
Net Interest Margin		1.70	%		1.77	%		1.56	%

Tier 1 Capital⁽¹⁰⁾	$	606		$	608		$	645
Total Capital⁽¹¹⁾	$	642		$	647		$	688
Risk-Weighted Assets	$	2,862		$	3,112		$	3,392
Tier 1 Capital Ratio⁽¹⁰⁾		21.2	%		19.6	%		19.0	%
Total Capital Ratio ⁽¹¹⁾		22.4	%		20.8	%		20.3	%
Stockholders’ Equity to Total Assets		14.4	%		12.0	%		11.9	%

Liquid Assets / Total Assets⁽⁵⁾		7.6	%		9.7	%		6.9	%
Liquid Assets / Total Deposits		23.2	%		36.3	%		21.5	%

Non-Accruing Loans to Total Loans, net		0.0	%		0.0	%		0.0	%
Allowance for Loan Losses to Total Loan Portfolio		2.0	%		1.9	%		1.7	%
Allowance for Losses on Off-Balance Sheet Credit Risk to Total Contingencies		2.6	%		3.5	%		4.0	%

Total Assets	$	4,205		$	5,090		$	5,407

The following graphs illustrate Net Operating Income and the Return on Average Stockholders’ Equity trends from 2005 through 2008:

NET INTEREST INCOME AND MARGINS

(In US$ million, except percentages)	2Q07			1Q08			2Q08
Net Interest Income
Commercial Division	$	15.4		$	19.4		$	18.9
Treasury Division		1.1			2.2			2.1
Asset Management Division		0.2			(0.4	)		(0.8	)
Consolidated	$	16.7		$	21.1		$	20.1

Net Interest Margin^*		1.70	%		1.77	%		1.56	%

* Net interest income divided by average balance of interest-earning assets.

Net interest income during the second quarter 2008 reached $20.1 million, a decrease of 5% compared to the previous quarter driven by lower yield on the Bank’s available capital as market interest rates decreased. This factor was partially offset by a larger average loan portfolio and wider lending spreads.

The $3.4 million, or 20%, increase in net interest income compared to the second quarter of 2007 mostly reflects an increased average loan portfolio, and higher lending spreads, partly offset by a lower yield on the Bank’s available capital.

FEES AND COMMISSIONS

(US$ million)	2Q07		1Q08		2Q08
Letters of credit	$	0.7	$	1.0	$	1.2
Guarantees		0.2		0.4		0.3
Loans		0.2		0.2		0.2
Other*		0.4		0.2		0.6
Fees and Commissions, net	$	1.5	$	1.8	$	2.4

* Net of commission expenses

Fees and commissions in the second quarter 2008 increased 35%, or $0.6 million, compared to the previous quarter, and 59%, or $0.9 million, from a year ago mostly due to the increased commission income from letters of credit, and management fee related to the Asset Management Division.

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

(In US$ million)	30-Jun-07			30-Sep-07			31-Dec-07			31-Mar-08		30-Jun-08
Allowance for Loan Losses:
Balance at beginning of the period	$	56.6		$	69.0		$	72.6		$	69.6	$	69.9
Provisions (reversals)		6.2			3.4			(3.0	)		0.0		(3.2	)
Recoveries		6.2			0.3			0.0			0.2		3.1
End of period balance	$	69.0		$	72.6		$	69.6		$	69.9	$	69.8

Reserve for Losses on Off-balance Sheet Credit Risk:
Balance at beginning of the period	$	21.0		$	13.5		$	10.5		$	13.7	$	13.7
Provisions (reversals)		(7.6	)		(3.0	)		3.2			0.0		2.5
End of period balance	$	13.5		$	10.5		$	13.7		$	13.7	$	16.2

Total Allowance for Credit Losses	$	82.5		$	83.1		$	83.4		$	83.6	$	86.0

The allowance for credit losses amounted $86.0 million, an increase of 3% from March 31, 2008. The ratio of the allowance for credit losses to the commercial portfolio was 1.9%, compared to 2.0% as of March 31, 2008 and 2.1% as of June 30, 2007.

OPERATING EXPENSES AND EFFICIENCY LEVEL

(US$ million)	2Q07		1Q08		2Q08
Salaries and other employee expenses	$	6.2	$	5.5	$	5.0
Depreciation, amortization and impairment		0.6		0.7		1.6
Professional services		1.2		0.7		1.2
Maintenance and repairs		0.3		0.3		0.4
Other operating expenses		1.9		2.0		2.2
Total Operating Expenses	$	10.3	$	9.2	$	10.5

The Bank’s efficiency ratio was 29% in the second quarter 2008, compared to 32% in the first quarter 2008 and 28% in the second quarter 2007.

Total operating expenses for the second quarter 2008 were $10.5 million, an increase of $1.2 million compared to the previous quarter, mainly due to a write-off related to an information technology application reported in depreciation, amortization and impairment expenses.

