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.

 

April 18, 2012

 

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

 

 
 

 

 

 

 

BLADEX’S FIRST QUARTER NET INCOME INCREASES 98% Y-O-Y TO $32.2 MILLION, OR $0.86 PER SHARE; ROE RISES TO 16.6%

 

PANAMA CITY, April 18, 2012 – Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”) announced today results for the first quarter ended March 31, 2012.

 

First quarter 2012 Business Highlights

 

·Bladex’s first quarter 2012 Net Income (*) totaled $32.2 million, a $15.9 million, or 98%, improvement from first quarter 2011, driven by strong increases in Net Income within the Commercial (+$15.3 million, +147%) and Treasury Divisions (+$2.6 million, +108%), while the Asset Management Unit contributed $1.5 million to the Bank’s quarterly result. The $7.4 million, or 30%, increase in Net Income compared to fourth quarter 2011 was mainly the result of improved performances in the Commercial (+$8.0 million, +45%), and Treasury Divisions (+$1.7 million, +52%).

 

 

·Increased Net Income resulted in a 16.6% annualized return on the Bank’s average stockholders’ equity (“ROE”) in first quarter 2012, compared to 9.4% in first quarter 2011, and 13.1% in the previous quarter, while the Bank’s Tier 1 capital ratio remained strong at 17.9%, compared to 19.3% as of March 31, 2011, and 18.6% as of December 31, 2011. The Bank’s equity consists entirely of issued and fully paid ordinary common stock.

 

 
 

 

 

·Net interest income totaled $29.6 million in first quarter 2012, compared to $21.4 million in first quarter 2011, and $29.1 million in fourth quarter 2011. The $8.2 million, or 38%, increase from a year ago was mainly attributable to improved net interest margins (+18 bps), and higher average interest-earning asset balances (+24%).

 

 

·As of March 31, 2012, the Commercial Portfolio totaled $5.4 billion, a $0.7 billion, or 14%, year-on-year increase, and a 2% increase from the previous quarter. The annual increase was mainly attributable to the Division’s portfolio growth and diversification from the Bank’s established client base of corporations (+16%), along with the continuing business expansion into the middle-market segment (+90%), which now accounts for 9% of the Commercial Portfolio. During first quarter 2012, credit disbursements amounted to $2.5 billion, a 12% increase compared to the same period in 2011, and 11% higher than in the fourth quarter 2011.

 

2
 

 

 

·As part of the Bank´s strategy to diversify funding sources, and to gradually extend funding tenors, short-term borrowings and securities sold under repurchase agreements (“Repos”) decreased 15% year-on-year, and 30% quarter-on-quarter to reach $1.2 billion at the end of the first quarter 2012, while borrowings and long-term debt reached $1.6 billion, up 31% year-on-year, and 5% increase from the previous quarter. During March 2012, the Bank successfully completed its first $156 million bond issuance in the Mexican capital markets, and placed a $400 million bond issuance under its global Euro Medium-Term Notes (“EMTN”) Program. As of March 31, 2012, deposit balances were $2.4 billion, a 25% year-on-year increase, and a 4% increase compared to the previous quarter.

 

 

·The non-accrual portfolio balances totaled $24.0 million as of March 31, 2012, representing 0.5% of the loan portfolio, compared to $29.0 million, or 0.7% of the loan portfolio, as of March 31, 2011, and $32.0 million, or 0.6% of the loan portfolio, in the previous quarter. During the quarter, a shift in Commercial Portfolio balances towards lower risk transactions led to the need for lower generic provisions for credit losses. Credit provision levels as of these dates represented 363%, 318%, and 304% of non-accrual balances, respectively.

 

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·The Bank’s first quarter 2012 efficiency ratio improved to 31%, compared to 40% in the first quarter 2011, and 34% in the fourth quarter 2011, mainly as a result of increased operating revenues from the Commercial and Treasury Divisions.

  

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

 

CEO's Comments

 

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the Bank’s results: "Bladex's solid first quarter results, achieved in the midst of difficult times for the global economy and the financial industry, are particularly noteworthy. As Bladex continued to project the Bank’s strong market position and expanding franchise onto trade finance, a growing business in which Bladex has distinct expertise and possesses significant competitive advantages, while pursuing business in a growing Region that we know like few others, Bladex’s financial results continued to strengthen.

 

Improvements were noticeable across a great majority of fundamentals that drive Bladex’s business: interest revenue, net interest margins, securities activities, portfolio quality and asset management. Very importantly as well, the liability side of the balance sheet was strengthened, such that maturity gaps and currency positions at the Bank are now nearly immaterial, protecting the Bank’s funding base in all but the direst of market conditions. Only commission income failed to meet expectations. However, the Bank is working on several transactions in the pipeline that it believes will close the gap in coming quarters. 

 

The combined effects of these fundamentals resulted in a $32.2 million profit in the first quarter. The implied ROE of 16.6% demonstrated the ability of Bladex’s business model to deliver high levels of profitability, while maintaining strong levels of capitalization and liquidity. 

 

Bladex knows its business extremely well, measures and manages risks effectively, maintains a steady hand during market disruptions, runs a lean structure, and executes in a disciplined manner to a very high level of excellence.  During the remainder of 2012, Bladex will continue to operate on these principles, which have allowed the Bank to increase Net Income in the core business by nearly 70% in two years.

 

Given global uncertainties in the market, Bladex understands that the road forward will not be easy, smooth, nor steady, something that the Bank actually views as an advantage, as this environment drives less committed competitors away. Nevertheless, Bladex remains confident that by continuing to provide a larger array of trade finance services to an expanding client base across an increasing number of markets, the Bank will continue to strengthen financial results, while fulfilling its mission as a key element of Latin America's trade structure and creating value for shareholders.”

 

4
 

 

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, allocated operating expenses, reversals or provisions for loan and off-balance sheet credit losses, and any impairment on assets.

 

The Commercial Portfolio includes the book value of loans, selected deposits placed, equity investments, acceptances, and contingencies (including letters of credit, stand-by letters of credit, and guarantees covering commercial risk and credit commitments).

 

As of March 31, 2012, the Commercial Division portfolio balances totaled $5.4 billion, a 2% increase from the previous quarter, and a 14% increase from first quarter 2011. The annual increase was mainly attributable to the Division’s portfolio growth and diversification from the Bank’s established client base of corporations (+16%) and financial institutions (+3%), along with the continuing business expansion into the middle-market segment (+90%).

 

 

The Commercial Portfolio continued to be short-term and trade-related in nature: $4.1 billion, or 75%, of the Commercial Portfolio matures within one year, and $2.2 billion, or 41%, within 90 days. Trade financing operations represented 61% of the portfolio, while the remaining balance consisted primarily of lending to banks and corporations involved in foreign trade.

