The New York Stock Exchange-listed bank, which was formed in 1993 by various central banks and state-owned banks across Latin America and the Caribbean, recorded a profit of $16.6 million USD in the quarter, it reported on July 20.

This was up 15% compared to the first quarter, when Bladex recorded profits of $14.5 million. It represents a drop from the $17.5 million USD in profits during the second quarter of 2017, however.

Bladex’s net interest income of $27.9 million USD this quarter also dipped from the same period of 2017, when it brought in $29.3 million USD. But it was up from the $26.6 million of net interest income from the first quarter of 2018.

Christopher Schech, chief financial officer of Bladex, is also leaving the regional financial services institution effective immediately. He is departing to “pursue other opportunities” after eight years with the company in a move that is “part of the succession plan of the organization,” according to a statement from Bladex. He will be replaced by new CFO Ana Graciela de Méndez, who had been serving as senior vice president of finance.

Gonzalo Menéndez Duque, chairman of Bladex, said that “the board is saddened by the departure of a CEO whose success in improving the bank’s business model, attracting top talent, relentlessly driving financial performance, and enhancing the value of the Bladex brand is well known and deservedly recognized.”

Menéndez also noted that Amaral and Tolchinsky, who has worked with Bladex as a consultant since 2014 and became both COO and “alternate CEO” this May, have worked together closely, which leads the board to “expect the transition process to be virtually seamless.”

In a statement, Amaral commented upon his accomplishments at the helm of Bladex and praised Tolchinsky as a successor. “I have no doubts that the Bladex franchise is strong, and I am also happy to have identified a very qualified successor in Gabriel to lead the bank in this new phase and prepare the organization to face the digital disruption which will undoubtedly impact financial institutions’ business worldwide,” said Rubens Amaral.

Bladex was established by the central banks of various Latin American and Caribbean countries in 1979 and has offices throughout the region, including locations in Colombia, Brazil, Mexico, Argentina, Peru, and the United States.

The dividend, whose amount matches the sum paid out in both the first and second quarters of 2017, will be paid in cash to all stockholders of record as of November 1, according to the bank.

As of September 30, Bladex had 39,364,561.73 shares outstanding of all classes, the organization said in a statement.

Bladex, which is based in Panama City, was originally established by a collection of central banks throughout Latin American and the Caribbean in 1979. With offices in Colombia, Brazil, Mexico, Argentina, and Peru, it now counts central banks, state-owned banks, and entities representing 23 Latin American countries, in addition to commercial banks and other financial institutions, among its shareholders.

The arrangement, which marks the first international syndicated facility arranged for BAC Guatemala, was 1.7x oversubscribed and attracted “the interest of financial institutions from Europe, Asia, Central America, and the Caribbean, all of which represent new banking relationships for the bank,” said the Panama City-based Bladex in a statement.

Bladex, widely known as the Foreign Trade Bank of Latin America since being founded in 1979 by a coalition of Latin American central banks, also stated that proceeds from the facility will be used to finance BAC Guatemala’s trade loan portfolio.

Bladex, which maintains an office in Bogotá, was the bookrunner, administrative agent, and sole lead arranger of the facility, said the bank.

“This transaction marks the second syndicated facility to the BAC Credomatic Group led by Bladex,” said Felipe Suarez, head of loan structuring and distribution at Bladex. “We are very pleased to bring new banking relationships and to provide medium-term financing to BAC Guatemala.”

BAC Credomatic, which is owned by Colombian financial-focused holding company Grupo Aval Acciones y Valores S.A., is a major Central American banking group that maintains operations in each of the region’s Spanish-speaking countries: Mexico, Panama, Costa Rica, Nicaragua, Guatemala, Honduras, and El Salvador. BAC Credomatic is the number-one credit card issuer and merchant-acquiring franchise in Central America, according to Bladex,

Bladex, a regional bank in the Americas that was founded jointly by several central banks in Latin America and the Caribbean in 1979 to promote trade and economic integration, had 39,226,929 shares outstanding, of all classes, as of the company’s board meeting on April 18.

Headquartered in Panama City, Bladex also has offices throughout the Americas in locations including Colombia, Brazil, Mexico, Argentina, Peru, and the United States. It has been listed on the New York Stock Exchange since 1992.

Bladex CFO Christopher Schech

Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”), the Panama-based supranational bank established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade finance and economic integration in the Region, announced its results for the fourth quarter and full-year ended December 31, 2014, in an earnings conference call hosted by the bank’s chief financial officer, Christopher Schech.

Bladex’s fourth quarter 2014 Net Income totaled $36.1 million (+51% year over year; +36% quarter over quarter).  Full-year 2014 Net Income of $106.9 million (+$22 million, or +26% year over year), on improved results in core business segments (business net income of $103.5 million versus $89.4 million in 2013) and non-core activities.

