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FOREIGN TRADE BANK OF LATIN AMERICA, INC.

Foreign Filer Report Oct 14, 2008

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6-K 1 v128598_6k.htm

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

P.O. Box 0819-08730

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 o

(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 o 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.

October 10, 2008

| Banco
Latinoamericano de Exportaciones,
S.A. |
| --- |
| By: /s/
Pedro Toll |
| Name:
Pedro Toll |
| Title:
Deputy Manager |

BLADEX REPORTS THIRD QUARTER NET INCOME OF $14.0 MILLION, VERSUS

$14.8 MILLION IN THE THIRD QUARTER 2007

YEAR TO DATE NET INCOME WAS $59.4 MILLION,

$2.8 MILLION HIGHER THAN THE SAME PERIOD 2007

YEAR TO DATE “ROE” OF 12.6%, UNCHANGED FROM THE SAME PERIOD LAST YEAR

Panama City, Republic of Panama, October 8, 2008 - Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”) announced today its results for the third quarter ended September 30, 2008.

Third Quarter’s Results were driven by:

  • Commercial Division’s net operating income (1) for the quarter was $16.7 million, representing a 29% increase compared to the second quarter 2008, and an increase of 55% compared to the third quarter 2007.

  • Although the year to date return of Bladex’s investment in our Asset Management Division was 11.6%, its net operating loss for the third quarter was $2.2 million, a decrease of $12.3 million when compared to the second quarter 2008, and a decrease of $5.9 million compared to the third quarter 2007.

  • Treasury Division’s net operating loss was $0.7 million, compared to a $3.0 million gain in the second quarter 2008, and compared to a $0.8 million gain in the third quarter 2007, due to the carry cost of strong liquidity and the absence of gains on the sale of securities during the third quarter 2008.

  • The combined effect of these factors was a net income for the third quarter of $14.0 million, a decline of $12.3 million compared to the second quarter 2008, and compared to the third quarter 2007, net income decreased by $0.8 million.

  • As of September 30, 2008, the Bank had no credits in non-accrual or past due status.

  • As of September 30, 2008, liquidity (2) stood at $469 million, representing an increase of $96 million, or 26% from the previous quarter. Tier 1 capital ratio stood at 18.4%, compared to 19.0% in the prior quarter.

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the quarter’s results: “Bladex’s performance during the third quarter reflected business conducted in an environment that was tougher than usual, but for which the Bank was well prepared.

Most importantly, during the third quarter 2008, the Commercial Division performed at record levels. As strong as the Commercial Division’s performance was, however, it could not fully offset the impact of diminished performance in the Asset Management Division.

On a year to date basis, Bladex remains ahead of its results for 2007, which validates the benefits of its diversified business model.

Under current market conditions, liquidity management, always one of our strengths, has become paramount. Starting in August, 2007, we established stringent guidelines in anticipation of a deteriorating market. The placement of a $245 million oversubscribed syndicated term loan facility on August 8 th , 2008, was part of the plan we put in effect. Once conditions deteriorated starting in mid September, we slowed our portfolio growth to quickly build a comfortable $469 million liquidity position, none of which is deposited in any of the institutions that have gone bankrupt in recent weeks.

Asset quality, which Bladex has been monitoring with special care ever since a slowdown in the U.S. economy became a possibility, remains solid. While Bladex has noted some pressure developing on the absolute levels of EBITDA in some industries as commodity prices come off their record levels, debt coverage ratios remain sound.

As we have stated before, Bladex does not own, nor has it ever owned, any of the asset classes that have come to be generally known as "toxic debt" in the industry.

As of the end of the third quarter, Bladex Asset Management had invested 99.9% of its funds under management in U.S. treasuries. Bladex’s share of trading losses (3) incurred during the quarter was $1.1 million, not an inconsequential amount, but a relatively modest one in the context of the $15.5 million trading gains (3) realized year to date.

Regarding other indicators, expenses during the quarter decreased $1.5 million, or 13%, loan loss reserve coverage strengthened to 2%, and Tier 1 capitalization stood at a strong 18.4%.

This was a quarter where Bladex’s strengths in terms of its sound strategy, effective business model, skilled and experienced management, and a strong brand came to the forefront. It was also a period during which Bladex’s ability to support Latin America’s trade flows in times of market stress once again proved Bladex’s strategic importance to companies, governments, and people in our Region."

RESULTS BY BUSINESS SEGMENT

The Commercial Division incorporates the Bank’s financial intermediation and fee generation activities. Net operating income includes net interest income from loans, fee income, and net allocated operating expenses.

(US$million) 3Q07
Commercial
Division:
Net
interest income on lending spreads (4) $ 8.4 $ 13.5 $ 15.9
Net
interest income on allocated capital (5) 7.9 5.4 4.9
Net
Interest Income $ 16.2 $ 18.9 $ 20.7
Non-interest
operating income (6) 1.1 1.9 2.7
Net
operating revenues (7) $ 17.4 $ 20.8 $ 23.4
Operating
expenses (6.6 ) (7.9 ) (6.7 )
Net
Operating Income $ 10.8 $ 12.9 $ 16.7

2

Net operating income for the third quarter 2008 reached $16.7 million, representing an increase of 29%, compared to the second quarter 2008, and an increase of 55% from the third quarter 2007. With respect to the previous quarter, weighted average lending spreads (8) increased 21 bps (14%). Weighted average lending spreads on new disbursements during the quarter were 2.07%, a 14 bps, or 7%, increase with respect to the previous quarter.

The following graph illustrates the trend in quarterly lending spreads:

The average commercial portfolio grew 2% during the third quarter, and 11% during the last year. The combination of wider spreads and increased volumes resulted in a $2.4 million, or 18%, growth in net interest income on lending spreads. These increases were partially offset by $0.5 million in lower yields on allocated capital, due to lower average market interest rates during the quarter.

End of period commercial portfolio balances decreased 6% with respect to June 30, 2008, as the Bank slowed its lending activities in response to rising levels of uncertainty. The same trend was observed in credit disbursements during the quarter, which amounted to $1.5 billion, 23% lower than the previous quarter. (Please refer to Exhibit XII for the Bank’s distribution of credit disbursements by country.)

3

The commercial portfolio includes loans, letters of credit, country risk guarantees and loan commitments pertaining to the Bank’s traditional intermediation activities. See Exhibit X for information related to the Bank’s commercial portfolio distribution by country.

The commercial portfolio continues to be short-term and trade-related in nature, with 70%, or $2,981 million, maturing within one year, of which 52%, or $1,563 million, mature before December 31, 2008. 63% of the commercial portfolio represents trade financing operations.

As of September 30, 2008, the Bank had no credits in non-accruing or past-due status.