 

5
 

 

The following graphs illustrate the geographic composition of the Bank’s Commercial Division by country of risk, with exposures in Brazil gradually declining in relative terms in favor of other countries, especially Mexico, and the diversification of corporate and middle-market companies across a variety of industry segments:

 

 

 

6
 

 

During the first quarter 2012, credit disbursements totaled $2.5 billion, 11% more than fourth quarter 2011, and a 12% increase compared to the same period in the previous year, even as disbursements in Brazil were punctually affected by the introduction of new foreign exchange regulations during the quarter.

 

Refer to Exhibit VIII for additional information relating to the Bank’s Commercial Portfolio distribution by country, and Exhibit X for the Bank’s distribution of credit disbursements by country.

 

(US$ million)  1Q12  4Q11  1Q11
Commercial Division:               
Net interest income  $26.8   $24.6   $16.4 
Non-interest operating income (1)   3.0    3.1    2.2 
Net operating revenues (2)   29.8    27.7    18.6 
Operating expenses   (8.5)   (8.8)   (7.9)
Net operating income (3)   21.3    18.9    10.7 
Reversal (provision) for loan and off-balance sheet credit losses, net   4.4    (1.2)   (0.3)
Net Income  $25.7   $17.7   $10.4 

 

1Q12 vs. 4Q11

 

The Commercial Division’s first quarter 2012 Net Income totaled $25.7 million, compared to $17.7 million in fourth quarter 2011. The $8.0 million, or 45%, increase in Net Income was mainly driven by (i) a $2.2 million increase in net interest income from higher lending rates (+37 bps), and (ii) a $5.6 million positive variation in reversals (provisions) for credit losses, due to a shift in the portfolio towards lower risk transactions.

 

1Q12 vs. 1Q11

 

Net Income more than doubled to $25.7 million compared to $10.4 million in first quarter 2011. The $15.3 million, or 147%, increase, was the result of the combined effects of: (i) a $10.4 million, or 63% increase in net interest income as a result of higher average loan portfolio balances (+20%) and improved net interest margins (+18 bps), (ii) a $4.7 million positive variation in reversals (provisions) for credit losses, due to the improved risk profile of the Commercial Portfolio, (iii) a $0.8 million, or 36%, increase in fee and other income, and (iv) a $0.6 million, or 8%, increase in operating expenses, as the result of the Division’s expanded sales force and local presence in the Region.

 

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.

 

7
 

 

Liquid assets (8) amounted to $525 million as of March 31, 2012, compared to $786 million as of December 31, 2011, and $322 million as of March 31, 2011, as the Bank maintained a conservative and proactive liquidity management approach. The liquid assets to total assets ratio was 8.7%, compared to 12.4% as of December 31, 2011, and 6.1% as of March 31, 2011.

 

As of March 31, 2012, the securities available-for-sale portfolio totaled $248 million, compared to $416 million as of December 31, 2011, and $387 million as of March 31, 2011, as positions in securities held available-for-sale were reduced for gains during the quarter. As of March 31, 2012, the available-for-sale portfolio consisted of readily quoted Latin American securities, 68% of which were sovereign or state-owned risk in nature (refer to Exhibit IX 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 (Loss) Account (“OCI”), which improved to ($0.1) million in the first quarter 2012, compared to ($3.1) million in the fourth quarter 2011, and ($3.8) million in the first quarter 2011, mainly as the net result of improved valuations of the underlying securities and/or the interest rate hedging instruments associated with them.

 

As of March 31, 2012, deposit balances amounted to $2.4 billion, a 4% increase compared to the previous quarter, and a 25% year-on-year increase. Deposits originated mostly from central banks, financial institutions and corporations throughout Latin America, and represented 46% of total liabilities at the end of first quarter 2012.

 

 

As part of the Bank´s strategy to diversify funding sources, and to gradually extend funding tenors, short-term borrowings and securities sold under repurchase agreements (“Repos”) decreased 15% year-on-year, and 30% quarter-on-quarter to reach $1.2 billion at the end of first quarter 2012, while borrowings and long-term debt reached $1.6 billion, up 31% year-on-year, and 5% from the previous quarter. During March 2012, the Bank successfully completed its first $156 million bond issuance in the Mexican capital markets, and placed a $400 million bond issuance under its global EMTN Program.

 

8
 

 

 

(US$ million)  1Q12   4Q11   1Q11 
Treasury Division:               
Net interest income  $2.7   $4.6   $5.1 
Non-interest operating income (loss) (1)   5.3    1.3    (0.4)
Net operating revenues (2)   8.0    5.9    4.7 
Operating expenses   (3.0)   (2.6)   (2.3)
Net operating income (3, 4)   5.0    3.3    2.4 
Net Income  $5.0   $3.3   $2.4 

 

1Q12 vs. 4Q11

 

In first quarter 2012, the Division reported Net Income of $5.0 million, compared to Net Income of $3.3 million in fourth quarter 2011. The $1.7 million, or 52%, increase, was primarily the result of a $4.0 million increase in non-interest operating income mainly associated with higher gains on sale of securities available for sale, partially offset by a $1.9 million decrease in net interest income, mainly attributable to lower interest-earning securities portfolio balances, and higher interest expense resulting from a 16 bps increase in funding costs as average funding tenors expanded.

 

1Q12 vs. 1Q11

 

The Division’s quarterly Net Income more than doubled to $5.0 million, compared to first quarter 2011. The $2.6 million increase was due to the combined effects of: (i) a $5.7 million increase in non-interest operating income primarily as a result of higher gains on sale of securities available for sale, (ii) a $2.4 million decrease in net interest income mainly attributable to higher interest expense as a result of a 29 bps increase in funding costs mainly as a result of increased short-term borrowing costs and higher average borrowing balances, and (iii) a $0.7 million increase in operating expenses.

 

9
 

 

ASSET MANAGEMENT UNIT

 

The Asset Management Unit incorporates the Bank’s asset management activities. The Unit’s Investment Funds primarily follow 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.

 

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

 

(US$ million)  1Q12   4Q11   1Q11 
Asset Management Unit:               
Net interest income (loss)  $0.1   $(0.1)  $(0.1)
Non-interest operating income (1)   2.8    6.1    4.6 
Net operating revenues (2)   2.9    6.0    4.5 
Operating expenses   (1.3)   (1.9)   (0.8)
Net operating income (3)   1.6    4.1    3.7 
Net income   1.6    4.1    3.7 
Net income attributable to the redeemable noncontrolling interest   0.1    0.2    0.2 
Net Income  $1.5   $3.9   $3.5 

 

1Q12 vs. 4Q11

 

Continuing its positive track record, the Asset Management Unit reported Net Income of $1.5 million in the first quarter 2012, compared to Net Income of $3.9 million in fourth quarter 2011. The $2.4 million quarterly decrease was mainly due to a $3.3 million decrease in non-interest operating income attributable to lower gains from investments in the Investment Funds, partially offset by a $0.6 million decrease in performance-related expenses from the Investment Funds.

