SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 Or 15d-16 Of The
Securities Exchange Act of 1934
Long form of Press Release
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BANCO LATINOAMERICANO DE EXPORTACIONES, S.A. |
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(Exact name of Registrant as specified in its Charter) |
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LATIN AMERICAN EXPORT BANK |
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(Translation of Registrant’s name into English) |
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Calle 50 y Aquilino de la Guardia |
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P.O. Box 0819-08730 |
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El Dorado, Panama City |
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Republic of Panama |
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(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.)
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Form 20-F |
x |
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Form 40-F |
o |
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(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.)
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Yes |
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No |
x |
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(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 15, 2007
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Banco Latinoamericano de Exportaciones, S.A. |
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By: |
/s/ Pedro Toll |
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Name: |
Pedro Toll |
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Title: |
Deputy Manager |
FOR IMMEDIATE RELEASE
Bladex Reports Net Income of $21.1 million for the Fourth Quarter of 2006
and Net Income of $57.9 million for Full Year 2006
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Fourth Quarter 2006 Financial Highlights: |
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Operating income (1) totaled $14.1 million, up 63% from the previous quarter, due to gains in Treasury activities and increased net interest income. |
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Net income for the fourth quarter totaled $21.1 million, up 87% from the third quarter, driven by a $5.4 million increase in operating income, and a $5.6 million recovery on impaired assets. |
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At December 31, 2006, the credit portfolio stood at $4.0 billion, 7% higher than the figure reported as of September 30, 2006. |
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At December 31, 2006, the Bank had reduced its non-accruing assets to zero, and had no past due loans in its portfolio. |
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On February 13, 2007, the Bank’s Board of Directors declared an increase in the quarterly dividend from $0.1875 per share to $0.22 per share, which will be payable on April 10, 2007, to shareholders of record as of March 30, 2007. |
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Full Year 2006 Financial Highlights: |
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Operating income was $39.3 million, up 36% from 2005, reflecting mostly a 30% increase in net interest income, an 8% increase in fee income, and higher gains in Treasury activities. |
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Net income amounted to $57.9 million, down 28% from 2005, due to lower credit provision reversals, as the Bank reduced its non-accruing portfolio by year-end to zero. |
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The average credit portfolio grew 20% year-over-year. |
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(1) Operating income refers to net income excluding reversals of provisions for credit losses, recoveries (impairment) on assets, and cumulative effect on prior years of changes in accounting principles. |
Panama City, Republic of Panama, February 15, 2007 – Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2006.
The table below depicts selected key financial figures and ratios for the periods indicated (the Bank’s financial statements are prepared in accordance with U.S. GAAP, and all figures are stated in U.S. dollars):
Key Financial Figures
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(US$million, except percentages and |
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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Net interest income |
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$45.3 |
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$58.8 |
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$12.5 |
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$15.6 |
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$16.7 |
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Operating income |
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$28.9 |
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$39.3 |
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$9.0 |
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$8.7 |
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$14.1 |
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Net income |
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$80.1 |
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$57.9 |
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$16.4 |
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$11.2 |
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$21.1 |
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EPS (2) |
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$2.08 |
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$1.56 |
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$0.43 |
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$0.31 |
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$0.58 |
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Return on average equity |
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12.9% |
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10.0% |
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10.6% |
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7.9% |
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14.5% |
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Tier 1 capital ratio |
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33.7% |
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24.4% |
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33.7% |
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27.3% |
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24.4% |
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Net interest margin |
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1.70% |
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1.76% |
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1.77% |
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1.78% |
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1.76% |
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Book value per common share |
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$16.19 |
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$16.07 |
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$16.19 |
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$15.55 |
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$16.07 |
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(2) Earnings per share calculations are based on the average number of shares outstanding during each period. |
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Comments from the Chief Executive Officer
Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the quarter’s results:
“The strong operating results for the fourth quarter bear evidence of our success at diversifying revenue sources across a stronger client franchise and a wider product range. In summary terms, the quarter was driven by the Commercial Division sustaining the momentum of the third quarter, and the Treasury Division yielding its best quarterly results since its transformation into a revenue center. Significantly, we believe that the improved operating results for the quarter reflect the benefits of our increasingly diversified revenue base.
The fourth quarter was also significant in that the Bank reduced its non-accruing portfolio to zero. In addition, as of December 31, 2006, Bladex did not have a single cent past due on its balance sheet.
As solid as the results for the fourth quarter were, I believe the year-on-year comparison most clearly demonstrates the underlying strength of the Bank’s business. When compared to 2005, for instance, operating income rose by 36%. These figures are particularly noteworthy given that our growth this quarter was strictly organic in nature. Throughout, Bladex has maintained the stability of its portfolio indicators: 74% of the Bank’s commercial portfolio remained trade finance in nature, with 71% due to mature within 12 months. As I think back on the Bank’s revenue trends over 2006, I view the 77% yearly growth in the Commercial Division’s operating income, excluding the restructured portfolio in Argentina, as the most relevant validation of Bladex’s client and product strategy.
From an expense management perspective --always a strength of Bladex -- we were pleased by the improvement of our efficiency ratio, which went from 46% in 2005 to 42% in 2006, despite the increased spending levels that accompany a growing business.
2
Not evident in the solid 2006 figures, but equally important for Bank’s future, are a number of internal projects undertaken to improve efficiency and the quality of internal controls. Chief among these was the installation of a state-of-the art technology platform, which allows Bladex the flexibility and speed of response needed to support the Bank’s product and client plans for the coming years.
Within a strong 2006, the one business line which trailed our expectations was digital identity, where the market for the service in Latin America is taking longer to mature than what we had anticipated. While the expenses involved by the project were relatively small, amounting to less than 3% of Bladex’s budget for 2006, we concluded that the management time involved could be put to better use for development of other businesses with quicker returns. As a result, we discontinued the project.
As Bladex moves forward in 2007, management is focusing on improving the Bank’s ROE levels. We expect to be operating in a Region that will reflect the generally increased economic and political uncertainties and volatility that apply to much of the world. Along with the continued expansion of the Bank’s business scope, this environment plays to Bladex’s strengths. We are thus looking forward to continued progress and another solid year. Our decision to raise the common quarterly dividend reflects this improved and improving profitability.”
BUSINESS OVERVIEW
Commercial Division
The Commercial Division incorporates the Bank’s financial intermediation and fee generation activities. Operating income from the Commercial Division includes net interest income from loans, fee income, and allocated operating expenses.
For the fourth quarter 2006, operating income from the Commercial Division amounted to $8.6 million, down 12% from the previous quarter, and 43% higher than the fourth quarter 2005. The results of the 2006 quarterly decrease reflected a 5% increase in net interest income (driven by a 10% increase in the average accruing loan portfolio), offset by a $1.7 million increase in allocated operating expenses.
3
For 2006, operating income from the Commercial Division amounted to $33.7 million, up 43% from the 2005, as a result of higher lending margins (4 bps), 22% growth in the average accruing loan portfolio, and a 10% increase in other income. Excluding revenue from the impaired portfolio, operating income from the Commercial Division’s increased by 77% during 2006.
During the fourth quarter the Bank’s average commercial portfolio increased by 4% on a sequential basis. During 2006, the Bank’s average commercial portfolio grew 21%.
As of December 31, 2006, the Bank’s commercial portfolio (excluding non-accruing credits) amounted to $3,634 million, compared to $3,387 million as of September 30, 2006, and compared to $3,365 million as of December 31, 2005. Of the $3,634 million commercial portfolio outstanding as of December 31, 2006, $65 million corresponded to Bladex’s new leasing activities.
