Bladex's Second Quarter 2016 Net Profit Totaled $22.3 Million, or $0.57 Per Share, a 65% Increase YoY and 5% Decrease QoQ. Half-year 2016 Net Business Profit Reached $50.2 Million (+15% YoY), or $1.28

PANAMA CITY, July 26, 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 June 30, 2015 ("2Q15" and "1H15" or "6M15") has also been prepared in accordance with IFRS to allow year-on-year comparisons.

2Q16 and 1H16 Highlights

Reported results:

• Bladex's 2Q16 Net Profit totaled $22.3 million (+65% YoY, -5% QoQ) on robust net interest income (+10% YoY, -3% QoQ), increased fees and other income (+43% YoY, +87% QoQ), and improved efficiency through lower operating expenses (-21% YoY, -19% QoQ), offsetting higher provisions for impairment from allowance for credit losses. In the 2Q16, the Bank's results also benefited from the divestment of its remaining participation in the investment funds effective April 1^st, 2016, with a residual gain of $0.2 million recorded for the quarter, compared to losses from its participation in the investment funds recorded during the comparison quarters.
• The Bank's 1H16 Net Profit totaled $45.7 million (+5% YoY), as Business Profit of $50.2 million improved (+15% YoY) mainly from higher net interest income (+10% YoY), increased fees and other income (+26%), and lower operating expenses (-13% YoY), compensating non-core losses from the participation in investments funds of $4.4 million, and higher provisions for impairment from allowance for credit losses of $13.3 million.
• 2Q16 and 1H16 net interest income reached $38.2 million (+10% YoY, -3% QoQ) and $77.7 million (+10% YoY), respectively, on higher Net Interest Margin ("NIM") of 2.06% for both 2Q16 and 1H16 (+27 bps YoY, unchanged QoQ for 2Q16; +24 bps YoY for 1H16), mainly reflecting higher lending spreads and increased market rates, which more than offset the effects of lower average lending balances (-3% YoY, -2% QoQ).
• Fees and other income totaled $5.3 million in the 2Q16 (+43% YoY, +87% QoQ), as five transactions in the loan structuring and syndication business were completed during 2Q16. Year-to-date 2016, fees and other income reached $8.1 million (+26% YoY).

Key performance metrics:

• The Bank's 1H16 Business and Total Annualized Return on Average Equity ("ROAE") reached 10.3% and 9.4%, respectively, compared to Business and Total ROAE of 9.4% in 1H15. 2Q16 Business and Total annualized ROAE reached 9.0% and 9.1%, respectively.
• The Bank's 1H16 Business Efficiency Ratio and Total Efficiency Ratio improved to 26% (-7 pts. YoY) and 28% (-5 pts. YoY), respectively, on higher total income (+4% YoY) and lower operating expenses (-13% YoY), mainly reflecting decreased performance-related compensation expense. 2Q16 Business Efficiency and Total Efficiency Ratios improved to 22% (-11 pts. YoY, -8 pts. QoQ), and 23% (-12 pts. YoY, -10 pts. QoQ), respectively.
• The Bank maintained solid capitalization with a 15.6% Tier 1 Basel III ratio as of June 30, 2016, together with high levels of liquidity, in response to heightened market volatility.

Commercial Portfolio & Quality: