Edgar Filing: FOREIGN TRADE BANK OF LATIN AMERICA, INC.

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

Commission File Number 1-11414

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)

Business Park Torre V, Ave. La Rotonda, Costa del Este

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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No x

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, thereunto duly authorized.

Date: October 20, 2016

	FOREIGN TRADE BANK OF LATIN AMERICA, INC.
	(Registrant)

		By: /s/ Pierre Dulin

		Name: Pierre Dulin
		Title: General Manager

BLADEX’S THIRD QUARTER AND YEAR-TO-DATE 2016 PROFIT TOTALED $28.0 MILLION, OR $0.72 PER SHARE, AND $73.7 MILLION, OR $1.89 PER SHARE, RESPECTIVELY. NINE MONTHS 2016 BUSINESS PROFIT REACHED $78.1 MILLION (+6% YoY)

PANAMA CITY, REPUBLIC OF PANAMA, October 19, 2016

Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, “Bladex”, or “the Bank”), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the Region, today announced its results for the third quarter (“3Q16”) and nine months (“9M16”) ended September 30, 2016.

The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Financial data as of September 30, 2015 (“3Q15” and “9M15”) has also been prepared in accordance with IFRS to allow year-on-year comparisons.

FINANCIAL SNAPSHOT

(US$ million, except percentages and per share amounts)	9M16			9M15			3Q16			2Q16			3Q15
Key Income Statement Highlights
Total income	$	124.8		$	130.3		$	43.4		$	44.4		$	52.0
Impairment loss from expected credit losses on loans at amortized cost and off-balance sheet instruments	$	17.1		$	10.3		$	4.4		$	11.5		$	2.0
Impairment loss (gain) from expected credit losses on investment securities	$	0.3		$	0.5		$	(0.2	)	$	0.5		$	(0.3	)
Operating expenses⁽¹⁾	$	33.7		$	38.7		$	11.2		$	10.1		$	12.9
Business Profit⁽²⁾	$	78.1		$	73.7		$	28.0		$	22.1		$	30.3
Non-Core Items ⁽³⁾	$	(4.4	)	$	7.0		$	0.0		$	0.2		$	7.1
Profit for the period	$	73.7		$	80.8		$	28.0		$	22.3		$	37.4
Profitability Ratios
Earnings per Share ("EPS") ⁽⁴⁾	$	1.89		$	2.08		$	0.72		$	0.57		$	0.96
Business EPS ⁽⁴⁾	$	2.00		$	1.90		$	0.72		$	0.56		$	0.78
Return on Average Equity (“ROAE”)⁽⁵⁾		10.0	%		11.5	%		11.2	%		9.1	%		15.5	%
Business ROAE⁽⁶⁾		10.6	%		10.5	%		11.2	%		9.0	%		12.6	%
Return on Average Assets (“ROAA”)		1.31	%		1.36	%		1.50	%		1.20	%		1.85	%
Business ROAA		1.38	%		1.25	%		1.50	%		1.19	%		1.50	%
Net Interest Margin ("NIM")⁽⁷⁾		2.08	%		1.82	%		2.13	%		2.06	%		1.83	%
Net Interest Spread ("NIS")⁽⁸⁾		1.86	%		1.66	%		1.89	%		1.83	%		1.67	%
Efficiency Ratio⁽⁹⁾		27	%		30	%		26	%		23	%		25	%
Business Efficiency Ratio ⁽⁹⁾		26	%		31	%		26	%		22	%		29	%
Assets, Capital, Liquidity & Credit Quality
Commercial Portfolio	$	6,688		$	7,124		$	6,688		$	6,767		$	7,124
Treasury Portfolio	$	145		$	293		$	145		$	180		$	293
Total Assets	$	7,287		$	7,988		$	7,287		$	7,634		$	7,988
Market capitalization	$	1,104		$	902		$	1,104		$	1,036		$	902
Tier 1 Basel III Capital Ratio ⁽¹⁰⁾		15.9	%		15.1	%		15.9	%		15.6	%		15.1	%
Leverage (times) ⁽¹¹⁾		7.2			8.3			7.2			7.7			8.3
Liquid Assets / Total Assets ⁽¹²⁾		9.9	%		10.9	%		9.9	%		11.9	%		10.9	%
NPL to gross loan portfolio		1.31	%		0.31	%		1.31	%		1.30	%		0.31	%
Total allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to Commercial Portfolio		1.67	%		1.38	%		1.67	%		1.60	%		1.38	%
Total allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to NPL (times)		1.3			4.8			1.3			1.3			4.8

3Q16 and 9M16 Highlights

Reported results:

Bladex’s 3Q16 Profit totaled $28.0 million (+26% QoQ, -25% YoY). Business Profit increased 27% QoQ, mainly on higher net interest income, along with lower QoQ provisions for expected credit losses, but decreased 8% YoY as higher net interest income was offset by lower fees and other income.

The Bank’s 9M16 Profit totaled $73.7 million (-9% YoY), mainly as a result of a swing in non-core results (-$4.4 million in 9M16 vs +$7.0 million recorded in the same period 2015), while Business Profit increased 6% YoY to $78.1 million, driven by higher net interest income and improved operating efficiency which was partially offset by higher provisions for expected credit losses and lower fees from letters of credit.

3Q16 and 9M16 Net Interest Income reached $39.8 million (+4% QoQ, +7% YoY) and $117.5 million (+9% YoY), respectively, on higher Net Interest Margin (2.13% in 3Q16, or +7 bps QoQ, +30 bps YoY and 2.08% in 9M16, or +26 bps YoY), mainly reflecting higher average lending spreads and the effects of increased market rates.

Key performance metrics:

The 3Q16 Annualized Return on Average Equity (“ROAE”) reached 11.2%. Year-to-date 2016 ROAE and Business ROAE reached 10.0% and 10.6%, compared to 11.5% and 10.5% in the 9M15, respectively.

The year-to-date 2016 Efficiency and Business Efficiency Ratios improved to 27% (-3 pts. YoY) and 26% (-5 pts. YoY), respectively, on robust income levels and lower operating expenses. Both Efficiency Ratios stood at 26% for 3Q16.

Tier 1 Basel III Capital Ratio stood at 15.9% as of September 30, 2016, compared to 15.6% a quarter ago, and 15.1% a year ago, on higher Tier 1 Capital balance and lower risk-weighted assets compared to a year ago.

Commercial Portfolio & Quality:

Average Commercial Portfolio balance reached $6.8 billion in the third quarter (+1% QoQ, -5% YoY) and in first nine months 2016 (-4% YoY), while end-of-period Commercial Portfolio balances stood at $6.7 billion as of September 30, 2016 (-1% QoQ, -6% YoY). The Bank continued with its approach to rebalance its credit exposure profile, emphasizing short-term trade finance exposures, along with reducing certain country, industry and client risk concentrations.

Non-performing loans (“NPL”) remained stable at $83.8 million, or 1.31% of the total Loan Portfolio as of September 30, 2016, compared to $84.7 million, or 1.30%, a quarter ago, while the total allowance for credit losses stood at 1.67% of total Commercial Portfolio ending balances (+7 bps QoQ, +29 bps YoY), representing an amount equivalent to 1.3 times the NPL balances.

CEO’s Comments

Mr. Rubens V. Amaral Jr., Bladex’s Chief Executive Officer, stated the following regarding the Bank’s 3Q16 and 9M16 results: “Core operating trends strengthened considerably during the third quarter, while credit quality remained stable. Nevertheless, the business environment continued to be challenging, limiting the scope for accelerated portfolio growth, as average quarterly portfolio balances increased marginally, while lending and net interest margins continued to improve, benefitting from robust pricing levels and increasing underlying market rates. Top line revenues rose moderately QoQ as higher net interest income compensated lower commission income, with several syndication transactions slated for completion in the fourth quarter. Our floating rate based business allows for instant re-pricing of our book as underlying market rates move, with minimal impact from interest rate or currency risk, and our funding structure continues to be not only very cost efficient, but ever more stable, as we increased deposits in the funding portfolio mix, made judicious use of abundantly available short term funding and accessed new markets placing medium term debt during the quarter to further strengthen structural resilience and diversification of our funding base. Expenses remain well under control, with efficiency ratio at 26% for 3Q16.

We surpassed the $1 billion Tier 1 capital mark this quarter, reaching a 15.9% Tier 1 Capital ratio, a very robust capitalization level which provides a solid foundation not only for Bladex´s financial strength, but also for accelerated business growth going forward as our outlook for Latin America is positive for the remainder of the year as well as 2017. Our origination efforts are focusing now on increasing our short term trade exposures, as we seek to position the Bank for an upward trend in the regional economic cycle, and recovered trade flow growth in particular, while increasing our capacity to adjust portfolio mix and credit profiles to the changing market conditions ever more rapidly. We envision this intensified business origination approach to be a fundamental part of our mission to accelerate the improvement of Return on Equity, Operating Leverage and Efficiency metrics, and we are doubling down on our efforts to improve our technological, processes and human capital capacities to strengthen our core franchise in order to achieve this goal. This, of course, does not mean that we will cease to generate non-trade or medium-term lending exposures – we will continue to strive to serve the needs of our clients along the tenors as complementary support to their trade-related activities. And we most certainly will seek to enhance our value proposition by increasingly providing value-added, fee generating services. Delivering expert, client focused solutions, and efficiently executing low risk trade finance business is what Bladex is all about.” Mr. Amaral concluded.

