FOREIGN TRADE BANK OF LATIN AMERICA, INC.

Foreign Filer Report • Jul 22, 2010

6-K 1 v191149_6k.htm Unassociated Document Licensed to: Vintage Filings Document Created using EDGARizer 4.0.6.4 Copyright 1995 - 2008 EDGARfilings, Ltd., an IEC company. All rights reserved

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

Long form of Press Release

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia

P.O. Box 0819-08730

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.

July 21, 2010

| FOREIGN
TRADE BANK OF LATIN AMERICA, INC. |
| --- |
| By:
/s/ Pedro Toll |
| Name:
Pedro Toll |
| Title: General
Manager |

BLADEX REPORTS SECOND QUARTER 2010 NET INCOME OF $1.7 MILLION; $0.05 PER SHARE.

PANAMA CITY, July 21, 2010 – Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”) announced today its results for the second quarter ended June 30, 2010.

Second Quarter Business Highlights

· Net Income (*) for the second quarter 2010 amounted to $1.7 million, compared to $10.1 million in the first quarter 2010, and $10.5 million in the second quarter 2009; the decline was driven by trading losses in the Asset Management Division.

· During the quarter, the Commercial Portfolio grew $305 million, or 9%. Year-to-date, the commercial portfolio has grown $436 million, or 14%. Compared to June 30, 2009, the portfolio has expanded 24%.

· Net interest income in the second quarter 2010 was $17.2 million, a 6% increase over the previous period. Fees and commissions grew 17% during the quarter, reaching $2.8 million. On a year-to date-basis, fees and commissions have grown 78%.

· The Bank's weighted average cost of funds decreased 17bps, or 12%, compared to the first quarter 2010, and 125bps, or 50%, compared to the second quarter 2009. As of June 30, 2010 deposit balances increased 11% over the previous quarter and 20% year-on-year.

· Portfolio quality continued to improve, as non-accrual loans declined 12% compared to the previous quarter to $45 million.

· Second quarter 2010 operating expenses were $10.0 million, the same level as the first quarter 2010, and 16% higher than the second quarter 2009, as average commercial portfolio balances grew 21% year-on-year.

· The Commercial Division recorded a $2.4 million, or 23%, increase in operating income during the quarter, as business grew across all customer segments and the new offices in Porto Alegre and Monterrey came on line. The Treasury Division reported a Net Loss (*) in the second quarter of $2.8 million, unchanged from the previous period. While the Division has no open interest or currency positions, the results were driven by unrealized net losses on the valuations of hedging instruments used, and by valuations of the $51 million securities trading portfolio.

· The Asset Management Division reported a Net Loss in the second quarter 2010 of $9.4 million, compa red to a Net Loss of $1.4 million in the first quarter 2010, and Net Income of $2.5 million in the second quarter 2009. T he loss in the second quarter 2010 was related to trading losses in the Investment Fund, as volatility and Latin American market correlations with European markets peaked during the quarter.

· The Bank’s Tier 1 capital ratio as of June 30, 2010 was 23.4%, compared to 24.6% as of March 31, 2010, and 21.1% as of June 30, 2009, while the leverage ratio as of these dates was 6.6x, 5.8x, and 6.3x, respectively.

(*) Net income or loss attributable to Bladex (“Net Income”, or “Net Loss”).

CEO's Comments

Mr. Jaime Rivera, Bladex’s Chief Executive Officer, stated the following regarding the Bank’s results: “Bladex’s second quarter results demonstrate the Bank’s ability to leverage the Region’s recovering trade flows, expand its operation and grow the core business. Unfortunately, trading losses in the Asset Management Division masked the substantial progress made in just about all other aspects of Bladex’s business.

Bladex posted strong results in its core business, with an expanding commercial portfolio and strong fee generation. Trade flows continue to expand, economies are in generally good shape, and investment levels across most of the Region are rising. Working off this favorable environment, Bladex continues to expand its client base and develop new markets. The Bank has opened two new representative offices and just received Board approval to open the next. As a result, the commercial portfolio grew 9% during the quarter, bringing year-to-date growth to 14%, and growth during the previous twelve months to 24%. Disbursements in the second quarter were $1.6 billion, 25% ahead of the previous period. Fees and commissions are running 78% ahead of last year.

Bladex’s cost of funds has continued to decline and is now 142 bps less than this time last year. Crucially, credit quality, already nearing the Bank’s historical standards, continues to improve. The Bank’s capitalization remains strong (Tier 1 of 23.4%), deposits are growing, and liquidity is ample. Expenses are running higher than last year, but are doing so because of a good reason: Bladex is investing in the growth of the Commercial Division.

The trading losses within the Asset Management Division stemmed from an unusually strong correlation that developed between Latin American positions and some EU sovereign risk, particularly while the Greek crisis was in full swing in April and May. The Asset Management Division is reviewing its trading strategy in light of this new reality, and the Bank expects the Division to return to its usual performance levels as markets stabilize.

With all of the Bank's other indicators showing clear progress, management will continue to focus its efforts on the execution of Bladex’s medium-term plan designed to achieve scale, stability and attractive returns," Mr. Rivera concluded.

2

RESULTS BY BUSINESS SEGMENT

COMMERCIAL DIVISION

The Commercial Division incorporates the Bank’s core business of financial intermediation and fee generation activities. Net Income includes net interest income from loans, fee income, net allocated operating expenses, the reversal (provision) for loan and off-balance sheet credit losses, and any impairment on assets.

| (US$
million) | 6M10 | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Commercial
Division: | | | | | | | | | | |
| Net
interest income | $ 32.2 | $ | 33.9 | $ | 17.0 | $ | 15.2 | $ | 17.0 | |
| Non-interest
operating income (1) | 4.9 | | 3.3 | | 2.7 | | 2.2 | | 0.8 | |
| Net operating
revenues (2) | 37.1 | | 37.2 | | 19.7 | | 17.4 | | 17.8 | |
| Operating
expenses | (13.7 | ) | (11.8 | ) | (6.7 | ) | (6.8 | ) | (5.1 | ) |
| Net operating income (3) | 23.4 | | 25.4 | | 13.0 | | 10.6 | | 12.7 | |
| Reversal
(provision) for loan and off-balance sheet credit losses,
net | 4.4 | | (14.3 | ) | 0.9 | | 3.5 | | (9.1 | ) |
| Impairment
of assets, net of recoveries | 0.2 | | (0.1 | ) | 0.0 | | 0.2 | | 0.0 | |
| Net
Income | $ 28.0 | $ | 11.0 | $ | 13.9 | $ | 14.3 | $ | 3.6 | |

Quarterly and Year-on-Year Growth

The Commercial Division continued to accelerate portfolio growth in the second quarter as market demand strengthened, reaching $3.5 billion in period-end balances, a 9% increase from the previous quarter and a 24% increase from the second quarter 2009.

3

2Q10 vs. 1Q10

The Division’s Net Income in the second quarter 2010 amounted to $13.9 million, compared to $14.3 million in the first quarter 2010, which benefitted from higher provision reversals. Net operating income in the second quarter 2010 amounted to $13.0 million, compared to $10.6 million in the first quarter 2010. The $2.4 million quarterly increase in operating income was the result of the combined effects of: (i) a $1.8 million increase in net interest income due to higher average loan portfolio balances (+7%), mainly driven by demand from corporations, (ii) a $0.5 million increase in non-interest operating income, mostly attributable to increased commission income from the letter of credit business, and (iii) $0.1 million in lower operating expenses during the quarter.

2Q10 vs. 2Q09

The Division’s Net Income in the second quarter 2010 increased $10.3 million compared to the second quarter 2009, mainly as a result of improving credit quality, and thus, decreased reserve requirements. Net Operating income increased $0.3 million compared to the second quarter 2009, mainly due to an 11% increase in non-interest income from fees and commissions, partially offset by increased operating expenses. The effects of a greater average portfolio base on net interest income were largely offset by a year-on-year decline in market rates.

6M10 vs. 6M09

The Division’s accumulated Net Income increased $17.0 million (155%) versus the same period in 2009, mainly as a result of lower credit reserve requirements as portfolio quality improved, and higher non-interest operating income, partially offset by lower net interest income. Net operating income declined $2.0 million versus the six months ended June 30, 2009 as a result of: (i) a $1.7 million decrease in net interest income mostly attributable to lower average lending rates (160 bps), of which 157 bps corresponded to a reduction in market interest rates, partially offset by lower average cost of funds (-142 bps) and by the income effects of the increase in average loan portfolio balances (+11%); (ii) a $1.6 million increase in commissions and fees from letters of credit and guarantees, and (iii) a $1.9 million increase in operating expenses as the Division expanded its activities.

4

The following graph illustrates the trend in quarterly weighted average lending spreads as liquidity and credit quality stabilized:

The commercial portfolio 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) pertaining to the Bank’s client-oriented intermediation activities. The Bank’s commercial portfolio balance reached $3.5 billion as of June 30, 2010, a 9% increase over the balances as of March 31, 2010, and 24% over the balance as of June 30, 2009. Similarly, on an average basis, the commercial portfolio increased 6% in the second quarter 2010 compared to the previous quarter, and 21% from the second quarter 2009.

