1st Quarter Results
23 April 2007 - 4:07PM
UK Regulatory
Bladex Reports Net Income of $14.8 million for the First Quarter of 2007
PANAMA CITY, April 23 -- Banco Latinoamericano de Exportaciones, S.A.
(NYSE: BLX) ("Bladex" or the "Bank") announced today its results for the
first quarter ended March 31, 2007.
Financial Highlights
First Quarter 2007 vs. First Quarter 2006:
- Operating income(1) increased 52% from the first quarter of 2006,
driven by higher Treasury Division revenues and a 47% increase in net
interest income, the latter resulting mostly from a 23% increase in the
average loan portfolio and a 20 bps increase in net interest margins.
- Efficiency ratio improved to 35% from 41%.
- The credit portfolio grew 17%.
- Net income declined 11% due to lower credit provision reversals.
First Quarter 2007 vs. Fourth Quarter 2006:
- Driven by higher Commercial Division and securities revenue, and lower
operating expenses, which offset a reduction in trading gains from the
strong levels of the fourth quarter, operating income was maintained at
$14.0 million.
- At March 31, 2007, the credit portfolio stood at $4.2 billion, 5%
higher than at December 31, 2006.
- Deposits grew 31%, totaling $1.4 billion at March 31, 2007.
- Net income amounted to $14.8 million, down 30% from the previous
quarter, due to lower credit provision reversals and no asset
recoveries during the quarter.
The table below depicts selected key financial figures and ratios for the
periods indicated (the Bank's financial statements are prepared in accordance
with U.S. GAAP, and all figures are stated in U.S. dollars):
Key Financial Figures
(US$ million, except
percentages and per 1Q06 4Q06 1Q07
share amounts)
Net interest income $11.6 $16.7 $17.1
Operating income $9.2 $14.1 $14.0
Net income $16.7 $21.1 $14.8
EPS (2) $0.44 $0.58 $0.41
Return on average equity 11.1% 14.5% 10.2%
Tier 1 capital ratio 32.2% 24.4% 22.3%
Net interest margin 1.62% 1.76% 1.82%
Book value per common share $15.40 $16.07 $16.24
Total assets $3,105 $3,978 $4,274
Total stockholders' equity $582 $584 $590
(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.
(2) Earnings per share calculations are based on the average number of
shares outstanding during each period.
Comments from the Chief Executive Officer
Jaime Rivera, Bladex's Chief Executive Officer, stated the following
regarding the quarter's results: "The operating results of the first quarter
represent the strongest start of the year that Bladex has enjoyed since we
started to transform the business model three years ago. Our commercial
operations continued growing at a rate exceeding our goal of three to four
times the underlying growth rate of the region, while posting the strongest
increase in net lending margins that we have seen in 16 quarters. Along with a
solid performance in the Available for Sale portfolio, these increased
revenues offset the smaller trading gains generated in the Treasury Division
after a particularly solid fourth quarter. The results are, in our opinion,
clear evidence of the value of the diversification instilled in our revenue
engine.
"With revenue growth continuing to outpace the expenses needed to support
an expanding business, Bladex's efficiency levels improved yet again, reaching
35%, placing the Bank in a privileged competitive position within the
industry.
"There were significant positive developments on the liability side of the
balance sheets as well, with deposits increasing a full 31% during the
quarter. I consider the growth to be of special significance as it was fueled
by deposits from Latin American state institutions.
"In financial terms, the 10.2% ROE represents the first time since 2002
that Bladex has reached double digit return levels without the effect of
provision reversals related to the impaired portfolio in Argentina. It is
noteworthy that the Bank reached this result while working off a strong Tier 1
capitalization of 22.3%. I believe this constitutes further proof of Bladex's
ability to meet our objective of steadily improving ROE levels through careful
growth.
"In summary, Bladex's business keeps growing, our profitability improving,
our efficiency strengthening, and our credit quality remains extraordinarily
solid. These trends affirm Bladex's commitment to add value to its
shareholders, while fulfilling the Bank's critically important mission of
supporting trade in the Region."
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 the following: 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 March 31, 2007, Bladex had disbursed accumulated credits of over $146
billion.
Bladex is listed on the New York Stock Exchange. Further investor
information can be found at www.blx.com. A LONGER VERSION OF THIS PRESS
RELEASE WITH DETAILED INFORMATION WILL BE FILED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION, AND CAN BE OBTAINED FROM BLADEX AT:
Bladex, Head Office, Calle 50 y Aquilino de la Guardia, Panama City,
Panama
Attention: Mr. Carlos Yap, Chief Financial Officer
Tel. No. +1-507-210-8563, e-mail: cyap@blx.com,
-or-
Investor Relations Firm
i-advize Corporate Communications, Inc.
Mrs. Melanie Carpenter / Mr. Peter Majeski
Tel: +1-212-406-3690, e-mail: bladex@i-advize.com
Conference Call Information
There will be a conference call to discuss the Bank's quarterly results on
Monday, April 23, 2007, at 11:00 a.m., New York City time. For those
interested in participating, please dial +1-888-335-5539 in the United States
or, if outside the United States, +1-973-582-2857. Participants should use
conference ID# 8675166, 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.
SOURCE Banco Latinoamericano de Exportaciones, S.A.
-0- 04/23/2007
CONTACT: In Panama, Carlos Yap, Chief Financial Officer, Banco
Latinoamericano de Exportaciones, +011-507-210-8563, cyap@blx.com; or Investor
Relations Firm, Melanie Carpenter or Peter Majeski, both of i-advize Corporate
Communications, Inc., +1-212-406-3690, or bladex@i-advize.com, for Banco
Latinoamericano de Exportaciones
Web site: http://www.blx.com
(BLX)
END
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