 

1Q12 vs. 1Q11

 

The Unit’s Net Income of $1.5 million in first quarter 2012 represented a $2.0 million decrease from the $3.5 million in Net Income reported in first quarter 2011, mainly attributable to lower gains from investments in the Investment Funds, along with higher operating expenses.

 

As of March 31, 2012, the Investment Fund’s asset value totaled $122 million, compared to $120 million as of December 31, 2011, and $161 million as of March 31, 2011. As of the same dates, Bladex’s ownership of the Bladex Offshore Feeder Fund was 96.50%, 95.84% and 94.64%, respectively, with the remaining balance owned by third party investors. Since April, 2011, the Bank has redeemed $50 million of its participation in the Fund, following the decision to gradually reduce exposure to the business to mitigate volatility.

 

10
 

 

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)  1Q12   4Q11   1Q11 
Net Interest Income  $29.6   $29.1   $21.4 
Net Operating Income by Business Segment:               
Commercial Division  $21.3   $18.9   $10.7 
Treasury Division  $5.0   $3.3   $2.4 
Asset Management Unit  $1.6   $4.1   $3.7 
Net Operating Income  $27.9   $26.2   $16.8 
Net income  $32.3   $25.0   $16.5 
Net income attributable to the redeemable noncontrolling interest  $0.1   $0.2   $0.2 
Net Income attributable to Bladex  $32.2   $24.8   $16.3 
                
Net Income per Share (5)  $0.86   $0.67   $0.44 
Book Value per common share (period end)  $20.79   $20.45   $19.25 
Return on Average Equity (“ROE”)   16.6%   13.1%   9.4%
Operating Return on Average Equity ("Operating ROE") (6)   14.4%   13.9%   9.7%
Return on Average Assets (“ROA”)   2.1%   1.6%   1.3%
Net Interest Margin   1.90%   1.84%   1.72%
Efficiency Ratio (7)   31%   34%   40%
                
Liquid Assets / Total Assets (8)   8.7%   12.4%   6.1%
Liquid Assets / Total Deposits   21.9%   34.1%   16.9%
                
Non-Accruing Loans to Total Loans, net   0.5%   0.6%   0.7%
Allowance for Credit Losses to Commercial Portfolio   1.6%   1.8%   1.9%
                
Total Assets  $6,030   $6,360   $5,301 

 

NET INTEREST INCOME AND MARGINS

 

(US$ million, except percentages)  1Q12   4Q11   1Q11 
Net Interest Income               
Commercial Division  $26.8   $24.6   $16.4 
Treasury Division   2.7    4.6    5.1 
Asset Management Unit   0.1    (0.1)   (0.1)
Consolidated  $29.6   $29.1   $21.4 
                
Net Interest Margin*   1.90%   1.84%   1.72%

 

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

  

Net interest margin was 1.90% in first quarter 2012, an increase of 6 bps compared to 1.84% in fourth quarter 2011, and an increase of 18 bps compared to 1.72% in first quarter 2011, mainly due to higher average loan rates, partially offset by an increase in funding costs resulting mainly from higher short-term borrowing costs. 

 

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1Q12 vs. 4Q11

 

In first quarter 2012, net interest income amounted to $29.6 million, an increase of $0.5 million, or 2%, compared to $29.1 million in fourth quarter 2011, as average interest rates on the Bank’s interest-earning assets increased 19 bps to 3.06%, while the average rate paid on the Bank´s interest-bearing liabilities increased 15 bps to 1.38%, resulting in a $2.1 million overall increase in net interest income; partially offset by a $1.6 million overall decrease in net interest income from lower average interest-earning asset balances.

 

1Q12 vs. 1Q11

 

Net interest income increased $8.2 million, or 38%, when compared to first quarter 2011.  This increase primarily reflects: 

 

(i)A $5.1 million increase in net interest income as a result of higher average interest rates on the Bank’s interest-earning assets (+45 bps), partially offset by a 29 bps increase in average rates paid on interest-bearing liabilities.

 

(ii)A $3.1 million increase in net interest income as the result of higher average interest-earning assets, primarily average loan portfolio balances (+20%), which resulted in a $7.1 million overall increase in interest income, partially offset by a $4.0 million increase in interest expense associated with an increase in average interest-bearing liabilities (+28%).

 

FEES AND COMMISSIONS

 

(US$ million)  1Q12   4Q11   1Q11 
Letters of credit  $2.2   $2.9   $2.0 
Loan fees   0.1    0.1    0.1 
Third party investors (BAM)   0.0    0.0    0.1 
Other*   0.0    0.0    0.1 
Fees and Commissions, net  $2.3   $3.0   $2.2 
* Net of commission expenses               

 

Fees and commissions income amounted to $2.3 million in first quarter 2012, compared to $3.0 million in the previous quarter, and $2.2 million in first quarter 2011. The quarterly decrease of $0.7 million compared to fourth quarter 2011, was mostly attributable to decreased commission income from lower average volumes in the letters of credit business.

 

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PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

 

(In US$ million)  31-Mar-11   30-Jun-11   30-Sep-11   31-Dec-11   31-Mar-12 
Allowance for Loan Losses:                         
Balance at beginning of the period  $78.6   $83.4   $80.8   $79.8   $88.5 
Provisions (reversals)   4.8    (2.6)   (1.0)   7.7    (3.5)
Charge-offs, net of recoveries   (0.0)   0.0    (0.0)   1.0    (5.8)
End of period balance  $83.4   $80.8   $79.8   $88.5   $79.2 
                          
Reserve for Losses on Off-balance Sheet Credit Risk:                         
Balance at beginning of the period  $13.3   $8.8   $11.9   $15.3   $8.9 
Provisions (reversals)   (4.5)   3.1    3.5    (6.4)   (0.9)
End of period balance  $8.8   $11.9   $15.3   $8.9   $8.0 
                          
Total Allowance for Credit Losses  $92.2   $92.7   $95.2   $97.4   $87.2 

 

The allowance for loan and off-balance sheet credit losses totaled $87.2 million as of March 31, 2012, compared to $97.4 million as of December 31, 2011, and $92.2 million as of March 31, 2011. The $10.2 million quarter-on-quarter net decrease in the total allowance for credit losses was mostly driven by a $5.8 million loan charge-off against specific reserves created in prior periods, and $4.4 million in reversals for credit losses as a result of a shift in the mix of both loan and off-balance sheet exposures to lower client and country risk profiles. The $5.0 million year-on-year decrease in the total allowance for credit losses was mainly attributable to $4.8 million in loan charge-offs, net of recoveries. The ratio of the allowance for credit losses to the Commercial Portfolio was 1.6% as of March 31, 2012, compared to 1.8% as of December 31, 2011, and 1.9% as of March 31, 2011.