5

The commercial portfolio continues to mainly be short-term and trade-related in nature. $2.7 billion, or 77%, of the commercial portfolio matures within one year. Trade financing operations represent 60% of the portfolio, while the remaining balance consists primarily of lending to banks and exporters. Refer to Exhibit X for information relating to the Bank’s commercial portfolio distribution by country and Exhibit XII for the Bank’s distribution of credit disbursements by country.

TREASURY DIVISION

The Treasury Division incorporates the Bank’s liquidity management and investment securities activities. Net Income is presented net of allocated operating expenses, and includes net interest income on Treasury activities and net other income (loss) relating to Treasury activities (12) .

| (US$
million) | 6M10 | | 6M09 | | | | 1Q10 | | 2Q09 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Treasury
Division: | | | | | | | | | | |
| Net
interest income (loss) | $ 1.1 | | $ 0.3 | $ | 0.6 | | $ 0.5 | | $ 0.8 | |
| Non-interest
operating income (loss) (1) | (2.4 | ) | 9.6 | | (1.4 | ) | (1.1 | ) | 5.8 | |
| Net operating
revenues (2) | (1.3 | ) | 9.9 | | (0.8 | ) | (0.6 | ) | 6.6 | |
| Operating
expenses | (4.2 | ) | (4.5 | ) | (2.0 | ) | (2.2 | ) | (2.2 | ) |
| Net operating income
(loss) (3,
12) | (5.5 | ) | 5.4 | | (2.8 | ) | (2.8 | ) | 4.4 | |
| Net
Income (Loss) | $ (5.5 | ) | $ 5.4 | $ | (2.8 | ) | $ (2.8 | ) | $ 4.4 | |

Quarterly and Year-on-Year Variation

The Treasury Division continued to leverage diversified funding sources to lower funding costs during the quarter as deposits and borrowings increased, while maintaining the level of its securities portfolio compared to the previous quarter.

The trading portfolio as of June 30, 2010 reached $51 million, the same level as of March 31, 2010, and a $114 million decrease from June 30, 2009. The securities available for sale portfolio as of June 30, 2010 remained at $457 million, the same level as of March 31, 2010, and a $151 million decrease compared to June 30, 2009. The year-on-year decrease reflects the sale of $147 million in book value of the securities portfolio in 2009.

Period-end deposit balances increased 11% over the previous quarter, and 20% year-on-year, to reach $1.5 billion, the highest level since third quarter 2008. Borrowings and securities sold under repurchase agreements increased 16% over the first quarter 2010 to $2.0 billion, a 1% year-on-year increase, as the leverage ratio reached 6.6x in the second quarter 2010, compared to 5.8x in the previous quarter, and 6.3x in the same period 2009.

6

2Q10 vs. 1Q10

In the second quarter 2010, the Treasury Division posted a Net Loss of $2.8 million, compared to the same result in the first quarter 2010. Net operating revenues were $0.2 million lower, mainly due to a $0.3 million decrease in non-interest operating income mainly from net losses on valuations of hedging instruments, partially offset by increased interest income, and decreased operating expenses.

2Q10 vs. 2Q09

The Treasury Division posted a Net Loss of $2.8 million in the second quarter 2010 compared to a Net Income of $4.4 million in the second quarter 2009 due to a $7.2 million variance in non-interest operating income as a result of unrealized losses on trading securities.

6M10 vs. 6M09

The Treasury Division reported a Net Loss of $5.5 million during the first six months of 2010, compared to a $5.4 million Net Income in the first six months of 2009. The $10.9 million decrease in this period was primarily driven by a $12.0 million variance in non-interest operating income mainly attributable to a year-on-year reduction in gains on trading securities.

The available for sale portfolio as of June 30, 2010 consisted entirely of readily quoted Latin American securities, 80% of which were sovereign and state-owned risk in nature (refer to Exhibit XI for a per country distribution of the Treasury portfolio).

The available for sale portfolio is marked to market, with the impact recorded in stockholders’ equity through the Other Comprehensive Income Account (“OCI”), which stood at (-$11 million) in the second quarter 2010, compared to (-$6 million) in the first quarter 2010, as lower valuations on related hedging instruments (-$6 million) offset increased market valuations of the securities portfolio (+$1 million) (refer to Exhibit I).

Liquid assets (11) increased to $593 million as of June 30, 2010, compared to $328 million as of March 31, 2010, and $456 million as of June 30, 2009, in preparation for credit disbursements and retirements of borrowings scheduled early in the current quarter.

The Bank made increased use of repurchase agreement obligations in the second quarter 2010, and increased overall borrowing levels to support asset growth as funding costs continue to improve. Weighted average funding costs for the second quarter 2010 amounted to 1.26%, a decrease of 17 bps, or 12%, compared to the first quarter 2010, and a decrease of 125 bps, or 50%, compared to the second quarter 2009.

ASSET MANAGEMENT DIVISION

The Asset Management Division incorporates the Bank’s asset management activities. The Division’s Investment Fund follows primarily a Latin America macro strategy, utilizing a combination of products (foreign exchange, equity indices, interest rate swaps, and credit derivative products) to establish long and short positions in the markets.

7

The Division’s Net Income includes net interest income on the Investment Fund, as well as net gains (losses) from Investment Fund trading, other related income (loss), allocated operating expenses, and the Net Income attributable to redeemable non-controlling interest.

| (US$
million) | 6M10 | | 6M09 | | 2Q10 | | 1Q10 | | 2Q09 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Asset
Management Division: | | | | | | | | | | |
| Net
interest income (loss) | $ 0.2 | | $ (2.0 | ) | $ (0.4 | ) | $ 0.6 | | $ (1.0 | ) |
| Non-interest
operating income (loss) (1) | (11.4 | ) | 16.6 | | (10.1 | ) | (1.3 | ) | 4.9 | |
| Net operating
revenues (2) | (11.2 | ) | 14.6 | | (10.5 | ) | (0.7 | ) | 3.9 | |
| Operating
expenses | (2.3 | ) | (3.5 | ) | (1.3 | ) | (1.0 | ) | (1.3 | ) |
| Net operating income
(loss) (3) | (13.5 | ) | 11.1 | | (11.8 | ) | (1.7 | ) | 2.6 | |
| Net
income (loss) | (13.5 | ) | 11.1 | | (11.8 | ) | (1.7 | ) | 2.6 | |
| Net
income (loss) attributable to the redeemable noncontrolling
interest | (2.8 | ) | 0.4 | | (2.4 | ) | (0.3 | ) | 0.1 | |
| Net
Income (Loss) | $ (10.7 | ) | $ 10.7 | | $ (9.4 | ) | $ (1.4 | ) | $ 2.5 | |

2Q10 vs. 1Q10

The Asset Management Division recorded a Net Loss in the second quarter 2010 of $9.4 million, compared to a Net Loss of $1.4 million in the first quarter in 2010. The $8.0 million decrease was mainly due to a $8.8 million decrease in non-interest operating income attributable to losses from Investment Fund trading, partially offset by net income attributable to the redeemable non-controlling interest.

2Q10 vs. 2Q09

The Division posted a Net Loss of $9.4 million in the second quarter 2010, compared to a $2.5 million gain in the second quarter 2009 as a result of losses from Investment Fund trading, offset by net loss attributable to the redeemable non-controlling interest.

6M10 vs. 6M09

The Division posted a Net Loss during the first six months of 2010 of $10.7 million compared to Net Income of $10.7 million in the first six months of 2009. The $21.4 million year-over-year variance was due to the combined effects of: (i) a $2.2 million increase in net interest income, (ii) a $28.0 million decrease in non-interest operating income attributable to losses from Investment Fund trading, (iii) a $1.2 million decrease in operating expenses from lower provisions for variable compensation tied to the performance of the Investment Fund.

As of June 30, 2010, the Investment Fund’s asset value totaled $193 million, compared to $205 million as of March 31, 2010 and $166 million as of June 30, 2009. For the same dates, Bladex´s ownership of the Bladex Offshore Feeder Fund was 79.0%, compared to 78.79% as of March 31, 2010, and 95.32% as of June 30, 2009, respectively, with remaining balances owned by third party investors.