The Bank continues to expand its presence in the corporate market. As of December 31, 2006, credit to corporations represented 45% of the total commercial portfolio (excluding non-accruing credits), compared to 30% a year ago. 72% of the Bank’s corporate portfolio represented trade financing (overall, 74% of the commercial portfolio consists of trade financing).
As of December 31, 2006, 71% of the commercial portfolio was scheduled to mature within one year, compared to 77% as of September 30, 2006.
4
Treasury Division
The Treasury Division incorporates the Bank’s investment securities, as well as proprietary asset management activities. Operating income from the Treasury Division is net of allocated operating expenses, and includes net interest income on securities, and gain and losses on derivatives and hedging activities, securities trading, securities sales, and foreign exchange transactions.
For the fourth quarter 2006, operating income from the Treasury Division amounted $5.5 million, driven by trading gains, compared to a loss of $1.1 million during the third quarter.
For 2006, operating income from the Treasury Division amounted to $5.6 million, compared to $5.4 million in 2005.
Please refer to Exhibit IX for more detailed information on business segment analysis.
CONSOLIDATED RESULTS OF OPERATIONS
Net income for the fourth quarter amounted to $21.1 million, up 87% from the third quarter 2006, driven by a $5.4 million increase in operating income, and $5.6 million in recoveries on impaired assets. Net income for 2006 was $57.9 million, down 28% from 2005, mostly due to lower credit provision reversals, reflecting the reduction of the Bank’s restructured portfolio during the year.
Operating income for fourth quarter 2006 amounted to $14.1 million, compared to $8.7 million in third quarter 2006, and to $9.0 million in fourth quarter 2005. The 63% ($5.4 million) quarterly increase in operating income was driven by gains in Treasury activities, and by increased net interest income.
5
NET INTEREST INCOME AND MARGINS
The table below shows the Bank’s net interest income, net interest margin, and net interest spread for the periods indicated:
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(In US$ million, except percentages) |
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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Interest Income: |
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Accruing assets |
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$108.1 |
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$200.6 |
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$34.4 |
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$53.6 |
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$63.0 |
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Non-accruing assets |
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8.7 |
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2.7 |
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0.7 |
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0.7 |
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0.0 |
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Interest Expense |
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(71.6) |
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(144.5) |
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(22.6) |
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(38.7) |
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(46.3) |
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Net Interest Income |
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$45.3 |
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$58.8 |
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$12.5 |
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$15.6 |
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$16.7 |
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Net Interest Margin (1) |
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1.70% |
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1.76% |
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1.77% |
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1.78% |
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1.76% |
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Net Interest Spread (2) |
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0.67% |
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0.70% |
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0.69% |
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0.78% |
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0.76% |
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(1) Net interest income divided by average balance of interest-earning assets. |
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(2) Average rate of average interest-earning assets, less average rate of average interest-bearing liabilities. |
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Net interest income for fourth quarter 2006 totaled $16.7 million, an increase of $1.2 million, or 7%, over the previous quarter, mostly due to a 10% increase in average loan portfolio balances.
Net interest margin for fourth quarter 2006, decreased by 2 bps compared to the previous quarter, mainly due to lower interest income on the reduced impaired portfolio, and to the impact of a relatively lower equity portion within the Bank’s overall funding structure.
Net interest income for 2006 increased by $13.6 million, or 30%, compared to 2005, reflecting a 26% increase in the average accruing loan and investment portfolio, as well as higher net interest margins (6 bps), the latter resulting from the impact of increasing interest rates on the Bank’s available capital, wider lending spreads, and lower cost of funds. These factors were partially offset by the continued collection of the Bank’s richly priced non-accruing portfolio over the period.
COMMISSION INCOME
The following table provides a breakdown of commission income for the periods indicated:
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(In US$ thousands) |
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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Letters of credit |
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$3,396 |
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$4,121 |
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$1,176 |
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$1,116 |
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$1,208 |
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Guarantees |
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2,012 |
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1,419 |
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379 |
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405 |
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245 |
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Loans and other |
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464 |
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773 |
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134 |
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233 |
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225 |
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Commission Income |
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$5,872 |
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$6,313 |
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$1,689 |
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$1,754 |
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$1,679 |
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Commission Expense |
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(48) |
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(28) |
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(22) |
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(5) |
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(6) |
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Commission Income, net |
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$5,824 |
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$6,285 |
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$1,667 |
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$1,749 |
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$1,673 |
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6
Commission income, net, for fourth quarter 2006 decreased by $76 thousand, or 4%, compared to third quarter 2006, mostly due to a decreased average volume in guarantees.
Compared to 2005, commission income, net, for 2006 increased by $461 thousand, or 8%, reflecting mostly a 12% increase in the average volume of Letters of Credit.
PROVISION FOR CREDIT LOSSES AND PORTFOLIO QUALITY
The following table shows information about the provision for credit losses, for the dates indicated:
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(In US$ million) |
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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Reversal (provision) for loan losses |
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54.2 |
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(11.8) |
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15.8 |
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(4.6) |
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(1.5) |
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Reversal (provision) for losses on off-balance sheet credit risk |
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(15.8) |
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24.9 |
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(8.3) |
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7.2 |
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2.9 |
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Total reversal of provision for credit losses before the cumulative effect on prior periods of a change in the credit loss reserve methodology |
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$38.4 |
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$13.0 |
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$7.5 |
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$2.6 |
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$1.4 |
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Cumulative effect on prior years (to December 31, 2004) of a change in the credit loss reserve methodology |
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2.7 |
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0.0 |
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0.0 |
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0.0 |
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0.0 |
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Total reversal of provision for credit losses |
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$41.1 |
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$13.0 |
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$7.5 |
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$2.6 |
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$1.4 |
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The $1.4 million and $13.0 million reversals of provision for credit losses during the fourth quarter and 2006, respectively, were mostly driven by the reduction of specific reserves assigned to non-accruing credits in Argentina. As of December 31, 2006, the Bank had no non-accruing credits outstanding, compared to $6.1 million as of September 30, 2006, and $42.2 million as of December 31, 2005.
OPERATING EXPENSES
The following table shows a breakdown of the components of operating expenses for the periods indicated:
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(In US$ thousands) |
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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Salaries and other employee expenses |
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$13,073 |
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$16,826 |
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$4,102 |
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$3,995 |
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$5,806 |
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Depreciation of premises and equipment |
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869 |
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1,406 |
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188 |
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464 |
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547 |
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Professional services |
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3,281 |
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2,671 |
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994 |
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502 |
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699 |
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Maintenance and repairs |
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1,172 |
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1,000 |
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322 |
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350 |
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175 |
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Other operating expenses |
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6,295 |
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7,026 |
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1,801 |
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1,709 |
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2,034 |
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Total Operating Expenses |
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$24,691 |
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$28,929 |
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$7,407 |
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$7,020 |
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$9,261 |
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7
4Q06 vs. 3Q06
During fourth quarter 2006, operating expenses increased $2.2 million, or 32%. The increase was mainly due to expenses associated with severance payments and variable compensation, increased depreciation expenses related to the Bank’s new technology platform, increased marketing expense, and legal and auditing fees related to the Bank’s new leasing and treasury activities.
2006 vs. 2005
During 2006, total operating expenses amounted to $28.9 million, compared to $24.7 million in 2005. The $4.2 million, or 17% increase, was mostly due to higher salary expenses associated with the development of the corporate segment and the implementation of new business initiatives, including proprietary asset management, leasing, and digital identity, as well as increased depreciation expenses related to the Bank’s new technology platform.
Excluding expenses related to new initiatives, year-to-date core business expenses grew 9%, while operating revenues increased 27%. With operating revenues growing 27%, twice as fast as expenses, the Bank’s efficiency ratio improved from 46% in 2005 to 42% in 2006.
