Edgar Filing: FOREIGN TRADE BANK OF LATIN AMERICA, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

Long form of Press Release

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia

P.O. Box 0819-08730

Panama City, Republic of Panama

(Address of Registrant’s Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F x Form 40-F ¨

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)

Yes ¨ No x

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82__.)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

October 13, 2010


	FOREIGN TRADE BANK OF LATIN AMERICA, INC.

		By: /s/ Pedro Toll

		Name: Pedro Toll
		Title: General Manager

BLADEX REPORTS THIRD QUARTER 2010 NET INCOME OF $15.0 MILLION; $0.41 PER SHARE.

PANAMA CITY, October 12, 2010 – Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”) announced today its results for the third quarter ended September 30, 2010.

Third Quarter Business Highlights

Net Income (*) for the third quarter 2010 amounted to $15.0 million, compared to $1.7 million in the second quarter 2010, and $15.8 million in the third quarter 2009. 93% of the Bank’s Net Income was the result of the Commercial Division’s strong quarterly performance, contributing Net Income of $13.9 million.

During the quarter, the Commercial Portfolio grew $607 million, or 17%, to reach a balance of approximately $4.2 billion. Year-on-year, the Commercial Portfolio has grown $1.3 billion, or 44%.

Net interest income in the third quarter 2010 was $20.0 million, a 16% increase over the previous period. Fees and commissions amounted to $2.0 million, a decrease of $0.8 million compared to the previous quarter. On a year-to-date-basis, fees and commissions have grown 66%, amounting to $7.2 million.

Net interest margin stood at 1.73% in the third quarter 2010, compared to 1.67% in the previous quarter, and 1.76% in the third quarter 2009.

With the Bank´s portfolio growth driven mainly by demand from established banking and corporate clients, portfolio quality continued to improve, as non-accrual loans declined 27% compared to the previous quarter to $33 million.

The Asset Management Unit reported Net Income of $2.6 million in the third quarter 2010, compared to a Net Loss of $9.4 million in the second quarter 2010, and Net Income of $2.8 million in the third quarter 2009. The gain in the third quarter 2010 was mainly related to gains on investments in the Investment Fund.

The Bank’s Tier 1 capital ratio as of September 30, 2010 was 20.6%, compared to 23.4% as of June 30, 2010, and 24.6% as of September 30, 2009, while the leverage ratio as of these dates was 7.1x, 6.6x, and 5.6x, respectively.

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

CEO's Comments

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the Bank’s results: "Solid as this quarter's results were, Bladex is particularly encouraged by the underlying trends, which support the Bank’s overriding objective of increasing profitability through balance sheet growth and higher income levels in the core business.

The Commercial Portfolio’s 17% growth in the quarter and 44% growth over the last year is a reflection of both the strength of the Region's trade flows recovery, and crucially, Bladex's ability to leverage an increasing share of this business across a variety of industries throughout the Region. During the third quarter, Bladex experienced a 50% expansion of loan disbursements in both the corporate and financial institution segments, with total disbursements exceeding $1.7 billion. Loan disbursements in Bladex’s new middle market corporate segment, though still small in absolute terms, grew at an impressive 76% to $109 million. Due to rapid portfolio growth mainly fueled by segments and companies familiar to Bladex, credit quality has remained sound as the portfolio expands. Bladex firmly believes that supporting this kind of quality growth is the best manner in which to deploy the Bank’s capital.

On the liability side of the business, the 23% quarterly growth in deposit balances drove the total to $1.9 billion, the highest level on record, and 52% higher than a year ago, providing the Bank with an attractively priced funding source, which has largely offset thinner lending spreads that have come with improving risk levels.

While down in the third quarter, commission income is 66% above the total of a year ago, a growing trend that Bladex expects to continue, fueled by the Bank’s expanding client base.

Results in the Asset Management Unit have improved, and are now largely in-line with the historical track record since the Unit initiated operations 4 years ago. As explained below, the Unit has taken measures to reduce the volatility of Bladex Capital Growth Fund. Bladex remains committed to the Asset Management business in light of what it views as the Bank’s competitive advantages.

As a combined result of these trends, the $15.0 million in quarterly Net Income was of high quality and well-diversified in nature, reflective of the composition that the Bank seeks as it steadily expands its business. The Bank's increased dividend announced today is meant to allow shareholders to share in Bladex’s growth as the Bank continues executing its strategy.”, Mr. Rivera concluded.

RESULTS BY BUSINESS SEGMENT

COMMERCIAL DIVISION

The Commercial Division incorporates the Bank’s core business of financial intermediation and fee generation activities. Net Income includes net interest income from loans, fee income, net allocated operating expenses, the reversal (provision) for loan and off-balance sheet credit losses, and any impairment on assets.

(US$ million)		9M10			9M09			3Q10			2Q10			3Q09
Commercial Division:
Net interest income	$	51.3		$	50.7		$	19.1		$	17.0		$	16.7
Non-interest operating income (1)		7.0			4.8			2.1			2.7			1.6
Net operating revenues (2)		58.3			55.5			21.2			19.7			18.3
Operating expenses		(20.8	)		(17.1	)		(7.2	)		(6.7	)		(5.3	)
Net operating income (3)		37.5			38.4			14.0			13.0			13.0
Reversal (provision) for loan and off-balance sheet credit losses, net		4.3			(15.4	)		(0.1	)		0.9			(1.2	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.0			0.0
Net Income	$	42.0		$	22.9		$	13.9		$	13.9		$	11.8

The Commercial Division continued to accelerate portfolio growth in the third quarter as market demand strengthened, reaching $4.2 billion in period-end balances, a 17% increase from the previous quarter and a 44% increase from the third quarter 2009.

3Q10 vs. 2Q10

The Division’s Net Income in the third quarter 2010 amounted to $13.9 million, the same level as the second quarter 2010. Net Operating Income in the third quarter 2010 amounted to $14.0 million, compared to $13.0 million in the second quarter 2010. The $1.0 million quarterly increase in operating income was the result of the combined effects of: (i) a $2.1 million increase in net interest income due to higher average loan portfolio balances (+17%), mainly driven by greater demand from large corporations, (ii) a $0.6 million decrease in non-interest operating income, mostly attributable to decreased commission income from letter of credit transactions, and (iii) a $0.5 million increase in operating expenses as two new offices initiated operations.

3Q10 vs. 3Q09

The Division’s Net Income in the third quarter 2010 increased $2.1 million compared to the third quarter 2009, mainly as a result of improved credit quality, and thus, decreased reserve requirements. Net Operating Income increased $1.0 million compared to the third quarter 2009, mainly due to a 14% increase in net interest income, and a 31% increase in non-interest income from fees and commissions, both partially offset by increased operating expenses related to the deployment of a larger sales force and new offices. The effects of a greater average portfolio base on net interest income were partially offset by a year-on-year decline in market interest rates.

9M10 vs. 9M09

The Division’s cumulated Net Income in the first nine months in 2010 increased $19.1 million (+83%) versus the same period in 2009, mainly as a result of lower credit reserve requirements as portfolio quality improved, and higher net interest income and non-interest operating income from increased commercial portfolio balances were both partially offset by higher operating expenses.

The Division’s Net Operating Income declined $0.9 million versus the first nine months ended September 30, 2009 as a result of: (i) a $0.6 million increase in net interest income mostly attributable to the income effects of higher average loan portfolio balances (+20%), (ii) a $2.2 million increase in commissions and fees from letters of credit and guarantees, and (iii) a $3.7 million increase in operating expenses as the Division expanded its sales force and local presence in various markets.

The following graph illustrates the trend in weighted average lending spreads as liquidity and credit quality stabilize following the 2008/2009 financial crisis:

The Commercial Portfolio includes the book value of loans, acceptances, and contingencies (including letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments). The Bank’s Commercial Portfolio balance reached $4.2 billion as of September 30, 2010, a 17% increase over the balance as of June 30, 2010, and 44% above the balance as of September 30, 2009. The increase was largely attributable to increased demand from the Bank´s established client base of financial institutions and large corporations. During the third quarter 2010, the Bank disbursed nearly $1.8 billion in new loans, an increase of $0.6 billion, (+54%), compared to the previous quarter. $109 million in disbursements were made to the middle market segment, representing a 76% increase over the previous quarter.

The following graph presents the average commercial portfolio outstanding, as of the following periods:

On an average basis, the Commercial Portfolio increased 16% in the third quarter 2010 compared to the previous quarter, and 39% from the third quarter 2009.

The Commercial Portfolio continues to be mainly short-term and trade-related in nature. $3.0 billion, or 71%, of the commercial portfolio matures within one year. Trade financing operations represent 57% of the portfolio, while the remaining balance consists primarily of lending to banks and exporters. Refer to Exhibit X for information relating to the Bank’s Commercial Portfolio distribution by country and Exhibit XII for the Bank’s distribution of credit disbursements by country.

TREASURY DIVISION

The Treasury Division incorporates the Bank’s liquidity management and investment securities activities. Net Income is presented net of allocated operating expenses, and includes net interest income on Treasury activities and net other income (loss) relating to Treasury activities (12).

(US$ million)		9M10			9M09			3Q10			2Q10			3Q09
Treasury Division:
Net interest income	$	2.1		$	1.6		$	1.1		$	0.6		$	1.3
Non-interest operating income (loss) (1)		(2.8	)		11.2			(0.4	)		(1.4	)		1.6
Net operating revenues (2)		(0.7	)		12.8			0.7			(0.8	)		2.9
Operating expenses		(6.4	)		(6.2	)		(2.2	)		(2.0	)		(1.7	)
Net operating income (loss) (3, 12)		(7.1	)		6.6			(1.5	)		(2.8	)		1.2
Net Income (Loss)	$	(7.1	)	$	6.6		$	(1.5	)	$	(2.8	)	$	1.2

The Bank has returned to historical liquidity levels. Liquid assets (8) decreased to $336 million as of September 30, 2010, following large disbursements in the quarter, compared to $593 million as of June 30, 2010, and $431 million as of September 30, 2009.

The Trading Portfolio as of September 30, 2010 stood at $51 million, the same level as of June 30, 2010, and compared to $50 million as of September 30, 2009.

The Securities Available for Sale Portfolio as of September 30, 2010 amounted to $527 million, compared to $457 million as of June 30, 2010, and $461 million as of September 30, 2009. The Available for Sale Portfolio as of September 30, 2010 consisted entirely of readily quoted Latin American securities, 81% of which were sovereign and state-owned risk in nature (refer to Exhibit XI for a per country distribution of the Treasury portfolio).

The Available for Sale Portfolio is marked to market, with the impact recorded in stockholders’ equity through the Other Comprehensive Income Account (“OCI”), which stood at ($5) million in the third quarter 2010, compared to ($11) million in the second quarter 2010, as increased market valuations of the Securities Portfolio were partially offset by lower valuations of hedging instruments associated with the securities.

Funding costs continued to improve as weighted average funding costs for the third quarter 2010 amounted to 1.22%, a decrease of 4 bps, or 3%, compared to the second quarter 2010, and a decrease of 94 bps, or 44%, compared to the third quarter 2009. Period-end deposit balances increased 23% over the previous quarter, and 52% year-on-year, to reach $1.9 billion, the highest level on record. Borrowings and securities sold under repurchase agreements increased 5% over the third quarter 2010 to $2.2 billion, a 28% year-on-year increase.

3Q10 vs. 2Q10

In the third quarter 2010, the Treasury Division posted a Net Loss of $1.5 million, compared to a Net Loss of $2.8 million in the second quarter 2010. Third quarter net operating revenues were $1.5 million higher compared to the second quarter, mainly due to higher net interest income from increased average portfolio balances, and the improved net effect of valuations of trading securities, foreign currency exposures and related hedging instruments.

3Q10 vs. 3Q09

The Treasury Division posted a Net Loss of $1.5 million in the third quarter 2010 compared to Net Income of $1.2 million in the third quarter 2009 due to a $2.0 million decrease in non-interest operating income as a result of gains from the sale of securities realized in 2009, a $0.2 million decrease in net interest income from lower average securities portfolio balances, and a $0.5 million increase in operating expenses.

9M10 vs. 9M09

The Treasury Division reported a Net Loss of $7.1 million during the first nine months of 2010, compared to $6.6 million in Net Income during the same period 2009. The $13.7 million decrease in this period was primarily driven by a variance in non-interest operating income mainly attributable to a year-on-year reduction in gains on trading securities.

ASSET MANAGEMENT UNIT

The Asset Management Unit incorporates the Bank’s asset management activities. The Unit’s Investment Fund follows primarily a Latin America macro strategy, utilizing a combination of products (foreign exchange, equity indices, interest rate swaps, and sovereign credit products) to establish long and short positions in the markets.

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

(US$ million)		9M10			9M09			3Q10			2Q10			3Q09
Asset Management Unit:
Net interest income (loss)	$	0.1		$	(2.7	)	$	(0.2	)	$	(0.4	)	$	(0.7	)
Non-interest operating income (loss) (1)		(7.2	)		22.1			4.3			(10.1	)		5.5
Net operating revenues (2)		(7.1	)		19.4			4.1			(10.5	)		4.8
Operating expenses		(3.2	)		(5.0	)		(1.0	)		(1.3	)		(1.5	)
Net operating income (loss) (3)		(10.3	)		14.4			3.1			(11.8	)		3.3
Net income (loss)		(10.3	)		14.4			3.1			(11.8	)		3.3
Net income (loss) attributable to the redeemable noncontrolling interest		(2.3	)		0.9			0.5			(2.4	)		0.5
Net Income (Loss)	$	(8.0	)	$	13.5		$	2.6		$	(9.4	)	$	2.8

3Q10 vs. 2Q10

The Asset Management Unit recorded Net Income in the third quarter 2010 of $2.6 million, compared to a Net Loss of $9.4 million in the second quarter 2010. The $12.0 million quarterly increase was mainly due to a $14.4 million increase in non-interest operating income attributable to gains from investments in the Investment Fund, partially offset by net income attributable to redeemable non-controlling interest.

3Q10 vs. 3Q09

The Unit posted Net Income of $2.6 million in the third quarter 2010, compared to $2.8 million in Net Income in the third quarter 2009 as a result of lower gains from investments in the Investment Fund.

9M10 vs. 9M09

The Unit posted a Net Loss during the first nine months 2010 of $8.0 million compared to Net Income of $13.5 million in the first nine months 2009. The $21.5 million year-over-year variance was due to the combined effects of: (i) a $2.8 million increase in net interest income, (ii) a $29.3 million decrease in non-interest operating income attributable to losses from investments in the Investment Fund, (iii) a $1.8 million decrease in operating expenses from lower provisions for variable compensation tied to the performance of the Investment Fund.

As of September 30, 2010, the Investment Fund’s asset value totaled $181 million, compared to $193 million as of June 30, 2010 and $189 million as of September 30, 2009. For the same dates, Bladex’s ownership of the Bladex Offshore Feeder Fund was 85.82% as of September 30, 2010, compared to 78.79% as of June 30, 2010, and 85.53% as of September 30, 2009, respectively, with remaining balances owned by third party investors.

Bladex considers its asset management subsidiary important for its long-term strategy. The plan for marketing the Fund to potential investors benefits from natural synergies at Bladex, as well as the Bank’s long standing relationships with institutional investors throughout the world. The Asset Management Unit has reviewed the Investment Fund´s risk parameters with a goal of reducing volatility. Bladex is comfortable with its investment levels of approximately $150 million and will redeem any gains above that level going forward.