4

The Treasury Division incorporates the Bank’s investment securities activities. Net operating income is presented net of allocated operating expenses, and includes net interest income on investment securities, and net gains on sales of securities available for sale.

(US$million) 3Q07
Treasury
Division:
Net
interest income $ 1.7 $ 2.1 $ 1.7
Non-interest
operating income (loss) (6) 0.0 $ 2.7 $ (0.8 )
Net
operating revenues (7) $ 1.7 $ 4.7 $ 0.9
Operating
expenses (0.9 ) (1.8 ) (1.6 )
Net
Operating Income (Loss) $ 0.8 $ 3.0 $ (0.7 )

Net operating loss for the quarter totaled $0.7 million, compared to a net operating income of $3.0 million in the second quarter 2008 and $0.8 million in the third quarter 2007, decreases of $3.7 million and $1.5 million, respectively. These variations reflect mostly the absence and lower levels of gains on sales of securities.

The quarter-end portfolio of securities available for sale totaled $774 million, representing an increase of 5% from June 30, 2008. As of September 30, 2008, the securities portfolio represented 15% of the Bank’s total credit portfolio, and consisted of Latin American securities, 82% of which were sovereign and state owned risk in nature (please refer to Exhibit XI for a per country distribution of the investment securities in the available for sale portfolio).

In the available for sale portfolio, and in order to hedge the instruments’ interest rate risk, the Bank enters into interest rate swap agreements to convert them from fixed interest to floating rate instruments. The available for sale portfolio is marked to market and the impact is recorded in stockholders’ equity through the other comprehensive income account (please refer to Exhibit I). For the third quarter 2008, the impact resulted in a $38 million decrease in stockholders’ equity, equivalent to 1.1% of the Bank’s Tier 1 Capital ratio.

As of September 30, 2008, deposit balances totaled $1,551 million, a $185 million (11%) decrease compared to the previous quarter, and $103 million (7%) higher than the figures as of the third quarter 2007.

5

The Asset Management Division incorporates the Bank’s asset management activities. Net operating income is presented net of allocated operating expenses, and includes net interest income on trading assets, as well as trading gains and net gains (losses) on investment fund and other related income (loss).

(US$million) 3Q07 2Q08 3Q08
Asset
Management Division:
Net
interest income $ (0.3 ) $ (0.8 ) $ (1.1 )
Non-interest
operating income (loss) (6) 5.1 11.7 (0.3 )
Net
operating revenues (7) $ 4.8 $ 10.8 $ (1.4 )
Operating
expenses (1.1 ) (0.8 ) (0.8 )
Net
Operating Income (Loss) $ 3.7 $ 10.1 $ (2.2 )

Net operating loss in the third quarter 2008 totaled $2.2 million, compared to a net operating income of $10.1 million in the second quarter 2008 and $3.7 million in the third quarter 2007, decreases of $12.3 million and $5.9 million, respectively. Both decreases were driven by trading losses and net losses related to the investment fund totaling $1.1 million during the third quarter 2008.

As of September 30, 2008, the investment fund balance totaled $143 million, compared to $144 million as of June 30, 2008.

The investment fund is managed by the Asset Management Division and follows a Latin America macro strategy, utilizing a combination of products (Foreign Exchange, Equity Indices, Interest Rate Swaps, and Credit) to establish long and short positions in Latin America markets. Capital preservation is an objective of the fund, and as of September 30, 2008, 99.9% of the fund's assets were temporarily invested in U.S. Treasuries.

The year to date returns of Bladex’s investment in the fund was 11.6% based on the beginning of the year net asset value (“NAV”). During the last twelve months, the total return has amounted to 12.2% of NAV.

6

CONSOLIDATED RESULTS OF OPERATIONS

KEY FINANCIAL FIGURES AND RATIOS

| (US$
million, except percentages and per share amounts) | 3Q07 | 2Q08 | 3Q08 | |
| --- | --- | --- | --- | --- |
| Net
Interest Income | $ 17.6 | $ 20.1 | $ 21.3 | |
| Net
Operating Income (Loss) by Business Segment: | | | | |
| Commercial
Division | $ 10.8 | $ 12.9 | $ 16.7 | |
| Treasury
Division | $ 0.8 | $ 3.0 | $ (0.7 | ) |
| Asset
Management Division | $ 3.7 | $ 10.1 | $ (2.2 | ) |
| Net
Operating Income | $ 15.2 | $ 25.9 | $ 13.8 | |
| Net
Income | $ 14.8 | $ 26.3 | $ 14.0 | |
| Net
Income per Share (9) | $ 0.41 | $ 0.72 | $ 0.38 | |
| Book
Value per common share (period end) | $ 16.89 | $ 17.74 | $ 16.87 | |
| Return
on Average Equity (“ROE”) | 9.6 % | 16.7 % | 8.6 | % |
| Operating
Return on Average Equity ("Operating ROE") (10) | 9.9 % | 16.5 % | 8.5 | % |
| Return
on Average Assets (“ROA”) | 1.4 % | 2.0 % | 1.0 | % |
| Net
Interest Margin | 1.65 % | 1.56 % | 1.62 | % |
| Tier
1 Capital (11) | $ 614 | $ 645 | $ 614 | |
| Total
Capital (12) | $ 650 | $ 688 | $ 656 | |
| Risk-Weighted
Assets | $ 2,850 | $ 3,392 | $ 3,341 | |
| Tier
1 Capital Ratio (11) | 21.6 % | 19.0 % | 18.4 | % |
| Total
Capital Ratio (12) | 22.8 % | 20.3 % | 19.6 | % |
| Stockholders’
Equity to Total Assets | 13.8 % | 11.9 % | 11.5 | % |
| Liquid
Assets / Total Assets (2) | 7.3 % | 6.9 % | 8.8 | % |
| Liquid
Assets / Total Deposits | 22.3 % | 21.5 % | 30.2 | % |
| Non-Accruing
Loans to Total Loans, net | 0.0 % | 0.0 % | 0.0 | % |
| Allowance
for Loan Losses to Total Loan Portfolio | 2.1 % | 1.7 % | 1.8 | % |
| Allowance
for Losses on Off-Balance Sheet Credit Risk to Total
Contingencies | 2.0 % | 4.0 % | 4.5 | % |
| Total
Assets | $ 4,454 | $ 5,407 | $ 5,345 | |

7

The following graphs illustrate Net Operating Income and the Return on Average Stockholders’ Equity trends from 2005 through 2008:

8

NET INTEREST INCOME AND MARGINS

| (In
US$million, except percentages) | 3Q07 | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| Net
Interest Income | | | | | | |
| Commercial
Division | $ 16.2 | $ | 18.9 | $ | 20.7 | |
| Treasury
Division | 1.7 | | 2.1 | | 1.7 | |
| Asset
Management Division | (0.3 | ) | (0.8 | ) | (1.1 | ) |
| Consolidated | $ 17.6 | $ | 20.1 | $ | 21.3 | |
| Net
Interest Margin* | 1.65 | % | 1.56 | % | 1.62 | % |

  • Net interest income divided by average balance of interest-earning assets.

