SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 Or 15d-16 Of The
Securities Exchange Act of 1934

Long form of Press Release

BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.
(Exact name of Registrant as specified in its Charter)

LATIN AMERICAN EXPORT BANK
(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia
P.O. Box 0819-08730
El Dorado, 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 o


(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 o  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 19, 2008    
     
     
 
Banco Latinoamericano de Exportaciones, S.A.
 
 
 
 
 
 
  By:   /s/ Pedro Toll
 
Name: Pedro Toll
Title: Deputy Manager
 


FOR IMMEDIATE RELEASE
 
Bladex Reports Full Year 2007 Net Income of $72.2 million, up 25% from 2006 and
Fourth Quarter Net Income of $15.5 million, up 5% from prior quarter;
Asset quality remains strong; liquidity strengthens.
Financial Highlights
 
Full Year 2007 vs. Full Year 2006:
 
 
·
Net income amounted to $72.2 million, an increase of 25%.
     
 
·
Operating income(1) amounted to $71.2 million, an increase of 81%.
     
 
·
The Commercial Division’s operating income increased 25%, to $42.3 million, driven by increased net interest income.
     
 
·
The Treasury Division’s operating income increased 84%, driven by higher net gains on the sale of securities available for sale.
     
 
·
Bladex Asset Management’s (“BAM”) operating income increased $18.6 million, driven by trading gains.
     
 
·
The Bank’s efficiency ratio improved from 42% to 34%.
 
Fourth Quarter 2007 vs. Third Quarter 2007:
 
 
·
Net income stood at $15.5 million, increasing 5%. Operating income amounted to $15.8 million, increasing 4%, driven by 9% in higher net interest income.
     
 
·
The average commercial portfolio rose 6% to $4.2 billion.
     
 
·
The Bank’s liquidity ratio (liquid assets / total assets) strengthened from 7.3% to 8.4%; deposits rose 1% to $1.5 billion.
     
 
·
As of December 31, 2007, the Bank had zero credits in non-accruing or past due status.
 
Fourth Quarter 2007 vs. Fourth Quarter 2006:
 
 
·
Operating income increased 12%, driven primarily by increased net interest income and non-interest operating income, which offset higher operating expenses.
     
 
·
Net income declined 26%, because of the impact of a one-time $5.6 million recovery on impaired assets that took place in the fourth quarter 2006.
     
  · The loan portfolio grew 25% to $ 3.7 billion.
 

(1) Operating income refers to net income, excluding reversals (provisions) for credit losses, and recoveries (impairment), on assets.

Panama City, Republic of Panama, February 19, 2008 - Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”) announced today its results for the fourth quarter ended December 31, 2007.
 

 
The table below depicts selected key financial figures and ratios for the periods indicated (the Bank’s financial statements are prepared in accordance with U.S. GAAP, and all figures are stated in U.S. dollars):
Key Financial Figures
 
(US$ million, except percentages and per share amounts)
 
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Net interest income
 
$
58.8
 
$
70.6
 
$
16.7
 
$
17.6
 
$
19.1
 
Operating income by business segment:
                               
Commercial Division
 
$
33.7
 
$
42.3
 
$
8.6
 
$
10.8
 
$
11.4
 
Treasury Division
 
$
5.6
 
$
10.3
 
$
0.6
 
$
0.8
 
$
2.8
 
Bladex Asset Management
 
$
0.0
 
$
18.6
 
$
4.9
 
$
3.7
 
$
1.5
 
Operating income
 
$
39.3
 
$
71.2
 
$
14.1
 
$
15.2
 
$
15.8
 
Net income
 
$
57.9
 
$
72.2
 
$
21.1
 
$
14.8
 
$
15.5
 
                                 
EPS (1)
 
$
1.56
 
$
1.99
 
$
0.58
 
$
0.41
 
$
0.43
 
Book value per common share
 
$
16.07
 
$
16.83
 
$
16.07
 
$
16.89
 
$
16.83
 
Return on average equity (“ROE”) p.a.
   
10.0
%
 
11.9
%
 
14.5
%
 
9.6
%
 
9.9
%
Tier 1 capital ratio
   
24.4
%
 
20.9
%
 
24.4
%
 
21.6
%
 
20.9
%
Net interest margin
   
1.76
%
 
1.71
%
 
1.76
%
 
1.65
%
 
1.69
%
                                 
Liquid Assets (2) / Total Assets
   
10.0
%
 
8.4
%
 
10.0
%
 
7.3
%
 
8.4
%
Liquid Assets (2) / Total Deposits
   
37.7
%
 
27.4
%
 
37.7
%
 
22.3
%
 
27.4
%
                                 
Total assets
 
$
3,978
 
$
4,791
 
$
3,978
 
$
4,454
 
$
4,791
 
Total stockholders’ equity
 
$
584
 
$
612
 
$
584
 
$
614
 
$
612
 
 
 
(1)
Earnings per share calculations are based on the average number of shares outstanding during each period.
 
 
(2)
Excludes cash balances in the proprietary asset management portfolio.

The following graphs illustrate Operating Income and the Return on Average Stockholders’ Equity trends from 2005 through 2007:
 
img1
 
2


img2
 
Comments from the Chief Executive Officer
 
Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the quarterly and year end results:

“The Bank’s performance during the fourth quarter, and during 2007 as a whole, was a proxy for the steady, quality growth pattern established by Bladex during the last four years.

During 2007, we achieved steady growth and solid returns across all of our business lines. The operating contribution of the Commercial Division increased 25%, the second consecutive year of double digit growth rates. The Commercial Division remains at the heart of the Bank’s business, responsible for 59% of the year’s operating results.

Our Treasury Division had a successful year as well, contributing 15% of operating income. In addition, we were able to strengthen liquidity and improve the diversification and relative cost of our funding.

Bladex’s proprietary asset management operations had what, in our opinion, can be objectively described as a banner year, with returns over NAV amounting to 23.34%.

These results prove that our business model combines the strength and stability of our credit risk-driven core business with higher-return, market-risk oriented activities.

After a four year period of ample liquidity and lax credit standards in the markets (to which Bladex never subscribed, as evidenced by our pristine portfolio), we are experiencing a steady improvement in our intermediation margins. In addition, current circumstances in the markets, while increasing the levels of volatility, provide Bladex with attractive opportunities.
 
3

 
Events in the financial markets during the last few months compel me to state unequivocally that Bladex is not afflicted with any of the types problems impacting some segments of the international financial industry. The Bank’s accounting records and information are simple, clear, transparent, and reflective of the entirety of our business.

Regarding our plans moving forward, further, steady improvement in ROE, while continuing to strengthen the Bank’s growing core business, will remain the driving force behind the management of the company. We will continue optimizing our business, convinced that our valuation will reflect the unique value of our franchise,“ Mr. Rivera concluded.
 
CONSOLIDATED RESULTS OF OPERATIONS
 
Net Income
 
Yearly Variation
 
For 2007, net income amounted to $72.2 million, up $14.3 million, or 25% from the $57.9 million reported in 2006. This result reflects a $31.9 million, or 81%, increase in operating income, which was mainly driven by the combination of a $11.7 million, or 20%, increase in net interest income (mostly from the Commercial Division), $23.0 million in higher gains at Bladex Asset Management (“BAM”), and $6.6 million on gains on sales in the available for sale investment portfolio.
 
The following graphs illustrate the percentage distribution of the Bank’s net income:
 
Net Income Distribution
 
img3
 
img4
 
4

 
The following graphs illustrate the percentage distribution of the Bank’s operating revenues:
 
Operating Revenues (1) Distribution
 
 
(1)
Operating revenues refers to net income excluding operating expenses, reversals (provisions) for credit losses, and recoveries (impairment), on assets.

 
img5
 
img6
 
Quarterly Variation
 
Net income for the fourth quarter 2007 amounted to $15.5 million, an increase of $0.7 million, or 5%, from the third quarter 2007, and 26% below the level of the fourth quarter 2006. The increased net income figure in the fourth quarter with respect to the third quarter was mostly attributed to an increase in the Commercial Division’s net interest income, in addition to the Treasury Division’s higher net gains on the sale of securities available for sale. These results were partially offset by an increase in operating expenses, and smaller trading gains in Bladex Asset Management (“BAM”) operations.
 
The 26% decrease in net income in the fourth quarter 2007 compared to the fourth quarter 2006 mostly reflects a one-time recovery on impaired assets that took place in 2006, as well as higher generic provisions for credit losses, both of which offset the 12% increase in operating income.
 