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PERFORMANCE AND CAPITAL RATIOS
The following table sets forth the return on average stockholders’ equity and the return on average assets for the periods indicated:
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2005 |
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2006 |
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4Q05 |
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3Q06 |
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4Q06 |
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ROE (return on average stockholders’ equity) |
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12.9% |
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10.0% |
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10.6% |
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7.9% |
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14.5% |
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ROA (return on average assets) |
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3.0% |
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1.7% |
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2.3% |
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1.3% |
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2.2% |
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8
Although the Bank is not subject to the capital adequacy requirements of the U.S. Federal Reserve Board, if the U.S. Federal Reserve Board risk-based capital adequacy requirements were applied, the Bank’s Tier 1 and Total Capital Ratios at the dates indicated would be as follows:
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31-DEC-05 |
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30-SEP-06 |
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31-DEC-06 |
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Tier 1 Capital Ratio |
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33.7% |
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27.3% |
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24.4% |
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Total Capital Ratio |
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35.0% |
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28.5% |
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25.7% |
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As of December 31, 2006, the number of common shares outstanding was 36.3 million, compared to 38.1 million as of December 31, 2006, reflecting the completion of the Bank’s $50 million open market share repurchase program.
OTHER EVENTS
|
• |
Increased Quarterly Common Dividend: On February 13, 2007, the Bank’s Board of Directors declared an increase in the quarterly dividend from $0.1875 per share to $0.22 per share, which will be payable on April 10, 2007, to shareholders of record as of March 30, 2007. |
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• |
Quarterly Common Dividend Payments – On January 18, 2007, the Bank paid a regular quarterly dividend of $0.1875 per share pertaining to the fourth quarter to stockholders of record as of January 8, 2007. |
Note: Various numbers and percentages set forth in this press release have been rounded and, accordingly, may not total exactly.
9
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 function, 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 interest rates and of improving macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals. |
About Bladex
Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through December 31, 2006, Bladex had disbursed accumulated credits of over $144 billion.
10
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CONSOLIDATED BALANCE SHEETS |
EXHIBIT I |
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AT THE END OF, |
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(A) |
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(B) |
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(C) |
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(C) - (B) |
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% |
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(C) - (A) |
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% |
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(In US$ million) |
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ASSETS |
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Cash and due from banks (1) |
|
|
$230 |
|
|
$147 |
|
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$332 |
|
|
$185 |
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|
126 |
% |
|
$102 |
|
|
44 |
% |
|
Trading assets |
|
|
0 |
|
|
88 |
|
|
130 |
|
|
42 |
|
|
48 |
|
|
130 |
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n.a. |
(*) |
|
Securities available for sale |
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182 |
|
|
330 |
|
|
346 |
|
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16 |
|
|
5 |
|
|
164 |
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90 |
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Securities held to maturity |
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27 |
|
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135 |
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|
125 |
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(9 |
) |
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(7 |
) |
|
99 |
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|
372 |
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Loans |
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2,610 |
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|
2,794 |
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2,981 |
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|
187 |
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|
7 |
|
|
371 |
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|
14 |
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Less: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Allowance for loan losses |
|
|
(39 |
) |
|
(50 |
) |
|
(51 |
) |
|
(2 |
) |
|
3 |
|
|
(12 |
) |
|
30 |
|
|
Unearned income and deferred loan fees |
|
|
(6 |
) |
|
(4 |
) |
|
(4 |
) |
|
(0 |
) |
|
3 |
|
|
1 |
|
|
(21 |
) |
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|
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|
|
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|
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|
|
|
|
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|
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Loans, net |
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|
2,565 |
|
|
2,740 |
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|
2,925 |
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|
185 |
|
|
7 |
|
|
360 |
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|
14 |
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|
Customers’ liabilities under acceptances |
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|
111 |
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|
13 |
|
|
46 |
|
|
33 |
|
|
251 |
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|
(65 |
) |
|
(58 |
) |
|
Premises and equipment, net |
|
|
3 |
|
|
8 |
|
|
11 |
|
|
3 |
|
|
36 |
|
|
8 |
|
|
242 |
|
|
Accrued interest receivable |
|
|
30 |
|
|
49 |
|
|
55 |
|
|
6 |
|
|
12 |
|
|
25 |
|
|
83 |
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|
Other assets |
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|
12 |
|
|
11 |
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|
7 |
|
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(4 |
) |
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(37 |
) |
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(4 |
) |
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(37 |
) |
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|
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TOTAL ASSETS |
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|
$3,159 |
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|
$3,521 |
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|
$3,978 |
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|
$457 |
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|
13 |
% |
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$819 |
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26 |
% |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Deposits: |
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Demand |
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$28 |
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|
$105 |
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$132 |
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$27 |
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26 |
% |
|
$104 |
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|
366 |
% |
|
Time |
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|
1,018 |
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|
999 |
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|
924 |
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|
(75 |
) |
|
(7 |
) |
|
(94 |
) |
|
(9 |
) |
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|
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|
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|
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|
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Total Deposits |
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|
1,047 |
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|
1,104 |
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|
1,056 |
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|
(47 |
) |
|
(4 |
) |
|
10 |
|
|
1 |
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|
Securities sold under repurchase agreements |
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|
129 |
|
|
439 |
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|
438 |
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|
(0 |
) |
|
(0 |
) |
|
310 |
|
|
241 |
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|
Short-term borrowings |
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632 |
|
|
770 |
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|
1,157 |
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|
388 |
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|
50 |
|
|
525 |
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|
83 |
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|
Medium and long-term debt and borrowings |
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|
534 |
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|
462 |
|
|
559 |
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|
97 |
|
|
21 |
|
|
25 |
|
|
5 |
|
|
Trading liabilities |
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|
0 |
|
|
64 |
|
|
55 |
|
|
(9 |
) |
|
(14 |
) |
|
55 |
|
|
n.a. |
(*) |
|
Acceptances outstanding |
|
|
111 |
|
|
13 |
|
|
46 |
|
|
33 |
|
|
251 |
|
|
(65 |
) |
|
(58 |
) |
|
Accrued interest payable |
|
|
15 |
|
|
32 |
|
|
28 |
|
|
(3 |
) |
|
(11 |
) |
|
14 |
|
|
93 |
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|
Reserve for losses on off-balance sheet credit risk |
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|
52 |
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|
30 |
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|
27 |
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|
(3 |
) |
|
(10 |
) |
|
(25 |
) |
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(48 |
) |
|
Redeemable preferred stock (US$10 par value) |
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|
5 |
|
|
0 |
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|
0 |
|
|
0 |
|
|
0 |
|
|
(5 |
) |
|
(100 |
) |
|
Other liabilities |
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|
19 |
|
|
44 |
|
|
27 |
|
|
(17 |
) |
|
(39 |
) |
|
9 |
|
|
46 |
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|
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TOTAL LIABILITIES |
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|
$2,542 |
|
|
$2,957 |
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|
$3,394 |
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|
$437 |
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|
15 |
% |
|
$852 |
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|
34 |
% |
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STOCKHOLDERS’ EQUITY |
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|
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|
|
|
|
|
|
|
|
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|
Common stock, no par value, assigned value of US$6.67 |
|
|
280 |
|
|
280 |
|
|
280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital in exces of assigned value |
|
|
134 |
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|
135 |
|
|
135 |
|
|
|
|
|
|
|
|
|
|
|
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|
Capital reserves |
|
|
95 |
|
|
95 |
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Retained earnings |
|
|
213 |
|
|
190 |
|
|
205 |
|
|
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|
|
|
|
|
|
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|
|
Accumulated other comprehensive income |
|
|
1 |
|
|
(1 |
) |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury stock |
|
|
(106 |
) |
|
(135 |
) |
|
(135 |
) |
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|
|
|
|
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|
|
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|
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|
|
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|
TOTAL STOCKHOLDERS’ EQUITY |
|
|
$617 |
|
|
$564 |
|
|
$584 |
|
|
$20 |
|
|
3 |
% |
|
($33 |
) |
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
$3,159 |
|
|
$3,521 |
|
|
$3,978 |
|
|
$457 |
|
|
13 |
% |
|
$819 |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
(1) |
Cash and due from banks includes pledged of deposit in the amount of US$33 million at December 31, 2006, US$59 million at September 30, 2006, and US$5 million at December 31, 2005. |
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(*) |
“n.a.” means not applicable. |
11
|
|
CONSOLIDATED STATEMENTS OF INCOME |
EXHIBIT II |
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FOR THE THREE MONTHS ENDED |
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|
|||||||
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|
|
|
(A) |
|
(B) |
|
(C) |
|
(C) - (B) |
|
% |
|
(C) - (A) |
|
% |
|||||||