OTHER EVENTS

§	Common Dividend Payment: On July 15, 2008, the Bank’s Board of Directors declared regular quarterly dividend of US$0.22 per share corresponding to the second quarter 2008 to stockholders of record as of July 21, 2008, payable on July 31, 2008.

Asset Management Division: On July 10, 2008, Bladex announced the incorporation of Mr. Tulio P. Vera to Bladex Asset Management (BAM). Mr. Vera joins the Division as Chief Strategist and Head of Client Relations, and will be responsible for identifying and analyzing opportunities in the Latin American investment space. Prior to Bladex, Mr. Vera worked with Merrill Lynch as a Managing Director, Chief Global Emerging Market Macro and Debt Strategist.

Ratings Assigned: On July 7, 2008, Fitch Ratings assigned the following ratings to Bladex: Foreign Currency Long-Term Issuer Default Rating (IDR) – ‘BBB’, Foreign Currency Short-Term IDR – ‘F-2, Individual Rating – ‘C’, Support Rating – ‘5’, Support Floor – ‘NF’. The outlook is stable.

§	Ratings Upgrade: On May 13, 2008, Standard & Poor’s Rating Services upgraded Bladex’s long-term issuer credit rating to ‘BBB’ from ‘BBB-‘ and its short-term issuer credit rating to ‘A-2’ from ‘A-3’. The outlook is stable.

Note: Various numbers and percentages set forth in this press release have been rounded and, accordingly, may not total exactly.

Footnotes:

(1) Net Operating Revenue refers to net interest income plus non-interest operating income.

(2) Net Operating Income refers to net interest income plus non-interest operating income, minus operating expenses.

(3) Net interest income on lending spreads refers to interest income on weighted average net lending spreads of average loan portfolio, plus loan commissions.

(4) Lending spreads refer to loan portfolio weighted average lending spread over weighted average Libor-based cost rate, excluding loan commission.

(5) Liquidity ratio refers to liquid assets as a percentage of total assets. Liquid assets consist of investment-grade ‘A’ securities, and cash and due from banks, excluding cash balances in the Asset Management Division.

(6) Efficiency ratio refers to consolidated operating expenses as a percentage of net operating revenues. Excluding the Asset Management Division’s net revenues and expenses, the efficiency ratio is 38%, 34% and 35% for second quarter 2008, first quarter 2008 and second quarter 2007, respectively.

(7) Net interest income on allocated capital is calculated based on capital assigned to support the loan portfolio.

(8) Non-interest operating income refers to net other income (expense) excluding reversals (provisions) for credit losses and recoveries (impairment) on assets. By business segment, non-interest operating income includes:

Commercial Division: fees and commissions net and related other income (expense), net.

Treasury Division: net gains on sale of securities available for sale, activities of hedging derivative instruments and gain (loss) on foreign currency expense.

Asset Management Division: trading gains and related other income (expense), net.

(9) Net Income per Share calculations are based on the average number of shares outstanding during each period.

(10) Tier 1 Capital refers to total stockholders’ equity.

Tier 1 Capital ratio refers to Tier 1 Capital as a percentage of risk weighted assets.

Risk-weighted assets are calculated based on US Federal Reserve Board and Basel I capital adequacy guidelines.

(11) Total Capital refers to total stockholders’ equity plus Tier 2 Capital based on US Federal Reserve Board and Basel I capital adequacy guidelines.

Total Capital ratio refers to Total Capital as a percentage of risk weighted assets.

(12) Operating ROE: Annualized net operating income divided by average stockholders’ equity.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements of expected future developments. The Bank wishes to ensure that such statements are accompanied by meaningful cautionary statements pursuant to the safe harbor established by the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this press release refer to the growth of the credit portfolio, including the trade portfolio, the increase in the number of the Bank’s corporate clients, the positive trend of lending spreads, the increase in activities engaged in by the Bank that are derived from the Bank’s client base, anticipated operating income and return on equity in future periods, including income derived from the Treasury Division and Asset Management Division, the improvement in the financial and performance strength of the Bank and the progress the Bank is making. These forward-looking statements reflect the expectations of the Bank’s management and are based on currently available data; however, actual experience with respect to these factors is subject to future events and uncertainties, which could materially impact the Bank’s expectations. Among the factors that can cause actual performance and results to differ materially are as follows: the anticipated growth of the Bank’s credit portfolio; the continuation of the Bank’s preferred creditor status; the impact of increasing/decreasing interest rates and of improving macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals.

About Bladex

Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through June 30, 2008, Bladex had disbursed accumulated credits of over $156 billion.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Tuesday, July 29, 2008, 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 web cast of the conference at www.bladex.com.

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through September 28, 2008. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The Conference ID# for the replayed call is 42697683.

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

Mr. Jaime Celorio

Chief Financial Officer

Bladex

Calle 50 y Aquilino de la Guardia

P.O. Box: 0819-08730

Panama City, Panama

Tel: (507) 210-8563

Fax: (507) 269-6333

E-mail address: jcelorio@bladex.com

Investor Relations Firm:

i-advize Corporate Communications, Inc.

