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
Apartado 6-1497
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 ___
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing information to the Commission
pursuant to Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No _x_
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b). 82__.)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
May 6, 2004
Banco Latinoamericano de Exportaciones, S.A.
By: /s/ Pedro Toll
Name: Pedro Toll
Title: General Manager
FOR IMMEDIATE RELEASE
BANCO LATINOAMERICANO DE EXPORTACIONES, S.A. ("BLADEX")
REPORTS FIRST QUARTER 2004 NET INCOME OF US$29.8 MILLION
1Q04 Financial Highlights
o Net Income was US$29.8 million in the 1Q04, compared to US$16.2 million
for the 4Q03, and US$10.4 million for the 1Q03.
o Exposure in Argentina (net of allowance for credit losses and impairment
loss) is US$222 million, down 45% from a year ago, and down 7% from last
quarter.
Panama City, Republic of Panama, May 4, 2004 - Banco Latinoamericano de
Exportaciones, S.A. ("BLADEX" or "the Bank") (NYSE: BLX), announced today its
results for the first quarter ended March 31, 2004. (The Bank's financial
statements are prepared in accordance with U.S. GAAP, and all figures are stated
in U.S. dollars.)
The Bank reported net income of US$29.8 million for the first quarter of 2004,
or US$0.76 per share, compared to net income of US$16.2 million, or US$0.41 per
share, in the previous quarter, and net income of US$10.4 million, or US$0.58
per share, in the first quarter of 2003.
Net income for the first quarter of 2004 reflected the effect of US$36 million
in partial payments and prepayments of Argentine restructured loans, which
contributed to the reversals of the allowance for credit losses in the amount of
US$19 million out of a total of US$21.4 million.
Key Figures
-------------------------------------------------------
1Q03 4Q03 1Q04
-------------------------------------------------------
Net Income (In US$ million) $10.4 $16.2 $29.8
EPS* $0.58 $0.41 $0.76
Return on Average Equity 12.1% 11.2% 20.2%
Tier 1 Capital Ratio 18.2% 35.4% 37.9%
Net interest margin 1.73% 2.07% 1.69%
-------------------------------------------------------
*Earnings per share calculations are based on the
average number of shares outstanding during each
period. During the first quarter of 2004 the average
number of common shares was 39.4 million, compared to
39.3 million in the fourth quarter of 2003, and 17.3
million during the first quarter of 2003.
1
Comments from the Chief Executive Officer
Jaime Rivera, Chief Executive Officer of BLADEX stated, "With the turnaround of
the Bank now complete, the overall framework of our operations is being defined
by significantly improved prospects for economic growth in the Region, continued
progress on our plan to strengthen and broaden the scope of our business model
and, generally, a stable or improved risk profile in our portfolio. Within this
context, the first quarter's financial results were driven by three factors:
first, strong principal repayments in Argentina; second, a market temporarily
flushed with liquidity, resulting in declining interest rates and pressure on
lending margins, and third, continued progress on improving our efficiency
levels.
The strong performance of our portfolio in Argentina was related to generally
increasing levels of liquidity in the local market, and to record high commodity
(export) prices. I'm pleased to report that we collected US$36 million in
principal repayments during the period, bringing our total net exposure to
US$222 million, 7% lower than at year-end 2003.
Regarding the pressure on margins that we saw during the quarter, we have taken
the position that, given the improved economic growth prospects in the Region,
this trend is likely to reverse itself as credit demand strengthens. As a
result, we elected to slow down our lending in order to preserve lending
capacity within our credit limits and have it available once pricing terms
improve in our favor.
The approximate 5 basis point decrease in short-term LIBOR interest rates over
the quarter hurt us because, with our assets re-pricing faster than our
liabilities, our balance sheet is positioned to take advantage of interest rate
increases. We maintain our view that interest rates are heading for an increase,
however, and currently expect to keep our maturity profile unchanged. All other
things being equal, we estimate that a 25 basis points increase in the general
level of interest rates would result in a US$2.1 million additional net interest
income through year-end.
The most exciting developments during the quarter took place outside the scope
of the financial statements, however. With the arrival of Mr. Rubens Amaral to
head our commercial operations out of our New York Agency, we put in place the
last of the missing pieces needed to put the transformation of the Bank into
high gear. We are taking steps to optimize our client coverage model, changing
the segmentation of our client base to allow for more effective cross selling
tactics identifying and pursuing new product opportunities, optimizing the
structure of our sales force, and incorporating the feedback developed during
our brand and perception study into our plans. Most importantly, we have been
very successful in attracting top caliber people to our team.
I'm pleased to report that at our Annual Shareholders' Meeting, we received
approval by practically 100% of the votes cast on all items submitted to
shareholders. Furthermore, we are seeing greater interest from the market in our
company, evidenced by a greater flow of our information, broader analyst
coverage, and an overall higher level of Investor Relations activity.
2
Lastly, we continue studying the capital management question closely, aiming to
arrive at a solution that will make the most sense in view of risk levels,
growth opportunities, and our shareholders' best interests. Assuming a stable
scenario, it is the Bank's intention to take additional action on the capital
management front during 2004."
NET INTEREST INCOME
Net interest income in the first quarter of 2004 amounted to US$11.3 million,
compared to US$13.3 million in the fourth quarter of 2003, and US$13.8 million
in the first quarter 2003. The US$1.9 million decline in the first quarter 2004
compared to the fourth quarter of 2003 was mainly attributable to lower lending
margins, decreased scheduled interest payments on the Bank's single non-accrual
loan outside Argentina, and lower interest rates, which had a negative impact on
the interest rate gap, which currently is asset sensitive. These factors were
partially offset by higher average loan volumes.