Net interest income during the third quarter 2008 reached $21.3 million, an increase of 6% compared to the previous quarter, driven by wider lending spreads, partially offset by a lower yield on the Bank’s available capital.

The $3.7 million, or 21%, increase in net interest income compared to the third quarter 2007, reflects mostly an increased average loan portfolio and higher lending spreads, partly offset by a lower yield on the Bank’s available capital.

FEES AND COMMISSIONS

(US$million) 3Q07 2Q08 3Q08
Letters
of credit $ 0.6 $ 1.2 $ 1.7
Guarantees 0.3 0.3 0.2
Loans 0.2 0.2 0.1
Other
Management
fees 0.0 0.4 0.7
Other* 0.1 0.2 0.2
Fees
and Commissions, net $ 1.2 $ 2.4 $ 3.0
  • Net of commission expenses

Fees and commissions in the third quarter 2008 increased 23%, or $0.5 million, compared to the previous quarter, and 153%, or $1.8 million, from a year ago, mostly due to increased commission income from letters of credit and management fees related to the Asset Management Division.

9

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

| (In
US$million) | 30-Sep-07 | | | | | 30-Jun-08 | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Allowance
for Loan Losses: | | | | | | | | | |
| Balance
at beginning of the period | $ 69.0 | $ | 72.6 | $ | 69.6 | $ 69.9 | $ | 69.8 | |
| Provisions
(reversals) | 3.4 | | (3.0 | ) | 0.0 | (3.2 | ) | (0.8 | ) |
| Recoveries | 0.3 | | 0.0 | | 0.2 | 3.1 | | 0.2 | |
| End
of period balance | $ 72.6 | $ | 69.6 | $ | 69.9 | $ 69.8 | $ | 69.1 | |
| Reserve
for Losses on Off-balance Sheet Credit Risk: | | | | | | | | | |
| Balance
at beginning of the period | $ 13.5 | $ | 10.5 | $ | 13.7 | $ 13.7 | $ | 16.2 | |
| Provisions
(reversals) | (3.0 | ) | 3.2 | | 0.0 | 2.5 | | 0.7 | |
| End
of period balance | $ 10.5 | $ | 13.7 | $ | 13.7 | $ 16.2 | $ | 16.9 | |
| Total
Allowance for Credit Losses | $ 83.1 | $ | 83.4 | $ | 83.6 | $ 86.0 | $ | 86.0 | |

The allowance for credit losses amounted $86.0 million. The ratio of the allowance for credit losses to the commercial portfolio was 2.0%, compared to 1.9% as of June 30, 2008.

OPERATING EXPENSES AND EFFICIENCY LEVEL

(US$million) 3Q07 2Q08 3Q08
Salaries
and other employee expenses $ 4.9 $ 5.0 $ 5.2
Depreciation,
amortization and impairment 0.6 1.6 0.7
Professional
services 0.6 1.2 0.6
Maintenance
and repairs 0.2 0.4 0.3
Other
operating expenses 2.3 2.2 2.2
Total
Operating Expenses $ 8.7 $ 10.5 $ 9.0

The Bank’s efficiency ratio (13) was 40% in the third quarter 2008, compared to 29% in the second quarter 2008 and 36% in the third quarter 2007. The quarterly variation was the result of lower trading gains and net gains on investment fund. The year to date efficiency ratio was 33%, compared to 32% during the same period 2007.

Total operating expenses for the third quarter 2008 were $9.0 million, a decrease of $1.5 million, comprised of a $0.5 million decrease in quarterly operating expenses, and the impact of a one-time write-off of $1.0 million related to an information technology application during the second quarter 2008.

10

OTHER EVENTS

§ Two-year syndicated term loan facility: On August 11, 2008, the Bank announced the closing of a two-year syndicated term loan facility, jointly lead-arranged by Santander Investment Securities and Standard Chartered Bank. The $150 million facility was substantially oversubscribed, closing with $245 million in total commitments among thirteen participating banks.

§ During the third quarter, the Bank brought to an end its strategic agreement with FIMBank, choosing to pursue the deployment of the factoring business on its own.

Note: Various numbers and percentages set forth in this press release have been rounded and, accordingly, may not total exactly.

Footnotes:

(1) Net Operating Income (Loss) refers to net interest income plus non-interest operating income, minus operating expenses.

(2) Liquidity ratio refers to liquid assets as a percentage of total assets. Liquid assets consist of investment-grade ‘A’ securities, and cash and due from banks, excluding pledged deposits and cash balances in the Asset Management Division.

(3) Includes trading gains (losses) and net gains (losses) on investment fund.

(4) Net interest income on lending spreads refers to interest income on weighted average net lending spreads of average loan portfolio, plus loan commissions.

(5) Net interest income on allocated capital is calculated based on capital assigned to support the loan portfolio.

(6) Non-interest operating income (loss) refers to net other income (expense) excluding reversals (provisions) for credit losses and recoveries (impairment) on assets. By business segment, non-interest operating income includes: Commercial Division: Net fees and commissions and Net related other income (expense). Treasury Division: net gains on sale of securities available for sale, impact of derivative hedging instruments, and gain (losses) on foreign currency exchange. Asset Management Division: Net trading gains, net gains (losses) on investment fund and related other income (expense).

(7) Net Operating Revenue refers to net interest income plus non-interest operating income.

(8) Lending spreads are calculated as loan portfolio weighted average lending spread divided by weighted average Libor-based cost rate, excluding loan commissions.

(9) Net Income per Share calculations are based on the average number of shares outstanding during each period.

(10) Operating ROE: Annualized net operating income divided by average stockholders’ equity.

(11) Tier 1 Capital is equivalent to stockholders’ equity. Tier 1 Capital ratio is calculated as a percentage of risk weighted assets. In turn, risk-weighted assets are calculated based on US Federal Reserve Board and Basel I capital adequacy guidelines.

(12) Total Capital refers to total stockholders’ equity plus Tier 2 Capital based on US Federal Reserve Board and Basel I capital adequacy guidelines. Total Capital ratio refers to Total Capital as a percentage of risk weighted assets.

(13) Efficiency ratio refers to consolidated operating expenses as a percentage of net operating revenues. Excluding the Asset Management Division’s net revenues and expenses, the efficiency ratio was 34%, 38% and 39% for third quarter 2008, second quarter 2008, and third quarter 2007, respectively.

