Edgar Filing: FOREIGN TRADE BANK OF LATIN AMERICA, INC.

Unassociated Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

SECURITIES EXCHANGE ACT OF 1934

Long form of Press Release

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia

P.O. Box 0819-08730

Panama City, Republic of Panama

(Address of Registrant’s Principal Executive Offices)

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

Form 20-F x Form 40-F ¨

(Indicate by check mark 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 21, 2010

	FOREIGN TRADE BANK OF LATIN AMERICA, INC.

	By: /s/ Pedro Toll

	Name: Pedro Toll
	Title: General Manager

BLADEX REPORTS SECOND QUARTER 2010 NET INCOME OF $1.7 MILLION; $0.05 PER SHARE.

PANAMA CITY, July 21, 2010 – Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”) announced today its results for the second quarter ended June 30, 2010.

Second Quarter Business Highlights

Net Income (*) for the second quarter 2010 amounted to $1.7 million, compared to $10.1 million in the first quarter 2010, and $10.5 million in the second quarter 2009; the decline was driven by trading losses in the Asset Management Division.

During the quarter, the Commercial Portfolio grew $305 million, or 9%. Year-to-date, the commercial portfolio has grown $436 million, or 14%. Compared to June 30, 2009, the portfolio has expanded 24%.

Net interest income in the second quarter 2010 was $17.2 million, a 6% increase over the previous period. Fees and commissions grew 17% during the quarter, reaching $2.8 million. On a year-to date-basis, fees and commissions have grown 78%.

The Bank's weighted average cost of funds decreased 17bps, or 12%, compared to the first quarter 2010, and 125bps, or 50%, compared to the second quarter 2009. As of June 30, 2010 deposit balances increased 11% over the previous quarter and 20% year-on-year.

Portfolio quality continued to improve, as non-accrual loans declined 12% compared to the previous quarter to $45 million.

Second quarter 2010 operating expenses were $10.0 million, the same level as the first quarter 2010, and 16% higher than the second quarter 2009, as average commercial portfolio balances grew 21% year-on-year.

The Commercial Division recorded a $2.4 million, or 23%, increase in operating income during the quarter, as business grew across all customer segments and the new offices in Porto Alegre and Monterrey came on line. The Treasury Division reported a Net Loss (*) in the second quarter of $2.8 million, unchanged from the previous period. While the Division has no open interest or currency positions, the results were driven by unrealized net losses on the valuations of hedging instruments used, and by valuations of the $51 million securities trading portfolio.

The Asset Management Division reported a Net Loss in the second quarter 2010 of $9.4 million, compared to a Net Loss of $1.4 million in the first quarter 2010, and Net Income of $2.5 million in the second quarter 2009. The loss in the second quarter 2010 was related to trading losses in the Investment Fund, as volatility and Latin American market correlations with European markets peaked during the quarter.

The Bank’s Tier 1 capital ratio as of June 30, 2010 was 23.4%, compared to 24.6% as of March 31, 2010, and 21.1% as of June 30, 2009, while the leverage ratio as of these dates was 6.6x, 5.8x, and 6.3x, respectively.

(*) Net income or loss attributable to Bladex (“Net Income”, or “Net Loss”).

CEO's Comments

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the Bank’s results: “Bladex’s second quarter results demonstrate the Bank’s ability to leverage the Region’s recovering trade flows, expand its operation and grow the core business. Unfortunately, trading losses in the Asset Management Division masked the substantial progress made in just about all other aspects of Bladex’s business.

Bladex posted strong results in its core business, with an expanding commercial portfolio and strong fee generation. Trade flows continue to expand, economies are in generally good shape, and investment levels across most of the Region are rising. Working off this favorable environment, Bladex continues to expand its client base and develop new markets. The Bank has opened two new representative offices and just received Board approval to open the next. As a result, the commercial portfolio grew 9% during the quarter, bringing year-to-date growth to 14%, and growth during the previous twelve months to 24%. Disbursements in the second quarter were $1.6 billion, 25% ahead of the previous period. Fees and commissions are running 78% ahead of last year.

Bladex’s cost of funds has continued to decline and is now 142 bps less than this time last year. Crucially, credit quality, already nearing the Bank’s historical standards, continues to improve. The Bank’s capitalization remains strong (Tier 1 of 23.4%), deposits are growing, and liquidity is ample. Expenses are running higher than last year, but are doing so because of a good reason: Bladex is investing in the growth of the Commercial Division.

The trading losses within the Asset Management Division stemmed from an unusually strong correlation that developed between Latin American positions and some EU sovereign risk, particularly while the Greek crisis was in full swing in April and May. The Asset Management Division is reviewing its trading strategy in light of this new reality, and the Bank expects the Division to return to its usual performance levels as markets stabilize.

With all of the Bank's other indicators showing clear progress, management will continue to focus its efforts on the execution of Bladex’s medium-term plan designed to achieve scale, stability and attractive returns," Mr. Rivera concluded.

RESULTS BY BUSINESS SEGMENT

COMMERCIAL DIVISION

The Commercial Division incorporates the Bank’s core business of financial intermediation and fee generation activities. Net Income includes net interest income from loans, fee income, net allocated operating expenses, the reversal (provision) for loan and off-balance sheet credit losses, and any impairment on assets.

(US$ million)	6M10			6M09			2Q10			1Q10			2Q09
Commercial Division:
Net interest income	$	32.2		$	33.9		$	17.0		$	15.2		$	17.0
Non-interest operating income (1)		4.9			3.3			2.7			2.2			0.8
Net operating revenues (2)		37.1			37.2			19.7			17.4			17.8
Operating expenses		(13.7	)		(11.8	)		(6.7	)		(6.8	)		(5.1	)
Net operating income (3)		23.4			25.4			13.0			10.6			12.7
Reversal (provision) for loan and off-balance sheet credit losses, net		4.4			(14.3	)		0.9			3.5			(9.1	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.2			0.0
Net Income	$	28.0		$	11.0		$	13.9		$	14.3		$	3.6

Quarterly and Year-on-Year Growth

The Commercial Division continued to accelerate portfolio growth in the second quarter as market demand strengthened, reaching $3.5 billion in period-end balances, a 9% increase from the previous quarter and a 24% increase from the second quarter 2009.

2Q10 vs. 1Q10

The Division’s Net Income in the second quarter 2010 amounted to $13.9 million, compared to $14.3 million in the first quarter 2010, which benefitted from higher provision reversals. Net operating income in the second quarter 2010 amounted to $13.0 million, compared to $10.6 million in the first quarter 2010. The $2.4 million quarterly increase in operating income was the result of the combined effects of: (i) a $1.8 million increase in net interest income due to higher average loan portfolio balances (+7%), mainly driven by demand from corporations, (ii) a $0.5 million increase in non-interest operating income, mostly attributable to increased commission income from the letter of credit business, and (iii) $0.1 million in lower operating expenses during the quarter.

2Q10 vs. 2Q09

The Division’s Net Income in the second quarter 2010 increased $10.3 million compared to the second quarter 2009, mainly as a result of improving credit quality, and thus, decreased reserve requirements. Net Operating income increased $0.3 million compared to the second quarter 2009, mainly due to an 11% increase in non-interest income from fees and commissions, partially offset by increased operating expenses. The effects of a greater average portfolio base on net interest income were largely offset by a year-on-year decline in market rates.

6M10 vs. 6M09

The Division’s accumulated Net Income increased $17.0 million (155%) versus the same period in 2009, mainly as a result of lower credit reserve requirements as portfolio quality improved, and higher non-interest operating income, partially offset by lower net interest income. Net operating income declined $2.0 million versus the six months ended June 30, 2009 as a result of: (i) a $1.7 million decrease in net interest income mostly attributable to lower average lending rates (160 bps), of which 157 bps corresponded to a reduction in market interest rates, partially offset by lower average cost of funds (-142 bps) and by the income effects of the increase in average loan portfolio balances (+11%); (ii) a $1.6 million increase in commissions and fees from letters of credit and guarantees, and (iii) a $1.9 million increase in operating expenses as the Division expanded its activities.