RESULTS BY BUSINESS SEGMENT

The Bank’s activities are managed and executed in two business segments, Commercial and Treasury. The business segment results are determined based on the Bank’s managerial accounting process as defined by IFRS 8 – Operating Segments, which assigns consolidated statement of financial positions, revenue and expense items to each business segment on a systemic basis.

COMMERCIAL BUSINESS SEGMENT

The Commercial Business Segment encompasses the Bank’s core business of financial intermediation and fee generation activities relating to the Commercial Portfolio’s activities. These activities include the origination of bilateral and syndicated credits, short-term and medium-term loans, customers’ liabilities under acceptances, and off-balance sheet instruments. Profits from the Commercial Business Segment include (i) net interest income from loans; (ii) fees and other income from the issuance, confirmation and negotiation of letters of credit, guarantees and loan commitments, and through loan structuring and syndication activities; (iii) gain on sale of loans generated by other loan intermediation activities, such as sales in the secondary market and distribution in the primary market; (iv) impairment loss (gain) from expected credit losses on loans at amortized cost and off-balance sheet instruments; and (v) allocated operating expenses.

The Commercial Portfolio includes gross loans at amortized cost, customers’ liabilities under acceptances, off-balance sheet instruments such as confirmed and stand-by letters of credit, credit commitments, and guarantees covering commercial risk.

As of September 30, 2016, the Commercial Portfolio balances stood at $6.7 billion, compared to $6.8 billion a quarter ago and compared to $7.1 billion a year ago, as the Bank continued to reduce certain country, industry and client risk concentrations. On an average basis, Commercial Portfolio balances reached $6.8 billion in the 3Q16 and first 9M16, up 1% compared the previous quarter, mainly from higher short-term trade finance loan origination during the quarter, but down 5% compared to 3Q15, and down 4% compared to the first 9M15, as the Bank focused on improving margins and reducing portfolio concentration risk.

The Commercial Portfolio continued to be increasingly short-term and trade-related in nature. As of September 30, 2016, $5.0 billion, or 75%, of the Commercial Portfolio were scheduled to mature within one year, compared to 74% a quarter ago and 71% a year ago. Trade finance operations represented 61% of the portfolio, compared to 59% and 55%, respectively, while the remaining balance consisted primarily of lending to financial institutions and corporations engaged in foreign trade, generating hard currency.

The following graphs illustrate the geographic distribution of the Bank’s Commercial Portfolio, highlighting the portfolio´s diversification by country of risk, and across industry segments:

As of September 30, 2016, Brazil exposures totaled $1.2 billion, or 18% of the total Commercial Portfolio, a $0.6 billion, or 34%, decrease from a year ago (-7 percentage points), largely compensated by year-on-year increases in other regions such as Central America & Caribbean countries (+3 percentage points) and Andean Region (+2 percentage points). Refer to Exhibit X for additional information relating to the Bank’s Commercial Portfolio distribution by country, and Exhibit XII for the Bank’s distribution of credit disbursements by country.

(US$ million)	9M16			9M15			3Q16			2Q16			3Q15
Commercial Business Segment:
Net interest income	$	105.4		$	93.5		$	35.9		$	34.3		$	32.2
Net other income ⁽¹³⁾		11.6			14.1			3.9			5.0			7.8
Total income		117.0			107.5			39.7			39.3			40.0
Impairment loss from expected credit losses on loans and off-balance sheet credit risks		(17.1	)		(10.3	)		(4.4	)		(11.5	)		(2.0	)
Operating expenses		(25.4	)		(30.4	)		(8.5	)		(7.3	)		(10.1	)
Profit for the period	$	74.5		$	66.9		$	26.9		$	20.4		$	28.0

3Q16 vs. 2Q16

The Commercial Business Segment’s Profit for 3Q16 totaled $26.9 million, a $6.4 million, or 32%, quarterly increase attributable to: (i) $7.2 million decrease in provisions for impairment from expected credit losses in the Commercial Portfolio, ii) $1.6 million, or 5%, increase in net interest income, driven by higher average balances and lending yields, partially offset by iii) $1.1 million, or 22%, decrease in net other income, mostly from lower fees from the loan structuring and syndication business (where three transactions were completed vs. five transactions in the previous quarter) and (iv) $1.2 million, or 17%, increase in allocated operating expenses mainly associated to higher salaries and other employee expenses resulting from lower accrual of performance-based compensation during 2Q16.

3Q16 vs. 3Q15

The Segment’s quarterly Profit of $26.9 million represented a $1.1 million, or 4%, decrease compared to $28.0 million in the 3Q15, as a net result of: (i) $3.6 million, or 11%, increase in net interest income driven by increased net lending margins offsetting lower average lending balances (-3%), and (ii) $1.5 million, or 15%, decrease in operating expenses mainly from lower accrual of performance-based compensation and other expenses; offset by iii) $4.0 million, or 51%, decrease in net other income, primarily as a result of lower fees from letters of credit and the loan structuring and syndication businesses, and (iv) $2.3 million, or 115%, increase in provisions for impairment from expected credit losses associated with the Bank’s Commercial Portfolio.

9M16 vs. 9M15

The Segment’s Profit for 9M16 totaled $74.5 million, a $7.6 million, or 11%, increase as a net result of: (i) $11.9 million, or 13%, increase in net interest income reflecting higher net lending margins, which compensated the effects of lower average lending balances (-3%), and (ii) $5.0 million, or 16%, decrease in allocated operating expenses mainly from lower performance-based variable compensation expense and professional services; partially offset by (iii) $6.8 million, or 66%, increase in provisions for impairment from expected credit losses mainly associated with increased non-performing loans, and iv) $2.4 million, or 17%, decrease in net other income primarily as higher fees from loan structuring and syndication business were offset by lower commissions from the letters of credit business.

TREASURY BUSINESS SEGMENT

The Treasury Business Segment is responsible for the Bank’s funding and liquidity management, along with the management of its activities in investment securities, as well as the management of the Bank’s interest rate, liquidity, price and currency risks. Interest-earning assets managed by the Treasury Business Segment include liquidity positions in cash and cash equivalents, and financial instruments related to the investment management activities, consisting of financial instruments at fair value through accumulated Other Comprehensive Income (Loss) account (“OCI”) and securities at amortized cost. The Treasury Business Segment also incorporated the Bank’s net results from its participation in investment funds, formerly shown in the other income line item “gain (loss) per financial instrument at fair value through profit or loss – investment funds”. The Bank’s commitment to remain as an investor in the investment funds expired on April 1^st, 2016, date on which the Bank proceeded to redeem its entire remaining participation in the funds. The Treasury Business Segment also manages the Bank’s interest-bearing liabilities which constitute its funding sources, namely: liability deposits, securities sold under repurchase agreement (“Repos”), and short- and long-term borrowings and debt.

Profits from the Treasury Business Segment include net interest income derived from the above mentioned treasury assets and liabilities, and related net other income (net results from derivative financial instruments and foreign currency exchange, gain (loss) per financial instruments at fair value through profit or loss, gain (loss) per financial instruments at fair value through OCI (“FVTOCI”), and other income), impairment loss from expected credit losses on investment securities, and allocated operating expenses.

The Bank’s liquid assets totaled $0.7 billion as of September 30, 2016, compared to $0.9 billion from a quarter and year ago, in line with the Bank’s historical levels. As of these dates, the liquid assets to total assets ratio was 9.9%, 11.9%, and 10.9%, respectively, while the liquid assets to total deposits ratio was 23.0%, 28.3%, and 27.9%, respectively.

As of September 30, 2016, the FVTOCI portfolio of securities totaled $56 million, compared to $75 million as of June 30, 2016, and $171 million as of September 30, 2015, as the Bank continued reducing its holdings in that category. Similarly, the portfolio of securities at amortized cost decreased to $89 million as of September 30, 2016, compared to $104 million as of June 30, 2016 and $122 million as of September 30, 2015. As of September 30, 2016, both securities portfolios consisted of readily-quoted Latin American securities, 88% of which represented multilateral, sovereign, or state-owned risk (refer to Exhibit XI for a per-country risk distribution of the Treasury Portfolio).

Deposit balances stood at $3.1 billion as of September 30, 2016, representing 50% of total liabilities, compared to $3.2 billion, or 48% of total liabilities as of June 30, 2016, and $3.1 billion, or 44% of total liabilities a year ago. Short-term borrowings and debt, including Repos, decreased 6% quarter-on-quarter and 40% year-on-year to reach $1.2 billion as of September 30, 2016, while long-term borrowings and debt totaled $1.8 billion as of September 30, 2016, down 11% quarter-on-quarter due to select prepayments and contractual maturities, and up 3% from a year ago, as the Bank increased its stable base of longer-term funding by way of capital markets issuances and private placements. As a result of increased market rates –while average funding spreads remained stable–, year-to-date weighted average funding cost increased 32 bps to reach 1.36% in the first 9M16, and quarterly weighted average funding cost increased 4 bps quarter-on-quarter and 38 bps year-on-year to reach 1.42% in the 3Q16.

