Le Lézard
Classified in: Business, Covid-19 virus
Subjects: ERN, CCA

Bladex Reports A Quarterly Profit Of $14.1 Million, Or $0.36 Per Share, With Solid Credit Collections And Ample Liquidity Levels


PANAMA CITY, July 28, 2020 /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 second quarter ("2Q20") and six months  ("6M20") ended June 30, 2020. 

(PRNewsfoto/Bladex)

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").

FINANCIAL SNAPSHOT

(US$ million, except percentages and per share amounts)

6M20

6M19

2Q20

1Q20

2Q19

Key Income Statement Highlights






Net Interest Income ("NII")

$47.5

$56.0

$21.7

$25.8

$27.9

Fees and commissions, net

$5.0

$7.5

$1.9

$3.1

$5.1

(Loss) gain on financial instruments, net

($4.3)

$0.8

($3.9)

($0.4)

$0.1

Total revenues

$48.7

$65.7

$19.9

$28.8

$33.6

Reversal (provision) for credit losses

$2.7

($1.8)

$2.6

$0.1

($0.8)

Operating expenses

($18.8)

($20.4)

($8.3)

($10.5)

($10.6)

Profit for the period

$32.4

$43.5

$14.1

$18.3

$22.3

Profitability Ratios






Earnings per Share ("EPS") (1)

$0.82

$1.10

$0.36

$0.46

$0.56

Return on Average Equity ("ROAE")(2)

6.4%

8.8%

5.5%

7.2%

9.0%

Return on Average Assets ("ROAA")

0.97%

1.37%

0.83%

1.12%

1.43%

Net Interest Margin ("NIM")(3)

1.43%

1.77%

1.28%

1.59%

1.81%

Net Interest Spread ("NIS")(4)

1.09%

1.19%

1.01%

1.17%

1.22%

Efficiency Ratio(5)

38.7%

31.1%

41.5%

36.7%

31.4%

Assets, Capital, Liquidity & Credit Quality






Credit Portfolio(6)

$5,011

$6,297

$5,011

$5,911

$6,297

Commercial Portfolio(7)

$4,915

$6,209

$4,915

$5,832

$6,209

Investment Portfolio

$96

$88

$96

$79

$88

Total assets

$6,627

$6,576

$6,627

$6,823

$6,576

Total equity

$1,022

$1,003

$1,022

$1,018

$1,003

Market capitalization(8)

$456

$825

$456

$408

$825

Tier 1 Basel III Capital Ratio (9)

24.8%

20.4%

24.8%

21.8%

20.4%

Total assets / Total equity (times)

6.5

6.6

6.5

6.7

6.6

Liquid Assets / Total Assets (10)

29.6%

12.8%

29.6%

19.0%

12.8%

Credit-impaired loans to
Loan Portfolio(11)

0.00%

1.16%

0.00%

1.16%

1.16%

Total allowance for losses to Credit Portfolio(12)

0.95%

1.69%

0.95%

1.73%

1.69%

Total allowance for losses to credit-impaired loans (times)(12)

-

1.6

-

1.7

1.6

BUSINESS HIGHLIGHTS 

CEO's Comments

Mr. Jorge Salas, Bladex's Chief Executive Officer said:

"Beyond Bladex's financial strength on its historically solid capital levels, our business model allows for a unique possibility to adapt to rapidly changing market conditions in a very agile manner. Catering exclusively to corporate clients, most of which are industry leaders with robust corporate governance practices and solid financials, significantly reduces the credit risk in our portfolio.

Moreover, the short-term nature of our portfolio ? having more than 70% maturing within the next year ? becomes an effective liquidity buffer, especially relevant in the current context; when combined with our regional foot-print, it allows the Bank to swiftly relocate the portfolio in resilient sectors and countries across Latin America.

Since the onset of the COVID-19 crisis, we have collected over $2 billion, representing 99% of total scheduled maturities, a clear demonstration of the credit quality of our portfolio. In turn, after re-assessing the risk of our portfolio by industry under the COVID-19 and contacting almost every single client, we tightened our underwriting standards and selectively disbursed around $1 billion in new loans, at shorter tenors and wider risk-adjusted credit spreads in defensive sectors and clients, with a focus in lower risk countries.  

On the funding side, our deposits increased on account of the continuous support of our central bank shareholders, we continued to have ample access to bilateral funding sources, and we successfully tapped the debt capital markets with an approximate $230 million USD equivalent issuance in local currency in Mexico. We have now a stronger funding structure, with increased tenors while maintaining ample diversification.

As a result, by design, we have been able to maintain a solid liquidity position throughout the quarter, in view of current uncertainty.

The high quality of our client base and the levers embedded in Bladex's business model have allowed us to successfully navigate this crisis up until now. Having said that, we are cognizant of the significant challenges that lie ahead, with a 2020 GDP estimate for the region close to negative 9.5%.  We believe that our 40-year experience in the Region, including several negative credit cycles, and our good understanding of the impacts and macroeconomic dynamics in every country, play to our advantage. We are committed to continue to support our clients, for whom we have been long-standing allies."