The following graph illustrates the trend in quarterly weighted average lending spreads as liquidity and credit quality stabilized:

The commercial portfolio 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) pertaining to the Bank’s client-oriented intermediation activities. The Bank’s commercial portfolio balance reached $3.5 billion as of June 30, 2010, a 9% increase over the balances as of March 31, 2010, and 24% over the balance as of June 30, 2009. Similarly, on an average basis, the commercial portfolio increased 6% in the second quarter 2010 compared to the previous quarter, and 21% from the second quarter 2009.

The commercial portfolio continues to mainly be short-term and trade-related in nature. $2.7 billion, or 77%, of the commercial portfolio matures within one year. Trade financing operations represent 60% of the portfolio, while the remaining balance consists primarily of lending to banks and exporters. Refer to Exhibit X for information relating to the Bank’s commercial portfolio distribution by country and Exhibit XII for the Bank’s distribution of credit disbursements by country.

TREASURY DIVISION

The Treasury Division incorporates the Bank’s liquidity management and investment securities activities. Net Income is presented net of allocated operating expenses, and includes net interest income on Treasury activities and net other income (loss) relating to Treasury activities (12).

(US$ million)	6M10			6M09			2Q10			1Q10			2Q09
Treasury Division:
Net interest income (loss)	$	1.1		$	0.3		$	0.6		$	0.5		$	0.8
Non-interest operating income (loss) (1)		(2.4	)		9.6			(1.4	)		(1.1	)		5.8
Net operating revenues (2)		(1.3	)		9.9			(0.8	)		(0.6	)		6.6
Operating expenses		(4.2	)		(4.5	)		(2.0	)		(2.2	)		(2.2	)
Net operating income (loss) (3, 12)		(5.5	)		5.4			(2.8	)		(2.8	)		4.4
Net Income (Loss)	$	(5.5	)	$	5.4		$	(2.8	)	$	(2.8	)	$	4.4

Quarterly and Year-on-Year Variation

The Treasury Division continued to leverage diversified funding sources to lower funding costs during the quarter as deposits and borrowings increased, while maintaining the level of its securities portfolio compared to the previous quarter.

The trading portfolio as of June 30, 2010 reached $51 million, the same level as of March 31, 2010, and a $114 million decrease from June 30, 2009. The securities available for sale portfolio as of June 30, 2010 remained at $457 million, the same level as of March 31, 2010, and a $151 million decrease compared to June 30, 2009. The year-on-year decrease reflects the sale of $147 million in book value of the securities portfolio in 2009.

Period-end deposit balances increased 11% over the previous quarter, and 20% year-on-year, to reach $1.5 billion, the highest level since third quarter 2008. Borrowings and securities sold under repurchase agreements increased 16% over the first quarter 2010 to $2.0 billion, a 1% year-on-year increase, as the leverage ratio reached 6.6x in the second quarter 2010, compared to 5.8x in the previous quarter, and 6.3x in the same period 2009.

2Q10 vs. 1Q10

In the second quarter 2010, the Treasury Division posted a Net Loss of $2.8 million, compared to the same result in the first quarter 2010. Net operating revenues were $0.2 million lower, mainly due to a $0.3 million decrease in non-interest operating income mainly from net losses on valuations of hedging instruments, partially offset by increased interest income, and decreased operating expenses.

2Q10 vs. 2Q09

The Treasury Division posted a Net Loss of $2.8 million in the second quarter 2010 compared to a Net Income of $4.4 million in the second quarter 2009 due to a $7.2 million variance in non-interest operating income as a result of unrealized losses on trading securities.

6M10 vs. 6M09

The Treasury Division reported a Net Loss of $5.5 million during the first six months of 2010, compared to a $5.4 million Net Income in the first six months of 2009. The $10.9 million decrease in this period was primarily driven by a $12.0 million variance in non-interest operating income mainly attributable to a year-on-year reduction in gains on trading securities.

The available for sale portfolio as of June 30, 2010 consisted entirely of readily quoted Latin American securities, 80% of which were sovereign and state-owned risk in nature (refer to Exhibit XI for a per country distribution of the Treasury portfolio).

The available for sale portfolio is marked to market, with the impact recorded in stockholders’ equity through the Other Comprehensive Income Account (“OCI”), which stood at (-$11 million) in the second quarter 2010, compared to (-$6 million) in the first quarter 2010, as lower valuations on related hedging instruments (-$6 million) offset increased market valuations of the securities portfolio (+$1 million) (refer to Exhibit I).

Liquid assets (11) increased to $593 million as of June 30, 2010, compared to $328 million as of March 31, 2010, and $456 million as of June 30, 2009, in preparation for credit disbursements and retirements of borrowings scheduled early in the current quarter.

The Bank made increased use of repurchase agreement obligations in the second quarter 2010, and increased overall borrowing levels to support asset growth as funding costs continue to improve. Weighted average funding costs for the second quarter 2010 amounted to 1.26%, a decrease of 17 bps, or 12%, compared to the first quarter 2010, and a decrease of 125 bps, or 50%, compared to the second quarter 2009.

ASSET MANAGEMENT DIVISION

The Asset Management Division incorporates the Bank’s asset management activities. The Division’s Investment Fund follows primarily a Latin America macro strategy, utilizing a combination of products (foreign exchange, equity indices, interest rate swaps, and credit derivative products) to establish long and short positions in the markets.

The Division’s Net Income includes net interest income on the Investment Fund, as well as net gains (losses) from Investment Fund trading, other related income (loss), allocated operating expenses, and the Net Income attributable to redeemable non-controlling interest.

(US$ million)	6M10			6M09			2Q10			1Q10			2Q09
Asset Management Division:
Net interest income (loss)	$	0.2		$	(2.0	)	$	(0.4	)	$	0.6		$	(1.0	)
Non-interest operating income (loss) (1)		(11.4	)		16.6			(10.1	)		(1.3	)		4.9
Net operating revenues (2)		(11.2	)		14.6			(10.5	)		(0.7	)		3.9
Operating expenses		(2.3	)		(3.5	)		(1.3	)		(1.0	)		(1.3	)
Net operating income (loss) (3)		(13.5	)		11.1			(11.8	)		(1.7	)		2.6
Net income (loss)		(13.5	)		11.1			(11.8	)		(1.7	)		2.6
Net income (loss) attributable to the redeemable noncontrolling interest		(2.8	)		0.4			(2.4	)		(0.3	)		0.1
Net Income (Loss)	$	(10.7	)	$	10.7		$	(9.4	)	$	(1.4	)	$	2.5

2Q10 vs. 1Q10

The Asset Management Division recorded a Net Loss in the second quarter 2010 of $9.4 million, compared to a Net Loss of $1.4 million in the first quarter in 2010. The $8.0 million decrease was mainly due to a $8.8 million decrease in non-interest operating income attributable to losses from Investment Fund trading, partially offset by net income attributable to the redeemable non-controlling interest.

2Q10 vs. 2Q09

The Division posted a Net Loss of $9.4 million in the second quarter 2010, compared to a $2.5 million gain in the second quarter 2009 as a result of losses from Investment Fund trading, offset by net loss attributable to the redeemable non-controlling interest.

6M10 vs. 6M09

The Division posted a Net Loss during the first six months of 2010 of $10.7 million compared to Net Income of $10.7 million in the first six months of 2009. The $21.4 million year-over-year variance was due to the combined effects of: (i) a $2.2 million increase in net interest income, (ii) a $28.0 million decrease in non-interest operating income attributable to losses from Investment Fund trading, (iii) a $1.2 million decrease in operating expenses from lower provisions for variable compensation tied to the performance of the Investment Fund.

