Edgar Filing: LATIN AMERICAN EXPORT BANK

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 Or 15d-16 Of The
Securities Exchange Act of 1934

Long Form of Press Release

BANCO LATINOAMERICANO DE EXPORTACIONES, S.A.

(Exact name of Registrant as specified in its Charter)

LATIN AMERICAN EXPORT BANK

(Translation of Registrant’s name into English)

Calle 50 y Aquilino de la Guardia

Apartado 6-1497

El Dorado, Panama City

Republic of Panama

(Address of Registrant’s Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F

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

(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.

November 14, 2005

Banco Latinoamericano de Exportaciones, S.A.



	By:	/s/ Pedro Toll

	Name:	Pedro Toll
	Title:	Deputy Manager

FOR IMMEDIATE RELEASE

Bladex Reports Net Income of US$19.9 million for the Third Quarter of 2005

Third Quarter 2005 Financial Highlights

	•	Net income for the quarter was US$19.9 million, an increase of 46% over the US$13.6 million in the second quarter. These figures reflect the impact of a change made in accordance with U.S. GAAP in the credit loss reserve methodology. (See page 5 and Exhibit II for details)

	•	Net interest income increased 17% to US$11.7 million, and commission income, net, increased 51% to US$1.5 million.

	•	The credit portfolio increased 17% to US$3.4 billion; the trade portfolio increased 10% to US$2.5 billion, and credit disbursements increased 43% to US$2.0 billion.

Panama City, Republic of Panama, November 14, 2005 – Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX) (“Bladex” or the “Bank”) announced today its results for the third quarter ended September 30, 2005.

The table below depicts selected key figures and ratios for the periods indicated (the Bank’s financial statements are prepared in accordance with U.S. GAAP, and all figures are stated in U.S. dollars):

Key Financial Figures


(US$ million, except percentages and per share amounts)	9M04	9M05	3Q04	1Q05	2Q05	3Q05

Net Income ⁽¹⁾	$87.8	$63.7	$33.7	$30.2	$13.6	$19.9

Net Income before effect of a change in the credit loss reserve methodology	$87.8	$77.7	$33.7	$40.1	$8.0	$29.5

EPS ^{(1, 2)}	$2.23	$1.65	$0.86	$0.78	$0.35	$0.52

Return on Average Equity ⁽¹⁾	19.1%	13.6%	21.2%	18.4%	9.0%	13.0%

Tier 1 Capital Ratio	43.9%	38.2%	43.9%	41.6%	46.5%	38.2%

Net Interest Margin	1.72%	1.68%	1.74%	1.66%	1.60%	1.78%

⁽¹⁾ New credit loss reserve methodology is applied retroactively to January 1, 2005.
⁽²⁾ Earnings per share calculations are based on the average number of shares outstanding during each period.

Comments from the Chief Executive Officer

“During the third quarter, several of our initiatives underway began to bear fruit. As a result, the Bank’s principal business and financial indicators all moved in the right direction. We were particularly encouraged by the significant amount of new business generated, as reflected in our US$2.0 billion disbursements figure, a level commensurate with historical patterns for the company. The 51% growth in commission income is also an early indicator of both the effectiveness of our marketing plan, and of a market whose fundamentals appear to be moving in our favor.

Internally, we implemented a new credit loss reserve methodology, consistent with the very best practices in our industry. In addition, we finalized and recently announced the contracting of i-flex® solutions to revamp our technology platform, an effort which will afford Bladex a cutting edge solution to support the Bank’s evolving business, while improving internal efficiencies to meet the new reporting requirements coming into effect in the international capital markets.

On the business front, we were pleased to sign an exclusive agreement with Identrus® to provide our clients with a world-class digital identity solution that supports their trade, fraud prevention, and general digital credential needs.

The one recent event that we wish had turned out differently was the November 7th, Extraordinary Shareholders Meeting, called to vote on a series of changes to our Articles of Incorporation. During the meeting, a group of our Class A Government Shareholders, opposed to certain aspects of the proposal, exercised their super majority rights and, in voting against it, brought total Class A support to 57%, short of the 75% needed for approval. In practical terms, our current charter serves us well, but we remain convinced that we must continue striving to bring it up to the very best of modern standards. We will thus pursue discussions with our Class A shareholders that opposed the proposal to address their concerns, which related mostly to internal Class A matters, rather than business strategy considerations.”

BUSINESS OVERVIEW

The credit portfolio at September 30, 2005 stood at US$3.4 billion, the highest level in the last three and a half years. The following graph illustrates the Bank’s outstanding credit portfolio for the dates indicated.

Message

The 10% quarterly increase in the trade credit portfolio reflects higher lending activity mostly in Peru, Venezuela, and Trinidad & Tobago. The country distribution of the Bank’s credit portfolio is shown in Exhibit VIII.

Credit disbursements during the third quarter of 2005 amounted to US$2.0 billion, compared to US$1.4 billion during the second quarter of 2005, and US$1.0 billion during the third quarter of 2004.

NET INTEREST INCOME AND MARGINS

The table below shows the Bank’s net interest income, net interest margin (defined as net interest income divided by the average balance of interest-earning assets), and net interest spread (defined as average yield earned on interest-earning assets, less the average rate paid on interest-bearing liabilities) for the periods indicated:

(In US$ million, except percentages)

	9M04	9M05	3Q04	1Q05	2Q05	3Q05

Interest Income:

Accruing assets	$40.4	$73.7	$13.5	$21.8	$23.5	$28.4

Non-accruing assets	15.3	8.0	5.0	4.9	1.5	1.6

Interest Expense	(22.8)	(48.9)	(8.0)	(15.5)	(15.1)	(18.3)

Net Interest Income	$33.0	$32.8	$10.6	$11.1	$9.9	$11.7

Net Interest Margin ⁽¹⁾	1.72%	1.68%	1.74%	1.66%	1.60%	1.78%

Net Interest Spread ⁽²⁾	1.11%	0.67%	1.02%	0.70%	0.60%	0.73%

⁽¹⁾ Net interest income divided by average balance of interest-earning assets.
⁽²⁾ Average rate of average interest-earning assets less average rate of average interest-bearing liabilities.