Net interest margin
The table below provides the net interest margin (net interest income divided by
the average balance of interest-earning assets), and net interest spread
(average yield earned on interest-earning assets, less the average rate paid on
interest-bearing liabilities) for the periods indicated:
1Q03 4Q03 1Q04
-------------------------------------------------
Net Interest Margin 1.73% 2.07% 1.69%
Net Interest Spread 1.13% 1.41% 1.11%
-------------------------------------------------
1Q04 vs. 4Q03
The decreases in net interest margin and net interest spread for the first
quarter of 2004, compared to the fourth quarter of 2003, were 38 basis points
and 30 basis points, respectively. The 38 basis point decrease in the net
interest margin was mainly due to: (i) lower spreads over LIBOR on the accruing
loan and investment portfolio (-15 basis points); (ii) lower interest
collections on the Bank's single non-accrual loan portfolio outside Argentina,
resulting from lower interest payment scheduled maturities during the first
quarter of 2004 (-13 basis points); and (iii) falling interest rates, which had
a negative impact on the asset sensitive interest rate gap, and generated a
lower return on the Bank's available capital funds (-10 basis points). The
decrease in net interest spread reflects the combination of re-pricing assets in
a falling interest rate environment, and generally lower lending spreads over
LIBOR.
3
COMMISSION INCOME
The following table shows the components of commission income for the periods
indicated:
--------------------------------------------------------------------
(In US$ thousands) 1Q03 4Q03 1Q04
--------------------------------------------------------------------
Letters of credit $1,241 $794 $1,124
Guarantees:
Country risk coverage business 328 309 306
Other guarantees 294 145 130
Loans 576 346 165
------ ------ ------
--------------------------------------------------------------------
Total Commission Income $2,438 $1,595 $1,724
====== ====== ======
--------------------------------------------------------------------
Commission income for the first quarter of 2004 increased by 8% compared to the
fourth quarter of 2003 mostly due to increased volumes in letters of credit.
PROVISIONS FOR CREDIT LOSSES
During the first quarter of 2004, the Bank reversed US$21.4 million of its
allowance for credit losses, mainly as a result of principal payments on
Argentine restructured loans. During the quarter as well, the Bank increased its
general reserve coverage for Dominican Republic credits, and lowered certain
general reserves in line with reduced country exposure levels. (For additional
information, please refer to Asset Quality section on page 10.)
OPERATING EXPENSES
The following table shows a breakdown of the components of operating expenses
for the periods indicated:
(In US$ thousands)
-----------------------------------------------------------------------
1Q03 4Q03 1Q04
-----------------------------------------------------------------------
Salaries and other employee expenses $2,549 $4,298 $2,377
Depreciation 376 381 359
Professional services 488 984 507
Maintenance and repairs 214 335 256
Other operating expenses 958 1,813 1,190
------ ------ ------
-----------------------------------------------------------------------
Total Operating Expenses $4,585 $7,812 $4,689
====== ====== ======
-----------------------------------------------------------------------
1Q04 vs. 4Q03
Salaries and other employee expenses for the fourth quarter of 2003 and first
quarter of 2004 include variable compensation and severance provisions of US$2.1
million and US$0.4 million, respectively. Excluding the impact of these
provisions, salaries and other employee expenses for the first quarter of 2004
decreased by 12%. Professional service expenses for the first quarter of 2004
decreased by US$0.5 million (49%), reflecting the one-time nature of recruiting
and legal fees during the fourth quarter of 2003. Other operating expenses for
the first quarter of 2004 decreased by US$0.6 million (34%), primarily due to
expenses related to the Bank's brand image project incurred during the fourth
quarter of 2003.
4
BUSINESS OVERVIEW
[The following table was depicted as a bar chart in the printed material.]
Credit Portfolio Disbursements
US$ Million
1QTR03 974
2QTR03 962
3QTR03 986
4QTR03 1,208
1QTR04 991
[The following table was depicted as a bar chart in the printed material.]
Credit Portfolio
US$ Million
---------------------------------------------
Non-Accrual
Credit
Trade Non-Trade Portfolio
----- --------- -----------
31-Mar-03 1,528 997 758 3,283
30-Jun-03 1,455 857 632 2,944
30-Sep-03 1,580 717 500 2,797
31-Dec-03 1,719 646 482 2,847
31-Mar-04 1,740 524 446 2,710
Lower disbursements in the first quarter of 2004 reflect the decision by the
Bank to preserve availability within its credit facilities in the face of narrow
spreads.
The geographic composition (excluding the non-accruing portfolio in Argentina)
of the Bank's credit portfolio by type of client as of March 31, 2004, was as
follows:
-------------------------------------------------------------------------------------------------------------------
Caribbean
Brazil Mexico Dominican and Central South Other (*) Total Total
Republic America America 03/31/04 12/31/03
-------------------------------------------------------------------------------------------------------------------
Banks 78% 48% 100% 49% 65% 100% 69% 67%
Other 22% 52% 0% 51% 35% 0% 31% 33%
Trade 82% 81% 91% 98% 60% 5% 75% 71%
Non-Trade 18% 19% 9% 2% 40% 95% 25% 29%
-------------------------------------------------------------------------------------------------------------------
(*) Other - consists of reverse repurchase agreements classified as U.S. country
risk of US$132 million, guarantees for US$7 million issued to a multilateral
bank in Honduras and a US$52 thousand letter of credit confirmed for a bank in
Spain.
5
As of March 31, 2004, 87% of the Bank's credit portfolio (excluding Argentina)
was scheduled to mature on or before March 31, 2005.
The Bank's total assets and contingencies, and risk-weighted assets by country,
as of March 31, 2004 were as follows:
[The following table was depicted as a pie chart in the printed material.]
Assets and Contingencies - Credit Exposure
(in US$ Million, except percentages)
Argentina $399 15%
Brazil $1,074 40%
Chile $137 5%
Dominican Republic $25 1%
Mexico $333 12%
Venezuela $48 2%
Other Countries (1) $694 26%
(1) Other countries - includes securities purchased under agreements to resell
of US$132 million classified as US country risk, US$7 million in guarantees
issued to a multilateral bank in Honduras and a US$52 thousand letter of credit
confirmed for a bank in Spain.
Does not include US$206 million correspondent to cash and due from banks,
interest-bearing deposits with banks, unearned income, premises and equipment,
accrued interest receivable, deriviative financial instruments-assets, and other
assets.
[The following table was depicted as a pie chart in the printed material.]
Risk Weighted Assets
(In US$ Million, except percentages)
Argentina $399 26%
Brazil $507 32%
Chile $65 4%
Dominican Republic $5 0%
Mexico $186 12%
Venezuela $48 3%
Other Countries (1) $352 23%
(1) Other countries - includes securities purchased under agreements to resell
of US$132 million classified as US country risk, US$7 million in guarantees
issued to a multilateral bank in Honduras and a US$52 thousand letter of credit
confirmed for a bank in Spain.