CONSOLIDATED RESULTS OF OPERATIONS

KEY FINANCIAL FIGURES AND RATIOS

The following table illustrates the consolidated results of operations of the Bank for the periods indicated below:

(US$ million, except percentages and per share amounts)		9M10			9M09			3Q10			2Q10			3Q09
Net Interest Income	$	53.5		$	49.6		$	20.0		$	17.2		$	17.4
Net Operating Income (Loss) by Business Segment:
Commercial Division	$	37.5		$	38.4		$	14.0		$	13.0		$	13.0
Treasury Division	$	(7.1	)	$	6.6		$	(1.5	)	$	(2.8	)	$	1.2
Asset Management Unit	$	(10.3	)	$	14.4		$	3.1		$	(11.8	)	$	3.3
Net Operating Income (loss)	$	20.1		$	59.3		$	15.6		$	(1.6	)	$	17.5
Net income (loss)	$	24.6		$	43.8		$	15.5		$	(0.7	)	$	16.3
Net income (loss) attributable to the redeemable noncontrolling interest	$	(2.3	)	$	0.9		$	0.5		$	(2.4	)	$	0.5
Net Income attributable to Bladex	$	26.9		$	42.9		$	15.0		$	1.7		$	15.8

Net Income per Share (5)	$	0.73		$	1.18		$	0.41		$	0.05		$	0.43
Book Value per common share (period end)	$	18.77		$	18.23		$	18.77		$	18.35		$	18.23
Return on Average Equity (“ROE”)		5.3	%		9.1	%		8.7	%		1.0	%		9.5	%
Operating Return on Average Equity ("Operating ROE") (6)		3.9	%		12.6	%		9.0	%		-1.0	%		10.6	%
Return on Average Assets (“ROA”)		0.9	%		1.4	%		1.3	%		0.2	%		1.6	%
Net Interest Margin		1.70	%		1.63	%		1.73	%		1.67	%		1.76	%
Efficiency Ratio (7)		60	%		32	%		40	%		120	%		33	%

Liquid Assets / Total Assets (8)		6.9	%		11.6	%		6.9	%		13.5	%		11.6	%
Liquid Assets / Total Deposits		18.1	%		35.3	%		18.1	%		39.4	%		35.3	%

Non-Accruing Loans to Total Loans, net		0.9	%		1.4	%		0.9	%		1.5	%		1.4	%
Allowance for Credit Losses to Commercial Portfolio		2.3	%		3.5	%		2.3	%		2.7	%		3.5	%

Total Assets	$	4,861		$	3,723		$	4,861		$	4,412		$	3,723

NET INTEREST INCOME AND MARGINS

(US$ million, except percentages)		9M10			9M09			3Q10			2Q10			3Q09
Net Interest Income (Loss)
Commercial Division	$	51.3		$	50.7		$	19.1		$	17.0		$	16.7
Treasury Division		2.1			1.6			1.1			0.6			1.3
Asset Management Unit		0.1			(2.7	)		(0.2	)		(0.4	)		(0.7	)
Consolidated	$	53.5		$	49.6		$	20.0		$	17.2		$	17.4

Net Interest Margin*		1.70	%		1.63	%		1.73	%		1.67	%		1.76	%

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

Net interest margin stood at 1.73% in the third quarter 2010, compared to 1.67% in the second quarter 2010, and 1.76% in the third quarter 2009.

3Q10 vs. 2Q10

In the third quarter 2010, net interest income amounted to $20.0 million, an increase of $2.8 million, or 16%, compared to $17.2 million in the second quarter 2010. The quarterly increase primarily reflects:

(i)

Higher average interest earning assets balances, primarily average loan portfolio balances, which increased $506 million, or 17%, compared to the second quarter 2010, which resulted in an overall increase of $4.1 million in interest income, partially offset by a $0.1 million increase in interest expense, due to higher average balances in deposits, borrowings and placements.

(ii)

Lower average interest rates for the Bank’s loans and liabilities, which resulted in a $1.2 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 4 bps to 1.22% during the quarter, while the average yield on interest-earning assets increased 5 bps to 2.70% compared to the second quarter 2010, mainly attributable to average yield increases in liquid assets and securities.

3Q10 vs. 3Q09

Net interest income when compared to the third quarter 2009, increased $2.6 million, or 15%. This increase reflects primarily the following:

(i)

Higher average interest earning assets balances, primarily average loan portfolio balances, which increased $964 million, or 39%, compared to the third quarter 2009, resulted in an increase of $6.1 million in interest income. Average volumes of interest bearing liabilities increased $629 million, resulting in a $0.9 million decrease in net interest income.

(ii)

A $2.6 million decrease in net interest income as result of the combined effects of a 75 bps reduction in average yield on interest-earning assets, partially offset by a 94 bps decrease in average yield paid on interest-bearing liabilities, both mostly attributable to lower interbank market rates.

9M10 vs. 9M09

Net interest income amounted to $53.5 million in the first nine months 2010, compared to $49.6 million during the first nine months 2009. The $3.9 million, or 8%, increase of net interest income during the period primarily reflects:

(i)

Higher average interest earning assets balances, primarily average loan portfolio balances, which resulted in a $8.9 million overall increase in interest income, partially offset by a $0.5 million increase in interest expense associated with an increase in average interest bearing liability balances.

(ii)

Lower average interest rates on the Bank’s assets and liabilities, which resulted in a $4.5 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 128 bps to 1.29% during the first nine months 2010, while the average yield on interest-earning assets decreased 97 bps during the same period.

Net interest margin stood at 1.70% in the first nine months 2010, compared to 1.63% in the first nine months 2009.

FEES AND COMMISSIONS

(US$ million)		9M10		9M09		3Q10		2Q10		3Q09
Letters of credit	$	6.4	$	3.2	$	1.7	$	2.5	$	1.2
Guarantees		0.1		0.9		0.0		0.0		0.2
Loans		0.2		0.2		0.1		0.1		0.0
Third party investor (BAM)		0.4		0.0		0.1		0.2		0.0
Other*		0.1		0.4		0.1		0.0		0.0
Fees and Commissions, net	$	7.2	$	4.5	$	2.0	$	2.8	$	1.5
* Net of commission expenses

Fees and commissions amounted to $2.0 million in the third quarter 2010, $0.8 million lower than the second quarter 2010, and $0.6 million higher compared to the third quarter 2009. The quarterly decrease in the third quarter 2010 was mostly in the letter of credit business.

The $0.6 million increase in commission income from the letter of credit business in the third quarter 2010 compared to the third quarter 2009 was mainly the result of an increase in average letter of credit balances as general trade activity grew in a more favorable economic environment.

During the first nine months 2010, commission income amounted to $7.2 million, compared $4.5 million in the first nine months 2009, mainly as a result of increased letter of credit business.

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

(In US$ million)	30-Sep-09			31-Dec-09			31-Mar-10			30-Jun-10			30-Sep-10
Allowance for Loan Losses:

Balance at beginning of the period	$	90.2		$	89.9		$	73.8		$	73.9		$	81.3
Provisions (reversals)		(0.4	)		(16.1	)		0.1			8.7			(12.6	)
Recoveries, net of charge-offs		0.0			(0.0	)		0.0			(1.4	)		(0.0	)
End of period balance	$	89.9		$	73.8		$	73.9		$	81.3		$	68.7

Reserve for Losses on Off-balance Sheet Credit Risk:
Balance at beginning of the period	$	10.3		$	11.8		$	27.3		$	23.6		$	14.0
Provisions (reversals)		1.5			15.5			(3.7	)		(9.6	)		12.7
End of period balance	$	11.8		$	27.3		$	23.6		$	14.0		$	26.7

Total Allowance for Credit Losses	$	101.7		$	101.0		$	97.6		$	95.3		$	95.4

The increase in provisions for loan and off-balance sheet credit losses during the quarter resulted from increased allowances due to commercial portfolio growth, largely offset by lower reserve requirements related to an improving risk profile.

As of September 30, 2010, the non-accrual portfolio amounted to $32.9 million, compared to $45.3 million as of June 30, 2010, and $35.8 million as of September 30, 2009.