 

As of March 31, 2012, the non-accrual portfolio balances totaled $24.0 million, representing 0.5% of the loan portfolio, compared to $32.0 million, or 0.6% of the loan portfolio, in the previous quarter, and $29.0 million, or 0.7% of the loan portfolio, as of March 31, 2011. Credit provision levels as of these dates represented 363%, 304%, and 318% of non-accrual balances, respectively.

 

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OPERATING EXPENSES

 

(US$ million)  1Q12   4Q11   1Q11 
Salaries and other employee expenses  $7.7   $7.5   $6.8 
Depreciation and amortization of premises and equipment   0.5    0.5    0.6 
Professional services   1.1    1.4    0.9 
Maintenance and repairs   0.4    0.4    0.4 
Expenses from the investment fund   0.3    0.8    0.1 
Other operating expenses   2.8    2.7    2.1 
Total Operating Expenses  $12.8   $13.3   $11.0 

 

Operating expenses in first quarter 2012 totaled $12.8 million, a $0.5 million, or 3%, decrease compared to $13.3 million in fourth quarter 2011, mainly as a result of lower performance-related expenses in the Investment Fund. The $1.8 million, or 17%, increase compared to the same period 2011 was primarily attributable to increased salary and other employee expenses associated mainly with higher average headcount in support of the Bank´s business expansion.

 

The Bank’s first quarter 2012 efficiency ratio improved to 31%, compared to 34% in the fourth quarter 2011, and 40% in first quarter 2011, mainly as a result of increased operating revenues from the Commercial and Treasury Divisions.

 

The operating expenses to average assets ratio was 83 bps in first quarter 2012, the same level in the previous quarter, and compared to 89 bps in first quarter 2011, as economies of scale improved.

 

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CAPITAL RATIOS AND CAPITAL MANAGEMENT

 

The following table shows capital amounts and ratios at the dates indicated:

 

(US$ million, except percentages and per share amounts)  1Q12   4Q11   1Q11 
Tier 1 Capital (9)  $780   $761   $709 
Total Capital (10)  $835   $812   $755 
Risk-Weighted Assets  $4,347   $4,090   $3,681 
Tier 1 Capital Ratio   17.9%   18.6%   19.3%
Total Capital Ratio   19.2%   19.9%   20.5%
Stockholders’ Equity  $782   $759   $709 
Stockholders’ Equity to Total Assets   13.0%   11.9%   13.4%
Accumulated other comprehensive income (loss) ("OCI")  $(0)  $(3)  $(4)
Leverage (times) (11)   7.7    8.4    7.5 

 

The Bank’s equity consists entirely of issued and fully paid ordinary common stock. As of March 31, 2012, the Bank’s Tier 1 capital ratio was 17.9%, compared to 18.6% as of December 31, 2011, and 19.3% as of March 31, 2011. The Bank’s leverage as of these dates was 7.7x, 8.4x, and 7.5x, respectively.

 

The Bank’s common shares outstanding totaled 37.6 million as of March 31, 2012, compared to 37.1 million as of December 31, 2011, and compared to 36.8 million as of March 31, 2011.

 

RECENT EVENTS

 

§Annual Shareholders’ Meeting:  At the Annual Shareholders’ Meeting held April 17, 2012 in Panama City, Panama, Mr. Guillermo Güémez García was re-elected as Director representing Class “E” shareholders, and Mr. Gonzalo Menéndez Duque and Mr. Jaime Rivera were re-elected as Directors of the Bank representing all classes of shares.  In addition, the shareholders approved the Bank’s audited consolidated financial statements for the fiscal year ended December 31, 2011, the appointment of Deloitte as the Bank’s registered independent public accounting firm for the fiscal year ending December 31, 2012, and, on an advisory basis, the compensation of the Bank’s Named Executive Officers. 

 

§Quarterly dividend payment: At the Board of Director’s meeting held April 16, 2012, the Bank’s Board approved a quarterly common dividend of $0.25 per share corresponding to first quarter 2012. The dividend will be paid May 10, 2012, to stockholders registered as of April 30, 2012.

 

§Bond issuance under the Bank’s EMTN Program: On March 29, 2012, the Bank announced the issuance of a US$400 million bond, the Bank’s first 144A/Reg S transaction in several years. The bonds, which mature in 2017, pay a fixed rate coupon of 3.75%. The issue was substantially oversubscribed and placed with global institutional and retail investors. The inflow of these funds was recorded in early April, 2012.

 

15
 

 

§First bond issuance in Mexico: On March 22, 2012, the Bank announced Bladex’s first-ever issuance of “certificados bursátiles” in the Mexican capital markets, in the amount of Pesos 2.0 billion (two billion Mexican pesos). The Notes have a three-year tenor, with a floating-rate coupon of 28-day TIIE plus 65 basis points. The transaction was oversubscribed, with total demand exceeding Pesos 2.3 billion. With more than 25 investors, the transaction was diversified among pension funds, insurance companies, private banks, commercial banks, and brokerage firms.

 

§Ratings affirmed: On March 20, 2012, Moody’s Investor Service affirmed the Bank’s credit rating at Baa2/P-2; with a “Stable” Outlook.

 

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)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.

 

(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)Liquid assets consist of investment-grade ‘A’ securities, and cash and due from banks, excluding pledged regulatory deposits. Liquidity ratio refers to liquid assets as a percentage of total assets.

 

(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.

 

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 March 31, 2012, Bladex had disbursed accumulated credits of approximately $182 billion.

 

Conference Call Information

 

There will be a conference call to discuss the Bank’s quarterly results on Thursday, April 19, 2012 at 11:00 a.m. New York City time (Eastern Time).  For those interested in participating, please dial (800) 311-9401 in the United States or, if outside the United States, (334) 323-7224.  Participants should use conference ID# 8034, and dial in five minutes before the call is set to begin.  There will also be a live audio webcast 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 June 19, 2012. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions.  The conference ID# for the replayed call is 39009511. 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

20 Broad Street, 25th Floor, 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)     
   March 31, 2012   December 31, 2011   March 31, 2011   CHANGE   %   CHANGE   % 
   (In US$ million)                 
                             
ASSETS:                                   
Cash and due from banks  $542   $843   $328   $(301)   (36)%  $214    65%
Trading assets   7    20    45    (13)   (65)   (38)   (84)
Securities available-for-sale   248    416    387    (168)   (40)   (139)   (36)
Securities held-to-maturity   26    27    33    (1)   (4)   (7)   (21)
Investment fund   122    120    161    2    2    (39)   (24)
Loans   5,092    4,960    4,385    132    3    707    16 
Less:                                   
Allowance for loan losses   79    89    83    (10)   (11)   (4)   (5)
Unearned income and deferred fees   6    7    5    (1)   (14)   1    20 
Loans, net   5,007    4,864    4,297    143    3    710    17 
                                    