The following graphs illustrate the percentage distribution of the Bank’s net income:
 
Net Income Distribution
 
img7
 
img8
 
5

 
NET INTEREST INCOME AND MARGINS
 
The table below shows the Bank’s net interest income and net interest margin for the periods indicated:   
 
(In US$ million, except percentages)
                     
   
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Net Interest Income
                               
Commercial Division
                               
Accruing portfolio
 
$
49.0
 
$
64.1
 
$
14.3
 
$
16.2
 
$
17.7
 
Non-accruing portfolio
   
2.0
   
0.0
   
0.0
   
0.0
   
0.0
 
Commercial Division
 
$
50.9
 
$
64.1
 
$
14.3
 
$
16.2
 
$
17.7
 
Treasury Division
   
6.9
   
6.2
   
1.6
   
1.7
   
2.1
 
Bladex Asset Management
   
1.0
   
0.2
   
0.8
   
(0.3
)
 
(0.7
)
Consolidated
 
$
58.8
 
$
70.6
 
$
16.7
 
$
17.6
 
$
19.1
 
                                 
Net Interest Margin (1)
   
1.76
%
 
1.71
%
 
1.76
%
 
1.65
%
 
1.69
%
 
(1) Net interest income divided by average balance of interest-earning assets.

2007 vs. 2006
 
Net interest income for 2007 totaled $70.6 million, up $11.7 million, or 20%, from 2006. The increase in net interest income was the result of higher average balances in the loan portfolio (24%), and increased weighted average lending spreads over Libor.
 
4Q07 vs. 3Q07
 
Net interest income for the fourth quarter 2007 reached $19.1 million, an increase of 9%, driven by higher average balances in the loan portfolio, and by increased weighted average lending spreads over Libor, which led to an increase in the net interest margin (“NIM”).
 
FEES AND COMMISSIONS
 
The following table provides a breakdown of fees and commissions for the periods indicated:
 
 (In US$ thousands)
   
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Letters of credit
 
$
4,121
 
$
2,842
 
$
1,208
 
$
625
 
$
895
 
Guarantees
   
1,419
   
1,088
   
245
   
268
   
322
 
Loans
   
556
   
836
   
167
   
187
   
194
 
Other (1)
   
297
   
789
   
101
   
93
   
171
 
Fees and commissions, net
 
$
6,393
 
$
5,555
 
$
1,722
 
$
1,173
 
$
1,582
 
 
 (1) Net of commission expenses.
 
6

 
For 2007, fees and commissions decreased 13%, or $838 thousand, mostly due to lower letter of credit and guarantees activity during the first part of the year.

Fees and commissions for the fourth quarter 2007 increased 35%, or $409 thousand, compared to the third quarter 2007, mostly due to the increased commission income from increased letter of credit and guarantees activity during the latter part of the year.
 
PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES
 
As of December 31, 2007, the Bank had zero credits in non-accruing or past-due status. The Bank has no exposure to the sub-prime or mortgage segments in any market, nor does it carry any mono-line insurance risk. In addition, contingent liabilities consist mainly of letters of credit, country risk guarantees and loan commitments pertaining to the Bank’s traditional intermediation activities.

As of December 31, 2007, the allowance for credit losses amounted $83.4 million, an increase of $0.3 million from September 30, 2007, reflecting a $3.0 million decrease in the generic allowance for loan losses, and a $3.2 million increase in the generic reserve for off-balance sheet credits.

The $3.0 million decrease in the allowance for loan losses was the result of both changes in the trade mix of the loan portfolio and in the overall country risk profile. The $3.2 million increase in the reserve for losses on off-balance credits mostly reflects increased letter of credit exposure in higher risk markets.

As of December 31, 2007, the ratio of the allowance for credit losses to the commercial portfolio was 1.9%, compared to 2.1% from September 30, 2007, and 2.2% as of December 31, 2006.
 
The following table depicts information regarding the allowance for credit losses, for the dates indicated:
 
(In US$ million)
 
 
31DEC06
 
31MAR07
 
30JUN07
 
30SEP07
 
31DEC07
 
Allowance for loan losses:
                               
At beginning of period
 
$
49.8
 
$
51.3
 
$
56.6
 
$
69.0
 
$
72.6
 
Provisions
   
1.5
   
5.4
   
6.2
   
3.4
   
(3.0
)
Recoveries
   
0.0
   
0.0
   
6.2
   
0.3
   
0.0
 
End of period balance
 
$
51.3
 
$
56.6
 
$
69.0
 
$
72.6
 
$
69.6
 
                                 
Reserve for losses on off-balance sheet credit risk:
                               
Balance at beginning of the period
 
$
30.1
 
$
27.2
 
$
21.0
 
$
13.5
   
10.5
 
Provisions (reversals)
   
(2.9
)
 
(6.2
)
 
(7.6
)
 
(3.0
)
 
3.2
 
End of period balance
 
$
27.2
 
$
21.0
 
$
13.5
 
$
10.5
 
$
13.7
 
                                 
Total allowance for credit losses
 
$
78.5
 
$
77.6
 
$
82.4
 
$
83.1
 
$
83.4
 
 
7

 
OPERATING EXPENSES AND EFFICIENCY LEVEL
 
The following table shows a breakdown of the operating expenses’ components for the periods indicated:
   
(In US$ thousands)                      
   
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Salaries and other employee expenses
 
$
16,826
 
$
22,049
 
$
5,806
 
$
4,865
 
$
6,687
 
Depreciation and amortization
   
1,406
   
2,556
   
547
   
621
   
668
 
Professional services
   
2,671
   
3,562
   
699
   
593
   
1,006
 
Maintenance and repairs
   
1,000
   
1,188
   
175
   
249
   
370
 
Other operating expenses
   
7,026
   
7,673
   
2,034
   
2,326
   
1,796
 
Total Operating Expenses
 
$
28,929
 
$
37,027
 
$
9,261
 
$
8,652
 
$
10,527
 
 
2007 vs. 2006
 
Operating expenses increased by $8.1 million, or 28%, principally due to:
 
 
1.
$5.2 million increase in salaries and other employee expenses driven mostly by:
     
 
a.
$3.0 million increase in performance-based variable compensation for the Bank's proprietary asset management team;
     
 
b.
$0.7 million related to senior management’s stock compensation plan;
     
 
c.
$0.6 million associated with a one-time accrual of employee vacation provision; and a
     
 
d.
$0.9 million increase in performance-based variable compensation provision for business lines other than proprietary asset management.
     
 
2.
$1.3 million increase in maintenance and depreciation expenses related to the new technology platform;
     
 
3.
$0.9 million increase in professional services, mostly due to legal expenses and the renewal of the Bank’s EMTN Program; and a
     
 
4.
$0.6 million increase in expenses related to marketing and business travel.
 
8


Year-over-year, efficiency levels improved once again as revenue growth exceeded expense growth:
 
img9

4Q07 vs. 3Q07
 
The $1.9 million increase in operating expenses was mostly driven by higher stock option compensation for the Bank’s senior management, a one-time accrual employee vacation provision and higher legal expenses. These were partially offset by a one-time decrease in ‘other’ operating expenses.
 
PERFORMANCE AND CAPITAL RATIOS
 
The following table shows capital amounts and ratios at the dates indicated:  
 
(US$ million, except percentages)
             
   
31DEC06
 
30SEP07
 
31DEC07
 
Tier 1 Capital
 
$
584
 
$
614
 
$
612
 
Total Capital
 
$
614
 
$
650
 
$
649
 
Risk-weighted assets
 
$
2,388
 
$
2,850
 
$
2,927
 
Tier 1 Capital Ratio (*)
   
24.4
%
 
21.6
%
 
20.9
%
Total Capital Ratio (*)
   
25.7
%
 
22.8
%
 
22.2
%
Leverage ratio (capital / total assets)
   
14.7
%
 
13.8
%
 
12.8
%
 
(*) Ratios are calculated based on U.S. Federal Reserve Board and Basel I capital adequacy guidelines.
 