The ratio of the allowance for credit losses to the Commercial Portfolio stood at 2.3% as of September 30, 2010, compared to 2.7% as of June 30, 2010, and 3.5% as of September 30, 2009, while the non-accruing loans to loan portfolio ratio stood at 0.9%, 1.5%, and 1.4%, respectively, as of these dates.

OPERATING EXPENSES

(US$ million)		9M10		9M09		3Q10		2Q10		3Q09
Salaries and other employee expenses	$	16.4	$	15.1	$	5.5	$	5.5	$	4.7
Depreciation, amortization and impairment of premises and equipment		1.9		2.0		0.6		0.6		0.6
Professional services		4.0		2.4		1.7		1.2		0.8
Maintenance and repairs		1.1		0.8		0.4		0.3		0.3
Expenses from the investment fund		0.7		2.7		0.2		0.3		0.6
Other operating expenses		6.3		5.3		1.9		2.1		1.6
Total Operating Expenses	$	30.4	$	28.3	$	10.4	$	10.0	$	8.5

Quarterly Variation

Operating expenses in the third quarter 2010 totaled $10.4 million, a $0.4 million, or 3%, increase from the second quarter 2010, and an increase of $1.8 million, or 21%, with respect to the third quarter 2009. The year-on-year increase was mostly attributable to increased salary and other employee expenses associated with a higher average employee headcount in the Commercial Division and in the risk management area, and expenses related to the initiation of operations at the Bank’s new offices in Porto Alegre, Brazil and Monterrey, Mexico, as well as higher professional fees related to capital market issuance programs. During the third quarter 2010, the operating expenses to average assets ratio improved 7 basis points to 0.91%, compared to 0.98% in the previous quarter.

9M10 vs. 9M09

During the first nine months 2010, operating expenses amounted to $30.4 million, compared to $28.3 million during the same period 2009. The $2.1 million, or 8%, increase in operating expenses during this period was attributable to the net effect of higher salary and other employee expenses associated with higher average headcount and professional fees associated with the expansion of the Commercial Division and the risk management area, partially offset by lower performance–related expenses from the Investment Fund.

The Bank’s efficiency ratio as of September 30, 2010 was 60%, compared to 32% as of September 30, 2009, mainly as the result of a $37.3 million decrease in net operating revenues in the Asset Management Unit and Treasury Division during the period.

As of September 30, 2010, the Bank’s operating expenses to average assets ratio stood at 0.91%, compared to 0.93% as of September 30, 2009.

CAPITAL RATIOS AND CAPITAL MANAGEMENT

The following graphs illustrate the trends in Net Income and Return on Average Stockholders’ Equity and Tier 1 Capital and ROA evolution for the periods indicated:

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

(US$ million, except percentages and per share amounts)		9M10			9M09			3Q10			2Q10			3Q09
Tier 1 Capital (9)	$	690		$	671		$	690		$	680		$	671
Total Capital (10)	$	732		$	706		$	732		$	716		$	706
Risk-Weighted Assets	$	3,352		$	2,732		$	3,352		$	2,899		$	2,732
Tier 1 Capital Ratio		20.6	%		24.6	%		20.6	%		23.4	%		24.6	%
Total Capital Ratio		21.8	%		25.8	%		21.8	%		24.7	%		25.8	%
Stockholders’ Equity	$	689		$	666		$	689		$	673		$	666
Stockholders’ Equity to Total Assets		14.2	%		17.9	%		14.2	%		15.2	%		17.9	%
Other Comprehensive Income Account ("OCI")	$	(5	)	$	(9	)	$	(5	)	$	(11	)	$	(9	)
Leverage (times) (11)		7.1			5.6			7.1			6.6			5.6

As of September 30, 2010, the Bank’s Tier 1 capital ratio amounted to 20.6% compared to 23.4% as of September 30, 2010 and 24.6% as of September 30, 2009. The reduction in the Bank’s Tier 1 Capital ratio was due to the $452 million increase in risk-weighted assets in the quarter. The Bank’s leverage stood at 7.1x, 6.6x, and 5.6x, respectively, as of these dates.

The Bank’s common shares outstanding amounted to 36.7 million as of September 30, 2010 compared to same amount as of June 30, 2010.

During the Board of Directors’ meeting of October 12, 2010, the Bank’s Board reaffirmed its commitment to a dividend policy that reflects the Bank´s growing core business. In line with this policy, a quarterly common dividend of $0.17 per share related to the third quarter 2010 was declared. The dividend is payable on November 1, 2010 to stockholders registered as of October 22, 2010.

OTHER EVENTS

“Bladex Day” event at the New York Stock Exchange Euronext (“NYSE”): Bladex will host its Third Quarter 2010 (3Q10) Conference Call during the “Bladex Day” event at the NYSE on Wednesday, October 13, 2010. “Bladex Day” will be held from 12:00pm to 2:00pm (New York City time) Eastern time, with the 3Q10 Conference Call commencing at 12:30pm. The event will feature presentations by senior members of the Bank, followed by a Q&A session.

Note: Various numbers and percentages set forth in this press release have been rounded and, accordingly, may not total exactly.

Footnotes:

(1)

Non-interest operating income (loss) refers to net other income (expense) excluding reversals (provisions) for credit losses and recoveries (impairment) on assets. By business segment, non-interest operating income includes:

Commercial Division: Net fees and commissions and Net related other income (expense).

Treasury Division: net gain (loss) on sale of securities available-for-sale, impact of derivative hedging instruments, gain (loss) on foreign currency exchange, and gain (loss) on trading securities.

Asset Management Unit: Gain from Investment Fund trading and related other income (expense).

(2)

Net Operating Revenues refers to net interest income plus non-interest operating income.

(3)

Net Operating Income (Loss) refers to net interest income plus non-interest operating income, minus operating expenses.

(4)

Lending spreads are calculated as loan portfolio weighted average lending spread, net of weighted average Libor-based cost rate.

(5)

Net Income per Share calculations are based on the average number of shares outstanding during each period.

(6)

Operating ROE: Annualized net operating income divided by average stockholders’ equity.

(7)

Efficiency ratio refers to consolidated operating expenses as a percentage of net operating revenues.

(8)

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.

(9)

Tier 1 Capital is calculated according to Basel I capital adequacy guidelines, and is equivalent to stockholders’ equity excluding the OCI effect of the available for sale portfolio. Tier 1 Capital ratio is calculated as a percentage of risk weighted assets. Risk-weighted assets are, in turn, also calculated based on Basel I capital adequacy guidelines.

(10)

Total Capital refers to Tier 1 Capital plus Tier 2 Capital, based on Basel I capital adequacy guidelines. Total Capital ratio refers to Total Capital as a percentage of risk weighted assets.

(11)

Leverage corresponds to assets divided by stockholders’ equity.

(12)

Treasury Division’s net operating income includes: (i) interest income from interest bearing deposits with banks, investment securities and trading assets, net of allocated cost of funds; (ii) other income (expense) from derivative financial instrument and hedging; (iii) net gain (loss) from trading securities; (iv) net gain (loss) on sale of securities available for sale; (v) gain (loss) on foreign currency exchange; and (vi) allocated operating expenses.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements of expected future developments. The Bank wishes to ensure that such statements are accompanied by meaningful cautionary statements pursuant to the safe harbor established by the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this press release refer to the growth of the credit portfolio, including the trade portfolio, the increase in the number of the Bank’s corporate clients, the positive trend of lending spreads, the increase in activities engaged in by the Bank that are derived from the Bank’s client base, anticipated operating income and return on equity in future periods, including income derived from the Treasury Division and Asset Management Unit, the improvement in the financial and performance strength of the Bank and the progress the Bank is making. These forward-looking statements reflect the expectations of the Bank’s management and are based on currently available data; however, actual experience with respect to these factors is subject to future events and uncertainties, which could materially impact the Bank’s expectations. Among the factors that can cause actual performance and results to differ materially are as follows: the anticipated growth of the Bank’s credit portfolio; the continuation of the Bank’s preferred creditor status; the impact of increasing/decreasing interest rates and of the macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace deposit withdrawals.

About Bladex

Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through September 30, 2010, Bladex had disbursed accumulated credits of approximately $167 billion.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Wednesday, October 13, 2010 at 12:30 p.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 December 13, 2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The conference ID# for the replayed call is 44126421. 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) 406-3694

E-mail address: bladex@i-advize.com

EXHIBIT I

CONSOLIDATED BALANCE SHEETS

	AT THE END OF,
	(A)			(B)			(C)			(A) - (B)						(A) - (C)
	September 30, 2010			June 30, 2010			September 30, 2009			CHANGE			%			CHANGE			%
	(In US$ million)

ASSETS:
Cash and due from banks	$	363		$	620		$	460		$	(257	)		(41	)%	$	(97	)		(21	)%
Trading assets		51			51			50			0			0			1			2
Securities available-for-sale		527			457			461			70			15			66			14
Securities held-to-maturity		20			13			0			7			54			20		n.m.		(*)
Investment fund		181			193			189			(12	)		(6	)		(8	)		(4	)
Loans		3,747			3,100			2,608			647			21			1,139			44
Less:
Allowance for loan losses		(69	)		(81	)		(90	)		12			(15	)		21			(23	)
Unearned income and deferred fees		(4	)		(4	)		(5	)		0			0			1			(20	)
Loans, net		3,674			3,015			2,513			659			22			1,161			46

Customers' liabilities under acceptances		0			20			5			(20	)		(100	)		(5	)		(100	)
Premises and equipment, net		7			7			7			0			0			0			0
Accrued interest receivable		26			27			25			(1	)		(4	)		1			4
Derivative financial instruments used for hedging - receivable		3			1			1			2			200			2			200
Other assets		10			10			11			0			0			(1	)		(9	)

TOTAL ASSETS	$	4,861		$	4,412		$	3,723		$	449			10	%	$	1,138			31	%

LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	29		$	23		$	36		$	6			26	%	$	(7	)		(19	)%
Time		1,831			1,484			1,186			347			23			645			54
Total Deposits		1,861			1,507			1,221			354			23			640			52

Trading liabilities		5			4			3			1			25			2			67
Securities sold under repurchase agreements		338			246			86			92			37			252			293
Short-term borrowings		790			434			306			356			82			484			158
Borrowings and long-term debt		1,028			1,370			1,298			(342	)		(25	)		(270	)		(21	)
Acceptances outstanding		0			20			5			(20	)		(100	)		(5	)		(100	)
Accrued interest payable		9			8			13			1			13			(4	)		(31	)
Derivative financial instruments used for hedging - payable		70			73			70			(3	)		(4	)		0			0
Reserve for losses on off-balance sheet credit risk		27			14			12			13			93			15			125
Other liabilities		18			24			15			(6	)		(25	)		3			20
TOTAL LIABILITIES	$	4,146		$	3,699		$	3,030		$	447			12	%	$	1,116			37	%

Redeemable noncontrolling interest in the investment fund		26			41			27			(15	)		(37	)		(1	)		(4	)

STOCKHOLDERS' EQUITY:
Common stock, no par value, assigned value of US$6.67		280			280			280			0			0			0			0
Additional paid-in capital in excess of assigned value of common stock		134			134			134			0			0			0			0
Capital reserves		95			95			95			0			0			0			0
Retained earnings		312			302			295			10			3			17			6
Accumulated other comprehensive loss		(5	)		(11	)		(9	)		6			(55	)		4			(44	)
Treasury stock		(126	)		(127	)		(130	)		1			(1	)		4			(3	)

TOTAL STOCKHOLDERS' EQUITY	$	689		$	673		$	666		$	16			2	%	$	23			3	%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.	$	4,861		$	4,412		$	3,723		$	449			10	%	$	1,138			31	%

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

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME

(In US$ thousand, except per share amounts and ratios)

	FOR THE THREE MONTHS ENDED
	(A)			(B)			(C)			(A) - (B)						(A) - (C)
	September 30, 2010			June 30, 2010			September 30, 2009			CHANGE			%			CHANGE			%

INCOME STATEMENT DATA:
Interest income	$	31,559		$	27,697		$	34,423		$	3,862			14	%	$	(2,864	)		(8	)%
Interest expense		(11,561	)		(10,500	)		(17,070	)		(1,061	)		10			5,509			(32	)
NET INTEREST INCOME		19,998			17,197			17,353			2,801			16			2,645			15
Reversal (provision) for loan losses		12,567			(8,723	)		380			21,290			(244	)		12,187			3,207
NET INTEREST INCOME, AFTER REVERSAL (PROVISION)
FOR LOAN LOSSES		32,565			8,474			17,733			24,091			284			14,832			84

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		(12,661	)		9,618			(1,549	)		(22,279	)		(232	)		(11,112	)		717
Fees and commissions, net		2,045			2,797			1,463			(752	)		(27	)		582			40
Derivative financial instrument and hedging		(36	)		(340	)		(1,105	)		304			(89	)		1,069			(97	)
Net gain (loss) from investment fund trading		4,179			(10,343	)		5,478			14,522			(140	)		(1,299	)		(24	)
Net gain (loss) from trading securities		(1,115	)		(502	)		2,936			(613	)		122			(4,051	)		(138	)
Net gain on sale of securities available-for-sale		0			0			546			0		n.m.		(*)		(546	)		(100	)
Gain (loss) on foreign currency exchange		722			(568	)		(843	)		1,290			(227	)		1,565			(186	)
Other income, net		146			117			138			29			25			8			6
NET OTHER INCOME (EXPENSE)		(6,720	)		779			7,064			(7,499	)		(963	)		(13,784	)		(195	)

OPERATING EXPENSES:
Salaries and other employee expenses		(5,545	)		(5,478	)		(4,652	)		(67	)		1			(893	)		19
Depreciation, amortization and impairment of premises and equipment		(622	)		(601	)		(644	)		(21	)		3			22			(3	)
Professional services		(1,726	)		(1,202	)		(751	)		(524	)		44			(975	)		130
Maintenance and repairs		(405	)		(347	)		(253	)		(58	)		17			(152	)		60
Expenses from the investment fund		(178	)		(278	)		(601	)		100			(36	)		423			(70	)
Other operating expenses		(1,894	)		(2,126	)		(1,636	)		232			(11	)		(258	)		16
TOTAL OPERATING EXPENSES		(10,370	)		(10,032	)		(8,537	)		(338	)		3			(1,833	)		21

Net Income (Loss)	$	15,475		$	(779	)	$	16,260		$	16,254			(2,087	)	$	(785	)		(5	)

Net Income (loss) attributable to the redeemable noncontrolling interest		507			(2,442	)		507			2,949			(121	)		0			0

NET INCOME ATTRIBUTABLE TO BLADEX	$	14,968		$	1,663		$	15,753		$	13,305			800	%	$	(785	)		(5	)%

PER COMMON SHARE DATA:
Basic earnings per share		0.41			0.05			0.43
Diluted earnings per share		0.41			0.05			0.43

Weighted average basic shares		36,679			36,648			36,539
Weighted average diluted shares		36,814			36,808			36,804

PERFORMANCE RATIOS:
Return on average assets		1.3	%		0.2	%		1.6	%
Return on average stockholders' equity		8.7	%		1.0	%		9.5	%
Net interest margin		1.73	%		1.67	%		1.76	%
Net interest spread		1.48	%		1.38	%		1.28	%
Operating expenses to total average assets		0.91	%		0.98	%		0.88	%

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

EXHIBIT III

SUMMARY OF CONSOLIDATED FINANCIAL DATA

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

	FOR THE NINE MONTHS ENDED
	September 30, 2010			September 30, 2009
	(In US$ thousand, except per share amounts & ratios)