Does not include US$51 million correspondent to cash and due from banks,
interest-bearing deposits with banks, unearned income, premises and equipment,
accrued interest receivable, deriviative financial instruments-assets, and other
assets.
6
ARGENTINE EXPOSURE
[The following table was depicted as a bar chart in the printed material.]
Argentine Exposure
Reserve and
US$ Million mark-to-market
------------------------------ as a % of
Nominal Value Net Exposure nominal value
Dec-01 1,155 1,002 13%
Mar-02 1,001 828 17%
Jun-02 961 494 49%
Sep-02 929 462 50%
Dec-02 847 394 53%
Mar-03 824 401 51%
Jun-03 618 350 43%
Sep-03 457 272 40%
Dec-03 440 240 45%
Mar-04 403 222 45%
As of March 31, 2004, the Bank's US$222 million exposure in Argentina, net of
allowance for credit losses, represented 36% of the total equity capital of the
Bank, compared to 41% as of December 31, 2003, and 115% as of March 31, 2003.
The Bank's exposure in Argentina as of March 31, 2004, December 31, 2003 and
March 31, 2003 is presented in the following table:
(In US$ million)
---------------------------------------------------------------------------------------------------------
Acceptances
Loans Investments and Total Repurchase
Contingencies Agreements
---------------------------------------------------------------------------------------------------------
Nominal Value ("gross portfolio") $362 $10 $31 $403 $132
Impairment loss n.a. (4) n.a. (4) 0
---- --- --- ---- ----
Credit Portfolio at Mar. 31, 2004 362 5 31 399 132
Specific allowance for credit losses (157) n.a. (20) (176) 0
Collateral (U.S. Treasury Strips) 0 0 0 0 (132)
---- --- --- ---- ----
---------------------------------------------------------------------------------------------------------
Net Exposure at Mar. 31, 2004 $205 $5 $11 $222 $0
==== === === ==== ====
---------------------------------------------------------------------------------------------------------
Net Exposure at Dec. 31, 2003 $223 $5 $11 $240 $0
==== === === ==== ====
---------------------------------------------------------------------------------------------------------
Net Exposure at Mar. 31, 2003 $332 $42 $28 $401 $0
==== === === ==== ====
---------------------------------------------------------------------------------------------------------
As of March 31, 2004, the Bank's gross portfolio in Argentina amounted to US$403
million, a reduction of US$421 million, or 51%, compared to March 31, 2003, and
US$37 million, or 8%, since December 31, 2003. The US$37 million reduction in
the first quarter of 2004 was mainly due to the repayments under restructured
Argentine loans.
7
The Bank's entire exposure in Argentina continues to be denominated in U.S.
dollars (93%) and Euros (7%). The Argentine credit portfolio distribution by
industry type as of March 31, 2004 was as follows:
(In US$ million, except percentages)
------------------------------------------------------------------------
Claims (Credit Portfolio)
Industry As of Mar. 31/04 %
------------------------------------------------------------------------
Non-Financial Entities
Beverage $22 5%
Telecommunications 4 1%
Food production 15 4%
Mining and oil and gas extraction 50 12%
Primary metal manufacturing 6 1%
Utilities 46 12%
---- ---
------------------------------------------------------------------------
Total Non-Financial Entities $142 36%
------------------------------------------------------------------------
Financial Institutions
Controlled subsidiaries of
major US and European Banks $48 12%
State owned banks guaranteed
by third party paper 64 16%
State-owned banks 144 36%
---- ---
------------------------------------------------------------------------
Total Financial Institutions $256 64%
------------------------------------------------------------------------
Total $399 100%
==== ===
In addition, as of March 31, 2004, the Bank had reverse repurchase agreements
with Argentine counterparties totaling US$132 million, which were fully
collateralized with U.S. Treasury securities, an amount unchanged from December
31, 2003 and March 31, 2003. These assets are classified as U.S. country risk.
Interest payments on Argentine credits (loans and securities) are recorded on a
cash basis. The Bank collected interest from Argentine borrowers of
approximately US$5 million during the first quarter 2004, an amount unchanged
from the fourth quarter of 2003. The ratio of interest collected from Argentine
borrowers to total interest payments due and payable from these borrowers during
the first quarter 2004 was 98%, a figure unchanged from the fourth quarter 2003,
and compared to 74% during the first quarter of 2003. Although significant
amounts of interest have been received on a consistent basis from most of the
Bank's clients in the country, the ultimate collection of principal on these
credits is evaluated separately.
The composition and maturity profile of the Argentine credit portfolio in terms
of restructured loans as of March 31, 2004 was as follows:
8
(In US$ million, except percentages)
---------------------------------------------------------------------------------------------------------------------------------
Payments scheduled
Outstanding ------------------------------------------------------
As of Past
Status Mar. 31, 2004 % 2004 2005 2006 2007-2010 Due
---------------------------------------------------------------------------------------------------------------------------------
Performing under original terms $28 7% $3 $11 $12 $2 $0
Restructured and performing under renegotiated terms 321 81% 56 62 73 129 0
In negotiations to be restructured (current in interest) 16 4% 16 0 0 0 0
Not yet restructured and not paying interest 34 8% 5 8 0 0 22
---- --- --- --- --- ---- ---
---------------------------------------------------------------------------------------------------------------------------------
Total $399 100% $80 $81 $85 $131 $22
==== === === === ==== ===
---------------------------------------------------------------------------------------------------------------------------------
The portfolio of restructured and performing loans, under the renegotiated
terms, has an average life of 2.3 years. No restructurings have involved
discounts or losses of principal. Assets not yet restructured and not paying
interest consist of obligations from four companies in the utilities sector.
BRAZILIAN EXPOSURE
At March 31, 2004, December 31, 2003, and March 31, 2003, the Bank's exposure in
Brazil was as follows:
(In US$ million)
--------------------------------------------------------------------------------
Loans Investments Contingencies Total
--------------------------------------------------------------------------------
Nominal Value $948 $15 $110 $1,073
Fair value adjustments n.a. 1 n.a. 1
---- ---- ----- ------
Credit Portfolio at Mar. 31, 2004 948 16 110 1,074
Allowance for credit losses (33) n.a. (1) (33)
---- ---- ----- ------
--------------------------------------------------------------------------------
Net Exposure at Mar. 31, 2004 $915 $16 $109 $1,040
==== ==== ===== ======
--------------------------------------------------------------------------------
Net Exposure at Dec. 31, 2003 $978 $16 $125 $1,119
==== ==== ===== ======
--------------------------------------------------------------------------------
Net Exposure at Mar. 31, 2003 $851 $31 $187 $1,069
==== ==== ===== ======
--------------------------------------------------------------------------------
As of March 31, 2004, the Bank's credit exposure in Brazil was composed of 78%
obligations due from banks and 22% from non-financial entities, a distribution
unchanged from December 31, 2003. As of March 31, 2004, the trade finance
segment of the Brazilian credit portfolio was 82%, compared to 78% as of
December 31, 2003, and 65% as of March 31, 2003.
At the end of the first quarter of 2004, the Brazilian portfolio had no past
due interest amounts, and included one impaired loan on non-accrual status in
the amount of US$47 million to a Brazilian corporation, for which the Bank has
established a US$17 million specific allowance for possible loan losses. During
the first quarter of 2004, the Bank collected interest income on a cash basis of
US$0.9 million from this borrower, versus US$1.6 million of interest income
collected in the fourth quarter of 2003, due to lower interest payment scheduled
maturities.
9
LIQUIDITY
Deposits increased by 25% to US$719 million from a year ago, primarily
reflecting new deposits from central banks and state-owned companies in the
Region.
Since the third quarter of 2003, the Bank has been managing its liquidity funds
to gradually match historical levels. The Bank's net cash position (cash due
from banks, plus interest bearing deposits with banks) as a percentage of its
overall balance sheet was 7.6% at the end of the first quarter of 2004, compared
to 9.9% as of December 31, 2003, and 18.8% as of March 31, 2003, respectively.
The Bank's net cash position represented 25.6% of deposits as of March 31, 2004,
35.9% as of December 31, 2003, and 92.9% as of March 31, 2003.
ASSET QUALITY
The Bank's US$237 million allowance for credit losses as of March 31, 2004
compares to an allowance of US$258 million as of December 31, 2003, and US$446
million as of March 31, 2003. The US$21 million decrease in the allowance for
credit losses in the first quarter of 2004 was principally due to: i) a US$19
million reduction in specific reserves assigned to Argentine credits as a result
of principal payments received on restructured loans and prepayments; ii) a US$5
million reduction in general reserves mainly as a result of the reduction of the
Bank's exposure in Brazil and Venezuela; and iii) US$3 million increase in
general reserves in the Dominican Republic.
The following table sets forth changes in the Bank's allowance for credit losses
for the quarters ended at the dates indicated:
(In US$ million)
----------------------------------------------------------------------------------------------------
31-MAR-03 30-JUN-03 30-SEP-03 31-DEC-03 31-MAR-04
----------------------------------------------------------------------------------------------------
Allowance for credit losses
At beginning of period $453.1 $445.6 $322.8 $272.3 $258.3
Provisions charged to expense (1) 0.3 -44.6 -5.1 -9.4 -21.4
Credit recoveries 0.0 0.0 2.0 0.0 0.0
Credits written-off against the
allowance -7.8 -78.2 -47.4 -4.6 0.0
------ ------ ------ ------ ------
----------------------------------------------------------------------------------------------------
Balance at end of period $445.6 $322.8 $272.3 $258.3 $236.9
====== ====== ====== ====== ======
----------------------------------------------------------------------------------------------------
(1) Includes reversals in the provision for loan losses of US$44.1 million,
US$9.9 million and US$8.7 million as a result of the sale of Argentine
loans during the 2Q03, 3Q03 and 4Q03, respectively.
At March 31, 2004, the allowance for credit losses and net exposure on a per
country basis was as follows:
10
(In US$ million)
-----------------------------------------------------------------------------------------------
Investments
Loans and Loans and (Net of
Contingencies Allowance for Contingencies impairment
(Nominal Value) credit losses (Net Value) loss) Net Exposure
-----------------------------------------------------------------------------------------------
Argentina $393 $(176) $217 $5 $222
Brazil 1,058 (33) 1,024 16 1,040
Other Countries 1,180 (27) 1,153 57 1,210
------ ----- ------ --- ------
-----------------------------------------------------------------------------------------------
Total $2,631 $(237) $2,394 $78 $2,473
====== ===== ====== === ======
-----------------------------------------------------------------------------------------------
PERFORMANCE AND CAPITAL RATIOS
At the end of the first quarter of 2004, the number of common shares outstanding
was 39.4 million, compared to 17.3 million common shares outstanding at March
31, 2003, reflecting a 22 million increase in the number of shares resulting
from the issuance of new equity capital in the amount of US$147 million at the
end of the second quarter of 2003.
The return on average shareholder's equity and the return on average assets for
the first quarter of 2004 were 20.2% and 4.7%, respectively, compared to 11.2%
and 2.7%, respectively, for the fourth quarter of 2003, and 12.1% and 1.5%,
respectively, for the first quarter of 2003.
Although the Bank is not subject to the capital adequacy requirements of the
Federal Reserve Board, if the Federal Reserve Board risk-based capital adequacy
requirements were applied, the Bank's Tier 1 and Total Capital Ratios as of
March 31, 2004 would have been 37.9% and 39.2%, respectively. Equivalent figures
for December 31, 2003, would have been 35.4% and 36.7%, respectively, and 18.2%
and 19.4%, respectively, for March 31, 2003.
RECENT EVENTS
o Indexed Option Plan: On April 13, 2004, the Board of Directors granted
options to purchase Class E shares under a new indexed option plan for
Executive Officers and Directors. The plan uses an option exercise price,
which is indexed to a customized Latin American general market index. The
underlying rationale of the plan is to reward option holders for BLADEX
stock price performance superior to the market index. Options have a
seven-year term, with cliff vesting after four years. Depending on
position and individual performance, executive officers are eligible for
grants equivalent to 40% to 100% of yearly salary. Directors are eligible
for grants valued at US$10,000 per year, except for the Chairman, who is
eligible for a US$15,000 yearly grant.
o Payment of Quarterly Dividends - On April 5, 2004, BLADEX's paid quarterly
cash dividends of US$0.10 per common share.
11
o Annual Shareholders Meeting - BLADEX's Annual Shareholders Meeting took
place on April 14, 2004, in Panama. At this meeting, Herminio Blanco,
William Hayes and Alexandre Lodygensky were elected to fill the three
available Director positions representing Class E shares. Two of these
three Class E Board seats represent positions formerly held by
representatives of the Bank's Class B shares, which were forfeited to the
Class E shareholders when the Class B ownership of the Bank fell below
10%. Also, during the Annual Shareholders' meeting, Maria da Graca Franca
was elected as a Class A Director, and CEO Jaime Rivera was elected as a
Director to represent all share classes.
ABOUT BLADEX
BLADEX is a multinational Bank originally established by the Central Banks of
Latin American and Caribbean countries to promote trade finance in the Region.
Based in Panama, its shareholders include central and commercial banks in 23
countries of the Region, as well as international banks and private investors.
Through March 31, 2004, over its 25 years of operations, BLADEX had disbursed
accumulated credits of over US$125 billion in the Region.
Note: Various numbers and percentages set out in this press release have been
rounded, and accordingly, may not total exactly.
--------------------------------------------------------------------------------
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 trend of pressure on margins reversing itself
as credit demand strengthens and the increase in interest rates in the future.
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: a
decline in the willingness of international lenders and depositors to provide
funding to the Bank, causing a contraction of the Bank's credit portfolio,
adverse economic or political developments in the Region, particularly in
Argentina or Brazil, which could increase the level of impaired loans in the
Bank's loan portfolio and, if sufficiently severe, result in the Bank's
allowance for probable credit losses being insufficient to cover losses in the
portfolio, unanticipated developments with respect to international banking
transactions (including among other things, interest rate spreads and
competitive conditions), a change in the Bank's credit ratings, events in
Argentina and Brazil or other countries in the Region unfolding in a manner that
is detrimental to the Bank, or which might result in adequate liquidity being
unavailable to the Bank, or the Bank's operations being less profitable than
anticipated.
--------------------------------------------------------------------------------
There will be a conference call to discuss the quarterly results on May 5, 2004
at 11:00 a.m. New York City time. For those interested in participating, please
call (800) 500-0177 in the United States or, if outside the United States,
please dial (719) 457-2679. All participants should give the conference name
"BLADEX Quarterly Call" or the conference ID#202247 to the telephone operator
five minutes before the call is set to begin. There will also be a live audio
webcast of the event at www.blx.com.
The BLADEX Conference Call will become available for review on Conference Replay
one hour after the conclusion of the conference call, and will remain available
through May 6, 2004. Please dial (888) 203-1112 or (719) 457-0820 and follow the
instructions. The Conference ID# for the call that will be replayed is 202247.
CONSOLIDATED BALANCE SHEET EXHIBIT I
--------------------------------------------------------------------------------------------------------------------------------
AT THE END OF,
---------------------------------------
(A) (B) (C)
Mar. 31, Dec. 31, Mar. 31, (C) - (B) (C) - (A)
2003 2003 2004 CHANGE % CHANGE %
--------------------------------------------------------------------------------------------------------------------------------
(In US$ thousands, except percentages)
ASSETS
Cash and due from banks ..................... $1,030 $868 $2,565 $1,697 196 % $1,535 149 %
Interest-bearing deposits with banks (1) .... 537,127 253,946 183,800 (70,146) (28) (353,327) (66)
Securities purchased under agreements
to resell ................................. 132,022 132,022 132,022 0 0 0 0
Securities available for sale ............... 145,341 48,341 48,858 517 1 (96,483) (66)
Securities held to maturity ................. 10,798 29,452 29,087 (365) (1) 18,289 169
Loans ....................................... 2,380,877 2,275,031 2,181,538 (93,493) (4) (199,340) (8)
Less:
Allowance for loan losses ................. (414,553) (224,347) (206,010) 18,338 (8) 208,544 (50)
Unearned income ........................... (7,333) (4,282) (2,711) 1,571 (37) 4,622 (63)
---------- ---------- ---------- --------- ---------
Loans, net .................................. 1,958,991 2,046,402 1,972,817 (73,585) (4) 13,826 1
Customers' liabilities under acceptances .... 28,473 29,006 40,516 11,510 40 12,043 42
Premises and equipment ...................... 4,798 4,119 3,886 (232) (6) (912) (19)
Accrued interest receivable ................. 14,511 10,931 10,585 (345) (3) (3,925) (27)
Derivatives financial instruments - assets .. 3,082 2,256 2,366 110 5 (717) (23)
Other assets ................................ 15,824 6,214 5,495 (719) (12) (10,329) (65)
---------- ---------- ---------- --------- ---------
TOTAL ASSETS ................................ $2,851,998 $2,563,556 $2,431,997 ($131,558) (5)% ($420,000) (15)%
========== ========== ========== ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing - Demand .............. $24,456 $19,370 $21,101 $1,731 9 % ($3,355) (14)%
Interest-bearing - Time ................... 552,935 683,585 698,011 14,426 2 145,076 26
---------- ---------- ---------- --------- ---------
Total Deposits .............................. 577,391 702,955 719,112 16,157 2 141,721 25
Short-term borrowings and placements ........ 664,923 687,214 575,627 (111,587) (16) (89,296) (13)
Medium and long-term borrowings
and placements ............................ 1,146,448 485,516 416,305 (69,211) (14) (730,142) (64)
Acceptances outstanding ..................... 28,473 29,006 40,516 11,510 40 12,043 42
Accrued interest payable .................... 9,437 5,432 5,778 347 6 (3,659) (39)
Derivatives financial instruments -
liabilities ............................... 18,810 13,021 8,271 (4,750) (36) (10,539) (56)
Reserve for losses on off-balance sheet
credit risk ............................... 31,011 33,973 30,922 (3,051) (9) (90) (0)
Redeemable preferred stock (2) .............. 0 10,946 11,039 92 1 11,039 0
Other liabilities ........................... 12,580 11,163 13,147 1,983 18 567 5
---------- ---------- ---------- --------- ---------
Total other liabilities ..................... 100,312 103,542 109,673 6,131 6 9,361 9
TOTAL LIABILITIES ........................... $2,489,073 $1,979,227 $1,820,717 ($158,510) (8)% ($668,357) (27)%
---------- ---------- ---------- --------- ---------
REDEEMABLE PREFERRED STOCK (2) .............. $12,458 $0 $0 $0 0% ($12,458) (100)%
STOCKHOLDERS' EQUITY
Common stock, no par value .................. 133,236 279,978 279,978
Treasury stock .............................. (85,634) (85,570) (85,570)
Capital surplus ............................. 145,489 133,817 133,817
Capital reserves ............................ 95,210 95,210 95,210
Accumulated other comprehensive income ...... 11,049 9,876 10,933
Retained earnings ........................... 51,116 151,017 176,912
---------- ---------- ----------
TOTAL STOCKHOLDERS' EQUITY ................. $350,466 $584,329 $611,280 $26,952 5 % $260,814 74 %
---------- ---------- ---------- --------- ---------
TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND STOCKHOLDERS' EQUITY ........... $2,851,998 $2,563,556 $2,431,997 ($131,558) (5)% ($420,000) (15)%
========== ========== ========== ========= =========
--------------------------------------------------------------------------------------------------------------------------------
(1) Interest-bearing deposits with banks include pledged certificate of
deposit of US$2.2 million at March 31, 2004, and at December 31, 2003, and
US$2.0 million at March 31, 2003.