As of June 30, 2010, the Investment Fund’s asset value totaled $193 million, compared to $205 million as of March 31, 2010 and $166 million as of June 30, 2009. For the same dates, Bladex´s ownership of the Bladex Offshore Feeder Fund was 79.0%, compared to 78.79% as of March 31, 2010, and 95.32% as of June 30, 2009, respectively, with remaining balances owned by third party investors.

CONSOLIDATED RESULTS OF OPERATIONS

KEY FINANCIAL FIGURES AND RATIOS

The following table illustrates the consolidated results of operations of the Bank for the periods indicated below:

(US$ million, except percentages and per share amounts)	6M10			6M09			2Q10			1Q10			2Q09
Net Interest Income	$	33.5		$	32.2		$	17.2		$	16.3		$	16.8
Net Operating Income (Loss) by Business Segment:
Commercial Division	$	23.4		$	25.4		$	13.0		$	10.6		$	12.7
Treasury Division	$	(5.5	)	$	5.4		$	(2.8	)	$	(2.8	)	$	4.4
Asset Management Division	$	(13.5	)	$	11.1		$	(11.8	)	$	(1.7	)	$	2.6
Net Operating Income	$	4.4		$	41.9		$	(1.6	)	$	6.1		$	19.7
Net income	$	9.0		$	27.6		$	(0.7	)	$	9.8		$	10.6
Net income (loss) attributable to the redeemable noncontrolling interest	$	(2.8	)	$	0.4		$	(2.4	)	$	(0.3	)	$	0.1
Net Income attributable to Bladex	$	11.8		$	27.2		$	1.7		$	10.1		$	10.5

Net Income per Share (5)	$	0.32		$	0.75		$	0.05		$	0.28		$	0.29
Book Value per common share (period end)	$	18.35		$	17.61		$	18.35		$	18.59		$	17.61
Return on Average Equity (“ROE”)		3.5	%		8.9	%		1.0	%		6.1	%		6.6	%
Operating Return on Average Equity ("Operating ROE") (6)		1.3	%		13.8	%		-1.0	%		3.7	%		12.4	%
Return on Average Assets (“ROA”)		0.6	%		1.3	%		0.2	%		1.1	%		1.0	%
Net Interest Margin		1.69	%		1.56	%		1.67	%		1.71	%		1.62	%
Efficiency Ratio (7)		82	%		32	%		120	%		62	%		30	%

Tier 1 Capital (8)	$	680		$	662		$	680		$	684		$	662
Total Capital (9)	$	716		$	701		$	716		$	718		$	701
Risk-Weighted Assets	$	2,899		$	3,129		$	2,899		$	2,779		$	3,129
Tier 1 Capital Ratio (8)		23.4	%		21.1	%		23.4	%		24.6	%		21.1	%
Total Capital Ratio (9)		24.7	%		22.4	%		24.7	%		25.8	%		22.4	%
Stockholders’ Equity	$	673		$	643		$	673		$	681		$	643
Stockholders’ Equity to Total Assets		15.2	%		15.8	%		15.2	%		17.2	%		15.8	%
Other Comprehensive Income Account ("OCI")	$	(11	)	$	(21	)	$	(11	)	$	(6	)	$	(21	)

Leverage (times) (10)		6.6			6.3			6.6			5.8			6.3
Liquid Assets / Total Assets (11)		13.5	%		11.2	%		13.5	%		8.3	%		11.2	%
Liquid Assets / Total Deposits		39.4	%		36.2	%		39.4	%		24.2	%		36.2	%

Non-Accruing Loans to Total Loans, net		1.5	%		0.0	%		1.5	%		1.8	%		0.0	%
Allowance for Credit Losses to Commercial Portfolio		2.7	%		3.5	%		2.7	%		3.0	%		3.5	%

Total Assets	$	4,412		$	4,067		$	4,412		$	3,962		$	4,067

The following graphs illustrate the trends in Net Income and Return on Average Stockholders’ Equity and Tier 1 Capital for the periods indicated:

NET INTEREST INCOME AND MARGINS

(US$ million, except percentages)		6M10			6M09			2Q10			1Q10			2Q09
Net Interest Income (Loss)
Commercial Division	$	32.2		$	33.9		$	17.0		$	15.2		$	17.0
Treasury Division		1.1			0.3			0.6			0.5			0.8
Asset Management Division		0.2			(2.0	)		(0.4	)		0.6			(1.0	)
Consolidated	$	33.5		$	32.2		$	17.2		$	16.3		$	16.8

Net Interest Margin*		1.69	%		1.56	%		1.67	%		1.71	%		1.62	%

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

2Q10 vs. 1Q10

In the second quarter 2010, net interest income amounted to $17.2 million, an increase of $0.9 million, or 6% compared to $16.3 million in the first quarter 2010. The quarterly increase primarily reflects:

(i)

Higher average loan portfolio balances, which increased $192 million, or 7%, compared to the first quarter 2010, which resulted in an overall increase of $1.7 million in interest income, partially offset by a $0.6 million increase in interest expense, due to higher average balances in securities sold under repurchase agreements and short-term borrowings. The net positive effect of higher average volumes in interest-assets and interest-bearing liabilities was $1.1 million.

(ii)

Lower average interest rates for the Bank’s assets and liabilities resulted in a $0.2 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 17 bps to 1.26% during the quarter due to lower interbank market rates as well as lower borrowings spreads, while the average yield on interest-earning assets decreased 14 bps to 2.65% during the second quarter 2010 compared to the first quarter 2010, mainly attributable to the Investment Fund.

2Q10 vs. 2Q09

Net interest income when compared to the second quarter 2009, increased $0.4 million, or 2%. This increase reflects primarily the following:

(i)

Higher average loan portfolio balances, which increased $417 million, or 16%, compared to the second quarter 2009, resulted in an overall increase of $1.4 million in interest income. Average volumes of interest bearing liabilities, decreased $98 million, mainly due to the reduction of securities sold under repurchase agreements and short-term borrowings, which entirely offset the effect of increased deposits and long-term borrowings and debt. The net effect of average volumes variances in interest-assets and interest-bearing liabilities was $1.4 million.

(ii)

Lower average interest rates for the Bank’s assets and liabilities resulted in a $1.0 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 125 bps, while the average yield on interest-earning assets decreased 100 bps, both mostly attributable to lower interbank market rates.

Net interest margin stood at 1.67% in the second quarter 2010, compared to 1.71% in the first quarter 2010, and 1.62% in the second quarter 2009.

6M10 vs. 6M09

Net interest income amounted to $33.5 million in the first six months of 2010, compared to $32.2 million during the first six months of 2009. The $1.3 million, or 4%, increase of net interest income during the period primarily reflects:

(i)

Higher average loan portfolio balances, which increased $276 million, or 11%, from $2.6 billion in the first six months of 2009 to $2.9 billion in the first six months of 2010, resulting in a $2.7 million overall increase in net interest income, and a $0.7 million decrease in interest expense associated primarily with a decrease of securities sold under repurchase agreements and short-term borrowings, which decreased from $1.0 billion in the first six months of 2009 compared to $0.4 billion in the first six months of 2010. The net effect of average volume variances in interest-bearing assets and liabilities was a $3.4 million increase in net interest income.

(ii)

Lower average interest rates for the Bank’s assets and liabilities resulted in a $2.1 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 142 bps to 1.34% during the first six months of 2010, from 2.76% in the first six months of 2009, mainly due to lower interbank market rates, while the average yield on interest-earning assets decreased 108 bps, to 2.72% in the first six months of 2010 (from 3.79% in the first six months of 2009), also mainly attributable to lower interbank market rates.

Net interest margin stood at 1.69% in the first six months of 2010, compared to 1.56% in the first six months of 2009.

FEES AND COMMISSIONS

(US$ million)	6M10		6M09		2Q10		1Q10		2Q09
Letters of credit	$	4.6	$	1.9	$	2.5	$	2.1	$	0.4
Guarantees		0.1		0.7		0.0		0.0		0.2
Loans		0.1		0.1		0.1		0.0		0.0
Third party investor (BAM)		0.3		0.0		0.2		0.2		0.0
Other*		0.1		0.1		0.0		0.1		0.1
Fees and Commissions, net	$	5.2	$	2.9	$	2.8	$	2.4	$	0.7
* Net of commission expenses

Fees and commissions amounted to $2.8 million, $0.4 million higher than the first quarter 2010, and $2.1 million higher compared to the second quarter 2009. Both variances were mainly due to increased commission income from the letter of credit business as the result of the combined effects of:

(i)

The impact of a quarter-on-quarter decrease in average letter of credit balances (-$0.1 million), while margin improvements in the same period contributed $0.5 million; and

(ii)

The impact of a year-on-year increase in average letter of credit balances, $0.8 million, while margin improvements contributed $1.3 million.

During the first six months of 2010, commission income amounted to $5.2 million, compared $2.9 million in the six months of 2009, resulting in a $2.3 million increase in commission income, mainly from the letter of credit business.

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

(In US$ million)	30-Jun-09		30-Sep-09			31-Dec-09			31-Mar-10			30-Jun-10
Allowance for Loan Losses:
Balance at beginning of the period	$	80.6	$	90.2		$	89.9		$	73.8		$	73.9
Provisions (reversals)		8.9		(0.4	)		(16.1	)		0.1			8.7
Recoveries, net of charge-offs		0.8		0.0			(0.0	)		0.0			(1.4	)
End of period balance	$	90.2	$	89.9		$	73.8		$	73.9		$	81.3

Reserve for Losses on Off-balance Sheet Credit Risk:
Balance at beginning of the period	$	10.1	$	10.3		$	11.8		$	27.3		$	23.6
Provisions (reversals)		0.2		1.5			15.5			(3.7	)		(9.6	)
End of period balance	$	10.3	$	11.8		$	27.3		$	23.6		$	14.0

Total Allowance for Credit Losses	$	100.5	$	101.7		$	101.0		$	97.6		$	95.3

During the second quarter 2010, the allowance for credit losses decreased $2.3 million, reflecting the $7.3 million increase in the allowance for loan losses, and a $9.6 million decrease in the reserve for losses on off-balance sheet credit risk.

(i)

Allowance for loan losses: The $7.3 million increase in the allowance for loan losses reflect the combination of: (i) a $5.8 million provision in generic loan loss reserves driven primarily by higher balances in the loan portfolio, (ii) a $2.9 million increase in specific loan loss reserves, and (iii) a $2.1 million charge-off net of $0.7 million in recoveries pertaining to prior-period losses.

(ii)

Reserve for losses on off-balance sheet credit risk: The $9.6 million decrease in the reserves for losses on off-balance sheet credit risk reflects changes in the overall risk profile of the portfolio composition.

As of June 30, 2010, the non-accrual portfolio amounted to $45.3 million, compared to $51.3 million as of March 31, 2010, a decline of 12%. No new non-accrual loans were recorded in the second quarter 2010. The $6.0 million decrease was due to the settlement of a loan resulting in a partial charge-off, and the release of the associated specific reserve.

The net reversal for loan and off-balance sheet credit losses of $0.9 million during the quarter was $2.6 million lower than the previous quarter, as overall lower generic reserve requirements, net of recoveries, were partially offset by increased reserves from loan growth and specific reserve requirements.

The ratio of the allowance for credit losses to the commercial portfolio stood at 2.7% as of June 30, 2010, compared to 3.0% as of March 31, 2010, and 3.5% as of June 30, 2009, while the non-accruing loan ratio stood at 1.5%, 1.8%, and 0%, respectively.

OPERATING EXPENSES

(US$ million)	6M10		6M09		2Q10		1Q10		2Q09
Salaries and other employee expenses	$	10.9	$	10.4	$	5.5	$	5.4	$	4.2
Depreciation, amortization and impairment of premises and equipment		1.3		1.4		0.6		0.7		0.7
Professional services		2.3		1.7		1.2		1.1		1.0
Maintenance and repairs		0.7		0.5		0.3		0.3		0.3
Expenses from the investment fund		0.5		2.1		0.3		0.3		0.6
Other operating expenses		4.4		3.6		2.1		2.2		1.9
Total Operating Expenses	$	20.1	$	19.8	$	10.0	$	10.0	$	8.6

Quarterly Variation

Operating expenses in the second quarter 2010 totaled $10.0 million, the same level as the first quarter 2010, and an increase of $1.4 million, or 16%, with respect to the second quarter 2009. The year-on-year increase in operating expenses was mostly attributable to increased salaries and other employee expenses associated with a higher average employee headcount, and the start of the Bank’s new offices in Porto Alegre, Brazil and Monterrey, Mexico.

6M10 vs. 6M09

During the first half of 2010, operating expenses amounted to $20.1 million, compared to $19.8 million during the same period in 2009. The $0.3 million, or 2%, increase in operating expenses during this period was attributable to the net effect of higher salaries and other employee expenses from higher average headcount and professional fees associated with the expansion of the Commercial Division’s activities, partially offset by lower performance–related expenses from the Investment Fund.

The Bank’s efficiency ratio as of June 30, 2010 was 82% compared to 32% as of June 30, 2009, mainly the result of a $37.0 million decrease in net operating revenues in the Asset Management and Treasury Divisions during the period

As of June 30, 2010, the Bank’s operating expenses to average assets ratio amounted to 1.02%, compared to 0.96% as of June 30, 2009. During the second quarter 2010, the operating expenses to average assets ratio improved 8 basis points to 0.98%, compared to previous quarter’s 1.06%, as asset growth accelerated.

OTHER EVENTS

§	Quarterly Dividend Payment: On July 15, 2010, the Bank announced a quarterly common dividend payment of US$0.15 per share related to the second quarter 2010. The dividend will be payable on August 4, 2010 to stockholders registered as of the July 26, 2010 record date.

Change to the Board of Directors: On May 11, 2010, Bladex announced the resignation of Mr. Carlos E. Weitz as Class “A” Director on Bladex’s Board after being appointed Advisor to the Central Bank of Argentina. Mr. Weitz was a member of the Audit and Compliance Committee, as well as the Nomination and Compensation Committee. Mr. Weitz is succeeded by Mr. Esteban Alejandro Acerbo, a Director at Banco de la Nacion Argentina. Mr. Acerbo serves as a Class “A” Director and a member of both the Audit and Compliance and Nomination and Compensation Committees for the remainder of Mr. Weitz’s original term, due to expire in April, 2011.

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

Footnotes:

(1)

Non-interest operating income (loss) 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: Net fees and commissions and Net related other income (expense).

Treasury Division: net gain (loss) on sale of securities available-for-sale, impact of derivative hedging instruments, gain (loss) on foreign currency exchange, and gain (loss) on trading securities.

Asset Management Division: Gain from Investment Fund trading and related other income (expense).

(2)

Net Operating Revenues refers to net interest income plus non-interest operating income.

(3)

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

(4)

Lending spreads are calculated as loan portfolio weighted average lending spread, net of weighted average Libor-based cost rate, excluding loan commissions.

(5)

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

(6)

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

(7)

Efficiency ratio refers to consolidated operating expenses as a percentage of net operating revenues.

(8)

Tier 1 Capital is calculated according to Basel I capital adequacy guidelines, and is equivalent to stockholders’ equity excluding the OCI effect of the available for sale portfolio. Tier 1 Capital ratio is calculated as a percentage of risk weighted assets. Risk-weighted assets are, in turn, also calculated based on Basel I capital adequacy guidelines.

(9)

Total Capital refers to Tier 1 Capital plus Tier 2 Capital, based on Basel I capital adequacy guidelines. Total Capital ratio refers to Total Capital as a percentage of risk weighted assets.

(10)

Leverage corresponds to assets divided by stockholders’ equity.

(11)

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 pledged regulatory deposits.

(12)

Treasury Division’s net operating income includes: (i) interest income from interest bearing deposits with banks, investment securities and trading assets, net of allocated cost of funds; (ii) other income (expense) from derivative financial instrument and hedging; (iii) net gain (loss) from trading securities; (iv) net gain (loss) on sale of securities available for sale; (v) gain (loss) on foreign currency exchange; and (vi) allocated operating expenses.

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 the macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace deposit withdrawals.

About Bladex

Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through June 30, 2010, Bladex had disbursed accumulated credits of approximately $165 billion.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Thursday, July 22, 2010 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 http://www.bladex.com.

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through September 21, 2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The conference ID# for the replayed call is 18275331. For more information, please access http://www.bladex.com or contact:

Mr. Christopher Schech

Chief Financial Officer

Bladex

Calle 50 y Aquilino de la Guardia

Panama City, Panama

Tel: (507) 210-8630

E-mail address: cschech@bladex.com

Investor Relations Firm:

i-advize Corporate Communications, Inc.

Mrs. Melanie Carpenter / Mr. Peter Majeski

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)			(A) - (B)						(A) - (C)
	June 30, 2010			March 31, 2010			June 30, 2009			CHANGE			%			CHANGE			%
	(In US$ million)

ASSETS:
Cash and due from banks	$	620		$	349		$	485		$	271			78	%	$	135			28	%
Trading assets		51			51			165			0			0			(114	)		(69	)
Securities available-for-sale		457			457			608			0			0			(151	)		(25	)
Securities held-to-maturity		13			0			0			13		n.m.		(*)		13		n.m.		(*)
Investment fund		193			205			166			(12	)		(6	)		27			16
Loans		3,100			2,935			2,682			165			6			418			16
Less:
Allowance for loan losses		(81	)		(74	)		(90	)		(7	)		9			9			(10	)
Unearned income and deferred fees		(4	)		(3	)		(4	)		(1	)		33			0			0
Loans, net		3,015			2,858			2,587			157			5			428			17

Customers' liabilities under acceptances		20			0			0			20		n.m.		(*)		20		n.m.		(*)
Premises and equipment, net		7			7			8			0			0			(1	)		(13	)
Accrued interest receivable		27			22			41			5			23			(14	)		(34	)
Derivative financial instruments used for hedging - receivable		1			0			1			1		n.m.		(*)		0			0
Other assets		10			12			7			(2	)		(17	)		3			43

TOTAL ASSETS	$	4,412		$	3,962		$	4,067		$	450			11	%	$	345			8	%

LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	23		$	37		$	156		$	(14	)		(38	)%	$	(133	)		(85	)%
Time		1,484			1,318			1,104			166			13			380			34
Total Deposits		1,507			1,355			1,261			152			11			246			20

Trading liabilities		4			5			11			(1	)		(20	)		(7	)		(64	)
Securities sold under repurchase agreements		246			95			312			151			159			(66	)		(21	)
Short-term borrowings		434			282			598			152			54			(164	)		(27	)
Borrowings and long-term debt		1,370			1,394			1,128			(24	)		(2	)		242			21
Acceptances outstanding		20			0			0			20		n.m.		(*)		20		n.m.		(*)
Accrued interest payable		8			10			17			(2	)		(20	)		(9	)		(53	)
Derivative financial instruments used for hedging - payable		73			58			69			15			26			4			6
Reserve for losses on off-balance sheet credit risk		14			24			10			(10	)		(42	)		4			40
Other liabilities		24			15			10			9			60			14			140
TOTAL LIABILITIES	$	3,699		$	3,238		$	3,416		$	461			14	%	$	283			8	%

Redeemable noncontrolling interest in the investment fund		41			43			8			(2	)		(5	)		33			413

STOCKHOLDERS' EQUITY:
Common stock, no par value, assigned value of US$6.67		280			280			280			0			0			0			0
Additional paid-in capital in excess of assigned value of common stock		134			134			135			0			0			(1	)		(1	)
Capital reserves		95			95			95			0			0			0			0
Retained earnings		302			306			285			(4	)		(1	)		17			6
Accumulated other comprehensive loss		(11	)		(6	)		(21	)		(5	)		83			10			(48	)
Treasury stock		(127	)		(128	)		(131	)		1			(1	)		4			(3	)

TOTAL STOCKHOLDERS' EQUITY	$	673		$	681		$	643		$	(8	)		(1	)%	$	30			5	%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,412		$	3,962		$	4,067		$	450			11	%	$	345			8	%

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

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME

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

	FOR THE THREE MONTHS ENDED
	(A)			(B)			(C)			(A) - (B)						(A) - (C)
	June 30, 2010			March 31, 2010			June 30, 2009			CHANGE			%			CHANGE			%

INCOME STATEMENT DATA:
Interest income	$	27,697		$	27,019		$	38,252		$	678			3	%	$	(10,555	)		(28	)%
Interest expense		(10,500	)		(10,733	)		(21,464	)		233			(2	)		10,964			(51	)
NET INTEREST INCOME		17,197			16,286			16,788			911			6			409			2
Provision for loan losses		(8,723	)		(159	)		(8,905	)		(8,564	)		5,386			182			(2	)
NET INTEREST INCOME, AFTER REVERSAL
(PROVISION) FOR LOAN LOSSES		8,474			16,127			7,883			(7,653	)		(47	)		591			7

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		9,618			3,626			(177	)		5,992			165			9,795			(5,534	)
Fees and commissions, net		2,797			2,382			734			415			17			2,063			281
Derivative financial instrument and hedging		(340	)		(953	)		(2,591	)		613			(64	)		2,251			(87	)
Impairment of assets, net of recoveries		0			233			0			(233	)		(100	)		0		n.m.		(*)
Net gain (loss) from investment fund trading		(10,343	)		(1,500	)		4,918			(8,843	)		590			(15,261	)		(310	)
Net gain (loss) from trading securities		(502	)		(1,479	)		7,653			977			(66	)		(8,155	)		(107	)
Gain (loss) on foreign currency exchange		(568	)		1,312			705			(1,880	)		(143	)		(1,273	)		(181	)
Other income (expense), net		117			71			93			46			65			24			26
NET OTHER INCOME (EXPENSE)		779			3,692			11,336			(2,913	)		(79	)		(10,557	)		(93	)

OPERATING EXPENSES:
Salaries and other employee expenses		(5,478	)		(5,409	)		(4,225	)		(69	)		1			(1,253	)		30
Depreciation, amortization and impairment of premises and equipment		(601	)		(676	)		(697	)		75			(11	)		96			(14	)
Professional services		(1,202	)		(1,107	)		(972	)		(95	)		9			(230	)		24
Maintenance and repairs…		(347	)		(347	)		(266	)		0			0			(81	)		30
Expenses from the investment fund		(278	)		(257	)		(571	)		(21	)		8			293			(51	)
Other operating expenses		(2,126	)		(2,247	)		(1,891	)		121			(5	)		(235	)		12
TOTAL OPERATING EXPENSES		(10,032	)		(10,043	)		(8,622	)		11			(0	)		(1,410	)		16

Net Income	$	(779	)	$	9,776		$	10,597		$	(10,555	)		(108	)	$	(11,376	)		(107	)

Net Income (loss) attributable to the redeemable noncontrolling interest		(2,442	)		(320	)		109			(2,122	)		663			(2,551	)		(2,340	)

NET INCOME ATTRIBUTABLE TO BLADEX	$	1,663		$	10,096		$	10,488		$	(8,433	)		(84	)%	$	(8,825	)		(84	)%

PER COMMON SHARE DATA:
Basic earnings per share		0.05			0.28			0.29
Diluted earnings per share		0.05			0.28			0.29

Weighted average basic shares		36,648			36,560			36,471
Weighted average diluted shares		36,808			36,715			36,669

PERFORMANCE RATIOS:
Return on average assets		0.2	%		1.1	%		1.0	%
Return on average stockholders' equity		1.0	%		6.1	%		6.6	%
Net interest margin		1.67	%		1.71	%		1.62	%
Net interest spread		1.38	%		1.37	%		1.14	%
Operating expenses to total average assets		0.98	%		1.06	%		0.84	%

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

	SUMMARY OF CONSOLIDATED FINANCIAL DATA
	(Consolidated Statements of Income, Balance Sheets, and Selected Financial Ratios)	EXHIBIT III

	FOR THE SIX MONTHS ENDED
	June 30, 2010			June 30, 2009
	(In US$ thousand, except per share amounts & ratios)
INCOME STATEMENT DATA:
Net interest income	$	33,483		$	32,216
Fees and commissions, net		5,178			2,901
Reversal (provision) for loan and off-balance sheet credit losses, net		4,363			(14,268	)
Derivative financial instrument and hedging		(1,294	)		(921	)
Impairment of assets, net of recoveries		233			(94	)
Net gain (loss) from investment fund trading		(11,843	)		16,614
Net gain (loss) from trading securities		(1,981	)		10,815
Gain (loss) on foreign currency exchange		744			(375	)
Other income (expense), net		188			452
Operating expenses		(20,074	)		(19,767	)
Net Income	$	8,997		$	27,573
Net Income (loss) attributable to the redeemable noncontrolling interest		(2,762	)		378
NET INCOME ATTRIBUTABLE TO BLADEX	$	11,759		$	27,195

BALANCE SHEET DATA (In US$ millions):
Investment securities and trading assets		521			773
Investment fund		193			166
Loans, net		3,015			2,587
Total assets		4,412			4,067
Deposits		1,507			1,261
Securities sold under repurchase agreements		246			312
Short-term borrowings		434			598
Borrowings and long-term debt		1,370			1,128
Total liabilities		3,699			3,416
Stockholders' equity		673			643

PER COMMON SHARE DATA:
Basic earnings per share		0.32			0.75
Diluted earnings per share		0.32			0.74
Book value (period average)		18.37			16.86
Book value (period end)		18.35			17.61

(In thousand):
Weighted average basic shares		36,604			36,443
Weighted average diluted shares		36,776			36,567
Basic shares period end		36,652			36,505

SELECTED FINANCIAL RATIOS:
PERFORMANCE RATIOS:
Return on average assets		0.6	%		1.3	%
Return on average stockholders' equity		3.5	%		8.9	%
Net interest margin		1.69	%		1.56	%
Net interest spread		1.38	%		1.04	%
Operating expenses to total average assets		1.02	%		0.96	%

ASSET QUALITY RATIOS:
Non-accruing loans to total loans, net of discounts (1)		1.5	%		0.0	%
Charge offs to total loan portfolio (1)		0.1	%		0.0	%
Allowance for loan losses to total loan portfolio (1)		2.6	%		3.4	%
Allowance for losses on off-balance sheet credit risk to total contingencies		3.1	%		5.9	%

CAPITAL RATIOS:
Stockholders' equity to total assets		15.2	%		15.8	%
Tier 1 capital to risk-weighted assets		23.4	%		21.1	%
Total capital to risk-weighted assets		24.7	%		22.4	%

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

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE SIX MONTHS ENDED,
	(A)			(B)			(A) - (B)
	June 30, 2010			June 30, 2009			CHANGE			%
(In US$ thousand)
INCOME STATEMENT DATA:
Interest income	$	54,716		$	79,285		$	(24,569	)		(31	)%
Interest expense		(21,233	)		(47,069	)		25,836			(55	)
NET INTEREST INCOME		33,483			32,216			1,267			4
Provision for loan losses		(8,882	)		(34,737	)		25,855			(74	)
NET INTEREST INCOME, AFTER REVERSAL
(PROVISION) FOR LOAN LOSSES		24,601			(2,521	)		27,122			(1,076	)

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		13,245			20,469			(7,224	)		(35	)
Fees and commissions, net		5,178			2,901			2,277			78
Derivative financial instrument and hedging		(1,294	)		(921	)		(373	)		40
Impairment of assets, net of recoveries		233			(94	)		327			(348	)
Net gain from investment fund trading		(11,843	)		16,614			(28,457	)		(171	)
Net gain (loss) from trading securities		(1,981	)		10,815			(12,796	)		(118	)
Gain (loss) on foreign currency exchange		744			(375	)		1,119			(298	)
Other income (expense), net		188			452			(264	)		(58	)
NET OTHER INCOME (EXPENSE)		4,470			49,861			(45,391	)		(91	)

OPERATING EXPENSES:
Salaries and other employee expenses		(10,887	)		(10,417	)		(470	)		5
Depreciation, amortization and impairment of premises and equipment		(1,277	)		(1,381	)		104			(8	)
Professional services		(2,308	)		(1,676	)		(632	)		38
Maintenance and repairs		(694	)		(527	)		(167	)		32
Expenses from the investment fund		(535	)		(2,119	)		1,584			(75	)
Other operating expenses		(4,373	)		(3,647	)		(726	)		20
TOTAL OPERATING EXPENSES		(20,074	)		(19,767	)		(307	)		2

Net Income	$	8,997		$	27,573		$	(18,576	)		(67	)

Net Income (loss) attributable to the redeemable noncontrolling interest		(2,762	)		378			(3,140	)		(831	)

Net Income attributable to Bladex	$	11,759		$	27,195		$	(15,436	)		(57	)%

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

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE THREE MONTHS ENDED,
	June 30, 2010								March 31, 2010								June 30, 2009
	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	$	468		$	0.2		0.20	%	$	394		$	0.2		0.19	%	$	685		$	0.4		0.23	%
Loans, net of unearned income & deferred loan fees		2,912			23.5		3.20			2,717			21.7		3.20			2,543			29.8		4.64
Non-accrual loans		48			0.8		6.45			51			1.1		8.62			0			0.0	n.m.		(*)
Trading assets		51			0.8		6.13			50			0.8		6.22			161			3.1		7.67
Investment securities		464			2.0		1.70			458			2.0		1.75			598			4.6		3.05
Investment fund		198			0.4		0.73			200			1.2		2.42			162			0.3		0.73

TOTAL INTEREST EARNING ASSETS	$	4,140		$	27.7		2.65	%	$	3,869		$	27.0		2.79	%	$	4,150		$	38.3		3.65	%

Non interest earning assets		45								46								49
Allowance for loan losses		(75	)							(74	)							(81	)
Other assets		11								12								5

TOTAL ASSETS	$	4,121							$	3,853							$	4,124

INTEREST BEARING LIABILITIES
Deposits	$	1,395		$	1.7		0.50	%	$	1,316		$	2.2		0.66	%	$	1,206		$	3.3		1.08	%
Trading liabilities		4			0.0		0.00			4			0.0		0.00			11			0.0		0.00
Investment fund		0			0.3	n.m.		(*)		0			0.2	n.m.		(*)		0			0.5	n.m.		(*)
Securities sold under repurchase agreement and Short-term borrowings		506			1.3		1.04			299			1.0		1.28			1,011			7.6		2.98
Borrowings and long term debt		1,380			7.1		2.04			1,394			7.4		2.13			1,154			10.0		3.43

TOTAL INTEREST BEARING LIABILITIES	$	3,284		$	10.5		1.26	%	$	3,013		$	10.7		1.43	%	$	3,382		$	21.5		2.51	%

Non interest bearing liabilities and other liabilities	$	120							$	130							$	101

TOTAL LIABILITIES		3,404								3,143								3,483

Redeemable noncontrolling interest in the investment fund		42								40								5

STOCKHOLDERS' EQUITY		675								670								635

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,121							$	3,853							$	4,124

NET INTEREST SPREAD							1.38	%							1.37	%							1.14	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	17.2		1.67	%				$	16.3		1.71	%				$	16.8		1.62	%

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

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE SIX MONTHS ENDED,
	June 30, 2010								June 30, 2009
	AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ million)