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|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
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|
|
(In US$ thousand, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
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|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$35,127 |
|
|
$54,268 |
|
|
$63,016 |
|
|
$8,748 |
|
|
16 |
% |
|
$27,888 |
|
|
79 |
% |
|
Interest expense |
|
|
(22,630 |
) |
|
(38,687 |
) |
|
(46,278 |
) |
|
(7,591 |
) |
|
20 |
|
|
(23,648 |
) |
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
12,498 |
|
|
15,582 |
|
|
16,738 |
|
|
1,156 |
|
|
7 |
|
|
4,240 |
|
|
34 |
|
|
Reversal (provision) for loan losses |
|
|
15,803 |
|
|
(4,575 |
) |
|
(1,526 |
) |
|
3,050 |
|
|
(67 |
) |
|
(17,329 |
) |
|
(110 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES |
|
|
28,301 |
|
|
11,006 |
|
|
15,212 |
|
|
4,206 |
|
|
38 |
|
|
(13,088 |
) |
|
(46 |
) |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal (provision) for losses on off-balance sheet credit risk |
|
|
(8,283 |
) |
|
7,158 |
|
|
2,949 |
|
|
(4,209 |
) |
|
(59 |
) |
|
11,232 |
|
|
(136 |
) |
|
Fees and commissions, net |
|
|
1,667 |
|
|
1,749 |
|
|
1,673 |
|
|
(76 |
) |
|
(4 |
) |
|
6 |
|
|
0 |
|
|
Derivatives and hedging activities |
|
|
2,336 |
|
|
(63 |
) |
|
115 |
|
|
179 |
|
|
(282 |
) |
|
(2,221 |
) |
|
(95 |
) |
|
Recoveries on assets, net of impairments |
|
|
0 |
|
|
0 |
|
|
5,551 |
|
|
5,551 |
|
|
0 |
|
|
5,551 |
|
|
n.a. |
(*) |
|
Trading gains (losses) |
|
|
0 |
|
|
(1,594 |
) |
|
4,849 |
|
|
6,443 |
|
|
(404 |
) |
|
4,849 |
|
|
n.a. |
(*) |
|
Net gains on sale of securities available for sale |
|
|
(40 |
) |
|
0 |
|
|
0 |
|
|
0 |
|
|
n.a. |
(*) |
|
40 |
|
|
(100 |
) |
|
Gain (loss) on foreign currency exchange |
|
|
(29 |
) |
|
(57 |
) |
|
(67 |
) |
|
(10 |
) |
|
18 |
|
|
(38 |
) |
|
131 |
|
|
Other income, net |
|
|
3 |
|
|
71 |
|
|
49 |
|
|
(21 |
) |
|
(30 |
) |
|
47 |
|
|
1,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OTHER INCOME (EXPENSE) |
|
|
(4,347 |
) |
|
7,263 |
|
|
15,118 |
|
|
7,856 |
|
|
108 |
|
|
19,465 |
|
|
(448 |
) |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and other employee expenses |
|
|
(4,102 |
) |
|
(3,995 |
) |
|
(5,806 |
) |
|
(1,811 |
) |
|
45 |
|
|
(1,704 |
) |
|
42 |
|
|
Depreciation of premises and equipment |
|
|
(188 |
) |
|
(464 |
) |
|
(547 |
) |
|
(83 |
) |
|
18 |
|
|
(359 |
) |
|
191 |
|
|
Professional services |
|
|
(994 |
) |
|
(502 |
) |
|
(699 |
) |
|
(197 |
) |
|
39 |
|
|
295 |
|
|
(30 |
) |
|
Maintenance and repairs |
|
|
(322 |
) |
|
(350 |
) |
|
(175 |
) |
|
175 |
|
|
(50 |
) |
|
146 |
|
|
(46 |
) |
|
Other operating expenses |
|
|
(1,801 |
) |
|
(1,709 |
) |
|
(2,034 |
) |
|
(325 |
) |
|
19 |
|
|
(233 |
) |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING EXPENSES |
|
|
(7,407 |
) |
|
(7,020 |
) |
|
(9,261 |
) |
|
(2,241 |
) |
|
32 |
|
|
(1,853 |
) |
|
25 |
|
|
INCOME BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE |
|
|
$16,546 |
|
|
$11,249 |
|
|
$21,070 |
|
|
$9,821 |
|
|
87 |
|
|
$4,524 |
|
|
27 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(150 |
) |
|
0 |
|
|
0 |
|
|
0 |
|
|
n.a. |
(*) |
|
150 |
|
|
(100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$16,396 |
|
|
$11,249 |
|
|
$21,070 |
|
|
$9,821 |
|
|
87 |
% |
|
$4,674 |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
0.43 |
|
|
0.31 |
|
|
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
0.43 |
|
|
0.31 |
|
|
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average basic shares |
|
|
38,097 |
|
|
36,335 |
|
|
36,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares |
|
|
38,420 |
|
|
36,859 |
|
|
36,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
2.3 |
% |
|
1.3 |
% |
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders’ equity |
|
|
10.6 |
% |
|
7.9 |
% |
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
1.77 |
% |
|
1.78 |
% |
|
1.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
0.69 |
% |
|
0.78 |
% |
|
0.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses to total average assets |
|
|
1.03 |
% |
|
0.79 |
% |
|
0.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
“n.a.” means not applicable. |
12
|
|
SUMMARY OF CONSOLIDATED FINANCIAL DATA |
|
|
|
(Consolidated Statements of Income, Balance Sheets, and Selected Financial Ratios) |
EXHIBIT III |
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE YEAR ENDED |
||||
|
|
|
|
|
||||
|
|
|
2005 |
|
2006 |
|
||
|
|
|
|
|
|
|
|
|
|
(In US$ thousand, except per share amounts & ratios) |
|
|
|
|
|
|
|
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
Net interest income |
|
|
$45,253 |
|
|
$58,837 |
|
|
Fees and commissions, net |
|
|
5,824 |
|
|
6,285 |
|
|
Reversal of provision for loan and off-balance sheet credit losses, net |
|
|
38,374 |
|
|
13,045 |
|
|
Derivatives and hedging activities |
|
|
2,338 |
|
|
(225 |
) |
|
Recoveries on assets, net of impairments |
|
|
10,206 |
|
|
5,551 |
|
|
Trading gains |
|
|
0 |
|
|
879 |
|
|
Net gains on sale of securities available for sale |
|
|
206 |
|
|
2,568 |
|
|
Gain (loss) on foreign currency exchange |
|
|
3 |
|
|
(253 |
) |
|
Other income, net |
|
|
5 |
|
|
143 |
|
|
Operating expenses |
|
|
(24,691 |
) |
|
(28,929 |
) |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLE |
|
|
$77,518 |
|
|
$57,902 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of a change in the credit loss reserve methodology |
|
|
2,733 |
|
|
0 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(150 |
) |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$80,101 |
|
|
$57,902 |
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA (In US$ millions): |
|
|
|
|
|
|
|
|
Investment securities and trading assets |
|
|
209 |
|
|
601 |
|
|
Loans, net |
|
|
2,565 |
|
|
2,925 |
|
|
Total assets |
|
|
3,159 |
|
|
3,978 |
|
|
Deposits |
|
|
1,047 |
|
|
1,056 |
|
|
Trading liabilities |
|
|
0 |
|
|
55 |
|
|
Securities sold under repurchase agreements |
|
|
129 |
|
|
438 |
|
|
Short-term borrowings |
|
|
632 |
|
|
1,157 |
|
|
Medium and long-term debt and borrowings |
|
|
534 |
|
|
559 |
|
|
Total liabilities |
|
|
2,542 |
|
|
3,394 |
|
|
Stockholders’ equity |
|
|
617 |
|
|
584 |
|
|
PER COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
Net income per share |
|
|
2.08 |
|
|
1.56 |
|
|
Diluted earnings per share |
|
|
2.06 |
|
|
1.54 |
|
|
Book value (period average) |
|
|
16.17 |
|
|
15.68 |
|
|
Book value (period end) |
|
|
16.19 |
|
|
16.07 |
|
|
Average basic shares |
|
|
38,550 |
|
|
37,065 |
|
|
Average diluted shares |
|
|
38,861 |
|
|
37,572 |
|
|
Basic shares period end |
|
|
38,097 |
|
|
36,329 |
|
|
SELECTED FINANCIAL RATIOS: |
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS: |
|
|
|
|
|
|
|
|
Return on average assets |
|
|
3.0 |
% |
|
1.7 |
% |
|
Return on average stockholders’ equity |
|
|
12.9 |
% |
|
10.0 |
% |
|
Net interest margin |
|
|
1.70 |
% |
|
1.76 |
% |
|
Net interest spread |
|
|
0.67 |
% |
|
0.70 |
% |
|
Total operating expenses to total average assets |
|
|
0.93 |
% |
|
0.85 |
% |
|
ASSET QUALITY RATIOS: |
|
|
|
|
|
|
|
|
Non-accruing loans and investments to total loan and selected investment portfolio (1) |
|
|
1.02 |
% |
|
0.00 |
% |
|
Charge offs net of recoveries to total loan portfolio (1) |
|
|
0.26 |
% |
|
0.00 |
% |
|
Allowance for loan losses to total loan portfolio (1) |