(US$ million)	9M16			9M15			3Q16			2Q16			3Q15
Treasury Business Segment:
Net interest income	$	12.1		$	14.2		$	4.0		$	3.9		$	4.8
Net other (loss) income ⁽¹³⁾		(4.4	)		8.5			(0.3	)		1.2			7.1
Total income		7.8			22.7			3.7			5.1			11.9
Impairment (loss) gain from expected credit losses on investment securities		(0.3	)		(0.5	)		0.2			(0.5	)		0.3
Operating expenses		(8.3	)		(8.3	)		(2.7	)		(2.8	)		(2.8	)
Profit (Loss) for the period	$	(0.8	)	$	13.9		$	1.1		$	1.9		$	9.4

3Q16 vs. 2Q16

The Treasury Business Segment reported a $1.1 million Profit for 3Q16, compared to a $1.9 million Profit for 2Q16, as net other income decreased primarily due to changes in mark-to-market of financial instruments used for hedging purposes, partially offset by impairment gains from expected credit losses on investment securities, as a result of decreased portfolio balances.

3Q16 vs. 3Q15

The Segment’s $1.1 million Profit for 3Q16 substantially decreased year-on-year, primarily as a result of a $7.1 million trading gain recorded in 3Q15 from the Bank’s former participation in the investment funds.

9M16 vs. 9M15

The Segment’s year-to-date 2016 Loss of $0.8 million was significantly lower than the $13.9 million Profit for 9M15, mostly resulting from the swing in trading results from the Bank’s former participation in the investment funds, as well as lower interest income from its investment securities portfolio, as the Bank reduced its average portfolio balances by 38% year-on-year.

NET INTEREST INCOME AND MARGINS

(US$ million, except percentages)	9M16			9M15			3Q16			2Q16			3Q15
Net Interest Income ("NII") by Business Segment
Commercial Business Segment	$	105.4		$	93.5		$	35.9		$	34.3		$	32.2
Treasury Business Segment		12.1			14.2			4.0			3.9			4.8
Combined Business Segment NII	$	117.5		$	107.7		$	39.8		$	38.2		$	37.1

Net Interest Margin		2.08	%		1.82	%		2.13	%		2.06	%		1.83	%

3Q16 vs. 2Q16

The Bank’s 3Q16 net interest income reached $39.8 million, a $1.6 million, or 4%, increase quarter-on-quarter, mostly attributable to higher NIM (+7 bps), mainly from increased market rates which positively impacted the Bank’s interest-rate gap position.

3Q16 vs. 3Q15

The quarterly net interest income increased 7% year-on-year, mostly due to higher NIM (+30 bps) as the Bank’s interest rate gap position benefited from an increasing market rate environment along with higher net lending spreads, more than offsetting the effects of lower average interest-earning asset balances, mostly from lower average loan portfolio balances (-3%).

9M16 vs. 9M15

The Bank’s year-to-date 2016 net interest income reached $117.5 million, a $9.8 million, or 9%, year-on-year increase, mainly driven by higher NIM (+26 bps) from increased net lending spreads and the effect of increased market rates on the Bank’s interest rate gap position, which compensated the effects of lower average interest-earning asset balances, mostly from average loan portfolio balances (-3%) as the Bank reduced certain portfolio exposures.

FEES AND OTHER INCOME

Fees and other income includes the fee income associated with letters of credit and other contingent credits, such as guarantees and credit commitments, as well as fee income derived from loan structuring and syndication, together with loan intermediation and distribution activities.

(US$ million)	9M16		9M15		3Q16		2Q16		3Q15
Fees and Commissions, net	$	10.2	$	12.9	$	3.4	$	4.4	$	7.5
Letters of credit and other contingent credits *		5.7		8.7		2.0		1.8		3.5
Loan structuring and distribution fees		4.5		4.1		1.3		2.6		3.9
Gain on sale of loans at amortized cost		0.5		0.7		0.1		0.3		0.2
Other income, net		1.1		1.0		0.1		0.6		0.5
Fees and Other Income	$	11.7	$	14.6	$	3.6	$	5.3	$	8.2

* Net of commission expenses

Quarterly Variation

Fees and other income totaled $3.6 million in 3Q16, compared to $5.3 million in 2Q16, and $8.2 million in 3Q15. The $1.7 million, or 32% quarter-on-quarter, and the $4.6 million, or 56%, year-on-year decreases were mostly driven by lower fee income in the structuring and distribution business as three transactions were completed in 3Q16 versus five in 2Q16 and four in the 3Q15, along with lower gains on sale of loans and other income, while fee income from the letter of credit business increased quarter-on-quarter but decreased year-on-year.

9M16 vs. 9M15

2016 year-to-date fees and other income totaled $11.7 million, a $2.9 million, or 20%, year-on-year decrease, as lower commissions from the letters of credit business balances, offset higher fees in the structuring and distribution business, with the completion of eight transactions during 9M16 versus four in 9M15.

PORTFOLIO QUALITY AND ALLOWANCE FOR EXPECTED CREDIT LOSSES ON LOANS AND OFF-BALANCE SHEET INSTRUMENTS

(In US$ million)	30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Allowance for expected credit losses on loans at amortized cost:
Balance at beginning of the period	$	102.1		$	92.1		$	90.0		$	93.8		$	85.0
Provisions		5.0			10.0			2.1			2.0			8.8
Write-offs, net of recoveries		(0.8	)		0.0			0.0			(5.8	)		0.0
End of period balance	$	106.3		$	102.1		$	92.1		$	90.0		$	93.8

Allowance for expected credit losses on off-balance sheet credit risk:
Balance at beginning of the period	$	6.1		$	4.5		$	5.4		$	4.8		$	11.5
Provisions (reversals)		(0.7	)		1.6			(0.9	)		0.6			(6.7	)
End of period balance	$	5.4		$	6.1		$	4.5		$	5.4		$	4.8

Total allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk	$	111.7		$	108.2		$	96.6		$	95.4		$	98.6

Total allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to Commercial Portfolio		1.67	%		1.60	%		1.40	%		1.33	%		1.38	%
NPL to gross loan portfolio		1.31	%		1.30	%		0.43	%		0.78	%		0.31	%
Total allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to NPL (times)		1.3			1.3			3.4			1.8			4.8

The allowance for credit losses on loan and off-balance sheet credit risk totaled $111.7 million as of September 30, 2016, compared to $108.2 million as of June 30, 2016, and compared to $98.6 million a year ago. The increase of $3.5 million quarter-on-quarter and $13.1 million year-on-year in total allowances for expected credit losses on loans and off-balance sheet instruments primarily reflects adjustments to account for expected lifetime credit losses of certain exposures with increased credit risk and undergoing restructuring and recovery efforts. NPL balances stood at $83.8 million, or 1.31% of total gross loan portfolio, as of September 30, 2016, compared to $84.7 million, or 1.30%, a quarter ago, and to $20.7 million, or 0.31%, a year ago.

The coverage ratio of total allowance for credit losses on loans and off-balance sheet items to total Commercial Portfolio ending balances increased 7 bps quarter-on-quarter and 29 bps year-on-year to 1.67%. The ratio of the total allowance for expected credit losses on loans and off-balance sheet items to NPLs was 1.3 times, the same level recorded a quarter ago, and compared to 4.8 times a year ago.

OPERATING EXPENSES

Operating expenses totals the following line items of the consolidated statements of profit or loss:

(US$ million)	9M16		9M15		3Q16		2Q16		3Q15
Salaries and other employee expenses	$	19.0	$	23.2	$	6.2	$	4.9	$	7.5
Depreciation of equipment and leasehold improvements		1.0		1.1		0.4		0.3		0.3
Amortization of intangible assets		0.4		0.4		0.2		0.1		0.1
Professional services		2.6		3.2		1.3		0.8		1.2
Maintenance and repairs		1.4		1.2		0.5		0.4		0.4
Other expenses		9.2		9.6		2.6		3.5		3.4
Total Operating Expenses	$	33.7	$	38.7	$	11.2	$	10.1	$	12.9

Quarterly Variation

Operating expenses totaled $11.2 million, a 12% quarter-on-quarter increase and a 13% year-on-year decrease, mostly attributable to lower accrual of performance-based compensation in 2Q16 vs. 3Q16 and in 3Q16 vs. 3Q15, respectively.

The Bank’s Efficiency Ratio and the Business Efficiency Ratio, (the latter excludes non-core revenues and expenses, mainly from the former participation in investment funds), both stood at 26%, compared to 23% and 22% in 2Q16, and compared to 25% and 29% in the 3Q15, respectively, on higher operating expenses quarter-on-quarter and the absence of non-core results compared to a year ago. The ratio of operating expenses to average assets stood at 60 bps in 3Q16, compared to 54 bps and 64 bps in the comparison quarters.

9M16 vs. 9M15

During 9M16, operating expenses totaled $33.7 million, a 13% decrease year-on-year, mainly due to lower accruals regarding performance-based variable compensation, lower professional service and other expenses, as focus on process improvements to increase efficiencies continues in the Bank.

The year-to-date Efficiency Ratio and the Business Efficiency Ratio improved to 27% (-3 pts. year-on-year) and 26% (-5 pts. year-on-year), respectively, compared to 30% and 31% from a year ago, respectively, as business income increased 5% and operating expenses decreased 14%. The Bank’s operating expenses to average assets ratio improved to 60 bps in 9M16, compared to 65 bps in the same period of 2015.