The following table sets forth the annualized return on average assets, operating return on average stockholders’ equity, and return on average stockholders’ equity for the periods indicated: 
 
   
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
ROA (return on average assets)
   
1.7
%
 
1.7
%
 
2.2
%
 
1.4
%
 
1.3
%
Operating ROE (operating return on average stockholders’ equity)
   
6.8
%
 
11.7
%
 
9.7
%
 
9.9
%
 
10.1
%
ROE (return on average stockholders’ equity)
   
10.0
%
 
11.9
%
 
14.5
%
 
9.6
%
 
9.9
%

9


BUSINESS SEGMENT ANALYSIS
 
Commercial Division
 
The Commercial Division incorporates the Bank’s financial intermediation and fee generation activities. Operating income from the Commercial Division includes net interest income from loans, fee income, net of allocated operating expenses.
 
The following table shows the Operating income components of the Commercial Division for the periods indicated:

(US$ million)
 
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Commercial Division:
                               
Net interest income
 
$
50.9
 
$
64.1
 
$
14.3
 
$
16.2
 
$
17.7
 
Non-interest operating income
   
6.4
   
5.3
   
1.7
   
1.1
   
1.5
 
Operating revenues
 
$
57.4
 
$
69.5
 
$
16.0
 
$
17.4
 
$
19.2
 
Operating expenses
   
(23.7
)
 
(27.2
)
 
(7.4
)
 
(6.6
)
 
(7.7
)
Operating income
 
$
33.7
 
$
42.3
 
$
8.6
 
$
10.8
 
$
11.4
 
 
Yearly Variation
 
For 2007, the Commercial Division’s operating income amounted to $42.3 million, an increase of 25% compared to 2006, reflecting a 26% increase in net interest income, the result of a 24% increase in the average loan portfolio and higher weighted average lending spreads over Libor. Excluding the impact of 2006 net revenues from the impaired portfolio, operating income increased 35%. The Bank no longer carries any impaired credits on its books, and thus, did not recognized revenues from such assets in 2007.
 
img10
10

 
Quarterly Variation
 
Operating income from the Commercial Division for the fourth quarter 2007 reached $11.4 million, a 6% increase compared to the third quarter 2007. This increase was primarily attributed to a 9% increase in net interest income, driven by a 6% increase in the average loan portfolio and by higher weighted average lending spreads over Libor. Compared to the fourth quarter 2006, operating income from the Commercial Division increased 33%, primarily due to a 24% increase in net interest income, driven by higher average loan balances and lending spreads.
 
As of December 31, 2007, the Bank’s commercial portfolio totaled $4.3 billion, up 6% from September 30, 2007, and up 18% from December 31, 2006.

The Bank’s average commercial portfolio for the fourth quarter 2007 was $4.2 billion, 6% higher than the prior quarter. The following graph shows the average commercial portfolio for the periods indicated:
 
img11

See Exhibit X for information related to the Bank’s commercial portfolio distribution by country.

During the fourth quarter 2007, the Bank disbursed $1.9 billion. Please refer to Exhibit XII for the Bank’s distribution of credit disbursements by country.

As of December 31, 2007, the corporate market segment represented 49% of the Bank’s total commercial portfolio, compared to 50% as of September 30, 2007, and 45% a year ago. On December 31, 2007, 68% of the corporate portfolio represented trade financing.

The commercial portfolio as a whole continues to be short-term and trade-related in nature, with 69% maturing within one year, and 63% representing trade financing operations.
 
11

 
Treasury Division
 
The Treasury Division incorporates the Bank’s investment securities activity. Operating income from the Treasury Division is presented net of allocated operating expenses, and includes net interest income on investment securities, gains and losses on derivatives and hedging activities, as well as the sale of securities and foreign currency exchange transactions.
 
The following table shows the Operating income components of the Treasury Division for the periods indicated:
 
(US$ million)
 
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Treasury Division:
                               
Net interest income
 
$
6.9
 
$
6.2
 
$
1.6
 
$
1.7
 
$
2.1
 
Non-interest operating income
   
2.1
   
8.5
   
0.0
   
0.0
   
2.2
 
Operating revenues
 
$
9.0
 
$
14.7
 
$
1.7
 
$
1.7
 
$
4.3
 
Operating expenses
   
(3.4
)
 
(4.3
)
 
(1.1
)
 
(0.9
)
 
(1.5
)
Operating income
 
$
5.6
 
$
10.3
 
$
0.6
 
$
0.8
 
$
2.8
 

Yearly Variation
 
For 2007, the Treasury Division’s operating income amounted to $10.3 million, compared to $5.6 million in 2006, driven by higher gains in the available for sale portfolio.
 
Quarterly Variation
 
During the fourth quarter 2007, operating income from the Treasury Division amounted to $2.8 million, compared to $0.8 million in the third quarter 2007. The $2.1 million quarterly increase was mostly due to higher gains on the sale of securities available for sale.

Compared to the fourth quarter 2006, operating income from the Treasury Division increased by $2.3 million, mostly due to increased net interest income and higher gains on the sale of securities available for sale.

12

 
Bladex Asset Management
 
Bladex Asset Management (“BAM”) incorporates the Bank’s proprietary asset management activities. Operating income from BAM is presented net of allocated operating expenses, and includes net interest income on trading securities, as well as trading gains and losses.
 
(US$ million)
 
2006
 
2007
 
4Q06
 
3Q07
 
4Q07
 
Bladex Asset Management:
                               
Net interest income
   
1.0
   
0.2
   
0.8
   
(0.3
)
 
(0.7
)
Non-interest operating income
   
0.9
   
23.9
   
4.8
   
5.1
   
3.5
 
Operating revenues
 
$
1.9
 
$
24.1
 
$
5.7
 
$
4.8
 
$
2.8
 
Operating expenses
   
(1.9
)
 
(5.5
)
 
(0.8
)
 
(1.1
)
 
(1.3
)
Operating income
 
$
0.0
 
$
18.6
 
$
4.9
 
$
3.7
 
$
1.5
 
 
Yearly Variation
 
For 2007, BAM’s operating income amounted to $18.6 million, reflecting higher gains from asset management activities.  
 
Quarterly Variation
 
During the fourth quarter 2007, operating income from BAM amounted to $1.5 million, compared to $3.7 million in the third quarter 2007. The $2.2 million quarterly decrease in operating income was mostly due to lower trading gains on the Bank’s proprietary asset management activity.
 
Compared to the fourth quarter 2006, operating income from BAM decreased $3.4 million (69%), mostly due to decreased net interest income, lower trading gains, and increased operating expenses mostly related to performance based variable compensation for the asset management team.
 
Securities Portfolio, Deposits and Liquidity
 
The securities portfolio (including investment securities available for sale, securities held to maturity and trading securities) totaled $521 million, a 2% increase from September 30, 2007. As of December 31, 2007, the securities portfolio represented 11% of the Bank’s total credit portfolio, and consisted of Latin American securities (please refer to Exhibit XI for a per country distribution of the investment securities in the available for sale portfolio).
 
The available for sale portfolio includes all interest rate swaps converting the underlying instruments to floating rate in order to avoid interest rate risk. Furthermore, the available for sale portfolio is mark-to-market and the impact is reflected on the capital through the other comprehensive income account.
 
13

 
As of December 31, 2007, deposit balances were $1.5 billion, a $14 million (1%) increase over the previous quarter, and $406 million (38%) higher than on December 31, 2006.
 
In response to market conditions, the Bank strengthened its liquidity during the quarter, as reflected in the liquidity ratio (liquid assets / total assets), which increased from 7.3% to 8.4% (the Bank excludes cash balances at its proprietary asset management activity from its liquidity management and ratios).
 
OTHER EVENTS
 
·
Fourth Quarter - Common Dividend Payment: On January 17, 2008, the Bank paid a regular quarterly dividend of US$0.22 per share pertaining to the fourth quarter to stockholders of record as of January 7, 2008.
 
·
Bladex’s ratings upgraded to “Baa2” by Moody’s: On December 21, 2007, Moody’s Investor Services upgraded the Company’s long term foreign currency deposit, debt and issuer ratings to Baa2 from Baa3 and raised the Bank’s financial strength ratings to C- from D+.
 
·
New Chief Financial Officer Appointment: Effective February 22, 2008, the Bank appointed Mr. Jaime Celorio as its Chief Financial Officer, replacing Mr. Carlos Yap, who is retiring from the company after 27 years of distinguished service. Mr. Celorio will be responsible for the Bank’s financial management, as well as for the interaction with rating agencies, the sell-side community, and investors. Mr. Celorio was previously Chief Financial Officer and Chief Administrative Officer for Merrill Lynch Mexico S.A. de C.V.
 