Mrs. Melanie Carpenter / Mr. Peter Majeski

82 Wall Street, Suite 805

New York, NY 10005

Tel: (212) 406-3690

E-mail address: bladex@i-advize.com

EXHIBIT I

CONSOLIDATED BALANCE SHEETS

	AT THE END OF,
	(A)			(B)			(C)			(C) - (B)						(C) - (A)
	Jun. 30, 2007			Mar. 31, 2008			Jun. 30, 2008			CHANGE			%			CHANGE			%
	(In US$ million)

ASSETS:
Cash and due from banks	$	326		$	539		$	349		$	(190	)		(35	)%	$	23			7	%
Trading assets		143			29			0			(29	)		(100	)		(143	)		(100	)
Securities available for sale		168			695			737			41			6			568			338
Securities held to maturity		0			0			29			29			0			29			n.m.	(*)
Investment in mutual funds		0			0			144			144			0			144			n.m.	(*)
Loans		3,415			3,775			4,105			330			9			689			20
Less:
Allowance for loan losses		(69	)		(70	)		(70	)		0			(0	)		(1	)		1
Unearned income and deferred loan fees		(4	)		(7	)		(6	)		0			(6	)		(2	)		51
Loans, net		3,342			3,698			4,029			330			9			686			21

Customers' liabilities under acceptances		21			35			31			(3	)		(9	)		11			52
Premises and equipment, net		10			10			8			(2	)		(16	)		(1	)		(15	)
Accrued interest receivable		52			52			59			7			14			7			14
Other assets		144			32			21			(11	)		(35	)		(123	)		(85	)

TOTAL ASSETS	$	4,205		$	5,090		$	5,407		$	317			6	%	$	1,202			29	%

LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	109		$	94		$	104		$	9			10	%	$	(5	)		(5	)
Time		1,272			1,263			1,633			370			29			361			28
Total Deposits		1,381			1,357			1,736			379			28			356			26

Trading liabilities		178			23			0			(23	)		(100	)		(178	)		(100	)
Securities sold under repurchase agreements		113			529			458			(70	)		(13	)		345			306
Short-term borrowings		945			1,204			1,230			26			2			285			30
Long-term debt and borrowings		813			1,220			1,202			(18	)		(1	)		389			48
Acceptances outstanding		21			35			31			(3	)		(9	)		11			52
Accrued interest payable		36			36			43			7			20			7			20
Reserve for losses on off-balance sheet credit risk		13			14			16			3			18			3			21
Other liabilities		99			65			44			(20	)		(31	)		(55	)		(55	)
TOTAL LIABILITIES	$	3,599		$	4,482		$	4,762		$	281			6	%	$	1,164			32	%

STOCKHOLDERS' EQUITY:
Common stock, no par value, assigned value of US$6.67		280			280			280
Additional paid-in capital in exces of assigned value		135			135			136
Capital reserves		95			95			95
Retained earnings		231			257			274
Accumulated other comprehensive income (loss)		(1	)		(25	)		(6	)
Treasury stock		(134	)		(134	)		(134	)

TOTAL STOCKHOLDERS' EQUITY	$	606		$	608		$	645		$	37			6	%	$	39			6	%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,205		$	5,090		$	5,407		$	317			6	%	$	1,202			29	%

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

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE THREE MONTHS ENDED
	(A)			(B)			(C)			(C) - (B)						(C) - (A)
	Jun. 30, 2007			Mar. 31, 2008			Jun. 30, 2008			CHANGE			%			CHANGE			%
	(In US$ thousand, except per share data)
INCOME STATEMENT DATA:
Interest income	$	63,243		$	67,850		$	60,629		$	(7,221	)		(11	)%	$	(2,614	)		(4	)%
Interest expense		(46,497	)		(46,733	)		(40,513	)		6,220			(13	)		5,984			(13	)
NET INTEREST INCOME		16,745			21,118			20,116			(1,002	)		(5	)		3,370			20
Reversal (provision) for loan losses		(6,235	)		0			3,204			3,204			n.m.	(*)		9,439			(151	)

NET INTEREST INCOME AFTER REVERSAL
FOR LOAN LOSSES		10,510			21,118			23,319			2,202			10			12,809			122

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		7,581			0			(2,513	)		(2,513	)		n.m.	(*)		(10,094	)		(133	)
Fees and commissions, net		1,525			1,799			2,421			622			35			896			59
Activities of hedging derivatives instruments		1			(52	)		(27	)		25			(49	)		(28	)		(2,747	)
Recoveries (impairment), on assets		(500	)		0			(339	)		(339	)		n.m.	(*)		161			(32	)
Trading gains		14,278			5,350			216			(5,134	)		(96	)		(14,062	)		(98	)
Net gains on sale of securities available for sale		3,906			0			2,095			2,095			n.m.	(*)		(1,812	)		(46	)
Net gains on mutual funds		0			0			10,960			10,960			n.m.	(*)		10,960			n.m.	(*)
Gain (loss) on foreign currency exchange		(56	)		184			554			370			201			610			(1,084	)
Other income (expense), net		0			40			30			(11	)		(27	)		30			27,385
NET OTHER INCOME (EXPENSE)		26,734			7,321			13,396			6,075			83			(13,338	)		(50	)