INCOME STATEMENT DATA:
Net interest income	$	53,482		$	49,569
Fees and commissions, net		7,224			4,364
Reversal (provision) for loan and off-balance sheet credit losses, net		4,269			(15,437	)
Derivative financial instrument and hedging		(1,330	)		(2,026	)
Impairment of assets, net of recoveries		233			(94	)
Net gain (loss) from investment fund trading		(7,664	)		22,092
Net gain (loss) from trading securities		(3,096	)		13,751
Net gain on sale of securities available-for-sale		0			546
Gain (loss) on foreign currency exchange		1,466			(1,217	)
Other income, net		333			590
Operating expenses		(30,445	)		(28,305	)
Net Income	$	24,472		$	43,833
Net Income (loss) attributable to the redeemable noncontrolling interest		(2,255	)		885
NET INCOME ATTRIBUTABLE TO BLADEX	$	26,727		$	42,948

BALANCE SHEET DATA (In US$ millions):
Investment securities and trading assets		598			511
Investment fund		181			189
Loans, net		3,674			2,513
Total assets		4,861			3,723
Deposits		1,861			1,221
Securities sold under repurchase agreements		338			86
Short-term borrowings		790			306
Borrowings and long-term debt		1,028			1,298
Total liabilities		4,146			3,030
Stockholders' equity		689			666

PER COMMON SHARE DATA:
Basic earnings per share		0.73			1.18
Diluted earnings per share		0.73			1.17
Book value (period average)		18.45			17.22
Book value (period end)		18.77			18.23

(In thousand):
Weighted average basic shares		36,629			36,476
Weighted average diluted shares		36,773			36,649
Basic shares period end		36,690			36,546

SELECTED FINANCIAL RATIOS:
PERFORMANCE RATIOS:
Return on average assets		0.9	%		1.4	%
Return on average stockholders' equity		5.3	%		9.1	%
Net interest margin		1.70	%		1.63	%
Net interest spread		1.42	%		1.11	%
Operating expenses to total average assets		0.98	%		0.93	%

ASSET QUALITY RATIOS:
Non-accruing loans to total loans, net of discounts (1)		0.9	%		1.4	%
Charge offs to total loan portfolio (1)		0.1	%		0.0	%
Allowance for loan losses to total loan portfolio (1)		1.8	%		3.5	%
Allowance for losses on off-balance sheet credit risk to total contingencies		6.6	%		4.2	%

CAPITAL RATIOS:
Stockholders' equity to total assets		14.2	%		17.9	%
Tier 1 capital to risk-weighted assets		20.6	%		24.6	%
Total capital to risk-weighted assets		21.8	%		25.8	%

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

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE NINE MONTHS ENDED,
		(A)			(B)			(A) - (B)
		September 30, 2010			September 30, 2009			CHANGE			%
(In US$ thousand)
INCOME STATEMENT DATA:
Interest income		$	86,276		$	113,708		$	(27,432	)		(24	)%
Interest expense			(32,794	)		(64,139	)		31,345			(49	)
NET INTEREST INCOME			53,482			49,569			3,913			8
Reversal (provision) for loan losses			3,685			(34,357	)		38,042			(111	)
NET INTEREST INCOME, AFTER REVERSAL (PROVISION) FOR LOAN LOSSES			57,167			15,212			41,955			276

OTHER INCOME (EXPENSE):
Reversal for losses on off-balance sheet credit risk			584			18,920			(18,336	)		(97	)
Fees and commissions, net			7,224			4,364			2,860			66
Derivative financial instrument and hedging			(1,330	)		(2,026	)		696			(34	)
Impairment of assets, net of recoveries			233			(94	)		327			(348	)
Net gain (loss) from investment fund trading			(7,664	)		22,092			(29,756	)		(135	)
Net gain (loss) from trading securities			(3,096	)		13,751			(16,847	)		(123	)
Net gain on sale of securities available-for-sale			0			546			(546	)		(100	)
Gain (loss) on foreign currency exchange			1,466			(1,217	)		2,683			(220	)
Other income, net			333			590			(257	)		(44	)
NET OTHER INCOME (EXPENSE)			(2,250	)		56,926			(59,176	)		(104	)

OPERATING EXPENSES:
Salaries and other employee expenses			(16,432	)		(15,069	)		(1,363	)		9
Depreciation, amortization and impairment of premises and equipment			(1,899	)		(2,025	)		126			(6	)
Professional services			(4,035	)		(2,427	)		(1,608	)		66
Maintenance and repairs			(1,099	)		(780	)		(319	)		41
Expenses from the investment fund			(713	)		(2,720	)		2,007			(74	)
Other operating expenses			(6,267	)		(5,284	)		(983	)		19
TOTAL OPERATING EXPENSES			(30,445	)		(28,305	)		(2,140	)		8

Net Income.		$	24,472		$	43,833		$	(19,361	)		(44	)

Net Income (loss) attributable to the redeemable noncontrolling interest			(2,255	)		885			(3,140	)		(355	)

Net Income attributable to Bladex		$	26,727		$	42,948		$	(16,221	)		(38	)%

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE THREE MONTHS ENDED,
	September 30, 2010								June 30, 2010								September 30, 2009
	AVERAGE					AVG.			AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ million)

INTEREST EARNING ASSETS
Interest bearing deposits with banks	$	366		$	0.2		0.26	%	$	468		$	0.2		0.20	%	$	551		$	0.3		0.21	%
Loans, net of unearned income & deferred loan fees		3,424			27.0		3.09			2,912			23.5		3.20			2,478			27.4		4.33
Non-accrual loans		43			0.8		7.68			48			0.8		6.45			24			0.1		1.34
Trading assets		51			0.8		6.03			51			0.8		6.13			145			2.7		7.30
Investment securities		506			2.4		1.84			464			2.0		1.70			528			3.6		2.67
Investment fund		184			0.3		0.62			198			0.4		0.73			177			0.3		0.66

TOTAL INTEREST EARNING ASSETS	$	4,573		$	31.6		2.70	%	$	4,140		$	27.7		2.65	%	$	3,905		$	34.4		3.45	%

Non interest earning assets		37								45								44
Allowance for loan losses		(81	)							(75	)							(90	)
Other assets		13								11								10

TOTAL ASSETS	$	4,543							$	4,121							$	3,868

INTEREST BEARING LIABILITIES
Deposits	$	1,650		$	2.3		0.53	%	$	1,395		$	1.7		0.50	%	$	1,223		$	2.7		0.87	%
Trading liabilities		4			0.0		0.00			4			0.0		0.00			10			0.0		0.00
Investment fund		0			0.1	n.m.		(*)		0			0.3	n.m.		(*)		0			0.3	n.m.		(*)
Securities sold under repurchase agreement and Short-term borrowings		919			2.5		1.06			506			1.3		1.04			639			4.3		2.65
Borrowings and long term debt		1,144			6.7		2.30			1,380			7.1		2.04			1,213			9.7		3.12

TOTAL INTEREST BEARING LIABILITIES	$	3,718		$	11.6		1.22	%	$	3,284		$	10.5		1.26	%	$	3,085		$	17.1		2.16	%

Non interest bearing liabilities and other liabilities	$	111							$	120							$	108

TOTAL LIABILITIES		3,829								3,404								3,193

Redeemable noncontrolling interest in the investment fund		31								42								20

STOCKHOLDERS' EQUITY		683								675								655

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,543							$	4,121							$	3,868

NET INTEREST SPREAD							1.48	%							1.38	%							1.28	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	20.0		1.73	%				$	17.2		1.67	%				$	17.4		1.76	%

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

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE NINE MONTHS ENDED,
	September 30, 2010								September 30, 2009
	AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ million)

INTEREST EARNING ASSETS
Interest bearing deposits with banks	$	409		$	0.7		0.22	%	$	655		$	1.1		0.21	%
Loans, net of unearned income & deferred loan fees		3,020			72.3		3.16			2,551			89.8		4.64
Non-accrual loans		47			2.7		7.60			8			0.1		1.34
Trading assets		51			2.3		6.13			119			6.4		7.07
Investment securities		476			6.4		1.76			576			14.9		3.42
Investment fund		194			1.9		1.27			165			1.4		1.13

