Bladex’s Full-Year 2012 Net Income (*) totaled $93.0 million, or $2.46 per share, compared to $83.2 million, or $2.25 per share, in 2011. The $9.8 million, or 12%, increase reflected an improved core business in the Commercial Division ($96.3 million, +80% vs. 2011), partially offset by lower contributions from the Treasury Division and from discontinued operations in the Asset Management Unit, which is no longer reported as a separate Bladex business segment, pending completion of its divestiture.
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The Bank’s fourth quarter 2012 Net Income reached $24.6 million, or $0.64 per share, compared to $13.0 million, or $0.34 per share, in the previous quarter, and $24.8 million, or $0.67 per share in the fourth quarter 2011. The quarterly improvements of 89% and 1%, respectively, mainly reflected improving profitability in the Commercial Division (Net Income of $31.1 million, +31% vs. 3Q12, and +76% vs. 4Q11), partially offset by a fourth quarter 2012 $6.4 million Net Loss in the Treasury Division.
The Commercial Division’s portfolio balance grew 11% year-onyear, and 2% quarter-on-quarter, to $6.0 billion as of December 31, 2012. The average Commercial Loan portfolio increased 10% year-on-year, while the average Commercial Portfolio, mainly consisting of loans and contingencies, increased 8% to $5.4 billion in 2012 compared to $5.0 billion in 2011. Quarterly average balances reached $5.7 billion, up 7% from the previous quarter, and 5% compared to the fourth quarter 2011.
Credit disbursements increased 8% to $11.3 billion in 2012, the highest level in 15 years, compared to $10.5 billion disbursed in 2011. During the fourth quarter 2012, credit disbursements totaled $3.5 billion, an increase of 32% from the third quarter 2012, and 54% from the fourth quarter 2011. – The Bank’s credit quality continued to improve with no loan balances in non-accrual status as of December 31, 2012, compared to $24 million, or 0.4%, of the loan portfolio in nonaccrual status in the previous quarter, and $32.0 million, or 0.6%, of the loan portfolio, as of December 31, 2011. The ratio of the allowance for credit losses to the Commercial Portfolio ending balances was 1.3% as of December 31, 2012, compared to 1.5% as of September 30, 2012, and 1.8% as of December 31, 2011. – With the Bank´s long-standing approach to prudent and proactive liquidity management, liquid assets (8) totaled $690 million as of December 31, 2012, compared to $520 million as of September 30, 2012, and $786 million as of December 31, 2011. – Deposit balances remained at $2.3 billion as of December 31, 2012, nearly flat compared to the prior quarter, and a year ago. Short-term borrowings and securities sold under repurchase agreements ("Repos") reached $1.6 billion as of December 31, 2012, while borrowings and long-term debt amounted to $1.9 billion as of December 31, 2012, a $418 million, or 28%, yearon- year increase, as a result of inflows recorded in the first half 2012 from bond issuances and a loan syndication. – As of December 31, 2012, the Bank’s Tier 1 capital ratio was 17.9%, the same level as of September 30, 2012, and compared to 18.6% as of December 31, 2011. The Bank’s leverage as of these dates was 8.2x, 7.8x, and 8.4x, respectively. The Bank’s equity consists entirely of issued and fully paid ordinary common stock.
Mr. Rubens V. Amaral Jr., Bladex’s Chief Executive Officer, stated the following regarding the Bank’s Full-Year and Fourth Quarter 2012 results: "Bladex continued to leverage the Bank’s fundamental strengths, and reported strong results in 2012, notwithstanding an environment of heightened volatility and uncertainty, which resulted in generally more subdued growth in both Latin American and global economies. Within this challenging operating environment, Bladex focused on ensuring sustained growth with more clients in more markets, while gradually improving margins and risk profile through careful management of the Bank’s portfolio mix. Efforts were also directed towards diversifying the revenue base by establishing a dedicated cross-functional team composed of commercial relationship managers, product structuring experts and asset distribution managers to generate new fee revenue streams, providing structured transaction expertise tailored to Bladex’s clients´ needs. This has thus far resulted in a number of completed transactions, both small and large, which started to impact the Bank’s non-interest revenues, and laid the groundwork for a solid track-record moving forward. Bladex will continue the Bank’s commercial focus and efforts in 2013 along these lines, encouraged by the Region’s solid growth prospects. Furthermore, Bladex made the decision to focus the Bank’s activities entirely on Bladex’s core business. In this respect, Bladex’s asset management activities, while highly profitable from a trading results standpoint, have not produced the desired fee revenue stream that was envisioned. The decision to divest the Asset Management Unit was made after a thorough review of all available options. Bladex firmly believes this resolution achieves a gradual, but definitive and orderly exit from non-core, more volatile revenue streams, while allowing the unit to prosper under new stewardship, to Bladex´s benefit." Mr. Amaral concluded.
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