(2) SFAS 150 regarding the inclusion of reedemable preferred stock as part of
the "other liability" line item was effective as of July 1, 2003.
CONSOLIDATED STATEMENT OF OPERATIONS EXHIBIT II
---------------------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED
-----------------------------------------
(A) (B) (C)
Mar. 31, Dec. 31, Mar. 31, (C) - (B) (C) - (A)
2003 2003 2004 CHANGE % CHANGE %
---------------------------------------------------------------------------------------------------------------------------------
(In US$ thousands, except percentages)
INCOME STATEMENT DATA:
Interest income ....................................... $27,840 $21,522 $19,508 ($2,014) (9)% ($8,331) (30)%
Interest expense ...................................... (14,069) (8,253) (8,186) 67 (1) 5,883 (42)
------- ------- ------- ------- -------
NET INTEREST INCOME ................................... 13,770 13,270 11,322 (1,947) (15) (2,448) (18)
Provision for loan losses ............................. 7,325 14,661 18,338 3,678 25 11,013 150
------- ------- ------- ------- -------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ... 21,096 27,930 29,660 1,730 6 8,565 41
OTHER INCOME (EXPENSE):
Commission income, net ................................ 2,430 1,400 1,674 275 20 (755) (31)
Provision for losses on off-balance sheet
credit risk ......................................... (7,642) (5,127) 3,051 8,178 (160) 10,693 (140)
Derivatives and hedging activities .................... (802) (199) 113 313 (157) 915 (114)
Impairment loss on securities ......................... (3) 0 0 0 n.a. 3 (100) (*)
Gain on early extinguishment of debt .................. 0 0 6 6 n.a. 6 n.a. (*)
Gain (loss) on foreign currency exchange .............. (27) 3 (1) (3) (125) 26 (98)
Other income .......................................... (91) 38 14 (24) (64) 105 (115)
------- ------- ------- ------- -------
NET OTHER INCOME (EXPENSE) ............................ (6,135) (3,886) 4,858 8,744 (225) 10,993 (179)
OPERATING EXPENSES:
Salaries and other employee expenses .................. (2,549) (4,298) (2,377) 1,921 (45) 173 (7)
Depreciation of premises and equipment ................ (376) (381) (359) 22 (6) 17 (4)
Professional services ................................. (488) (984) (507) 478 (49) (18) 4
Maintenance and repairs ............................... (214) (335) (256) 79 (24) (42) 20
Other operating expenses .............................. (958) (1,813) (1,190) 623 (34) (233) 24
------- ------- ------- ------- -------
TOTAL OPERATING EXPENSES .............................. (4,585) (7,812) (4,689) 3,123 (40) (104) 2
NET INCOME ............................................ $10,376 $16,233 $29,830 $13,597 84 $19,453 187
======= ======= ======= ======= =======
NET INCOME AVAILABLE FOR COMMON
STOCKHOLDERS ......................................... $10,127 $16,233 $29,830 $13,597 84 $19,703 195
PER COMMON SHARE DATA:
Net income, after Preferred Stock dividend ............ 0.58 0.41 0.76
Diluted earnings per share ............................ 0.58 0.41 0.76
COMMON SHARES OUTSTANDING:
Period average ........................................ 17,343 39,343 39,353
PERFORMANCE RATIOS:
Return on average assets .............................. 1.46% 2.71% 4.71%
Return on average common stockholders' equity ......... 12.13% 11.15% 20.20%
Net interest margin ................................... 1.73% 2.07% 1.69%
Net interest spread ................................... 1.13% 1.41% 1.11%
Total operating expenses to total average assets ...... 0.65% 1.31% 0.74%
---------------------------------------------------------------------------------------------------------------------------------
(*) The meaning of the abbreviation "n.a." for the percentage change of
periods presented means not applicable.
SUMMARY CONSOLIDATED FINANCIAL DATA EXHIBIT III
(Consolidated Statement of Operations, Balance Sheet and Selected Financial Ratios)
--------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31,
2003 2004
--------------------------------------------------------------------------------------------------------------------
(In US$ thousands, except per share amounts & ratios)
INCOME STATEMENT DATA:
Net interest income ............................................................ $13,770 $11,322
Provision for loan losses and off-balance sheet credit risk .................... (317) 21,389
Commission income, net ......................................................... 2,430 1,674
Derivatives and hedging activities ............................................. (802) 113
Impairment loss on securities .................................................. (3) 0
Gain on early extinguishment of debt ........................................... 0 6
Gain (loss) on foreign currency exchange ....................................... (27) (1)
Other income ................................................................... (91) 14
Operating expenses ............................................................. (4,585) (4,689)
--------- ---------
NET INCOME ..................................................................... $10,376 $29,830
========= =========
Net income available for common stockholders ................................... $10,127 $29,830
BALANCE SHEET DATA:
Loans, net ..................................................................... 1,958,991 1,972,817
Securities purchased under agreements to resell ................................ 132,022 132,022
Investment securities .......................................................... 156,139 77,945
Total assets ................................................................... 2,851,998 2,431,997
Deposits ....................................................................... 577,391 719,112
Short-term borrowings and placements ........................................... 664,923 575,627
Medium and long-term borrowings and placements ................................. 1,146,448 416,305
Redeemable preferred stock (1) ................................................. 0 11,039
Total liabilities .............................................................. 2,489,073 1,820,717
Redeemable preferred stock ..................................................... 12,458 0
Common stockholders' equity .................................................... 350,466 611,280
PER COMMON SHARE DATA:
Net income, after Preferred Stock dividend ..................................... 0.58 0.76
Diluted earnings per share ..................................................... 0.58 0.76
Book value (period average) .................................................... 19.50 15.09
Book value (period end) ........................................................ 20.19 15.53
COMMON SHARES OUTSTANDING:
Period average ................................................................. 17,343 39,353
Period end ..................................................................... 17,343 39,353
SELECTED FINANCIAL RATIOS:
PERFORMANCE RATIOS:
Return on average assets ....................................................... 1.46% 4.71%
Return on average stockholders' equity ......................................... 12.13% 20.20%
Net interest margin ............................................................ 1.73% 1.69%
Net interest spread ............................................................ 1.13% 1.11%
Total operating expenses to total average assets ............................... 0.65% 0.74%
ASSET QUALITY RATIOS:
Non-accruing loans and investments to total loan and investment portfolio ..... 26.66% 17.35%
Net charge offs to total loan and investment portfolio ......................... 0.29% 0.00%
Allowance for loan losses to total loans ....................................... 17.47% 9.46%
Allowance for loan losses to non-accruing loans ................................ 62.06% 50.37%
Allowance for losses on off-balance sheet credit risk to total
contingencies ................................................................ 5.05% 9.73%
CAPITAL RATIOS:
Common stockholders' equity to total assets .................................... 12.29% 25.13%
Tier 1 capital to risk-weighted assets ......................................... 18.16% 37.91%
Total capital to risk-weighted assets .......................................... 19.41% 39.16%
--------------------------------------------------------------------------------------------------------------------
(1) SFAS 150 regarding the inclusion of reedemable preferred stock as part of
the "other liability" line item was effective as of July 1, 2003.
CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES EXHIBIT IV
------------------------------------------------------------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED,
--------------------------------------------------------------------------------------------
March 31, 2003 December 31, 2003 March 31, 2004
----------------------------- ----------------------------- ----------------------------
AVERAGE AVG. AVERAGE AVG. AVERAGE AVG.
BALANCE INTEREST RATE BALANCE INTEREST RATE BALANCE INTEREST RATE
----------------------------- ----------------------------- ----------------------------
(In US$ thousands, except percentages)
INTEREST EARNING ASSETS
Interest-bearing deposits
with banks ........................ $531,334 $1,655 1.25% $301,941 $720 0.93% $268,117 $637 0.94%
Securities purchased under
agreements to resell .............. 132,022 681 2.06 132,022 624 1.85 132,022 617 1.85
Loans, net of discount .............. 1,720,598 16,734 3.89 1,556,705 12,096 3.04 1,797,936 11,326 2.49
Impaired loans ...................... 678,265 6,107 3.60 460,126 6,599 5.61 425,624 5,499 5.11
Investment securities ............... 158,475 2,662 6.72 90,135 1,484 6.44 77,513 1,429 7.30
TOTAL INTEREST EARNING ASSETS ....... $3,220,693 $27,840 3.46% $2,540,929 $21,522 3.31% $2,701,212 $19,508 2.86%
Non interest earning assets ......... $57,194 $59,504 $57,149
Allowance for loan losses ........... (422,924) (235,680) (217,696)
Other assets ........................ 21,532 8,768 8,453
TOTAL ASSETS ........................ $2,876,496 $2,373,521 $2,549,117
INTEREST BEARING LIABILITITES
Deposits ............................ $561,471 $2,001 1.43% $636,163 $1,915 1.18% $709,712 $2,093 1.17%
Short-term borrowings
and placements .................... 647,790 3,509 2.17 513,653 2,138 1.63 652,615 2,406 1.46
Medium and long-term borrowings
and placements .................... 1,210,421 8,559 2.83 536,080 3,834 2.80 476,810 3,504 2.91
Redeemable preferred stock (1) ...... 0 0 n.a. 10,405 13.75 10,885 6.64
366 183
TOTAL INTEREST BEARING LIABILITIES .. $2,419,682 $14,069 2.33% $1,696,301 $8,253 1.90% $1,850,023 $8,186 1.75%
Non interest bearing liabilities
and other liabilities ............. $105,885 $99,738 $105,177
TOTAL LIABILITIES ................... 2,525,567 1,796,038 1,955,200
REDEEMABLE PREFERRED STOCK (1) ...... 12,472 0 0
STOCKHOLDERS' EQUITY ................ 338,457 577,483 593,917
TOTAL LIABILITIES, REDEEMABLE
PREFERRED STOCK AND
STOCKHOLDERS' EQUITY ................ $2,876,496 $2,373,521 $2,549,117
NET INTEREST SPREAD ................. 1.13% 1.41% 1.11%
---- ---- ----
NET INTEREST INCOME AND NET
INTEREST MARGIN ................... $13,770 1.73% $13,270 2.07% $11,322 1.69%
------- ---- ------- ---- ------- ----
------------------------------------------------------------------------------------------------------------------------------------
(1) SFAS 150 regarding the inclusion of reedemable preferred stock as part of
the "other liability" line item was effective as of July 1, 2003.
