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.

February 16, 2011
 
FOREIGN TRADE BANK OF LATIN AMERICA, INC.
   
 
By: /s/ Pedro Toll
   
 
Name: Pedro Toll
 
Title:   General Manager

 
 

 
 
BLADEX REPORTS FULL YEAR NET INCOME OF $42.2 MILLION; $1.15 PER SHARE
FOURTH QUARTER NET INCOME OF $15.5 MILLION; $0.42 PER SHARE

PANAMA CITY, February 16, 2011 – Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”) announced today its results for the fourth quarter and full-year ended December 31, 2010.       

Quarterly and Annual Business Highlights
 
·
Fourth quarter 2010 Net Income (*) amounted to $15.5 million, an increase of $0.5 million, or 4%, compared to third quarter 2010, and an increase of $3.6 million, or 30%, compared to fourth quarter 2009.
 
 
·
Net income in 2010 amounted to $42.2 million compared to $54.9 million in 2009, as the strong performance of the Commercial Division was mostly offset by second quarter losses in the Asset Management Unit.
 
 
·
The Commercial Portfolio grew $292 million, or 7% versus the previous quarter and $1.3 billion, or 43%, year-on-year to reach balances of $4.4 billion. Fourth quarter 2010 credit disbursements amounted to $2.2 billion, compared to the $2.3 billion in the third quarter.  2010 disbursements reached $7.4 billion, up $3.2 billion, or 79%, from 2009.
 
 
 
·
On a year-on-year-basis, fees and commissions grew 53%, amounting to $10.3 million.
 
( *) Net income or loss attributable to Bladex (“Net Income”, or “Net Loss”).
 
 
 

 
 
 
 
·
Net interest income in the fourth quarter 2010 was $21.0 million, a $1.0 million, or 5%, increase over the previous period and a $5.8 million, or 38% increase over the fourth quarter 2009.  Net interest income in 2010 amounted to $74.5 million, a 15% increase from 2009.  Net interest margin increased to 1.70% in 2010 from 1.62% in 2009.  Average funding costs declined 112bps compared to 2009.  
 
 
 
·
The Commercial Division’s Net Income for 2010 increased $22.0 million (+63%) to $56.8 million versus $34.8 million in 2009, mainly as a result of portfolio growth and improved credit quality.  The Division’s Net Income in the fourth quarter 2010 totaled $14.9 million, a 7% increase over the previous quarter, and a 25% increase over the fourth quarter 2009.
 
 
 
2

 
 
 
 
·
The Treasury Division reported a 2010 Net Loss of $4.9 million, compared to Net Income of $6.1 million in 2009, driven by losses from trading portfolio valuations, as increases in securities valuations were offset by the diminished valuations of associated trading derivatives used to hedge interest rate risk.
 
 
·
The Asset Management Unit reported a Net Loss of $9.7 million in 2010, compared to Net Income of $14.1 million in 2009 as the result of trading losses in Bladex Capital Growth Fund (BCGF, the Investment Fund) incurred mostly during the second quarter.  The Bank will gradually reduce its exposure to BCGF to its original $100 million investment, freeing close to $50 million to be used to fund more fee generating activities.
 
 
·
Portfolio quality improved year-on-year as credit risks abated throughout the Region, and as non-accrual loans declined to $29.0 million in the fourth quarter 2010, down from $32.9 million in the previous quarter, and from $50.5 million in the fourth quarter of 2009.
 
 
·
Scale efficiencies improved in 2010, with expenses growing $3.9 million, or 10% year-on-year, to $42.1 million, well below the commercial portfolio’s 43% growth, as the Bank invested in commercial and risk management resources.
 
 
·
The Bank’s equity consists entirely of common stock equity.  The Bank’s Tier 1 capital ratio as of December 31, 2010 stood at 20.5%, compared to 20.6% as of September 30, 2010, and 25.8% as of December 31, 2009, while the leverage ratio as of these dates was 7.3x, 7.1x, and 5.7x, respectively.
 
CEO's Comments
Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the Bank’s results: “In many ways, Bladex's solid performance during the fourth quarter was a proxy for the sustained improvement of our business fundamentals during 2010, which brought about a steady commercial portfolio growth of 43%, while fees increased by 53%, deposits rose by 45%, net interest margins widened and our network of representative offices expanded. Concurrently, portfolio quality continued to improve, as non-accrual loans fell to just $29.0 million, out of a total credit portfolio of $4.9 billion. Expenses involved in fueling these improvements rose during the year by a modest 10%, while the Bank maintained a Tier 1 ratio in excess of 20%, and liquidity remained comfortably above $400 million, or 8% of assets. 

 
3

 

The $42.2 million consolidated Net Income for the 2010 was not higher principally because the Asset Management's Unit had its first down full-year since we created the Unit in 2005. The Bank's $15.5 million net income for the fourth quarter, however, demonstrates that have achieved our goal of generating strong results independently of the performance of the Division's BCGF fund. As we continue to strengthen the Division's fee-income generation, we plan to gradually re-deploy our nearly $50 million of accumulated earnings in the BCGF over the year 2011 to pursue other opportunities arising in our market.
 
2010 was the first of a two year program designed to substantially increase the Bank's footprint and strengthen its franchise based on rapidly growing trade flows in Latin America, a region where we enjoy significant competitive advantages in terms of market knowledge, support from our government shareholders, stellar reputation, and timely, tailored customer service. 2011 will be another year of growth, as we continue expanding our penetration of the corporate markets, developing new products, supporting the rapidly growing intra regional trade, expanding our delivery network, and continuing to serve as the region's premier bank-to-banks. As was the case with our recent common dividend increase, we look forward to continuing to share our success with our shareholders." 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 reversals (provisions) for loan and off-balance sheet credit losses, and any impairment on assets.

 
4

 
 
(US$ million)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Commercial Division:
                                   
Net interest income
  $ 71.6     $ 66.2     $ 20.3     $ 19.1     $ 15.5  
Non-interest operating income (1)
    10.1       6.9       3.1       2.1       2.1  
Net operating revenues (2)
    81.7       73.1       23.4       21.2       17.6  
Operating expenses
    (29.9 )     (23.4 )     (9.1 )     (7.2 )     (6.3 )
Net operating income (3)
    51.8       49.7       14.3       14.0       11.3  
Reversal (provision) for loan and off-balance sheet credit losses, net
    4.8       (14.8 )     0.6       (0.1 )     0.6  
Recoveries, net of impairment of assets
    0.2       (0.1 )     0.0       0.0       0.0  
Net Income
  $ 56.8     $ 34.8     $ 14.9     $ 13.9     $ 11.9  
 
The Commercial Division’s portfolio growth continued in the fourth quarter, driven by solid demand across all segments, reaching $4.4 billion in period-end balances, a 7% increase from the previous quarter, and a 43% increase from the fourth quarter 2009.
 
4Q10 vs. 3Q10
Net Income in the fourth quarter 2010 amounted to $14.9 million, compared to $13.9 million in the third quarter 2010.  The $1.0 million quarterly increase in Net Income was the result of the combined effects of:  (i) a $1.2 million increase in net interest income due to higher average loan portfolio balances (+14%), mainly driven by greater demand from large corporations, (ii) a $1.0 million increase in non-interest operating income, mostly attributable to increased commission income from loans and letter of credit transactions, (iii) a $1.9 million increase in operating expenses as a result of the expansion in operations, principally at the new representative offices, and (iv) a $0.7 million variation in reversals (provision) for credit losses, mainly due to the Region’s improved risk profile.
 
4Q10 vs. 4Q09
Net Income increased $3.0 million compared to the fourth quarter 2009, mainly due to a 31% increase in net interest income, and a 48% increase in non-interest income from fees and commissions, both partially offset by increased operating expenses related to the deployment of a larger sales force and the establishment of new representative offices.  The effects of a greater average portfolio base on net interest income were partially offset by a year-on-year decline in market interest rates.
 
2010 vs. 2009
The Division’s Net Income amounted to $56.8 million, compared to $34.8 million in 2009, an annual increase of $22.0 million as a result of: (i) a $19.6 million positive variation in reversals (provisions) for credit losses, due to improved risk profile and credit quality, (ii) a $5.4 million increase in net interest income mostly attributable to the income effects of higher average loan portfolio balances (+27%), (iii) a $3.2 million increase in commissions and fees from loans and letters of credits, and (iv) a $6.5 million increase in operating expenses as the Division expanded its sales force and local presence in various markets. 

 
5

 
 
The Commercial Portfolio includes the book value of loans, acceptances, and contingencies (including letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments).  The Bank’s Commercial Portfolio balance reached $4.4 billion as of December 31, 2010, a 7% increase from the balance as of September 30, 2010, and 43% above the balance as of December 31, 2009. The annual increase was largely attributable to increased demand from the Bank´s established client base of large corporations and financial institutions, while the business expansion into the middle market segment continued.  During the fourth quarter 2010, the Bank disbursed $1.8 billion in new loans, 3% more than the third quarter 2010, and an increase of approximately $1.0 billion, (+112%), compared to the same period in the previous year. 
 
 
On an average basis, the Commercial Portfolio increased 14% in the fourth quarter 2010, compared to the previous quarter, and 48% from the fourth quarter 2009.
 
The Commercial Portfolio continues to be mainly short-term and trade-related in nature.  $3.2 billion, or 72%, of the commercial portfolio matures within one year. Trade financing operations represent 59% of the portfolio, while the remaining balance consists primarily of lending to banks and corporations.  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).  

 
6

 
 
(US$ million)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Treasury Division:
                                   
Net interest income
  $ 3.2     $ 2.0     $ 1.1     $ 1.1     $ 0.5  
Non-interest operating income (loss) (1)
    (0.4 )     12.0       2.4       (0.4 )     0.7  
Net operating revenues (2)
    2.8       14.0       3.5       0.7       1.2  
Operating expenses
    (7.7 )     (7.9 )     (1.3 )     (2.2 )     (1.7 )
Net operating income (loss) (3, 12)
    (4.9 )     6.1       2.2       (1.5 )     (0.5 )
Net Income (Loss)
  $ (4.9 )   $ 6.1     $ 2.2     $ (1.5 )   $ (0.5 )
 
Liquid assets (8) stood at $421 million as of December 31, 2010, compared to $336 million as of September 30, 2010, and $402 million as of December 31, 2009.

The Trading Portfolio as of December 31, 2010 amounted to $50 million, compared to $51 million as of September 30, 2010, and $50 million as of December 31, 2009.

The Securities Available for Sale Portfolio as of December 31, 2010 decreased to $353 million, compared to $527 million as of September 30, 2010, and $457 million as of December 31, 2009.  The reduction during the quarter was due to the sale of securities for a nominal amount of $135 million, which generated gains on sales of $2.3 million.  The Available for Sale Portfolio as of December 31, 2010 consisted entirely of readily quoted Latin American securities, 81% 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 ($6.4) million in the fourth quarter 2010, compared to ($5.5) million in the third quarter 2010 and ($6.2) million in the same period 2009, as lower market valuations of the Securities Portfolio were mostly offset by higher valuations of the interest rate hedging instruments associated with the securities.

Funding costs continued to improve as the weighted average funding cost in the fourth quarter 2010 was 1.17%, a decrease of 5 bps, or 4%, compared to the third quarter 2010, and a decrease of 58 bps, or 33%, compared to the fourth quarter 2009. Period-end deposit balances stood at $1.8 billion, a decrease of 2% versus the previous quarter, and a 45% year-on-year increase. Borrowings and securities sold under repurchase agreements increased 13% from the third quarter 2010 to $2.4 billion, a 36% year-on-year increase. 

 
7

 

 
4Q10 vs. 3Q10
In the fourth quarter 2010, the Treasury Division posted Net Income of $2.2 million, compared to a Net Loss of $1.5 million in the third quarter 2010.  Fourth quarter net operating revenues were $2.8 million higher compared to the third quarter, mainly due to higher non-interest operating income, mostly attributable to gains on the sale of securities available for sale.

4Q10 vs. 4Q09
The Treasury Division posted Net Income of $2.2 million in the fourth quarter 2010, compared to Net Loss of $0.5 million in the fourth quarter 2009, due to a $1.7 million increase in non-interest operating income mostly attributable to gains on the sale of securities available for sale, a $0.6 million increase in net interest income as a result of lower interest expense, and a $0.4 million decrease in operating expenses.

2010 vs. 2009
The Treasury Division reported a Net Loss of $4.9 million in 2010, compared to a Net Income of $6.1 million in 2009.  The $11.0 million decrease in this period was primarily driven by trading portfolio valuations, as increases in securities valuations were more than offset by the diminished valuations of associated trading derivatives.

ASSET MANAGEMENT UNIT
The Asset Management Unit incorporates the Bank’s asset management activities. The Unit’s Investment Fund follows primarily a Latin America macro strategy, utilizing a combination of products (foreign exchange, equity indices, interest rate swaps, and sovereign credit products) to establish long and short positions in the markets.  Bladex considers its asset management subsidiary as part of its long-term strategy to complement the Bank´s long standing relationships with institutional investors throughout the world.
 
The Unit’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.

 
8

 
 
(US$ million)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Asset Management Unit:
                                   
Net interest loss
  $ (0.3 )   $ (3.4 )   $ (0.4 )   $ (0.2 )   $ (0.8 )
Non-interest operating income (loss) (1)
    (7.3 )     25.4       (0.1 )     4.3       3.5  
Net operating revenues (2)
    (7.6 )     22.0       (0.5 )     4.1       2.7  
Operating expenses
    (4.5 )     (6.8 )     (1.3 )     (1.0 )     (1.9 )
Net operating income (loss) (3)
    (12.1 )     15.2       (1.8 )     3.1       0.8  
Net income (loss)
    (12.1 )     15.2       (1.8 )     3.1       0.8  
Net income (loss) attributable to the redeemable noncontrolling interest
    (2.4 )     1.1       (0.2 )     0.5       0.2  
Net Income (Loss)
  $ (9.7 )   $ 14.1     $ (1.6 )   $ 2.6     $ 0.6  
 
4Q10 vs. 3Q10
The Asset Management Unit recorded a Net Loss in the fourth quarter 2010 of $1.6 million, compared to Net Income of $2.6 million in the third quarter 2010. The $4.2 million quarterly decrease was mainly due to a $4.4 million decrease in non-interest operating income attributable to net losses from trading activities in the Investment Fund, partially offset by net income attributable to the redeemable non-controlling interest.

4Q10 vs. 4Q09
The Unit posted a Net Loss of $1.6 million in the fourth quarter 2010, compared to $0.6 million in Net Income in the fourth quarter 2009, as a result of lower gains from investments in the Investment Fund.

2010 vs. 2009
In 2010 the Unit posted a Net Loss of $9.7 million, compared to Net Income of $14.1 million in 2009.  The $23.8 million loss year-over-year variance was due to the combined effects of:  (i) a $32.7 million decrease in non-interest operating income attributable to losses from investments in the Investment Fund, (ii) a $3.1 million increase in net interest income, (iii) a $2.3 million decrease in operating expenses as a result of lower provisions for variable compensation tied to the performance of the Investment Fund.

As of December 31, 2010, the Investment Fund’s asset value totaled $167 million, compared to $181 million as of September 30, 2010, and $198 million as of December 31, 2009.  For the same dates, Bladex’s ownership of the Bladex Offshore Feeder Fund was 88.67%, 85.82% and 82.34%, respectively, with remaining balances owned by third party investors.
During the fourth quarter 2010, the Bank redeemed $6.0 million from its investment in the Fund. The Bank will gradually reduce its exposure to BCGF to its original $100 million investment, freeing close to $50 million to be used to fund more fee generating activities.

