Final Results
16 February 2007 - 6:00PM
UK Regulatory
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
Fourth Quarter 2006 Financial Highlights:
* Operating income totaled $14.1 million, up 63% from the previous
quarter, due to gains in Treasury activities and increased net interest
income.
* 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.
* At December 31, 2006, the credit portfolio stood at $4.0 billion, 7%
higher than the figure reported as of September 30, 2006.
* At December 31, 2006, the Bank had reduced its non-accruing assets to
zero, and had no past due loans in its portfolio.
* 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.
Full Year 2006 Financial Highlights:
* 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.
* Net income amounted to $57.9 million, down 28% from 2005, due to lower
credit provision reversals, as the Bank reduced its non-accruing
portfolio by year-end to zero.
* The average credit portfolio grew 20% year-over-year.
PANAMA CITY, Feb. 16 -- Banco Latinoamericano de Exportaciones, S.A.
(NYSE: BLX) ("Bladex" or the "Bank") announced today its results for the
fourth quarter ended December 31, 2006.
The table below depicts selected key financial figures and ratios for the
periods indicated (the Bank's financial statements are prepared in accordance
with U.S. GAAP, and all figures are stated in U.S. dollars):
Key Financial Figures
(US$ million, except percentages
and per share amounts) 2005 2006 4Q05 3Q06 4Q06
Net interest income $45.3 $58.8 $12.5 $15.6 $16.7
Operating income (1) $28.9 $39.3 $9.0 $8.7 $14.1
Net income $80.1 $57.9 $16.4 $11.2 $21.1
EPS (2) $2.08 $1.56 $0.43 $0.31 $0.58
Return on average equity 12.9% 10.0% 10.6% 7.9% 14.5%
Tier 1 capital ratio 33.7% 24.4% 33.7% 27.3% 24.4%
Net interest margin 1.70% 1.76% 1.77% 1.78% 1.76%
Book value per
common share $16.19 $16.07 $16.19 $15.55 $16.07
(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 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.
"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."
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.
Bladex is listed on the New York Stock Exchange. Further investor
information can be found at http://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. (507) 210-8563, e-mail: cyap@blx.com,
-or-
Investor Relations Firm
i-advize Corporate Communications, Inc.
Mrs. Melanie Carpenter / Mr. Peter Majeski
Tel: (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
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
http://www.blx.com.
SOURCE Banco Latinoamericano de Exportaciones, S.A.
-0- 02/16/2007
/CONTACT: Carlos Yap, Chief Financial Officer, BLADEX, +011-507-210-8563,
or e-mail, cyap@blx.com, or Melanie Carpenter or Peter Majeski, both of
i-advize Corporate Communications, Inc., +1-212-406-3690, or bladex@i-
advize.com, for Bladex/
/Web site: http://www.blx.com /
(BLX)
END
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