OPERATING EXPENSES:
Salaries and other employee expenses		(6,234	)		(5,530	)		(4,970	)		560			(10	)		1,264			(20	)
Depreciation, amortization and impairment		(639	)		(682	)		(1,648	)		(966	)		142			(1,008	)		158
Professional services		(1,223	)		(737	)		(1,241	)		(504	)		68			(19	)		2
Maintenance and repairs		(279	)		(300	)		(365	)		(64	)		21			(86	)		31
Other operating expenses		(1,887	)		(1,988	)		(2,228	)		(240	)		12			(341	)		18
TOTAL OPERATING EXPENSES		(10,262	)		(9,237	)		(10,452	)		(1,215	)		13			(190	)		2

NET INCOME	$	26,983		$	19,202		$	26,264		$	7,062			37	%	$	(719	)		(3	)%

PER COMMON SHARE DATA:
Net income per share		0.74			0.53			0.72
Diluted earnings per share		0.73			0.53			0.72

Average basic shares		36,335			36,370			36,370
Average diluted shares		37,062			36,370			36,423

PERFORMANCE RATIOS:
Return on average assets		2.7	%		1.6	%		2.0	%
Return on average stockholders' equity		18.0	%		12.6	%		16.7	%
Net interest margin		1.70	%		1.77	%		1.56	%
Net interest spread		0.76	%		1.14	%		1.09	%
Operating expenses to total average assets		1.01	%		0.76	%		0.80	%

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

EXHIBIT III

SUMMARY OF CONSOLIDATED FINANCIAL DATA

(Consolidated Statements of Income, Balance Sheets, and Selected Financial Ratios)

	FOR THE SIX MONTHS ENDED JUNE 30,
	2007			2008
(In US$ thousand, except per share amounts & ratios)

INCOME STATEMENT DATA:
Net interest income	$	33,821		$	41,233
Fees and commissions, net		2,800			4,220
Reversal of provision for loan and off-balance sheet credit losses, net		2,150			690
Activities of hedging derivatives instruments		(483	)		(78	)
Recoveries (impairment), on assets		(500	)		(339	)
Trading gains		15,286			5,566
Net gains on sale of securities available for sale		6,605			2,095
Net gains on mutual funds		0			10,960
Gain (loss) on foreign currency exchange		(56	)		738
Other income (expense), net		41			70
Operating expenses		(17,847	)		(19,688	)
NET INCOME	$	41,817		$	45,466
BALANCE SHEET DATA (In US$ millions):
Investment securities and trading assets		311			766
Loans, net		3,342			4,029
Total assets		4,205			5,407
Deposits		1,381			1,736
Trading liabilities		178			0
Securities sold under repurchase agreements		113			458
Short-term borrowings		945			1,230
Long-term debt and borrowings		813			1,202
Total liabilities		3,599			4,762
Stockholders' equity		606			645
PER COMMON SHARE DATA:
Net income per share		1.15			1.25
Diluted earnings per share		1.13			1.25
Book value (period average)		16.39			17.10
Book value (period end)		16.68			17.74
(In US$ thousand):
Average basic shares		36,332			36,370
Average diluted shares		36,853			36,397
Basic shares period end		36,348			36,371
SELECTED FINANCIAL RATIOS:
PERFORMANCE RATIOS:
Return on average assets		2.1	%		1.8	%
Return on average stockholders' equity		14.2	%		14.7	%
Net interest margin		1.76	%		1.67	%
Net interest spread		0.82	%		1.12	%
Operating expenses to total average assets		0.91	%		0.78	%

ASSET QUALITY RATIOS:
Non-accruing loans to total loans, net of discounts ⁽¹⁾		0.0	%		0.0	%
Charge offs net of recoveries to total loan portfolio ⁽¹⁾		0.0	%		-0.1	%
Allowance for loan losses to total loan portfolio ⁽¹⁾		2.0	%		1.7	%
Allowance for losses on off-balance sheet credit risk to total contingencies		2.6	%		4.0	%

CAPITAL RATIOS:
Stockholders' equity to total assets		14.4	%		11.9	%
Tier 1 capital to risk-weighted assets		21.2	%		19.0	%
Total capital to risk-weighted assets		22.4	%		20.3	%

⁽¹⁾ Loan portfolio is presented net of unearned income and deferred loan fees.