Contact Information:
 
Mr. Jaime Celorio
Chief Financial Officer
Tel: (507) 210-8630
Fax: (507) 269-6333
e-mail address: jcelorio@bladex.com 
 
Note: Various numbers and percentages set forth in this press release have been rounded and, accordingly, may not total exactly.
 
14

 
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, the improvement in the financial and performance strength of the Bank and the progress the Bank is making. These forward-looking statements reflect the expectations of the Bank’s management and are based on currently available data; however, actual experience with respect to these factors is subject to future events and uncertainties, which could materially impact the Bank’s expectations. Among the factors that can cause actual performance and results to differ materially are as follows: the anticipated growth of the Bank’s credit portfolio; the continuation of the Bank’s preferred creditor status; the impact of increasing interest rates and of improving macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals. 
 
About Bladex
 
Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through December 31, 2007, Bladex had disbursed accumulated credits of over $152 billion.
 
Conference Call Information
 
There will be a conference call to discuss the Bank’s quarterly results on Wednesday, February 20, 2008, at 11:00 a.m., New York City time (Eastern Time). For those interested in participating, please dial (888) 335-5539 in the United States or, if outside the United States, (973) 582-2857. Participants should use conference ID# 33441861, and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at www.bladex.com.
 
15

 
The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through February 27, 2008. Please dial (800) 642-1687 or (706) 645-9291, and follow the instructions. The Conference ID# for the replayed call is 33441861.
 
For more information, please access www.bladex.com or contact:

Mr. Carlos Yap
Chief Financial Officer
Bladex
Calle 50 y Aquilino de la Guardia
P.O. Box: 0819-08730
Panama City, Panama
Tel: (507) 210-8563
Fax: (507) 269-6333
e-mail address: cyap@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

16

 
EXHIBIT I
 
CONSOLIDATED BALANCE SHEETS
 
   
AT THE END OF,
                 
   
(A)
 
(B)
 
(C)
 
(C) - (B)
     
(C) - (A)
     
   
Dec 31, 2006
 
Sep 30, 2007
 
Dec 31, 2007
 
CHANGE
 
%
 
CHANGE
 
%
 
   
(In US$ million)
                 
                                
ASSETS
                      
 
 
 
 
Cash and due from banks
 
$
332
 
$
441
 
$
478
 
$
37
   
8
%
$
145
   
44
%
Trading assets
   
130
   
50
   
53
   
3
   
5
   
(77
)
 
(60
)
Securities available for sale
   
346
   
469
   
468
   
(0
)
 
(0
)
 
122
   
35
 
Securities held to maturity
   
125
   
0
   
0
   
0
   
0
   
(125
)
 
(100
)
Loans
   
2,981
   
3,495
   
3,732
   
237
   
7
   
751
   
25
 
Less:
                                           
Allowance for loan losses
   
(51
)
 
(73
)
 
(70
)
 
3
   
(4
)
 
(18
)
 
36
 
Unearned income and deferred loan fees
   
(4
)
 
(6
)
 
(6
)
 
(0
)
 
7
   
(2
)
 
35
 
Loans, net
   
2,925
   
3,416
   
3,656
   
240
   
7
   
731
   
25
 
 
                                     
Customers' liabilities under acceptances
   
46
   
4
   
9
   
5
   
136
   
(37
)
 
(80
)
Premises and equipment, net
   
11
   
10
   
10
   
0
   
3
   
(1
)
 
(9
)
Accrued interest receivable
   
55
   
53
   
63
   
10
   
19
   
8
   
14
 
Other assets
   
7
   
11
   
54
   
42
   
380
   
46
   
636
 
                                           
TOTAL ASSETS
 
$
3,978
 
$
4,454
 
$
4,791
 
$
337
   
8
%
$
812
   
20
%
                                           
LIABILITIES AND STOCKHOLDERS' EQUITY
                                         
Deposits:
                                         
Demand
 
$
132
 
$
93
 
$
111
 
$
18
   
20
%
 
($21
)
 
(16
)
Time
   
924
   
1,355
   
1,351
   
(4
)
 
(0
)
 
427
   
46
 
Total Deposits
   
1,056
   
1,448
   
1,462
   
14
   
1
   
406
   
38
 
                                             
Trading liabilities
   
55
   
11
   
91
   
80
   
747
   
36
   
66
 
Securities sold under repurchase agreements
   
438
   
364
   
283
   
(81
)
 
(22
)
 
(155
)
 
(35
)
Short-term borrowings
   
1,157
   
966
   
1,221
   
255
   
26
   
64
   
6
 
Long-term debt and borrowings
   
559
   
937
   
1,010
   
74
   
8
   
451
   
81
 
Acceptances outstanding
   
46
   
4
   
9
   
5
   
136
   
(37
)
 
(80
)
Accrued interest payable
   
28
   
38
   
39
   
1
   
3
   
11
   
38
 
Reserve for losses on off-balance sheet credit risk
   
27
   
10
   
14
   
3
   
31
   
(13
)
 
(50
)
Other liabilities
   
27
   
61
   
48
   
(13
)
 
(21
)
 
21
   
76
 
TOTAL LIABILITIES
 
$
3,394
 
$
3,839
 
$
4,178
 
$
339
   
9
%
$
784
   
23
%
                                           
STOCKHOLDERS' EQUITY
                                         
Common stock, no par value, assigned value of US$6.67
   
280
   
280
   
280
                         
Additional paid-in capital in exces of assigned value
   
135
   
135
   
135
                         
Capital reserves
   
95
   
95
   
95
                         
Retained earnings
   
205
   
238
   
245
                         
Accumulated other comprehensive income (loss)
   
3
   
(0
)
 
(10
)
                       
Treasury stock
   
(135
)
 
(134
)
 
(134
)
                       
                                           
TOTAL STOCKHOLDERS' EQUITY
 
$
584
 
$
614
 
$
612
   
($2
)
 
(0
)%
$
28
   
5
%
                                           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
3,978
 
$
4,454
 
$
4,791
 
$
337
   
8
%
$
812
   
20
%
 

 
EXHIBIT II
 
CONSOLIDATED STATEMENTS OF INCOME
 
   
FOR THE THREE
MONTHS ENDED
                 
   
(A)
 
(B)
 
(C)
 
(C) - (B)
     
(C) - (A)
     
   
Dec 31, 2006
 
Sep 30, 2007
 
Dec 31, 2007
 
CHANGE
 
%
 
CHANGE
 
%
 
   
(In US$ thousand, except per share data)
                 
INCOME STATEMENT DATA:
                              
Interest income
 
$
63,016
 
$
68,641
 
$
71,992
 
$
3,350
   
5
%
$
8,976
   
14
%
Interest expense
   
(46,278
)
 
(51,020
)
 
(52,864
)
 
(1,845
)
 
4
   
(6,586
)
 
14
 
NET INTEREST INCOME
   
16,738
   
17,622
   
19,127
   
1,506
   
9
   
2,390
   
14
 
Reversal (provision) for loan losses
   
(1,526
)
 
(3,384
)
 
2,980
   
6,364
   
(188
)
 
4,506
   
(295
)
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES
   
15,212
   
14,237
   
22,107
   
7,870
   
55
   
6,895
   
45
 
                                             
OTHER INCOME (EXPENSE):
                                       
Reversal (provision) for losses on off-balance sheet credit risk
   
2,949
   
2,964
   
(3,235
)
 
(6,198
)
 
(209
)
 
(6,183
)
 
(210
)
Fees and commissions, net
   
1,722
   
1,173
   
1,582
   
409
   
35
   
(140
)
 
(8
)
Derivatives and hedging activities
   
115
   
(294
)
 
(212
)
 
82
   
(28
)
 
(327
)
 
(284
)
Recoveries on assets
   
5,551
   
0
   
0
   
0
   
nm
 (*)
 
(5,551
)
 
(100
)
Trading gains
   
4,849
   
5,104
   
3,475
   
(1,628
)
 
(32
)
 
(1,373
)
 
28
 
Net gains on sale of securities available for sale
   
0
   
288
   
2,226
   
1,937
   
672
   
2,226
   
nm
  (*)
Gain (loss) on foreign currency exchange
   
(67
)
 
(9
)
 
181
   
190
   
(2,006
)
 
248
   
369
 
Other income (expense), net
   
0
   
17
   
(64
)
 
(81
)
 
(481
)
 