8

CONSOLIDATED RESULTS OF OPERATIONS

KEY FINANCIAL FIGURES AND RATIOS

The following table illustrates the consolidated results of operations of the Bank for the periods indicated below:

| (US$
million, except percentages and per share amounts) — Net
Interest Income | 6M10 — $ 33.5 | | 6M09 — $ 32.2 | | 2Q10 — $ 17.2 | | 1Q10 — $ 16.3 | | 2Q09 — $ 16.8 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net
Operating Income (Loss) by Business Segment: | | | | | | | | | | |
| Commercial
Division | $ 23.4 | | $ 25.4 | | $ 13.0 | | $ 10.6 | | $ 12.7 | |
| Treasury
Division | $ (5.5 | ) | $ 5.4 | | $ (2.8 | ) | $ (2.8 | ) | $ 4.4 | |
| Asset
Management Division | $ (13.5 | ) | $ 11.1 | | $ (11.8 | ) | $ (1.7 | ) | $ 2.6 | |
| Net
Operating Income | $ 4.4 | | $ 41.9 | | $ (1.6 | ) | $ 6.1 | | $ 19.7 | |
| Net
income | $ 9.0 | | $ 27.6 | | $ (0.7 | ) | $ 9.8 | | $ 10.6 | |
| Net
income (loss) attributable to the redeemable noncontrolling
interest | $ (2.8 | ) | $ 0.4 | | $ (2.4 | ) | $ (0.3 | ) | $ 0.1 | |
| Net
Income attributable to Bladex | $ 11.8 | | $ 27.2 | | $ 1.7 | | $ 10.1 | | $ 10.5 | |
| Net Income per Share (5) | $ 0.32 | | $ 0.75 | | $ 0.05 | | $ 0.28 | | $ 0.29 | |
| Book
Value per common share (period end) | $ 18.35 | | $ 17.61 | | $ 18.35 | | $ 18.59 | | $ 17.61 | |
| Return
on Average Equity (“ROE”) | 3.5 | % | 8.9 | % | 1.0 | % | 6.1 | % | 6.6 | % |
| Operating Return on
Average Equity ("Operating ROE") (6) | 1.3 | % | 13.8 | % | -1.0 | % | 3.7 | % | 12.4 | % |
| Return
on Average Assets (“ROA”) | 0.6 | % | 1.3 | % | 0.2 | % | 1.1 | % | 1.0 | % |
| Net
Interest Margin | 1.69 | % | 1.56 | % | 1.67 | % | 1.71 | % | 1.62 | % |
| Efficiency Ratio (7) | 82 | % | 32 | % | 120 | % | 62 | % | 30 | % |
| Tier 1 Capital (8) | $ 680 | | $ 662 | | $ 680 | | $ 684 | | $ 662 | |
| Total Capital (9) | $ 716 | | $ 701 | | $ 716 | | $ 718 | | $ 701 | |
| Risk-Weighted
Assets | $ 2,899 | | $ 3,129 | | $ 2,899 | | $ 2,779 | | $ 3,129 | |
| Tier 1 Capital Ratio (8) | 23.4 | % | 21.1 | % | 23.4 | % | 24.6 | % | 21.1 | % |
| Total Capital Ratio (9) | 24.7 | % | 22.4 | % | 24.7 | % | 25.8 | % | 22.4 | % |
| Stockholders’
Equity | $ 673 | | $ 643 | | $ 673 | | $ 681 | | $ 643 | |
| Stockholders’
Equity to Total Assets | 15.2 | % | 15.8 | % | 15.2 | % | 17.2 | % | 15.8 | % |
| Other
Comprehensive Income Account ("OCI") | $ (11 | ) | $ (21 | ) | $ (11 | ) | $ (6 | ) | $ (21 | ) |
| Leverage (times) (10) | 6.6 | | 6.3 | | 6.6 | | 5.8 | | 6.3 | |
| Liquid Assets / Total
Assets (11) | 13.5 | % | 11.2 | % | 13.5 | % | 8.3 | % | 11.2 | % |
| Liquid
Assets / Total Deposits | 39.4 | % | 36.2 | % | 39.4 | % | 24.2 | % | 36.2 | % |
| Non-Accruing
Loans to Total Loans, net | 1.5 | % | 0.0 | % | 1.5 | % | 1.8 | % | 0.0 | % |
| Allowance
for Credit Losses to Commercial Portfolio | 2.7 | % | 3.5 | % | 2.7 | % | 3.0 | % | 3.5 | % |
| Total
Assets | $ 4,412 | | $ 4,067 | | $ 4,412 | | $ 3,962 | | $ 4,067 | |

9

The following graphs illustrate the trends in Net Income and Return on Average Stockholders’ Equity and Tier 1 Capital for the periods indicated:

NET INTEREST INCOME AND MARGINS

| (US$
million, except percentages) | | | | 2Q10 | | 1Q10 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net
Interest Income (Loss) | | | | | | | | |
| Commercial
Division | $ 32.2 | $ 33.9 | $ | 17.0 | $ | 15.2 | $ 17.0 | |
| Treasury
Division | 1.1 | 0.3 | | 0.6 | | 0.5 | 0.8 | |
| Asset
Management Division | 0.2 | (2.0 | ) | (0.4 | ) | 0.6 | (1.0 | ) |
| Consolidated | $ 33.5 | $ 32.2 | $ | 17.2 | $ | 16.3 | $ 16.8 | |
| Net Interest
Margin * | 1.69 % | 1.56 | % | 1.67 | % | 1.71 % | 1.62 | % |
| *
Net interest income divided by average balance of interest-earning
assets. | | | | | | | | |

10

2Q10 vs. 1Q10

In the second quarter 2010, net interest income amounted to $17.2 million, an increase of $0.9 million, or 6% compared to $16.3 million in the first quarter 2010. The quarterly increase primarily reflects:

(i) Higher average loan portfolio balances, which increased $192 million, or 7%, compared to the first quarter 2010, which resulted in an overall increase of $1.7 million in interest income, partially offset by a $0.6 million increase in interest expense, due to higher average balances in securities sold under repurchase agreements and short-term borrowings. The net positive effect of higher average volumes in interest-assets and interest-bearing liabilities was $1.1 million.

(ii) Lower average interest rates for the Bank’s assets and liabilities resulted in a $0.2 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 17 bps to 1.26% during the quarter due to lower interbank market rates as well as lower borrowings spreads, while the average yield on interest-earning assets decreased 14 bps to 2.65% during the second quarter 2010 compared to the first quarter 2010, mainly attributable to the Investment Fund.

2Q10 vs. 2Q09

Net interest income when compared to the second quarter 2009, increased $0.4 million, or 2%. This increase reflects primarily the following:

(i) Higher average loan portfolio balances, which increased $417 million, or 16%, compared to the second quarter 2009, resulted in an overall increase of $1.4 million in interest income. Average volumes of interest bearing liabilities, decreased $98 million, mainly due to the reduction of securities sold under repurchase agreements and short-term borrowings, which entirely offset the effect of increased deposits and long-term borrowings and debt. The net effect of average volumes variances in interest-assets and interest-bearing liabilities was $1.4 million.

(ii) Lower average interest rates for the Bank’s assets and liabilities resulted in a $1.0 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 125 bps, while the average yield on interest-earning assets decreased 100 bps, both mostly attributable to lower interbank market rates.

Net interest margin stood at 1.67% in the second quarter 2010, compared to 1.71% in the first quarter 2010, and 1.62% in the second quarter 2009.

6M10 vs. 6M09

Net interest income amounted to $33.5 million in the first six months of 2010, compared to $32.2 million during the first six months of 2009. The $1.3 million, or 4%, increase of net interest income during the period primarily reflects:

11

(i) Higher average loan portfolio balances, which increased $276 million, or 11%, from $2.6 billion in the first six months of 2009 to $2.9 billion in the first six months of 2010, resulting in a $2.7 million overall increase in net interest income, and a $0.7 million decrease in interest expense associated primarily with a decrease of securities sold under repurchase agreements and short-term borrowings, which decreased from $1.0 billion in the first six months of 2009 compared to $0.4 billion in the first six months of 2010. The net effect of average volume variances in interest-bearing assets and liabilities was a $3.4 million increase in net interest income.

(ii) Lower average interest rates for the Bank’s assets and liabilities resulted in a $2.1 million decrease in net interest income. The average yield paid on interest-bearing liabilities decreased 142 bps to 1.34% during the first six months of 2010, from 2.76% in the first six months of 2009, mainly due to lower interbank market rates, while the average yield on interest-earning assets decreased 108 bps, to 2.72% in the first six months of 2010 (from 3.79% in the first six months of 2009), also mainly attributable to lower interbank market rates.

Net interest margin stood at 1.69% in the first six months of 2010, compared to 1.56% in the first six months of 2009.

FEES AND COMMISSIONS

| (US$
million) | 6M10 | 6M09 | 2Q10 | 1Q10 | 2Q09 |
| --- | --- | --- | --- | --- | --- |
| Letters
of credit | $ 4.6 | $ 1.9 | $ 2.5 | $ 2.1 | $ 0.4 |
| Guarantees | 0.1 | 0.7 | 0.0 | 0.0 | 0.2 |
| Loans | 0.1 | 0.1 | 0.1 | 0.0 | 0.0 |
| Third
party investor (BAM) | 0.3 | 0.0 | 0.2 | 0.2 | 0.0 |
| Other* | 0.1 | 0.1 | 0.0 | 0.1 | 0.1 |
| Fees
and Commissions, net | $ 5.2 | $ 2.9 | $ 2.8 | $ 2.4 | $ 0.7 |
| *
Net of commission expenses | | | | | |

Fees and commissions amounted to $2.8 million, $0.4 million higher than the first quarter 2010, and $2.1 million higher compared to the second quarter 2009. Both variances were mainly due to increased commission income from the letter of credit business as the result of the combined effects of:

(i) The impact of a quarter-on-quarter decrease in average letter of credit balances (-$0.1 million), while margin improvements in the same period contributed $0.5 million; and

(ii) The impact of a year-on-year increase in average letter of credit balances, $0.8 million, while margin improvements contributed $1.3 million.

During the first six months of 2010, commission income amounted to $5.2 million, compared $2.9 million in the six months of 2009, resulting in a $2.3 million increase in commission income, mainly from the letter of credit business.