 
9

 

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)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Net Interest Income
  $ 74.5     $ 64.8     $ 21.0     $ 20.0     $ 15.2  
Net Operating Income (Loss) by Business Segment:
                                       
Commercial Division
  $ 51.8     $ 49.7     $ 14.3     $ 14.0     $ 11.3  
Treasury Division
  $ (4.9 )   $ 6.1     $ 2.2     $ (1.5 )   $ (0.5 )
Asset Management Unit
  $ (12.1 )   $ 15.2     $ (1.8 )   $ 3.1     $ 0.8  
Net Operating Income
  $ 34.7     $ 70.9     $ 14.7     $ 15.6     $ 11.6  
Net income
  $ 39.7     $ 56.0     $ 15.3     $ 15.5     $ 12.1  
Net income (loss) attributable to the redeemable noncontrolling interest
  $ (2.4 )   $ 1.1     $ (0.2 )   $ 0.5     $ 0.2  
Net Income attributable to Bladex
  $ 42.2     $ 54.9     $ 15.5     $ 15.0     $ 11.9  
                                         
Net Income per Share (5)
  $ 1.15     $ 1.50     $ 0.42     $ 0.41     $ 0.33  
Book Value per common share (period end)
  $ 18.99     $ 18.49     $ 18.99     $ 18.77     $ 18.49  
Return on Average Equity (“ROE”)
    6.2 %     8.6 %     8.9 %     8.7 %     7.1 %
Operating Return on Average Equity ("Operating ROE") (6)
    5.1 %     11.1 %     8.4 %     9.0 %     6.9 %
Return on Average Assets (“ROA”)
    1.0 %     1.4 %     1.3 %     1.3 %     1.3 %
Net Interest Margin
    1.70 %     1.62 %     1.70 %     1.73 %     1.60 %
Efficiency Ratio (7)
    55 %     35 %     44 %     40 %     46 %
                                         
Liquid Assets / Total Assets (8)
    8.2 %     10.4 %     8.2 %     6.9 %     10.4 %
Liquid Assets / Total Deposits
    23.1 %     32.0 %     23.1 %     18.1 %     32.0 %
                                         
Non-Accruing Loans to Total Loans, net
    0.7 %     1.8 %     0.7 %     0.9 %     1.8 %
Allowance for Credit Losses to Commercial Portfolio
    2.1 %     3.2 %     2.1 %     2.3 %     3.2 %
                                         
Total Assets
  $ 5,100     $ 3,879     $ 5,100     $ 4,861     $ 3,879  

NET INTEREST INCOME AND MARGINS
 
 
2010
   
2009
     
4Q10
     
3Q10
     
4Q09
 
Net Interest Income (Loss)
                                   
Commercial Division
  $ 71.6     $ 66.2     $ 20.3     $ 19.1     $ 15.5  
Treasury Division
    3.2       2.0       1.1       1.1       0.5  
Asset Management Unit
    (0.3 )     (3.4 )     (0.4 )     (0.2 )     (0.8 )
Consolidated
  $ 74.5     $ 64.8     $ 21.0     $ 20.0     $ 15.2  
                                         
Net Interest Margin*
    1.70 %     1.62 %     1.70 %     1.73 %     1.60 %
   
* Net interest income divided by average balance of interest-earning assets. 
 
 
Net interest margin stood at 1.70% in the fourth quarter 2010, compared to 1.73% in the third quarter 2010, and 1.60% in the fourth quarter 2009. 

 
10

 

4Q10 vs. 3Q10
In the fourth quarter 2010, net interest income amounted to $21.0 million, an increase of $1.0 million, or 5%, compared to $20.0 million in the third quarter 2010.  The quarterly increase reflects mostly:
(i)
Higher average interest earning assets balances, consisting primarily of average loan portfolio balances, which increased $470 million, or 14%, compared to the third quarter 2010, which resulted in an overall increase of $3.0 million in interest income, partially offset by a $0.4 million increase in interest expense due to higher average balances in deposits, borrowings and placements.
(ii)
Lower average interest rates for the Bank’s loans and liabilities, which resulted in a $1.6 million decrease in net interest income.  The average yield earned on interest-earning assets decreased 6 bps to 2.64% compared to the third quarter 2010, mainly attributable to average yield decreases in loans, partially offset by the 5 bps decrease in average yield paid on interest-bearing liabilities to 1.17%.

4Q10 vs. 4Q09
Net interest income increased $5.8 million, or 38%, when compared to the fourth quarter 2009.  This increase primarily reflects: 
(i)
Higher average interest earning assets balances, mainly average loan portfolio balances, which increased $1.3 billion, or 48%, compared to the fourth quarter 2009, resulted in an overall increase of $9.2 million in interest income.  Average volumes of interest bearing liabilities increased $1.1 billion, or 39%, resulting in a $1.5 million decrease in net interest income.  
(ii)
A $1.9 million decrease in net interest income as result of the combined effects of a 29 bps reduction in average yield earned on assets, partially offset by a 58 bps decrease in average yield paid on interest-bearing liabilities, both mostly attributable to lower interbank market rates.     

2010 vs. 2009
Yearly net interest income amounted to $74.5 million in 2010, compared to $64.8 million in 2009.  The $9.7 million, or 15%, increase of net interest income during the annual period primarily reflects:
(i)
Higher average interest earning assets balances, primarily average loan portfolio balances, which resulted in a $18.2 million overall increase in interest income, partially offset by a $2.1 million increase in interest expense associated with an increase in average interest bearing liability balances.
(ii)
Lower average interest rates on the Bank’s assets and liabilities, which resulted in a $6.3 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 112 bps to 1.26% during 2010, while the average yield on interest-earning assets decreased 81 bps to 2.69% during the same period. Both effects were mostly attributable to lower interbank market rates. 

Net interest margin improved to 1.70% in 2010, compared to 1.62% in 2009.

 
11

 

FEES AND COMMISSIONS
 
(US$ million)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Letters of credit
  $ 8.3     $ 5.0     $ 2.0     $ 1.7     $ 1.8  
Guarantees
    0.2       1.0       0.1       0.0       0.1  
Loans
    1.2       0.2       1.0       0.1       0.0  
Third party investor (BAM)
    0.5       0.3       0.1       0.1       0.3  
Other*
    0.1       0.2       0.0       0.1       0.1  
Fees and Commissions, net
  $ 10.3     $ 6.7     $ 3.1     $ 2.0     $ 2.4  
* Net of commission expenses

Fees and commissions amounted to $3.1 million in the fourth quarter 2010, $1.1 million over the previous quarter, and $0.7 million higher than fourth quarter 2009.  These quarterly increases were mostly the result of higher commissions from loans and letter of credit transactions.  

During 2010, commission income amounted to $10.3 million, compared $6.7 million in 2009, mainly as a result of $3.3 million increase in commission income from the letter of credit business as average balances increased along with the Bank’s expanding footprint.

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES
 
(In US$ million)
 
31-Dec-09
   
31-Mar-10
   
30-Jun-10
   
30-Sep-10
   
31-Dec-10
 
Allowance for Loan Losses:
                             
Balance at beginning of the period
  $ 89.9     $ 73.8     $ 73.9     $ 81.3     $ 68.7  
Provisions (reversals)
    (16.1 )     0.1       8.7       (12.6 )     12.8  
Charge-offs, net of recoveries
    (0.0 )     0.0       (1.4 )     (0.0 )     (2.9 )
End of period balance
  $ 73.8     $ 73.9     $ 81.3     $ 68.7     $ 78.6  
                                         
Reserve for Losses on Off-balance Sheet Credit Risk:
                                       
Balance at beginning of the period
  $ 11.8     $ 27.3     $ 23.6     $ 14.0     $ 26.7  
Provisions (reversals)
    15.5       (3.7 )     (9.6 )     12.7       (13.3 )
End of period balance
  $ 27.3     $ 23.6     $ 14.0     $ 26.7     $ 13.3  
                                         
Total Allowance for Credit Losses
  $ 101.0     $ 97.6     $ 95.3     $ 95.4     $ 92.0  

 
12

 

Provisions for loan and off-balance sheet credit losses stood at $92.0 million as of December 31, 2010, compared to $95.4 million as of September 30, 2010, and $101.0 million as of December 31, 2009. The reduction of the total allowance for credit losses during 2010 was the result of lower reserve requirements related to the improved risk profile in the commercial portfolio, following the post-crisis economic recovery in the Region.
 
As of December 31, 2010, the non-accrual portfolio amounted to $29.0 million, compared to $32.9 million as of September 30, 2010, and $50.5 million as of December 31, 2009.  As of December 31, 2010, amounts past due in the portfolio were $1.0 million.
 
