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
16, 2011
FOREIGN
TRADE BANK OF LATIN AMERICA, INC.
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By:
/s/ Pedro Toll
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Name:
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Pedro
Toll
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Title:
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General
Manager
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BLADEX
REPORTS FULL YEAR NET INCOME OF $42.2 MILLION; $1.15 PER SHARE
FOURTH
QUARTER NET INCOME OF $15.5 MILLION; $0.42 PER SHARE
PANAMA CITY, February 16, 2011
– Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the
Bank”) announced today its results for the fourth quarter and full-year ended
December 31, 2010.
Quarterly
and Annual Business Highlights
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·
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Fourth
quarter 2010 Net Income (*)
amounted to $15.5 million, an increase of $0.5 million, or 4%,
compared to third quarter 2010, and an increase of $3.6 million, or 30%,
compared to fourth quarter 2009.
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·
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Net
income in 2010 amounted to $42.2 million compared to $54.9 million in
2009, as the strong performance of the Commercial Division was mostly
offset by second quarter losses in the Asset Management
Unit.
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·
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The
Commercial Portfolio grew $292 million, or 7% versus the previous quarter
and $1.3 billion, or 43%, year-on-year to reach balances of $4.4 billion.
Fourth quarter 2010 credit disbursements amounted to $2.2 billion,
compared to the $2.3 billion in the third quarter. 2010
disbursements reached $7.4 billion, up $3.2 billion, or 79%, from
2009.
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·
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On
a year-on-year-basis, fees and commissions grew 53%, amounting to $10.3
million.
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·
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Net
interest income in the fourth quarter 2010 was $21.0 million, a $1.0
million, or 5%, increase over the previous period and a $5.8 million, or
38% increase over the fourth quarter 2009. Net interest income
in 2010 amounted to $74.5 million, a 15% increase from
2009. Net interest margin increased to 1.70% in 2010 from 1.62%
in 2009. Average funding costs
declined 112bps compared to
2009.
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·
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The
Commercial Division’s Net Income for 2010 increased $22.0 million (+63%)
to $56.8 million versus $34.8 million in 2009, mainly as a result of
portfolio growth and improved credit quality. The Division’s
Net Income in the fourth quarter 2010 totaled $14.9 million, a 7% increase
over the previous quarter, and a 25% increase over the fourth quarter
2009.
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2
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·
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The
Treasury Division reported a 2010 Net Loss of $4.9 million, compared to
Net Income of $6.1 million in 2009, driven by losses from trading
portfolio valuations, as increases in securities valuations were offset by
the diminished valuations of associated trading derivatives used to hedge
interest rate risk.
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·
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The
Asset Management Unit reported a Net Loss of $9.7 million in 2010,
compared to Net Income of $14.1 million in 2009 as the result of trading
losses in Bladex Capital Growth Fund (BCGF, the Investment Fund) incurred
mostly during the second quarter. The Bank will gradually
reduce its exposure to BCGF to its original $100 million investment,
freeing close to $50 million to be used to fund more fee generating
activities.
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·
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Portfolio
quality improved year-on-year as credit risks abated throughout the
Region, and as non-accrual loans declined to $29.0 million in the fourth
quarter 2010, down from $32.9 million in the previous quarter, and from
$50.5 million in the fourth quarter of
2009.
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·
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Scale
efficiencies improved in 2010, with expenses growing $3.9 million, or 10%
year-on-year, to $42.1 million, well below the commercial portfolio’s 43%
growth, as the Bank invested in commercial and risk management
resources.
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·
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The
Bank’s equity consists entirely of common stock equity. The
Bank’s Tier 1 capital ratio as of December 31, 2010 stood at 20.5%,
compared to 20.6% as of September 30, 2010, and 25.8% as of December 31,
2009, while the leverage ratio as of these dates was 7.3x, 7.1x, and 5.7x,
respectively.
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(*) 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: “In many ways, Bladex's solid performance during the
fourth quarter was a proxy for the sustained improvement of our business
fundamentals during 2010, which brought about a steady commercial portfolio
growth of 43%, while fees increased by 53%, deposits rose by
45%, net interest margins widened and our network of representative offices
expanded. Concurrently, portfolio quality continued to improve, as non-accrual
loans fell to just $29.0 million, out of a total credit portfolio of $4.9
billion. Expenses involved
in fueling these improvements rose during the year by a
modest 10%, while the Bank maintained a Tier 1 ratio in excess of 20%, and
liquidity remained comfortably above $400 million, or 8% of
assets.
3
The $42.2
million consolidated Net Income for the 2010 was not higher
principally because the Asset Management's Unit had its first down
full-year since we created the Unit in 2005. The Bank's $15.5
million net income for the fourth quarter, however, demonstrates that have
achieved our goal of generating strong results independently
of the performance of the Division's BCGF fund. As we continue to
strengthen the Division's fee-income generation, we plan to gradually
re-deploy our nearly $50 million of accumulated earnings in the BCGF
over the year 2011 to pursue other opportunities arising in our
market.
2010 was
the first of a two year program designed to substantially increase the Bank's
footprint and strengthen its franchise based on rapidly growing trade
flows in Latin America, a region where we enjoy significant
competitive advantages in terms of market knowledge, support from
our government shareholders, stellar reputation, and timely, tailored
customer service. 2011 will be another year of growth, as we continue expanding
our penetration of the corporate markets, developing new products,
supporting the rapidly growing intra regional trade, expanding our delivery
network, and continuing to serve as the region's premier
bank-to-banks. As was the case with our recent common dividend
increase, we look forward to continuing to share our success with our
shareholders." Mr. Rivera concluded.