12

PORTFOLIO QUALITY AND PROVISION FOR CREDIT LOSSES

| (In
US$ million) | 30-Jun-09 | 30-Sep-09 | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Allowance
for Loan Losses: | | | | | | | | | |
| Balance
at beginning of the period | $ 80.6 | $ 90.2 | $ | 89.9 | $ | 73.8 | $ | 73.9 | |
| Provisions
(reversals) | 8.9 | (0.4 | ) | (16.1 | ) | 0.1 | | 8.7 | |
| Recoveries,
net of charge-offs | 0.8 | 0.0 | | (0.0 | ) | 0.0 | | (1.4 | ) |
| End
of period balance | $ 90.2 | $ 89.9 | $ | 73.8 | $ | 73.9 | $ | 81.3 | |
| Reserve
for Losses on Off-balance Sheet Credit Risk: | | | | | | | | | |
| Balance
at beginning of the period | $ 10.1 | $ 10.3 | $ | 11.8 | $ | 27.3 | $ | 23.6 | |
| Provisions
(reversals) | 0.2 | 1.5 | | 15.5 | | (3.7 | ) | (9.6 | ) |
| End
of period balance | $ 10.3 | $ 11.8 | $ | 27.3 | $ | 23.6 | $ | 14.0 | |
| Total
Allowance for Credit Losses | $ 100.5 | $ 101.7 | $ | 101.0 | $ | 97.6 | $ | 95.3 | |

During the second quarter 2010, the allowance for credit losses decreased $2.3 million, reflecting the $7.3 million increase in the allowance for loan losses, and a $9.6 million decrease in the reserve for losses on off-balance sheet credit risk.

(i) Allowance for loan losses : The $7.3 million increase in the allowance for loan losses reflect the combination of: (i) a $5.8 million provision in generic loan loss reserves driven primarily by higher balances in the loan portfolio, (ii) a $2.9 million increase in specific loan loss reserves, and (iii) a $2.1 million charge-off net of $0.7 million in recoveries pertaining to prior-period losses.

(ii) Reserve for losses on off-balance sheet credit risk : The $9.6 million decrease in the reserves for losses on off-balance sheet credit risk reflects changes in the overall risk profile of the portfolio composition.

As of June 30, 2010, the non-accrual portfolio amounted to $45.3 million, compared to $51.3 million as of March 31, 2010, a decline of 12%. No new non-accrual loans were recorded in the second quarter 2010. The $6.0 million decrease was due to the settlement of a loan resulting in a partial charge-off, and the release of the associated specific reserve.

The net reversal for loan and off-balance sheet credit losses of $0.9 million during the quarter was $2.6 million lower than the previous quarter, as overall lower generic reserve requirements, net of recoveries, were partially offset by increased reserves from loan growth and specific reserve requirements.

The ratio of the allowance for credit losses to the commercial portfolio stood at 2.7% as of June 30, 2010, compared to 3.0% as of March 31, 2010, and 3.5% as of June 30, 2009, while the non-accruing loan ratio stood at 1.5%, 1.8%, and 0%, respectively.

13

OPERATING EXPENSES

| (US$
million) | 6M10 | 6M09 | 2Q10 | 1Q10 | 2Q09 |
| --- | --- | --- | --- | --- | --- |
| Salaries
and other employee expenses | $ 10.9 | $ 10.4 | $ 5.5 | $ 5.4 | $ 4.2 |
| Depreciation,
amortization and impairment of premises and equipment | 1.3 | 1.4 | 0.6 | 0.7 | 0.7 |
| Professional
services | 2.3 | 1.7 | 1.2 | 1.1 | 1.0 |
| Maintenance
and repairs | 0.7 | 0.5 | 0.3 | 0.3 | 0.3 |
| Expenses
from the investment fund | 0.5 | 2.1 | 0.3 | 0.3 | 0.6 |
| Other
operating expenses | 4.4 | 3.6 | 2.1 | 2.2 | 1.9 |
| Total
Operating Expenses | $ 20.1 | $ 19.8 | $ 10.0 | $ 10.0 | $ 8.6 |

Quarterly Variation

Operating expenses in the second quarter 2010 totaled $10.0 million, the same level as the first quarter 2010, and an increase of $1.4 million, or 16%, with respect to the second quarter 2009. The year-on-year increase in operating expenses was mostly attributable to increased salaries and other employee expenses associated with a higher average employee headcount, and the start of the Bank’s new offices in Porto Alegre, Brazil and Monterrey, Mexico.

6M10 vs. 6M09

During the first half of 2010, operating expenses amounted to $20.1 million, compared to $19.8 million during the same period in 2009. The $0.3 million, or 2%, increase in operating expenses during this period was attributable to the net effect of higher salaries and other employee expenses from higher average headcount and professional fees associated with the expansion of the Commercial Division’s activities, partially offset by lower performance–related expenses from the Investment Fund.

The Bank’s efficiency ratio as of June 30, 2010 was 82% compared to 32% as of June 30, 2009, mainly the result of a $37.0 million decrease in net operating revenues in the Asset Management and Treasury Divisions during the period

As of June 30, 2010, the Bank’s operating expenses to average assets ratio amounted to 1.02%, compared to 0.96% as of June 30, 2009. During the second quarter 2010, the operating expenses to average assets ratio improved 8 basis points to 0.98%, compared to previous quarter’s 1.06%, as asset growth accelerated.

14

OTHER EVENTS

§ Quarterly Dividend Payment: On July 15, 2010, the Bank announced a quarterly common dividend payment of US$0.15 per share related to the second quarter 2010. The dividend will be payable on August 4, 2010 to stockholders registered as of the July 26, 2010 record date.

§ Change to the Board of Directors: On May 11, 2010, Bladex announced the resignation of Mr. Carlos E. Weitz as Class “A” Director on Bladex’s Board after being appointed Advisor to the Central Bank of Argentina. Mr. Weitz was a member of the Audit and Compliance Committee, as well as the Nomination and Compensation Committee. Mr. Weitz is succeeded by Mr. Esteban Alejandro Acerbo, a Director at Banco de la Nacion Argentina. Mr. Acerbo serves as a Class “A” Director and a member of both the Audit and Compliance and Nomination and Compensation Committees for the remainder of Mr. Weitz’s original term, due to expire in April, 2011.

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

Footnotes:

(1) 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 gain (loss) on sale of securities available-for-sale, impact of derivative hedging instruments, gain (loss) on foreign currency exchange, and gain (loss) on trading securities.

Asset Management Division: Gain from Investment Fund trading and related other income (expense).

(2) Net Operating Revenues refers to net interest income plus non-interest operating income.

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

(4) Lending spreads are calculated as loan portfolio weighted average lending spread, net of weighted average Libor-based cost rate, excluding loan commissions.

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

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

(7) Efficiency ratio refers to consolidated operating expenses as a percentage of net operating revenues.

(8) Tier 1 Capital is calculated according to Basel I capital adequacy guidelines, and is equivalent to stockholders’ equity excluding the OCI effect of the available for sale portfolio. Tier 1 Capital ratio is calculated as a percentage of risk weighted assets. Risk-weighted assets are, in turn, also calculated based on Basel I capital adequacy guidelines.

(9) Total Capital refers to Tier 1 Capital plus Tier 2 Capital, based on Basel I capital adequacy guidelines. Total Capital ratio refers to Total Capital as a percentage of risk weighted assets.

(10) Leverage corresponds to assets divided by stockholders’ equity.

(11) 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 regulatory deposits.

(12) Treasury Division’s net operating income includes: (i) interest income from interest bearing deposits with banks, investment securities and trading assets, net of allocated cost of funds; (ii) other income (expense) from derivative financial instrument and hedging; (iii) net gain (loss) from trading securities; (iv) net gain (loss) on sale of securities available for sale; (v) gain (loss) on foreign currency exchange; and (vi) allocated operating expenses.

15

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 the macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for 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 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 June 30, 2010, Bladex had disbursed accumulated credits of approximately $165 billion.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Thursday, July 22, 2010 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 http://www.bladex.com.

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available through September 21, 2010. Please dial (877) 919-4059 or (334) 323-7226, and follow the instructions. The conference ID# for the replayed call is 18275331. For more information, please access http://www.bladex.com or contact:

Mr. Christopher Schech

Chief Financial Officer

Bladex

Calle 50 y Aquilino de la Guardia

Panama City, Panama

Tel: (507) 210-8630

E-mail address: cschech@bladex.com

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: bladex@i-advize.com

16

EXHIBIT I

CONSOLIDATED BALANCE SHEETS

	AT THE END OF,
	(A)	(B)		(C)		(A) - (B)					(A) - (C)
	June 30, 2010	March 31, 2010		June 30, 2009		CHANGE		%			CHANGE	%
	(In US$ million)
ASSETS:
Cash
and due from banks	$ 620	$	349	$	485	$	271		78	%	$ 135		28	%
Trading
assets	51		51		165		0		0		(114	)	(69	)
Securities
available-for-sale	457		457		608		0		0		(151	)	(25	)
Securities
held-to-maturity	13		0		0		13	n.m.		(*)	13	n.m.		(*)
Investment
fund	193		205		166		(12	)	(6	)	27		16
Loans	3,100		2,935		2,682		165		6		418		16
Less:
Allowance
for loan losses	(81	)	(74	)	(90	)	(7	)	9		9		(10	)
Unearned
income and deferred fees	(4	)	(3	)	(4	)	(1	)	33		0		0
Loans,
net	3,015		2,858		2,587		157		5		428		17
Customers'
liabilities under acceptances	20		0		0		20	n.m.		(*)	20	n.m.		(*)
Premises
and equipment, net	7		7		8		0		0		(1	)	(13	)
Accrued
interest receivable	27		22		41		5		23		(14	)	(34	)
Derivative
financial instruments used for hedging -
receivable	1		0		1		1	n.m.		(*)	0		0
Other
assets	10		12		7		(2	)	(17	)	3		43
TOTAL
ASSETS	$ 4,412	$	3,962	$	4,067	$	450		11	%	$ 345		8	%
LIABILITIES
AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$ 23	$	37	$	156	$	(14	)	(38	)%	$ (133	)	(85	)%
Time	1,484		1,318		1,104		166		13		380		34
Total
Deposits	1,507		1,355		1,261		152		11		246		20
Trading
liabilities	4		5		11		(1	)	(20	)	(7	)	(64	)
Securities
sold under repurchase agreements	246		95		312		151		159		(66	)	(21	)
Short-term
borrowings	434		282		598		152		54		(164	)	(27	)
Borrowings
and long-term debt	1,370		1,394		1,128		(24	)	(2	)	242		21
Acceptances
outstanding	20		0		0		20	n.m.		(*)	20	n.m.		(*)
Accrued
interest payable	8		10		17		(2	)	(20	)	(9	)	(53	)
Derivative
financial instruments used for hedging - payable	73		58		69		15		26		4		6
Reserve
for losses on off-balance sheet credit risk	14		24		10		(10	)	(42	)	4		40
Other
liabilities	24		15		10		9		60		14		140
TOTAL
LIABILITIES	$ 3,699	$	3,238	$	3,416	$	461		14	%	$ 283		8	%
Redeemable
noncontrolling interest in the investment fund	41		43		8		(2	)	(5	)	33		413
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 excess of assigned value of common
stock	134		134		135		0		0		(1	)	(1	)
Capital
reserves	95		95		95		0		0		0		0
Retained
earnings	302		306		285		(4	)	(1	)	17		6
Accumulated
other comprehensive loss	(11	)	(6	)	(21	)	(5	)	83		10		(48	)
Treasury
stock	(127	)	(128	)	(131	)	1		(1	)	4		(3	)
TOTAL
STOCKHOLDERS' EQUITY	$ 673	$	681	$	643	$	(8	)	(1	)%	$ 30		5	%
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY	$ 4,412	$	3,962	$	4,067	$	450		11	%	$ 345		8	%

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

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME

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

	FOR THE THREE MONTHS ENDED
	(A)		(B)	(C)		(A) - (B)					(A) - (C)
	June 30, 2010		March 31, 2010	June 30, 2009		CHANGE		%			CHANGE	%
INCOME
STATEMENT DATA:
Interest
income	$ 27,697		$ 27,019	$	38,252	$	678		3	%	$ (10,555	)	(28	)%
Interest
expense	(10,500	)	(10,733	)	(21,464	)	233		(2	)	10,964		(51	)
NET
INTEREST INCOME	17,197		16,286		16,788		911		6		409		2
Provision
for loan losses	(8,723	)	(159	)	(8,905	)	(8,564	)	5,386		182		(2	)
NET
INTEREST INCOME, AFTER REVERSAL
(PROVISION)
FOR LOAN LOSSES	8,474		16,127		7,883		(7,653	)	(47	)	591		7
OTHER
INCOME (EXPENSE):
Reversal
(provision) for losses on off-balance sheet credit risk	9,618		3,626		(177	)	5,992		165		9,795		(5,534	)
Fees
and commissions, net	2,797		2,382		734		415		17		2,063		281
Derivative
financial instrument and hedging	(340	)	(953	)	(2,591	)	613		(64	)	2,251		(87	)
Impairment
of assets, net of recoveries	0		233		0		(233	)	(100	)	0	n.m.		(*)
Net
gain (loss) from investment fund trading	(10,343	)	(1,500	)	4,918		(8,843	)	590		(15,261	)	(310	)
Net
gain (loss) from trading securities	(502	)	(1,479	)	7,653		977		(66	)	(8,155	)	(107	)
Gain
(loss) on foreign currency exchange	(568	)	1,312		705		(1,880	)	(143	)	(1,273	)	(181	)
Other
income (expense), net	117		71		93		46		65		24		26
NET
OTHER INCOME (EXPENSE)	779		3,692		11,336		(2,913	)	(79	)	(10,557	)	(93	)
OPERATING
EXPENSES:
Salaries
and other employee expenses	(5,478	)	(5,409	)	(4,225	)	(69	)	1		(1,253	)	30
Depreciation,
amortization and impairment of premises and equipment	(601	)	(676	)	(697	)	75		(11	)	96		(14	)
Professional
services	(1,202	)	(1,107	)	(972	)	(95	)	9		(230	)	24
Maintenance
and repairs…	(347	)	(347	)	(266	)	0		0		(81	)	30
Expenses
from the investment fund	(278	)	(257	)	(571	)	(21	)	8		293		(51	)
Other
operating expenses	(2,126	)	(2,247	)	(1,891	)	121		(5	)	(235	)	12
TOTAL
OPERATING EXPENSES	(10,032	)	(10,043	)	(8,622	)	11		(0	)	(1,410	)	16
Net
Income	$ (779	)	$ 9,776	$	10,597	$	(10,555	)	(108	)	$ (11,376	)	(107	)
Net
Income (loss) attributable to the redeemable noncontrolling
interest	(2,442	)	(320	)	109		(2,122	)	663		(2,551	)	(2,340	)
NET
INCOME ATTRIBUTABLE TO BLADEX	$ 1,663		$ 10,096	$	10,488	$	(8,433	)	(84	)%	$ (8,825	)	(84	)%
PER
COMMON SHARE DATA:
Basic
earnings per share	0.05		0.28		0.29
Diluted
earnings per share	0.05		0.28		0.29
Weighted
average basic shares	36,648		36,560		36,471
Weighted
average diluted shares	36,808		36,715		36,669
PERFORMANCE
RATIOS:
Return
on average assets	0.2	%	1.1	%	1.0	%
Return
on average stockholders' equity	1.0	%	6.1	%	6.6	%
Net
interest margin	1.67	%	1.71	%	1.62	%
Net
interest spread	1.38	%	1.37	%	1.14	%
Operating
expenses to total average assets	0.98	%	1.06	%	0.84	%

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

| SUMMARY
OF CONSOLIDATED FINANCIAL DATA | |
| --- | --- |
| (Consolidated
Statements of Income, Balance Sheets, and Selected Financial
Ratios) | EXHIBIT III |

	FOR THE SIX MONTHS ENDED — June 30, 2010	June 30, 2009
	(In US$ thousand, except per share amounts & ratios)
INCOME
STATEMENT DATA:
Net
interest income	$ 33,483	$	32,216
Fees
and commissions, net	5,178		2,901
Reversal
(provision) for loan and off-balance sheet credit losses,
net	4,363		(14,268	)
Derivative
financial instrument and hedging	(1,294	)	(921	)
Impairment
of assets, net of recoveries	233		(94	)
Net
gain (loss) from investment fund trading	(11,843	)	16,614
Net
gain (loss) from trading securities	(1,981	)	10,815
Gain
(loss) on foreign currency exchange	744		(375	)
Other
income (expense), net	188		452
Operating
expenses	(20,074	)	(19,767	)
Net
Income	$ 8,997	$	27,573
Net
Income (loss) attributable to the redeemable noncontrolling
interest	(2,762	)	378
NET
INCOME ATTRIBUTABLE TO BLADEX	$ 11,759	$	27,195
BALANCE
SHEET DATA (In US$ millions):
Investment
securities and trading assets	521		773
Investment
fund	193		166
Loans,
net	3,015		2,587
Total
assets	4,412		4,067
Deposits	1,507		1,261
Securities
sold under repurchase agreements	246		312
Short-term
borrowings	434		598
Borrowings
and long-term debt	1,370		1,128
Total
liabilities	3,699		3,416
Stockholders'
equity	673		643
PER
COMMON SHARE DATA:
Basic
earnings per share	0.32		0.75
Diluted
earnings per share	0.32		0.74
Book
value (period average)	18.37		16.86
Book
value (period end)	18.35		17.61
(In
thousand):
Weighted
average basic shares	36,604		36,443
Weighted
average diluted shares	36,776		36,567
Basic
shares period end	36,652		36,505
SELECTED
FINANCIAL RATIOS:
PERFORMANCE
RATIOS:
Return
on average assets	0.6	%	1.3	%
Return
on average stockholders' equity	3.5	%	8.9	%
Net
interest margin	1.69	%	1.56	%
Net
interest spread	1.38	%	1.04	%
Operating
expenses to total average assets	1.02	%	0.96	%
ASSET
QUALITY RATIOS:
Non-accruing
loans to total loans, net of discounts (1)	1.5	%	0.0	%
Charge
offs to total loan portfolio (1)	0.1	%	0.0	%
Allowance
for loan losses to total loan portfolio (1)	2.6	%	3.4	%
Allowance
for losses on off-balance sheet credit risk to total
contingencies	3.1	%	5.9	%
CAPITAL
RATIOS:
Stockholders'
equity to total assets	15.2	%	15.8	%
Tier
1 capital to risk-weighted assets	23.4	%	21.1	%
Total
capital to risk-weighted assets	24.7	%	22.4	%

