UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES
EXCHANGE ACT OF 1934
Short
form of Press Release
BANCO
LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.
(Exact
name of Registrant as specified in its Charter)
FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
(Translation
of Registrant’s name into English)
Calle 50
y Aquilino de la Guardia
P.O. Box
0819-08730
Panama
City, Republic of Panama
(Address
of Registrant’s Principal Executive Offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form 20-F
x Form
40-F ¨
(Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing information to the Commission pursuant to
Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)
Yes ¨ No x
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). 82__.)
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereto duly
authorized.
February
17, 2010
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FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
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By:
/s/ Pedro Toll
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Name:
Pedro Toll
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Title:
General Manager
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BLADEX
REPORTS FULL YEAR NET INCOME OF $54.9 MILLION; $1.50 PER SHARE
FOURTH
QUARTER NET INCOME OF $11.9 MILLION; $0.33 PER SHARE
PANAMA CITY, February 17, 2010
– Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the fourth quarter ended December 31,
2009.
Annual
Business Highlights
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·
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Net
income for 2009 amounted to $54.9 million compared to $55.1 million in
2008. Net interest margin increased to 1.62% in 2009, from
1.55% in 2008. The efficiency ratio improved from 42% in 2008
to 35% in 2009, while 2009 operating expenses remained 4% below 2008
levels.
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·
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The
Commercial Division’s net income for 2009 amounted to $34.8 million
compared to $59.1 million in 2008. Net operating income for
2009 amounted to $49.7 million compared to $58.4 million in
2008. The decreases during the year were due to lower average
loan portfolio balances and lower market interest rates, partially offset
by higher average lending spreads. The commercial
portfolio stood at $3.1 billion, an increase of 2% from December 31, 2008,
and a 17% increase from its lowest level at month-end May 2009.
Disbursements during the fourth quarter 2009 reached $1,217 million, a 16%
increase over the previous quarter, and a 78% increase from the fourth
quarter 2008.
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·
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The
Treasury Division reported net income for 2009 totaled $6.1 million,
compared to a net loss of $16.3 million in 2008, the result of higher
margins and trading gains.
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·
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The
Asset Management Division’s net income for 2009 was $14.1 million,
compared to $12.3 million in 2008. The $1.8 million increase
during the year was due to higher trading gains in the Investment Fund,
partially offset by a greater participation of minority
interests.
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Liquidity
as of December 31, 2009 was $402 million, compared to $826 million as of
December 31, 2008, as the Bank gradually returns to historical liquidity
levels.
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·
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The
ratio of the allowance for credit losses in the commercial portfolio stood
at 3.2%, compared to 3.5% reported in the third quarter 2009, and 2.8% as
of December 31, 2008. The quarterly decrease was primarily the
net result of a shift in the portfolio composition towards better quality
risk.
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·
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During
2009, the book value per common share increased 17% to
$18.49. The Bank’s Tier 1 capital ratio as of December 31, 2009
was 25.8%, compared to 24.6% as of September 30, 2009, and 20.4% as of
December 31, 2008, while the leverage ratio as of these dates was 5.7x,
5.6x and 7.6x, respectively. The Bank’s equity consists
entirely of common shares.
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CEO's Comments
"Bladex
made it through one of the most difficult years in recent financial history in
very good shape. The Bank’s net income at $54.9 million for 2009 was practically
the same as for 2008. Bladex’s capitalization, reflected in a Tier 1
ratio of 25.8% and leverage of 5.7 times, is stronger than the 20.4% and 7.6
times of a year ago, while efficiency improved from 42% to 35%, and the Bank’s
commercial portfolio grew by a full 17% after hitting its low point month-end in
May. Bladex’s liquidity position is ample, supported by a much more
diversified universe of funding sources, while reserve coverage is at
historically high levels, protecting a portfolio of solid and improving
quality. The only financial indicator lagging the Bank’s objectives
is the 8.6% ROE, itself a natural result of Bladex’s strong
capitalization.
Bladex’s
performance is particularly noteworthy when considered against the backdrop of a
Region whose economies had been growing at average annual rates of over 5% and
during 2009, suffered a 1.8% contraction. The impact of the economic
crisis on the Region's trade flows was even more dramatic: commerce during the
year contracted 24%, a figure without parallel since the late
1930s.
Bladex
managed the crisis without the need for any type of external support by calling
on its traditional strengths: a disciplined focus on a Region and a business it
knows well, excellence in credit and liquidity risk management, and a fiercely
competitive, skilled and cohesive team.
With
regards to the fourth quarter, Bladex was pleased to see portfolio growth
becoming more firmly established, credit quality continuing to improve, and
sustained levels of profitability despite a below average performance by the
Bank’s asset management division.
With the
worst of the crisis now apparently over, Bladex is excited to find itself with
the right combination of capital, liquidity, clients and skills to leverage the
opportunities of a significantly changed competitive and business
landscape.