The ratio of the allowance for credit losses to the Commercial Portfolio stood at 2.1% as of December 31, 2010, compared to 2.3% as of September 30, 2010, and 3.2% as of December 31, 2009, while the ratio of non-accruing loans to loan portfolio stood at 0.7%, 0.9%, and 1.8%, respectively, as of these dates. 

OPERATING EXPENSES
 
(US$ million)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Salaries and other employee expenses
  $ 23.5     $ 20.2     $ 7.1     $ 5.5     $ 5.1  
Depreciation, amortization and impairment of premises and equipment
    2.5       2.7       0.6       0.6       0.6  
Professional services
    4.9       3.3       0.9       1.7       0.8  
Maintenance and repairs
    1.6       1.1       0.5       0.4       0.3  
Expenses from the investment fund
    0.9       3.5       0.2       0.2       0.8  
Other operating expenses
    8.6       7.4       2.4       1.9       2.1  
Total Operating Expenses
  $ 42.1     $ 38.2     $ 11.6     $ 10.4     $ 9.9  

Quarterly Variation
Operating expenses in the fourth quarter 2010 totaled $11.6 million, a $1.3 million, or 12%, increase from the third quarter 2010, and an increase of $1.7 million, or 18%, with respect to the fourth quarter 2009.  The year-on-year increase was mostly attributable to the net effect of salary and other employee expenses associated with the higher average headcount in the Commercial Division and risk management area, offset by lower performance-related expenses from the Investment Fund.

The Bank’s fourth quarter 2010 efficiency ratio stood at 44%, compared to 40% in the third quarter 2010, and 46% in the fourth quarter 2009, primarily as a result of a $5.8 million increase in net operating revenues from the Commercial Division.

During the fourth quarter 2010, the operating expenses to average assets ratio amounted to 0.94%, compared to 0.91% in the previous quarter, and compared to 1.05% in the fourth quarter 2009.

 
13

 

2010 vs. 2009
During 2010, operating expenses amounted to $42.1 million, compared to $38.2 million during 2009.  The $3.9 million, or 10%, increase in operating expenses during this period was attributable to the net effect of salary and other employee expenses associated with higher average headcount and professional fees in support of the Commercial Division and risk management’s expansion, as well as capital market issuance programs, partially offset by lower performance–related expenses from the Investment Fund.

The Bank’s efficiency ratio as of December 31, 2010 was 55%, compared to 35% as of December 31, 2009, mainly as the result of a $40.8 million decrease in net operating revenues in the Asset Management Unit and Treasury Division during the period.
 
As of December 31, 2010, the Bank’s operating expenses to average assets ratio stood at 0.97%, compared to 0.96% as of December 31, 2009.

CAPITAL RATIOS AND CAPITAL MANAGEMENT
The following graphs illustrate the trends in Net Income and Return on Average Stockholders’ Equity and Tier 1 Capital evolution for the periods indicated:
 
 
 
14

 
 
 
The following table shows capital amounts and ratios at the dates indicated:
 
(US$ million, except percentages and per share amounts)
 
2010
   
2009
   
4Q10
   
3Q10
   
4Q09
 
Tier 1 Capital (9)
  $ 701     $ 679     $ 701     $ 690     $ 679  
Total Capital (10)
  $ 744     $ 712     $ 744     $ 732     $ 712  
Risk-Weighted Assets
  $ 3,417     $ 2,633     $ 3,417     $ 3,352     $ 2,633  
Tier 1 Capital Ratio
    20.5 %     25.8 %     20.5 %     20.6 %     25.8 %
Total Capital Ratio
    21.8 %     27.0 %     21.8 %     21.8 %     27.0 %
Stockholders’ Equity
  $ 697     $ 676     $ 697     $ 689     $ 676  
Stockholders’ Equity to Total Assets
    13.7 %     17.4 %     13.7 %     14.2 %     17.4 %
Other Comprehensive Income Account ("OCI")
  $ (6 )   $ (6 )   $ (6 )   $ (5 )   $ (6 )
Leverage (times) (11)
    7.3       5.7       7.3       7.1       5.7  
 
The Bank’s equity consists entirely of issued and fully paid ordinary common stock.  As of December 31, 2010, the Bank’s Tier 1 capital ratio stood at 20.5% compared to 20.6% as of September 30, 2010 and 25.8% as of December 31, 2009. The annual reduction in the Bank’s Tier 1 Capital ratio was due to a $0.8 billion increase in risk-weighted assets associated with the Bank’s increased loan portfolio. The Bank’s leverage stood at 7.3x, 7.1x, and 5.7x, respectively, as of these dates.
 
The Bank’s common shares outstanding amounted to 36.7 million as of December 31, 2010 compared to the same amount as of September 30, 2010, and 36.5 million as of December 31, 2009.
 
During the Board of Director’s meeting on January 19, 2011, the Bank’s Board reaffirmed its commitment to a dividend policy that reflects the Bank’s growing core business. In-line with this policy, the quarterly common dividend increased from $0.17 to $0.20 per share corresponding to the fourth quarter 2010. The dividend was paid on February 11, 2011 to stockholders registered as of February 3, 2011.

 
15

 

OTHER EVENTS
 
§
Ratings affirmed:  On December 27, 2010, Moody’s Investor Service affirmed the Bank’s credit rating at Baa2/P-2; with a “Stable” Outlook.
 
§
New representative office:  On November 15, 2010, the Bank received authorization from the Superintendence of Peru to open a representative office in the city of Lima.
 
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 Unit: 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.

(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)
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.

(9)
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.

(10)
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.

(11)
Leverage corresponds to assets divided by stockholders’ equity.

(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.
 
 
16

 
 
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 December 31, 2010, Bladex had disbursed accumulated credits of approximately $169 billion.
 
Conference Call Information
 
There will be a conference call to discuss the Bank’s quarterly and annual results on Thursday, February 17, 2011 at 9:30 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 April 17, 2011.  Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions.  The conference ID# for the replayed call is 32221920.  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

 
17

 
 
EXHIBIT I
CONSOLIDATED BALANCE SHEETS

   
AT THE END OF,
                         
   
(A)
   
(B)
   
(C)
   
(A) - (B)
         
(A) - (C)
       
   
December 31, 2010
   
September 30, 2010
   
December 31, 2009
   
CHANGE
   
%
   
CHANGE
   
%
 
   
(In US$ million)
                         
                                           
ASSETS:
                                         
Cash and due from banks
  $ 437     $ 363     $ 425     $ 74       20 %   $ 12       3 %
Trading assets
    50       51       50       (1 )     (2 )     0       0  
Securities available-for-sale
    353       527       457       (174 )     (33 )     (104 )     (23 )
Securities held-to-maturity
    33       20       0       13       65       33    
n.m.
(*)
Investment fund
    167       181       198       (14 )     (8 )     (31 )     (16 )
Loans
    4,064       3,747       2,779       317       8       1,285       46  
Less:
                                                       
Allowance for loan losses
    (79 )     (69 )     (74 )     (10 )     14       (5 )     7  
Unearned income and deferred fees
    (4 )     (4 )     (4 )     0       0       0       0  
Loans, net
    3,981       3,674       2,701       307       8       1,280       47  
                                                         
Customers' liabilities under acceptances
    27       0       2       27    
n.m.
(*)     25       1,250  
Accrued interest receivable
    31       26       26       5       19       5       19  
Premises and equipment, net
    7       7       8       0       0       (1 )     (13 )
Derivative financial instruments used for hedging - receivable
    2       3       1       (1 )     (33 )     1       100  
Other assets
    11       10       12       1       10       (1 )     (8 )
                                                         
TOTAL ASSETS
  $ 5,100     $ 4,861     $ 3,879     $ 239       5 %   $ 1,221       31 %
                                                         
LIABILITIES AND STOCKHOLDERS' EQUITY:
                                                       
Deposits:
                                                       
Demand
  $ 100     $ 29     $ 51     $ 71       245 %   $ 49       96 %
Time
    1,721       1,831       1,205       (110 )     (6 )     516       43  
Total Deposits
    1,821       1,861       1,256       (40 )     (2 )     565       45  
                                                         