(64
)
 
nm
  (*)
NET OTHER INCOME (EXPENSE)
   
15,118
   
9,242
   
3,954
   
(5,289
)
 
(57
)
 
(11,165
)
 
(74
)
                                             
OPERATING EXPENSES:
                                           
Salaries and other employee expenses
   
(5,806
)
 
(4,865
)
 
(6,687
)
 
(1,822
)
 
37
   
(881
)
 
15
 
Depreciation and amortization of premises and equipment
   
(547
)
 
(621
)
 
(668
)
 
(48
)
 
8
   
(122
)
 
22
 
Professional services
   
(699
)
 
(593
)
 
(1,006
)
 
(413
)
 
70
   
(307
)
 
44
 
Maintenance and repairs
   
(175
)
 
(249
)
 
(370
)
 
(121
)
 
49
   
(195
)
 
111
 
Other operating expenses
   
(2,034
)
 
(2,326
)
 
(1,796
)
 
530
   
(23
)
 
238
   
(12
)
TOTAL OPERATING EXPENSES
   
(9,261
)
 
(8,652
)
 
(10,527
)
 
(1,875
)
 
22
   
(1,266
)
 
14
 
                                             
NET INCOME
 
$
21,070
 
$
14,827
 
$
15,534
 
$
707
   
5
%
 
($5,536
)
 
(26
)%
                                             
PER COMMON SHARE DATA:
                                           
Net income per share
   
0.58
   
0.41
   
0.43
                         
Diluted earnings per share
   
0.57
   
0.41
   
0.43
                         
                                             
Average basic shares
   
36,329
   
36,363
   
36,370
                         
Average diluted shares
   
36,853
   
36,411
   
36,367
                         
                                             
PERFORMANCE RATIOS:
                                           
Return on average assets
   
2.2
%
 
1.4
%
 
1.3
%
                       
Return on average stockholders' equity
   
14.5
%
 
9.6
%
 
9.9
%
                       
Net interest margin
   
1.76
%
 
1.65
%
 
1.69
%
                       
Net interest spread
   
0.76
%
 
0.73
%
 
0.84
%
                       
Operating expenses to total average assets
   
0.96
%
 
0.80
%
 
0.91
%
                       
  

(*) "n.m." means not meaningful.
 

 
EXHIBIT III
 
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(Consolidated Statements of Income, Balance Sheets, and Selected Financial Ratios)

   
FOR THE YEAR ENDED DECEMBER 31,
 
 
 
2006
 
2007
 
(In US$ thousand, except per share amounts & ratios)
 
   
 
   
 
INCOME STATEMENT DATA:
 
   
 
   
 
Net interest income
 
$
58,837
 
$
70,571
 
Fees and commissions, net
   
6,393
   
5,555
 
Reversal of provision for loan and off-balance sheet credit losses, net
   
13,045
   
1,475
 
Derivatives and hedging activities
   
(225
)
 
(989
)
Recoveries (impairment), on assets
   
5,551
   
(500
)
Trading gains
   
879
   
23,865
 
Net gains on sale of securities available for sale
   
2,568
   
9,119
 
Gain (loss) on foreign currency exchange
   
(253
)
 
115
 
Other income (expense), net
   
36
   
(7
)
Operating expenses
   
(28,929
)
 
(37,027
)
NET INCOME
 
$
57,902
 
$
72,177
 
BALANCE SHEET DATA (In US$ millions):
         
Investment securities and trading assets
   
601
   
521
 
Loans, net
   
2,925
   
3,656
 
Total assets
   
3,978
   
4,791
 
Deposits
   
1,056
   
1,462
 
Trading liabilities
   
55
   
91
 
Securities sold under repurchase agreements
   
438
   
283
 
Short-term borrowings
   
1,157
   
1,221
 
Long-term debt and borrowings
   
559
   
1,010
 
Total liabilities
   
3,394
   
4,178
 
Stockholders' equity
   
584
   
612
 
PER COMMON SHARE DATA:
         
Net income per share
   
1.56
   
1.99
 
Diluted earnings per share
   
1.54
   
1.98
 
Book value (period average)
   
15.68
   
16.67
 
Book value (period end)
   
16.07
   
16.83
 
(In US$ thousand):
         
Average basic shares
   
37,065
   
36,349
 
Average diluted shares
   
37,572
   
36,414
 
Basic shares period end
   
36,329
   
36,370
 
SELECTED FINANCIAL RATIOS:
         
PERFORMANCE RATIOS:
         
Return on average assets
   
1.7
%
 
1.7
%
Return on average stockholders' equity
   
10.0
%
 
11.9
%
Net interest margin
   
1.76
%
 
1.71
%
Net interest spread
   
0.70
%
 
0.80
%
Operating expenses to total average assets
   
0.85
%
 
0.88
%
 
         
ASSET QUALITY RATIOS:
         
Non-accruing loans to total loans, net of discounts (1)
   
0.0
%
 
0.0
%
Charge offs net of recoveries to total loan portfolio (1)
   
0.0
%
 
-0.2
%
Allowance for loan losses to total loan portfolio (1) 
   
1.72
%
 
1.87
%
Allowance for losses on off-balance sheet credit risk to total contingencies
   
4.18
%
 
2.48
%
 
         
CAPITAL RATIOS:
         
Stockholders' equity to total assets
   
14.7
%
 
12.8
%
Tier 1 capital to risk-weighted assets
   
24.4
%
 
20.9
%
Total capital to risk-weighted assets
   
25.7
%
 
22.2
%
  

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

 
EXHIBIT IV
 
CONSOLIDATED STATEMENTS OF INCOME
 
 
 
FOR THE YEAR
 
   
 
       
 
 
 
ENDED DECEMBER 31,  
 
   
 
       
 
 
 
2006
 
2007
 
CHANGE
 
%
 
(In US$ thousand)
 
     
 
   
 
   
 
       
 
INCOME STATEMENT DATA:
 
     
 
   
 
    
 
       
 
Interest income
 
$
203,350
 
$
264,869
 
$
61,519
   
30
%
Interest expense
   
(144,513
)
 
(194,299
)
 
(49,786
)
 
34
 
NET INTEREST INCOME
   
58,837
   
70,571
   
11,734
   
20
 
Provision for loan losses
   
(11,846
)
 
(11,994
)
 
(148
)
 
1
 
 
                 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
   
46,991
   
58,577
   
11,586
   
25
 
 
                 
OTHER INCOME (EXPENSE):
                 
Reversal for losses on off-balance sheet credit risk
   
24,891
   
13,468
   
(11,423
)
 
(46
)
Fees and commissions, net
   
6,393
   
5,555
   
(838
)
 
(13
)
Derivatives and hedging activities
   
(225
)
 
(989
)
 
(764
)
 
340
 
Recoveries (impairment), on assets
   
5,551
   
(500
)
 
(6,051
)
 
(109
)
Trading gains
   
879
   
23,865
   
22,986
   
2,615
 
Net gains on sale of securities available for sale
   
2,568
   
9,119
   
6,551
   
255
 
Gain (loss) on foreign currency exchange
   
(253
)
 
115
   
369
   
(146
)
Other income (expense), net
   
36
   
(7
)
 
(42
)
 
(118
)
NET OTHER INCOME (EXPENSE)
   
39,840
   
50,628
   
10,788
   
27
 
 
                 
OPERATING EXPENSES:
                 
Salaries and other employee expenses
   
(16,826
)
 
(22,049
)
 
(5,223
)
 
31
 
Depreciation and amortization of premises and equipment
   
(1,406
)
 
(2,556
)
 
(1,149
)
 
82
 
Professional services
   
(2,671
)
 
(3,562
)
 
(891
)
 
33
 
Maintenance and repairs
   
(1,000
)
 
(1,188
)
 
(189
)
 
19
 
Other operating expenses
   
(7,026
)
 
(7,673
)
 
(646
)
 
9
 
TOTAL OPERATING EXPENSES
   
(28,929
)
 
(37,027
)
 
(8,098
)
 
28
 
 
                 
NET INCOME
 
$
57,902
 
$
72,177
 
$
14,276
   
25
%
 

 
EXHIBIT V
 
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES
  
   
FOR THE THREE MONTHS ENDED,
 
 
 
 December 31, 2006
 
September 30, 2007
 
 
 
December 31, 2007
 
 
 