11

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 income and return on equity in future periods, including income derived from the Treasury Division and Asset Management Division, 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 improving 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 credit losses; the need for additional provisions for 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 large deposit withdrawals.

About Bladex

Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to support trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through September 30, 2008, Bladex had disbursed accumulated credits of over $157 billion.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Thursday, October 9, 2008, 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 web cast of the conference at www.bladex.com .

12

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through December 9, 2008. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The Conference ID# for the replayed call is 56208326.

For more information, please access www.bladex.com or contact:

Mr. Jaime Celorio

Chief Financial Officer

Bladex

Calle 50 y Aquilino de la Guardia

P.O. Box: 0819-08730

Panama City, Panama

Tel: (507) 210-8563

Fax: (507) 269-6333

E-mail address: [email protected]

Investor Relations Firm:

i-advize Corporate Communications, Inc.

Mrs. Melanie Carpenter / Mr. Peter Majeski

82 Wall Street, Suite 805

New York, NY 10005

Tel: (212) 406-3690

E-mail address: [email protected]

13

EXHIBIT I

CONSOLIDATED BALANCE SHEETS

AT THE END OF,
(A) (B) (C) (C) - (B) (C) - (A)
Sep. 30, 2007 Jun. 30, 2008 Sep. 30, 2008 CHANGE % CHANGE %
(In US$ million)
ASSETS:
Cash
and due from banks $ 441 $ 349 $ 445 $ 96 28 % $ 4 1 %
Trading
assets 50 0 0 0 n.m. (*) (50 ) (100 )
Securities
available for sale 469 737 774 37 5 305 65
Securities
held to maturity 0 29 29 (0 ) (1 ) 29 n.m. (*)
Investment
fund 0 144 143 (1 ) (1 ) 143 n.m. (*)
Loans 3,495 4,105 3,868 (236 ) (6 ) 374 11
Less:
Allowance
for loan losses (73 ) (70 ) (69 ) 1 (1 ) 4 (5 )
Unearned
income and deferred loan fees (6 ) (6 ) (6 ) 0 (5 ) (0 ) 6
Loans,
net 3,416 4,029 3,793 (235 ) (6 ) 377 11
Customers'
liabilities under acceptances 4 31 90 59 188 87 n.m. (*)
Premises
and equipment, net 10 8 8 (0 ) (1 ) (2 ) (19 )
Accrued
interest receivable 53 59 53 (6 ) (11 ) (0 ) (0 )
Other
assets 11 21 10 (11 ) (55 ) (2 ) (15 )
TOTAL
ASSETS $ 4,454 $ 5,407 $ 5,345 $ (62 ) (1 )% $ 891 20 %
LIABILITIES
AND STOCKHOLDERS' EQUITY:
Deposits:
Demand $ 93 $ 104 $ 96 $ (8 ) (8 )% $ 2 3 %
Time 1,355 1,633 1,455 (177 ) (11 ) 100 7
Total
Deposits 1,448 1,736 1,551 (185 ) (11 ) 103 7
Trading
liabilities 11 0 0 0 n.m. (*) (11 ) n.m. (*)
Securities
sold under repurchase agreements 364 458 652 193 42 288 79
Short-term
borrowings 966 1,230 1,022 (209 ) (17 ) 55 6
Long-term
debt and borrowings 937 1,202 1,296 94 8 359 38
Acceptances
outstanding 4 31 90 59 188 87 n.m. (*)
Accrued
interest payable 38 43 36 (7 ) (16 ) (2 ) (5 )
Reserve
for losses on off-balance sheet credit risk 10 16 17 1 4 6 61
Other
liabilities 61 44 66 22 49 6 9
TOTAL
LIABILITIES $ 3,839 $ 4,762 $ 4,731 $ (31 ) (1 )% $ 891 23 %
STOCKHOLDERS'
EQUITY:
Common
stock, no par value, assigned value of US$6.67 280 280 280 0 0 0 0
Additional
paid-in capital in exces of assigned value 135 136 135 (1 ) (0 ) (0 ) (0 )
Capital
reserves 95 95 95 0 0 0 0
Retained
earnings 238 274 281 7 3 43 18
Accumulated
other comprehensive income (loss) (0 ) (6 ) (44 ) (38 ) 667 (44 ) n.m. (*)
Treasury
stock (134 ) (134 ) (133 ) 1 (1 ) 1 (1 )
TOTAL
STOCKHOLDERS' EQUITY $ 614 $ 645 $ 614 $ (31 ) (5 )% $ (0 ) (0 )%
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,454 $ 5,407 $ 5,345 $ (62 ) (1 )% $ 891 20 %

(*) "n.m." means not meaningful.

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED
(A) (B) (C) (C) - (B) (C)
- (A)
Sep. 30, 2007 Jun. 30, 2008 Sep. 30, 2008 CHANGE % CHANGE %
(In US$ thousand, except per share amounts and ratios)
INCOME
STATEMENT DATA:
Interest
income $ 68,641 $ 60,629 $ 62,757 $ 2,128 4 % $ (5,885 ) (9 )%
Interest
expense (51,020 ) (40,513 ) (41,452 ) (939 ) 2 9,568 (19 )
NET
INTEREST INCOME 17,622 20,116 21,305 1,189 6 3,683 21
Reversal
(provision) for loan losses (3,384 ) 3,204 842 (2,362 ) (74 ) 4,226 (125 )
NET
INTEREST INCOME AFTER REVERSAL (PROVISION)
FOR
LOAN LOSSES 14,237 23,319 22,147 (1,173 ) (5 ) 7,909 56
OTHER
INCOME (EXPENSE):
Reversal
(provision) for losses on off-balance sheet credit risk 2,964 (2,513 ) (654 ) 1,860 (74 ) (3,617 ) (122 )
Fees
and commissions, net 1,173 2,421 2,966 546 23 1,793 153
Activities
of hedging derivatives instruments (294 ) (27 ) 41 68 (255 ) 335 (114 )
Impairment
on assets 0 (339 ) 0 339 (100 ) 0 n.m. (*)
Trading
gains (losses) 5,104 216 (23 ) (239 ) (110 ) (5,126 ) (100 )
Net
gains on sale of securities available for sale 288 2,095 0 (2,095 ) (100 ) (288 ) (100 )
Net
gains (losses) on investment fund 0 10,960 (1,036 ) (11,996 ) (109 ) (1,036 ) n.m. (*)
Gain
(loss) on foreign currency exchange (9 ) 554 (895 ) (1,449 ) (262 ) (885 ) 9,341
Other
income, net 17 30 470 440 1,483 453 2,682
NET
OTHER INCOME 9,242 13,396 871 (12,525 ) (93 ) (8,371 ) (91 )
OPERATING
EXPENSES:
Salaries
and other employee expenses (4,865 ) (4,970 ) (5,247 ) (277 ) 6 (382 ) 8
Depreciation,
amortization and impairment (621 ) (1,648 ) (724 ) 924 (56 ) (103 ) 17
Professional
services (593 ) (1,241 ) (584 ) 657 (53 ) 9 (1 )
Maintenance
and repairs (249 ) (365 ) (340 ) 25 (7 ) (91 ) 37
Other
operating expenses (2,326 ) (2,228 ) (2,155 ) 73 (3 ) 170 (7 )
TOTAL
OPERATING EXPENSES (8,652 ) (10,452 ) (9,050 ) 1,402 (13 ) (397 ) 5
NET
INCOME $ 14,827 $ 26,264 $ 13,968 $ (12,296 ) (47 )% $ (859 ) (6 )%
PER
COMMON SHARE DATA:
Net
income per share 0.41 0.72 0.38
Diluted
earnings per share 0.40 0.72 0.38
Average
basic shares 36,363 36,370 36,396
Average
diluted shares 37,076 36,423 36,449
PERFORMANCE
RATIOS:
Return
on average assets 1.4 % 2.0 % 1.0 %
Return
on average stockholders' equity 9.6 % 16.7 % 8.6 %
Net
interest margin 1.65 % 1.56 % 1.62 %
Net
interest spread 0.73 % 1.09 % 1.20 %
Operating
expenses to total average assets 0.80 % 0.80 % 0.66 %

(*) "n.m." means not meaningful.

SUMMARY OF CONSOLIDATED FINANCIAL DATA

(Consolidated Statements of Income, Balance Sheets, and Selected Financial Ratios)

EXHIBIT III

FOR THE NINE MONTHS ENDED SEPTEMBER 30, — 2007 2008
(In US$ thousand, except per share amounts & ratios)
INCOME
STATEMENT DATA:
Net
interest income $ 51,443 $ 62,538
Fees
and commissions, net 3,973 7,186
Reversal
of provision for loan and off-balance sheet credit losses,
net 1,730 878
Activities
of hedging derivatives instruments (777 ) (37 )
Impairment
on assets (500 ) (339 )
Trading
gains 20,389 5,543
Net
gains on sale of securities available for sale 6,894 2,095
Net
gains on investment fund 0 9,924
Loss
on foreign currency exchange (65 ) (157 )
Other
income net 58 540
Operating
expenses (26,500 ) (28,738 )
NET
INCOME $ 56,644 $ 59,434
BALANCE
SHEET DATA (In US$ millions):
Investment
securities and trading assets 519 802
Investment
fund 0 143
Loans,
net 3,416 3,793
Total
assets 4,454 5,345
Deposits 1,448 1,551
Trading
liabilities 11 0
Securities
sold under repurchase agreements 364 652
Short-term
borrowings 966 1,022
Long-term
debt and borrowings 937 1,296
Total
liabilities 3,839 4,731
Stockholders'
equity 614 614
PER
COMMON SHARE DATA:
Net
income per share 1.56 1.63
Diluted
earnings per share 1.53 1.63
Book
value (period average) 16.54 17.30
Book
value (period end) 16.89 16.87
(In
thousand):
Average
basic shares 36,343 36,379
Average
diluted shares 37,043 36,432
Basic
shares period end 36,370 36,413
SELECTED
FINANCIAL RATIOS:
PERFORMANCE
RATIOS:
Return
on average assets 1.9 % 1.5 %
Return
on average stockholders' equity 12.6 % 12.6 %
Net
interest margin 1.72 % 1.65 %
Net
interest spread 0.79 % 1.15 %
Operating
expenses to total average assets 0.87 % 0.74 %
ASSET
QUALITY RATIOS:
Non-accruing
loans to total loans, net of discounts (1) 0.0 % 0.0 %
Charge
offs net of recoveries to total loan portfolio (1) -0.2 % -0.1 %
Allowance
for loan losses to total loan portfolio (1) 2.1 % 1.8 %
Allowance
for losses on off-balance sheet credit risk to total
contingencies 2.0 % 4.5 %
CAPITAL
RATIOS:
Stockholders'
equity to total assets 13.8 % 11.5 %
Tier
1 capital to risk-weighted assets 21.6 % 18.4 %
Total
capital to risk-weighted assets 22.8 % 19.6 %

(1) Loan portfolio is presented net of unearned income and deferred loan fees.

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
2007 2008 CHANGE %
(In
US$ thousand)
INCOME
STATEMENT DATA:
Interest
income $ 192,877 $ 191,236 $ (1,641 ) (1 )%
Interest
expense (141,434 ) (128,698 ) 12,737 (9 )
NET
INTEREST INCOME 51,443 62,538 11,095 22
Reversal
(provision) for loan losses (14,974 ) 4,045 19,019 (127 )
NET
INTEREST INCOME AFTER REVERSAL (PROVISION)
FOR
LOAN LOSSES 36,470 66,584 30,114 83
OTHER
INCOME (EXPENSE):
Reversal
(provision) for losses on off-balance sheet credit risk 16,703 (3,167 ) (19,870 ) (119 )
Fees
and commissions, net 3,973 7,186 3,213 81
Derivatives
and hedging activities (777 ) (37 ) 740 (95 )
Impairment
on assets (500 ) (339 ) 161 (32 )
Trading
gains 20,389 5,543 (14,846 ) (73 )
Net
gains on sale of securities available for sale 6,894 2,095 (4,799 ) (70 )
Net
gains on investment fund 0 9,924 9,924 n.m. (*)
Loss
on foreign currency exchange (65 ) (157 ) (92 ) 141
Other
income net 58 540 482 834
NET
OTHER INCOME 46,674 21,589 (25,085 ) (54 )
OPERATING
EXPENSES:
Salaries
and other employee expenses (15,362 ) (15,746 ) (384 ) 3
Depreciation,
amortization and impairment (1,887 ) (3,053 ) (1,166 ) 62
Professional
services (2,556 ) (2,563 ) (7 ) 0
Maintenance
and repairs (818 ) (1,005 ) (187 ) 23
Other
operating expenses (5,877 ) (6,371 ) (494 ) 8
TOTAL
OPERATING EXPENSES (26,500 ) (28,738 ) (2,238 ) 8
NET
INCOME $ 56,644 $ 59,434 $ 2,791 5 %

(*) "n.m." means not meaningful.