Trading liabilities
    4       5       3       (1 )     (20 )     1       33  
Securities sold under repurchase agreements
    265       338       71       (73 )     (22 )     194       273  
Short-term borrowings
    1,095       790       328       305       39       767       234  
Acceptances outstanding
    27       0       2       27    
n.m.
(*)     25       1,250  
Accrued interest payable
    10       9       11       1       11       (1 )     (9 )
Borrowings and long-term debt
    1,075       1,028       1,390       47       5       (315 )     (23 )
Derivative financial instruments used for hedging - payable
    53       70       65       (17 )     (24 )     (12 )     (18 )
Reserve for losses on off-balance sheet credit risk
    13       27       27       (14 )     (52 )     (14 )     (52 )
Other liabilities
    20       18       14       2       11       6       43  
TOTAL LIABILITIES
  $ 4,384     $ 4,146     $ 3,168     $ 238       6 %   $ 1,216       38 %
                                                         
Redeemable noncontrolling interest in the investment fund
    19       26       35       (7 )     (27 )     (16 )     (46 )
                                                         
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
    320       312       301       8       3       19       6  
Accumulated other comprehensive loss
    (6 )     (5 )     (6 )     (1 )     20       0       0  
Treasury stock
    (126 )     (126 )     (130 )     0       0       4       (3 )
                                                         
TOTAL STOCKHOLDERS' EQUITY
  $ 697     $ 689     $ 676     $ 8       1 %   $ 21       3 %
                                                         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 5,100     $ 4,861     $ 3,879     $ 239       5 %   $ 1,221       31 %
                                                         
(*)"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)
       
   
December 31, 2010
   
September 30, 2010
   
December 31, 2009
   
CHANGE
   
%
   
CHANGE
   
%
 
                               
INCOME STATEMENT DATA:
                                         
Interest income
  $ 33,203     $ 31,559     $ 28,256     $ 1,644       5 %   $ 4,947       18 %
Interest expense
    (12,181 )     (11,561 )     (13,073 )     (620 )     5       892       (7 )
NET INTEREST INCOME
    21,022       19,998       15,183       1,024       5       5,839       38  
Reversal (provision) for loan losses
    (12,776 )     12,567       16,063       (25,343 )     (202 )     (28,839 )     (180 )
NET INTEREST INCOME, AFTER REVERSAL (PROVISION)
                                                       
FOR LOAN LOSSES
    8,246       32,565       31,246       (24,319 )     (75 )     (23,000 )     (74 )
                                                         
OTHER INCOME (EXPENSE):
                                                       
Reversal (provision) for losses on off-balance sheet credit risk
    13,343       (12,661 )     (15,456 )     26,004       (205 )     28,799       (186 )
Fees and commissions, net
    3,102       2,045       2,369       1,057       52       733       31  
Derivative financial instrument and hedging
    (117 )     (36 )     (507 )     (81 )     225       390       (77 )
Recoveries, net of impairment of assets
    0       0       (27 )     0    
n.m.
(*)     27       (100 )
Net gain (loss) from investment fund trading
    (331 )     4,179       2,906       (4,510 )     (108 )     (3,237 )     (111 )
Net loss from trading securities
    (507 )     (1,115 )     (638 )     608       (55 )     131       (21 )
Net gain on sale of securities available-for-sale
    2,346       0       0       2,346    
n.m.
(*)     2,346    
n.m.
 
Gain on foreign currency exchange
    404       722       1,830       (318 )     (44 )     (1,426 )     (78 )
Other income (expense), net
    499       146       321       353       242       178       55  
NET OTHER INCOME (EXPENSE)
    18,739       (6,720 )     (9,202 )     25,459       (379 )     27,941       (304 )
                                                         
OPERATING EXPENSES:
                                                       
Salaries and other employee expenses
    (7,067 )     (5,545 )     (5,131 )     (1,522 )     27       (1,936 )     38  
Depreciation, amortization and impairment of premises and equipment
    (611 )     (622 )     (647 )     11       (2 )     36       (6 )
Professional services
    (910 )     (1,726 )     (834 )     816       (47 )     (76 )     9  
Maintenance and repairs
    (518 )     (405 )     (345 )     (113 )     28       (173 )     50  
Expenses from the investment fund
    (177 )     (178 )     (800 )     1       (1 )     623       (78 )
Other operating expenses
    (2,353 )     (1,894 )     (2,139 )     (459 )     24       (214 )     10  
TOTAL OPERATING EXPENSES
    (11,636 )     (10,370 )     (9,896 )     (1,266 )     12       (1,740 )     18  
                                                         
Net Income
  $ 15,349     $ 15,475     $ 12,148     $ (126 )     (1 )   $ 3,201       26  
                                                         
Net Income (loss) attributable to the redeemable noncontrolling interest
    (168 )     507       233       (675 )     (133 )     (401 )     (172 )
                                                         
NET INCOME ATTRIBUTABLE TO BLADEX
  $ 15,517     $ 14,968     $ 11,915     $ 549       4 %   $ 3,602       30 %
                                                         
PER COMMON SHARE DATA:
                                                       
Basic earnings per share
    0.42       0.41       0.33                                  
Diluted earnings per share
    0.42       0.41       0.32                                  
                                                         
Weighted average basic shares
    36,699       36,679       36,546                                  
Weighted average diluted shares
    36,983       36,814       36,727                                  
                                                         
PERFORMANCE RATIOS:
                                                       
Return on average assets
    1.3 %     1.3 %     1.3 %                                
Return on average stockholders' equity
    8.9 %     8.7 %     7.1 %                                
Net interest margin
    1.70 %     1.73 %     1.60 %                                
Net interest spread
    1.47 %     1.48 %     1.18 %                                
Operating expenses to total average assets
    0.94 %     0.91 %     1.05 %                                
(*) "n.m." means not meaningful.
 
 
 

 

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

   
FOR THE TWELVE MONTHS ENDED
 
   
December 31, 2010
   
December 31, 2009
 
   
(In US$ thousand, except per share amounts & ratios)
 
             
INCOME STATEMENT DATA:
           
Net interest income
  $ 74,503     $ 64,752  
Fees and commissions, net
    10,326       6,733  
Reversal (provision) for loan and off-balance sheet credit losses, net
    4,835       (14,830 )
Derivative financial instrument and hedging
    (1,446 )     (2,534 )
Recoveries, net of impairment of assets
    233       (120 )
Net gain (loss) from investment fund trading
    (7,995 )     24,997  
Net gain (loss) from trading securities
    (3,603 )     13,113  
Net gain on sale of securities available-for-sale
    2,346       546  
Gain on foreign currency exchange
    1,870       613  
Other income (expense), net
    833       912  
Operating expenses
    (42,081 )     (38,202 )
Net Income
  $ 39,821     $ 55,980  
Net Income (loss) attributable to the redeemable noncontrolling interest
    (2,423 )     1,118  
NET INCOME ATTRIBUTABLE TO BLADEX
  $ 42,244     $ 54,862  
BALANCE SHEET DATA (In US$ millions):
               
Investment securities and trading assets
    436       507  
Investment fund
    167       198  
Loans, net
    3,981       2,701  
Total assets
    5,100       3,879  
Deposits
    1,821       1,256  
Securities sold under repurchase agreements
    265       71  
Short-term borrowings
    1,095       328  
Borrowings and long-term debt
    1,075       1,390  
Total liabilities
    4,384       3,168  
Stockholders' equity
    697       676  
PER COMMON SHARE DATA:
               
Basic earnings per share
    1.15       1.50  
Diluted earnings per share
    1.15       1.50  
Book value (period average)
    18.57       17.49  
Book value (period end)
    18.99       18.49  
(In thousand):
               
Weighted average basic shares
    36,647       36,493  
Weighted average diluted shares
    36,814       36,571  
Basic shares period end
    36,711       36,546  
SELECTED FINANCIAL RATIOS:
               
PERFORMANCE RATIOS:
               
Return on average assets
    1.0 %     1.4 %
Return on average stockholders' equity
    6.2 %     8.6 %
Net interest margin
    1.70 %     1.62 %
Net interest spread
    1.43 %     1.12 %
Operating expenses to total average assets
    0.97 %     0.96 %
                 
ASSET QUALITY RATIOS:
               
Non-accruing loans to total loans, net of discounts (1)
    0.7 %     1.8 %
Charge offs to total loan portfolio (1)
    0.1 %     0.0 %
Allowance for loan losses to total loan portfolio (1)
    1.9 %     2.7 %
Allowance for losses on off-balance sheet credit risk to total contingencies
    3.5 %     8.3 %
                 
CAPITAL RATIOS:
               
Stockholders' equity to total assets
    13.7 %     17.4 %
Tier 1 capital to risk-weighted assets
    20.5 %     25.8 %
Total capital to risk-weighted assets
    21.8 %     27.0 %
(1)      Loan portfolio is presented net of unearned income and deferred loan fees.
 