CAPITAL RATIOS AND CAPITAL MANAGEMENT

The following table shows capital amounts and ratios at the dates indicated:

(US$ million, except percentages and share outstanding)	30-Sep-16			30-Jun-16			30-Sep-15
Tier 1 Capital⁽¹⁰⁾	$	1,012		$	994		$	971
Risk-Weighted Assets Basel III⁽¹⁰⁾	$	6,373		$	6,363		$	6,453
Tier 1 Basel III Capital Ratio⁽¹⁰⁾		15.9	%		15.6	%		15.1	%
Stockholders’ Equity	$	1,011		$	992		$	960
Stockholders’ Equity to Total Assets		13.9	%		13.0	%		12.0	%
Accumulated other comprehensive income (loss) ("OCI")	$	(4	)	$	(8	)	$	(14	)
Leverage (times) ⁽¹¹⁾		7.2			7.7			8.3
Shares outstanding		39.160			39.096			38.969

The Bank’s equity consists entirely of issued and fully paid ordinary common stock, with 39.2 million common shares outstanding as of September 30, 2016. As of the same date, the Bank’s Tier 1 Basel III Capital Ratio was 15.9%, compared to 15.6% as of June 30, 2016 and 15.1% as of September 30, 2015, reflecting robust levels of capitalization and lower risk-weighted assets compared to a year ago. The Bank’s leverage as of these dates was 7.2x, 7.7x, and 8.3x, respectively.

RECENT EVENTS

Quarterly dividend payment: At a meeting held October 18, 2016, the Bank’s Board of Directors approved a quarterly common dividend of $0.385 per share corresponding to the third quarter 2016. The dividend will be paid on November 17, 2016, to stockholders registered as of October 31, 2016.

Notes:

Numbers and percentages set forth in this earnings release have been rounded and accordingly may not total exactly.

QoQ and YoY refer to quarter-on-quarter and year-on-year variations, respectively.

Footnotes:

(1)

Total operating expenses includes the following expenses line items of the consolidated statements of profit or loss: salaries and other employee expenses, depreciation of equipment and leasehold improvements, amortization of intangible assets, professional services, maintenance and repairs, and other expenses.

(2)

Business Profit refers to Profit for the period, deducting non-core items.

(3)

Non-Core Items include the net results from the participations in the investment funds recorded in the “gain (loss) per financial instrument at fair value through profit or loss – investment funds” line item, other income and other expenses related to investment funds.

(4)

Earnings per Share (“EPS”) and Business EPS calculations are based on the average number of shares outstanding during each period.

(5)

ROAE refers to return on average stockholders’ equity which is calculated on the basis of unaudited daily average balances.

(6)

Business ROAE refers to annualized Business Profit divided by average stockholders’ equity.

(7)

NIM refers to net interest margin which constitutes to net interest income divided by the average balance of interest-earning assets.

(8)

NIS refers to net interest spread which constitutes the average yield earned on interest-earning assets, less the average yield paid on interest-bearing liabilities.

(9)

Efficiency Ratio refers to consolidated operating expenses as a percentage of total income. Business Efficiency Ratio refers to business operating expenses as a percentage of total income excluding non-core items.

(10)

Tier 1 Capital is calculated according to Basel III capital adequacy guidelines, and is equivalent to stockholders’ equity excluding certain effects such as the OCI effect of the financial instruments at FVTOCI. Tier 1 Capital ratio is calculated as a percentage of risk-weighted assets. Risk-weighted assets are estimated based on Basel III capital adequacy guidelines.

(11)

Leverage corresponds to assets divided by stockholders’ equity.

(12)

Liquid assets refer to total cash and cash equivalents, consisting of cash and due from banks, and interest-bearing deposits in banks, excluding pledged deposits and margin calls. Liquidity ratio refers to liquid assets as a percentage of total assets.

(13)

Net other income (loss) by Business Segment consists of the following items:

Commercial Business Segment: net fees and commissions, gain on sale of loans at amortized cost, and net related other income.

Treasury Business Segment: net other income from derivative financial instruments and foreign currency exchange, gain (loss) per financial instruments at fair value through profit or loss, gain (loss) per financial instruments at FVTOCI, and net related other income.

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 profit and return on equity in future periods, including income derived from the Treasury Business Segment, 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 expected credit losses; the need for additional allowance for expected 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, a multinational bank originally established by the central banks of Latin-American and Caribbean countries, initiated operations in 1979 to promote foreign trade finance and economic integration in the Region. The Bank, headquartered in Panama, operates throughout the Region with offices in Argentina, Brazil, Colombia, Mexico, Peru, and the United States of America, to support the expansion and servicing of its client base, which includes financial institutions and corporations. Through September 30, 2016, Bladex had disbursed accumulated credits of approximately $240 billion.

Bladex is listed on the NYSE in the United States of America (NYSE: BLX), since 1992, and its shareholders include central banks, state-owned banks and entities representing 23 Latin American countries, as well as commercial banks and financial institutions, institutional and retail investors through its public listing.

CONFERENCE CALL INFORMATION

There will be a conference call to discuss the Bank’s quarterly results on Thursday, October 20, 2016 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 webcast of the conference at http://www.bladex.com. The webcast presentation is available for viewing and downloads on http://www.bladex.com.

The conference call will become available for review on Conference Replay one hour after its conclusion, and will remain available for 60 days. Please dial (877) 919-4059 or (334) 323-0140, and follow the instructions. The replay passcode is: 67185647.

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

Mr. Christopher Schech

Chief Financial Officer

Tel: +507 210-8630

E-mail address: cschech@bladex.com

Mrs. Irma Garrido Arango

SVP, Corporate Development and Investor Relations

Tel: +507 210-8559

E-mail address: igarrido@bladex.com

Bladex

Business Park Torre V, Piso 5

Avenida La Rotonda

Urbanización Costa del Este

Panama City, Panama

EXHIBIT I

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	AT THE END OF,
	(A)			(B)			(C)			(A) - (B)						(A) - (C)
	September 30, 2016			June 30, 2016			September 30, 2015			CHANGE			%			CHANGE			%
	(In US$ thousand)

ASSETS:
Cash and cash equivalents	$	754,876		$	944,621		$	904,563		$	(189,745	)		(20	)%	$	(149,687	)		(17	)%
Financial Instruments:
At fair value through profit or loss		28			244			59,424			(216	)		(89	)		(59,396	)		(100	)
At fair value through OCI		55,703			74,732			170,787			(19,029	)		(25	)		(115,084	)		(67	)
Securities at amortized cost, net		88,866			104,246			121,586			(15,380	)		(15	)		(32,720	)		(27	)
Loans at amortized cost		6,393,382			6,520,325			6,758,988			(126,943	)		(2	)		(365,606	)		(5	)
Allowance for expected credit losses		106,335			102,083			93,779			4,252			4			12,556			13
Unearned interest & deferred fees		8,695			8,546			9,588			149			2			(893	)		(9	)
Loans at amortized cost, net		6,278,352			6,409,696			6,655,621			(131,344	)		(2	)		(377,269	)		(6	)

At fair value – Derivative financial instruments used for hedging – receivable		27,369			22,089			18,527			5,280			24			8,842			48

Property and equipment, net		6,654			5,415			6,367			1,239			23			287			5
Intangibles, net		3,086			415			573			2,671			644			2,513			439

Other assets:
Customers' liabilities under acceptances		1,715			1,312			787			403			31			928			118
Accrued interest receivable		45,296			46,310			38,732			(1,014	)		(2	)		6,564			17
Other assets		25,135			24,569			11,141			566			2			13,994			126
Total of other assets		72,146			72,191			50,660			(45	)		(0	)		21,486			42

TOTAL ASSETS	$	7,287,080		$	7,633,649		$	7,988,108		$	(346,569	)		(5	)%	$	(701,028	)		(9	)%

LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Demand	$	252,536		$	162,246		$	236,239		$	90,290			56	%	$	16,297			7	%
Time		2,873,469			3,044,054			2,879,268			(170,585	)		(6	)		(5,799	)		(0	)
Total deposits		3,126,005			3,206,300			3,115,507			(80,295	)		(3	)		10,498			0

At fair value – Derivative financial instruments used for hedging – payable		34,652			35,887			24,245			(1,235	)		(3	)		10,407			43

Financial liabilities at fair value through profit or loss		0			0			17			0			n.m.(	*)		(17	)		(100	)%
Securities sold under repurchase agreement		101,403			93,297			176,030			8,106			9			(74,627	)		(42	)
Short-term borrowings and debt		1,132,488			1,216,617			1,883,242			(84,129	)		(7	)		(750,754	)		(40	)
Long-term borrowings and debt, net		1,831,372			2,047,175			1,784,247			(215,803	)		(11	)		47,125			3

Other liabilities:
Acceptances outstanding		1,715			1,312			787			403			31			928			118
Accrued interest payable		22,000			15,426			22,528			6,574			43			(528	)		(2	)
Allowance for expected credit losses on off-balance sheet credit risk		5,366			6,091			4,803			(725	)		(12	)		563			12
Other liabilities		21,208			19,276			16,719			1,932			10			4,489			27
Total other liabilities		50,289			42,105			44,837			8,184			19			5,452			12

TOTAL LIABILITIES	$	6,276,209		$	6,641,381		$	7,028,125		$	(365,172	)		(5	)%	$	(751,916	)		(11	)%

STOCKHOLDERS' EQUITY:
Common stock		279,980			279,980			279,980			0			0	%		0			0	%
Treasury stock		(69,185	)		(70,600	)		(73,397	)		1,415			(2	)		4,212			(6	)
Additional paid-in capital in excess of assigned value of common stock		120,011			119,158			119,338			853			1			673			1
Capital reserves		95,210			95,210			95,210			0			0			0			0
Retained earnings		589,239			576,299			552,422			12,940			2			36,817			7
Accumulated other comprehensive loss		(4,384	)		(7,779	)		(13,570	)		3,395			(44	)		9,186			(68	)

TOTAL STOCKHOLDERS' EQUITY	$	1,010,871		$	992,268		$	959,983		$	18,603			2	%	$	50,888			5	%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,287,080		$	7,633,649		$	7,988,108		$	(346,569	)		(5	)%	$	(701,028	)		(9	)%

(*)

"n.m." means not meaningful.

EXHIBIT II

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

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

	FOR THE THREE MONTHS ENDED
	(A)			(B)			(C)			(A) - (B)						(A) - (C)
	September 30, 2016			June 30, 2016			September 30, 2015			CHANGE			%			CHANGE			%

NET INTEREST INCOME:
Interest income	$	62,817		$	60,473		$	55,708		$	2,344			4	%	$	7,109			13	%
Interest expense		(22,997	)		(22,287	)		(18,639	)		(710	)		3			(4,358	)		23

NET INTEREST INCOME		39,820			38,186			37,069			1,634			4			2,751			7

OTHER INCOME:
Fees and commissions, net		3,371			4,434			7,461			(1,063	)		(24	)		(4,090	)		(55	)
Derivative financial instruments and foreign currency exchange		204			500			(902	)		(296	)		(59	)		1,106			(123	)
Gain per financial instrument at fair value through profit or loss - investment funds		0			230			7,103			(230	)		(100	)		(7,103	)		(100	)
(Loss) gain per financial instrument at fair value through profit or loss - other financial instruments		(324	)		186			606			(510	)		(274	)		(930	)		(153	)
Gain (loss) per financial instrument at fair value through OCI		69			(30	)		(65	)		99			(330	)		134			(206	)
Gain on sale of loans at amortized cost		87			303			208			(216	)		(71	)		(121	)		(58	)
Other income, net		150			556			498			(406	)		(73	)		(348	)		(70	)
NET OTHER INCOME		3,557			6,179			14,909			(2,622	)		(42	)		(11,352	)		(76	)

TOTAL INCOME		43,377			44,365			51,978			(988	)		(2	)		(8,601	)		(17	)

EXPENSES:
Impairment loss from expected credit losses on loans at amortized cost		5,077			9,966			8,761			(4,889	)		(49	)		(3,684	)		(42	)
Impairment (gain) loss from expected credit losses on investment securities		(210	)		479			(286	)		(689	)		(144	)		76			(27	)
Impairment (gain) loss from expected credit losses on off-balance sheet instruments		(725	)		1,579			(6,740	)		(2,304	)		(146	)		6,015			(89	)
OPERATING EXPENSES:
Salaries and other employee expenses		6,230			4,898			7,466			1,332			27			(1,236	)		(17	)
Depreciation of equipment and leasehold improvements		376			334			338			42			13			38			11
Amortization of intangible assets		222			91			125			131			144			97			78
Professional services		1,290			846			1,206			444			52			84			7
Maintenance and repairs		480			441			376			39			9			104			28
Other expenses		2,646			3,459			3,360			(813	)		(24	)		(714	)		(21	)
TOTAL OPERATING EXPENSES		11,244			10,069			12,871			1,175			12			(1,627	)		(13	)
TOTAL EXPENSES		15,386			22,093			14,606			(6,707	)		(30	)		780			5

PROFIT FOR THE PERIOD	$	27,991		$	22,272		$	37,372		$	5,719			26	%	$	(9,381	)		(25	)%

PER COMMON SHARE DATA:
Basic earnings per share		0.72			0.57			0.96
Diluted earnings per share		0.71			0.57			0.96

Weighted average basic shares		39,102			39,078			38,969
Weighted average diluted shares		39,225			39,198			39,095

PERFORMANCE RATIOS:
Return on average assets		1.50	%		1.20	%		1.85	%
Return on average stockholders' equity		11.2	%		9.1	%		15.5	%
Net interest margin		2.13	%		2.06	%		1.83	%
Net interest spread		1.89	%		1.83	%		1.67	%
Operating expenses to total average assets		0.60	%		0.54	%		0.64	%

EXHIBIT III

SUMMARY OF CONSOLIDATED FINANCIAL DATA

(Consolidated Statements of Profit or Loss, Financial Position, and Selected Financial Ratios)

	FOR THE NINE MONTHS ENDED
	September 30, 2016			September 30, 2015
	(In US$ thousand, except per share amounts & ratios)

PROFIT OR LOSS DATA:
Net interest income	$	117,524		$	107,701
Fees and commissions, net		10,178			12,870
Derivative financial instruments and foreign currency exchange		(135	)		(397	)
(Loss) gain per financial instrument at fair value through profit or loss - investment funds		(4,365	)		7,116
Gain per financial instrument at fair value through profit or loss - other financial instruments		274			893
(Loss) gain per financial instrument at fair value through OCI		(246	)		364
Gain on sale of loans at amortized cost		490			720
Other income, net		1,057			1,030
Impairment loss from expected credit losses on loans and off-balance sheet instruments		(17,127	)		(10,311	)
Impairment loss from expected credit losses on investment securities		(276	)		(543	)
Operating expenses		(33,673	)		(38,685	)
PROFIT FOR THE PERIOD	$	73,701		$	80,758

FINANCIAL POSITION DATA:
Financial instruments at fair value through profit or loss		28			59,424
Financial instruments at fair value through OCI		55,703			170,787
Securities at amortized cost, net		88,866			121,586
Loans at amortized cost		6,393,382			6,758,988
Total assets		7,287,080			7,988,108
Deposits		3,126,005			3,115,507
Financial liabilities at fair value through profit or loss		0			17
Securities sold under repurchase agreements		101,403			176,030
Short-term borrowings and debt		1,132,488			1,883,242
Long-term borrowings and debt, net		1,831,372			1,784,247
Total liabilities		6,276,209			7,028,125
Stockholders' equity		1,010,871			959,983

PER COMMON SHARE DATA:
Basic earnings per share		1.89			2.08
Diluted earnings per share		1.88			2.07
Book value (period average)		25.30			24.20
Book value (period end)		25.81			24.63

(In thousand):
Weighted average basic shares		39,059			38,909
Weighted average diluted shares		39,178			39,080
Basic shares period end		39,160			38,969

SELECTED FINANCIAL RATIOS:
PERFORMANCE RATIOS:
Return on average assets		1.31	%		1.36	%
Return on average stockholders' equity		10.0	%		11.5	%
Net interest margin		2.08	%		1.82	%
Net interest spread		1.86	%		1.66	%
Operating expenses to total average assets		0.60	%		0.65	%

ASSET QUALITY RATIOS:
Non-performing loans to gross loan portfolio		1.31	%		0.31	%
Write-offs to gross loan portfolio		0.01	%		0.00	%
Allowance for expected credit losses on loans at amortized cost to gross loan portfolio		1.66	%		1.39	%
Allowance for expected credit losses on off-balance sheet credit risk to total off-balance sheet portfolio		1.82	%		1.32	%
Total allowance for expected credit losses on loan at amortized cost and off-balance sheet credit risk to non-performing loans		133	%		475	%

CAPITAL RATIOS:
Stockholders' equity to total assets		13.9	%		12.0	%
Tier 1 Basel III Capital Ratio		15.9	%		15.1	%

		EXHIBIT IV

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

	FOR THE NINE MONTHS ENDED
	(A)			(B)			(A) - (B)
	September 30, 2016			September 30, 2015			CHANGE			%
	(In US$ thousand)
NET INTEREST INCOME:
Interest income	$	184,448		$	162,186		$	22,262			14	%
Interest expense		(66,924	)		(54,485	)		(12,439	)		23

NET INTEREST INCOME		117,524			107,701			9,823			9

OTHER INCOME:
Fees and commissions, net		10,178			12,870			(2,692	)		(21	)
Derivative financial instruments and foreign currency exchange		(135	)		(397	)		262			(66	)
(Loss) gain per financial instrument at fair value through profit or loss - investment funds		(4,365	)		7,116			(11,481	)		(161	)
Gain per financial instrument at fair value through profit or loss - other financial instruments		274			893			(619	)		(69	)
(Loss) gain per financial instrument at fair value through OCI		(246	)		364			(610	)		(168	)
Gain on sale of loans at amortized cost		490			720			(230	)		(32	)
Other income, net		1,057			1,030			27			3
NET OTHER INCOME		7,253			22,596			(15,343	)		(68	)

TOTAL INCOME		124,777			130,297			(5,520	)		(4	)

EXPENSES:
Impairment loss from expected credit losses on loans at amortized cost		17,186			15,380			1,806			12
Impairment loss from expected credit losses on investment securities		276			543			(267	)		(49	)
Impairment gain from expected credit losses on off-balance sheet instruments		(59	)		(5,069	)		5,010			(99	)
OPERATING EXPENSES:
Salaries and other employee expenses		19,008			23,189			(4,181	)		(18	)
Depreciation of equipment and leasehold improvements		1,039			1,063			(24	)		(2	)
Amortization of intangible assets		425			447			(22	)		(5	)
Professional services		2,614			3,182			(568	)		(18	)
Maintenance and repairs		1,353			1,211			142			12
Other expenses		9,234			9,593			(359	)		(4	)
TOTAL OPERATING EXPENSES		33,673			38,685			(5,012	)		(13	)
TOTAL EXPENSES		51,076			49,539			1,537			3