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:

  1. Earnings per Share ("EPS") calculation is based on the average number of shares outstanding during each period.
  2. ROAE refers to return on average stockholders' equity which is calculated on the basis of unaudited daily average balances.
  3. NIM refers to net interest margin which constitutes to Net Interest Income ("NII") divided by the average balance of interest-earning assets.
  4. NIS refers to net interest spread which constitutes the average yield earned on interest-earning assets, less the average yield paid on interest-bearing liabilities.
  5. Efficiency Ratio refers to consolidated operating expenses as a percentage of total revenues. 
  6. The Bank's "Credit Portfolio" includes gross loans (or the "Loan Portfolio"), securities at FVOCI and at amortized cost, gross of interest receivable and the allowance for expected credit losses, loan commitments and financial guarantee contracts, such as confirmed and stand-by letters of credit, and guarantees covering commercial risk; and other assets consisting of customers' liabilities under acceptances.
  7. The Bank's "Commercial Portfolio" includes gross loans (or the "Loan Portfolio"), loan commitments and financial guarantee contracts, such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk and other assets consisting of customers' liabilities under acceptances.
  8. Market capitalization corresponds to total outstanding common shares multiplied by market close price at the end of each corresponding period.
  9. Tier 1 Capital is calculated according to Basel III capital adequacy guidelines and is equivalent to stockholders' equity excluding certain effects such as the OCI effect of the financial instruments at fair value through OCI.  Tier 1 Capital ratio is calculated as a percentage of risk-weighted assets.  Risk-weighted assets are estimated based on Basel III capital adequacy guidelines.
  10. Liquid assets refer to total cash and due from banks, consisting of cash and due from banks and interest-bearing deposits in banks, excluding pledged deposits and margin calls.  Liquidity ratio refers to liquid assets as a percentage of total assets.   
  11. Credit-impaired loans are also commonly referred to as Non-Performing Loans or NPLs.  Loan Portfolio refers to gross loans, excluding interest receivable, the allowance for loan losses, and unearned interest and deferred fees.
  12. Total allowance for losses refers to allowance for loan losses plus allowance for loan commitments and financial guarantee contract losses and allowance for investment securities losses.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements of expected future developments within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements can be identified by words such as: "anticipate", "intend", "plan", "goal", "seek", "believe", "project", "estimate", "expect", "strategy", "future", "likely", "may", "should", "will" and similar references to future periods.  The forward-looking statements in this press release include the Bank's financial position, asset quality and profitability, among others.  These forward-looking statements reflect the expectations of the Bank's management and are based on currently available data; however, actual performance and results are 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 coronavirus (COVID-19) pandemic and government actions intended to limit its spread; the anticipated changes in 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. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.  

ABOUT BLADEX

Bladex, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, began operations in 1979 to promote foreign trade and economic integration in the Region. The Bank, headquartered in Panama, also has offices in Argentina, Brazil, Colombia, Mexico, and the United States of America, and a Representative License in Peru, supporting the regional expansion and servicing its customer 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 and state-owned banks and entities representing 23 Latin American countries; commercial banks and financial institutions; and 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 Tuesday, July 28, 2020 at 11:00 a.m. New York City time (Eastern Time).  For those interested in participating, please dial 1-877-271-1828 in the United States or, if outside the United States, 1-334-323-9871.  Participants should use conference passcode 89194804#, 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 will be 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: 34627735. 

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)


These press releases may also interest you

at 18:45
Lophos Holdings Inc. ("Lophos" or the "Company") is pleased to announce all matters presented for approval at the annual general meeting of the shareholders of the Company held earlier today March 28, 2024 (the "Meeting") have been approved. A total...

at 18:40
Liberty Gold Corp. ("Liberty Gold" or the "Company"), is pleased to announce its financial and operating results for the fiscal year ended December 31, 2023. All amounts are presented in United States dollars unless otherwise stated. 2023 AND...

at 18:39
iAnthus Capital Holdings, Inc. ("iAnthus" or the "Company") , which owns, operates, and partners with regulated cannabis operations across the United States, today reported its financial results for the fourth quarter and year-ended December 31,...

at 18:35
McorpCX, a leading customer and employee experience consultancy, and CX capabilities builder driving greater customer centricity since its founding in 2002, today announced the acquisition of UK-based myCXvision, a customer experience management...

at 18:17
GERDAU S.A. hereby announces that the Form 20-F related to the fiscal year ended December 31, 2023 was filed with the U.S. Securities and Exchange Commission (SEC) at http://sec.gov and with the Securities and Exchange Commission of Brazil (CVM) at...

at 18:15
Americas Gold and Silver Corporation ("Americas" or the "Company"), a growing North American precious metals producer, reports consolidated financial and operational results for the year ended December 31, 2023. This earnings release should be...



News published on and distributed by: