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
Short
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.
|
October
13, 2010
|
||
|
FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
|
||
|
By:
/s/ Pedro Toll
|
||
|
Name:
Pedro Toll
|
||
|
Title:
General
Manager
|
||
BLADEX
REPORTS THIRD QUARTER 2010 NET INCOME OF $15.0 MILLION; $0.41 PER
SHARE.
PANAMA CITY, October 12, 2010
– Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the third quarter ended September 30,
2010.
Third
Quarter Business Highlights
|
|
·
|
Net
Income (*)
for the third quarter 2010 amounted to $15.0 million, compared to $1.7
million in the second quarter 2010, and $15.8 million in the third quarter
2009. 93% of the Bank’s Net Income was the result of the
Commercial Division’s strong quarterly performance, contributing Net
Income of $13.9
million.
|
|
|
·
|
During
the quarter, the Commercial Portfolio grew $607 million, or 17%, to reach
a balance of approximately $4.2 billion. Year-on-year, the
Commercial Portfolio has grown $1.3 billion, or
44%.
|
|
|
·
|
Net
interest income in the third quarter 2010 was $20.0 million, a 16%
increase over the previous period. Fees and commissions
amounted to $2.0 million, a decrease of $0.8 million compared to the
previous quarter. On a year-to-date-basis, fees and commissions
have grown 66%, amounting to $7.2
million.
|
|
|
·
|
Net
interest margin stood at 1.73% in the third quarter 2010, compared to
1.67% in the previous quarter, and 1.76% in the third quarter
2009.
|
|
|
·
|
With
the Bank´s portfolio growth driven mainly by demand from established
banking and corporate clients, portfolio quality continued to improve, as
non-accrual loans declined 27% compared to the previous quarter to $33
million.
|
|
|
·
|
The
Asset Management Unit reported Net Income of $2.6 million in the third
quarter 2010, compared to a Net Loss of
$9.4 million in the second quarter 2010, and Net Income of $2.8 million in
the third quarter 2009. The gain in the third quarter
2010 was mainly related to gains on investments in the Investment
Fund.
|
|
|
·
|
The
Bank’s Tier 1 capital ratio as of September 30, 2010 was 20.6%, compared
to 23.4% as of June 30, 2010, and 24.6% as of September 30, 2009, while
the leverage ratio as of these dates was 7.1x, 6.6x, and 5.6x,
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:
"Solid as this quarter's results were, Bladex is particularly encouraged
by the underlying trends, which support the Bank’s overriding objective of
increasing profitability through balance sheet growth and higher income levels
in the core business.
The
Commercial Portfolio’s 17% growth in the quarter and 44% growth over the last
year is a reflection of both the strength of the Region's trade flows recovery,
and crucially, Bladex's ability to leverage an increasing share of this business
across a variety of industries throughout the Region. During the
third quarter, Bladex experienced a 50% expansion of loan disbursements in both
the corporate and financial institution segments, with total disbursements
exceeding $1.7 billion. Loan disbursements in Bladex’s new middle
market corporate segment, though still small in absolute terms, grew at an
impressive 76% to $109 million. Due to rapid portfolio growth mainly
fueled by segments and companies familiar to Bladex, credit quality has remained
sound as the portfolio expands. Bladex firmly believes that
supporting this kind of quality growth is the best manner in which to deploy the
Bank’s capital.
On the
liability side of the business, the 23% quarterly growth in deposit balances
drove the total to $1.9 billion, the highest level on record, and 52% higher
than a year ago, providing the Bank with an attractively priced funding source,
which has largely offset thinner lending spreads that have come with improving
risk levels.
While
down in the third quarter, commission income is 66% above the total of a year
ago, a growing trend that Bladex expects to continue, fueled by the Bank’s
expanding client base.
Results
in the Asset Management Unit have improved, and are now largely in-line with the
historical track record since the Unit initiated operations 4 years ago. As
explained below, the Unit has taken measures to reduce the volatility of Bladex
Capital Growth Fund. Bladex remains committed to the Asset Management business
in light of what it views as the Bank’s competitive
advantages.
As a
combined result of these trends, the $15.0 million in quarterly Net Income was
of high quality and well-diversified in nature, reflective of the composition
that the Bank seeks as it steadily expands its business. The Bank's increased
dividend announced today is meant to allow shareholders to share in Bladex’s
growth as the Bank continues executing its strategy.”, Mr. Rivera
concluded.