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

FOR THE THREE MONTHS ENDED,
September 30, 2007 June 30, 2008 September 30, 2008
AVERAGE AVG. AVERAGE AVG. AVERAGE AVG.
BALANCE INTEREST RATE BALANCE INTEREST RATE BALANCE INTEREST RATE
(In US$ million)
INTEREST
EARNING ASSETS
Interest-bearing
deposits with banks $ 372 $ 5.0 5.24 % $ 382 $ 2.1 2.20 % $ 394 $ 2.1 2.08 %
Loans,
net of unearned income & deferred loan fees 3,433 57.4 6.54 3,966 49.7 4.96 4,021 51.7 5.03
Trading
assets 68 0.7 4.15 42 0.0 0.08 (0 ) 0.0 0.00
Investment
securities 353 5.6 6.18 783 8.8 4.45 821 9.0 4.27
TOTAL
INTEREST EARNING ASSETS $ 4,226 $ 68.6 6.36 % $ 5,172 $ 60.6 4.64 % $ 5,236 $ 62.8 4.69 %
Investment
in fund 0 42 144
Non
interest earning assets 83 80 91
Allowance
for loan losses (69 ) (70 ) (70 )
Other
assets 64 41 18
TOTAL
ASSETS $ 4,304 $ 5,265 $ 5,418
INTEREST
BEARING LIABILITITES
Deposits $ 1,416 $ 19.4 5.36 % $ 1,601 $ 11.7 2.88 % $ 1,677 $ 10.9 2.54 %
Trading
liabilities 44 0.9 7.99 12 0.1 2.62 0 0.0 0.00
Securities
sold under repurchase agreement and
short-term
borrowings 1,211 17.0 5.50 1,697 16.0 3.73 1,692 16.1 3.73
Long-term
debt and borrowings 879 13.7 6.10 1,209 12.8 4.18 1,277 14.5 4.43
TOTAL
INTEREST BEARING LIABILITIES $ 3,550 $ 51.0 5.62 % $ 4,519 $ 40.5 3.55 % $ 4,647 $ 41.5 3.49 %
Non
interest bearing liabilities and other liabilities $ 142 $ 115 $ 128
TOTAL
LIABILITIES 3,692 4,635 4,775
STOCKHOLDERS'
EQUITY 612 631 644
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY. $ 4,304 $ 5,265 $ 5,418
NET
INTEREST SPREAD 0.73 % 1.09 % 1.20 %
NET
INTEREST INCOME AND NET
INTEREST
MARGIN $ 17.6 1.65 % $ 20.1 1.56 % $ 21.3 1.62 %

(*) "n.m." means not meaningful.

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

FOR THE NINE MONTHS ENDED,
September 30, 2007 September 30, 2008
AVERAGE AVG. AVERAGE AVG.
BALANCE INTEREST RATE BALANCE INTEREST RATE
(In US$ million)
INTEREST
EARNING ASSETS
Interest-bearing
deposits with banks $ 297 $ 12.0 5.34 % $ 406 $ 8.0 2.58 %
Loans,
net of unearned income & deferred loan fees 3,275 161.5 6.50 3,896 156.8 5.29
Trading
assets 100 4.9 6.39 23 0.1 0.70
Investment
securities 324 14.5 5.91 740 26.4 4.68
TOTAL
INTEREST EARNING ASSETS $ 3,997 $ 192.9 6.36 % $ 5,066 $ 191.2 4.96 %
Investment
fund 0 62
Non
interest earning assets 85 93
Allowance
for loan losses (59 ) (70 )
Other
assets 61 48
TOTAL
ASSETS $ 4,084 $ 5,199
INTEREST
BEARING LIABILITITES
Deposits $ 1,306 $ 52.8 5.33 % $ 1,572 $ 36.3 3.03 %
Trading
liabilities 63 3.2 6.76 19 0.8 5.45
Securities
sold under repurchase agreement and
short-term
borrowings 1,232 51.3 5.49 1,681 42.3 3.31
Long-term
debt and borrowings 744 34.1 6.05 1,164 49.3 5.56
TOTAL
INTEREST BEARING LIABILITIES $ 3,345 $ 141.4 5.58 % $ 4,436 $ 128.7 3.81 %
Non
interest bearing liabilities and other liabilities $ 138 $ 133
TOTAL
LIABILITIES 3,483 4,570
STOCKHOLDERS'
EQUITY 601 629
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,084 $ 5,199
NET
INTEREST SPREAD 0.79 % 1.15 %
NET
INTEREST INCOME AND NET
INTEREST
MARGIN $ 51.4 1.72 % $ 62.5 1.65 %

(*) "n.m." means not meaningful.

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME

(In US$ thousand, except per share amounts and ratios)

NINE MONTHS
ENDED FOR THE THREE MONTHS ENDED ENDED
SEP 30/07 SEP 30/07 DEC 31/07 MAR 31/08 JUN 30/08 SEP 30/08 SEP 30/08
INCOME
STATEMENT DATA:
Interest
income $ 192,877 $ 68,641 $ 71,992 $ 67,850 $ 60,629 $ 62,757 $ 191,236
Interest
expense (141,434 ) (51,020 ) (52,864 ) (46,733 ) (40,513 ) (41,452 ) (128,698 )
NET
INTEREST INCOME 51,443 17,622 19,127 21,118 20,116 21,305 62,538
Reversal
(provision) for loan losses (14,974 ) (3,384 ) 2,980 0 3,204 842 4,045
NET
INTEREST INCOME AFTER REVERSAL (PROVISION) FOR LOAN LOSSES 36,470 14,237 22,107 21,118 23,319 22,147 66,584
OTHER
INCOME (EXPENSE):
Reversal
(provision) for losses on off-balance sheet credit risk 16,703 2,964 (3,235 ) 0 (2,513 ) (654 ) (3,167 )
Fees
and commissions, net 3,973 1,173 1,582 1,799 2,421 2,966 7,186
Derivatives
and hedging activities (777 ) (294 ) (212 ) (52 ) (27 ) 41 (37 )
Impairment
on assets (500 ) 0 0 0 (339 ) 0 (339 )
Trading
gains (losses) 20,389 5,104 3,475 5,350 216 (23 ) 5,543
Net
gains on sale of securities available for sale 6,894 288 2,226 0 2,095 0 2,095
Net
gains (losses) on investment fund 0 0 0 0 10,960 (1,036 ) 9,924
Gain
(loss) on foreign currency exchange (65 ) (9 ) 181 184 554 (895 ) (157 )
Other
income (expense), net 58 17 (64 ) 40 30 470 540
NET
OTHER INCOME 46,674 9,242 3,954 7,321 13,396 871 21,589
TOTAL
OPERATING EXPENSES (26,500 ) (8,652 ) (10,527 ) (9,237 ) (10,452 ) (9,050 ) (28,738 )
NET
INCOME $ 56,644 $ 14,827 $ 15,534 $ 19,202 $ 26,264 $ 13,968 $ 59,434
SELECTED
FINANCIAL DATA
PER
COMMON SHARE DATA
Net
income per share $ 1.56 $ 0.41 $ 0.43 $ 0.53 $ 0.72 $ 0.38 $ 1.63
PERFORMANCE
RATIOS
Return
on average assets 1.9 % 1.4 % 1.3 % 1.6 % 2.0 % 1.0 % 1.5 %
Return
on average stockholders' equity 12.6 % 9.6 % 9.9 % 12.6 % 16.7 % 8.6 % 12.6 %
Net
interest margin 1.72 % 1.65 % 1.69 % 1.77 % 1.56 % 1.62 % 1.65 %
Net
interest spread 0.79 % 0.73 % 0.84 % 1.14 % 1.09 % 1.20 % 1.15 %
Operating
expenses to average assets 0.87 % 0.80 % 0.91 % 0.76 % 0.80 % 0.66 % 0.74 %