|
|
1.51 |
% |
|
1.72 |
% |
|
Allowance for losses on off-balance sheet credit risk to total contingencies |
|
|
6.56 |
% |
|
4.18 |
% |
|
CAPITAL RATIOS: |
|
|
|
|
|
|
|
|
Stockholders’ equity to total assets |
|
|
19.5 |
% |
|
14.7 |
% |
|
Tier 1 capital to risk-weighted assets |
|
|
33.7 |
% |
|
24.4 |
% |
|
Total capital to risk-weighted assets |
|
|
35.0 |
% |
|
25.7 |
% |
|
|
|
|
(1) |
Loan portfolio is presented net of unearned income and deferred loan fees. |
13
|
|
CONSOLIDATED STATEMENTS OF INCOME |
EXHIBIT IV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE YEAR ENDED |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
2005 |
|
2006 |
|
CHANGE |
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In US$ thousand) |
|
|
|
|
|
|
||||
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$116,823 |
|
|
$203,350 |
|
|
$86,527 |
|
|
74 |
% |
|
Interest expense |
|
|
(71,570 |
) |
|
(144,513 |
) |
|
(72,943 |
) |
|
102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
45,253 |
|
|
58,837 |
|
|
13,584 |
|
|
30 |
|
|
Reversal (provision) for loan losses |
|
|
54,155 |
|
|
(11,846 |
) |
|
(66,001 |
) |
|
(122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES |
|
|
99,408 |
|
|
46,991 |
|
|
(52,417 |
) |
|
(53 |
) |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal (provision) for losses on off-balance sheet credit risk |
|
|
(15,781 |
) |
|
24,891 |
|
|
40,673 |
|
|
(258 |
) |
|
Fees and commissions, net |
|
|
5,824 |
|
|
6,285 |
|
|
461 |
|
|
8 |
|
|
Derivatives and hedging activities |
|
|
2,338 |
|
|
(225 |
) |
|
(2,563 |
) |
|
(110 |
) |
|
Recoveries on assets, net of impairments |
|
|
10,206 |
|
|
5,551 |
|
|
(4,655 |
) |
|
(46 |
) |
|
Trading gains |
|
|
0 |
|
|
879 |
|
|
879 |
|
|
n.a. |
(*) |
|
Net gains on sale of securities available for sale |
|
|
206 |
|
|
2,568 |
|
|
2,362 |
|
|
1,148 |
|
|
Gain (loss) on foreign currency exchange |
|
|
3 |
|
|
(253 |
) |
|
(256 |
) |
|
(8,413 |
) |
|
Other income, net |
|
|
5 |
|
|
143 |
|
|
138 |
|
|
2,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OTHER INCOME (EXPENSE) |
|
|
2,801 |
|
|
39,840 |
|
|
37,039 |
|
|
1,323 |
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and other employee expenses |
|
|
(13,073 |
) |
|
(16,826 |
) |
|
(3,752 |
) |
|
29 |
|
|
Depreciation of premises and equipment |
|
|
(869 |
) |
|
(1,406 |
) |
|
(537 |
) |
|
62 |
|
|
Professional services |
|
|
(3,281 |
) |
|
(2,671 |
) |
|
610 |
|
|
(19 |
) |
|
Maintenance and repairs |
|
|
(1,172 |
) |
|
(1,000 |
) |
|
172 |
|
|
(15 |
) |
|
Other operating expenses |
|
|
(6,295 |
) |
|
(7,026 |
) |
|
(731 |
) |
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING EXPENSES |
|
|
(24,691 |
) |
|
(28,929 |
) |
|
(4,238 |
) |
|
17 |
|
|
INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLE |
|
|
$77,518 |
|
|
$57,902 |
|
|
($19,616 |
) |
|
(25 |
) |
|
Cumulative effect on prior years (to Dec. 31, 2004) of a change in the credit loss reserve methodology |
|
|
2,733 |
|
|
0 |
|
|
(2,733 |
) |
|
(100 |
) |
|
Cumulative effect on prior years (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(150 |
) |
|
0 |
|
|
150 |
|
|
(100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$80,101 |
|
|
$57,902 |
|
|
($22,200 |
) |
|
(28 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
“n.a.” means not applicable. |
14
|
|
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES |
EXHIBIT V |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED, |
|||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
December 31, 2005 |
|
September 30, 2006 |
|
December 31, 2006 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
AVERAGE |
|
INTEREST |
|
AVG. |
|
AVERAGE |
|
INTEREST |
|
AVG. |
|
AVERAGE |
|
INTEREST |
|
AVG. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In US$ million) |
|||||||||||||||||||||||||
|
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
|
|
$161 |
|
|
$1.6 |
|
|
4.00 |
% |
|
$200 |
|
|
$2.7 |
|
|
5.28 |
% |
|
$151 |
|
|
$1.9 |
|
|
5.01 |
% |
|
Loans, net of unearned income & deferred loan fees |
|
|
2,375 |
|
|
29.6 |
|
|
4.87 |
|
|
2,741 |
|
|
43.7 |
|
|
6.24 |
|
|
3,026 |
|
|
49.2 |
|
|
6.37 |
|
|
Impaired loans |
|
|
40 |
|
|
0.7 |
|
|
6.86 |
|
|
22 |
|
|
0.7 |
|
|
12.77 |
|
|
1 |
|
|
0.0 |
|
|
8.05 |
|
|
Trading assets |
|
|
0 |
|
|
0.0 |
|
|
n.a. |
(*) |
|
33 |
|
|
0.2 |
|
|
2.54 |
|
|
128 |
|
|
4.9 |
|
|
15.10 |
|
|
Investment securities |
|
|
231 |
|
|
3.2 |
|
|
5.45 |
|
|
469 |
|
|
7.0 |
|
|
5.80 |
|
|
463 |
|
|
6.9 |
|
|
5.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST EARNING ASSETS |
|
|
$2,807 |
|
|
$35.1 |
|
|
4.90 |
% |
|
$3,465 |
|
|
$54.3 |
|
|
6.13 |
% |
|
$3,768 |
|
|
$63.0 |
|
|
6.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest earning assets |
|
|
103 |
|
|
|
|
|
|
|
|
79 |
|
|
|
|
|
|
|
|
93 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(58 |
) |
|
|
|
|
|
|
|
(45 |
) |
|
|
|
|
|
|
|
(50 |
) |
|
|
|
|
|
|
|
Other assets |
|
|
12 |
|
|
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
$2,865 |
|
|
|
|
|
|
|
|
$3,522 |
|
|
|
|
|
|
|
|
$3,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING LIABILITITES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
$989 |
|
|
$10.3 |
|
|
4.07 |
% |
|
$1,205 |
|
|
$16.3 |
|
|
5.28 |
% |
|
$1,092 |
|
|
$14.9 |
|
|
5.33 |
% |
|
Trading liabilities |
|
|
0 |
|
|
0.0 |
|
|
n.a. |
(*) |
|
31 |
|
|
0.4 |
|
|
4.52 |
|
|
72 |
|
|
3.6 |
|
|
19.35 |
|
|
Securities sold under repurchase agreement and short-term borrowings |
|
|
572 |
|
|
5.9 |
|
|
4.03 |
|
|
1,132 |
|
|
15.3 |
|
|
5.30 |
|
|
1,465 |
|
|
20.4 |
|
|
5.44 |
|
|
Medium and long-term debt and borrowings |
|
|
544 |
|
|
6.4 |
|
|
4.63 |
|
|
465 |
|
|
6.7 |
|
|
5.65 |
|
|
503 |
|
|
7.5 |
|
|
5.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST BEARING LIABILITIES |
|
|
$2,106 |
|
|
$22.6 |
|
|
4.21 |
% |
|
$2,832 |
|
|
$38.7 |
|
|
5.34 |
% |
|
$3,132 |
|
|
$46.3 |
|
|
5.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest bearing liabilities and other liabilities |
|
|
$147 |
|
|
|
|
|
|
|
|
$126 |
|
|
|
|
|
|
|
|
$132 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
2,252 |
|
|
|
|
|
|
|
|
2,958 |
|
|
|
|
|
|
|
|
3,264 |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
612 |
|
|
|
|
|
|
|
|
564 |
|
|
|
|
|
|
|
|
575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
$2,865 |
|
|
|
|
|
|
|
|
$3,522 |
|
|
|
|
|
|
|
|
$3,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
0.69 |
% |
|
|
|
|
|
|
|
0.78 |
% |
|
|
|
|
|
|
|
0.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AND NET INTEREST MARGIN |
|
|
|
|
|
$12.5 |
|
|
1.77 |
% |
|
|
|
|
$15.6 |
|
|
1.78 |
% |
|
|
|
|
$16.7 |
|
|
1.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
“n.a.” means not applicable. |
15
|
|
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES |
EXHIBIT VI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE YEAR ENDED DECEMBER 31, |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
2005 |
|
2006 |
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
AVERAGE |
|
|
INTEREST |
|
|
AVG. |
|
|
AVERAGE |
|
|
INTEREST |
|
|
AVG. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In US$ million) |
||||||||||||||||
|
INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
|
|
$158 |
|
|
$5.1 |
|
|
3.19 |
% |
|
$180 |
|
|
$9.0 |
|
|
4.90 |
% |
|
Loans, net of unearned income & deferred loan fees |