A number
of Bladex’s competitors are still in the process of reorganizing their approach
to Latin America, or have exited the market altogether. Much more
importantly, however, the crisis has brought about a surge in intraregional
trade, Latin American companies selling to Latin American markets, which is
ideally suited to Bladex’s unique ability to provide clients with trade finance
support on a regional basis. Combined with the incipient recovery in
international trade flows and the internationalization many of the Region’s
companies, Bladex believes these trends will result in significant growth
opportunities for the Bank and is allocating resources accordingly. As a first
step, the Board of Directors has approved the establishment of two new
Representative Offices in Porto Alegre, Brazil, and in Monterrey, Mexico, as
part of a plan designed to capture as much of this new business as
possible. As Bladex re-leverages the balance sheet, the Bank’s ROE
levels will rise accordingly.
Over the short term, the road forward is not likely to be smooth,
as there are simply too many financial, economic and political risks at play
globally, all of which impact Latin America and Bladex’s business, even if only
in an indirect manner. Nevertheless, Bladex is confident that 2010
marks the start of a transformation in Bladex every bit as significant as when
the Bank evolved from being solely a bank–to-banks to the best trade finance
platform in Latin America.”
CONSOLIDATED
RESULTS OF OPERATIONS
KEY
FINANCIAL FIGURES AND RATIOS
The
following table illustrates the consolidated results of operations of the Bank
for the periods indicated below:
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(US$
million, except percentages and per share amounts)
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2009
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2008
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4Q09
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3Q09
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4Q08
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|||||||||||||||
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Net
Interest Income
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$ | 64.8 | $ | 77.9 | $ | 15.2 | $ | 17.4 | $ | 14.7 | ||||||||||
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Net
Operating Income (Loss) by Business Segment:
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||||||||||||||||||||
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Commercial
Division
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$ | 49.7 | $ | 58.4 | $ | 11.2 | $ | 13.0 | $ | 13.8 | ||||||||||
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Treasury
Division
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$ | 6.1 | $ | (16.3 | ) | $ | (0.5 | ) | $ | 1.2 | $ | (19.6 | ) | |||||||
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Asset
Management Division
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$ | 15.2 | $ | 12.5 | $ | 0.8 | $ | 3.3 | $ | 1.3 | ||||||||||
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Net
Operating Income
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$ | 70.9 | $ | 54.6 | $ | 11.6 | $ | 17.4 | $ | (4.5 | ) | |||||||||
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Net
Income
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$ | 54.9 | $ | 55.1 | $ | 11.9 | $ | 15.8 | $ | (4.3 | ) | |||||||||
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Net
Income per Share(1)
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$ | 1.50 | $ | 1.51 | $ | 0.33 | $ | 0.43 | $ | (0.12 | ) | |||||||||
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Book
Value per common share (period end)
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$ | 18.49 | $ | 15.77 | $ | 18.49 | $ | 18.23 | $ | 15.77 | ||||||||||
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Return
on Average Equity (“ROE”)
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8.6 | % | 9.0 | % | 7.1 | % | 9.5 | % | -3.0 | % | ||||||||||
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Operating
Return on Average Equity ("Operating ROE")
(2)
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11.1 | % | 8.9 | % | 6.9 | % | 10.6 | % | -3.1 | % | ||||||||||
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Return
on Average Assets (“ROA”)
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1.4 | % | 1.1 | % | 1.3 | % | 1.6 | % | -0.4 | % | ||||||||||
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Net
Interest Margin
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1.62 | % | 1.55 | % | 1.60 | % | 1.76 | % | 1.24 | % | ||||||||||
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Efficiency
Ratio (3)
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35 | % | 42 | % | 46 | % | 33 | % | 185 | % | ||||||||||
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Tier
1 Capital(4)
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$ | 679 | $ | 640 | $ | 679 | $ | 671 | $ | 640 | ||||||||||
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Total
Capital(5)
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$ | 712 | $ | 680 | $ | 712 | $ | 706 | $ | 680 | ||||||||||
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Risk-Weighted
Assets
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$ | 2,633 | $ | 3,144 | $ | 2,633 | $ | 2,732 | $ | 3,144 | ||||||||||
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Tier
1 Capital Ratio(4)
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25.8 | % | 20.4 | % | 25.8 | % | 24.6 | % | 20.4 | % | ||||||||||
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Total
Capital Ratio (5)
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27.0 | % | 21.6 | % | 27.0 | % | 25.8 | % | 21.6 | % | ||||||||||
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Stockholders’
Equity
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$ | 676 | $ | 574 | $ | 676 | $ | 666 | $ | 574 | ||||||||||
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Stockholders’
Equity to Total Assets
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17.4 | % | 13.2 | % | 17.4 | % | 17.9 | % | 13.2 | % | ||||||||||
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Other
Comprehensive Income Account ("OCI")
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$ | (6 | ) | $ | (72 | ) | $ | (6 | ) | $ | (9 | ) | $ | (72 | ) | |||||
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Leverage
(times) (6)
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5.7 | 7.6 | 5.7 | 5.6 | 7.6 | |||||||||||||||
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Liquid
Assets / Total Assets (7)
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10.4 | % | 19.6 | % | 10.4 | % | 11.6 | % | 18.9 | % | ||||||||||
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Liquid
Assets / Total Deposits
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32.0 | % | 73.1 | % | 32.0 | % | 35.3 | % | 70.6 | % | ||||||||||
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Non-Accruing
Loans to Total Loans, net
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1.8 | % | 0.0 | % | 1.8 | % | 1.4 | % | 0.0 | % | ||||||||||
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Allowance
for Credit Losses to Commercial Portfolio
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3.2 | % | 2.8 | % | 3.2 | % | 3.5 | % | 2.8 | % | ||||||||||
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Total
Assets
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$ | 3,879 | $ | 4,363 | $ | 3,879 | $ | 3,723 | $ | 4,363 | ||||||||||
Footnotes:
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(1)
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Net
Income per Share calculations are based on the average number of shares
outstanding during each
period.
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(2)
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Operating
ROE: Annualized net operating income divided by average stockholders’
equity.
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(3)
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Efficiency
ratio refers to consolidated operating expenses as a percentage of net
operating revenues.
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(4)
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Tier
1 Capital is calculated according to the US Federal Reserve Board, and
Basel I capital adequacy guidelines, and is equivalent to stockholders’
equity excluding the OCI effect of the available for sale
portfolio. Tier 1 Capital ratio is calculated as a percentage
of risk weighted assets. Risk-weighted assets are, in turn,
also calculated based on US Federal Reserve Board, and Basel I capital
adequacy guidelines.
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(5)
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Total
Capital refers to Tier 1 Capital plus Tier 2 Capital, based on US Federal
Reserve Board, and Basel I capital adequacy guidelines. Total
Capital ratio refers to Total Capital as a percentage of risk weighted
assets.
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(6)
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Leverage
corresponds to assets divided by stockholders’
equity.
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(7)
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Liquidity
ratio refers to liquid assets as a percentage of total
assets. Liquid assets consist of investment-grade ‘A’
securities, and cash and due from banks, excluding pledged regulatory
deposits.
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SAFE
HARBOR STATEMENT
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This
press release contains forward-looking statements of expected future
developments. The Bank wishes to ensure that such statements
are accompanied by meaningful cautionary statements pursuant to the safe
harbor established by the Private Securities Litigation Reform Act of
1995. The forward-looking statements in this press release
refer to the growth of the credit portfolio, including the trade
portfolio, the increase in the number of the Bank’s corporate clients, the
positive trend of lending spreads, the increase in activities engaged in
by the Bank that are derived from the Bank’s client base, anticipated
operating income and return on equity in future periods, including income
derived from the Treasury Division and Asset Management Division, the
improvement in the financial and performance strength of the Bank and the
progress the Bank is making. These forward-looking statements
reflect the expectations of the Bank’s management and are based on
currently available data; however, actual experience with respect to these
factors is subject to future events and uncertainties, which could
materially impact the Bank’s expectations. Among the factors
that can cause actual performance and results to differ materially are as
follows: the anticipated growth of the Bank’s credit portfolio; the
continuation of the Bank’s preferred creditor status; the impact of
increasing/decreasing interest rates and of the macroeconomic environment
in the Region on the Bank’s financial condition; the execution of the
Bank’s strategies and initiatives, including its revenue diversification
strategy; the adequacy of the Bank’s allowance for credit losses; the need
for additional provisions for credit losses; the Bank’s ability to achieve
future growth, to reduce its liquidity levels and increase its leverage;
the Bank’s ability to maintain its investment-grade credit ratings; the
availability and mix of future sources of funding for the Bank’s lending
operations; potential trading losses; the possibility of fraud; and the
adequacy of the Bank’s sources of liquidity to replace deposit
withdrawals.
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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, 2009, Bladex had disbursed
accumulated credits of approximately $162 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly results on Thursday,
February 18, 2010 at 10:00 a.m. New York City time (Eastern Time). For
those interested in participating, please dial (800) 311-9401 in the United
States or, if outside the United States, (334) 323-7224. Participants
should use conference ID# 8034, and dial in five minutes before the call is set
to begin. There will also be a live audio web cast of the conference at
http://www.bladex.com.
The
conference call will become available for review on Conference Replay one hour
after its conclusion, and will remain available through April 18,
2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
29285679. For more information, please access http://www.bladex.com or
contact:
Mr.
Christopher Schech
Chief
Financial Officer
Bladex
Calle 50
y Aquilino de la Guardia
Panama
City, Panama
Tel:
(507) 210-8630
E-mail
address: cschech@bladex.com
Investor
Relations Firm:
i-advize
Corporate Communications, Inc.
Mrs.
Melanie Carpenter / Mr. Peter Majeski
82 Wall
Street, Suite 805, New York, NY 10005
Tel:
(212) 406-3690
E-mail
address: bladex@i-advize.com