Previous Statements by BLX
» Banco Latinoamericano de Comercio Exterior, S.A. Corporation in Singular Research Annual "Best of the Uncovereds" Conference Transcript
» Banco Latinoamericano de Exportaciones SA Q4 2008 Earnings Call Transcript
» Banco Latinoamericano de Exportaciones, S.A. at Singular Research's Annual "Best of the Uncovereds" Conference Presentation
Any comments that management makes today may include forward-looking statements. These are defined by the Private Securities Litigation Reform Act of 1995. They're based on information and data that is currently available. However, the actual performance may differ due to various factors, and these are cited in the Safe Harbor statement in the press release.And with that, I'm very pleased to turn it over to Mr. Jaime Rivera for his opening remarks. Please go ahead, Jaime. Jaime Rivera Thank you, Melanie, and good morning, ladies and gentlemen, and welcome to our quarterly conference call. Thank you for your continued interest in Bladex. Like Melanie just said, this is a special occasion for me. It is, after all, the last chance I get and the last opportunity that I have to exchange views with you regarding the current state of the company and the way I believe it's going to move forward. So because of that, because it is the last chance I get to talk to you from within the context of this forum, I hope you will allow me to change the format of the call just a bit. If you noticed, the press release -- in the press release, rather, I extended my comments on the quarter a bit more than I usually do. So I will be addressing the quarter only in a very short way because what I would want to emphasize and where I would want to spend a bit more time on is to outline the strategic drivers that I will -- I think that under Rubens' leadership and direction, will allow the bank to accelerate its growth and creation of value in the future. Following my comments, Christopher will cover the highlights, the growth about -- on the drivers of the second quarter, and then we will be glad to take up whatever questions and answers you might have on any topic that might interest you. And after that -- after that, I will go through and go through my literally closing comments. And then ask Mr. Amaral to give us a few thoughts on what he thinks what he's going to do about the current state of the company and about his preliminary comments and preliminary ideas of the way he plans to move the bank forward. Of course, we placed Mr. Amaral last in the program to make sure that you will all stay and listen to everything else he has to say.
So with that then, let me quickly say a couple of things about the quarter and it's nothing new. But I do want to emphasize 2 aspects, which I think of the second quarter that is, which I think are very important. Firstly, the issues off medium-term debt that increased the cost of funds during the quarter. We think of this as the same type of investment that we did in 2010. Remember when in 2010, we invested in the expansion of our network. We opened new offices and hired new people. So that expense has depressed the results of the quarter of the bank for a couple of quarters. But it turned out to be a fantastic investment. This is one of the reasons why the Commercial division has doubled its contribution the last year. And we're firmly convinced that the issuance of that medium-term debt will turn out to be equally beneficial to the bank over the medium term.And secondly, the provisions that we have to take this quarter. Those provisions came about, they are generic provisions, by the way, very importantly, they are generic provisions. And they are the result of a couple of, more than a couple of very good business opportunities that we didn't want to pass on. In both cases, we did -- let me just state clearly, we did not have to issue long-term debt. We did not have to do it. And the results for the second quarter would have been better. And certainly, we did not have -- we could have foregone on those very good transactions that we did and which brought about the need for additional provisions. We did not have to go through with them. And they would also have added to this quarter's results. That's not, as you know, the way we run the company. We run the company with a medium-term prospect in mind. And from the perspective of the future, both the issuance of medium-term debt and the pursuit of transactions such as the ones that we did this quarter that brought about the provisions about, will be extremely beneficial to the company.
So that's -- so those are the only 2 comments that I wanted to make on the quarter. Again, if you have questions after Christopher's view on the performance of the bank during the period, we will be glad to expand on the subject.Read the rest of this transcript for free on seekingalpha.com