Customers' liabilities under acceptances   2    1    3    1    100    (1)   (33)
Accrued interest receivable   39    38    28    1    3    11    39 
Premises and equipment, net   6    7    6    (1)   (14)   0    0 
Derivative financial instruments used for hedging – receivable   10    4    2    6    150    8    400 
Other assets   20    18    11    2    11    9    82 
                                    
TOTAL ASSETS  $6,030   $6,360   $5,301   $(330)   (5)%  $729    14%
                                    
LIABILITIES AND STOCKHOLDERS' EQUITY:                                   
Deposits:                                   
Demand  $116   $68   $35   $48    71%  $81    231%
Time   2,278    2,236    1,873    42    2    405    22 
Total Deposits   2,394    2,304    1,908    90    4    486    25 
                                    
Trading liabilities   0    6    3    (6)   (100)   (3)   (100)
Securities sold under repurchase agreements   160    377    247    (217)   (58)   (87)   (35)
Short-term borrowings   1,027    1,323    1,153    (296)   (22)   (126)   (11)
Acceptances outstanding   2    1    3    1    100    (1)   (33)
Accrued interest payable   15    12    9    3    25    6    67 
Borrowings and long-term debt   1,568    1,488    1,196    80    5    372    31 
Derivative financial instruments used for hedging - payable   40    54    40    (14)   (26)   0    0 
Reserve for losses on off-balance sheet credit risk   8    9    9    (1)   (11)   (1)   (11)
Other liabilities   27    23    16    4    17    11    69 
TOTAL LIABILITIES  $5,242   $5,595   $4,584   $(353)   (6)%  $658    14%
                                    
Redeemable noncontrolling interest   6    6    9    0    0    (3)   (33)
                                    
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   124    130    132    (6)   (5)   (8)   (6)
Capital reserves   95    95    95    0    0    0    0 
Retained earnings   386    373    328    13    3    58    18 
Accumulated other comprehensive loss   (0)   (3)   (4)   3    (96)   4    (97)
Treasury stock   (103)   (116)   (123)   13    (11)   20    (16)
                                    
TOTAL STOCKHOLDERS' EQUITY  $782   $759   $709   $23    3%  $73    10%
                                    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $6,030   $6,360   $5,301   $(330)   (5)%  $729    14%

 

 
 

  

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)     
   March 31, 2012   December 31, 2011   March 31, 2011   CHANGE   %   CHANGE   % 
                     
INCOME STATEMENT DATA:                                   
Interest income  $48,379   $46,093   $32,858   $2,286    5%  $15,521    47%
Interest expense   (18,749)   (16,965)   (11,455)   (1,784)   11    (7,294)   64 
                                   
NET INTEREST INCOME   29,630    29,128    21,403    502    2    8,227    38 
                                   
 Reversal (provision) for loan losses.   3,508    (7,688)   (4,812)   11,196    (146)   8,320    (173)
                                   
NET INTEREST INCOME, AFTER REVERSAL (PROVISION)                                   
FOR LOAN LOSSES   33,138    21,440    16,591    11,698    55    16,547    100 
                                    
OTHER INCOME (EXPENSE):                                   
Reversal for losses on off-balance sheet credit risk   903    6,447    4,546    (5,544)   (86)   (3,643)   (80)
Fees and commissions, net   2,317    2,975    2,205    (658)   (22)   112    5 
Derivative financial instrument and hedging   440    1,480    13    (1,040)   (70)   427    3,285 
Net gain from investment fund trading   2,809    6,080    4,499    (3,271)   (54)   (1,690)   (38)
Net gain (loss) from trading securities   8,430    (4,854)   (902)   13,284    (274)   9,332    (1,035) 
Net gain on sale of securities available-for-sale   4,306    373    144    3,933    1,054    4,162    2,890 
Gain (loss) on foreign currency exchange   (7,950)   4,255    366    (12,205)   (287)   (8,316)   (2,272) 
Other income, net   797    105    21    692    659    776    3,695 
NET OTHER INCOME (EXPENSE)   12,052    16,861    10,892    (4,809)   (29)   1,160    11 
                                    
OPERATING EXPENSES:                                   
Salaries and other employee expenses   (7,704)   (7,460)   (6,821)   (244)   3    (883)   13 
Depreciation and amortization of premises and equipment   (464)   (463)   (622)   (1)   0    158    (25)
Professional services   (1,119)   (1,421)   (888)   302    (21)   (231)   26 
Maintenance and repairs   (427)   (396)   (410)   (31)   8    (17)   4 
Expenses from investment funds   (283)   (805)   (113)   522    (65)   (170)   150 
Other operating expenses   (2,832)   (2,747)   (2,128)   (85)   3    (704)   33 
TOTAL OPERATING EXPENSES   (12,829)   (13,292)   (10,982)   463    (3)   (1,847)   17 
                                    
Net Income  $32,361   $25,009   $16,501   $7,352    29   $15,860    96 
                                    
Net Income attributable to the redeemable noncontrolling interest   140    212    197    (72)   (34)   (57)   (29)
                                    
NET INCOME ATTRIBUTABLE TO BLADEX  $32,221   $24,797   $16,304   $7,424    30%  $15,917    98%
                                    
PER COMMON SHARE DATA:                                   
Basic earnings per share   0.86    0.67    0.44                     
Diluted earnings per share   0.86    0.66    0.44                     
                                    
Weighted average basic shares   37,281    37,127    36,731                     
Weighted average diluted shares   37,566    37,418    36,993                     
                                    
PERFORMANCE RATIOS:                                   
Return on average assets   2.1%   1.6%   1.3%                    
Return on average stockholders' equity   16.6%   13.1%   9.4%                    
Net interest margin   1.90%   1.84%   1.72%                    
Net interest spread   1.68%   1.64%   1.52%                    
Operating expenses to total average assets   0.83%   0.83%   0.89%                    

 

 
 

 

SUMMARY OF CONSOLIDATED FINANCIAL DATA

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

   FOR THE THREE MONTHS ENDED 
   March 31, 2012   March 31, 2011 
   (In US$ thousand, except per share amounts & ratios) 
         
INCOME STATEMENT DATA:          
Net interest income  $29,630   $21,403 
Fees and commissions, net   2,317    2,205 
Reversal (provision) for loan and off-balance sheet credit losses, net   4,411    (266)
Derivative financial instrument and hedging   440    13 
Net gain from investment fund trading   2,809    4,499 
Net gain (loss) from trading securities   8,430    (902)
Net gain on sale of securities available-for-sale   4,306    144 
Gain (loss) on foreign currency exchange   (7,950)   366 
Other income (expense), net   797    21 
Operating expenses   (12,829)   (10,982)
Net Income  $32,361   $16,501 
Net Income attributable to the redeemable noncontrolling interest   140    197 
NET INCOME ATTRIBUTABLE TO BLADEX  $32,221   $16,304 
           