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
 
$
151
 
$
1.9
   
5.01
%
$
372
 
$
5.0
   
5.24
%
   
$
416
 
$
5.0
   
4.67
%
Loans, net of unearned income & deferred loan fees
   
3,026
   
49.2
   
6.37
   
3,433
   
57.4
   
6.54
       
3,638
   
60.2
   
6.47
 
Impaired loans
   
1
   
0.0
   
8.05
   
0
   
0.0
   
n.m.
(*)
 
 
0
   
0.0
   
n.m.
(*)
Trading assets
   
128
   
4.9
   
15.10
   
68
   
0.7
   
4.15
       
35
   
0.5
   
5.24
 
Investment securities
   
463
   
6.9
   
5.84
   
353
   
5.6
   
6.18
       
406
   
6.4
   
6.17
 
                                                             
TOTAL INTEREST EARNING ASSETS
 
$
3,768
 
$
63.0
   
6.54
%
$
4,226
 
$
68.6
   
6.36
%
   
$
4,494
 
$
72.0
   
6.27
%
 
                                               
Non interest earning assets
   
93
               
83
                   
103
             
Allowance for loan losses
   
(50
)
             
(69
)
                 
(73
)
           
Other assets
   
27
               
64
                   
54
             
                                                             
TOTAL ASSETS
 
$
3,839
           
$
4,304
               
$
4,578
           
                                                             
INTEREST BEARING LIABILITITES
                                                     
                                                 
Deposits
 
$
1,092
 
$
14.9
   
5.33
%
$
1,416
 
$
19.4
   
5.36
%
   
$
1,368
 
$
17.6
   
5.05
%
Trading liabilities
   
72
   
3.6
   
19.35
   
44
   
0.9
   
7.99
       
47
   
1.0
   
7.86
 
Securities sold under repurchase agreement and short-term borrowings
   
1,465
   
20.4
   
5.44
   
1,211
   
17.0
   
5.50
       
1,391
   
19.0
   
5.34
 
Long-term debt and borrowings
   
503
   
7.5
   
5.82
   
879
   
13.7
   
6.10
       
1,002
   
15.3
   
5.97
 
                                                             
TOTAL INTEREST BEARING LIABILITIES
 
$
3,132
 
$
46.3
   
5.78
%
$
3,550
 
$
51.0
   
5.62
%
 
$
3,808
 
$
52.9
   
5.43
%
                                                 
Non interest bearing liabilities and other liabilities
 
$
132
             
$
142
                 
$
150
             
                                                             
TOTAL LIABILITIES
   
3,264
           
3,692
               
3,958
             
                                                             
STOCKHOLDERS' EQUITY
   
575
               
612
                   
620
             
                                                             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
3,839
           
$
4,304
               
$
4,578
             
                                                       
NET INTEREST SPREAD
             
0.76
%
           
0.73
%
                 
0.84
%
NET INTEREST INCOME AND NET
                                                     
INTEREST MARGIN
     
$
16.7
   
1.76
%
   
$
17.6
   
1.65
%
         
$
19.1
   
1.69
%
 

(*)
"n.m." means not meaningful
 

 
EXHIBIT VI
 
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES
 
   
FOR THE YEAR ENDED,
 
   
December 31, 2006
 
December 31, 2007
 
   
AVERAGE
     
AVG.
 
AVERAGE
     
AVG.
 
   
BALANCE
 
INTEREST
 
RATE
 
BALANCE
 
INTEREST
 
RATE
 
   
(In US$ million)
 
INTEREST EARNING ASSETS
     
 
 
 
             
Interest-bearing deposits with banks
 
$
180
 
$
9.0
   
4.90
%
$
327
 
$
17.0
   
5.12
%
Loans, net of unearned income & deferred loan fees
   
2,697
   
163.1
   
5.96
   
3,366
   
221.6
   
6.49
 
Impaired loans
   
18
   
2.7
   
14.77
   
0
   
0.0
   
n.m.
(*)
Trading assets
   
50
   
5.8
   
11.46
   
84
   
5.3
   
6.27
 
Investment securities
   
390
   
22.8
   
5.76
   
345
   
20.9
   
5.99
 
                                                   
TOTAL INTEREST EARNING ASSETS
 
$
3,336
 
$
203.3
   
6.01
%
$
4,122
 
$
264.9
   
6.34
%
 
                             
Non interest earning assets
   
90
               
90
             
Allowance for loan losses
   
(44
)
             
(62
)
           
Other assets
   
21
               
59
             
TOTAL ASSETS
 
$
3,403
           
$
4,209
           
 
                                 
INTEREST BEARING LIABILITITES
                                 
                                 
Deposits
 
$
1,106
 
$
56.6
   
5.05
%
$
1,321
 
$
70.4
   
5.26
%
Trading liabilities
   
35
   
4.6
   
13.17
   
59
   
4.2
   
6.98
 
Securities sold under repurchase agreement and
                                   
short-term borrowings
   
1,044
   
55.0
   
5.20
   
1,272
   
70.3
   
5.45
 
Long-term debt and borrowings
   
500
   
28.3
   
5.57
   
809
   
49.4
   
6.02
 
TOTAL INTEREST BEARING LIABILITIES
 
$
2,684
 
$
144.5
   
5.31
%
$
3,462
 
$
194.3
   
5.54
%
                               
Non interest bearing liabilities and other liabilities
 
$
137
             
$
141
             
                                       
TOTAL LIABILITIES
   
2,821
           
3,603
             
                                       
STOCKHOLDERS' EQUITY
   
581
               
606
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
3,403
           
$
4,209
             
                                   
NET INTEREST SPREAD
             
0.70
%
             
0.80
%
NET INTEREST INCOME AND NET
                                 
INTEREST MARGIN
     
$
58.8
   
1.76
%
     
$
70.6
   
1.71
%
 

(*)
"n.m." means not meaningful.
 

 
EXHIBIT VII
 
CONSOLIDATED STATEMENT OF INCOME
(In US$ thousand, except ratios)
 
 
 
YEAR
 
FOR THE THREE MONTHS ENDED
 
YEAR
 
 
 
ENDED
 
 
 
 
 
 
 
 
 
 
 
ENDED
 
 
 
DEC 31/06
 
DEC 31/06
 
MAR 31/07
 
JUN 30/07
 
SEP 30/07
 
DEC 31/07
 
DEC 31/07
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INCOME STATEMENT DATA:
     
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
203,350
 
$
63,016
 
$
60,993
 
$
63,243
 
$
68,641
 
$
71,992
 
$
264,869
 
Interest expense
   
(144,513
)
 
(46,278
)
 
(43,917
)
 
(46,497
)
 
(51,020
)
 
(52,864
)
 
(194,299
)
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
NET INTEREST INCOME
   
58,837
   
16,738
   
17,076
   
16,745
   
17,622
   
19,127
   
70,571
 
 
                             
Reversal (provision) for loan losses
   
(11,846
)
 
(1,526
)
 
(5,354
)
 
(6,235
)
 
(3,384
)
 
2,980
   
(11,994
)
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
NET INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES
   
46,991
   
15,212
   
11,722
   
10,510
   
14,237
   
22,107
   
58,577
 
 
                             
OTHER INCOME (EXPENSE):
   
  
   
  
   
  
   
 
   
 
   
 
   
 
 
Reversal (provision) for losses on off-balance sheet credit risk
   
24,891
   
2,949
   
6,158
   
7,581
   
2,964
   
(3,235
)
 
13,468
 
Fees and commissions, net
   
6,393
   
1,722
   
1,275
   
1,525
   
1,173
   
1,582
   
5,555
 
Derivatives and hedging activities
   
(225
)
 
115
   
(485
)
 
1
   
(294
)
 
(212
)
 
(989
)
Recoveries (impairment) on assets
   
5,551
   
5,551
   
0
   
(500
)
 
0
   
0
   
(500
)
Trading gains
   
879
   
4,849
   
1,008
   
14,278
   
5,104
   
3,475
   
23,865
 
Net gains on sale of securities available for sale
   
2,568
   
0
   
2,699
   
3,906
   
288
   
2,226
   
9,119
 
Gain (loss) on foreign currency exchange
   
(253
)
 
(67
)
 
1
   
(56
)
 
(9
)
 
181
   
115
 
Other income (expense), net
   
36
   
0
   
41
   
0
   
17
   
(64
)
 
(7
)
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
NET OTHER INCOME (EXPENSE)
   