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:
|
9M10
|
9M09
|
3Q10
|
2Q10
|
3Q09
|
||||||||||||||||
|
Net
Interest Income
|
$ | 53.5 | $ | 49.6 | $ | 20.0 | $ | 17.2 | $ | 17.4 | ||||||||||
|
Net
Operating Income (Loss) by Business Segment:
|
||||||||||||||||||||
|
Commercial
Division
|
$ | 37.5 | $ | 38.4 | $ | 14.0 | $ | 13.0 | $ | 13.0 | ||||||||||
|
Treasury
Division
|
$ | (7.1 | ) | $ | 6.6 | $ | (1.5 | ) | $ | (2.8 | ) | $ | 1.2 | |||||||
|
Asset
Management Unit
|
$ | (10.3 | ) | $ | 14.4 | $ | 3.1 | $ | (11.8 | ) | $ | 3.3 | ||||||||
|
Net
Operating Income
|
$ | 20.1 | $ | 59.3 | $ | 15.6 | $ | (1.6 | ) | $ | 17.5 | |||||||||
|
Net
income
|
$ | 24.6 | $ | 43.8 | $ | 15.5 | $ | (0.7 | ) | $ | 16.3 | |||||||||
|
Net
income (loss) attributable to the redeemable noncontrolling
interest
|
$ | (2.3 | ) | $ | 0.9 | $ | 0.5 | $ | (2.4 | ) | $ | 0.5 | ||||||||
|
Net
Income attributable to Bladex
|
$ | 26.9 | $ | 42.9 | $ | 15.0 | $ | 1.7 | $ | 15.8 | ||||||||||
|
Net
Income per Share (1)
|
$ | 0.73 | $ | 1.18 | $ | 0.41 | $ | 0.05 | $ | 0.43 | ||||||||||
|
Book
Value per common share (period end)
|
$ | 18.77 | $ | 18.23 | $ | 18.77 | $ | 18.35 | $ | 18.23 | ||||||||||
|
Return
on Average Equity (“ROE”)
|
5.3 | % | 9.1 | % | 8.7 | % | 1.0 | % | 9.5 | % | ||||||||||
|
Operating
Return on Average Equity ("Operating ROE")
(2)
|
3.9 | % | 12.6 | % | 9.0 | % | -1.0 | % | 10.6 | % | ||||||||||
|
Return
on Average Assets (“ROA”)
|
0.9 | % | 1.4 | % | 1.3 | % | 0.2 | % | 1.6 | % | ||||||||||
|
Net
Interest Margin
|
1.70 | % | 1.63 | % | 1.73 | % | 1.67 | % | 1.76 | % | ||||||||||
|
Efficiency
Ratio (3)
|
60 | % | 32 | % | 40 | % | 120 | % | 33 | % | ||||||||||
|
Tier
1 Capital (4)
|
$ | 690 | $ | 671 | $ | 690 | $ | 680 | $ | 671 | ||||||||||
|
Total
Capital (5)
|
$ | 732 | $ | 706 | $ | 732 | $ | 716 | $ | 706 | ||||||||||
|
Risk-Weighted
Assets
|
$ | 3,352 | $ | 2,732 | $ | 3,352 | $ | 2,899 | $ | 2,732 | ||||||||||
|
Tier
1 Capital Ratio (4)
|
20.6 | % | 24.6 | % | 20.6 | % | 23.4 | % | 24.6 | % | ||||||||||
|
Total
Capital Ratio (5)
|
21.8 | % | 25.8 | % | 21.8 | % | 24.7 | % | 25.8 | % | ||||||||||
|
Stockholders’
Equity
|
$ | 689 | $ | 666 | $ | 689 | $ | 673 | $ | 666 | ||||||||||
|
Stockholders’
Equity to Total Assets
|
14.2 | % | 17.9 | % | 14.2 | % | 15.2 | % | 17.9 | % | ||||||||||
|
Other
Comprehensive Income Account ("OCI")
|
$ | (5 | ) | $ | (9 | ) | $ | (5 | ) | $ | (11 | ) | $ | (9 | ) | |||||
|
Leverage
(times) (6)
|
7.1 | 5.6 | 7.1 | 6.6 | 5.6 | |||||||||||||||
|
Liquid
Assets / Total Assets (7)
|
6.9 | % | 11.6 | % | 6.9 | % | 13.5 | % | 11.6 | % | ||||||||||
|
Liquid
Assets / Total Deposits
|
18.1 | % | 35.3 | % | 18.1 | % | 39.4 | % | 35.3 | % | ||||||||||
|
Non-Accruing
Loans to Total Loans, net
|
0.9 | % | 1.4 | % | 0.9 | % | 1.5 | % | 1.4 | % | ||||||||||
|
Allowance
for Credit Losses to Commercial Portfolio
|
2.3 | % | 3.5 | % | 2.3 | % | 2.7 | % | 3.5 | % | ||||||||||
|
Total
Assets
|
$ | 4,861 | $ | 3,723 | $ | 4,861 | $ | 4,412 | $ | 3,723 |
Footnotes:
|
(1)
|
Net
Income per Share calculations are based on the average number of shares
outstanding during each period.
|
|
(2)
|
Operating
ROE: Annualized net operating income divided by average stockholders’
equity.
|
|
(3)
|
Efficiency
ratio refers to consolidated operating expenses as a percentage of net
operating revenues.
|
|
(4)
|
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.
|
|
(5)
|
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.
|
|
(6)
|
Leverage
corresponds to assets divided by stockholders’
equity.
|
|
(7)
|
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.
|
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 Unit, 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 September 30, 2010, Bladex had disbursed
accumulated credits of approximately $167 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Wednesday,
October 13, 2010 at 12:30 p.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 December 13,
2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
44126421. 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) 406-3694
E-mail
address: bladex@i-advize.com