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ million)

FOR THE NINE MONTHS ENDED — SEP 30/07 SEP 30/08 FOR THE THREE MONTHS ENDED — SEP 30/07 JUN 30/08 SEP 30/08
COMMERCIAL
DIVISION:
Net
interest income (1) $ 46.4 $ 59.0 $ 16.2 $ 18.9 $ 20.7
Non-interest
operating income (2) 3.9 6.4 1.1 1.9 2.7
Operating
expenses (3) (19.5 ) (21.2 ) (6.6 ) (7.9 ) (6.7 )
Net
operating income (4) 30.8 44.2 10.8 12.9 16.7
Reversal
(provision) for loan and off-balance sheet credit losses,
net 1.7 0.9 (0.4 ) 0.7 0.2
Impairment
on assets (0.5 ) (0.3 ) - (0.3 ) 0.0
NET
INCOME $ 32.1 $ 44.7 $ 10.3 $ 13.2 $ 16.9
Average
interest-earning assets (5) 3,275 3,896 3,433 3,966 4,021
End-of-period
interest-earning assets (5) 3,489 3,862 3,489 4,098 3,862
TREASURY
DIVISION:
Net
interest income (1) $ 4.1 $ 5.9 $ 1.7 $ 2.1 $ 1.7
Non-interest
operating income (loss) (2) 6.2 2.0 0.0 2.7 (0.8 )
Operating
expenses (3) (2.8 ) (4.7 ) (0.9 ) (1.8 ) (1.6 )
Net
operating income (loss) (5) 7.5 3.2 0.8 3.0 (0.7 )
NET
INCOME (LOSS) $ 7.5 $ 3.2 $ 0.8 $ 3.0 $ (0.7 )
Average
interest-earning assets (6) 552 1,101 623 1,121 1,214
End-of-period
interest-earning assets (6) 797 1,248 797 1,115 1,248
ASSET
MANAGEMENT DIVISION:
Net
interest income (1) $ 0.9 $ (2.4 ) $ (0.3 ) $ (0.8 ) $ (1.1 )
Non-interest
operating income (loss) (2) 20.4 16.7 5.1 11.7 (0.3 )
Operating
expenses (3) (4.2 ) (2.8 ) (1.1 ) (0.8 ) (0.8 )
Net
operating income (loss) (4) 17.1 11.5 3.7 10.1 (2.2 )
NET
INCOME (LOSS) $ 17.1 $ 11.5 $ 3.7 $ 10.1 $ (2.2 )
Average
interest-earning assets (7) 170 68 170 85 0
Average
investment fund 0 62 0 42 144
Total
average interest-earning assets and investment fund 170 130 170 127 144
End-of-period
interest-earning assets (7) 162 0 162 0 0
End-of-period
investment fund 0 143 0 144 143
Total
end-of period interest-earning assets and investment fund 162 143 162 144 143
CONSOLIDATED:
Net
interest income (1) $ 51.4 $ 62.5 $ 17.6 $ 20.1 $ 21.3
Non-interest
operating income (2) 30.5 25.1 6.3 16.2 1.5
Operating
expenses (3) (26.5 ) (28.7 ) (8.7 ) (10.5 ) (9.0 )
Net
operating income (4) 55.4 58.9 15.2 25.9 13.8
Reversal
(provision) for loan and off-balance sheet credit losses,
net 1.7 0.9 (0.4 ) 0.7 0.2
Recoveries
(impairment), on assets (0.5 ) (0.3 ) 0.0 (0.3 ) 0.0
NET
INCOME $ 56.6 $ 59.4 $ 14.8 $ 26.3 $ 14.0
Average
interest-earning assets 3,997 5,066 4,226 5,172 5,236
End-of-period
interest-earning assets 4,449 5,110 4,449 5,213 5,110

The bank has aligned its operations into three major business segments, based on the nature of clients, products and on credit risk standards.

Interest expenses are allocated based on average credits.

(1) Interest income on interest-earning assets, net of allocated cost of funds.

(2) Non-interest operating income consists of net other income (expense), excluding reversals of provisions for credit losses and impairment on assets.

(3) Operating expenses are calculated based on average credits.

(4) Net operating income refers to net income excluding reversals of provisions for credit losses and impairment on assets.

(5) Includes loans, net of unearned income and deferred loan fees.

(6) Includes cash and due from banks, interest-bearing deposits with banks, securities available for sale and held to maturity.

(7) Includes cash and due from banks, interest-bearing deposits with banks, and trading securities of Asset Management Division.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