PROFIT FOR THE PERIOD	$	73,701		$	80,758		$	(7,057	)		(9	)%

		EXHIBIT V

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE THREE MONTHS ENDED
	September 30, 2016								June 30, 2016								September 30, 2015
	AVERAGE					AVG.			AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ thousand)

INTEREST EARNING ASSETS
Cash and cash equivalents	$	811,507		$	1,142		0.55	%	$	822,618		$	894		0.43	%	$	976,382		$	564		0.23	%
Financial Instruments at fair value through profit or loss		0			0		0.00			11,288			0		0.00			55,046			0		0.00
Financial Instruments at fair value through OCI		62,768			457		2.85			116,164			548		1.87			219,160			1,355		2.42
Securities at amortized cost⁽¹⁾		98,221			688		2.74			112,102			789		2.78			93,911			822		3.42
Loans at amortized cost, net of unearned interest		6,460,587			60,530		3.67			6,398,996			58,242		3.60			6,683,577			52,967		3.10

TOTAL INTEREST EARNING ASSETS	$	7,433,084		$	62,817		3.31	%	$	7,461,167		$	60,473		3.21	%	$	8,028,075		$	55,708		2.72	%

Non interest earning assets		66,618								61,089								65,517
Allowance for expected credit losses on loans at amortized cost		(101,713	)							(92,214	)							(85,208	)
Other assets		27,763								25,803								19,228

TOTAL ASSETS	$	7,425,753							$	7,455,845							$	8,027,612

INTEREST BEARING LIABILITIES
Deposits	$	3,267,557		$	5,329		0.64	%	$	3,076,904		$	5,089		0.65	%	$	3,252,881		$	3,287		0.40	%
Trading liabilities		25			0		0.00			(4	)		0		0.00			14			0		0.00
Securities sold under repurchase agreement and short-term borrowings and debt		1,194,433			3,642		1.19			1,391,982			3,735		1.06			2,078,263			4,864		0.92
Long-term borrowings and debt, net⁽²⁾		1,892,037			14,026		2.90			1,940,221			13,463		2.74			1,656,145			10,488		2.48

TOTAL INTEREST BEARING LIABILITIES	$	6,354,051		$	22,997		1.42	%	$	6,409,103		$	22,287		1.38	%	$	6,987,304		$	18,639		1.04	%

Non interest bearing liabilities and other liabilities	$	73,457							$	57,970							$	86,776

TOTAL LIABILITIES		6,427,508								6,467,073								7,074,079

STOCKHOLDERS' EQUITY		998,244								988,772								953,533


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,425,753							$	7,455,845							$	8,027,612

NET INTEREST SPREAD							1.89	%							1.83	%							1.67	%

NET INTEREST INCOME AND NET INTEREST MARGIN				$	39,820		2.13	%				$	38,186		2.06	%				$	37,069		1.83	%

⁽¹⁾

Gross of the allowance for expected credit losses relating to securities at amortized cost.

⁽²⁾

Net of prepaid commissions.

Note: Interest income and/or expense includes the effect of derivative financial instruments used for hedging.

		EXHIBIT VI

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCES

	FOR THE NINE MONTHS ENDED
	September 30, 2016								September 30, 2015
	AVERAGE					AVG.			AVERAGE					AVG.
	BALANCE			INTEREST		RATE			BALANCE			INTEREST		RATE
	(In US$ thousand)

INTEREST EARNING ASSETS
Cash and cash equivalents	$	836,724		$	3,206		0.50	%	$	842,178		$	1,484		0.23	%
Financial Instruments at fair value through profit or loss		21,480			0		0.00			56,276			0		0.00
Financial Instruments at fair value through OCI		114,494			1,956		2.24			287,225			4,944		2.27
Securities at amortized cost⁽¹⁾		106,346			2,260		2.79			71,770			1,693		3.11
Loans at amortized cost, net of unearned interest		6,456,779			177,026		3.60			6,646,070			154,065		3.06

TOTAL INTEREST EARNING ASSETS	$	7,535,823		$	184,448		3.22	%	$	7,903,519		$	162,186		2.71	%

Non interest earning assets		72,099								74,018
Allowance for expected credit losses on loans at amortized cost		(94,667	)							(79,429	)
Other assets		24,661								16,163

TOTAL ASSETS	$	7,537,917							$	7,914,272


INTEREST BEARING LIABILITIES
Deposits	$	3,084,559		$	14,970		0.64	%	$	2,827,781		$	8,478		0.40	%
Trading liabilities		6			0		0.00			34			0		0.00
Securities sold under repurchase agreement and short-term borrowings and debt		1,489,872			12,232		1.08			2,539,905			17,344		0.90
Long-term borrowings and debt, net⁽²⁾		1,897,748			39,722		2.75			1,507,853			28,663		2.51

TOTAL INTEREST BEARING LIABILITIES	$	6,472,185		$	66,924		1.36	%	$	6,875,573		$	54,485		1.04	%

Non interest bearing liabilities and other liabilities	$	77,601							$	96,997

TOTAL LIABILITIES		6,549,786								6,972,570

STOCKHOLDERS' EQUITY		988,131								941,702

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	7,537,917							$	7,914,272

NET INTEREST SPREAD							1.86	%							1.66	%

NET INTEREST INCOME AND NET INTEREST MARGIN				$	117,524		2.08	%				$	107,701		1.82	%

⁽¹⁾

Gross of the allowance for expected credit losses relating to securities at amortized cost.

⁽²⁾

Net of prepaid commissions.

Note: Interest income and/or expense includes the effect of derivative financial instruments used for hedging.

		EXHIBIT VII

CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(In US$ thousand, except per share amounts and ratios)

	NINE MONTHS			FOR THE THREE MONTHS ENDED															NINE MONTHS
	ENDED																		ENDED
	SEP 30/16			SEP 30/16			JUN 30/16			MAR 31/16			DEC 31/15			SEP 30/15			SEP 30/15

NET INTEREST INCOME:
Interest income	$	184,448		$	62,817		$	60,473		$	61,158		$	58,127		$	55,708		$	162,186
Interest expense		(66,924	)		(22,997	)		(22,287	)		(21,640	)		(20,349	)		(18,639	)		(54,485	)

NET INTEREST INCOME		117,524			39,820			38,186			39,518			37,778			37,069			107,701

OTHER INCOME:
Fees and commissions, net		10,178			3,371			4,434			2,373			6,329			7,461			12,870
Derivative financial instruments and foreign currency exchange		(135	)		204			500			(839	)		374			(902	)		(397	)
(Loss) gain per financial instrument at fair value through profit or loss - investment funds		(4,365	)		0			230			(4,595	)		(2,030	)		7,103			7,116
Gain (loss) per financial instrument at fair value through profit or loss - other financial instruments		274			(324	)		186			412			(248	)		606			893
(Loss) gain per financial instrument at fair value through OCI		(246	)		69			(30	)		(285	)		0			(65	)		364
Gain on sale of loans at amortized cost		490			87			303			100			784			208			720
Other income, net		1,057			150			556			351			574			498			1,030

NET OTHER INCOME		7,253			3,557			6,179			(2,483	)		5,783			14,909			22,596

TOTAL INCOME		124,777			43,377			44,365			37,035			43,561			51,978			130,297

Impairment loss from expected credit losses on loans at amortized cost		17,186			5,077			9,966			2,143			1,867			8,761			15,380
Impairment loss (gain) from expected credit losses on investment securities		276			(210	)		479			7			4,746			(286	)		543
Impairment (gain) loss from expected credit losses on off-balance sheet instruments		(59	)		(725	)		1,579			(913	)		622			(6,740	)		(5,069	)
Operating expenses		33,673			11,244			10,069			12,360			13,100			12,871			38,685

PROFIT FOR THE PERIOD	$	73,701		$	27,991		$	22,272		$	23,438		$	23,226		$	37,372		$	80,758

SELECTED FINANCIAL DATA

PER COMMON SHARE DATA
Basic earnings per share	$	1.89		$	0.72		$	0.57		$	0.60		$	0.60		$	0.96		$	2.08

PERFORMANCE RATIOS
Return on average assets		1.31	%		1.50	%		1.20	%		1.22	%		1.17	%		1.85	%		1.36	%
Return on average stockholders' equity		10.0	%		11.2	%		9.1	%		9.6	%		9.5	%		15.5	%		11.5	%
Net interest margin		2.08	%		2.13	%		2.06	%		2.06	%		1.90	%		1.83	%		1.82	%
Net interest spread		1.86	%		1.89	%		1.83	%		1.85	%		1.72	%		1.67	%		1.66	%
Operating expenses to total average assets		0.60	%		0.60	%		0.54	%		0.64	%		0.66	%		0.64	%		0.65	%

EXHIBIT VIII

BUSINESS SEGMENT ANALYSIS

(In US$ thousand)

	FOR THE NINE MONTHS ENDED						FOR THE THREE MONTHS ENDED
	SEP 30/16			SEP 30/15			SEP 30/16			JUN 30/16			SEP 30/15

COMMERCIAL BUSINESS SEGMENT:

Net interest income ⁽¹⁾	$	105,381		$	93,468		$	35,869		$	34,296		$	32,226
Net other income ⁽²⁾		11,632			14,080			3,852			4,961			7,812
Total income		117,013			107,548			39,721			39,257			40,038
Impairment loss from expected credit losses on loans and off-balance sheet instruments		(17,127	)		(10,311	)		(4,352	)		(11,545	)		(2,021	)
Operating expenses ⁽³⁾		(25,412	)		(30,367	)		(8,519	)		(7,302	)		(10,067	)

PROFIT FOR THE PERIOD	$	74,474		$	66,870		$	26,850		$	20,410		$	27,950

Average interest-earning assets⁽⁴⁾		6,456,779			6,646,070			6,460,587			6,398,996			6,683,577
End-of-period interest-earning assets⁽⁴⁾		6,384,687			6,749,400			6,384,687			6,511,779			6,749,400

TREASURY BUSINESS SEGMENT:

Net interest income ⁽¹⁾	$	12,143		$	14,233		$	3,951		$	3,890		$	4,843
Net other income (loss) ⁽²⁾		(4,379	)		8,516			(295	)		1,218			7,098
Total income		7,764			22,749			3,656			5,108			11,941
Impairment (gain) loss from expected credit losses on investment securities		(276	)		(543	)		210			(479	)		286
Operating expenses ⁽³⁾		(8,261	)		(8,318	)		(2,725	)		(2,767	)		(2,804	)

PROFIT (LOSS) FOR THE PERIOD	$	(773	)	$	13,888		$	1,141		$	1,862		$	9,423

Average interest-earning assets⁽⁵⁾		1,079,044			1,257,449			972,497			1,062,172			1,344,498
End-of-period interest-earning assets⁽⁵⁾		900,127			1,256,956			900,127			1,124,621			1,256,956

COMBINED BUSINESS SEGMENT TOTAL:

Net interest income ⁽¹⁾	$	117,524		$	107,701		$	39,820		$	38,186		$	37,069
Net other income ⁽²⁾		7,253			22,596			3,557			6,179			14,910
Total income		124,777			130,297			43,377			44,365			51,979
Impairment loss from expected credit losses on loans and off-balance sheet instruments		(17,127	)		(10,311	)		(4,352	)		(11,545	)		(2,021	)
Impairment (gain) loss from expected credit losses on investment securities		(276	)		(543	)		210			(479	)		286
Operating expenses ⁽³⁾		(33,673	)		(38,685	)		(11,244	)		(10,069	)		(12,871	)

PROFIT FOR THE PERIOD	$	73,701		$	80,758		$	27,991		$	22,272		$	37,373

Average interest-earning assets		7,535,823			7,903,519			7,433,084			7,461,168			8,028,075
End-of-period interest-earning assets		7,284,814			8,006,356			7,284,814			7,636,400			8,006,356

The Bank’s activities are managed and executed in two business segments, Commercial and Treasury. The business segment results are determined based on the Bank’s managerial accounting process as defined by IFRS 8 - Operating Segments, which assigns consolidated statement of financial positions, revenue and expense items to each business segment on a systematic basis.

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

(2) Net other income (loss) by Business Segment consists of the following items: - Commercial Business Segment: net fees and commissions, gain on sale of loans at amortized cost, and net related other income. - Treasury Business Segment: net other income from derivative financial instruments and foreign currency exchange, gain (loss) per financial instruments at fair value through profit or loss, gain (loss) per financial instruments at FVTOCI, and net related other income.

(3) Operating Expenses allocation methodology assigns overhead expenses based on resource consumption by business segment. Total operating expenses includes the following line items of the consolidated statements of profit or loss: salaries and other employee expenses, depreciation of equipment and leasehold improvements, amortization of intangible assets, professional services, maintenance and repairs, and other expenses.

(4) Includes loans at amortized cost, net of unearned interest and deferred fees.

(5) Includes cash and cash equivalents, financial instruments at fair value through profit or loss, financial instruments at FVTOCI and securities at amortized cost, gross of the allowance for expected credit losses.

EXHIBIT IX

CREDIT PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)						(B)						(C)
	September 30, 2016						June 30, 2016						September 30, 2015						Change in Amount
COUNTRY ^(*)	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	297			4		$	264			4		$	202			3		$	33		$	95
BERMUDA		0			0			19			0			0			0			(19	)		0
BOLIVIA		19			0			20			0			15			0			(1	)		4
BRAZIL		1,212			18			1,280			18			1,870			25			(68	)		(658	)
CANADA		0			0			1			0			0			0			(1	)		0
CHILE		150			2			194			3			149			2			(44	)		1
COLOMBIA		795			12			785			11			762			10			10			33
COSTA RICA		438			6			412			6			327			4			26			111
DOMINICAN REPUBLIC		184			3			225			3			239			3			(41	)		(55	)
ECUADOR		285			4			152			2			347			5			133			(62	)
EL SALVADOR		117			2			119			2			71			1			(2	)		46
FRANCE		2			0			3			0			6			0			(1	)		(4	)
GERMANY		65			1			97			1			97			1			(32	)		(32	)
GUATEMALA		376			6			383			6			411			6			(7	)		(35	)
HONDURAS		92			1			116			2			106			1			(24	)		(14	)
JAMAICA		36			1			57			1			15			0			(21	)		21
JAPAN		0			0			18			0			0			0			(18	)		0
MEXICO		860			13			932			13			852			11			(72	)		8
NETHERLANDS		0			0			0			0			1			0			0			(1	)
NICARAGUA		32			0			22			0			0			0			10			32
PANAMA		563			8			522			8			610			8			41			(47	)
PARAGUAY		114			2			96			1			138			2			18			(24	)
PERU		630			9			638			9			614			8			(8	)		16
SINGAPORE		51			1			68			1			43			1			(17	)		8
SWITZERLAND		39			1			29			0			49			1			10			(10	)
TRINIDAD & TOBAGO		194			3			186			3			199			3			8			(5	)
UNITED STATES		67			1			76			1			59			1			(9	)		8
URUGUAY		196			3			214			3			209			3			(18	)		(13	)
MULTILATERAL ORGANIZATIONS		19			0			19			0			26			0			0			(7	)

TOTAL CREDIT PORTFOLIO ⁽¹⁾	$	6,833			100	%	$	6,947			100	%	$	7,417			100	%	$	(114	)	$	(584	)

UNEARNED INTEREST & DEFERRED FEES		(9	)					(9	)					(10	)					0			1

TOTAL CREDIT PORTFOLIO, NET OF UNEARNED INTEREST & DEFERRED FEES	$	6,824					$	6,938					$	7,407					$	(114	)	$	(583	)

	⁽¹⁾	Includes gross loan portfolio, financial instruments at FVTOCI and securities at amortized cost, gross of the allowance for expected credit losses, customers' liabilities under acceptances, and off-balance sheet instruments (including confirmed and stand-by letters of credit, guarantees covering commercial risk and credit commitments).
	^(*)	Exposures in countries outside the Latin American Region correspond to credits extended to their subsidiaries in Latin America with head-office guarantee.

EXHIBIT X

COMMERCIAL PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)						(B)						(C)
	September 30, 2016						June 30, 2016						September 30, 2015						Change in Amount
COUNTRY ^(*)	Amount			% of Total Outstanding			Amount			% of Total Outstanding			Amount			% of Total Outstanding			(A) - (B)			(A) - (C)

ARGENTINA	$	297			4		$	264			4		$	202			3		$	33		$	95
BERMUDA		0			0			19			0			0			0			(19	)		0
BOLIVIA		19			0			20			0			15			0			(1	)		4
BRAZIL		1,183			18			1,244			18			1,806			25			(61	)		(623	)
CANADA		0			0			1			0			0			0			(1	)		0
CHILE		145			2			187			3			131			2			(42	)		14
COLOMBIA		760			11			740			11			679			10			20			81
COSTA RICA		438			7			412			6			322			5			26			116
DOMINICAN REPUBLIC		184			3			225			3			239			3			(41	)		(55	)
ECUADOR		285			4			152			2			347			5			133			(62	)
EL SALVADOR		117			2			119			2			71			1			(2	)		46
FRANCE		2			0			3			0			6			0			(1	)		(4	)
GERMANY		65			1			97			1			97			1			(32	)		(32	)
GUATEMALA		376			6			383			6			411			6			(7	)		(35	)
HONDURAS		92			1			116			2			106			1			(24	)		(14	)
JAMAICA		36			1			57			1			15			0			(21	)		21
JAPAN		0			0			18			0			0			0			(18	)		0
MEXICO		828			12			900			13			804			11			(72	)		24
NETHERLANDS		0			0			0			0			1			0			0			(1	)
NICARAGUA		32			0			22			0			0			0			10			32
PANAMA		551			8			495			7			577			8			56			(26	)
PARAGUAY		114			2			96			1			138			2			18			(24	)
PERU		626			9			633			9			607			9			(7	)		19
SINGAPORE		51			1			68			1			43			1			(17	)		8
SWITZERLAND		39			1			29			0			49			1			10			(10	)
TRINIDAD & TOBAGO		185			3			177			3			190			3			8			(5	)
UNITED STATES		67			1			76			1			59			1			(9	)		8
URUGUAY		196			3			214			3			209			3			(18	)		(13	)

TOTAL COMMERCIAL PORTFOLIO ⁽¹⁾	$	6,688			100	%	$	6,767			100	%	$	7,124			100	%	$	(79	)	$	(436	)

UNEARNED INTEREST & DEFERRED FEES		(9	)					(9	)					(10	)					0			1

TOTAL COMMERCIAL PORTFOLIO, NET OF UNEARNED INTEREST & DEFERRED FEES	$	6,679					$	6,758					$	7,114					$	(79	)	$	(435	)

⁽¹⁾	Includes gross loan portfolio, customers' liabilities under acceptances, and off-balance sheet instruments (including confirmed and stand-by letters of credit, guarantees covering commercial risk and credit commitments).
^(*)	Exposures in countries outside the Latin American Region correspond to credits extended to their subsidiaries in Latin America with head-office guarantee.