BALANCE SHEET DATA (In US$ millions):          
Investment securities and trading assets   281    465 
Investment fund   122    161 
Loans, net   5,007    4,297 
Total assets   6,030    5,301 
Deposits   2,394    1,908 
Securities sold under repurchase agreements   160    247 
Short-term borrowings   1,027    1,153 
Borrowings and long-term debt   1,568    1,196 
Total liabilities   5,242    4,584 
Stockholders' equity   782    709 
           
PER COMMON SHARE DATA:          
Basic earnings per share   0.86    0.44 
Diluted earnings per share   0.86    0.44 
Book value (period average)   20.88    19.15 
Book value (period end)   20.79    19.25 
           
(In thousand):          
Weighted average basic shares   37,281    36,731 
Weighted average diluted shares   37,566    36,993 
Basic shares period end   37,639    36,829 
           
SELECTED FINANCIAL RATIOS:          
PERFORMANCE RATIOS:          
Return on average assets   2.1%   1.3%
Return on average stockholders' equity   16.6%   9.4%
Net interest margin   1.90%   1.72%
Net interest spread   1.68%   1.52%
Operating expenses to total average assets   0.83%   0.89%
           
ASSET QUALITY RATIOS:          
Non-accruing loans to total loans, net of discounts (1)   0.5%   0.7%
Charge offs to total loan portfolio (1)   0.1%   0.0%
Allowance for loan losses to total loan portfolio (1)   1.6%   1.9%
Allowance for losses on off-balance sheet credit risk to total contingencies   2.3%   2.4%
           
CAPITAL RATIOS:          
Stockholders' equity to total assets   13.0%   13.4%
Tier 1 capital to risk-weighted assets   17.9%   19.3%
Total capital to risk-weighted assets   19.2%   20.5%

 

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

 

 
 

 

EXHIBIT IV

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

 

   FOR THE THREE MONTHS ENDED 
   March 31, 2012   December 31, 2011   March 31, 2011 
   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  $836   $0.6    0.28%  $648   $0.7    0.40%  $317   $0.2    0.23%
Loans, net of unearned income & deferred loan fees   4,889    43.8    3.54    5,011    40.6    3.17    4,085    29.2    2.86 
Non-accrual loans   30    0.5    6.74    33    0.6    7.40    29    0.6    8.36 
Trading assets   10    0.1    2.76    23    0.3    4.66    45    0.7    6.08 
Investment securities   369    2.8    2.99    446    3.4    3.02    395    1.8    1.83 
Investment fund   122    0.6    1.95    127    0.5    1.43    164    0.4    0.95 
                                              
TOTAL INTEREST EARNING ASSETS  $6,258   $48.4    3.06%  $6,289   $46.1    2.87%  $5,036   $32.9    2.61%
                                              
Non interest earning assets   59              98              46           
Allowance for loan losses   (87)             (82)             (79)          
Other assets   24              17              13           
                                              
TOTAL ASSETS  $6,254             $6,321             $5,016           
                                              
INTEREST BEARING LIABILITIES                                             
Deposits  $2,347   $3.1    0.52%  $2,306   $2.6    0.45%  $1,790   $1.9    0.42%
Trading liabilities   0    0.0    0.00    3    0.0    0.00    3    0.0    0.00 
Investment fund   0    0.0    n.m.(*)   0    0.2    n.m.(*)    0    0.0    n.m.(*) 
Securities sold under repurchase agreement and Short-term borrowings   1,501    7.1    1.88    1,620    5.8    1.39    1,246    3.3    1.05 
Borrowings and long term debt   1,530    8.5    2.21    1,494    8.4    2.20    1,165    6.3    2.15 
                                              
TOTAL INTEREST BEARING LIABILITIES  $5,378   $18.7    1.38%  $5,422   $17.0    1.22%  $4,203   $11.5    1.09%
                                              
Non interest bearing liabilities and other liabilities  $91             $144             $94           
                                              
TOTAL LIABILITIES   5,469              5,566              4,296           
                                              
Redeemable noncontrolling interest   6              5              17           
                                              
STOCKHOLDERS' EQUITY   778              750              703           
                                              
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $6,254             $6,321             $5,016           
                                              
NET INTEREST SPREAD             1.68%             1.64%             1.52%
NET INTEREST INCOME AND NET INTEREST MARGIN       $29.6    1.90%       $29.1    1.84%       $21.4    1.72%

 

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

 

 
 

 

EXHIBIT V

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 31/11   MAR 31/12   DEC 31/11   SEP 30/11   JUN 30/11   MAR 31/11   DEC 31/10 
                             
INCOME STATEMENT DATA:                                   
Interest income  $157,427   $48,379   $46,093   $42,582   $35,894   $32,858   $119,478 
Interest expense   (54,717)   (18,749)   (16,965)   (13,887)   (12,410)   (11,455)   (44,975)
NET INTEREST INCOME   102,710    29,630    29,128    28,695    23,484    21,403    74,503 
                                   
(Provision) reversal for loan losses   (8,841)   3,508    (7,688)   1,072    2,587    (4,812)   (9,091)
                                    
NET INTEREST INCOME AFTER (PROVISION) REVERSAL FOR LOAN LOSSES   93,869    33,138    21,440    29,767    26,071    16,591    65,412 
                                    
OTHER INCOME (EXPENSE):                                   
Reversal (provision) for losses on off-balance sheet credit risk   4,448    903    6,447    (3,470)   (3,075)   4,546    13,926 
Fees and commissions, net   10,729    2,317    2,975    3,656    1,893    2,205    10,326 
Derivative financial instrument and hedging   2,923    440    1,480    935    495    13    (1,446)
Impairment of assets, net of recoveries   (57)   0    0    0    (57)   0    233 
Net gain (loss) from investment fund trading   20,314    2,809    6,080    (3,579)   13,314    4,499    (7,995)
Net gain (loss) from trading securities   (6,494)   8,430    (4,854)   (150)   (588)   (902)   (3,603)
Net gains on sale of securities available-for-sale   3,413    4,306    373    1,778    1,118    144    2,346 
Gain (loss) on foreign currency exchange   4,270    (7,950)   4,255    (516)   165    366    1,870 
Other income, net   477    797    105    122    229    21    833 
                                    
NET OTHER INCOME (EXPENSE)   40,023    12,052    16,861    (1,224)   13,494    10,892    16,490 
                                    
TOTAL OPERATING EXPENSES:   (50,036)   (12,829)   (13,292)   (12,358)   (13,404)   (10,982)   (42,081)
                                    