|
|
2,211 |
|
|
93.0 |
|
|
4.15 |
|
|
2,697 |
|
|
163.1 |
|
|
5.96 |
|
|
Impaired loans |
|
|
106 |
|
|
8.7 |
|
|
8.10 |
|
|
18 |
|
|
2.7 |
|
|
14.77 |
|
|
Trading assets |
|
|
0 |
|
|
0.0 |
|
|
n.a. |
(*) |
|
50 |
|
|
5.8 |
|
|
11.46 |
|
|
Investment securities |
|
|
181 |
|
|
10.0 |
|
|
5.43 |
|
|
390 |
|
|
22.8 |
|
|
5.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST EARNING ASSETS |
|
|
$2,656 |
|
|
$116.8 |
|
|
4.34 |
% |
|
$3,336 |
|
|
$203.3 |
|
|
6.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest earning assets |
|
|
81 |
|
|
|
|
|
|
|
|
90 |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
(79 |
) |
|
|
|
|
|
|
|
(44 |
) |
|
|
|
|
|
|
|
Other assets |
|
|
9 |
|
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
$2,667 |
|
|
|
|
|
|
|
|
$3,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST BEARING LIABILITITES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
$869 |
|
|
$29.6 |
|
|
3.36 |
% |
|
$1,106 |
|
|
$56.6 |
|
|
5.05 |
% |
|
Trading liabilities |
|
|
0 |
|
|
0.0 |
|
|
n.a. |
(*) |
|
35 |
|
|
4.6 |
|
|
13.17 |
|
|
Securities sold under repurchase agreement and short-term borrowings |
|
|
605 |
|
|
20.4 |
|
|
3.33 |
|
|
1,044 |
|
|
55.0 |
|
|
5.20 |
|
|
Medium and long-term debt and borrowings |
|
|
451 |
|
|
21.6 |
|
|
4.72 |
|
|
500 |
|
|
28.3 |
|
|
5.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL INTEREST BEARING LIABILITIES |
|
|
$1,925 |
|
|
$71.6 |
|
|
3.67 |
% |
|
$2,684 |
|
|
$144.5 |
|
|
5.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non interest bearing liabilities and other liabilities |
|
|
118 |
|
|
|
|
|
|
|
|
137 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
2,044 |
|
|
|
|
|
|
|
|
2,821 |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
623 |
|
|
|
|
|
|
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
$2,667 |
|
|
|
|
|
|
|
|
$3,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
0.67 |
% |
|
|
|
|
|
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AND NET INTEREST MARGIN |
|
|
|
|
|
$45.3 |
|
|
1.70 |
% |
|
|
|
|
$58.8 |
|
|
1.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) |
“n.a.” means not applicable. |
16
|
|
CONSOLIDATED STATEMENT OF INCOME |
EXHIBIT VII |
|
|
(In US$ thousand, except ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR |
|
|
FOR THE THREE MONTHS ENDED |
|
YEAR |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
DEC 31/05 |
|
|
MAR 31/06 |
|
|
JUN 30/06 |
|
|
SEP 30/06 |
|
|
DEC 31/06 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
$116,823 |
|
|
35,127 |
|
|
$38,109 |
|
|
$47,957 |
|
|
$54,268 |
|
|
$63,016 |
|
|
$203,350 |
|
|
Interest expense |
|
|
(71,570 |
) |
|
(22,630 |
) |
|
(26,527 |
) |
|
(33,021 |
) |
|
(38,687 |
) |
|
(46,278 |
) |
|
(144,513 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
|
45,253 |
|
|
12,498 |
|
|
11,581 |
|
|
14,936 |
|
|
15,582 |
|
|
16,738 |
|
|
58,837 |
|
|
Reversal (provision) for loan losses |
|
|
54,155 |
|
|
15,803 |
|
|
(3,772 |
) |
|
(1,973 |
) |
|
(4,575 |
) |
|
(1,526 |
) |
|
(11,846 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES |
|
|
99,408 |
|
|
28,301 |
|
|
7,810 |
|
|
12,962 |
|
|
11,006 |
|
|
15,212 |
|
|
46,991 |
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal (provision) for losses on off-balance sheet credit risk |
|
|
(15,781 |
) |
|
(8,283 |
) |
|
11,183 |
|
|
3,602 |
|
|
7,158 |
|
|
2,949 |
|
|
24,891 |
|
|
Fees and commissions, net |
|
|
5,824 |
|
|
1,667 |
|
|
1,571 |
|
|
1,293 |
|
|
1,749 |
|
|
1,673 |
|
|
6,285 |
|
|
Derivatives and hedging activities |
|
|
2,338 |
|
|
2,336 |
|
|
(170 |
) |
|
(106 |
) |
|
(63 |
) |
|
115 |
|
|
(225 |
) |
|
Recoveries on assets, net of impairments |
|
|
10,206 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
5,551 |
|
|
5,551 |
|
|
Trading gains (losses) |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
(2,376 |
) |
|
(1,594 |
) |
|
4,849 |
|
|
879 |
|
|
Net gains on sale of securities available for sale |
|
|
206 |
|
|
(40 |
) |
|
2,568 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
2,568 |
|
|
Gain (loss) on foreign currency exchange |
|
|
3 |
|
|
(29 |
) |
|
14 |
|
|
(144 |
) |
|
(57 |
) |
|
(67 |
) |
|
(253 |
) |
|
Other income, net |
|
|
5 |
|
|
3 |
|
|
0 |
|
|
22 |
|
|
71 |
|
|
49 |
|
|
143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OTHER INCOME (EXPENSE) |
|
|
2,801 |
|
|
(4,347 |
) |
|
15,167 |
|
|
2,291 |
|
|
7,263 |
|
|
15,118 |
|
|
39,840 |
|
|
TOTAL OPERATING EXPENSES |
|
|
(24,691 |
) |
|
(7,407 |
) |
|
(6,327 |
) |
|
(6,321 |
) |
|
(7,020 |
) |
|
(9,261 |
) |
|
(28,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLE |
|
|
$77,518 |
|
|
$16,546 |
|
|
$16,650 |
|
|
$8,933 |
|
|
$11,249 |
|
|
$21,070 |
|
|
$57,902 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of a change in the credit loss reserve methodology |
|
|
2,733 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(150 |
) |
|
(150 |
) |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$80,101 |
|
|
$16,396 |
|
|
$16,650 |
|
|
$8,933 |
|
|
$11,249 |
|
|
$21,070 |
|
|
$57,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
$2.08 |
|
|
$0.43 |
|
|
$0.44 |
|
|
$0.24 |
|
|
$0.31 |
|
|
$0.58 |
|
|
$1.56 |
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
3.0 |
% |
|
2.3 |
% |
|
2.3 |
% |
|
1.1 |
% |
|
1.3 |
% |
|
2.2 |
% |
|
1.7 |
% |
|
Return on average stockholders’ equity |
|
|
12.9 |
% |
|
10.6 |
% |
|
11.1 |
% |
|
6.2 |
% |
|
7.9 |
% |
|
14.5 |
% |
|
10.0 |
% |
|
Net interest margin |
|
|
1.70 |
% |
|
1.77 |
% |
|
1.62 |
% |
|
1.87 |
% |
|
1.78 |
% |
|
1.76 |
% |
|
1.76 |
% |
|
Net interest spread |
|
|
0.67 |
% |
|
0.69 |
% |
|
0.44 |
% |
|
0.82 |
% |
|
0.78 |
% |
|
0.76 |
% |
|
0.70 |
% |
|
Total operating expenses to average assets |
|
|
0.93 |
% |
|
1.03 |
% |
|
0.86 |
% |
|
0.78 |
% |
|
0.79 |
% |
|
0.96 |
% |
|
0.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
|
EXHIBIT VIII |
|
CREDIT PORTFOLIO |
|
DISTRIBUTION BY COUNTRY |
|
(In US$ million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COUNTRY |
|
|
(A) |
|
(B) |
|
(C) |
|
(C) - (B) |
|
(C) - (A) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARGENTINA |
|
|
$71 |
|
|
$148 |
|
|
$216 |
|
|
$68 |
|
|
$145 |
|
|
BOLIVIA |
|
|
0 |
|
|
5 |
|
|
5 |
|
|
0 |
|
|
5 |
|
|
BRAZIL |
|
|
1,453 |
|
|
1,521 |
|
|
1,663 |
|
|
142 |
|
|
210 |
|
|
CHILE |
|
|
315 |
|
|
226 |
|
|
207 |
|
|
(19 |
) |
|
(108 |
) |
|
COLOMBIA |
|
|
261 |
|
|
198 |
|
|
329 |
|
|
131 |
|
|
68 |
|
|
COSTA RICA |
|
|
86 |
|
|
138 |
|
|
97 |
|
|
(41 |
) |
|
11 |
|
|
DOMINICAN REPUBLIC |
|
|
128 |
|
|
98 |
|
|
127 |
|
|
29 |
|
|
(1 |
) |
|
ECUADOR |
|
|
204 |
|
|
168 |
|
|
160 |
|
|
(8 |
) |
|
(44 |
) |
|
EL SALVADOR |
|
|
102 |
|
|
94 |
|
|
88 |
|
|
(5 |
) |
|
(14 |
) |
|
GUATEMALA |
|
|
45 |
|
|
82 |
|
|
95 |
|
|
13 |
|
|
50 |
|
|
HONDURAS |
|
|
27 |
|
|
42 |
|
|
37 |
|
|
(5 |
) |
|
10 |
|
|
JAMAICA |
|
|
47 |
|
|
67 |
|
|
49 |
|
|
(18 |
) |
|
2 |
|
|
MEXICO |
|
|
204 |
|
|
238 |
|
|
283 |
|
|
46 |
|
|
79 |
|
|
NICARAGUA |
|
|
2 |
|
|
9 |
|
|
10 |
|
|
1 |
|
|
8 |
|
|
PANAMA |
|
|
176 |
|
|
271 |
|
|
220 |
|
|
(51 |
) |
|
44 |
|
|
PERU |
|
|
230 |
|
|
224 |
|
|
280 |
|
|
57 |
|
|
50 |
|
|
TRINIDAD & TOBAGO |
|
|
177 |
|
|
147 |
|
|
104 |
|
|
(43 |
) |
|
(74 |
) |
|
URUGUAY |
|
|
7 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
(7 |
) |
|
VENEZUELA |
|
|
60 |
|
|
72 |
|
|
35 |
|
|
(38 |