 
 

 

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

 
FOR THE TWELVE MONTHS ENDED,
             
   
(A)
   
(B)
   
(A) - (B)
       
   
December 31, 2010
   
December 31, 2009
   
CHANGE
   
%
 
(In US$ thousand)
                 
INCOME STATEMENT DATA:
                       
Interest income
  $ 119,478     $ 141,964     $ (22,486 )     (16 )%
Interest expense
    (44,975 )     (77,212 )     32,237       (42 )
NET INTEREST INCOME
    74,503       64,752       9,751       15  
Reversal (provision) for loan losses
    (9,091 )     (18,293 )     9,202       (50 )
NET INTEREST INCOME, AFTER REVERSAL (PROVISION)
                               
FOR LOAN LOSSES
    65,412       46,459       18,953       41  
                                 
OTHER INCOME (EXPENSE):
                               
Reversal for losses on off-balance sheet credit risk
    13,926       3,463       10,463       302  
Fees and commissions, net
    10,326       6,733       3,593       53  
Derivative financial instrument and hedging
    (1,446 )     (2,534 )     1,088       (43 )
Recoveries, net of impairment of assets
    233       (120 )     353       (294 )
Net gain (loss) from investment fund trading
    (7,995 )     24,997       (32,992 )     (132 )
Net gain (loss) from trading securities
    (3,603 )     13,113       (16,716 )     (127 )
Net gain on sale of securities available-for-sale
    2,346       546       1,800       330  
Gain on foreign currency exchange
    1,870       613       1,257       205  
Other income (expense), net
    833       912       (79 )     (9 )
NET OTHER INCOME (EXPENSE)
    16,490       47,723       (31,233 )     (65 )
                                 
OPERATING EXPENSES:
                               
Salaries and other employee expenses
    (23,499 )     (20,201 )     (3,298 )     16  
Depreciation, amortization and impairment of premises and equipment
    (2,510 )     (2,671 )     161       (6 )
Professional services
    (4,945 )     (3,262 )     (1,683 )     52  
Maintenance and repairs
    (1,616 )     (1,125 )     (491 )     44  
Expenses from the investment fund
    (890 )     (3,520 )     2,630       (75 )
Other operating expenses
    (8,621 )     (7,423 )     (1,198 )     16  
TOTAL OPERATING EXPENSES
    (42,081 )     (38,202 )     (3,879 )     10  
                                 
Net Income
  $ 39,821     $ 55,980     $ (16,159 )     (29 )
                                 
Net Income (loss) attributable to the redeemable noncontrolling interest
    (2,423 )     1,118       (3,541 )     (317 )
                                 
Net Income attributable to Bladex
  $ 42,244     $ 54,862     $ (12,618 )        (23 )%
                                 
 
 
 

 

EXHIBIT V
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

   
FOR THE THREE MONTHS ENDED,
 
   
December 31, 2010
   
September 30, 2010
   
December 31, 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
  $ 310     $ 0.2       0.22 %   $ 366     $ 0.2       0.26 %   $ 405     $ 0.2       0.20 %
Loans, net of unearned income & deferred loan fees
    3,903       29.2       2.93       3,424       27.0       3.09       2,624       23.6       3.52  
Non-accrual loans
    33       0.6       7.37       43       0.8       7.68       43       0.8       6.94  
Trading assets
    51       0.8       6.06       51       0.8       6.03       50       0.8       6.10  
Investment securities
    444       2.1       1.86       506       2.4       1.84       459       2.5       2.14  
Investment fund
    176       0.3       0.73       184       0.3       0.62       195       0.4       0.72  
                                                                         
TOTAL INTEREST EARNING ASSETS
  $ 4,917     $ 33.2       2.64 %   $ 4,573     $ 31.6       2.70 %   $ 3,777     $ 28.3       2.93 %
                                                                         
Non interest earning assets
    40                       37                       38                  
Allowance for loan losses
    (69 )                     (81 )                     (90 )                
Other assets
    12                       13                       11                  
                                                                         
TOTAL ASSETS
  $ 4,900                     $ 4,543                     $ 3,736                  
                                                                         
INTEREST BEARING LIABILITIES
                                                                       
Deposits
  $ 1,855     $ 2.3       0.50 %   $ 1,650     $ 2.3       0.53 %   $ 1,242     $ 2.3       0.74 %
Trading liabilities
    4       0.0       0.00       4       0.0       0.00       3       0.0       0.00  
Investment fund
    0       0.4    
n.m.
(*)     0       0.1    
n.m.
(*)     0       0.6    
n.m.
(*)
Securities sold under repurchase agreement and
                                                                       
Short-term borrowings
    1,161       3.2       1.09       919       2.5       1.06       384       0.8       0.82  
Borrowings and long term debt
    1,049       6.2       2.32       1,144       6.7       2.30       1,296       9.3       2.82  
                                                                         
TOTAL INTEREST BEARING LIABILITIES
  $ 4,069     $ 12.2       1.17 %   $ 3,718     $ 11.6       1.22 %   $ 2,924     $ 13.1       1.75 %
                                                                         
Non interest bearing liabilities and other liabilities
  $ 113                     $ 111                     $ 110                  
                                                                         
TOTAL LIABILITIES
    4,182                       3,829                       3,034                  
                                                                         
Redeemable noncontrolling interest in the investment fund
    24                       31                       32                  
                                                                         
STOCKHOLDERS' EQUITY
    694                       683                       669                  
                                                                         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 4,900                     $ 4,543                     $ 3,736                  
                                                                         
NET INTEREST SPREAD
                    1.47 %                     1.48 %                     1.18 %
NET INTEREST INCOME AND NET INTEREST MARGIN
          $ 21.0       1.70 %           $ 20.0       1.73 %           $ 15.2       1.60 %
                                                                         
(*)  "n.m." means not meaningful.
 
 
 

 

EXHIBIT VI
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

   
FOR THE TWELVE MONTHS ENDED,
 
   
December 31, 2010
   
December 31, 2009
 
   
AVERAGE
         
AVG.
   
AVERAGE
         
AVG.
 
   
BALANCE
   
INTEREST
   
RATE
   
BALANCE
   
INTEREST
   
RATE
 
   
(In US$ million)
 
                                     
INTEREST EARNING ASSETS
                                   
Interest bearing deposits with banks
  $ 384     $ 0.8       0.22 %   $ 592     $ 1.3       0.21 %
Loans, net of unearned income & deferred loan fees
    3,243       101.5       3.09       2,569       113.5       4.36  
Non-accrual loans
    44       3.3       7.55       17       0.8       4.92  
Trading assets
    51       3.1       6.11       102       7.2       6.95  
Investment securities
    468       8.5       1.79       546       17.5       3.15  
Investment fund
    190       2.2       1.14       172       1.8       1.01  
                                                 
TOTAL INTEREST EARNING ASSETS
  $ 4,378     $ 119.5       2.69 %   $ 3,998     $ 142.0       3.50 %
                                                 
Non interest earning assets
    42                       46                  
Allowance for loan losses
    (75 )                     (79 )                
Other assets
    12                       9                  
                                                 
TOTAL ASSETS
  $ 4,357                     $ 3,975                  
                                                 
INTEREST BEARING LIABILITIES
                                               
Deposits
  $ 1,555     $ 8.5       0.54 %   $ 1,218     $ 11.5       0.93 %
Trading liabilities
    4       0.0       0.00       9       0.0       0.00  
Investment fund
    0       1.0    
n.m.
(*)     0       2.3    
n.m.
(*)
Securities sold under repurchase agreement and Short-term borrowings
    724       8.0       1.09       764       21.4       2.77  
Borrowings and long term debt
    1,241       27.4       2.18       1,208       42.0       3.43  
                                                 
TOTAL INTEREST BEARING LIABILITIES
  $ 3,524     $ 45.0       1.26 %   $ 3,199     $ 77.2       2.38 %
                                                 
Non interest bearing liabilities and other liabilities
  $ 119                     $ 122                  
                                                 
TOTAL LIABILITIES
    3,643                       3,321                  
                                                 
Redeemable noncontrolling interest in the investment fund
    34                       16                  
                                                 
STOCKHOLDERS' EQUITY
    681                       638                  
                                                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 4,357                     $ 3,975                  
                                                 
NET INTEREST SPREAD
                    1.43 %                     1.12 %
NET INTEREST INCOME AND NET INTEREST MARGIN
          $ 74.5       1.70 %           $ 64.8       1.62 %
   
(*)  "n.m." means not meaningful.