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE SIX MONTHS ENDED JUNE 30,
	2007			2008			CHANGE			%
(In US$ thousand)
INCOME STATEMENT DATA:
Interest income	$	124,236		$	128,479		$	4,243			3	%
Interest expense		(90,414	)		(87,246	)		3,169			(4	)
NET INTEREST INCOME		33,821			41,233			7,412			22
Provision for loan losses		(11,589	)		3,204			14,793			(128	)


NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		22,232			44,437			22,205			100

OTHER INCOME (EXPENSE):
Reversal for losses on off-balance sheet credit risk		13,739			(2,513	)		(16,252	)		(118	)
Fees and commissions, net		2,800			4,220			1,420			51
Derivatives and hedging activities		(483	)		(78	)		405			(84	)
Recoveries (impairment), on assets		(500	)		(339	)		161			(32	)
Trading gains		15,286			5,566			(9,720	)		(64	)
Net gains on sale of securities available for sale		6,605			2,095			(4,511	)		(68	)
Net gains on mutual funds		0			10,960			10,960			n.m.	(*)
Gain (loss) on foreign currency exchange		(56	)		738			794			(1,422	)
Other income (expense), net		41			70			29			72
NET OTHER INCOME (EXPENSE		37,432			20,718			(16,714	)		(45	)

OPERATING EXPENSES:
Salaries and other employee expenses		(10,497	)		(10,499	)		(3	)		0
Depreciation, amortization and impairment		(1,267	)		(2,329	)		(1,063	)		84
Professional services		(1,963	)		(1,979	)		(16	)		1
Maintenance and repairs		(570	)		(665	)		(96	)		17
Other operating expenses		(3,551	)		(4,216	)		(664	)		19
TOTAL OPERATING EXPENSES		(17,847	)		(19,688	)		(1,841	)		10

NET INCOME	$	41,817		$	45,466		$	3,650			9	%

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

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE THREE MONTHS ENDED,
	June 30, 2007								March 31, 2008								June 30, 2008
	AVERAGE					AVG.			AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ million)

INTEREST EARNING ASSETS
Interest-bearing deposits with banks	$	290		$	4.0		5.50	%	$	443		$	3.8		3.36	%	$	382		$	2.1		2.20	%
Loans, net of unearned income & deferred loan fees		3,321			54.1		6.44			3,701			55.4		5.92			3,966			49.7		4.96
Trading assets		110			1.6		5.80			29			0.1		1.61			42			0.0		0.08
Investment securities		241			3.6		5.84			615			8.6		5.53			783			8.8		4.45

TOTAL INTEREST EARNING ASSETS	$	3,961		$	63.2		6.32	%	$	4,787		$	67.9		5.61	%	$	5,172		$	60.6		4.64	%

Investment in mutual funds		0								0								42
Non interest earning assets		75								108								80
Allowance for loan losses		(56	)							(70	)							(70	)
Other assets		76								85								41

TOTAL ASSETS	$	4,055							$	4,911							$	5,265

INTEREST BEARING LIABILITITES
Deposits.	$	1,341		$	18.1		5.33	%	$	1,435		$	13.7		3.79	%	$	1,601		$	11.7		2.88	%
Trading liabilities		88			1.4		6.24			45			0.7		6.20			12			0.1		2.62
Securities sold under repurchase agreement and short-term borrowings		1,123			15.6		5.49			1,655			18.8		4.49			1,697			16.0		3.73
Long-term debt and borrowings		760			11.5		5.98			1,006			13.5		5.32			1,209			12.8		4.18

TOTAL INTEREST BEARING LIABILITIES	$	3,311		$	46.5		5.56	%	$	4,141		$	46.7		4.46	%	$	4,519		$	40.5		3.55	%

Non interest bearing liabilities and other liabilities	$	142							$	157							$	115

TOTAL LIABILITIES		3,453								4,298								4,635

STOCKHOLDERS' EQUITY		603								613								631

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,055							$	4,911							$	5,265

NET INTEREST SPREAD							0.76	%							1.14	%							1.09	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	16.7		1.70	%				$	21.1		1.77	%				$	20.1		1.56	%

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

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE SIX MONTHS ENDED,
	June 30, 2007								June 30, 2008
	AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ million)

INTEREST EARNING ASSETS
Interest-bearing deposits with banks	$	260		$	7.1		5.41	%	$	412		$	5.9		2.82	%
Loans, net of unearned income & deferred loan fees		3,194			104.1		6.48			3,833			105.1		5.42
Trading assets		116			4.1		7.06			35			0.1		0.70
Investment securities		310			8.9		5.75			699			17.4		4.93

TOTAL INTEREST EARNING ASSETS	$	3,880		$	124.2		6.37	%	$	4,980		$	128.5		5.10	%

Investment in mutual funds		0								21
Non interest earning assets		86								94
Allowance for loan losses		(54	)							(70	)
Other assets		60								63

TOTAL ASSETS	$	3,973							$	5,088

INTEREST BEARING LIABILITITES

Deposits	$	1,250		$	33.4		5.32	%	$	1,518		$	25.4		3.31	%
Trading liabilities		73			2.3		6.38			28			0.8		5.45
Securities sold under repurchase agreement and short-term borrowings		1,243			34.3		5.48			1,676			34.8		4.10
Long-term debt and borrowings		675			20.4		6.01			1,107			26.3		4.70