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

EXHIBIT IV

CONSOLIDATED STATEMENTS OF INCOME

	FOR THE SIX MONTHS ENDED,
	(A)	(B)		(A) - (B)
	June 30, 2010	June 30, 2009		CHANGE		%
(In US$ thousand)
INCOME
STATEMENT DATA:
Interest
income	$ 54,716	$	79,285	$	(24,569	)	(31	)%
Interest
expense	(21,233	)	(47,069	)	25,836		(55	)
NET
INTEREST INCOME	33,483		32,216		1,267		4
Provision
for loan losses	(8,882	)	(34,737	)	25,855		(74	)
NET
INTEREST INCOME, AFTER REVERSAL
(PROVISION)
FOR LOAN LOSSES	24,601		(2,521	)	27,122		(1,076	)
OTHER
INCOME (EXPENSE):
Reversal
(provision) for losses on off-balance sheet credit risk	13,245		20,469		(7,224	)	(35	)
Fees
and commissions, net	5,178		2,901		2,277		78
Derivative
financial instrument and hedging	(1,294	)	(921	)	(373	)	40
Impairment
of assets, net of recoveries	233		(94	)	327		(348	)
Net
gain from investment fund trading	(11,843	)	16,614		(28,457	)	(171	)
Net
gain (loss) from trading securities	(1,981	)	10,815		(12,796	)	(118	)
Gain
(loss) on foreign currency exchange	744		(375	)	1,119		(298	)
Other
income (expense), net	188		452		(264	)	(58	)
NET
OTHER INCOME (EXPENSE)	4,470		49,861		(45,391	)	(91	)
OPERATING
EXPENSES:
Salaries
and other employee expenses	(10,887	)	(10,417	)	(470	)	5
Depreciation,
amortization and impairment of premises and equipment	(1,277	)	(1,381	)	104		(8	)
Professional
services	(2,308	)	(1,676	)	(632	)	38
Maintenance
and repairs	(694	)	(527	)	(167	)	32
Expenses
from the investment fund	(535	)	(2,119	)	1,584		(75	)
Other
operating expenses	(4,373	)	(3,647	)	(726	)	20
TOTAL
OPERATING EXPENSES	(20,074	)	(19,767	)	(307	)	2
Net
Income	$ 8,997	$	27,573	$	(18,576	)	(67	)
Net
Income (loss) attributable to the redeemable noncontrolling
interest	(2,762	)	378		(3,140	)	(831	)
Net
Income attributable to Bladex	$ 11,759	$	27,195	$	(15,436	)	(57	)%

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

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

| | FOR
THE THREE MONTHS ENDED, | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | June
30, 2010 | | | | March
31, 2010 | | | | June
30, 2009 | | | |
| | 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 | $ 468 | $ 0.2 | 0.20 | % | $ 394 | $ 0.2 | 0.19 | % | $ 685 | $ 0.4 | 0.23 | % |
| Loans,
net of unearned income & deferred loan fees | 2,912 | 23.5 | 3.20 | | 2,717 | 21.7 | 3.20 | | 2,543 | 29.8 | 4.64 | |
| Non-accrual
loans | 48 | 0.8 | 6.45 | | 51 | 1.1 | 8.62 | | 0 | 0.0 | n.m. | () |
| Trading
assets | 51 | 0.8 | 6.13 | | 50 | 0.8 | 6.22 | | 161 | 3.1 | 7.67 | |
| Investment
securities | 464 | 2.0 | 1.70 | | 458 | 2.0 | 1.75 | | 598 | 4.6 | 3.05 | |
| Investment
fund | 198 | 0.4 | 0.73 | | 200 | 1.2 | 2.42 | | 162 | 0.3 | 0.73 | |
| TOTAL
INTEREST EARNING ASSETS | $ 4,140 | $ 27.7 | 2.65 | % | $ 3,869 | $ 27.0 | 2.79 | % | $ 4,150 | $ 38.3 | 3.65 | % |
| Non
interest earning assets | 45 | | | | 46 | | | | 49 | | | |
| Allowance
for loan losses | (75 | ) | | | (74 | ) | | | (81 | ) | | |
| Other
assets | 11 | | | | 12 | | | | 5 | | | |
| TOTAL
ASSETS | $ 4,121 | | | | $ 3,853 | | | | $ 4,124 | | | |
| INTEREST
BEARING LIABILITIES | | | | | | | | | | | | |
| Deposits | $ 1,395 | $ 1.7 | 0.50 | % | $ 1,316 | $ 2.2 | 0.66 | % | $ 1,206 | $ 3.3 | 1.08 | % |
| Trading
liabilities | 4 | 0.0 | 0.00 | | 4 | 0.0 | 0.00 | | 11 | 0.0 | 0.00 | |
| Investment
fund | 0 | 0.3 | n.m. | () | 0 | 0.2 | n.m. | () | 0 | 0.5 | n.m. | () |
| Securities
sold under repurchase agreement and Short-term borrowings | 506 | 1.3 | 1.04 | | 299 | 1.0 | 1.28 | | 1,011 | 7.6 | 2.98 | |
| Borrowings
and long term debt | 1,380 | 7.1 | 2.04 | | 1,394 | 7.4 | 2.13 | | 1,154 | 10.0 | 3.43 | |
| TOTAL
INTEREST BEARING LIABILITIES | $ 3,284 | $ 10.5 | 1.26 | % | $ 3,013 | $ 10.7 | 1.43 | % | $ 3,382 | $ 21.5 | 2.51 | % |
| Non
interest bearing liabilities and other liabilities | $ 120 | | | | $ 130 | | | | $ 101 | | | |
| TOTAL
LIABILITIES | 3,404 | | | | 3,143 | | | | 3,483 | | | |
| Redeemable
noncontrolling interest in the investment fund | 42 | | | | 40 | | | | 5 | | | |
| STOCKHOLDERS'
EQUITY | 675 | | | | 670 | | | | 635 | | | |
| TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,121 | | | | $ 3,853 | | | | $ 4,124 | | | |
| NET
INTEREST SPREAD | | | 1.38 | % | | | 1.37 | % | | | 1.14 | % |
| NET
INTEREST INCOME AND NET INTEREST MARGIN | | $ 17.2 | 1.67 | % | | $ 16.3 | 1.71 | % | | $ 16.8 | 1.62 | % |

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

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

| | FOR
THE SIX MONTHS ENDED, | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | June
30, 2010 | | | | June
30, 2009 | | | |
| | AVERAGE | | AVG. | | AVERAGE | | AVG. | |
| | BALANCE | INTEREST | RATE | | BALANCE | INTEREST | RATE | |
| | (In
US$ million) | | | | | | | |
| INTEREST
EARNING ASSETS | | | | | | | | |
| Interest
bearing deposits with banks | $ 431 | $ 0.4 | 0.20 | % | $ 707 | $ 0.8 | 0.21 | % |
| Loans,
net of unearned income & deferred loan fees | 2,815 | 45.3 | 3.20 | | 2,588 | 62.4 | 4.80 | |
| Non-accrual
loans | 49 | 1.9 | 7.56 | | 0 | 0.0 | n.m. | () |
| Trading
assets | 50 | 1.6 | 6.17 | | 105 | 3.7 | 6.91 | |
| Investment
securities | 461 | 4.0 | 1.72 | | 600 | 11.3 | 3.76 | |
| Investment
fund | 199 | 1.6 | 1.57 | | 158 | 1.1 | 1.39 | |
| TOTAL
INTEREST EARNING ASSETS | $ 4,006 | $ 54.7 | 2.72 | % | $ 4,159 | $ 79.3 | 3.79 | % |
| Non
interest earning assets | 46 | | | | 51 | | | |
| Allowance
for loan losses | (75 | ) | | | (68 | ) | | |
| Other
assets | 11 | | | | 8 | | | |
| TOTAL
ASSETS | $ 3,988 | | | | $ 4,150 | | | |
| INTEREST
BEARING LIABILITIES | | | | | | | | |
| Deposits | $ 1,355 | $ 3.9 | 0.58 | % | $ 1,203 | $ 6.4 | 1.06 | % |
| Trading
liabilities | 4 | 0.0 | 0.00 | | 12 | 0.0 | 0.00 | |
| Investment
fund | 0 | 0.5 | n.m. | () | 0 | 1.4 | n.m. | (*) |
| Securities
sold under repurchase agreement and Short-term borrowings | 403 | 2.3 | 1.13 | | 1,019 | 16.3 | 3.17 | |
| Borrowings
and long term debt | 1,387 | 14.5 | 2.08 | | 1,162 | 23.0 | 3.93 | |
| TOTAL
INTEREST BEARING LIABILITIES | $ 3,149 | $ 21.2 | 1.34 | % | $ 3,396 | $ 47.1 | 2.76 | % |
| Non
interest bearing liabilities and other liabilities | $ 125 | | | | $ 135 | | | |
| TOTAL
LIABILITIES | 3,274 | | | | 3,531 | | | |
| Redeemable
noncontrolling interest in the investment fund | 41 | | | | 5 | | | |
| STOCKHOLDERS'
EQUITY | 673 | | | | 614 | | | |
| TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY | $ 3,988 | | | | $ 4,150 | | | |
| NET
INTEREST SPREAD | | | 1.38 | % | | | 1.04 | % |
| NET
INTEREST INCOME AND NET INTEREST MARGIN | | $ 33.5 | 1.69 | % | | $ 32.2 | 1.56 | % |