 
 

 

EXHIBIT VII
CONSOLIDATED STATEMENT OF INCOME
(In US$ thousand, except per share amounts and ratios)

   
TWELVE MONTHS
   
FOR THE THREE MONTHS ENDED
   
TWELVE MONTHS
 
   
ENDED
                                 
ENDED
 
   
DEC 31/10
   
DEC 31/10
   
SEP 30/10
   
JUN 30/10
   
MAR 31/10
   
DEC 31/09
   
DEC 31/09
 
                                           
INCOME STATEMENT DATA:
                                         
Interest income
  $ 119,478     $ 33,203     $ 31,559     $ 27,697     $ 27,019     $ 28,256     $ 141,964  
Interest expense
    (44,975 )     (12,181 )     (11,561 )     (10,500 )     (10,733 )     (13,073 )     (77,212 )
NET INTEREST INCOME
    74,503       21,022       19,998       17,197       16,286       15,183       64,752  
Reversal (provision) for loan losses
    (9,091 )     (12,776 )     12,567       (8,723 )     (159 )     16,063       (18,293 )
                                                         
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES
    65,412       8,246       32,565       8,474       16,127       31,246       46,459  
                                                         
OTHER INCOME (EXPENSE):
                                                       
Reversal (provision) for losses on off-balance sheet credit risk
    13,926       13,343       (12,661 )     9,618       3,626       (15,456 )     3,463  
Fees and commissions, net
    10,326       3,102       2,045       2,797       2,382       2,369       6,733  
Derivative financial instrument and hedging
    (1,446 )     (117 )     (36 )     (340 )     (953 )     (507 )     (2,534 )
Recoveries, net of impairment of assets
    233       0       0       0       233       (27 )     (120 )
Net gain (loss) from investment fund trading
    (7,995 )     (331 )     4,179       (10,343 )     (1,500 )     2,906       24,997  
Net gain (loss) from trading securities
    (3,603 )     (507 )     (1,115 )     (502 )     (1,479 )     (638 )     13,113  
Net gains on sale of securities available-for-sale
    2,346       2,346       0       0       0       0       546  
Gain (loss) on foreign currency exchange
    1,870       404       722       (568 )     1,312       1,830       613  
Other income (expense), net
    833       499       146       117       71       321       912  
NET OTHER INCOME (EXPENSE)
    16,490       18,739       (6,720 )     779       3,692       (9,202 )     47,723  
TOTAL OPERATING EXPENSES:
    (42,081 )     (11,636 )     (10,370 )     (10,032 )     (10,043 )     (9,896 )     (38,202 )
Net Income (loss)
  $ 39,821     $ 15,349     $ 15,475     $ (779 )   $ 9,776     $ 12,148     $ 55,980  
                                                         
Net Income (loss) attributable to the redeemable noncontrolling interest
    (2,423 )     (168 )     507       (2,442 )     (320 )     233       1,118  
                                                         
NET INCOME ATTRIBUTABLE TO BLADEX
  $ 42,244     $ 15,517     $ 14,968     $ 1,663     $ 10,096     $ 11,915     $ 54,862  
                                                         
SELECTED FINANCIAL DATA
                                                       
                                                         
PER COMMON SHARE DATA
                                                       
Basic earnings per share
  $ 1.15     $ 0.42     $ 0.41     $ 0.05     $ 0.28     $ 0.33     $ 1.50  
 
                                                       
PERFORMANCE RATIOS
                                                       
Return on average assets
    1.0 %     1.3 %     1.3 %     0.2 %     1.1 %     1.3 %     1.4 %
Return on average stockholders' equity
    6.2 %     8.9 %     8.7 %     1.0 %     6.1 %     7.1 %     8.6 %
Net interest margin
    1.70 %     1.70 %     1.73 %     1.67 %     1.71 %     1.60 %     1.62 %
Net interest spread
    1.43 %     1.47 %     1.48 %     1.38 %     1.37 %     1.18 %     1.12 %
Operating expenses to average assets
    0.97 %     0.94 %     0.91 %     0.98 %     1.06 %     1.05 %     0.96 %
                                                         

 
 

 

EXHIBIT VIII
BUSINESS SEGMENT ANALYSIS
(In US$ million)

   
FOR THE TWELVE MONTHS ENDED
   
FOR THE THREE MONTHS ENDED
 
   
DEC 31/10
   
DEC 31/09
   
DEC 31/10
   
SEP 30/10
   
DEC 31/09
 
                               
COMMERCIAL DIVISION:
                             
Net interest income (1)
  $ 71.6     $ 66.2     $ 20.3     $ 19.1     $ 15.5  
Non-interest operating income (2)
    10.1       6.9       3.1       2.1       2.1  
Operating expenses (3)
    (29.9 )     (23.4 )     (9.1 )     (7.2 )     (6.3 )
Net operating income (4)
    51.8       49.7       14.3       14.0       11.3  
Reversal (provision) for loan and off-balance sheet credit losses, net
    4.8       (14.8 )     0.6       (0.1 )     0.6  
Recoveries, net of impairment of assets
    0.2       (0.1 )     0.0       0.0       0.0  
NET INCOME ATTRIBUTABLE TO BLADEX
  $ 56.8     $ 34.8     $ 14.9     $ 13.9     $ 11.9  
Average interest-earning assets (5)
    3,284       2,586       3,926       3,466       2,667  
End-of-period interest-earning assets (5)
    4,060       2,775       4,060       3,742       2,775  
                                         
TREASURY DIVISION:
                                       
Net interest income (1)
  $ 3.2     $ 2.0     $ 1.1     $ 1.1     $ 0.5  
Non-interest operating income (loss)(2)
    (0.4 )     12.0       2.4       (0.4 )     0.7  
Operating expenses (3)
    (7.7 )     (7.9 )     (1.3 )     (2.2 )     (1.7 )
Net operating income (loss) (4)
    (4.9 )     6.1       2.2       (1.5 )     (0.5 )
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX
  $ (4.9 )   $ 6.1     $ 2.2     $ (1.5 )   $ (0.5 )
Average interest-earning assets (6)
    905       1,240       815       923       914  
End-of-period interest-earning assets (6)
    874       932       874       960       932  
                                         
ASSET MANAGEMENT UNIT:
                                       
Net interest loss (1)
  $ (0.3 )   $ (3.4 )   $ (0.4 )   $ (0.2 )   $ (0.8 )
Non-interest operating income (loss) (2)
    (7.3 )     25.4       (0.1 )     4.3       3.5  
Operating expenses (3)
    (4.5 )     (6.8 )     (1.3 )     (1.0 )     (1.9 )
Net operating income (loss) (4)
    (12.1 )     15.2       (1.8 )     3.1       0.8  
Net income (loss)
    (12.1 )     15.2       (1.8 )     3.1       0.8  
Net income (loss) attributable to the redeemable noncontrolling interest
    (2.4 )     1.1       (0.2 )     0.5       0.2  
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX
  $ (9.7 )   $ 14.1     $ (1.6 )   $ 2.6     $ 0.6  
Average interest-earning assets (7)
    190       172       176       184       195  
End-of-period interest-earning assets (7)
    167       198       167       181       198  
                                         