3Q05 vs. 2Q05

The US$1.7 million, or 17%, increase in net interest income during the third quarter of 2005, was mainly the result of the increase in the Bank’s loan and investment portfolio and of higher net interest margins.

The main factors driving the increase in net interest spread and net interest margin were higher lending spreads over LIBOR on the loan portfolio, and a positive effect on the interest rate gap position of the Bank, as market rates increased. The net interest margin also benefited from the increased return on the Bank’s available capital, resulting from higher interest rates.

9M05 vs. 9M04

The decreases in net interest income, net interest margin, and net interest spread during the nine-month period ended September 30, 2005, compared to the previous year, was mainly due to lower interest collections on the Bank’s non-accruing assets, resulting mostly from principal reductions on the Argentine loan portfolio. In the case of the net interest income and the net interest margin, this effect was partially offset by higher returns on the Bank’s available capital, resulting from higher interest rates.

COMMISSION INCOME

The following table shows the components of commission income for the periods indicated:

(In US$ thousands)

	9M04	9M05	3Q04	1Q05	2Q05	3Q05


Letters of credit	$3,147	$2,220	$1,116	$650	$571	$999

Guarantees:

Country risk guaranty	892	747	285	184	249	314

Other guarantees	352	886	103	669	132	85

Loans and other	426	330	81	94	82	153

Commission Income	$4,817	$4,183	$1,584	$1,598	$1,034	$1,552

Commission Expense	(91)	(26)	(15)	(11)	(9)	(6)

Commission Income, net	$4,726	$4,157	$1,569	$1,587	$1,024	$1,546

Commission income, net, for the third quarter of 2005 increased US$522 thousand, or 51%, compared to the second quarter of 2005, mostly due to increased average volumes of Letters of Credit (62% growth) and, to a lesser extent, in loan commitments.

Compared to the same period of 2004, commission income, net, during the first nine months of 2005, decreased by US$569 thousand, or 12%, mostly due to lower pricing in the Letter of Credit business.

REVERSAL OF PROVISION FOR CREDIT LOSSES

(In US$ million)

	9M04	9M05	3Q04	1Q05	2Q05	3Q05


Reversal of provision for loan losses	$66.4	$48.9	$27.4	$19.8	$5.9	$23.2

Provision for off-balance sheet credit risk	(3.8)	(1.4)	(3.7)	3.0	(3.3)	(1.1)

Total Reversal of provision for credit losses before effect of a change in the credit loss reserve methodology	$62.5	$47.5	$23.7	$22.8	$2.6	$22.2

Effect of a change in the credit loss reserve methodology – current period	0.0	(16.7)	0.0	(12.6)	5.6	(9.6)

Cumulative effect on prior periods of a change in the credit loss reserve methodology	0.0	2.7	0.0	2.7	0.0	0.0

Total Reversal of provision for credit losses after effect of a change in the credit loss reserve methodology	$62.5	$33.6	$23.7	$12.9	$8.1	$12.5

During the quarter, Bladex implemented a new methodology for estimating generic allowances for credit losses. The Bank believes that its new methodology represents a significant improvement in the determination of an adequate level of allowances for credit losses, as the new methodology incorporates eight years of statistical data on Bladex’s historical portfolio performance in the calculation of Expected Loss and Loss Given Default ratios. This new approach replaces the use of general probability of default information from rating agencies in the former model.

The new methodology also establishes guidelines for the application of management’s qualitative judgment to complement the statistical estimate of losses. These guidelines take into consideration the potential impact of portfolio concentrations, the absence of a lender of last resort in a dollarized economy such as Panama, model imprecisions, and external macroeconomic factors.

The US$12.5 million reversal of provisions for credit losses for the third quarter of 2005 was mainly the net result of:

	i.	US$29.1 million reversal of specific provisions assigned to restructured credits in Argentina and Brazil, resulting from principal payments and pre-payments on these credits;

	ii.	US$9.3 million net increases in generic provisions as a result of increased credit exposures;

	iii.	US$2.4 million recoveries, mostly from previously charged-off loans; and a

	iv.	US$9.6 million incremental charge due to the change in credit loss reserve methodology.

The US$33.6 reversal of provisions for credit losses for the first nine months of 2005, was mainly the net result of:

	i.	US$63.9 million reversal of specific provisions assigned to restructured credits in Argentina and Brazil resulting from principal payments and pre-payments on these credits;

	ii.	US$18.7 million net increase in generic provisions as a result of increased credit exposures;

	iii.	US$2.5 million recoveries, mostly from previously charged-off loans; and a

	iv.	US$13.9 million incremental charge due to the change in credit loss reserve methodology, of which a charge of US$16.7 million corresponds to 2005, and a provision reversal of US$2.7 million to the cumulative effect on prior periods (January 1, 2001 to December 31, 2004).

The following table sets forth the allowance for credit losses for the periods indicated:

(In US$ million)

	For the nine months ended

	30-SEP-04	30-SEP-05

Allowance for credit losses
At beginning of period	$258.3	$139.5
Reversals charged to expense	(62.5)	(33.6)
Credit recoveries ⁽¹⁾	5.9	2.5
Credits written-off against the allowance	(1.6)	(5.1)

Balance at end of period	$200.0	$103.3


⁽¹⁾ During the nine months of 2004 consisted solely of Argentine loan recoveries. In the nine months of 2005, the amount is mostly related to a loan recovery from a Mexican corporation, which was charged-off in the year 2000.

RECOVERY OF IMPAIRMENT LOSS ON SECURITIES

In the third quarter of 2005, the Bank recovered US$0.1 million in impairment losses on securities, as a result of a recovery of an Argentine investment security, which had been charged-off in the first quarter of 2005. During the first nine months of 2005, the Bank recovered US$10.2 million in impairment losses on securities, mainly as a result of payments and pre-payments of obligations from Argentine clients.

OPERATING EXPENSES

The following table shows a breakdown of the components of operating expenses for the periods indicated:

(In US$ thousands)

	9M04	9M05	3Q04	1Q05	2Q05	3Q05

Salaries and other employee expenses	$7,252	$8,971	$2,382	$3,096	$2,728	$3,148

Depreciation of premises and equipment	1,027	681	330	244	240	197

Professional services	1,793	2,286	416	639	886	762

Maintenance and repairs	905	850	299	282	289	279

Other operating expenses	4,231	4,494	1,365	1,373	1,474	1,648

Total Operating Expenses	$15,208	$17,283	$4,792	$5,633	$5,616	$6,034

3Q05 vs. 2Q05

Operating expenses increased US$0.4 million, or 7%, on a quarter-to-quarter basis, mainly as a result of increased personnel expenses in the sale force, and outlays related to marketing.

9M05 vs. 9M04

During the first nine months of 2005 operating expenses increased US$2.1 million or 14%, compared to the same period of 2004, mainly due to increased expenses, primarily associated with the strengthening of the Bank’s commercial team, and consulting fees related to new product development.

CREDIT PORTFOLIO

The geographic composition of the Bank’s credit portfolio (excluding the non-accruing portfolio and investment securities) by client type and transaction type for the dates indicated, was as follows:


	Brazil	Mexico	Caribbean and Central America	Other South America	Total 30-SEP-05	Total 30-JUN-05	Total 30-SEP-04

Client type
Financial Entities	72%	11%	68%	79%	72%	81%	82%
Non-Financial Entities	28%	89%	32%	21%	28%	19%	18%

Transaction type
Trade	86%	28%	80%	79%	82%	84%	85%
Non-Trade	14%	72%	20%	21%	18%	16%	15%

As of September 30, 2005, 78% of the Bank’s outstanding credit portfolio (excluding the non-accruing credits and investment securities), was scheduled to mature within one year, compared to 81% as of June 30, 2005, and compared to 85% as of September 30, 2004.

During the third quarter of 2005, the Argentine non-accruing credit portfolio decreased by US$35 million, or 45%, to US$44 million. This reduction was primarily the net result of principal payments and pre-payments on loans and contingencies. Net of reserves, the Argentine non-accruing credit portfolio amounted to US$20 million at September 30, 2005, compared to US$30 million at June 30, 2005, and to US$178 million at September 30, 2004. During the quarter, the Bank extended US$27 million in new credits to Argentina.

As of September 30, 2005, the Bank’s non-accruing credit portfolio amounted to US$69 million, or 2.0% of the total credit portfolio. Of these, US$44 million were in Argentina and US$25 million in Brazil. Past due loans amounted to US$4 million, reflecting a loan to a Brazilian financial institution on non-accrual status.

The geographic distribution of the Bank’s credit portfolio at September 30, 2005 was as follows:

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Brazilian Exposure

At September 30, 2005, the Bank’s credit portfolio in Brazil amounted to US$1.5 billion, representing an increase of US$213 million, or 16%, compared to June 30, 2005.

At September 30, 2005, the Bank’s non-accruing credit portfolio in the country amounted to US$25 million, compared to US$36 million at June 30, 2005, and US$43 million at September 30, 2004. Of the US$25 million total, US$21 million was related to a restructured loan, which is current in interest and principal payments. The US$4 million balance represents a past due loan to a financial institution.

At September 30, 2005, the allowance for credit losses allocated to Brazil totaled US$28 million, including a US$9 million specific allowance assigned to the non-accruing loans in the country.

PERFORMANCE AND CAPITAL RATIOS

The following table sets forth the return on average stockholders’ equity and the return on average assets for the periods indicated:


	9M04	9M05	3Q04	1Q05	2Q05	3Q05

ROE (return on average stockholders’ equity) ⁽¹⁾	19.1%	13.6%	21.2%	18.4%	9.0%	13.0%
ROA (return on average assets) ⁽¹⁾	4.8%	3.3%	5.8%	4.6%	2.2%	3.0%

⁽¹⁾ New credit loss reserve methodology is applied retroactively to January 1, 2005.

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 at the dates indicated would be as follows:


	30-SEP-04	30-MAR-05	30-JUN-05	30-SEP-05

Tier 1 Capital Ratio	43.9%	41.6%	46.5%	38.2%
Total Capital Ratio	45.1%	42.9%	47.7%	39.4%

The lower Tier 1 capital ratio was mainly driven by the growth of the credit portfolio, the payment of quarterly dividends, US$8 million in share repurchases under the Bank’s previously authorized stock buyback program, and the effect of the new credit loss reserve methodology.

At September 30, 2005, the total number of common shares outstanding was 38.1 million, compared to 38.6 million at June 30, 2005, and compared to 39.1 million at September 30, 2004. The decrease in the number of common shares outstanding was the result of the open market share repurchase program for a total of US$50 million approved by the Board of Directors on August 5, 2004, of which the Bank has executed 43%, or US$21 million, as of September 30, 2005.

EVENTS

•	Selection of i-flex® - On November 10, 2005, Bladex announced that it has chosen i-flex® solutions (Reuters: IFLX.BO & IFLX.NS) to lead its technology transformation process. The solution has the capability to scale up to future expansion plans and the ability to serve as a platform for the Bank to offer new products and services to its clients. In addition, the technology will help put in place an efficient reporting infrastructure for the Bank in line with compliance requirements of regulatory bodies both in Panama and the USA.

•	Partnership with Identrus® – On October 19, 2005, Bladex announced an agreement with Identrus®, a global provider of trusted identity solutions, to lead the adoption of Identrus® digital certificates and identity credential solutions on an exclusive basis throughout Latin American and the Caribbean. The service aims at meeting the growing need of financial institutions, governments and commercial entities for electronic transaction security.

•	Website Relaunch - On October 5, 2005, Bladex relaunched its website, with new features which include a Portuguese version, a new section on Latin American economic statistics, expanded product information on the Bank’s commercial area, and a new section on the Bank’s history.

•	Quarterly Common Dividends – On October 14, 2005, Bladex paid the quarterly dividend of US$0.15 per common share, corresponding to the third quarter of 2005, to all common shareholders registered as of October 4, 2005.

•	Special Meeting of Stockholders – On November 7, 2005, Bladex held a special meeting of stockholders to amend the Bank’s Articles of Incorporation. The objective of the amendments was to broaden the scope of the Bank’s business activities to encompass a wider range of financial services in support of foreign trade and economic development in Latin America, and to update the Articles of Incorporation consistent with best practices related to corporate governance and shareholders’ rights for exchange listed companies. Although 85% of the voting shares represented at the meeting supported the proposal, a group of Government Shareholders (“Class A”) opposed to certain aspects of the proposal, voted against it, and prevented its passage. Overall, Class A votes in favor of the proposal totaled 57%, short of the 75% super-majority required for approval under the terms of the Bank’s Articles of Incorporation. The Bank will engage in conversations with its Class A shareholders which opposed the proposal in order to address their concerns.

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

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 trade portfolio, the increase in the number of the Bank’s clients, the increase in activities engaged in by the Bank that are derived from the Bank’s trade finance client base, anticipated operating income in future periods, the improvement in the financial 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 possibility that the Bank will need to renegotiate, restructure or write-off certain of its Argentine loans; the possibility of pre-payments; the anticipated growth of the Bank’s trade finance portfolio; the continuation of the Bank’s preferred creditor status; the effects of increased interest rates on the Bank’s financial condition; the implementation of the Bank’s strategies and initiatives, including its revenue diversification strategy; the pending applications in the United States to open a representative office in Miami, Florida; the adequacy of the Bank’s allowance for credit losses to address the likely impact of the Argentine crisis and other credit risks on the Bank’s loan portfolio; the necessity of making 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; and the adequacy of the Bank’s sources of liquidity to cover large deposit withdrawals.

About Bladex

Bladex is a supranational bank originally established by the Central Banks of Latin American and Caribbean countries to promote trade finance in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the Region, as well as Latin American and international commercial banks, along with institutional and retail investors. Through September 30, 2005, Bladex had disbursed accumulated credits of over US$133 billion.

EXHIBIT I

CONSOLIDATED BALANCE SHEET



	(A) Sep. 30, 2004			(B) Jun. 30, 2005			(C) Sep. 30, 2005			(C) - (B) CHANGE			%			(C) - (A) CHANGE			%

	(In US$ millions, except percentages)
ASSETS
Cash and due from banks		$1			$1			$1			$0			31	%		$0			22	%
Interest-bearing deposits with banks ⁽¹⁾		185			163			206			43			26			22			12
Securities purchased under agreements to resell		30			0			0			0			0			(30	)		(100	)
Securities available for sale		51			58			239			181			313			188			369
Securities held to maturity		28			27			27			(0	)		(1	)		(1	)		(5	)
Loans		2,121			2,244			2,363			119			5			242			11
Less:
Allowance for loan losses		(162	)		(76	)		(60	)		16			(21	)		103			(63	)
Unearned interest income and deferred commission		(4	)		(4	)		(3	)		1			(25	)		1			(34	)

Loans, net		1,955			2,164			2,301			136			6			346			18

Customers’ liabilities under acceptances		65			59			55			(4	)		(6	)		(10	)		(15	)
Premises and equipment, net		3			3			3			(0	)		(1	)		(0	)		(6	)
Accrued interest receivable		10			20			28			8			39			18			170
Other assets derivatives		0			0			2			2			0			2			0
Other assets		6			5			10			5			101			3			52


TOTAL ASSETS		$2,334			$2,501			$2,872			$371			15	%		$538			23	%


LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing - Demand		$20			$21			$16			$ (6	)		(27	)%		$(4	)		(21	)%
Interest-bearing - Time		846			884			990			106			12			144			17

Total Deposits		866			905			1,006			101			11			140			16

Short-term borrowings		362			522			570			48			9			208			57
Medium and long-term borrowings and placements		326			341			544			203			59			218			67
Acceptances outstanding		65			59			55			(4	)		(6	)		(10	)		(15	)
Accrued interest payable		5			13			18			6			46			13			237
Reserve for losses on off-balance sheet credit risk		38			33			44			10			31			6			16
Redeemable preferred stock		8			7			7			(0	)		(4	)		(2	)		(19	)
Other liabilities		51			16			19			3			16			(32	)		(63	)

TOTAL LIABILITIES		$1,722			$1,895			$2,262			$367			19	%		$540			31	%


STOCKHOLDERS’ EQUITY
Common stock, no par value, assigned value of US$6.67		280			280			280
Capital surplus		134			134			134
Capital reserves		95			95			95
Retained earnings		186			192			202
Treasury stock		(89	)		(98	)		(106	)
Other comprehensive income		7			2			5


TOTAL STOCKHOLDERS’ EQUITY		$612			$605			$610			$5			1	%		$ (3	)		(0	)%


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$2,334			$2,501			$2,872			$371			15	%		$538			23	%

⁽¹⁾	Interest-bearing deposits with banks includes pledged certificates of deposit in the amount of US$4.2 million at September 30, 2005 and at June 30, 2005 and US$2.2 million at September 30, 2004.

EXHIBIT II

CONSOLIDATED STATEMENTS OF INCOME


	FOR THE THREE MONTHS ENDED

	(A) Sep. 30, 2004			(B) Mar. 31, 2005			(C) Jun. 30, 2005			(D) Sep. 30, 2005			(D) - (C) CHANGE			%			(D) - (A) CHANGE			%

	(In US$ thousands, except percentages and per share amounts)
INCOME STATEMENT DATA:
Interest income		$18,535			$26,676			$25,061			$29,959			$4,898			20	%		$11,424			62
Interest expense		(7,950	)		(15,528	)		(15,122	)		(18,291	)		(3,169	)		21			(10,340	)		130

NET INTEREST INCOME		10,585			11,148			9,939			11,668			1,729			17			1,083			10
Reversal of provision for loan losses		27,413			19,819			5,863			23,213			17,350			296			(4,200	)		(15	)

NET INTEREST INCOME AFTER REVERSAL OF PROVISION FOR LOAN LOSSES		37,998			30,966			15,803			34,881			19,079			121			(3,117	)		(8	)

OTHER INCOME (EXPENSE):
Commission income, net		1,569			1,587			1,024			1,546			522			51			(23	)		(1	)
Reversal (provision) for losses on off-balance sheet credit risk		(3,683	)		2,977			(3,286	)		(1,051	)		2,235			(68	)		2,632			(71	)
Derivatives and hedging activities		24			0			0			2			2			n.a.	(*)		(22	)		(93	)
Recovery of impairment loss on securities		0			10,069			0			137			137			n.a.	(*)		137			n.a.	(*)
Gain on sale of securities available for sale		2,589			152			93			0			(93	)		(100	)		(2,589	)		(100	)
Gain (loss) on foreign currency exchange		5			(0	)		20			12			(8	)		(41	)		7			151
Other income (expense)		14			1			1			1			(0	)		(25	)		(13	)		(95	)

NET OTHER INCOME (EXPENSE)		518			14,786			(2,147	)		647			2,794			(130	)		128			25

OPERATING EXPENSES:
Salaries and other employee expenses		(2,382	)		(3,096	)		(2,728	)		(3,148	)		(420	)		15			(766	)		32
Depreciation of premises and equipment		(330	)		(244	)		(240	)		(197	)		43			(18	)		132			(40	)
Professional services		(416	)		(639	)		(886	)		(762	)		124			(14	)		(345	)		83
Maintenance and repairs		(299	)		(282	)		(289	)		(279	)		9			(3	)		20			(7	)
Other operating expenses		(1,365	)		(1,373	)		(1,474	)		(1,648	)		(174	)		12			(283	)		21

TOTAL OPERATING EXPENSES		(4,792	)		(5,633	)		(5,616	)		(6,034	)		(418	)		7			(1,242	)		26

NET INCOME BEFORE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		33,724			40,119			8,040			29,494			21,454			267			(4,230	)		(13	)
Effect of a change in the credit loss reserve methodology - current period		0			(12,607	)		5,550			(9,623	)		(15,173	)		(273	)		(9,623	)		n.a.	(*)

NET INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		$33,724			$27,512			$13,590			$19,871			$6,281			46			$(13,853	)		(41	)
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		0			2,733			0			0			0			n.a.	(*)		0			n.a.	(*)

NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS		$33,724			$30,245			$13,590			$19,871			$6,281			46	%		$(13,853	)		(41	)%


PER COMMON SHARE DATA:
Net income per share before cummulative effect of a change in the credit loss reserve methodology		0.86			0.71			0.35			0.52
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			0.07			—			—
Net income per share		0.86			0.78			0.35			0.52

Diluted earnings per share before cummulative effect of a change in the credit loss reserve methodology		0.85			0.70			0.35			0.51
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			0.07			—			—
Diluted earnings per share		0.85			0.77			0.35			0.51

Pro forma amounts assuming the new credit loss reserve methodology is applied retroactively:
Net Income as originally reported		$33,724
Effect on prior periods of a change in the credit loss reserve methodology		$(3,603	)
Net Income		$30,121
Net Income per share		0.77
Diluted earnings per share		0.76

COMMON SHARES OUTSTANDING:
Period average		39,310			38,895			38,738			38,481

PERFORMANCE RATIOS:
Return on average assets		5.8	%		4.6	%		2.2	%		3.0	%
Return on average stockholders’ equity		21.2	%		18.4	%		9.0	%		13.0	%
Net interest margin		1.74	%		1.66	%		1.60	%		1.78	%
Net interest spread		1.02	%		0.70	%		0.60	%		0.73	%
Total operating expenses to total average assets		0.83	%		0.85	%		0.90	%		0.91	%

(*)	“n.a.” means not applicable.

EXHIBIT III

CONSOLIDATED STATEMENTS OF INCOME


	FOR THE NINE MONTHS ENDED SEPTEMBER 30,

	2004			2005			CHANGE			%

	(In US$ thousands, except percentages)
INCOME STATEMENT DATA:
Interest income		$55,730			$81,696			$25,966			47
Interest expense		(22,768	)		(48,940	)		(26,172	)		115

NET INTEREST INCOME		32,962			32,755			(206	)		(1	)
Reversal of provision for loan losses		66,389			48,895			(17,494	)		(26	)

NET INTEREST INCOME AFTER REVERSAL OF PROVISION FOR LOAN LOSSES		99,351			81,650			(17,701	)		(18	)

OTHER INCOME (EXPENSE):
Commission income, net		4,726			4,157			(569	)		(12	)
Provision for losses on off-balance sheet credit risk		(3,844	)		(1,360	)		2,484			(65	)
Derivatives and hedging activities		48			2			(46	)		(96	)
Recovery of impairment loss on securities		0			10,206			10,206			n.a.	(*)
Gain on early extinguishment of debt		6			0			(6	)		(100	)
Gain on sale of securities available for sale		2,922			246			(2,676	)		(92	)
Gain (loss) on foreign currency exchange		(201	)		32			233			(116	)
Other income (expense)		17			2			(14	)		(86	)

NET OTHER INCOME (EXPENSE)		3,674			13,285			9,611			262

OPERATING EXPENSES:
Salaries and other employee expenses		(7,252	)		(8,971	)		(1,719	)		24
Depreciation of premises and equipment		(1,027	)		(681	)		346			(34	)
Professional services		(1,793	)		(2,286	)		(494	)		28
Maintenance and repairs		(905	)		(850	)		54			(6	)
Other operating expenses		(4,231	)		(4,494	)		(263	)		6

TOTAL OPERATING EXPENSES		(15,208	)		(17,283	)		(2,076	)		14

NET INCOME BEFORE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		87,817			77,652			(10,165	)		(12	)
Effect of a change in the credit loss reserve methodology - current period		0			(16,680	)		(16,680	)		n.a.	(*)

NET INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		$87,817			$60,972			$(26,845	)		(31	)
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		0			2,733			2,733			n.a.	(*)

NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS		$87,817			$63,705			$(24,112	)		(27	)


PER COMMON SHARE DATA:
Net income per share before cummulative effect of a change in the credit loss reserve methodology		2.23			1.58
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			0.07
Net income per share		2.23			1.65

Diluted earnings per share before cummulative effect of a change in the credit loss reserve methodology		2.23			1.56
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			0.07
Diluted earnings per share		2.23			1.63

Pro forma amounts assuming the new credit loss reserve methodology is applied retroactively:
Net Income as originally reported		$87,817
Effect on prior periods of a change in the credit loss reserve methodology		$(7,616	)
Net Income		$80,201
Net Income per share		2.04
Diluted earnings per share		2.03

COMMON SHARES OUTSTANDING:
Period average		39,338			38,703

PERFORMANCE RATIOS:
Return on average assets		4.8	%		3.3	%
Return on average stockholders’ equity		19.1	%		13.6	%
Net interest margin		1.72	%		1.68	%
Net interest spread		1.11	%		0.67	%
Total operating expenses to total average assets		0.83	%		0.89	%

(*)	“n.a.” means not applicable.

EXHIBIT IV

SUMMARY CONSOLIDATED FINANCIAL DATA
(Consolidated Statement of Income, Balance Sheets, and Selected Financial Ratios)


	FOR THE NINE MONTHS ENDED SEPTEMBER 30,

	2004			2005

(In US$ thousands, except per share amounts & ratios)
INCOME STATEMENT DATA:
Net interest income		$32,962			$32,755
Reversal of provision for loan losses and off-balance sheet credit risk		62,545			47,535
Commission income, net		4,726			4,157
Derivatives and hedging activities		48			2
Recovery of impairment loss on securities		0			10,206
Gain (loss) on early extinguishment of debt and foreign currency exchange		(195	)		32
Gain on sale of securities available for sale		2,922			246
Other income (expense)		17			2
Operating expenses		(15,208	)		(17,283	)

NET INCOME BEFORE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		87,817			77,652
Effect of a change in the credit loss reserve methodology - current period		0			(16,680	)

NET INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		87,817			60,972
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		0			2,733

NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS		$87,817			$63,705


BALANCE SHEET DATA (In US$ millions):
Securities purchased under agreements to resell		30			0
Investment securities		79			266
Loans, net		1,955			2,301
Total assets		2,334			2,872
Deposits		866			1,006
Short-term borrowings		362			570
Medium and long-term borrowings and placements		326			544
Total liabilities		1,722			2,262
Stockholders’ equity		612			610

PER COMMON SHARE DATA:
Net income per share		2.23			1.65
Diluted earnings per share		2.23			1.63

Pro forma amounts assuming the new credit loss reserve methodology is applied retroactively:
Net Income as originally reported		$87,817
Effect on prior periods of a change in the credit loss reserve methodology		$(7,616	)
Net Income		$80,201
Net Income per share		2.04
Diluted earnings per share		2.03

Book value (period average)		15.63			16.19
Book value (period end)		15.65			16.00

COMMON SHARES OUTSTANDING:
Period average		39,338			38,703
Period end		39,128			38,098

SELECTED FINANCIAL RATIOS:
ASSET QUALITY RATIOS:
Non-accruing loans and investments to total loan and investment portfolio ⁽¹⁾		15.2	%		2.0	%
Charge offs net of recoveries to total loan portfolio ⁽¹⁾		-0.2	%		0.1	%
Allowance for loan losses to total loan portfolio ⁽¹⁾		7.7	%		2.5	%
Allowance for loan losses to non-accruing loans		48.1	%		114.5	%
Allowance for losses on off-balance sheet credit risk to total contingencies		8.9	%		5.5	%

CAPITAL RATIOS:
Stockholders’ equity to total assets		26.2	%		21.2	%
Tier 1 capital to risk-weighted assets		43.9	%		38.2	%
Total capital to risk-weighted assets		45.1	%		39.4	%

⁽¹⁾	Loan portfolio is presented net of unearned interest income and commission.

EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES


	FOR THE THREE MONTHS ENDED,

	September 30, 2004								June 30, 2005								September 30, 2005

	AVERAGE BALANCE			INTEREST		AVG. RATE			AVERAGE BALANCE			INTEREST		AVG. RATE			AVERAGE BALANCE			INTEREST		AVG. RATE

	(In US$ millions, except percentages)
INTEREST EARNING ASSETS
Interest-bearing deposits with banks		$217			$0.8		1.41	%		$163			$1.2		2.96	%		$167			$1.4		3.24	%
Securities purchased under agreements to resell		90			0.5		2.17			0			0.0		n.a.	(*)		0			0.0		n.a.	(*)
Loans, net of unearned interest income & commission		1,688			11.1		2.58			2,107			20.6		3.86			2,202			24.7		4.39
Impaired loans		348			4.7		5.28			104			1.5		5.76			71			1.6		8.63
Investment securities		75			1.4		7.56			122			1.8		5.71			166			2.3		5.40


TOTAL INTEREST EARNING ASSETS		$2,419			$18.5		3.00	%		$2,495			$25.1		3.97	%		$2,606			$30.0		4.50	%


Non interest earning assets		59								76								81
Allowance for loan losses		(180	)							(81	)							(78	)
Other assets		7								7								9


TOTAL ASSETS		$2,304								$2,497								$2,618


INTEREST BEARING LIABILITITES

Deposits		$754			$3.1		1.59	%		$795			$6.1		3.04	%		$872			$7.9		3.53	%
Short-term borrowings		450			2.0		1.75			607			4.8		3.13			544			4.7		3.36
Medium and long-term borrowings and placements		369			2.9		3.05			370			4.2		4.50			481			5.7		4.68


TOTAL INTEREST BEARING LIABILITIES		$1,573			$8.0		1.98	%		$1,772			$15.1		3.38	%		$1,897			$18.3		3.77	%


Non interest bearing liabilities and other liabilities		$97								$116								$115

TOTAL LIABILITIES		1,670								1,888								2,012

STOCKHOLDERS' EQUITY		633								608								607


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$2,304								$2,497								$2,618


NET INTEREST SPREAD							1.02	%							0.60	%							0.73	%

NET INTEREST INCOME AND NET INTEREST MARGIN					$10.6		1.74	%					$9.9		1.60	%					$11.7		1.78	%

(*) “n.a.” means not applicable.

EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES


	FOR THE NINE MONTHS ENDED SEPTEMBER 30,

	2004								2005

	AVERAGE BALANCE			INTEREST		AVG. RATE			AVERAGE BALANCE			INTEREST		AVG. RATE

	(In US$ millions, except percentages)
INTEREST EARNING ASSETS
Interest-bearing deposits with banks		$229			$2.0		1.12	%		$157			$3.5		2.91	%
Securities purchased under agreements to resell		117			1.7		1.92			0			0.0		n.a.	(*)
Loans, net of unearned interest income & commission		1,759			33.2		2.48			2,156			63.5		3.88
Impaired loans		387			14.8		5.03			128			8.0		8.23
Investment securities		76			4.0		7.01			164			6.8		5.42


TOTAL INTEREST EARNING ASSETS		$2,567			$55.7		2.85	%		$2,606			$81.7		4.13	%


Non interest earning assets		59								73
Allowance for loan losses		(200	)							(86	)
Other assets		8								7


TOTAL ASSETS		$2,434								$2,600


INTEREST BEARING LIABILITITES

Deposits		$746			$7.5		1.32	%		$828			$19.3		3.07	%
Short-term borrowings		549			6.5		1.55			616			14.5		3.11
Medium and long-term borrowings and placements		424			8.8		2.73			420			15.2		4.76


TOTAL INTEREST BEARING LIABILITIES		$1,719			$22.8		1.74	%		$1,865			$48.9		3.46	%


Non interest bearing liabilities and other liabilities		100								109

TOTAL LIABILITIES		1,819								1,974

STOCKHOLDERS’ EQUITY		615								627


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$2,434								$2,600


NET INTEREST SPREAD							1.11	%							0.67	%

NET INTEREST INCOME AND NET INTEREST MARGIN					$33.0		1.72	%					$32.8		1.68	%


(*) “n.a.” means not applicable.

EXHIBIT VII

CONSOLIDATED STATEMENT OF INCOME
(In US$ thousands, except percentages & ratios)


	NINE MONTHS ENDED SEP 30/04			FOR THE THREE MONTHS ENDED															NINE MONTHS ENDED SEP 30/05

				SEP 30/04			DEC 31/04			MAR 31/05			JUN 30/05			SEP 30/05

INCOME STATEMENT DATA:
Interest income		$55,730			$18,535			$20,422			$26,676			$25,061			$29,959			$81,696
Interest expense		(22,768	)		(7,950	)		(11,358	)		(15,528	)		(15,122	)		(18,291	)		(48,940	)

NET INTEREST INCOME		32,962			10,585			9,064			11,148			9,939			11,668			32,755
Reversal of provision for loan losses		66,389			27,413			45,010			19,819			5,863			23,213			48,895

NET INTEREST INCOME AFTER REVERSAL OF PROVISION FOR LOAN LOSSES		99,351			37,998			54,074			30,966			15,803			34,881			81,650

OTHER INCOME (EXPENSE):

Commission income, net		4,726			1,569			1,201			1,587			1,024			1,546			4,157
Reversal (provision) for losses on off-balance sheet credit risk		(3,844	)		(3,683	)		4,715			2,977			(3,286	)		(1,051	)		(1,360	)
Derivatives and hedging activities		48			24			0			0			0			2			2
Recovery of impairment loss on securities		0			0			0			10,069			0			137			10,206
Gain on early extinguishment of debt		6			0			0			0			0			0			0
Gain on sale of securities available for sale		2,922			2,589			0			152			93			0			246
Gain (loss) on foreign currency exchange		(201	)		5			7			(0	)		20			12			32
Other income (expense)		17			14			60			1			1			1			2

NET OTHER INCOME (EXPENSE)		3,674			518			5,984			14,786			(2,147	)		647			13,285

TOTAL OPERATING EXPENSES		(15,208	)		(4,792	)		(6,145	)		(5,633	)		(5,616	)		(6,034	)		(17,283	)

NET INCOME BEFORE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		$87,817			$33,724			$53,913			$40,119			$8,040			$29,494			$77,652
Effect of a change in the credit loss reserve methodology - current period		0			0			0			(12,607	)		5,550			(9,623	)		(16,680	)

NET INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN CREDIT LOSS RESERVE METHODOLOGY		$87,817			$33,724			$53,913			$27,512			$13,590			$19,871			$60,972
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		0			0			0			2,733			0			0			2,733

NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS		$87,817			$33,724			$53,913			$30,245			$13,590			$19,871			$63,705



SELECTED FINANCIAL DATA

PER COMMON SHARE DATA
Net income per share before cummulative effect of a change in the credit loss reserve methodology		$2.23			$0.86			$1.39			$0.71			$0.35			$0.52			$1.58
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			—			—			0.07			—			—			0.07
Net income per share		$2.23			$0.86			$1.39			$0.78			$0.35			$0.52			$1.65
Diluted earnings per share before cummulative effect of a change in the credit loss reserve methodology		$2.23			$0.85			$1.38			$0.70			$0.35			$0.51			$1.56
Cumulative effect on prior periods (to Dec. 31, 2004) of a change in the credit loss reserve methodology		—			—			—			0.07			—			—			0.07
Diluted earnings per share		$2.23			$0.85			$1.38			$0.77			$0.35			$0.51			$1.63

Pro forma amounts assuming the new credit loss reserve methodology is applied retroactively:
Net Income as originally reported		$87,817			$33,724			$53,913
Effect on prior periods of a change in the credit loss reserve methodology		(7,616	)		(3,603	)		(628	)
Net Income		80,201			30,121			$53,285
Net Income per share		$2.04			$0.77			$1.37
Diluted earnings per share		$2.03			$0.76			$1.36

PERFORMANCE RATIOS
Return on average assets		4.8	%		5.8	%		8.8	%		4.6	%		2.2	%		3.0	%		3.3	%
Return on average stockholders’ equity		19.1	%		21.2	%		33.1	%		18.4	%		9.0	%		13.0	%		13.6	%
Net interest margin		1.72	%		1.74	%		1.46	%		1.66	%		1.60	%		1.78	%		1.68	%
Net interest spread		1.11	%		1.02	%		0.58	%		0.70	%		0.60	%		0.73	%		0.67	%
Total operating expenses to average assets		0.83	%		0.83	%		1.01	%		0.85	%		0.90	%		0.91	%		0.89	%

EXHIBIT VIII

CREDIT PORTFOLIO
DISTRIBUTION BY COUNTRY
(In US$ millions)


COUNTRY	(A) 30SEP04			(B) 30JUN05			(C) 30SEP05			(C) - (B)			(C) - (A)

ARGENTINA		$327			$91			$83			$(8	)		$(243	)
BRAZIL		1,123			1,325			1,538			213			415
CHILE		141			354			329			(25	)		188
COLOMBIA		138			172			215			44			78
COSTA RICA		43			71			85			14			43
DOMINICAN REPUBLIC		28			106			119			13			91
ECUADOR		98			125			145			20			47
EL SALVADOR		62			79			59			(20	)		(3	)
GUATEMALA		21			44			56			12			35
HONDURAS		9			18			20			2			11
JAMAICA		20			52			69			16			49
MEXICO		311			231			111			(120	)		(200	)
NICARAGUA		9			3			3			(0	)		(6	)
PANAMA		90			87			139			52			49
PERU		88			77			176			99			88
TRINIDAD & TOBAGO		77			59			143			84			66
VENEZUELA		36			22			119			97			83
OTHER		37			8			12	⁽¹⁾		3			(25	)


TOTAL CREDIT PORTFOLIO ⁽²⁾		$2,658			$2,925			$3,421			$497			$763

UNEARNED INCOME AND COMMISSION ⁽³⁾		(4	)		(4	)		(3	)		1			1


TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INCOME AND COMMISSION		$2,653			$2,921			$3,418			$498			$765

⁽¹⁾	Includes guarantees issued in the amount of US$12 million to a multilateral bank in Honduras.
⁽²⁾	Includes book value of loans, fair value of investment securities, securities purchased under agreements to resell, acceptances, and contingencies (including confirmed letters of credit, stand-by letters of credit, and guarantees covering commercial and country risks and credit commitments).
⁽³⁾	Represents unearned income and commission in respect of loans.

Conference Call Information

There will be a conference call to discuss the Bank’s quarterly results on Monday November 14, 2005 at 11:00 a.m., New York City time. For those interested in participating, please dial (800) 262-1292 in the United States or, if outside the United States, (719) 457-2680. Participants should give the conference ID# 4533186 to the telephone operator five minutes before the call is set to begin. There will also be a live audio webcast of the event at www.blx.com.

Bladex’s conference call will become available for review on Conference Replay one hour after its conclusion and will remain available through November 18, 2005. Please dial (888) 203-1112 or (719) 457-0820 and follow the instructions. The Conference ID# for the replayed call is 4533186.

For more information, please access our website on the Internet at www.blx.com or contact:

Carlos Yap S.

Senior Vice President, Finance

Bladex

Calle 50 y Aquilino de la Guardia

P.O. Box 6-1497 El Dorado

Panama City, Panama

Tel: (507) 210-8581

Fax: (507) 269-6333

e-mail address: cyap@blx.com

Investor Relations Firm:

i-advize Corporate Communications, Inc.

Melanie Carpenter / Peter Majeski

82 Wall Street, Suite 805

New York, NY 10005

Tel: (212) 406-3690

e-mail address: bladex@i-advize.com