INTEREST EARNING ASSETS
Interest bearing deposits with banks	$	431		$	0.4		0.20	%	$	707		$	0.8		0.21	%
Loans, net of unearned income & deferred loan fees		2,815			45.3		3.20			2,588			62.4		4.80
Non-accrual loans		49			1.9		7.56			0			0.0	n.m.		(*)
Trading assets		50			1.6		6.17			105			3.7		6.91
Investment securities		461			4.0		1.72			600			11.3		3.76
Investment fund		199			1.6		1.57			158			1.1		1.39

TOTAL INTEREST EARNING ASSETS	$	4,006		$	54.7		2.72	%	$	4,159		$	79.3		3.79	%

Non interest earning assets		46								51
Allowance for loan losses		(75	)							(68	)
Other assets		11								8

TOTAL ASSETS	$	3,988							$	4,150

INTEREST BEARING LIABILITIES
Deposits	$	1,355		$	3.9		0.58	%	$	1,203		$	6.4		1.06	%
Trading liabilities		4			0.0		0.00			12			0.0		0.00
Investment fund		0			0.5	n.m.		(*)		0			1.4	n.m.		(*)
Securities sold under repurchase agreement and Short-term borrowings		403			2.3		1.13			1,019			16.3		3.17
Borrowings and long term debt		1,387			14.5		2.08			1,162			23.0		3.93

TOTAL INTEREST BEARING LIABILITIES	$	3,149		$	21.2		1.34	%	$	3,396		$	47.1		2.76	%

Non interest bearing liabilities and other liabilities	$	125							$	135

TOTAL LIABILITIES		3,274								3,531

Redeemable noncontrolling interest in the investment fund		41								5

STOCKHOLDERS' EQUITY		673								614

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	3,988							$	4,150

NET INTEREST SPREAD							1.38	%							1.04	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	33.5		1.69	%				$	32.2		1.56	%

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

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME

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

	SIX MONTHS			FOR THE THREE MONTHS ENDED															SIX MONTHS
	ENDED																		ENDED
	JUN 30/10			JUN 30/10			MAR 31/10			DEC 31/09			SEP 30/09			JUN 30/09			JUN 30/09

INCOME STATEMENT DATA:
Interest income	$	54,716		$	27,697		$	27,019		$	28,256		$	34,423		$	38,252		$	79,285
Interest expense		(21,233	)		(10,500	)		(10,733	)		(13,073	)		(17,070	)		(21,464	)		(47,069	)
NET INTEREST INCOME		33,483			17,197			16,286			15,183			17,353			16,788			32,216
Reversal (provision) for loan losses		(8,882	)		(8,723	)		(159	)		16,063			380			(8,905	)		(34,737	)

NET INTEREST INCOME (LOSS) AFTER REVERSAL (PROVISION) FOR LOAN LOSSES		24,601			8,474			16,127			31,246			17,733			7,883			(2,521	)
OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		13,245			9,618			3,626			(15,456	)		(1,549	)		(177	)		20,469
Fees and commissions, net		5,178			2,797			2,382			2,369			1,463			734			2,901
Derivative financial instrument and hedging		(1,294	)		(340	)		(953	)		(507	)		(1,105	)		(2,591	)		(921	)
Impairment of assets, net of recoveries		233			0			233			(27	)		0			0			(94	)
Net gain (loss) from investment fund trading		(11,843	)		(10,343	)		(1,500	)		2,906			5,478			4,918			16,614
Net gain (loss) from trading securities		(1,981	)		(502	)		(1,479	)		(638	)		2,936			7,653			10,815
Net gains on sale of securities available-for-sale		0			0			0			0			546			0			0
Gain (loss) on foreign currency exchange		744			(568	)		1,312			1,830			(843	)		705			(375	)
Other income (expense), net		188			117			71			322			138			93			452
NET OTHER INCOME (EXPENSE)		4,470			779			3,692			(9,201	)		7,064			11,336			49,861

TOTAL OPERATING EXPENSES:		(20,074	)		(10,032	)		(10,043	)		(9,897	)		(8,537	)		(8,622	)		(19,767	)
Net Income	$	8,997		$	(779	)	$	9,776		$	12,148		$	16,260		$	10,597		$	27,573

Net Income (loss) attributable to the redeemable noncontrolling interest		(2,762	)		(2,442	)		(320	)		233			507			109			378

NET INCOME ATTRIBUTABLE TO BLADEX	$	11,759		$	1,663		$	10,096		$	11,915		$	15,753		$	10,488		$	27,195

SELECTED FINANCIAL DATA
PER COMMON SHARE DATA
Basic earnings per share	$	0.32		$	0.05		$	0.28		$	0.33		$	0.43		$	0.29		$	0.75
PERFORMANCE RATIOS
Return on average assets		0.6	%		0.2	%		1.1	%		1.3	%		1.6	%		1.0	%		1.3	%
Return on average stockholders' equity		3.5	%		1.0	%		6.1	%		7.1	%		9.5	%		6.6	%		8.9	%
Net interest margin		1.69	%		1.67	%		1.71	%		1.60	%		1.76	%		1.62	%		1.56	%
Net interest spread		1.38	%		1.38	%		1.37	%		1.18	%		1.28	%		1.14	%		1.04	%
Operating expenses to average assets		1.02	%		0.98	%		1.06	%		1.05	%		0.88	%		0.84	%		0.96	%

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ million)

	FOR THE SIX MONTHS ENDED						FOR THE THREE MONTHS ENDED
	JUN 30/10			JUN 30/09			JUN 30/10			MAR 31/10			JUN 30/09

COMMERCIAL DIVISION:
Net interest income (1)	$	32.2		$	33.9		$	17.0		$	15.2		$	17.0
Non-interest operating income (2)		4.9			3.3			2.7			2.2			0.8
Operating expenses (3)		(13.7	)		(11.8	)		(6.7	)		(6.8	)		(5.1	)
Net operating income (4)		23.4			25.4			13.0			10.6			12.7
Reversal (provision) for loan and off-balance sheet credit losses, net		4.4			(14.3	)		0.9			3.5			(9.1	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.2			0.0
NET INCOME ATTRIBUTABLE TO BLADEX	$	28.0		$	11.0		$	13.9		$	14.3		$	3.6
Average interest-earning assets (5)		2,864			2,588			2,960			2,768			2,543
End-of-period interest-earning assets (5)		3,096			2,677			3,096			2,932			2,677

TREASURY DIVISION:
Net interest income (loss) (1)	$	1.1		$	0.3		$	0.6		$	0.5		$	0.8
Non-interest operating income (loss)(2)		(2.4	)		9.6			(1.4	)		(1.1	)		5.8
Operating expenses (3)		(4.2	)		(4.5	)		(2.0	)		(2.2	)		(2.2	)
Net operating income (loss) (4)		(5.5	)		5.4			(2.8	)		(2.8	)		4.4
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX	$	(5.5	)	$	5.4		$	(2.8	)	$	(2.8	)	$	4.4
Average interest-earning assets (6)		942			1,412			982			902			1,444
End-of-period interest-earning assets (6)		1,140			1,257			1,140			857			1,257

ASSET MANAGEMENT DIVISION:
Net interest income (loss) (1)	$	0.2		$	(2.0	)	$	(0.4	)	$	0.6		$	(1.0	)
Non-interest operating income (loss) (2)		(11.4	)		16.6			(10.1	)		(1.3	)		4.9
Operating expenses (3)		(2.3	)		(3.5	)		(1.3	)		(1.0	)		(1.3	)
Net operating income (loss) (4)		(13.5	)		11.1			(11.8	)		(1.7	)		2.6
Net income (loss)		(13.5	)		11.1			(11.8	)		(1.7	)		2.6
Net income (loss) attributable to the redeemable noncontrolling interest		(2.8	)		0.4			(2.4	)		(0.3	)		0.1
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX	$	(10.7	)	$	10.7		$	(9.4	)	$	(1.4	)	$	2.5
Average interest-earning assets (7)		199			158			198			200			162
End-of-period interest-earning assets (7)		193			166			193			205			166

CONSOLIDATED:
Net interest income (1)	$	33.5		$	32.2		$	17.2		$	16.3		$	16.8
Non-interest operating income (loss) (2)		(8.9	)		29.5			(8.8	)		(0.2	)		11.5
Operating expenses (3)		(20.2	)		(19.8	)		(10.0	)		(10.0	)		(8.6	)
Net operating income (4)		4.4			41.9			(1.6	)		6.1			19.7
Reversal (provision) for loan and off-balance sheet credit losses, net		4.4			(14.3	)		0.9			3.5			(9.1	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.2			0.0
Net income		9.0			27.6			(0.7	)		9.8			10.6
Net income (loss) attributable to the redeemable noncontrolling interest		(2.8	)		0.4			(2.4	)		(0.3	)		0.1
NET INCOME ATTRIBUTABLE TO BLADEX	$	11.8		$	27.2		$	1.7		$	10.1		$	10.5
Average interest-earning assets		4,006			4,159			4,140			3,869			4,150
End-of-period interest-earning assets		4,429			4,100			4,429			3,994			4,100

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, securities held to maturity, and trading assets.

