economy

Banking

Bladex back in the black

Banco de Comercio Exterior (Bladex) has rebounded from a disappointing final quarter of 2008, when it posted a loss of $4.3 million, to record a $16.7 million net profit for the first quarter of 2009.

The bank's profits, however, represented a 13 percent decrease as compared to the first quarter of 2008, when it had a net profit of $19.2 million.

"Bladex has shown the ability to operate profitably and soundly amid unprecedented volatility in financial markets and a general decline in the global economic environment," said Vice President Jaime Rivera.

The banker said the institution has been affected by the financial crisis, whose effects have been felt later in Latin America than in other regions of the world. Although the region was well-prepared to face economic difficulties, Rivera said that the impacts of tighter credit and lower demand for some services will continue to have an impact on banking operations.

Analysts and rating agencies have recommended to banks that they take conservative positions on acceptance of credit rating of portfolios and refinancing of debt. Also, they have suggested banks enhance assets and diversify their sources of funding. Short-term objectives of Bladex focus on the conservation of resources so that, when markets begin to recover, it can take full advantage of opportunities that arise.