IVQTR & Year 2001 Results

RNS Number:5127R
Banco LatinoamericanoDeExport SA
14 February 2002



FOR IMMEDIATE RELEASE





            BANCO LATINOAMERICANO DE EXPORTACIONES, S.A. ("BLADEX")

               REPORTS FOURTH QUARTER AND FULL YEAR 2001 RESULTS


Panama City, Republic of Panama, February 7, 2002 - Banco Latinoamericano de
Exportaciones, S.A. ("BLADEX" or the "Bank") (NYSE: BLX), a specialized
multinational bank established to finance trade in the Latin American and the
Caribbean region, today reported results for the fourth quarter and year ended
December 31, 2001. Net loss for the fourth quarter was $76.7 million, compared
with net income of $22.9 million reported in the fourth quarter of 2000. Net
loss per common share after preferred dividends was $4.43 for the fourth quarter
of 2001, compared with net earnings per share of $1.16 reported for the fourth
quarter of 2000. The Bank's results in the fourth quarter were affected by a
$106 million increase in the Bank's allowance for credit losses and impairment
of securities related to the situation in Argentina.

The average number of common shares outstanding for the fourth quarter of 2001
was 17,372,047 shares compared to 19,429,213 shares for the fourth quarter of
2000.

For the year ended December 31, 2001, the Bank reported net income of $2.5
million, compared with $97.1 million for the year ended December 31, 2000.
Earnings per common share after preferred dividends were $0.06 per common share,
compared to $4.84 for 2000.

The average number of common shares outstanding for the year ended December 31,
2001 was 18,101,751 shares compared to 19,782,871 shares for the year ended
2000.

Commenting on the Bank's performance, Jose Castaneda, chief executive officer
said, "As we have been advising shareholders and investors in our communications
over the last several quarters, the operating environment in the Latin American
region deteriorated throughout 2001. This has increased the risk perception of
the region and has contributed directly to a less successful performance by the
Bank than we had hoped. The overriding issue in recent months has been the
rapidly worsening situation in Argentina and its impact on the Bank's Argentine
portfolio. A year ago this portfolio totaled approximately $1.5 billion but
through pro-active management we have reduced this exposure by nearly one-third
to approximately $1.1 billion today."

   There will be a conference call on February 8, 2002 at 11:00 a.m. ET (U.S.
                                     time).

                            Please call 877-925-2339


The Bank does not hold Argentine sovereign debt. The distribution of the credit
portfolio, which is all US dollar-denominated, is as follows:

                                                ARGENTINA
                                              DEC-31-00       SEP-30-01       DEC-31-01       FEB-05-02
Controlled subsidiaries of major US &                  19%             22%             20%             22%
European Banks
Branches of major US & European Banks                   6%              4%              5%              5%
Controlled subsidiaries of major US &                  21%             19%             21%             23%
European Corporations
Largest government owned banks                         31%             29%             31%             24%
Local banks                                            13%             13%             11%             13%
Local corporations                                     10%             13%             12%             13%


"The current situation in Argentina is extraordinarily fluid and uncertain. The
government is issuing new policies and regulations almost daily in an attempt to
deal with financial turmoil and an economy which has endured four years of
recession. In the absence of any clarity about the timing or nature of resolving
the myriad of issues facing the country, BLADEX management and Board are taking
a conservative position relative to the Bank's credit portfolio in Argentina.
The deterioration of the economy may ultimately affect the financial condition
of the Bank's obligors in the private sector, including banks and corporations.
Therefore, a decision has been made to increase our allowance for credit losses
and impairment of securities by $106 million to a total of $235 million."

"In addition, the Board has suspended dividends on common shares, believing that
it is in the best interests of shareholders to conserve the Bank's capital
resources until the probable outcome of the Bank's exposure to Argentina is
clear."

"In light of the considerable progress which the Bank has made in recent years,
these actions have been particularly painful. And while the near-term outlook is
uncertain, BLADEX management and Board have a clear strategy to achieve
profitable growth in the future. Until economic stability returns to the region,
which we believe it inevitably will, investors should take comfort in the Bank's
strong capitalization with a Tier 1 capital adequacy ratio at December 31, 2001
which is three times the minimum required by the Federal Reserve Board and the
Basle Accord. Further deterioration in the Bank's loan portfolio may reduce this
ratio. In the months and years ahead, as the governments of the region seek to
accelerate their domestic economies through trade, the Bank will be in a unique
position to consolidate its market leading position in trade finance, our core
competency, which should be in great demand. In addition top tier corporate
business will continue as a major element in the Bank's growth strategy," he
concluded.


The political and economic situation of Argentina, over which the Bank has no
control, could have a material adverse effect on the Bank's business, financial
condition, results of operations and prospects. Allowances for credit losses
plus equity funds amounted to $821 million at December 31, 2001 which, based
upon known and available information, the Bank believes should be adequate to
absorb any material adverse effect on the financial condition of the Bank. The
Bank will continue to monitor developments in Argentina closely and intends to
take appropriate steps as more information and clarity on the government's
action regarding external debt and their effects on the Bank become available.

The following table sets forth the condensed profit and loss statements for the
fourth and third quarters of 2001 and the fourth quarter of 2000:

                      (In $ millions, except percentages)
                                                  IVQ00       IIIQ01      IVQ01
Operating net interest income                         14.2         17.0       18.6
Effect of interest rate gap                            1.1          3.7        5.7
Interest income on available capital funds            13.8          8.0        5.4
One-time interest income and adjustments               0.0          0.0       -1.7
Net interest income                                   29.2         28.6       28.0
Net commission and other income                        4.7          5.0        3.7
Derivatives and hedging activities                     0.0         -3.7        5.5
Net revenues                                          33.9         29.9       37.2
Operating expenses                                     5.0          5.2        3.2

Core operating expenses
Other operating expenses *                             1.1          1.8        4.7
Operating expenses                                     6.1          7.0        7.9
Operating income                                      27.7         22.9       29.3
Provision for credit losses and impairment of          4.8          4.0      106.0
securities
Net income                                            22.9         18.9      -76.7

(*) Other operating expenses include continuing investments in technology,
strategic additions to personnel, and strategic initiatives as well as expenses
associated with the structured transaction unit in New York.

Compared with the fourth quarter of 2000, net revenue in the latest quarter, net
of interest income on available capital and one-time items, increased by 40%.
Also see Exhibit I hereto, which sets forth the Bank's consolidated statement of
income for the fourth quarter of 2001 as compared to the fourth quarter of 2000.

The following table sets forth the condensed profit and loss statements for the
year ended December 31, 2001 and 2000:


                      (In $ millions, except percentages)
                                                            2000         2001
Operating net interest income                                   60.3         66.8
Effect of interest rate gap                                      0.9         18.8
Interest income on available capital funds                      51.2         34.0
One-time interest income and adjustments                         2.1         -0.8
Net interest income                                            114.5        118.8
Net commission and other income                                 22.7         16.1
Derivatives and hedging activities                               0.0          7.4
One-time commission income                                       0.3          3.1
Net revenues                                                   137.5        145.3
Operating expenses                                              18.6         18.5

Core operating expenses
Other operating expenses *                                       2.6          7.9
Operating expenses                                              21.2         26.4
Operating income                                               116.3        118.9
Provision for credit losses and impairment of                   19.2        117.5
securities
Cumulative effect of accounting changes (SFAS 133)                 -          1.1
Net income                                                      97.1          2.5

(*) Other operating expenses include continuing investments in technology,
strategic additions

to personnel, and expenses associated strategic initiatives as well as the
structured transaction unit in New York.

Also see Exhibit III hereto, which sets forth the Bank's consolidated statement
of income for the year ended December 31, 2001 as compared to the same period of
2000.


BUSINESS

The average credit portfolio (loans and selected investment securities net of
unearned income, plus acceptances and contingencies) for the fourth quarter of
2001 was $6,666 million. The following table sets forth the Bank's daily average
credit portfolio for each quarter in the fifteen-month period ended December 31,
2001:

                      (In $ millions, except percentages)
                                                          IVQ00       IQ01      IIQ01      IIIQ01      IVQ01

DAILY AVERAGE CREDIT PORTFOLIO (1)                        6,306      6,646      6,745       6,814      6,666
QUARTERLY GROWTH RATE OF DAILY AVERAGE CREDIT PORTFOLIO                                                 -2%
(%)                                                         4%         5%         1%         1%


 1. Includes the average of loans and selected investment securities net of
    unearned income, plus acceptances and contingencies.

The following table sets forth the Bank's daily average credit portfolio as well
as the daily average loan portfolio (loans and selected investment securities
net of unearned income) and the daily average acceptances and contingencies for
each month in the six-month period ended December 31, 2001:

                      (In $ millions, except percentages)
                                                 JUL01       AUG01       SEP01       OCT01       NOV01       DEC01




DAILY AVERAGE LOAN PORTFOLIO (1)                    5,667       5,655       5,579       5,674       5,593       5,423
DAILY AVERAGE ACCEPTANCES & CONTINGENCIES           1,206       1,187       1,146       1,138       1,130       1,047
DAILY AVERAGE CREDIT PORTFOLIO (2)                  6,873       6,842       6,725       6,812       6,723       6,469
MONTHLY GROWTH RATE OF DAILY AVERAGE LOAN
PORTFOLIO (%)                                       6%          0%          -1%         2%          -1%         -3%
MONTHLY GROWTH RATE OF DAILY AVERAGE CREDIT
PORTFOLIO (%)                                       4%          0%          -2%         1%          -1%         -4%


 1. Includes loans net of unearned income plus selected investment securities.

 2. Includes the average loan portfolio net of unearned income, plus acceptances
    and contingencies.


At December 31, 2001, (i) the Bank's outstanding credit portfolio, net of
unearned income, was $6,404 million, (ii) the loan portfolio, net of unearned
income, was $5,390 million and (iii) acceptances and contingencies amounted to
$1,014 million. At December 31, 2001, approximately $4,83658 million or 755% in
principal amount of the Bank's credit portfolio was outstanding to borrowers in
the following four countries: Brazil ($2,461 million or 38%); Argentina ($1,143
million or 18%); Mexico ($1,062 million or 17%); and Peru ($170 million or 3%).
A comparative credit distribution by country is shown in Exhibit VIII hereto.


ASSET QUALITY

At December 31, 2001 the Bank's past due loans and impaired securities amounted
to $147 million as compared to $18 million at December 31, 2000.

At January 31, 2002, past due loans and impaired securities amounted to $194
million. The following table sets forth the Bank's allowance for credit losses
for the quarters ended December 31, 2000 and December 31, 2001:


                                               For the twelve months ended

                                                    December 31, 2000     December 31, 2001
Allowance for credit losses                           (In $ millions, except percentages)
                                                                  
    At beginning of period                                        130.5                 132.6
                                                                   
    Provisions charged to expense                                  19.2                 117.5

    Recoveries                                                      0.3                   0.3
                                                                   
    Charged off loans                                              17.4                  10.4
                                                                      
    Reversal due to SFAS 133 adoption                                 0                   5.0

    Balance at end of period                                      132.6                 235.0


NET REVENUES

Net revenues (net interest income and commission income less commission expense
plus Derivatives and hedging activities plus other income) for the fourth
quarter of 2001 grew 10% compared to the fourth quarter of 2000. Net revenues
for the year ended December 31, 2001 grew 6% compared to the year ended December
31, 2000. The following table shows net revenues for the periods set forth
below:

                                (In $ millions)

                                  IVQ00           IIIQ01           IVQ01           2000            2001
Net interest income                     29.1             28.6            28.0           114.5           118.8
Commission income                        4.9              5.3             3.9            24.0            15.5
Commission expenses                    (0.3)            (0.3)           (0.3)           (1.1)           (1.2)
Derivatives and hedging                  0.0            (3.7)             5.5             0.0             7.4
activities
Other income                             0.0              0.0             0.0             0.1             4.9
Net revenues                            33.8             29.9            37.2           137.5           145.3



NET INTEREST INCOME

Net interest income amounted to $28.0 million in the fourth quarter of 2001
compared to $29.1 million for the fourth quarter of 2000, representing a
decrease of 4%. The net interest margin (net interest income divided by the
average balance of interest-earning assets) and net interest spread (average
yield earned on interest-earning assets less the average rate paid on
interest-bearing liabilities) for the fourth quarter of 2001 were 1.82% and
1.33%, respectively.

Net interest income amounted to $118.8 million in the year ended December 31,
2001 compared to $114.5 million for the same period in 2000, representing an
increase of 4%. The net interest margin and net interest spread for the year
ended December 31, 2001 were 2.00% and 1.32%, respectively.

The table below sets forth the net interest margin and the net interest spread
for each of the periods listed below:

                         OCT01      NOV01      DEC01      IVQ00      IIIQ01      IVQ01      2000(1)      2001
Net Interest Margin      1.87%      1.87%      1.71%         2.16%       1.86%      1.82%       2.23%      2.00%
Net Interest Spread      1.34%      1.38%      1.27%         1.06%       1.25%      1.33%       1.13%      1.32%


    (1) Excluding an adjustment in IQ00 of $525 thousand of interest income
    relating to 1999, and excluding one-time interest income of $1.7 million
    received during the IIIQ00. The net interest margin and net interest spread
    without this adjustment were 2.27% and 1.18%, respectively, for the year
    ended December 31, 2000.

The Bank estimates that the decline of 4 basis points in the net interest margin
during the fourth quarter of 2001, as compared to the third quarter of 2001, was
mainly due to:


 i. Lower interest rates, which generated a lower return on the Bank's available
    capital funds, and at the same time had a positive effect on the Bank's
    interest rate gap, resulting in a negative effect of 4 basis points on the
    net interest margin;

ii. Higher lending margins, which had a positive effect of 11 basis points on
    the net interest margin; and

iii. The reversal of interests accrued on certain loans and investments
    classified as non-accruing loans and impaired investments, which had a
    negative effect of 11 basis points on the net interest margin.

The decline of 23 basis points in the net interest margin for the year ended
December 31, 2001 compared to the same period in 2000 (as adjusted) was mainly
due to:


 i. Lower interest rates, which generated a lower return on the Bank's available
    capital funds, and at the same time had a positive effect on the Bank's
    interest rate gap, resulting in a negative effect of 15 basis points on the
    net interest margin;

ii. Lower lending margins, which had a negative effect of 7 basis points on the
    net interest margin; and

iii. The reversal of accumulated interests on certain loans and investments
    classified as non-accruing loans and impaired investments, which had a
    negative effect of 1 basis point on the net interest margin.

COMMISSION INCOME

Commission income for the fourth quarter of 2001 was $3.9 million, compared to
$4.9 million for the fourth quarter of 2000. Commission income for the year
ended December 31, 2001 was $15.5 million, compared to $24.0 million for the
same period of 2000. The following table shows the components of commission
income for the periods set forth below:

                                (In $ thousands)

COMMISSION INCOME                         IVQ00          IIIQ01         IVQ01           2000           2001
Letters of credit                              1,816          1,472          1,709          7,111          5,794
Guarantees:
Options                                          302              0              0          1,529              0
Other guarantees                               1,600          1,548          1,234          7,487          5,546
Country risk coverage business                 1,076            732            687          6,595          3,061
Loans                                             13            112            234            186            428
Asset sales                                      120          1,434             22          1,077            565
Other commission income                           16              4              8             44            105
TOTAL COMMISSION INCOME INCOME                 4,944          5,301          3,895         24,029         15,499


OPERATING EXPENSES

Total operating expenses for the fourth quarter of 2001 increased 29% compared
to the fourth quarter of 2000. Total operating expenses for the year ended
December 31, 2001 increased 25% compared to the same period of 2000. The
following table shows the components of total operating expenses for the periods
set forth below:

                                (In $ thousands)
OPERATING EXPENSES                                IVQ00         IIIQ01         IVQ01          2000          2001

Salaries and other employee expenses                  2,345          2,675         3,736          8,822        11,388
Bonus paid on previous year performance                   0              0             0            239           419
Provision for performance bonus for employees            41              0        -1,919          1,581             0

Communications                                          225            190           134            872           733
Depreciation of premises and equipment                  333            292           267          1,142         1,195
Professional services                                   899          1,408           201          3,876         3,074
Maintenance and repairs                                 209            163           252            645           739
Rent of office and equipment                            197            244           317            584           936
Pre-operating costs                                     925              0         2,967            925         2,967
Other operating expenses                                947          2,049         1,947          2,494         4,943
TOTAL OPERATING EXPENSES                             6,123          7,022         7,902         21,180         26,394

The increase of 29% in operating expenses during the year ended December 31,
2001, as compared to the same period in 2000, was due to continuing investments
in technology, strategic additions to personnel, expenses associated with our
new representative offices, the structured transaction unit in New York and
consulting fees related to business initiatives.

The efficiency ratio (total operating expenses to net revenues) for the fourth
quarter of 2001 was 21.2%.


PERFORMANCE AND CAPITAL RATIOS

The return on average stockholders' equity and return on average assets for 2001
was 0.2% and 0.0%, respectively, compared to 14.0% and 1.9%, respectively, at
December 31, 2000.

The ratio of common equity to total assets at December 31, 2001 was 10.1%,
compared to 12.4% at December 31, 2000, and compared to 11.0% at September 30,
2001. Although the Bank is not subject to the capital adequacy requirements of
the Federal Reserve Board, if the Federal Reserve Board risk-based capital
adequacy requirements were applied, the Bank's Tier 1 and Total Capital Ratios
would be 15.7% and 17.3%, respectively, as of December 31, 2001, compared to
19.7% and 21.4%, respectively, as of December 31, 2000 and compared to 17.1% and
18.7%, respectively, as of September 30, 2001.

Under its share repurchase program, which started in early December 2000, the
Bank has repurchased, through December 31, 2001, 1,750,505 Class E common shares
and 318,140 Class A common shares (which are not publicly traded) for a total of
$69.9 million. The average price paid by the Bank for the Class A common shares
and the Class E common shares from the inception of this share repurchase
program was $33.79. During the fourth quarter of this year, the Bank repurchased
184,800 Class E common shares for a total of $5.4 million. The average price
paid by the Bank for the Class E common shares during the fourth quarter of 2001
was $29.00.




Notes:


 a. Various numbers and percentages set out in this press release have been
    rounded and, accordingly, may not total exactly.

 b. Certain amounts set out in this press release for periods in the year 2000
    have been reclassified to make them uniform with the presentation adopted in
    2001.

There will be a conference call on February 8, 2002 at 11:00 a.m. ET in the U.S.
(11:00 a.m. Panamanian time). For those interested in participating, please call
877-925-2339 (in the United Sates) and, if outside the United States, please
dial the applicable international access code + U.S. country code followed by
847-413-2907. All participants should give the conference name "BLADEX Quarterly
Call" or the conference ID#5290067 3934429 to the telephone operator answering
the call five minutes before the call is set to begin.

For further information, please access our Web site on the Internet at:
www.blx.com or call:

Carlos Yap S.

Vice President, Finance and Performance Management

BANCO LATINOAMERICANO DE EXPORTACIONES S.A.

Head Office

Calle 50 y Aquilino de la Guardia

Apartado 6-1497 El Dorado

Panama City, Republic of Panama

Tel No. [phone]

Fax No. [phone]

E-mail Internet address: [e-mail]

- Or -

William W. Galvin

The Galvin Partnership

67 Mason Street

Greenwich, CT 06830

U.S.A.

Tel No. [phone]

Fax No. [phone]

E-mail Internet address: [e-mail]



The BLADEX Quarterly Earnings Report Conference Call will be available for
review on Conference Replay one hour after the conclusion of the conference
call. Please dial 888-843-8996 in the United States and, if outside the United
States, please dial the applicable international access code + U.S. country code
followed by 630-652-3044 and follow the instructions. The Conference ID# for the
call that will be replayed is 3934429 5290067.




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