CONSOLIDATED STATEMENT OF OPERATIONS EXHIBIT V
(In US$ thousands, except percentages & ratios)
-----------------------------------------------------------------------------------------------------------------------------------
FOR THE
FOR THE FOR THE THREE
YEAR FOR THE THREE MONTHS ENDED YEAR MONTHS
ENDED ENDED ENDED
DEC 31/02 MAR 31/03 JUN 30/03 SEP 30/03 DEC 31/03 DEC 31/03 MAR 31/04
-----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT DATA:
Interest income .................................... $165,800 $27,840 $26,265 $22,769 $21,522 $98,395 $19,508
Interest expense (1) ............................... (101,021) (14,069) (12,748) (9,339) (8,253) (44,408) (8,186)
--------- ------- ------- ------- ------- -------- -------
NET INTEREST INCOME ................................ 64,779 13,770 13,517 13,430 13,270 53,987 11,322
Provision for loan losses .......................... (272,586) 7,325 37,429 10,093 14,661 69,508 18,338
--------- ------- ------- ------- ------- -------- -------
NET INTEREST INCOME (LOSS) AFTER
PROVISION FOR LOAN LOSSES .......................... (207,807) 21,096 50,946 23,523 27,930 123,495 29,660
OTHER INCOME (EXPENSE):
Commission income, net (1) ......................... 8,886 2,430 1,835 1,782 1,400 7,446 1,674
Provision for losses on off-balance sheet
credit risk ...................................... (6,170) (7,642) 7,209 (5,043) (5,127) (10,603) 3,051
Derivatives and hedging activities ................. (341) (802) (320) (6,667) (199) (7,988) 113
Impairment loss on securities ...................... (44,268) (3) (875) (75) 0 (953) 0
Gain on early extinguishment of debt ............... 1,430 0 789 0 0 789 6
Gain on sale of securities available for sale ...... 184 0 13,351 8,860 0 22,211 0
Gain (loss) on foreign currency exchange ........... 301 (27) (534) 176 3 (382) (1)
Other income ....................................... 553 (91) 93 2 38 42 14
--------- ------- ------- ------- ------- -------- -------
NET OTHER INCOME (EXPENSE) ......................... (39,425) (6,135) 21,547 (965) (3,886) 10,562 4,858
TOTAL OPERATING EXPENSES ........................... (19,259) (4,585) (5,410) (4,755) (7,812) (22,561) (4,689)
INCOME (LOSS) FROM CONTINUING OPERATIONS, NET ...... (266,492) 10,376 67,084 17,803 16,233 111,496 29,830
DISCONTINUED OPERATIONS:
Loss from operations and disposal of
business segment ................................. (2,346) 0 0 0 0 0 0
--------- ------- ------- ------- ------- -------- -------
NET INCOME (LOSS) .................................. ($268,838) $10,376 $67,084 $17,803 $16,233 $111,496 $29,830
========= ======= ======= ======= ======= ======== =======
NET INCOME (LOSS) AVAILABLE FOR STOCKHOLDERS ....... ($269,850) $10,127 $66,899 $17,803 $16,233 $111,130 $29,830
-----------------------------------------------------------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
PER COMMON SHARE DATA
Net income (loss) after preferred stock dividend ... ($15.56) $0.58 $3.65 $0.45 $0.41 $3.88 $0.76
PERFORMANCE RATIOS
Return on average assets ........................... -6.47% 1.46% 9.79% 2.83% 2.71% 4.24% 4.71%
Return on average common stockholder's equity ...... -60.48% 12.13% 70.25% 12.65% 11.15% 23.91% 20.20%
Net interest margin ................................ 1.48% 1.73% 1.78% 1.96% 2.07% 1.87% 1.69%
Net interest spread ................................ 0.96% 1.13% 1.18% 1.31% 1.41% 1.23% 1.11%
Total operating expenses to average assets ......... 0.46% 0.65% 0.79% 0.76% 1.31% 0.86% 0.74%
-----------------------------------------------------------------------------------------------------------------------------------
(1) For 2002, commission expenses related to borrowings and placements were
re-classified from commission expense and other charges to interest
expense to conform with the presentation for 2003 in accordance with US
GAAP.
EXHIBIT VI
CREDIT PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ million)
-------------------------------------------------------------
-------------------------------------------------------------
(A) (B) (C)
31MAR03 31DEC03 31MAR04 (C) - (A) (C) - (B)
COUNTRY -------------------------------------------------------------
ARGENTINA ....................... $758 $435 $399 ($360) ($36)
BOLIVIA ......................... 12 0 0 (12) (0)
BRAZIL .......................... 1,141 1,154 1,074 (67) (80)
CHILE ........................... 70 133 137 67 4
COLOMBIA ........................ 71 123 81 9 (42)
COSTA RICA ...................... 37 75 51 14 (23)
DOMINICAN REPUBLIC .............. 242 37 25 (217) (11)
ECUADOR ......................... 97 87 77 (20) (10)
EL SALVADOR ..................... 9 31 34 25 3
GUATEMALA ....................... 30 36 36 5 (0)
HONDURAS ........................ 0 0 1 1 1
JAMAICA ......................... 22 25 22 (0) (3)
MEXICO .......................... 214 247 333 118 86
NICARAGUA ....................... 11 14 11 0 (3)
PANAMA .......................... 29 44 51 21 7
PARAGUAY ........................ 1 0 0 (1) 0
PERU ............................ 139 106 105 (34) (2)
TRINIDAD & TOBAGO ............... 91 100 86 (5) (14)
VENEZUELA ....................... 147 61 48 (99) (13)
OTHER (1) ....................... 160 139 139 (21) 0
------ ------ ------ ----- -----
TOTAL CREDIT PORTFOLIO (2) ....... $3,283 $2,847 $2,710 ($574) ($137)
UNEARNED INCOME (3) .............. ($7) ($4) ($3) $5 $2
------ ------ ------ ----- -----
TOTAL CREDIT PORTFOLIO,
NET OF UNEARNED INCOME ..... $3,276 $2,843 $2,707 ($569) ($136)
====== ====== ====== ===== =====
-----------------------------------------------------------------------------------------------------
(1) Includes: (i) securities purchased under agreements to resell with
Argentine counterparties of US$132 million at March 31, 2004, which were
fully collaterized with US Treasury securities, and which the Bank
classifies as US country risk; (ii) guarantees issued of US$7 million at
March 31, 2004 to a Multilateral Bank in Honduras with shareholder
composition of 16% in Guatemala, Costa Rica, El Salvador, Honduras,
Nicaragua, 11% in Taiwan, and 9% in Mexico; and (iii) a US$52 thousand
letter of credit confirmed for a bank in Spain.
(2) Includes book value of loans, fair value of investment securities,
securities purchased under agreements to resell, acceptances, and
contingencies including confirmed letters of credit, stand-by letters of
credit and guarantees covering commercial and country risks. Includes
credit commitments of US$39 million at March 31, 2004, which includes
US$16 million in Brazil and US$23 million in Mexico; US$56 million at
December 31, 2003, and US$112 million at March 31, 2003.
(3) Represents unearned income for loans.