TOTAL INTEREST EARNING ASSETS	$	4,197		$	86.3		2.71	%	$	4,073		$	113.7		3.68	%

Non interest earning assets		43								49
Allowance for loan losses		(77	)							(75	)
Other assets		12								9

TOTAL ASSETS	$	4,175							$	4,055

INTEREST BEARING LIABILITIES
Deposits	$	1,455		$	6.2		0.56	%	$	1,209		$	9.2		1.00	%
Trading liabilities		4			0.0		0.00			11			0.0		0.00
Investment fund		0			0.6	n.m.		(*)		0			1.7	n.m.		(*)
Securities sold under repurchase agreement and Short-term borrowings		577			4.8		1.10			891			20.6		3.05
Borrowings and long term debt		1,305			21.2		2.15			1,179			32.6		3.65

TOTAL INTEREST BEARING LIABILITIES	$	3,340		$	32.8		1.29	%	$	3,291		$	64.1		2.57	%

Non interest bearing liabilities and other liabilities	$	120							$	126

TOTAL LIABILITIES		3,461								3,417

Redeemable noncontrolling interest in the investment fund		38								10

STOCKHOLDERS' EQUITY		676								628

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,175							$	4,055

NET INTEREST SPREAD							1.42	%							1.11	%
NET INTEREST INCOME AND NET INTEREST MARGIN				$	53.5		1.70	%				$	49.6		1.63	%

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

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME

(In US$ thousand, except per share amounts and ratios)

	NINE MONTHS			FOR THE THREE MONTHS ENDED															NINE MONTHS
	ENDED																		ENDED
	SEP 30/10			SEP 30/10			JUN 30/10			MAR 31/10			DEC 31/09			SEP 30/09			SEP 30/09

INCOME STATEMENT DATA:
Interest income	$	86,276		$	31,559		$	27,697		$	27,019		$	28,256		$	34,423		$	113,708
Interest expense		(32,794	)		(11,561	)		(10,500	)		(10,733	)		(13,073	)		(17,070	)		(64,139	)
NET INTEREST INCOME		53,482			19,998			17,197			16,286			15,183			17,353			49,569
Reversal (provision) for loan losses		3,685			12,567			(8,723	)		(159	)		16,063			380			(34,357	)

NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES		57,167			32,565			8,474			16,127			31,246			17,733			15,212

OTHER INCOME (EXPENSE):
Reversal (provision) for losses on off-balance sheet credit risk		584			(12,661	)		9,618			3,626			(15,456	)		(1,549	)		18,920
Fees and commissions, net		7,224			2,045			2,797			2,382			2,369			1,463			4,364
Derivative financial instrument and hedging		(1,330	)		(36	)		(340	)		(953	)		(507	)		(1,105	)		(2,026	)
Impairment of assets, net of recoveries		233			0			0			233			(27	)		0			(94	)
Net gain (loss) from investment fund trading		(7,664	)		4,179			(10,343	)		(1,500	)		2,906			5,478			22,092
Net gain (loss) from trading securities		(3,096	)		(1,115	)		(502	)		(1,479	)		(638	)		2,936			13,751
Net gains on sale of securities available-for-sale		0			0			0			0			0			546			546
Gain (loss) on foreign currency exchange		1,466			722			(568	)		1,312			1,830			(843	)		(1,217	)
Other income, net		333			146			117			71			322			138			590

NET OTHER INCOME (EXPENSE)		(2,250	)		(6,720	)		779			3,692			(9,201	)		7,064			56,926

TOTAL OPERATING EXPENSES:		(30,445	)		(10,370	)		(10,032	)		(10,043	)		(9,897	)		(8,537	)		(28,305	)
Net Income (loss)	$	24,472		$	15,475		$	(779	)	$	9,776		$	12,148		$	16,260		$	43,833

Net Income (loss) attributable to the redeemable noncontrolling interest		(2,255	)		507			(2,442	)		(320	)		233			507			885

NET INCOME ATTRIBUTABLE TO BLADEX	$	26,727		$	14,968		$	1,663		$	10,096		$	11,915		$	15,753		$	42,948

SELECTED FINANCIAL DATA

PER COMMON SHARE DATA
Basic earnings per share	$	0.73		$	0.41		$	0.05		$	0.28		$	0.33		$	0.43		$	1.18
PERFORMANCE RATIOS
Return on average assets		0.9	%		1.3	%		0.2	%		1.1	%		1.3	%		1.6	%		1.4	%
Return on average stockholders' equity		5.3	%		8.7	%		1.0	%		6.1	%		7.1	%		9.5	%		9.1	%
Net interest margin		1.70	%		1.73	%		1.67	%		1.71	%		1.60	%		1.76	%		1.63	%
Net interest spread		1.42	%		1.48	%		1.38	%		1.37	%		1.18	%		1.28	%		1.11	%
Operating expenses to average assets		0.98	%		0.91	%		0.98	%		1.06	%		1.05	%		0.88	%		0.93	%

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ million)

	FOR THE NINE MONTHS ENDED						FOR THE THREE MONTHS ENDED
	SEP 30/10			SEP 30/09			SEP 30/10			JUN 30/10			SEP 30/09

COMMERCIAL DIVISION:
Net interest income (1)	$	51.3		$	50.7		$	19.1		$	17.0		$	16.7
Non-interest operating income (2)		7.0			4.8			2.1			2.7			1.6
Operating expenses (3)		(20.8	)		(17.1	)		(7.2	)		(6.7	)		(5.3	)
Net operating income (4)		37.5			38.4			14.0			13.0			13.0
Reversal (provision) for loan and off-balance sheet credit losses, net		4.3			(15.4	)		(0.1	)		0.9			(1.2	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.0			0.0
NET INCOME ATTRIBUTABLE TO BLADEX	$	42.0		$	22.9		$	13.9		$	13.9		$	11.8
Average interest-earning assets (5)		3,067			2,559			3,466			2,960			2,502
End-of-period interest-earning assets (5)		3,742			2,603			3,742			3,096			2,603

TREASURY DIVISION:
Net interest income (loss) (1)	$	2.1		$	1.6		$	1.1		$	0.6		$	1.3
Non-interest operating income (loss)(2)		(2.8	)		11.2			(0.4	)		(1.4	)		1.6
Operating expenses (3)		(6.4	)		(6.2	)		(2.2	)		(2.0	)		(1.7	)
Net operating income (loss) (4)		(7.1	)		6.6			(1.5	)		(2.8	)		1.2
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX..	$	(7.1	)	$	6.6		$	(1.5	)	$	(2.8	)	$	1.2
Average interest-earning assets (6)		935			1,349			923			982			1,225
End-of-period interest-earning assets (6)		960			971			960			1,140			971

ASSET MANAGEMENT UNIT:
Net interest income (loss) (1)	$	0.1		$	(2.7	)	$	(0.2	)	$	(0.4	)	$	(0.7	)
Non-interest operating income (loss) (2)		(7.2	)		22.1			4.3			(10.1	)		5.5
Operating expenses (3)		(3.2	)		(5.0	)		(1.0	)		(1.3	)		(1.5	)
Net operating income (loss) (4)		(10.3	)		14.4			3.1			(11.8	)		3.3
Net income (loss)		(10.3	)		14.4			3.1			(11.8	)		3.3
Net income (loss) attributable to the redeemable noncontrolling interest		(2.3	)		0.9			0.5			(2.4	)		0.5
NET INCOME (LOSS) ATTRIBUTABLE TO BLADEX	$	(8.0	)	$	13.5		$	2.6		$	(9.4	)	$	2.8
Average interest-earning assets (7)		194			165			184			198			177
End-of-period interest-earning assets (7)		181			189			181			193			189

CONSOLIDATED:
Net interest income (1)	$	53.5		$	49.6		$	20.0		$	17.2		$	17.4
Non-interest operating income (loss) (2)		(3.0	)		38.0			6.0			(8.8	)		8.6
Operating expenses (3) .		(30.4	)		(28.3	)		(10.4	)		(10.0	)		(8.5	)
Net operating income (4)		20.1			59.3			15.6			(1.6	)		17.5
Reversal (provision) for loan and off-balance sheet credit losses, net		4.3			(15.4	)		(0.1	)		0.9			(1.2	)
Impairment of assets, net of recoveries		0.2			(0.1	)		0.0			0.0			0.0
Net income		24.6			43.8			15.5			(0.7	)		16.3
Net income (loss) attributable to the redeemable noncontrolling interest		(2.3	)		0.9			0.5			(2.4	)		0.5
NET INCOME ATTRIBUTABLE TO BLADEX	$	26.9		$	42.9		$	15.0		$	1.7		$	15.8
Average interest-earning assets		4,196			4,073			4,573			4,140			3,905
End-of-period interest-earning assets		4,883			3,763			4,883			4,429			3,763

The bank has aligned its operations into three major business segments, based on the nature of clients, products and on credit risk standards.