Net Income  $83,856   $32,361   $25,009   $16,185   $26,161   $16,501   $39,821 
                                    
Net Income (loss) attributable to the redeemable noncontrolling interest   676    140    212    (154)   421    197    (2,423)
                                    
NET INCOME ATTRIBUTABLE TO BLADEX  $83,180   $32,221   $24,797   $16,339   $25,740   $16,304   $42,244 
                                    
SELECTED FINANCIAL DATA                                   
                                    
PER COMMON SHARE DATA                                   
Basic earnings per share  $2.25   $0.86   $0.67   $0.44   $0.70   $0.44   $1.15 
PERFORMANCE RATIOS                                   
Return on average assets   1.5%   2.1%   1.6%   1.1%   1.9%   1.3%   1.0%
Return on average stockholders' equity   11.4%   16.6%   13.1%   8.7%   14.3%   9.4%   6.2%
Net interest margin   1.81%   1.90%   1.84%   1.90%   1.75%   1.72%   1.70%
Net interest spread   1.62%   1.68%   1.64%   1.72%   1.56%   1.52%   1.43%
Operating expenses to average assets   0.88%   0.83%   0.83%   0.81%   1.00%   0.89%   0.97%

 

 
 

 

EXHIBIT VI

BUSINESS SEGMENT ANALYSIS

(In US$ million)

 

   FOR THE TWELVE MONTHS ENDED   FOR THE THREE MONTHS ENDED 
   DEC 31/11   DEC 31/10   MAR 31/12   DEC 31/11   MAR 31/11 
                     
COMMERCIAL DIVISION:                         
                          
Net interest income (1)  $81.7   $54.5   $26.8   $24.6   $16.4 
Non-interest operating income (2)   11.0    10.3    3.0    3.1    2.2 
Operating expenses (3)   (34.8)   (28.3)   (8.5)   (8.8)   (7.9)
Net operating income (4)    57.9    36.5    21.3    18.9    10.7 
(Provision) reversal for loan and off-balance sheet credit losses, net   (4.4)   4.8    4.4    (1.2)   (0.3)
Impairment of assets, net of recoveries   (0.1)   0.2    0.0    0.0    0.0 
                          
NET INCOME ATTRIBUTABLE TO BLADEX  $53.4   $41.5   $25.7   $17.7   $10.4 
                          
Average interest-earning assets (5)   4,616    3,284    4,937    5,074    4,115 
End-of-period interest-earning assets (5)   4,983    4,060    5,086    4,983    4,380 
                          
TREASURY DIVISION:                         
                          
Net interest income (1)  $20.7   $20.7   $2.7   $4.6   $5.1 
Non-interest operating income (loss)(2)   4.2    (0.7)   5.3    1.3    (0.4)
Operating expenses (3)   (10.2)   (9.3)   (3.0)   (2.6)   (2.3)
Net operating income (4)    14.7    10.7    5.0    3.3    2.4 
                          
NET INCOME ATTRIBUTABLE TO BLADEX  $14.7   $10.7   $5.0   $3.3   $2.4 
                          
Average interest-earning assets (6)   916    905    1,191    1,081    757 
End-of-period interest-earning assets (6)   1,270    874    816    1,270    793 
                          
ASSET MANAGEMENT UNIT:                         
                          
Net interest income (loss) (1)  $0.3   $(0.7)  $0.1   $(0.1)  $(0.1)
Non-interest operating income (loss) (2)   20.5    (7.2)   2.8    6.1    4.6 
Operating expenses (3)   (5.0)   (4.5)   (1.3)   (1.9)   (0.8)
Net operating income (loss) (4)    15.8    (12.4)   1.6    4.1    3.7 
Net income (loss)   15.8    (12.4)   1.6    4.1    3.7 
Net income (loss) attributable to the redeemable noncontrolling interest   0.7    (2.4)   0.1    0.2    0.2 
                          
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX  $15.1   $(10.0)  $1.5   $3.9   $3.5 
                          
Average interest-earning assets (6)   150    190    130    134    164 
End-of-period interest-earning assets (6)   127    167    129    127    161 
                          
CONSOLIDATED:                         
                          
Net interest income (1)  $102.7   $74.5   $29.6   $29.1   $21.4 
Non-interest operating income (2)   35.7    2.4    11.1    10.4    6.4 
Operating expenses (3)   (50.0)   (42.1)   (12.8)   (13.3)   (11.0)
Net operating income (4)    88.4    34.8    27.9    26.2    16.8 
(Provision) reversal for loan and off-balance sheet credit losses, net   (4.4)   4.8    4.4    (1.2)   (0.3)
Impairment of assets, net of recoveries   (0.1)   0.2    0.0    0.0    0.0 
Net income   83.9    39.8    32.3    25.0    16.5 
Net income (loss) attributable to the redeemable noncontrolling interest   0.7    (2.4)   0.1    0.2    0.2 
                          
NET INCOME ATTRIBUTABLE TO BLADEX  $83.2   $42.2   $32.2   $24.8   $16.3 
                          
Average interest-earning assets   5,681    4,378    6,258    6,289    5,036 
End-of-period interest-earning assets   6,380    5,101    6,031    6,380    5,334 

 

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 selected deposits placed, and loans, net of unearned income and deferred loan fees.

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

 

 
 

 

EXHIBIT VII

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

 

    AT THE END OF,         
   (A)   (B)   (C)         
   31MAR12   31DEC11   31MAR11   Change in Amount 
COUNTRY  Amount   % of Total
Outstanding		   Amount   % of Total
Outstanding		   Amount   % of Total
Outstanding		   (A) - (B)   (A) - (C) 
                                         
ARGENTINA  $300    5.2   $390    6.7   $234    4.5   $(90)  $66 
BRAZIL   1,866    32.6    1,984    34.1    1,929    36.9    (118)   (63)
CHILE   371    6.5    389    6.7    390    7.5    (18)   (19)
COLOMBIA   656    11.5    839    14.4    722    13.8    (183)   (66)
COSTA RICA   220    3.8    121    2.1    103    2.0    99    117 
DOMINICAN REPUBLIC   126    2.2    150    2.6    142    2.7    (24)   (16)
ECUADOR   195    3.4    238    4.1    226    4.3    (43)   (31)
EL SALVADOR   22    0.4    23    0.4    54    1.0    (1)   (32)
GUATEMALA   144    2.5    167    2.9    93    1.8    (23)   51 
HONDURAS   53    0.9    46    0.8    51    1.0    7    2 
JAMAICA   11    0.2    2    0.0    38    0.7    9    (27)
MEXICO   666    11.6    498    8.6    501    9.6    168    165 
NETHERLANDS   50    0.9    20    0.3    0    0.0    30    50 
NICARAGUA   10    0.2    10    0.2    0    0.0    0    10 
PANAMA   166    2.9    178    3.1    124    2.4    (12)   42 
PARAGUAY   19    0.3    30    0.5    7    0.1    (11)   12 
PERU   426    7.4    385    6.6    355    6.8    41    71 
TRINIDAD & TOBAGO   155    2.7    76    1.3    114    2.2    79    41 
UNITED STATES   0    0.0    22    0.4    0    0.0    (22)   0 
URUGUAY   157    2.7    110    1.9    0    0.0    47    157 
VENEZUELA   32    0.6    22    0.4    72    1.4    10    (40)
MULTILATERAL ORGANIZATIONS   59    1.0    98    1.7    65    1.2    (39)   (6)
OTHER   15    0.3    16    0.3    5    0.1    (1)   10 
                                         