) |
|
(25 |
) |
|
OTHER |
|
|
21 |
|
|
0 |
|
|
1 |
|
|
0 |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CREDIT PORTFOLIO (1) |
|
|
$3,616 |
|
|
$3,748 |
|
|
$4,006 |
|
|
$258 |
|
|
$390 |
|
|
UNEARNED INCOME AND COMMISSION (2) |
|
|
(6 |
) |
|
(4 |
) |
|
(4 |
) |
|
(0 |
) |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION |
|
|
$3,610 |
|
|
$3,744 |
|
|
$4,001 |
|
|
$258 |
|
|
$391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes book value of loans, fair value of selected investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments). |
|
|
|
|
(2) |
Represents unearned income and commission on loans. |
18
|
|
|
EXHIBIT IX |
|
|
BUSINESS SEGMENT ANALYSIS |
|
|
|
(In US$ million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE YEAR ENDED |
|
FOR THE THREE MONTHS ENDED |
|||||||||||
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
DEC 31/05 |
|
DEC 31/06 |
|
DEC 31/05 |
|
SEP 30/06 |
|
DEC 31/06 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
COMMERCIAL DIVISION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$39.4 |
|
|
$50.9 |
|
|
$10.8 |
|
|
$13.6 |
|
|
$14.3 |
|
|
Other income (1) |
|
|
5.8 |
|
|
6.4 |
|
|
1.7 |
|
|
1.8 |
|
|
1.7 |
|
|
Operating expenses |
|
|
(21.7 |
) |
|
(23.7 |
) |
|
(6.4 |
) |
|
(5.6 |
) |
|
(7.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (2) |
|
|
23.5 |
|
|
33.7 |
|
|
6.0 |
|
|
9.7 |
|
|
8.6 |
|
|
Reversal of provision for loan and off-balance sheet credit losses, net |
|
|
38.4 |
|
|
13.0 |
|
|
7.5 |
|
|
2.6 |
|
|
1.4 |
|
|
Cumulative effect on prior years (to Dec. 31, 2004) of a change in the credit loss reserve methodology |
|
|
2.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Cumulative effect on prior periods (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(0.1 |
) |
|
— |
|
|
(0.1 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$64.5 |
|
|
$46.7 |
|
|
$13.4 |
|
|
$12.3 |
|
|
$10.0 |
|
|
Commercial Average Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of discounts |
|
|
2,317 |
|
|
2,715 |
|
|
2,415 |
|
|
2,763 |
|
|
3,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average interest-earning assets (3) |
|
|
2,317 |
|
|
2,715 |
|
|
2,415 |
|
|
2,763 |
|
|
3,027 |
|
|
TREASURY DIVISION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
5.9 |
|
|
7.9 |
|
|
1.7 |
|
|
2.0 |
|
|
2.5 |
|
|
Other income (1) |
|
|
2.5 |
|
|
3.0 |
|
|
2.3 |
|
|
(1.7 |
) |
|
4.9 |
|
|
Operating expenses |
|
|
(3.0 |
) |
|
(5.2 |
) |
|
(1.0 |
) |
|
(1.4 |
) |
|
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (2) |
|
|
5.4 |
|
|
5.6 |
|
|
3.0 |
|
|
(1.1 |
) |
|
5.5 |
|
|
Recoveries on assets, net of impairments |
|
|
10.2 |
|
|
5.6 |
|
|
— |
|
|
— |
|
|
5.6 |
|
|
Cumulative effect on prior periods (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(0.0 |
) |
|
— |
|
|
(0.0 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$15.6 |
|
|
$11.2 |
|
|
$3.0 |
|
|
$ (1.1 |
) |
|
$11.0 |
|
|
Treasury Average Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
158 |
|
|
180 |
|
|
161 |
|
|
200 |
|
|
151 |
|
|
Securities available for sale and securities held to maturity |
|
|
181 |
|
|
390 |
|
|
231 |
|
|
469 |
|
|
463 |
|
|
Trading assets |
|
|
— |
|
|
50 |
|
|
— |
|
|
33 |
|
|
128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average interest-earning assets (4) |
|
|
339 |
|
|
620 |
|
|
392 |
|
|
702 |
|
|
741 |
|
|
CONSOLIDATED: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
45.3 |
|
|
58.8 |
|
|
12.5 |
|
|
15.6 |
|
|
16.7 |
|
|
Other income (1) |
|
|
8.4 |
|
|
9.4 |
|
|
3.9 |
|
|
0.1 |
|
|
6.6 |
|
|
Operating expenses |
|
|
(24.7 |
) |
|
(28.9 |
) |
|
(7.4 |
) |
|
(7.0 |
) |
|
(9.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (2) |
|
|
28.9 |
|
|
39.3 |
|
|
9.0 |
|
|
8.7 |
|
|
14.1 |
|
|
Reversal of provision for loan and off-balance sheet credit losses, net |
|
|
38.4 |
|
|
13.0 |
|
|
7.5 |
|
|
2.6 |
|
|
1.4 |
|
|
Recoveries on assets, net of impairments |
|
|
10.2 |
|
|
5.6 |
|
|
— |
|
|
— |
|
|
5.6 |
|
|
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology |
|
|
2.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Cumulative effect on prior periods (to Dec. 31, 2004) of an early adoption of the fair-value based method of accounting stock-based employee compensation |
|
|
(0.2 |
) |
|
— |
|
|
(0.2 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
|
$80.1 |
|
|
$57.9 |
|
|
$16.4 |
|
|
$11.2 |
|
|
$21.1 |
|
|
Total Average Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets |
|
|
2,656 |
|
|
3,336 |
|
|
2,807 |
|
|
3,465 |
|
|
3,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average interest-earning assets |
|
|
$2,656 |
|
|
$3,336 |
|
|
$2,807 |
|
|
$3,465 |
|
|
$3,768 |
|
|
|
|
(1) Other income excludes reversals (provisions) for losses on off balance sheet credit risks and recoveries (impairment) on assets. |
|
|
|
(2) Net operating income refers to net income excluding reversals of provisions for credit losses, recoveries (impairment) on assets, and cumulative effect on prior years of changes in accounting principles. |
|
|
|
(3) Includes loans, net of unearned income and deferred loan fees. |
|
|
|
(4) Includes cash and due from banks, interest-bearing deposits with banks, securities available for sale and held to maturity, trading securities. |
|
|
|
The bank has aligned its operations into two major business segments, based on the nature of clients, products and on credit risk standards. |
|
|
|
The Commercial division primarily provides foreign trade and working capital financing to Latin American banks and exporting corporations, through loans, letters of credit and acceptances, guarantees covering commercial and country risk, and credit commitments. This area also covers trade related services to its Latin American clients, such as payments, digital identity solutions and e-learning, some of which are in the process of being implemented. |
|
The Treasury division is responsible for managing the Bank’s asset and liability position, liquidity, secondary market available for sale portfolio, the proprietary trading desk, and, currency and interest rate risk. |
|
|
|
Interest expenses and overhead operating expenses are allocated based on average credits. |
19
Conference Call Information
There will be a conference call to discuss the Bank’s quarterly results on Friday, February 16, 2007, at 11:00 a.m., New York City time. For those interested in participating, please dial (888) 335-5539 in the United States or, if outside the United States, (973) 582-2857. Participants should use conference ID# 8403785, and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at www.blx.com.
The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through February 23, 2007. Please dial (877) 519-4471 or (973) 341-3080, and follow the instructions. The Conference ID# for the replayed call is 8403785.
For more information, please access www.blx.com or contact:
Mr. Carlos Yap S. |
Chief Financial Officer |
Bladex |
Calle 50 y Aquilino de la Guardia |
P.O. Box: 0819-08730 |
Panama City, Panama |
Tel: (507) 210-8563 |
Fax: (507) 269-6333 |
e-mail address: cyap@blx.com |
|
Investor Relations Firm: |
i-advize Corporate Communications, Inc. |
Mrs. Melanie Carpenter / Mr. Peter Majeski |
82 Wall Street, Suite 805 |
New York, NY 10005 |
Tel: (212) 406-3690 |
e-mail address: bladex@i-advize.com |
20