Interest expenses are allocated based on average credits.

(1) Interest income on interest-earning assets, net of allocated cost of funds.

(2) Non-interest operating income consists of net other income (expense), excluding reversals of provisions for credit losses and impairment on assets.

(3) Operating expenses are calculated based on average credits.

(4) Net operating income refers to net income excluding reversals of provisions for credit losses and impairment on assets.

(5) Includes loans, net of unearned income and deferred loan fees.

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

(7) Includes investment fund.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)						(B)						(C)
	30SEP10						30JUN10						30SEP09						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	238			5.0		$	204			5.0		$	158			4.6		$	34		$	81
BRAZIL		1,648			34.7			1,623			39.9			1,393			40.9			25			255
CHILE		437			9.2			279			6.8			162			4.8			159			275
COLOMBIA		579			12.2			496			12.2			359			10.6			83			220
COSTA RICA		143			3.0			133			3.3			95			2.8			9			48
DOMINICAN REPUBLIC		86			1.8			80			2.0			63			1.9			6			22
ECUADOR		160			3.4			109			2.7			49			1.4			51			111
EL SALVADOR		33			0.7			34			0.8			81			2.4			(0	)		(48	)
FRANCE		0			0.0			22			0.5			0			0.0			(22	)		0
GUATEMALA		83			1.8			91			2.2			77			2.3			(8	)		6
HONDURAS		35			0.7			28			0.7			22			0.6			7			14
JAMAICA		28			0.6			18			0.4			22			0.6			11			7
MEXICO		532			11.2			387			9.5			411			12.1			145			121
PANAMA		150			3.2			121			3.0			112			3.3			30			38
PERU		395			8.3			244			6.0			152			4.5			151			243
TRINIDAD & TOBAGO		62			1.3			39			0.9			20			0.6			24			42
UNITED STATES		0			0.0			19			0.5			5			0.1			(19	)		(5	)
URUGUAY		2			0.0			3			0.1			41			1.2			(1	)		(39	)
VENEZUELA		75			1.6			84			2.1			106			3.1			(9	)		(31	)
OTHER		64			1.3			58			1.4			75			2.2			6			(11	)

TOTAL CREDIT PORTFOLIO (1)	$	4,751			100	%	$	4,071			100	%	$	3,402			100	%	$	681		$	1,349

UNEARNED INCOME AND COMMISSION (2)		(4	)					(4	)					(5	)					(0	)		1

TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	4,747					$	4,067					$	3,397					$	680		$	1,350

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

(2)	Represents unearned income and commission on loans.

EXHIBIT X

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)						(B)						(C)
	30SEP10						30JUN10						30SEP09						Change in Amount
COUNTRY	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	238			5.7		$	204			5.8		$	158			5.5		$	34		$	81
BRAZIL		1,493			35.9			1,496			42.2			1,266			43.8			(3	)		226
CHILE		409			9.8			251			7.1			135			4.7			158			274
COLOMBIA		427			10.3			342			9.6			214			7.4			85			213
COSTA RICA		143			3.4			133			3.8			95			3.3			9			48
DOMINICAN REPUBLIC		82			2.0			75			2.1			57			2.0			7			25
ECUADOR		160			3.8			109			3.1			49			1.7			51			111
EL SALVADOR		18			0.4			18			0.5			65			2.2			(0	)		(47	)
FRANCE		0			0.0			22			0.6			0			0.0			(22	)		0
GUATEMALA		72			1.7			80			2.2			66			2.3			(7	)		7
HONDURAS		35			0.8			28			0.8			22			0.7			7			14
JAMAICA		28			0.7			18			0.5			22			0.7			11			7
MEXICO		474			11.4			329			9.3			354			12.3			145			119
PANAMA		69			1.7			77			2.2			68			2.4			(8	)		1
PERU		364			8.8			213			6.0			121			4.2			150			242
TRINIDAD & TOBAGO		62			1.5			39			1.1			20			0.7			24			42
UNITED STATES		0			0.0			19			0.5			5			0.2			(19	)		(5	)
URUGUAY		2			0.0			3			0.1			41			1.4			(1	)		(39	)
VENEZUELA		75			1.8			84			2.4			106			3.7			(9	)		(31	)
OTHER		3			0.1			7			0.2			26			0.9			(4	)		(23	)

TOTAL COMMERCIAL PORTFOLIO (1)	$	4,154			100	%	$	3,547			100	%	$	2,888			100	%	$	607		$	1,266

UNEARNED INCOME AND COMMISSION (2)		(4	)					(4	)					(5	)					(0	)		1

TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION	$	4,150					$	3,543					$	2,883					$	606		$	1,266

(1)	Includes book value of loans, 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.

EXHIBIT XI

TREASURY PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,						Change in Amount
	(A)		(B)		(C)
COUNTRY	30SEP10		30JUN10		30SEP09		(A) - (B)			(A) - (C)

BRAZIL	$	155	$	127	$	127	$	28		$	29
CHILE		28		28		28		1			1
COLOMBIA		152		154		145		(2	)		7
DOMINICAN REPUBLIC		3		5		6		(2	)		(3	)
EL SALVADOR		16		16		16		(0	)		(0	)
GUATEMALA		11		11		11		(0	)		(0	)
MEXICO		58		58		57		1			1
PANAMA		81		44		44		37			37
PERU		32		31		31		1			1
OTHER		61		50		49		10			11

TOTAL TREASURY PORTOFOLIO (1)	$	597	$	524	$	514	$	74		$	83

(1)	Includes securities available for sale and held to maturity, trading assets and contingent assets, which consist of credit default swap.

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

	QUARTERLY INFORMATION						Change in Amount
	(A)		(B)		(C)
COUNTRY	3QTR10		2QTR10		3QTR09		(A) - (B)			(A) - (C)

ARGENTINA	$	132	$	60	$	20	$	72		$	112
BRAZIL		420		520		329		(100	)		91
CHILE		188		20		62		168			126
COLOMBIA		383		264		51		120			333
COSTA RICA		108		85		67		23			40
DOMINICAN REPUBLIC		131		39		55		92			75
ECUADOR		146		70		37		76			108
EL SALVADOR		1		11		30		(11	)		(29	)
FRANCE		0		22		0		(22	)		0
GUATEMALA		30		46		19		(16	)		11
HONDURAS		21		19		17		3			5
JAMAICA		44		37		20		7			24
MEXICO		229		66		87		163			142
PANAMA		80		61		1		19			79
PERU		270		107		109		162			161
TRINIDAD & TOBAGO		54		42		0		12			54
UNITED STATES		27		19		5		9			22
URUGUAY		0		0		8		0			(8	)
VENEZUELA		65		84		108		(19	)		(44	)
OTHER		9		1		25		8			(16	)

TOTAL CREDIT DISBURSED (1)	$	2,338	$	1,572	$	1,050	$	765		$	1,287

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