TOTAL CREDIT PORTFOLIO (1)   $5,719    100%  $5,814    100%  $5,225    100%  $(95)  $494 
                                         
UNEARNED INCOME AND COMMISSION (2)   (6)        (7)        (5)        1    (1)
                                         
 TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION  $5,713        $5,807        $5,220        $(94)  $493 

  

(1) Includes book value of loans, selected commercial deposits placed, fair value of  investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, equity investments and guarantees covering commercial risk, credit default swap and credit commitments).
(2) Represents unearned income and commission on loans.

 

 
 

 

EXHIBIT VIII

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

  

    AT THE END OF,         
   (A)   (B)   (C)         
   31MAR12   31DEC11   3IMAR11   Change in Amount 
COUNTRY  Amount   % of Total
Outstanding		   Amount   % of Total
Outstanding		   Amount   % of Total
Outstanding		   (A) - (B)   (A) - (C) 
                                         
  ARGENTINA  $300    5.5   $390    7.3   $234    4.9   $(90)  $66 
  BRAZIL   1,796    33.0    1,893    35.4    1,826    38.4    (97)   (30)
  CHILE   371    6.8    389    7.3    362    7.6    (18)   9 
  COLOMBIA   620    11.4    737    13.8    620    13.0    (117)   0 
  COSTA RICA   220    4.0    121    2.3    103    2.2    99    117 
  DOMINICAN REPUBLIC   126    2.3    150    2.8    140    2.9    (24)   (14)
  ECUADOR   195    3.6    238    4.4    226    4.7    (43)   (31)
  EL SALVADOR   22    0.4    23    0.4    39    0.8    (1)   (17)
  GUATEMALA   139    2.6    162    3.0    82    1.7    (23)   57 
  HONDURAS   53    1.0    46    0.9    51    1.1    7    2 
  JAMAICA   11    0.2    2    0.0    38    0.8    9    (27)
  MEXICO   627    11.5    433    8.1    454    9.5    194    173 
  NETHERLANDS   50    0.9    20    0.4    0    0.0    30    50 
  NICARAGUA   10    0.2    10    0.2    0    0.0    0    10 
  PANAMA   113    2.1    120    2.2    70    1.5    (7)   43 
  PARAGUAY   19    0.3    30    0.6    7    0.1    (11)   12 
  PERU   413    7.6    344    6.4    317    6.7    69    96 
  TRINIDAD & TOBAGO   155    2.8    76    1.4    114    2.4    79    41 
  UNITED STATES   0    0.0    22    0.4    0    0.0    (22)   0 
  URUGUAY   157    2.9    110    2.1    0    0.0    47    157 
  VENEZUELA   32    0.6    22    0.4    72    1.5    10    (40)
  OTHER   15    0.3    16    0.3    4    0.1    (1)   11 
                                         
TOTAL COMMERCIAL PORTFOLIO (1)   $5,444    100%  $5,354    100%  $4,759    100%  $90   $685 
                                         
UNEARNED INCOME AND COMMISSION (2)   (6)        (7)        (5)        1    (1)
                                         
TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION  $5,438        $5,347        $4,754        $91   $684 

  

(1) Includes book value of loans, selected deposits placed, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, equity investments and guarantees covering commercial risk and credit commitments).
(2) Represents unearned income and commission on loans.

 

 
 

 

EXHIBIT IX

TREASURY PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

  

   AT THE END OF,   Change in Amount 
   (A)   (B)   (C)         
COUNTRY  31MAR12   31DEC11   31MAR11   (A) - (B)   (A) - (C) 
                     
  BRAZIL  $70   $91   $103   $(21)  $(33)
  CHILE   0    0    28    0    (28)
  COLOMBIA   36    102    102    (66)   (66)
  DOMINICAN REPUBLIC   0    0    2    0    (2)
  EL SALVADOR   0    0    15    0    (15)
  GUATEMALA   5    5    11    0    (6)
  MEXICO   39    65    47    (26)   (8)
  PANAMA   53    58    54    (5)   (1)
  PERU   13    41    38    (28)   (25)
  MULTILATERAL ORGANIZATIONS   59    98    65    (39)   (6)
                          
TOTAL TREASURY PORTOFOLIO (1)  $275   $460   $465   $(185)  $(190)

 

(1) Includes securities available for sale and held to maturity, trading assets and contingent assets, which consist of credit default swap.  Excludes trading assets managed by Bladex Latam Fundo de Investimento Multimercado.

 

 
 

 

EXHIBIT X

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

  

   QUARTERLY INFORMATION   Change in Amount 
   (A)   (B)   (C)         
COUNTRY  1QTR12   4QTR11   1QTR11   (A) - (B)   (A) - (C) 
                     
  ARGENTINA  $97   $103   $57   $(6)  $40 
  BRAZIL   256    333    466    (77)   (210)
  CANADA   0    34    0    (34)   0 
  CHILE   189    152    111    37    78 
  COLOMBIA   300    242    405    58    (105)
  COSTA RICA   135    33    79    102    56 
  DOMINICAN REPUBLIC   125    193    305    (68)   (180)
  ECUADOR   182    199    197    (17)   (15)
  EL SALVADOR   12    21    1    (9)   11 
  GUATEMALA   108    87    38    21    70 
  HONDURAS   48    26    40    22    8 
  JAMAICA   74    37    47    37    27 
  MEXICO   435    370    174    65    261 
  NETHERLANDS   38    5    0    33    38 
  PANAMA   21    31    12    (10)   9 
  PARAGUAY   9    17    7    (8)   2 
  PERU   199    165    156    34    43 
  TRINIDAD & TOBAGO   168    96    71    72    97 
  UNITED STATES   58    87    0    (29)   58 
  URUGUAY   48    0    0    48    48 
  VENEZUELA   32    50    92    (18)   (60)
  OTHER   4    15    3    (11)   1 
                          
TOTAL CREDIT DISBURSED (1)  $2,538   $2,296   $2,261   $242   $277 

 

(1) Includes book value of loans, selected commercial deposits placed, fair value of selected investment securities, and contingencies (including confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk, credit default swap and credit commitments).