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

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME

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

| | SIX
MONTHS | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | ENDED | | | | | | | | | | | ENDED | | |
| | JUN
30/10 | JUN
30/10 | | | MAR
31/10 | DEC
31/09 | | SEP
30/09 | | JUN
30/09 | | JUN
30/09 | | |
| INCOME
STATEMENT DATA: | | | | | | | | | | | | | | |
| Interest
income | $ 54,716 | $ | 27,697 | | $ 27,019 | $ | 28,256 | $ | 34,423 | $ | 38,252 | $ | 79,285 | |
| Interest
expense | (21,233 | ) | (10,500 | ) | (10,733 | ) | (13,073 | ) | (17,070 | ) | (21,464 | ) | (47,069 | ) |
| NET
INTEREST INCOME | 33,483 | | 17,197 | | 16,286 | | 15,183 | | 17,353 | | 16,788 | | 32,216 | |
| Reversal
(provision) for loan losses | (8,882 | ) | (8,723 | ) | (159 | ) | 16,063 | | 380 | | (8,905 | ) | (34,737 | ) |
| NET
INTEREST INCOME (LOSS) AFTER REVERSAL (PROVISION) FOR LOAN
LOSSES | 24,601 | | 8,474 | | 16,127 | | 31,246 | | 17,733 | | 7,883 | | (2,521 | ) |
| OTHER
INCOME (EXPENSE): | | | | | | | | | | | | | | |
| Reversal
(provision) for losses on off-balance sheet credit risk | 13,245 | | 9,618 | | 3,626 | | (15,456 | ) | (1,549 | ) | (177 | ) | 20,469 | |
| Fees
and commissions, net | 5,178 | | 2,797 | | 2,382 | | 2,369 | | 1,463 | | 734 | | 2,901 | |
| Derivative
financial instrument and hedging | (1,294 | ) | (340 | ) | (953 | ) | (507 | ) | (1,105 | ) | (2,591 | ) | (921 | ) |
| Impairment
of assets, net of recoveries | 233 | | 0 | | 233 | | (27 | ) | 0 | | 0 | | (94 | ) |
| Net
gain (loss) from investment fund trading | (11,843 | ) | (10,343 | ) | (1,500 | ) | 2,906 | | 5,478 | | 4,918 | | 16,614 | |
| Net
gain (loss) from trading securities | (1,981 | ) | (502 | ) | (1,479 | ) | (638 | ) | 2,936 | | 7,653 | | 10,815 | |
| Net
gains on sale of securities available-for-sale | 0 | | 0 | | 0 | | 0 | | 546 | | 0 | | 0 | |
| Gain
(loss) on foreign currency exchange | 744 | | (568 | ) | 1,312 | | 1,830 | | (843 | ) | 705 | | (375 | ) |
| Other
income (expense), net | 188 | | 117 | | 71 | | 322 | | 138 | | 93 | | 452 | |
| NET
OTHER INCOME (EXPENSE) | 4,470 | | 779 | | 3,692 | | (9,201 | ) | 7,064 | | 11,336 | | 49,861 | |
| TOTAL
OPERATING EXPENSES: | (20,074 | ) | (10,032 | ) | (10,043 | ) | (9,897 | ) | (8,537 | ) | (8,622 | ) | (19,767 | ) |
| Net
Income | $ 8,997 | $ | (779 | ) | $ 9,776 | $ | 12,148 | $ | 16,260 | $ | 10,597 | $ | 27,573 | |
| Net
Income (loss) attributable to the redeemable noncontrolling
interest | (2,762 | ) | (2,442 | ) | (320 | ) | 233 | | 507 | | 109 | | 378 | |
| NET
INCOME ATTRIBUTABLE TO BLADEX | $ 11,759 | $ | 1,663 | | $ 10,096 | $ | 11,915 | $ | 15,753 | $ | 10,488 | $ | 27,195 | |
| SELECTED
FINANCIAL DATA | | | | | | | | | | | | | | |
| PER
COMMON SHARE DATA | | | | | | | | | | | | | | |
| Basic
earnings per share | $ 0.32 | $ | 0.05 | | $ 0.28 | $ | 0.33 | $ | 0.43 | $ | 0.29 | $ | 0.75 | |
| PERFORMANCE
RATIOS | | | | | | | | | | | | | | |
| Return
on average assets | 0.6 | % | 0.2 | % | 1.1 | % | 1.3 | % | 1.6 | % | 1.0 | % | 1.3 | % |
| Return
on average stockholders' equity | 3.5 | % | 1.0 | % | 6.1 | % | 7.1 | % | 9.5 | % | 6.6 | % | 8.9 | % |
| Net
interest margin | 1.69 | % | 1.67 | % | 1.71 | % | 1.60 | % | 1.76 | % | 1.62 | % | 1.56 | % |
| Net
interest spread | 1.38 | % | 1.38 | % | 1.37 | % | 1.18 | % | 1.28 | % | 1.14 | % | 1.04 | % |
| Operating
expenses to average assets | 1.02 | % | 0.98 | % | 1.06 | % | 1.05 | % | 0.88 | % | 0.84 | % | 0.96 | % |

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ million)

| | FOR
THE SIX MONTHS ENDED — JUN
30/10 | | JUN
30/09 | | FOR
THE THREE MONTHS ENDED — JUN
30/10 | | MAR
31/10 | | JUN
30/09 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| COMMERCIAL
DIVISION: | | | | | | | | | | |
| Net interest income (1) | $ 32.2 | | $ 33.9 | | $ 17.0 | | $ 15.2 | | $ 17.0 | |
| Non-interest
operating income (2) | 4.9 | | 3.3 | | 2.7 | | 2.2 | | 0.8 | |
| Operating expenses (3) | (13.7 | ) | (11.8 | ) | (6.7 | ) | (6.8 | ) | (5.1 | ) |
| Net operating income (4) | 23.4 | | 25.4 | | 13.0 | | 10.6 | | 12.7 | |
| Reversal
(provision) for loan and off-balance sheet credit losses,
net | 4.4 | | (14.3 | ) | 0.9 | | 3.5 | | (9.1 | ) |
| Impairment
of assets, net of recoveries | 0.2 | | (0.1 | ) | 0.0 | | 0.2 | | 0.0 | |
| NET
INCOME ATTRIBUTABLE TO BLADEX | $ 28.0 | | $ 11.0 | | $ 13.9 | | $ 14.3 | | $ 3.6 | |
| Average
interest-earning assets (5) | 2,864 | | 2,588 | | 2,960 | | 2,768 | | 2,543 | |
| End-of-period
interest-earning assets (5) | 3,096 | | 2,677 | | 3,096 | | 2,932 | | 2,677 | |
| TREASURY
DIVISION: | | | | | | | | | | |
| Net interest income
(loss) (1) | $ 1.1 | | $ 0.3 | | $ 0.6 | | $ 0.5 | | $ 0.8 | |
| Non-interest
operating income (loss) (2) | (2.4 | ) | 9.6 | | (1.4 | ) | (1.1 | ) | 5.8 | |
| Operating expenses (3) | (4.2 | ) | (4.5 | ) | (2.0 | ) | (2.2 | ) | (2.2 | ) |
| Net operating income
(loss) (4) | (5.5 | ) | 5.4 | | (2.8 | ) | (2.8 | ) | 4.4 | |
| NET
INCOME (LOSS) ATTRIBUTABLE TO BLADEX | $ (5.5 | ) | $ 5.4 | | $ (2.8 | ) | $ (2.8 | ) | $ 4.4 | |
| Average
interest-earning assets (6) | 942 | | 1,412 | | 982 | | 902 | | 1,444 | |
| End-of-period
interest-earning assets (6) | 1,140 | | 1,257 | | 1,140 | | 857 | | 1,257 | |
| ASSET
MANAGEMENT DIVISION: | | | | | | | | | | |
| Net interest income
(loss) (1) | $ 0.2 | | $ (2.0 | ) | $ (0.4 | ) | $ 0.6 | | $ (1.0 | ) |
| Non-interest
operating income (loss) (2) | (11.4 | ) | 16.6 | | (10.1 | ) | (1.3 | ) | 4.9 | |
| Operating expenses (3) | (2.3 | ) | (3.5 | ) | (1.3 | ) | (1.0 | ) | (1.3 | ) |
| Net operating income
(loss) (4) | (13.5 | ) | 11.1 | | (11.8 | ) | (1.7 | ) | 2.6 | |
| Net
income (loss) | (13.5 | ) | 11.1 | | (11.8 | ) | (1.7 | ) | 2.6 | |
| Net
income (loss) attributable to the redeemable noncontrolling
interest | (2.8 | ) | 0.4 | | (2.4 | ) | (0.3 | ) | 0.1 | |
| NET
INCOME (LOSS) ATTRIBUTABLE TO BLADEX | $ (10.7 | ) | $ 10.7 | | $ (9.4 | ) | $ (1.4 | ) | $ 2.5 | |
| Average
interest-earning assets (7) | 199 | | 158 | | 198 | | 200 | | 162 | |
| End-of-period
interest-earning assets (7) | 193 | | 166 | | 193 | | 205 | | 166 | |
| CONSOLIDATED: | | | | | | | | | | |
| Net interest income (1) | $ 33.5 | | $ 32.2 | | $ 17.2 | | $ 16.3 | | $ 16.8 | |
| Non-interest
operating income (loss) (2) | (8.9 | ) | 29.5 | | (8.8 | ) | (0.2 | ) | 11.5 | |
| Operating expenses (3) | (20.2 | ) | (19.8 | ) | (10.0 | ) | (10.0 | ) | (8.6 | ) |
| Net operating income (4) | 4.4 | | 41.9 | | (1.6 | ) | 6.1 | | 19.7 | |
| Reversal
(provision) for loan and off-balance sheet credit losses,
net | 4.4 | | (14.3 | ) | 0.9 | | 3.5 | | (9.1 | ) |
| Impairment
of assets, net of recoveries | 0.2 | | (0.1 | ) | 0.0 | | 0.2 | | 0.0 | |
| Net
income | 9.0 | | 27.6 | | (0.7 | ) | 9.8 | | 10.6 | |
| Net
income (loss) attributable to the redeemable noncontrolling
interest | (2.8 | ) | 0.4 | | (2.4 | ) | (0.3 | ) | 0.1 | |
| NET
INCOME ATTRIBUTABLE TO BLADEX | $ 11.8 | | $ 27.2 | | $ 1.7 | | $ 10.1 | | $ 10.5 | |
| Average
interest-earning assets | 4,006 | | 4,159 | | 4,140 | | 3,869 | | 4,150 | |
| End-of-period
interest-earning assets | 4,429 | | 4,100 | | 4,429 | | 3,994 | | 4,100 | |