“This was a year certainly not without its challenges for the region, and for Bladex, mainly on the economic front, where some of the drivers of Latin America´s growth over the last couple of decades have lost a bit of their luster,” said Rubens V. Amaral, Jr., Bladex’s Chief Executive Officer. “Prices of many commodities continued their downward trend, the growth of the internal markets was less significant than in previous years, and last but not least the important reduction in oil prices, that has roiled global markets since the second half of last year. We also experienced more volatility in the capital flows towards the Region, as the US concluded the tapering of its QE3, paired with the lack of growth in Europe, and uncertainty about the Euro Zone, all of which led to a flight to quality, moving more capital towards the U.S. where the economy continued to present improved growth prospects.”

Bladex CEO Rubens V. Amaral, Jr.

Net interest income totaled $38.3 million in 4Q14 (+23% year over year; +4% quarter over quarter) to reach $141.1 million in 2014 (+$18 million, or +15% year over year) on higher average loan portfolio balances and increased net margins resulting primarily from lower average funding costs.

Fees and Other Income reached $7.0 million in 4Q14 (+30% year over year; +37% quarter over quarter), while full-year 2014 fee and other income amounted to $21.8 million (+$5.9 million, +37% year over year), attributable to increased syndication, structuring and distribution activities.

“As the 2014 results can attest, this focus does pay off as we make progress along above lines, and we were able to hit a few milestones along the way. We reached triple digit net income numbers, the highest level of core, recurring performance ever (leaving aside the years 2003 and 2004, in which we experienced a robust recovery from the aftermath of the Argentina crisis, triggering out-sized reserve releases). We surpassed the $3 billion mark in deposits at several times during the year, increasing average deposit levels by more than 8%. We significantly improved our core efficiency levels on the back of rising revenues while maintaining cost discipline. We doubled our income derived from our structuring and distribution activities. And, all-in-all, we were able to generate 12% of return on average equity and more than 14% of total return (dividends and year over year stock price appreciation) for our shareholders,” added Amaral.

Key performance metrics:

• Net interest spread (“NIS”) improved to 1.71% in 2014 (+16 bps year over year), while net interest margin (“NIM”) reached 1.87% in 2014 (+12 bps year over year), on higher average loan portfolio balances (+9% year over year) and lower average cost of funds (-26 bps year over year).  NIS & NIM in 4Q14 was 1.76% (+25 bps year over year; -1 bps quarter over quarter), and 1.92% (+23 bps year over year; -1 bps quarter over quarter), respectively.
• The Bank’s 2014 annualized return on average equity (“ROAE”) reached 12.0% versus 10.0% in 2013, while 4Q14 ROAE was 15.7% versus 11.7% in 3Q14 and 11.0% in the 4Q13.
• The Efficiency Ratio improved to 32% in 2014 (-9 pts. year over year), as net operating revenues grew 26% and operating expenses decreased 1%.  The 4Q14 Efficiency Ratio was 28% (-15 pts. year over year; -2 pts. quarter over quarter), as quarterly increases in net operating revenues (+62% year over year; +20% quarter over quarter), outpaced higher operating expenses (+7% year over year; +14% quarter over quarter).

Credit Growth & Quality:

• Average Commercial Portfolio balances amounted to $7.3 billion in 4Q14 (+11% year over year; +5% quarter over quarter), and$6.9 billion in year 2014 (+10% year over year), while the end-of-period Commercial Portfolio balance stood at $7.2 billion as of December 31, 2014 (+8% year over year).
• Credit quality remained healthy with a ratio of 0.06% of non-accrual loans to total loan portfolio balances as of December 31, 2014.  The ratio of the allowance for credit losses to the Commercial Portfolio ending balances was 1.20% at the end of year 2014 (+2 bps year over year; +1 bp quarter over quarter).  The credit provision to non-performing loan balances ratio was 21.4 times, compared to 21.1 times in 3Q14, and 25.0 times in 4Q13.

FINANCIAL SNAPSHOT

Recent Events

• Quarterly dividend payment:  At the Board of Director’s meeting held December 8, 2014, the Bank’s Board approved a quarterly common dividend of $0.385 per share corresponding to the fourth quarter 2014.  This represents an increase of $0.035 or 10%, compared to the previous quarterly dividend, underlining the Board’s commitment to continue its established dividend approach that reflects the development and growth of the Bank’s core business.  The dividend was paid on January 13, 2015, to stockholders registered as of January 5, 2015.

Ratings affirmed:  On November 12, 2014, Moody’s Investors Service affirmed the Bank’s credit rating at Baa2/P-2; with a “Stable” Outlook.