TOTAL INTEREST BEARING LIABILITIES	$	3,241		$	90.4		5.55	%	$	4,330		$	87.2		3.99	%

Non interest bearing liabilities and other liabilities	$	136							$	136

TOTAL LIABILITIES		3,377								4,466

STOCKHOLDERS' EQUITY		596								622

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3,973							$	5,088

NET INTEREST SPREAD							0.82	%							1.12	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	33.8		1.76	%				$	41.2		1.67	%

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

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME

(In US$ thousand, except ratios)

	SIX MONTHS																		SIX MONTHS
	ENDED			FOR THE THREE MONTHS ENDED															ENDED
	JUN 30/07			JUN 30/07			SEP 30/07			DEC 31/07			MAR 31/08			JUN 30/08			JUN 30/08

INCOME STATEMENT DATA:
Interest income	$	124,236		$	63,243		$	68,641		$	71,992		$	67,850		$	60,629		$	128,479
Interest expense		(90,414	)		(46,497	)		(51,020	)		(52,864	)		(46,733	)		(40,513	)		(87,246	)
NET INTEREST INCOME		33,821			16,745			17,622			19,127			21,118			20,116			41,233
Reversal (provision) for loan losses		(11,589	)		(6,235	)		(3,384	)		2,980			0			3,204			3,204

NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES		22,232			10,510			14,237			22,107			21,118			23,319			44,437

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		13,739			7,581			2,964			(3,235	)		0			(2,513	)		(2,513	)
Fees and commissions, net		2,800			1,525			1,173			1,582			1,799			2,421			4,220
Derivatives and hedging activities		(483	)		1			(294	)		(212	)		(52	)		(27	)		(78	)
Recoveries (impairment) on assets		(500	)		(500	)		0			0			0			(339	)		(339	)
Trading gains		15,286			14,278			5,104			3,475			5,350			216			5,566
Net gains on sale of securities available for sale		6,605			3,906			288			2,226			0			2,095			2,095
Net gains on mutual funds		0			0			0			0			0			10,960			10,960
Gain (loss) on foreign currency exchange		(56	)		(56	)		(9	)		181			184			554			738
Other income (expense), net		41			0			17			(64	)		40			30			70
NET OTHER INCOME (EXPENSE)		37,432			26,734			9,242			3,954			7,321			13,396			20,718

TOTAL OPERATING EXPENSES		(17,847	)		(10,262	)		(8,652	)		(10,527	)		(9,237	)		(10,452	)		(19,688	)
NET INCOME	$	41,817		$	26,983		$	14,827		$	15,534		$	19,202		$	26,264		$	45,466

SELECTED FINANCIAL DATA
PER COMMON SHARE DATA
Net income per share	$	1.15		$	0.74		$	0.41		$	0.43		$	0.53		$	0.72		$	1.25
PERFORMANCE RATIOS
Return on average assets		2.1	%		2.7	%		1.4	%		1.3	%		1.6	%		2.0	%		1.8	%
Return on average stockholders' equity		14.2	%		18.0	%		9.6	%		9.9	%		12.6	%		16.7	%		14.7	%
Net interest margin		1.76	%		1.70	%		1.65	%		1.69	%		1.77	%		1.56	%		1.67	%
Net interest spread		0.82	%		0.76	%		0.73	%		0.84	%		1.14	%		1.09	%		1.12	%
Operating expenses to average assets		0.91	%		1.01	%		0.80	%		0.91	%		0.76	%		0.80	%		0.78	%

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ million)

	FOR THE SIX MONTHS ENDED						FOR THE THREE MONTHS ENDED
	JUN 30/07			JUN 30/08			JUN 30/07			MAR 31/08			JUN 30/08

COMMERCIAL DIVISION:
Net interest income ⁽¹⁾	$	30.2		$	38.3		$	15.4		$	19.4		$	18.9
Non-interest operating income ⁽²⁾		2.7			3.7			1.4			1.8			1.9
Operating expenses ⁽³⁾		(12.9	)		(14.4	)		(6.7	)		(6.5	)		(7.9	)
Net operating income ⁽⁴⁾		20.1			27.5			10.1			14.7			12.9
Reversal (provision) for loan and off-balance sheet credit losses, net		2.2			0.7			1.3			0.0			0.7
Impairment on assets		(0.5	)		(0.3	)		(0.5	)		0.0			(0.3	)
NET INCOME	$	21.7		$	27.9		$	10.9		$	14.7		$	13.2

Average interest-earning assets⁽⁵⁾		3,194			3,833			3,321			3,701			3,966
End-of-period interest-earning assets⁽⁵⁾		3,411			4,098			3,411			3,768			4,098

TREASURY DIVISION:
Net interest income ⁽¹⁾	$	2.5		$	4.2		$	1.1		$	2.2		$	2.1
Non-interest operating income ⁽²⁾		6.2			2.8			3.9			0.2			2.7
Operating expenses ⁽³⁾		(1.9	)		(3.1	)		(1.0	)		(1.4	)		(1.8	)
Net operating income ⁽⁵⁾		6.7			3.9			4.1			1.0			3.0
NET INCOME	$	6.7		$	3.9		$	4.1		$	1.0		$	3.0
Average interest-earning assets⁽⁶⁾		516			1,044			450			967			1,121
End-of-period interest-earning assets⁽⁶⁾		399			1,115			399			1,183			1,115

ASSET MANAGEMENT DIVISION:
Net interest income ⁽¹⁾	$	1.1		$	(1.3	)	$	0.2		$	(0.4	)	$	(0.8	)
Non-interest operating income ⁽²⁾		15.3			17.0			14.3			5.4			11.7
Operating expenses ⁽³⁾		(3.0	)		(2.1	)		(2.5	)		(1.3	)		(0.8	)
Net operating income ⁽⁴⁾		13.4			13.6			12.0			3.6			10.1
NET INCOME	$	13.4		$	13.6		$	12.0		$	3.6		$	10.1
Average interest-earning assets⁽⁷⁾		169			102			190			119			85
Average investment in mutual funds		0			21			0			0			42
Total average interest-earning assets and investment in mutual funds		169			123			190			119			127

End-of-period interest-earning assets⁽⁷⁾		237			0			237			80			0
End-of-period investment in mutual funds		0			144			0			0			144
Total end-of period interest-earning assets and investment in mutual funds		237			144			237			80			144

CONSOLIDATED:
Net interest income ⁽¹⁾	$	33.8		$	41.2		$	16.7		$	21.1		$	20.1
Non-interest operating income ⁽²⁾		24.2			23.6			19.7			7.3			16.2
Operating expenses ⁽³⁾		(17.8	)		(19.7	)		(10.3	)		(9.2	)		(10.5	)
Net operating income ⁽⁴⁾		40.2			45.1			26.1			19.2			25.9
Reversal (provision) for loan and off-balance sheet credit losses, net		2.2			0.7			1.3			0.0			0.7
Recoveries (impairment), on assets		(0.5	)		(0.3	)		(0.5	)		0.0			(0.3	)
NET INCOME	$	41.8		$	45.5		$	27.0		$	19.2		$	26.3
Average interest-earning assets		3,880			4,980			3,961			4,787			5,172
End-of-period interest-earning assets		4,048			5,213			4,048			5,031			5,213

The bank has aligned its operations into three major business segments, based on the nature of clients, products and on credit risk standards.

Interest expenses are allocated based on average credits.

(1) Interest income on interest-earning assets, net of allocated cost of funds.

(2) Non-interest operating income consists of net other income (expense), excluding reversals of provisions for credit losses and impairment on assets

(3) Operating expenses are calculated based on average credits.

(4) Net operating income refers to net income excluding reversals of provisions for credit losses and impairment on assets.

(5) Includes loans, net of unearned income and deferred loan fees.

(6) Includes cash and due from banks, interest-bearing deposits with banks, securities available for sale and held to maturity.

(7) Includes cash and due from banks, interest-bearing deposits with banks, and trading securities of Asset Management Division.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A) 30JUN07						(B) 31MAR08						(C) 30JUN08						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(C) - (B)			(C) - (A)

ARGENTINA	$	247			6.0		$	310			6.4		$	273			5.2		$	(37	)	$	27
BOLIVIA		5			0.1			0			0.0			5			0.1			5			0
BRAZIL		1,467			35.7			1,714			35.2			1,801			34.3			87			334
CHILE		161			3.9			53			1.1			52			1.0			(1	)		(110	)
COLOMBIA		347			8.5			629			12.9			514			9.8			(116	)		166
COSTA RICA		63			1.5			96			2.0			256			4.9			160			193
DOMINICAN REPUBLIC		108			2.6			81			1.7			80			1.5			(1	)		(28	)
ECUADOR		136			3.3			151			3.1			174			3.3			23			37
EL SALVADOR		32			0.8			62			1.3			73			1.4			11			41
GUATEMALA		102			2.5			119			2.4			175			3.3			56			73
HONDURAS		50			1.2			56			1.1			56			1.1			1			6
JAMAICA		38			0.9			70			1.4			85			1.6			15			47
MEXICO		390			9.5			492			10.1			497			9.5			5			107
NICARAGUA		12			0.3			20			0.4			5			0.1			(14	)		(6	)
PANAMA		178			4.3			227			4.6			226			4.3			(1	)		48
PERU		465			11.3			646			13.3			680			12.9			34			215
TRINIDAD & TOBAGO		142			3.5			26			0.5			92			1.8			67			(49	)
URUGUAY		0			0.0			4			0.1			0			0.0			(4	)		0
VENEZUELA		159			3.9			94			1.9			141			2.7			47			(17	)
OTHER		5			0.1			25			0.5			67			1.3			43			62

TOTAL CREDIT PORTFOLIO ⁽¹⁾	$	4,106			100	%	$	4,874			100	%	$	5,252			100	%	$	378		$	1,145

UNEARNED INCOME AND COMMISSION ⁽²⁾		(4	)					(7	)					(6	)					0			(2	)

TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	4,102					$	4,867					$	5,245					$	378		$	1,143

⁽¹⁾	Includes book value of loans, fair value of selected investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks, credit default swaps and credit commitments).