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, securities held to maturity, and trading assets.

(7) Includes investment fund.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)		(B)		(C)
	30JUN10		31MAR10		30JUN09		Change in Amount
COUNTRY	Amount	% of Total Outstanding	Amount	% of Total Outstanding	Amount	% of Total Outstanding	(A) - (B)	(A) - (C)
ARGENTINA	$ 204	5.0	$ 187	5.0	$ 139	3.8	$ 17	$	65
BRAZIL	1,473	36.2	1,526	40.7	1,516	41.7	(53	)	(42	)
CHILE	279	6.8	281	7.5	99	2.7	(3	)	180
COLOMBIA	496	12.2	337	9.0	439	12.1	159		57
COSTA
RICA	133	3.3	107	2.8	137	3.8	27		(4	)
DOMINICAN
REPUBLIC	80	2.0	75	2.0	24	0.7	5		56
ECUADOR	109	2.7	93	2.5	70	1.9	16		40
EL
SALVADOR	34	0.8	48	1.3	122	3.4	(15	)	(88	)
FRANCE	22	0.5	0	0.0	0	0.0	22		22
GUATEMALA	91	2.2	71	1.9	127	3.5	20		(36	)
HONDURAS	28	0.7	27	0.7	21	0.6	1		7
JAMAICA	18	0.4	32	0.9	23	0.6	(14	)	(5	)
MEXICO	387	9.5	390	10.4	442	12.2	(3	)	(55	)
NETHERLANDS	150	3.7	0	0.0	0	0.0	150		150
PANAMA	121	3.0	97	2.6	185	5.1	24		(64	)
PERU	244	6.0	245	6.5	64	1.8	(0	)	180
TRINIDAD
& TOBAGO	39	0.9	56	1.5	59	1.6	(18	)	(20	)
UNITED
STATES	19	0.5	0	0.0	36	1.0	19		(17	)
URUGUAY	3	0.1	36	1.0	74	2.0	(33	)	(70	)
VENEZUELA	84	2.1	94	2.5	8	0.2	(10	)	76
OTHER	58	1.4	51	1.4	48	1.3	6		10
TOTAL CREDIT
PORTFOLIO (1)	$ 4,071	100 %	$ 3,753	100 %	$ 3,631	100 %	$ 318	$	440
UNEARNED INCOME AND
COMMISSION (2)	(4	)	(3	)	(4	)	(1	)	0
TOTAL
CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND
COMMISSION	$ 4,067		$ 3,750		$ 3,627		$ 317	$	440

(1) Includes book value of loans, fair value of investment securities, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks, credit default swap 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)
	30JUN10		31MAR10		30JUN09		Change in Amount
COUNTRY	Amount	% of Total Outstanding	Amount	% of Total Outstanding	Amount	% of Total Outstanding	(A) -
(B)	(A) - (C)
ARGENTINA	$ 204	5.8	$ 187	5.8	$ 139	4.9	$ 17	$	65
BRAZIL	1,346	37.9	1,399	43.2	1,354	47.4	(53	)	(8	)
CHILE	251	7.1	254	7.8	73	2.5	(3	)	178
COLOMBIA	342	9.6	194	6.0	251	8.8	147		91
COSTA
RICA	133	3.8	107	3.3	119	4.2	27		14
DOMINICAN
REPUBLIC	75	2.1	70	2.2	16	0.6	5		59
ECUADOR	109	3.1	93	2.9	70	2.4	16		40
EL
SALVADOR	18	0.5	32	1.0	67	2.3	(14	)	(49	)
FRANCE	22	0.6	0	0.0	0	0.0	22		22
GUATEMALA	80	2.2	60	1.8	85	3.0	20		(5	)
HONDURAS	28	0.8	27	0.8	21	0.7	1		7
JAMAICA	18	0.5	32	1.0	23	0.8	(14	)	(5	)
MEXICO	329	9.3	332	10.2	345	12.1	(3	)	(16	)
NETHERLANDS	150	4.2	0	0.0	0	0.0	150		150
PANAMA	77	2.2	53	1.6	91	3.2	24		(14	)
PERU	213	6.0	214	6.6	35	1.2	(1	)	178
TRINIDAD
& TOBAGO	39	1.1	56	1.7	59	2.1	(18	)	(20	)
UNITED
STATES	19	0.5	0	0.0	26	0.9	19		(7	)
URUGUAY	3	0.1	36	1.1	74	2.6	(33	)	(70	)
VENEZUELA	84	2.4	94	2.9	8	0.3	(10	)	76
OTHER	7	0.2	1	0.0	1	0.0	6		7
TOTAL COMMERCIAL PORTFOLIO (1)	$ 3,547	100 %	$ 3,241	100 %	$ 2,856	100 %	$ 306	$	691
UNEARNED INCOME AND
COMMISSION (2)	(4	)	(3	)	(4	)	(1	)	0
TOTAL
COMMERCIAL PORTFOLIO, NET OF UNEARNED INCOME AND
COMMISSION	$ 3,543		$ 3,238		$ 2,852		$ 305	$	692

(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

TREASURY PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF, — (A)	(B)	(C)	Change in Amount
COUNTRY	30JUN10	31MAR10	30JUN09	(A) - (B)	(A) - (C)
BRAZIL	$ 127	$ 128	$ 162	0	$ (34	)
CHILE	28	28	26	0	2
COLOMBIA	154	142	188	12	(33	)
COSTA
RICA	0	0	18	0	(18	)
DOMINICAN
REPUBLIC	5	5	8	0	(3	)
EL
SALVADOR	16	16	55	0	(39	)
GUATEMALA	11	11	43	0	(31	)
MEXICO	58	58	97	0	(39	)
PANAMA	44	43	94	0	(50	)
PERU	31	30	29	0	2
OTHER	50	50	57	0	(7	)
TOTAL
TREASURY PORTOFOLIO (1)	$ 524	$ 511	$ 775	$ 12	$ (252	)

(1) Includes securities available for sale and held to maturity, trading assets and contingent assets, which consist of credit default swap.

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

	QUARTERLY INFORMATION			Change in Amount
	(A)	(B)	(C)
COUNTRY	2QTR10	1QTR10	2QTR09	(A) - (B)		(A) - (C)
ARGENTINA	$ 60	$ 132	$ 77	$ (72	)	$ (17	)
BRAZIL	370	280	291	90		79
CHILE	20	52	65	(32	)	(45	)
COLOMBIA	264	78	10	186		254
COSTA
RICA	85	106	95	(21	)	(9	)
DOMINICAN
REPUBLIC	39	92	1	(53	)	38
ECUADOR	70	120	67	(50	)	3
EL
SALVADOR	11	5	13	7		(1	)
FRANCE	22	0	0	22		22
GUATEMALA	46	33	48	13		(2	)
HONDURAS	19	20	20	(1	)	(1	)
JAMAICA	37	50	22	(13	)	16
MEXICO	66	27	89	39		(23	)
NETHERLANDS	150	0	0	150		150
PANAMA	61	35	42	26		18
PERU	107	109	53	(1	)	55
TRINIDAD
& TOBAGO	42	36	60	6		(18	)
UNITED
STATES	19	0	10	19		9
URUGUAY	0	2	34	(2	)	(34	)
VENEZUELA	84	77	3	7		80
OTHER	1	1	27	0		(26	)
TOTAL
CREDIT DISBURSED (1)	$ 1,572	$ 1,254	$ 1,025	$ 318		$ 547

(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 swap and credit commitments).