4
CONSOLIDATED
RESULTS OF OPERATIONS
KEY
FINANCIAL FIGURES AND RATIOS
The
following table illustrates the consolidated results of operations of the Bank
for the periods indicated below:
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(US$ million, except percentages and per share amounts)
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2010
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2009
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4Q10
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3Q10
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4Q09
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|||||||||||||||
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Net
Interest Income
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$ | 74.5 | $ | 64.8 | $ | 21.0 | $ | 20.0 | $ | 15.2 | ||||||||||
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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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$ | 51.8 | $ | 49.7 | $ | 14.3 | $ | 14.0 | $ | 11.3 | ||||||||||
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Treasury
Division
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$ | (4.9 | ) | $ | 6.1 | $ | 2.2 | $ | (1.5 | ) | $ | (0.5 | ) | |||||||
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Asset
Management Unit
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$ | (12.1 | ) | $ | 15.2 | $ | (1.8 | ) | $ | 3.1 | $ | 0.8 | ||||||||
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Net
Operating Income
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$ | 34.7 | $ | 70.9 | $ | 14.7 | $ | 15.6 | $ | 11.6 | ||||||||||
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Net
income
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$ | 39.7 | $ | 56.0 | $ | 15.3 | $ | 15.5 | $ | 12.1 | ||||||||||
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Net
income (loss) attributable to the redeemable noncontrolling
interest
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$ | (2.4 | ) | $ | 1.1 | $ | (0.2 | ) | $ | 0.5 | $ | 0.2 | ||||||||
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Net
Income attributable to Bladex
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$ | 42.2 | $ | 54.9 | $ | 15.5 | $ | 15.0 | $ | 11.9 | ||||||||||
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Net Income per Share
(1)
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$ | 1.15 | $ | 1.50 | $ | 0.42 | $ | 0.41 | $ | 0.33 | ||||||||||
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Book
Value per common share (period end)
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$ | 18.99 | $ | 18.49 | $ | 18.99 | $ | 18.77 | $ | 18.49 | ||||||||||
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Return
on Average Equity (“ROE”)
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6.2 | % | 8.6 | % | 8.9 | % | 8.7 | % | 7.1 | % | ||||||||||
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Operating Return on
Average Equity ("Operating ROE")
(2)
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5.1 | % | 11.1 | % | 8.4 | % | 9.0 | % | 6.9 | % | ||||||||||
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Return
on Average Assets (“ROA”)
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1.0 | % | 1.4 | % | 1.3 | % | 1.3 | % | 1.3 | % | ||||||||||
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Net
Interest Margin
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1.70 | % | 1.62 | % | 1.70 | % | 1.73 | % | 1.60 | % | ||||||||||
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Efficiency Ratio
(3)
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55 | % | 35 | % | 44 | % | 40 | % | 46 | % | ||||||||||
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Tier 1 Capital (4)
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$ | 701 | $ | 679 | $ | 701 | $ | 690 | $ | 679 | ||||||||||
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Total Capital (5)
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$ | 744 | $ | 712 | $ | 744 | $ | 732 | $ | 712 | ||||||||||
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Risk-Weighted
Assets
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$ | 3,417 | $ | 2,633 | $ | 3,417 | $ | 3,352 | $ | 2,633 | ||||||||||
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Tier 1 Capital Ratio
(4)
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20.5 | % | 25.8 | % | 20.5 | % | 20.6 | % | 25.8 | % | ||||||||||
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Total Capital Ratio
(5)
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21.8 | % | 27.0 | % | 21.8 | % | 21.8 | % | 27.0 | % | ||||||||||
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Stockholders’
Equity
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$ | 697 | $ | 676 | $ | 697 | $ | 689 | $ | 676 | ||||||||||
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Stockholders’
Equity to Total Assets
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13.7 | % | 17.4 | % | 13.7 | % | 14.2 | % | 17.4 | % | ||||||||||
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Other
Comprehensive Income Account ("OCI")
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$ | (6 | ) | $ | (6 | ) | $ | (6 | ) | $ | (5 | ) | $ | (6 | ) | |||||
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Leverage (times)
(6)
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7.3 | 5.7 | 7.3 | 7.1 | 5.7 | |||||||||||||||
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Liquid Assets / Total
Assets (7)
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8.2 | % | 10.4 | % | 8.2 | % | 6.9 | % | 10.4 | % | ||||||||||
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Liquid
Assets / Total Deposits
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23.1 | % | 32.0 | % | 23.1 | % | 18.1 | % | 32.0 | % | ||||||||||
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Non-Accruing
Loans to Total Loans, net
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0.7 | % | 1.8 | % | 0.7 | % | 0.9 | % | 1.8 | % | ||||||||||
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Allowance
for Credit Losses to Commercial Portfolio
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2.1 | % | 3.2 | % | 2.1 | % | 2.3 | % | 3.2 | % | ||||||||||
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Total
Assets
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$ | 5,100 | $ | 3,879 | $ | 5,100 | $ | 4,861 | $ | 3,879 | ||||||||||
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 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.
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(5)
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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.
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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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5
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 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
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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, 2010, Bladex had disbursed
accumulated credits of approximately $169 billion.
Conference
Call Information
There
will be a conference call to discuss the Bank’s quarterly and annual results on
Thursday, February 17, 2011 at 9:30 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 17,
2011. Please dial (877) 919-4059 or (334) 323-7226, and follow the
instructions. The conference ID# for the replayed call is
32221920. 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
6