PANAMA CITY, April 20, 2018 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or "the Bank"), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the Region, today announced its results for the first quarter ("1Q18") ended March 31, 2018.
The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
(US$ million, except percentages and per share amounts) |
1Q18 |
4Q17 |
1Q17 |
Key Income Statement Highlights |
|||
Total income |
$30.7 |
$34.5 |
$38.3 |
Impairment loss from ECL on loans, loan commitments and financial guarantees contracts |
$2.0 |
$0.9 |
$4.1 |
Operating expenses (1) |
$14.3 |
$13.1 |
$11.2 |
Profit for the period |
$14.5 |
$20.6 |
$23.5 |
Profitability Ratios |
|||
Earnings per Share ("EPS") (2) |
$0.37 |
$0.52 |
$0.60 |
Return on Average Equity ("ROAE") (3) |
5.6% |
7.9% |
9.4% |
Return on Average Assets ("ROAA") |
0.91% |
1.31% |
1.39% |
Net Interest Margin ("NIM") (4) |
1.68% |
1.78% |
2.02% |
Net Interest Spread ("NIS") (5) |
1.26% |
1.38% |
1.71% |
Efficiency Ratio (6) |
47% |
38% |
29% |
Assets, Capital, Liquidity & Credit Quality |
|||
Commercial Portfolio (7) |
$5,731 |
$5,999 |
$6,141 |
Treasury Portfolio |
$85 |
$85 |
$91 |
Total assets |
$5,875 |
$6,268 |
$7,067 |
Total stockholders' equity |
$1,047 |
$1,043 |
$1,019 |
Market capitalization (8) |
$1,127 |
$1,061 |
$1,088 |
Tier 1 Basel III Capital Ratio (9) |
22.6% |
21.1% |
19.0% |
Total assets / Total stockholders' equity (times) |
5.6 |
6.0 |
6.9 |
Liquid Assets / Total Assets (10) |
9.3% |
9.9% |
17.3% |
NPL to Loan Portfolio (11) |
1.12% |
1.07% |
1.14% |
Total allowance for ECL to Commercial Portfolio (12) |
1.57% |
1.47% |
1.89% |
Total allowance for ECL to NPL (times) (12) |
1.5 |
1.5 |
1.8 |
1Q18 Highlights
CEO's Comments
Mr. N. Gabriel Tolchinsky, Bladex's Chief Executive Officer, said, "While our first quarter results were below our expectations, we were encouraged by several positive performance trends during the quarter: average loan balances were higher, contingencies/letters of credit performed well, credit quality remained strong, and we have a robust syndications pipeline. Operating expenses, excluding annual variable compensation expenses, declined from the fourth quarter as a result of our new streamlined operating model which is yielding results and will contribute to higher productivity levels.
"On the other hand, our performance this quarter was also affected by tightened net lending spreads pressured by high US dollar liquidity in the Region, the short duration of our trade finance portfolio, and higher exposures to financial institutions.
"We are focusing our lending activity on extending the average tenor of our short-term transactions, increasing the medium-term loan origination, and resuming asset growth by expanding the client base as well as maximizing the utilization of existing approved credit limits. We believe this effort will result in higher EOP balances and improved returns in the coming quarters. Combined with our ongoing focus on reducing costs and increasing productivity, we are cautiously optimistic about the second quarter and the full year," Mr. Tolchinsky concluded.
RECENT EVENTS
Notes:
- Numbers and percentages set forth in this earnings release have been rounded and accordingly may not total exactly.
- QoQ and YoY refer to quarter-on-quarter and year-on-year variations, respectively.
Footnotes:
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 profit and return on equity in future periods, including income derived from the Treasury Business Segment, 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 expected credit losses; the need for additional allowance for expected 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, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, initiated operations in 1979 to promote foreign trade finance and economic integration in the Region. The Bank, headquartered in Panama, operates throughout the Region with offices in Argentina, Brazil, Colombia, Mexico, Peru, and the United States of America, to support the expansion and servicing of its client base, which includes financial institutions and corporations.
Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include central banks, state-owned banks and entities representing 23 Latin American countries, as well as commercial banks and financial institutions, institutional and retail investors through its public listing.
CONFERENCE CALL INFORMATION
There will be a conference call to discuss the Bank's quarterly results on Friday, April 20, 2018 at 11:00 a.m. New York City time (Eastern Time). For those interested in participating, please dial (800) 311-9401 in the United States or, if outside the United States, (334) 323-7224. Participants should use conference ID# 8034, and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at http://www.bladex.com. The webcast presentation is available for viewing and downloads on http://www.bladex.com.
The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available for 60 days. Please dial (877) 919-4059 or (334) 323-0140, and follow the instructions. The replay passcode is: 14868216.
For more information, please access http://www.bladex.com or contact:
Mrs. Ana Graciela de Méndez
Chief Financial Officer
Tel: +507 210-8563
E-mail address: [email protected]
SOURCE Banco Latinoamericano de Comercio Exterior, S.A. (Bladex)
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