(7)	Includes investment fund.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)						(B)						(C)
	30JUN10						31MAR10						30JUN09						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	204			5.0		$	187			5.0		$	139			3.8		$	17		$	65
BRAZIL		1,473			36.2			1,526			40.7			1,516			41.7			(53	)		(42	)
CHILE		279			6.8			281			7.5			99			2.7			(3	)		180
COLOMBIA		496			12.2			337			9.0			439			12.1			159			57
COSTA RICA		133			3.3			107			2.8			137			3.8			27			(4	)
DOMINICAN REPUBLIC		80			2.0			75			2.0			24			0.7			5			56
ECUADOR		109			2.7			93			2.5			70			1.9			16			40
EL SALVADOR		34			0.8			48			1.3			122			3.4			(15	)		(88	)
FRANCE		22			0.5			0			0.0			0			0.0			22			22
GUATEMALA		91			2.2			71			1.9			127			3.5			20			(36	)
HONDURAS		28			0.7			27			0.7			21			0.6			1			7
JAMAICA		18			0.4			32			0.9			23			0.6			(14	)		(5	)
MEXICO		387			9.5			390			10.4			442			12.2			(3	)		(55	)
NETHERLANDS		150			3.7			0			0.0			0			0.0			150			150
PANAMA		121			3.0			97			2.6			185			5.1			24			(64	)
PERU		244			6.0			245			6.5			64			1.8			(0	)		180
TRINIDAD & TOBAGO		39			0.9			56			1.5			59			1.6			(18	)		(20	)
UNITED STATES		19			0.5			0			0.0			36			1.0			19			(17	)
URUGUAY		3			0.1			36			1.0			74			2.0			(33	)		(70	)
VENEZUELA		84			2.1			94			2.5			8			0.2			(10	)		76
OTHER		58			1.4			51			1.4			48			1.3			6			10

TOTAL CREDIT PORTFOLIO (1)	$	4,071			100	%	$	3,753			100	%	$	3,631			100	%	$	318		$	440

UNEARNED INCOME AND COMMISSION (2)		(4	)					(3	)					(4	)					(1	)		0

TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	4,067					$	3,750					$	3,627					$	317		$	440

(1)	Includes book value of loans, fair value of investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks, credit default swap 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)						(B)						(C)
	30JUN10						31MAR10						30JUN09						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	204			5.8		$	187			5.8		$	139			4.9		$	17		$	65
BRAZIL		1,346			37.9			1,399			43.2			1,354			47.4			(53	)		(8	)
CHILE		251			7.1			254			7.8			73			2.5			(3	)		178
COLOMBIA		342			9.6			194			6.0			251			8.8			147			91
COSTA RICA		133			3.8			107			3.3			119			4.2			27			14
DOMINICAN REPUBLIC		75			2.1			70			2.2			16			0.6			5			59
ECUADOR		109			3.1			93			2.9			70			2.4			16			40
EL SALVADOR		18			0.5			32			1.0			67			2.3			(14	)		(49	)
FRANCE		22			0.6			0			0.0			0			0.0			22			22
GUATEMALA		80			2.2			60			1.8			85			3.0			20			(5	)
HONDURAS		28			0.8			27			0.8			21			0.7			1			7
JAMAICA		18			0.5			32			1.0			23			0.8			(14	)		(5	)
MEXICO		329			9.3			332			10.2			345			12.1			(3	)		(16	)
NETHERLANDS		150			4.2			0			0.0			0			0.0			150			150
PANAMA		77			2.2			53			1.6			91			3.2			24			(14	)
PERU		213			6.0			214			6.6			35			1.2			(1	)		178
TRINIDAD & TOBAGO		39			1.1			56			1.7			59			2.1			(18	)		(20	)
UNITED STATES		19			0.5			0			0.0			26			0.9			19			(7	)
URUGUAY		3			0.1			36			1.1			74			2.6			(33	)		(70	)
VENEZUELA		84			2.4			94			2.9			8			0.3			(10	)		76
OTHER		7			0.2			1			0.0			1			0.0			6			7

TOTAL COMMERCIAL PORTFOLIO (1)	$	3,547			100	%	$	3,241			100	%	$	2,856			100	%	$	306		$	691

UNEARNED INCOME AND COMMISSION (2)		(4	)					(3	)					(4	)					(1	)		0

TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	3,543					$	3,238					$	2,852					$	305		$	692

(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

TREASURY PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,						Change in Amount
	(A)		(B)		(C)
COUNTRY	30JUN10		31MAR10		30JUN09		(A) - (B)		(A) - (C)

BRAZIL	$	127	$	128	$	162		0	$	(34	)
CHILE		28		28		26		0		2
COLOMBIA		154		142		188		12		(33	)
COSTA RICA		0		0		18		0		(18	)
DOMINICAN REPUBLIC		5		5		8		0		(3	)
EL SALVADOR		16		16		55		0		(39	)
GUATEMALA		11		11		43		0		(31	)
MEXICO		58		58		97		0		(39	)
PANAMA		44		43		94		0		(50	)
PERU		31		30		29		0		2
OTHER		50		50		57		0		(7	)

TOTAL TREASURY PORTOFOLIO (1)	$	524	$	511	$	775	$	12	$	(252	)

(1)	Includes securities available for sale and held to maturity, trading assets and contingent assets, which consist of credit default swap.

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

	QUARTERLY INFORMATION						Change in Amount
	(A)		(B)		(C)
COUNTRY	2QTR10		1QTR10		2QTR09		(A) - (B)			(A) - (C)

ARGENTINA	$	60	$	132	$	77	$	(72	)	$	(17	)
BRAZIL		370		280		291		90			79
CHILE		20		52		65		(32	)		(45	)
COLOMBIA		264		78		10		186			254
COSTA RICA		85		106		95		(21	)		(9	)
DOMINICAN REPUBLIC		39		92		1		(53	)		38
ECUADOR		70		120		67		(50	)		3
EL SALVADOR		11		5		13		7			(1	)
FRANCE		22		0		0		22			22
GUATEMALA		46		33		48		13			(2	)
HONDURAS		19		20		20		(1	)		(1	)
JAMAICA		37		50		22		(13	)		16
MEXICO		66		27		89		39			(23	)
NETHERLANDS		150		0		0		150			150
PANAMA		61		35		42		26			18
PERU		107		109		53		(1	)		55
TRINIDAD & TOBAGO		42		36		60		6			(18	)
UNITED STATES		19		0		10		19			9
URUGUAY		0		2		34		(2	)		(34	)
VENEZUELA		84		77		3		7			80
OTHER		1		1		27		0			(26	)

TOTAL CREDIT DISBURSED (1)	$	1,572	$	1,254	$	1,025	$	318		$	547

(1)	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 swap and credit commitments).