AT THE END OF,
(A) (B) (C)
30SEP07 30JUN08 30SEP08 Change in Amount
COUNTRY Amount % of Total Outstanding Amount % of Total Outstanding Amount % of Total Outstanding (C) - (B) (C) - (A)
ARGENTINA $ 346 7.7 $ 273 5.2 $ 258 5.1 $ (15 ) $ (88 )
BOLIVIA. 5 0.1 5 0.1 5 0.1 0 0
BRAZIL. 1,817 40.4 1,801 34.3 1,785 35.5 (16 ) (33 )
CHILE. 113 2.5 52 1.0 50 1.0 (2 ) (64 )
COLOMBIA 457 10.1 514 9.8 550 10.9 36 93
COSTA
RICA. 91 2.0 256 4.9 127 2.5 (129 ) 36
DOMINICAN
REPUBLIC. 142 3.2 80 1.5 92 1.8 12 (50 )
ECUADOR 78 1.7 174 3.3 179 3.6 5 101
EL
SALVADOR. 43 1.0 73 1.4 126 2.5 53 83
GUATEMALA 94 2.1 175 3.3 127 2.5 (49 ) 33
HONDURAS. 46 1.0 56 1.1 51 1.0 (5 ) 5
JAMAICA. 50 1.1 85 1.6 67 1.3 (17 ) 17
MEXICO. 375 8.3 497 9.5 552 11.0 55 176
NICARAGUA 17 0.4 5 0.1 31 0.6 26 14
PANAMA. 226 5.0 226 4.3 181 3.6 (44 ) (45 )
PERU 331 7.3 680 12.9 463 9.2 (217 ) 132
TRINIDAD
& TOBAGO 72 1.6 92 1.8 103 2.0 10 31
URUGUAY 3 0.1 0 0.0 65 1.3 65 62
VENEZUELA 192 4.3 141 2.7 147 2.9 5 (45 )
OTHER 5 0.1 67 1.3 64 1.3 (3 ) 59
TOTAL
CREDIT PORTFOLIO (1) $ 4,503 100 % $ 5,252 100 % $ 5,021 100 % $ (231 ) $ 518
UNEARNED
INCOME AND COMMISSION (2) (6 ) (6 ) (6 ) 0 (0 )
TOTAL
CREDIT PORTFOLIO, NET OF
UNEARNED
INCOME AND COMMISSION $ 4,498 $ 5,245 $ 5,015 $ (230 ) $ 517

(1) Includes book value of loans, fair value of selected investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks, credit default swaps and credit commitments).

(2) Represents unearned income and commission on loans.

EXHIBIT X

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

AT THE END OF,
(A) (B) (C)
30SEP07 30JUN08 30SEP08 Change in Amount
COUNTRY Amount % of Total Outstanding Amount % of Total Outstanding Amount % of Total Outstanding (C) - (B) (C) - (A)
ARGENTINA $ 327 8.1 $ 273 6.1 $ 258 6.1 $ (15 ) $ (69 )
BOLIVIA. 5 0.1 5 0.1 5 0.1 0 0
BRAZIL. 1,593 39.5 1,640 36.3 1,636 38.5 (4 ) 43
CHILE. 71 1.8 9 0.2 9 0.2 (0 ) (62 )
COLOMBIA 362 9.0 336 7.4 370 8.7 34 8
COSTA
RICA. 91 2.2 237 5.3 109 2.6 (129 ) 18
DOMINICAN
REPUBLIC. 127 3.2 69 1.5 83 2.0 15 (44 )
ECUADOR 78 1.9 174 3.8 179 4.2 5 101
EL
SALVADOR. 43 1.1 34 0.8 67 1.6 33 25
GUATEMALA 94 2.3 134 3.0 83 2.0 (51 ) (11 )
HONDURAS. 46 1.1 56 1.3 51 1.2 (5 ) 5
JAMAICA. 50 1.2 85 1.9 67 1.6 (17 ) 17
MEXICO. 359 8.9 420 9.3 456 10.7 36 97
NICARAGUA 17 0.4 5 0.1 31 0.7 26 14
PANAMA. 167 4.1 149 3.3 90 2.1 (59 ) (77 )
PERU 331 8.2 651 14.4 435 10.3 (215 ) 105
TRINIDAD
& TOBAGO 72 1.8 92 2.0 103 2.4 10 31
URUGUAY 3 0.1 0 0.0 65 1.5 65 62
VENEZUELA 192 4.8 141 3.1 147 3.5 5 (45 )
OTHER 5 0.1 1 0.0 1 0.0 0 (5 )
TOTAL
COMMERCIAL PORTFOLIO (1) $ 4,032 100 % $ 4,512 100 % $ 4,245 100 % $ (267 ) $ 213
UNEARNED
INCOME AND COMMISSION (2) (6 ) (6 ) (6 ) 0 (0 )
TOTAL
COMMERCIAL PORTFOLIO, NET OF
UNEARNED
INCOME AND COMMISSION $ 4,026 $ 4,506 $ 4,239 $ (267 ) $ 213

(1) Includes book value of loans, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments).

(2) Represents unearned income and commission on loans.

EXHIBIT XI

AVAILABLE FOR SALE PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

AT THE END OF,
(A) (B) (C)
COUNTRY 30SEP07 30JUN08 30SEP08 (C) - (B) (C) - (A)
ARGENTINA $ 20 $ 0 $ 0 $ 0 $ (20 )
BRAZIL. 225 161 149 (11 ) (76 )
CHILE. 42 42 41 (2 ) (2 )
COLOMBIA 92 175 176 2 85
COSTA
RICA 0 19 18 (0 ) 18
DOMINICAN
REPUBLIC. 15 11 9 (2 ) (6 )
EL
SALVADOR. 0 38 59 20 59
GUATEMALA 0 41 44 2 44
MEXICO. 17 77 96 18 79
PANAMA. 59 77 91 15 32
PERU. 0 29 27 (2 ) 27
OTHER. 0 67 63 (3 ) 63
TOTAL
AVAILABLE FOR SALE PORTFOLIO. $ 469 $ 737 $ 774 $ 37 $ 305

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

QUARTERLY INFORMATION
(A) (B) (C)
COUNTRY 3QTR07 2QTR08 3QTR08 (C) - (B) (C) - (A)
ARGENTINA $ 151 $ 46 $ 35 $ (12 ) $ (116 )
BOLIVIA. 5 5 0 (5 ) (5 )
BRAZIL. 690 399 413 14 (277 )
CHILE. 61 0 0 0 (61 )
COLOMBIA 117 40 83 43 (35 )
COSTA
RICA. 82 248 106 (141 ) 24
DOMINICAN
REPUBLIC. 177 80 99 19 (77 )
ECUADOR 50 112 149 37 100
EL
SALVADOR. 14 26 72 46 59
GUATEMALA 55 101 10 (91 ) (45 )
HONDURAS. 32 40 11 (29 ) (21 )
JAMAICA. 61 99 54 (45 ) (7 )
MEXICO. 92 256 146 (110 ) 54
NICARAGUA 15 0 31 31 16
PANAMA. 85 28 37 9 (48 )
PERU 272 203 92 (111 ) (180 )
TRINIDAD
& TOBAGO 31 160 76 (84 ) 45
URUGUAY 3 3 75 72 73
VENEZUELA 44 53 25 (29 ) (19 )
OTHER 104 62 0 (62 ) (104 )
TOTAL
CREDIT DISBURSED (1) $ 2,140 $ 1,962 $ 1,515 $ (447 ) $ (625 )

(1) Includes book value of loans, fair value of selected investment securities, and contingencies (including confirmed letters of credit, stand-by letters of credit, guarantees covering commercial and country risks, credit default swaps and credit commitments).

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