39,840
   
15,118
   
10,697
   
26,734
   
9,242
   
3,954
   
50,628
 
 
                             
TOTAL OPERATING EXPENSES
   
(28,929
)
 
(9,261
)
 
(7,586
)
 
(10,262
)
 
(8,652
)
 
(10,527
)
 
(37,027
)
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
NET INCOME
 
$
57,902
 
$
21,070
 
$
14,834
 
$
26,983
 
$
14,827
 
$
15,534
 
$
72,177
 
SELECTED FINANCIAL DATA
                             
 
                               
PER COMMON SHARE DATA
                               
Net income per share
 
$
1.56
 
$
0.58
 
$
0.41
 
$
0.74
 
$
0.41
 
$
0.43
 
$
1.99
 
 
                               
PERFORMANCE RATIOS
                               
Return on average assets
   
1.7
%
 
2.2
%
 
1.5
%
 
2.7
%
 
1.4
%
 
1.3
%
 
1.7
%
Return on average stockholders' equity
   
10.0
%
 
14.5
%
 
10.2
%
 
18.0
%
 
9.6
%
 
9.9
%
 
11.9
%
Net interest margin
   
1.76
%
 
1.76
%
 
1.82
%
 
1.70
%
 
1.65
%
 
1.69
%
 
1.71
%
Net interest spread
   
0.70
%
 
0.76
%
 
0.88
%
 
0.76
%
 
0.73
%
 
0.84
%
 
0.80
%
Operating expenses to average assets
   
0.85
%
 
0.96
%
 
0.79
%
 
1.01
%
 
0.80
%
 
0.91
%
 
0.88
%
 

 
EXHIBIT VIII
 
BUSINESS SEGMENT ANALYSIS
(In US$ million)
 
 
 
FOR THE YEAR ENDED
 
FOR THE THREE MONTHS ENDED
 
 
 
DEC 31/06
 
DEC 31/07
 
DEC 31/06
 
SEP 30/07
 
DEC 31/07
 
   
 
 
 
     
 
     
COMMERCIAL DIVISION:
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
     
 
     
Net interest income
 
$
50.9
 
$
64.1
 
$
14.3
 
$
16.2
 
$
17.7
 
Non-interest operating income (1)
   
6.4
   
5.3
   
1.7
   
1.1
   
1.5
 
Operating expenses (2)
   
(23.7
)
 
(27.2
)
 
(7.4
)
 
(6.6
)
 
(7.7
)
Operating income (3)
   
33.7
   
42.3
   
8.6
   
10.8
   
11.4
 
Reversal (provision) for loan and off-balance sheet credit losses, net
   
13.0
   
1.5
   
1.4
   
(0.4
)
 
(0.3
)
Impairment on assets
   
0.0
   
(0.5
)
 
0.0
   
0.0
   
0.0
 
NET INCOME
 
$
46.7
 
$
43.2
 
$
10.0
 
$
10.3
 
$
11.2
 
                         
Commercial average interest-earning assets (4)
   
2,715
   
3,366
   
3,027
   
3,433
   
3,638
 
 
                     
TREASURY DIVISION:
                       
                         
Net interest income
   
6.9
   
6.2
   
1.6
   
1.7
   
2.1
 
Non-interest operating income (1)
   
2.1
   
8.5
   
0.0
   
0.0
   
2.2
 
Operating expenses (2)
   
(3.4
)
 
(4.3
)
 
(1.1
)
 
(0.9
)
 
(1.5
)
Operating income (3)
   
5.6
   
10.3
   
0.6
   
0.8
   
2.8
 
Recoveries on assets, net of impairments
   
5.6
   
0.0
   
5.6
   
0.0
   
0.0
 
NET INCOME
 
$
11.2
 
$
10.3
 
$
6.1
 
$
0.8
 
$
2.8
 
Treasury average interest-earning assets (5)
   
516
   
586
   
566
   
623
   
686
 
 
                     
BLADEX ASSET MANAGEMENT:
                       
                         
Net interest income
   
1.0
   
0.2
   
0.8
   
(0.3
)
 
(0.7
)
Non-interest operating income (1)
   
0.9
   
23.9
   
4.8
   
5.1
   
3.5
 
Operating expenses (2)
   
(1.9
)
 
(5.5
)
 
(0.8
)
 
(1.1
)
 
(1.3
)
Operating income (3)
   
0.0
   
18.6
   
4.9
   
3.7
   
1.5
 
NET INCOME
 
$
0.0
 
$
18.6
 
$
4.9
 
$
3.7
 
$
1.5
 
Bladex Asset Management average interest-earning assets (6)
   
105
   
170
   
175
   
170
   
170
 
 
                     
CONSOLIDATED:
                     
                         
Net interest income
   
58.8
   
70.6
   
16.7
   
17.6
   
19.1
 
Non-interest operating income (1)
   
9.4
   
37.7
   
6.6
   
6.3
   
7.2
 
Operating expenses (2)
   
(28.9
)
 
(37.0
)
 
(9.3
)
 
(8.7
)
 
(10.5
)
Operating income (3)
   
39.3
   
71.2
   
14.1
   
15.2
   
15.8
 
Reversal (provision) for loan and off-balance sheet credit losses, net
   
13.0
   
1.5
   
1.4
   
(0.4
)
 
(0.3
)
Recoveries (impairment), on assets
   
5.6
   
(0.5
)
 
5.6
   
0.0
   
0.0
 
NET INCOME
 
$
57.9
 
$
72.2
 
$
21.1
 
$
14.8
 
$
15.5
 
                         
Consolidated average interest-earning assets
 
$
3,336
 
$
4,122
 
$
3,768
 
$
4,226
 
$
4,494
 
 
The bank has aligned its operations into two major business segments, based on the nature of clients, products and on credit risk standards.
Interest expenses are allocated based on average credits.
      
(1) Non-interest operating income consists of net other income (expense), excluding reversals of provisions for credit losses and impairment on assets.
 
(2) Operating expenses are calculated based on average credits.
 
(3) Operating income refers to net income excluding reversals of provisions for credit losses and impairment on assets.
 
(4) Includes loans, net of unearned income and deferred loan fees.
 
(5) Includes cash and due from banks, interest-bearing deposits with banks, securities available for sale and held to maturity.
 
(6) Includes cash and due from banks, interest-bearing deposits with banks, and trading securities of Bladex Asset Management.
 


EXHIBIT IX
 
CREDIT PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ million)
 
 
 
AT THE END OF,
 
   
 (A)
 
(B)
 
(C)
 
 
 
 
 
   
 31 DEC 06
 
30 SEP 07
 
 31 DEC 07
 
Change in Amount
 
COUNTRY
 
 Amount
 
% of Total Outstanding
 
 Amount
 
% of Total Outstanding
 
 Amount
 
% of Total Outstanding
 
(C) - (B)
 
(C) - (A)
 
                                       
ARGENTINA
 
$
216
   
5.4
 
$
346
   
7.7
 
$
287
   
6.0
   
($59
)
$
71
 
BOLIVIA
   
5
   
0.1
   
5
   
0.1
   
5
   
0.1
   
0
   
0
 
BRAZIL
   
1,663
   
41.5
   
1,817
   
40.4
   
1,728
   
36.4
   
(89
)
 
65
 
CHILE
   
207
   
5.2
   
113
   
2.5
   
53
   
1.1
   
(60
)
 
(154
)
COLOMBIA
   
329
   
8.2
   
457
   
10.1
   
530
   
11.2
   
74
   
201
 
COSTA RICA
   
97
   
2.4
   
91
   
2.0
   
148
   
3.1
   
58
   
52
 
DOMINICAN REPUBLIC
   
127
   
3.2
   
142
   
3.2
   
105
   
2.2
   
(37
)
 
(22
)
ECUADOR
   
160
   
4.0
   
78
   
1.7
   
142
   
3.0
   
64
   
(18
)
EL SALVADOR
   
88
   
2.2
   
43
   
1.0
   
59
   
1.2
   
16
   
(29
)
GUATEMALA
   
95
   
2.4
   
94
   
2.1
   
102
   
2.2
   
8
   
7
 
HONDURAS
   
37
   
0.9
   
46
   
1.0
   
49
   
1.0
   
3
   
13
 
JAMAICA
   
49
   
1.2
   
50
   
1.1
   
93
   
2.0
   
43
   
44
 
MEXICO
   
283
   
7.1
   
375
   
8.3
   
451
   
9.5
   
76
   
168
 
NICARAGUA
   
10
   
0.3
   
17
   
0.4
   
13
   
0.3
   
(4
)
 