⁽²⁾	Represents unearned income and commission on loans.

EXHIBIT X

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A) 30JUN07						(B) 31MAR08						(C) 30JUN08						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(C) - (B)			(C) - (A)

ARGENTINA	$	232			5.9		$	291			7.0		$	273			6.1		$	(17	)	$	41
BOLIVIA		5			0.1			0			0.0			5			0.1			5			0
BRAZIL		1,400			35.6			1,541			36.9			1,640			36.3			99			240
CHILE		119			3.0			10			0.2			9			0.2			(1	)		(110	)
COLOMBIA		344			8.7			394			9.4			336			7.4			(58	)		(8	)
COSTA RICA		63			1.6			96			2.3			237			5.3			141			174
DOMINICAN REPUBLIC		93			2.4			70			1.7			69			1.5			(1	)		(24	)
ECUADOR		136			3.5			151			3.6			174			3.8			23			37
EL SALVADOR		32			0.8			40			1.0			34			0.8			(6	)		2
GUATEMALA		102			2.6			113			2.7			134			3.0			20			32
HONDURAS		50			1.3			56			1.3			56			1.3			1			6
JAMAICA		38			1.0			70			1.7			85			1.9			15			47
MEXICO		379			9.6			416			10.0			420			9.3			4			40
NICARAGUA		12			0.3			20			0.5			5			0.1			(14	)		(6	)
PANAMA		158			4.0			149			3.6			149			3.3			1			(9	)
PERU		465			11.8			616			14.8			651			14.4			34			186
TRINIDAD & TOBAGO		142			3.6			26			0.6			92			2.0			67			(49	)
URUGUAY		0			0.0			4			0.1			0			0.0			(4	)		0
VENEZUELA		159			4.0			94			2.3			141			3.1			47			(17	)
OTHER		5			0.1			20			0.5			1			0.0			(19	)		(5	)

TOTAL COMMERCIAL PORTFOLIO ⁽¹⁾	$	3,935			100	%	$	4,176			100	%	$	4,512			100	%	$	336		$	577

UNEARNED INCOME AND COMMISSION ⁽²⁾		(4	)					(7	)					(6	)					0			(2	)

TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	3,931					$	4,169					$	4,506					$	337		$	575

⁽¹⁾	Includes book value of loans, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments).

⁽²⁾	Represents unearned income and commission on loans.

EXHIBIT XI

AVAILABLE FOR SALE PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
COUNTRY	(A) Jun. 30, 2007		(B) Mar. 31, 2008		(C) Jun. 30, 2008		(C) - (B)			(C) - (A)

ARGENTINA	$	15	$	20	$	0	$	(20	)	$	(15	)
BRAZIL		67		173		161		(12	)		94
CHILE		42		43		42		(0	)		0
COLOMBIA		0		232		175		(58	)		175
COSTA RICA		0		0		19		19			19
DOMINICAN REPUBLIC		15		11		11		(0	)		(3	)
EL SALVADOR		0		22		38		16			38
GUATEMALA		0		6		41		36			30
MEXICO		11		76		77		2			58
PANAMA		20		78		77		(1	)		77
PERU		0		30		29		(1	)		29
OTHER		0		5		67		61			67
TOTAL AVAILABLE FOR SALE PORTFOLIO	$	168	$	695	$	737	$	41		$	568

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

	QUARTERLY INFORMATION
COUNTRY	(A) 2QTR07		(B) 1QTR08		(C) 2QTR08		(C) - (B)			(C) - (A)
ARGENTINA	$	108	$	94	$	46	$	(48	)	$	(61	)
BOLIVIA		0		0		5		5			5
BRAZIL		369		375		399		24			30
CHILE		73		0		0		(0	)		(73	)
COLOMBIA		177		156		40		(116	)		(137	)
COSTA RICA		70		113		248		135			177
DOMINICAN REPUBLIC		128		118		80		(38	)		(48	)
ECUADOR		111		96		112		17			1
EL SALVADOR		20		29		26		(3	)		6
GUATEMALA		48		61		101		40			53
HONDURAS		51		24		40		15			(11	)
JAMAICA		45		79		99		20			54
MEXICO		263		115		256		141			(7	)
NICARAGUA		2		19		0		(19	)		(2	)
PANAMA		38		33		28		(5	)		(10	)
PERU		411		537		203		(334	)		(208	)
TRINIDAD & TOBAGO		89		53		160		107			71
URUGUAY		0		4		3		(1	)		3
VENEZUELA		19		86		53		(33	)		34
OTHER		5		7		62		55			56

TOTAL CREDIT DISBURSED	$	2,028	$	2,000	$	1,962	$	(38	)	$	(66	)

Includes book value of loans, fair value of selected investment securities, and contingencies (including confirmed letters of credit, stand-by letters of credit, guarantees covering commercial and country risks, credit default swaps and credit commitments).