CONSOLIDATED:
                                       
Net interest income (1)
  $ 74.5     $ 64.8     $ 21.0     $ 20.0     $ 15.2  
Non-interest operating income (2)
    2.4       44.3       5.4       6.0       6.3  
Operating expenses (3)
    (42.2 )     (38.2 )     (11.7 )     (10.4 )     (9.9 )
Net operating income  (4)
    34.7       70.9       14.7       15.6       11.6  
Reversal (provision) for loan and off-balance sheet credit losses, net
    4.8       (14.8 )     0.6       (0.1 )     0.6  
Impairment of assets, net of recoveries
    0.2       (0.1 )     0.0       0.0       0.0  
Net income
    39.7       56.0       15.3       15.5       12.1  
Net income (loss) attributable to the redeemable noncontrolling interest
    (2.4 )     1.1       (0.2 )     0.5       0.2  
NET INCOME ATTRIBUTABLE TO BLADEX
  $ 42.2     $ 54.9     $ 15.5     $ 15.0     $ 11.9  
Average interest-earning assets
    4,379       3,998       4,917       4,573       3,777  
End-of-period interest-earning assets
    5,101       3,905       5,101       4,883       3,905  
                                         

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)
             
   
31DEC10
   
30SEP10
   
31DEC09
   
Change in Amount
 
COUNTRY
 
Amount
   
% of Total
Outstanding
   
Amount
   
% of Total
Outstanding
   
Amount
   
% of Total
Outstanding
   
(A) - (B)
   
(A) - (C)
 
                                                 
ARGENTINA
  $ 237       4.9     $ 238       5.0     $ 73       2.0     $ (1 )   $ 164  
BRAZIL.
    1,742       35.7       1,648       34.7       1,484       41.0       94       258  
CHILE
    356       7.3       437       9.2       286       7.9       (81 )     70  
COLOMBIA
    704       14.4       579       12.2       343       9.5       125       361  
COSTA RICA
    125       2.6       143       3.0       107       3.0       (18 )     18  
DOMINICAN REPUBLIC
    138       2.8       86       1.8       39       1.1       52       99  
ECUADOR
    165       3.4       160       3.4       135       3.7       5       30  
EL SALVADOR
    55       1.1       33       0.7       58       1.6       22       (3 )
GUATEMALA
    104       2.1       83       1.7       86       2.4       21       18  
HONDURAS
    38       0.8       35       0.7       23       0.6       3       15  
JAMAICA.
    65       1.3       28       0.6       31       0.9       37       34  
MEXICO
    505       10.3       532       11.2       418       11.5       (27 )     87  
PANAMA.
    98       2.0       150       3.2       85       2.3       (52 )     13  
PERU
    343       7.0       395       8.3       191       5.3       (52 )     152  
TRINIDAD & TOBAGO
    63       1.3       62       1.3       72       2.0       1       (9 )
URUGUAY
    0       0.0       2       0.0       46       1.3       (2 )     (46 )
VENEZUELA
    80       1.6       75       1.6       92       2.5       5       (12 )
OTHER
    66       1.4       65       1.4       52       1.4       1       14  
                                                                 
TOTAL CREDIT PORTFOLIO (1)
  $ 4,884       100 %   $ 4,751       100 %   $ 3,621       100 %   $ 133     $ 1,263  
                                                                 
UNEARNED INCOME AND COMMISSION (2)
    (4 )             (4 )             (4 )             0       0  
                                                                 
TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION
  $ 4,880             $ 4,747             $ 3,617             $ 133     $ 1,263  
                                                                 

(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)
             
   
31DEC10
   
30SEP10
   
31DEC09
   
Change in Amount
 
COUNTRY
 
Amount
   
% of Total
Outstanding
   
Amount
   
% of Total
Outstanding
   
Amount
   
% of Total
Outstanding
   
(A) - (B)
   
(A) - (C)
 
                                                 
ARGENTINA
  $ 237       5.3     $ 238       5.7     $ 73       2.3     $ (1 )   $ 164  
BRAZIL
    1,649       37.1       1,493       35.9       1,358       43.7       156       291  
CHILE
    328       7.4       409       9.8       258       8.3       (81 )     70  
COLOMBIA
    585       13.2       427       10.3       200       6.4       158       385  
COSTA RICA
    120       2.7       143       3.4       107       3.4       (23 )     13  
DOMINICAN REPUBLIC
    135       3.0       82       2.0       33       1.1       53       102  
ECUADOR
    165       3.7       160       3.9       135       4.3       5       30  
EL SALVADOR
    39       0.9       18       0.4       42       1.4       21       (3 )
GUATEMALA
    93       2.1       72       1.7       75       2.4       21       18  
HONDURAS
    38       0.9       35       0.8       23       0.7       3       15  
JAMAICA
    65       1.5       28       0.7       31       1.0       37       34  
MEXICO
    456       10.3       474       11.4       362       11.6       (18 )     94  
PANAMA
    49       1.1       69       1.7       41       1.3       (20 )     8  
PERU
    343       7.7       364       8.8       161       5.2       (21 )     182  
TRINIDAD & TOBAGO
    63       1.4       62       1.5       72       2.3       1       (9 )
URUGUAY
    0       0.0       2       0.0       46       1.5       (2 )     (46 )
VENEZUELA
    80       1.8       75       1.8       92       3.0       5       (12 )
OTHER
    1       0.0       3       0.1       1       0.0       (2 )     0  
                                                                 
TOTAL COMMERCIAL PORTFOLIO (1)
  $ 4,446       100 %   $ 4,154        100 %   $ 3,110       100 %   $ 292     $ 1,336  
                                                                 
UNEARNED INCOME AND COMMISSION (2)
       (4 )                   (4 )               (4 )                0          0   
                                                                 
TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION
  $ 4,442             $ 4,150             $ 3,106             $ 292     $ 1,336  
                                                                 

(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
 
31DEC10
   
30SEP10
   
31DEC09
   
(A) - (B)
   
(A) - (C)
 
                               
BRAZIL
  $ 93     $ 155     $ 126     $ (62 )   $ (33 )
CHILE
    28       28       28       0       0  
COLOMBIA
    119       152       142       (33 )     (23 )
COSTA RICA
    5       0       0       5       5  
DOMINICAN REPUBLIC
    3       3       6       0       (3 )
EL SALVADOR
    16       16       16       0       0  
GUATEMALA
    11       11       11       0       0  
MEXICO
    48       58       57       (10 )     (9 )
PANAMA
    49       81       44       (32 )     5  
PERU
    0       32       30       (32 )     (30 )
OTHER
    65       61       50       4       15  
                                         
TOTAL TREASURY PORTOFOLIO (1)
  $ 437     $ 597     $ 510     $ (160 )   $ (73 )
                                         

(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
 
4QTR10
   
3QTR10
   
4QTR09
   
(A) - (B)
   
(A) - (C)
 
                               
ARGENTINA
  $ 136     $ 132     $ 10     $ 4     $ 126  
BRAZIL
    350       420       331       (70 )     19  
CHILE
    89       188       157       (99 )     (67 )
COLOMBIA
    409       383       40       26       369  
COSTA RICA
    105       108       125       (3 )     (20 )
DOMINICAN REPUBLIC
    212       131       20       81       192  
ECUADOR
    142       146       130       (4 )     11  
EL SALVADOR
    34       1       12       34       22  
GUATEMALA
    70       30       49       40       21  
HONDURAS
    30       21       12       9       18  
JAMAICA
    94       44       31       50       64  
MEXICO
    202       229       122       (27 )     79  
PANAMA
    70       80       21       (10 )     49  
PERU
    75       270       41       (194 )     34  
TRINIDAD & TOBAGO
    27       54       52       (27 )     (25 )
UNITED STATES
    103       27       0       76       103  
URUGUAY
    0       0       11       0       (11 )
VENEZUELA
    49       65       53       (16 )     (4 )
OTHER
    10       9       1       1       9  
                                         
TOTAL CREDIT DISBURSED (1)
  $ 2,207     $ 2,338     $ 1,217     $ (130 )   $ 990  
                                         

(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).