EXHIBIT XI

TREASURY PORTFOLIO

DISTRIBUTION BY COUNTRY

(In US$ million)

	AT THE END OF,
	(A)					(B)					(C)
	September 30, 2016					June 30, 2016					September 30, 2015					Change in Amount
COUNTRY	Amount		% of Total Outstanding			Amount		% of Total Outstanding			Amount		% of Total Outstanding			(A) - (B)			(A) - (C)

BRAZIL	$	29		20		$	36		20		$	64		22		$	(7	)	$	(35	)
CHILE		5		4			7		4			18		6			(2	)		(13	)
COLOMBIA		35		24			45		25			83		28			(10	)		(48	)
COSTA RICA		0		0			0		0			5		2			0			(5	)
MEXICO		32		22			32		18			48		16			0			(16	)
PANAMA		12		8			27		15			33		11			(15	)		(21	)
PERU		4		3			5		2			7		2			(1	)		(3	)
TRINIDAD & TOBAGO		9		6			9		5			9		3			0			0
MULTILATERAL ORGANIZATIONS		19		13			19		11			26		9			0			(7	)

TOTAL TREASURY PORTOFOLIO ⁽¹⁾	$	145		100	%	$	180		100	%	$	293		100	%	$	(35	)	$	(148	)

⁽¹⁾	Includes financial instruments at FVTOCI and securities at amortized cost, gross of the allowance for expected credit losses. Excludes the Bank's former participation in the investment funds.

EXHIBIT XII

CREDIT DISBURSEMENTS

DISTRIBUTION BY COUNTRY

(In US$ million)

	YEAR-TO-DATE				QUARTERLY						Change in Amount
	(A)		(B)		(C)		(D)		(E)
COUNTRY ^(*)	9M16		9M15		3QTR16		2QTR16		3QTR15		(A) - (B)			(C) - (D)			(C) - (E)

ARGENTINA	$	295	$	705	$	120	$	113	$	233	$	(410	)	$	7		$	(113	)
BELGIUM		32		0		17		16		0		32			1			17
BOLIVIA		22		20		5		5		5		2			0			0
BRAZIL		259		1,073		113		51		280		(814	)		62			(167	)
CANADA		1		0		0		1		0		1			(1	)		0
CHILE		302		74		129		154		16		228			(25	)		113
COLOMBIA		740		549		275		284		222		191			(9	)		53
COSTA RICA		512		272		217		201		66		240			16			151
DOMINICAN REPUBLIC		560		514		165		214		133		46			(49	)		32
ECUADOR		598		895		248		176		315		(297	)		72			(67	)
EL SALVADOR		99		53		20		14		14		46			6			6
FRANCE		6		6		0		0		0		0			0			0
GERMANY		100		0		100		0		0		100			100			100
GUATEMALA		531		692		128		153		268		(161	)		(25	)		(140	)
HONDURAS		125		199		29		57		79		(74	)		(28	)		(50	)
JAMAICA		103		98		14		69		32		5			(55	)		(18	)
JAPAN		18		0		0		18		0		18			(18	)		0
MEXICO		1,866		1,992		679		576		696		(126	)		103			(17	)
NETHERLANDS		14		0		0		0		0		14			0			0
NICARAGUA		44		1		21		15		0		43			6			21
PANAMA		650		720		304		166		403		(70	)		138			(99	)
PARAGUAY		88		107		48		18		25		(19	)		30			23
PERU		892		664		355		275		272		228			80			83
SINGAPORE		158		5		81		65		5		153			16			76
SWITZERLAND		102		47		18		38		46		55			(20	)		(28	)
TRINIDAD & TOBAGO		266		343		70		126		143		(77	)		(56	)		(73	)
UNITED STATES		84		25		36		48		7		59			(12	)		29
URUGUAY		0		71		0		0		54		(71	)		0			(54	)

TOTAL CREDIT DISBURSED ⁽¹⁾	$	8,467	$	9,125	$	3,192	$	2,853	$	3,314	$	(658	)	$	339		$	(122	)

⁽¹⁾	Includes gross loan portfolio, financial instruments at FVTOCI and securities at amortized cost, gross of the allowance for expected credit losses, and off-balance sheet instruments (including confirmed and stand-by letters of credit, guarantees covering commercial risk, and credit commitments).
^(*)	Exposures in countries outside the Latin American Region correspond to credits extended to their subsidiaries in Latin America with head-office guarantee.

EXHIBIT XIII

NON-GAAP FEES AND OTHER INCOME RECONCILIATION

(In US$ thousand)

	NINE MONTHS			FOR THE THREE MONTHS ENDED															NINE MONTHS
	ENDED																		ENDED
	SEP 30/16			SEP 30/16			JUN 30/16			MAR 31/16			DEC 31/15			SEP 30/15			SEP 30/15

NET OTHER INCOME	$	7,253		$	3,557		$	6,179		$	(2,483	)	$	5,783		$	14,909		$	22,596

Less:
Derivative financial instruments and foreign currency exchange		(135	)		204			500			(839	)		374			(902	)		(397	)
(Loss) gain per financial instrument at fair value through profit or loss		(4,091	)		(324	)		416			(4,183	)		(2,278	)		7,709			8,009
(Loss) gain per financial instrument at fair value through OCI		(246	)		69			(30	)		(285	)		0			(65	)		364
FEES AND OTHER INCOME	$	11,725		$	3,608		$	5,293		$	2,824		$	7,687		$	8,167		$	14,620

NON-GAAP BUSINESS INCOME RECONCILIATION

(In US$ thousand)

	NINE MONTHS			FOR THE THREE MONTHS ENDED												NINE MONTHS
	ENDED															ENDED
	SEP 30/16			SEP 30/16		JUN 30/16		MAR 31/16			DEC 31/15			SEP 30/15		SEP 30/15

TOTAL INCOME	$	124,777		$	43,377	$	44,365	$	37,035		$	43,561		$	51,978	$	130,297

Less: Non-Core income
(Loss) gain per financial instrument at fair value through profit or loss - investment funds		(4,365	)		0		230		(4,594	)		(2,030	)		7,103		7,116
Other income related to investment funds		278			0		278		0			0			0		0
BUSINESS INCOME	$	128,864		$	43,377	$	43,858	$	41,629		$	45,591		$	44,875	$	123,181

NON-GAAP OPERATING EXPENSES AND BUSINESS OPERATING EXPENSES RECONCILIATION

(In US$ thousand)

	NINE MONTHS			FOR THE THREE MONTHS ENDED														NINE MONTHS
	ENDED																	ENDED
	SEP 30/16			SEP 30/16			JUN 30/16		MAR 31/16			DEC 31/15			SEP 30/15			SEP 30/15

TOTAL EXPENSES	$	51,076		$	15,386		$	22,093	$	13,597		$	20,335		$	14,606		$	49,539

Less:
Impairment loss from expected credit losses on loans at amortized cost		17,186			5,077			9,966		2,143			1,867			8,761			15,380
Impairment loss (gain) from expected credit losses on investment securities		276			(210	)		479		7			4,746			(286	)		543
Impairment (gain) loss from expected credit losses on off-balance sheet instruments		(59	)		(725	)		1,579		(913	)		622			(6,740	)		(5,069	)
OPERATING EXPENSES	$	33,673		$	11,244		$	10,069	$	12,360		$	13,100		$	12,871		$	38,685

Less: Non-Core expenses
Other expenses related to the investment funds		361			0			292		69			(2	)		35			95
BUSINESS OPERATING EXPENSES	$	33,312		$	11,244		$	9,777	$	12,291		$	13,102		$	12,836		$	38,590

NON-GAAP BUSINESS PROFIT FOR THE PERIOD RECONCILIATION

(In US$ thousand)

	NINE MONTHS			FOR THE THREE MONTHS ENDED												NINE MONTHS
	ENDED															ENDED
	SEP 30/16			SEP 30/16		JUN 30/16		MAR 31/16			DEC 31/15			SEP 30/15		SEP 30/15

PROFIT FOR THE PERIOD	$	73,701		$	27,991	$	22,272	$	23,438		$	23,226		$	37,372	$	80,758

Less: Non-Core items
(Loss) gain per financial instrument at fair value through profit or loss - investment funds		(4,365	)		0		230		(4,595	)		(2,030	)		7,103		7,116
Other income related to investment funds		278			0		278		0			0			0		0
Other expenses related to the investment funds		361			0		292		69			(2	)		35		95
TOTAL NON-CORE ITEMS	$	(4,448	)	$	0	$	216	$	(4,664	)	$	(2,028	)	$	7,068	$	7,021

BUSINESS PROFIT FOR THE PERIOD	$	78,149		$	27,991	$	22,056	$	28,102		$	25,254		$	30,304	$	73,737