2
 
PANAMA
   
220
   
5.5
   
226
   
5.0
   
222
   
4.7
   
(4
)
 
2
 
PERU
   
280
   
7.0
   
331
   
7.3
   
484
   
10.2
   
153
   
203
 
TRINIDAD & TOBAGO
   
104
   
2.6
   
72
   
1.6
   
93
   
1.9
   
21
   
(11
)
URUGUAY
   
0
   
0.0
   
3
   
0.1
   
0
   
0.0
   
(3
)
 
0
 
VENEZUELA
   
35
   
0.9
   
192
   
4.3
   
169
   
3.5
   
(23
)
 
134
 
OTHER
   
1
   
0.0
   
5
   
0.1
   
19
   
0.4
   
13
   
18
 
 
                                         
TOTAL CREDIT PORTFOLIO (1)
 
$
4,006
   
100
%
$
4,503
   
100
%
$
4,753
   
100
%
$
249
 
$
747
 
                                                   
UNEARNED INCOME AND COMMISSION (2)
   
(4
)
       
(6
)
       
(6
)
       
(0
)
 
(2
)
                                           
TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION
 
$
4,001
       
$
4,498
       
$
4,747
       
$
249
 
$
745
 
 
(1)
Includes book value of loans, fair value of selected investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks, credit default swaps 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,           < /fo nt>                      
 
     
 
(A)       
 
(B)        
 
(C)        
 
   
 
       
 
     
 
31DEC06       
 
30SEP07       
 
31DEC07       
 
Change in Amount
 
COUNTRY    
 
Amount  
 
% of Total Outstanding 
 
Amount  
 
% of Total Outstanding
 
Amount  
 
% of Total Outstanding 
 
(C) - (B)
 
(C) - (A)    
 
ARGENTINA    
 
$
207
   
5.7
 
$
327
   
8.1
 
$
268
   
6.3
   
($59
)
$
61
 
BOLIVIA  
   
5
   
0.1
   
5
   
0.1
   
5
   
0.1
   
0
   
0
 
BRAZIL   
   
1,531
   
42.1
   
1,593
   
39.5
   
1,600
   
37.4
   
7
   
69
 
CHILE
   
176
   
4.8
   
71
   
1.8
   
11
   
0.3
   
(60
)
 
(165
)
COLOMBIA    
   
231
   
6.4
   
362
   
9.0
   
402
   
9.4
   
39
   
171
 
COSTA RICA  
   
97
   
2.7
   
91
   
2.2
   
148
   
3.5
   
58
   
52
 
DOMINICAN REPUBLIC 
   
127
   
3.5
   
127
   
3.2
   
92
   
2.1
   
(36
)
 
(35
)
ECUADOR    
   
160
   
4.4
   
78
   
1.9
   
142
   
3.3
   
64
   
(18
)
EL SALVADOR
   
83
   
2.3
   
43
   
1.1
   
48
   
1.1
   
5
   
(35
)
GUATEMALA
   
95
   
2.6
   
94
   
2.3
   
102
   
2.4
   
8
   
7
 
HONDURAS 
   
37
   
1.0
   
46
   
1.1
   
49
   
1.1
   
3
   
13
 
JAMAICA 
   
49
   
1.3
   
50
   
1.2
   
93
   
2.2
   
43
   
44
 
MEXICO 
   
208
   
5.7
   
359
   
8.9
   
424
   
9.9
   
65
   
216
 
NICARAGUA    
   
10
   
0.3
   
17
   
0.4
   
13
   
0.3
   
(4
)
 
2
 
PANAMA 
   
201
   
5.5
   
167
   
4.1
   
150
   
3.5
   
(17
)
 
(50
)
PERU    
   
280
   
7.7
   
331
   
8.2
   
454
   
10.6
   
124
   
174
 
TRINIDAD & TOBAGO    
   
104
   
2.8
   
72
   
1.8
   
93
   
2.2
   
21
   
(11
)
URUGUAY    
   
0
   
0.0
   
3
   
0.1
   
0
   
0.0
   
(3
)
 
0
 
VENEZUELA    
   
35
   
1.0
   
192
   
4.8
   
169
   
3.9
   
(23
)
 
134
 
OTHER    
   
0
   
0.0
   
5
   
0.1
   
19
   
0.4
   
13
   
18
 
     
                                 
TOTAL COMMERCIAL PORTFOLIO (1)
 
$
3,634
   
100
%
$
4,032
   
100
%
$
4,281
   
100
%
$
250
 
$
647
 
     
                                 
UNEARNED INCOME AND COMMISSION (2)
   
(4
)
     
(6
)
     
(6
)
     
(0
)
 
(2
)
     
                                 
TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION
 
$
3,630
     
$
4,026
     
$
4,275
     
$
249
 
$
646
 
 

(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
 
AVAILABLE FOR SALE PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ million)

 
 
AT THE END OF,
 
 
 
(A)
 
(B)
 
(C)
 
 
 
 
 
COUNTRY
 
Dec. 31, 2006
 
Sep. 30, 2007
 
Dec. 31, 2007
 
(C) - (B)
 
(C) - (A)
 
ARGENTINA
   
9
 
$
20
   
20
   
($0
)
$
10
 
BRAZIL
   
133
   
225
   
129
   
(96
)
 
(4
)
CHILE
   
32
   
42
   
42
   
(0
)
 
11
 
COLOMBIA
   
98
   
92
   
126
   
34
   
28
 
DOMINICAN REPUBLIC
   
0
   
15
   
13
   
(2
)
 
13
 
EL SALVADOR
   
5
   
0
   
11
   
11
   
6
 
MEXICO
   
50
   
17
   
27
   
10
   
(23
)
PANAMA
   
20
   
59
   
72
   
13
   
52
 
PERU
   
0
   
0
   
29
   
29
   
29
 
 
   
     
   
   
   
   
   
        
   
    
 
TOTAL AVAILABLE FOR SALE PORTFOLIO
 
$
346
 
$
469
 
$
468
   
($0
)
$
122
 
 


EXHIBIT XII
 
CREDIT DISBURSEMENTS
DISTRIBUTION BY COUNTRY
(In US$ million)
 
   
 
QUARTERLY INFORMATION  
 
 
 
 
 
   
 
  (A)
 
(B)
 
(C)
 
 
 
 
 
  COUNTRY
 
  4QTR06
 
3QTR07
 
4QTR07
 
(C) - (B)
 
(C) - (A)
 
  ARGENTINA
 
$
106
 
$
151
 
$
115
   
($36
)
$
9
 
  BOLIVIA
   
0
   
5
   
0
   
(5
)
 
0
 
  BRAZIL
   
435
   
690
   
297
   
(393
)
 
(137
)
  CHILE
   
110
   
61
   
1
   
(60
)
 
(109
)
  COLOMBIA
   
182
   
117
   
129
   
11
   
(53
)
  COSTA RICA
   
51
   
82
   
116
   
33
   
64
 
  DOMINICAN REPUBLIC
   
186
   
177
   
81
   
(96
)
 
(105
)
  ECUADOR
   
132
   
50
   
104
   
55
   
(28
)
  EL SALVADOR
   
66
   
14
   
43
   
29
   
(23
)
  GUATEMALA
   
62
   
55
   
64
   
10
   
3
 
  HONDURAS
   
23
   
32
   
35
   
3
   
12
 
  JAMAICA
   
44
   
61
   
129
   
69
   
86
 
  MEXICO
   
141
   
92
   
187
   
95
   
46
 
  NICARAGUA
   
5
   
15
   
3
   
(12
)
 
(2
)
  PANAMA
   
32
   
85
   
51
   
(35
)
 
19
 
  PERU
   
241
   
272
   
373
   
101
   
132
 
  TRINIDAD & TOBAGO
   
123
   
31
   
84
   
53
   
(39
)
  URUGUAY
   
0
   
3
   
0
   
(3
)
 
0
 
  VENEZUELA
   
23
   
44
   
31
   
(13
)
 
9
 
  OTHER
   
0
   
104
   
18
   
(86
)
 
18
 
   
       
   
   
   
 
  TOTAL CREDIT DISBURSED
 
$
1,960
 
$
2,140
 
$
1,861
   
($279
)
 
($99
)
 
(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 swaps and credit commitments).