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Business segment information | 12 Months Ended
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Dec. 31, 2011
Business segment information |
| 25. | Business segment information
The Bank’s activities are operated and managed in three segments, Commercial, Treasury and Asset Management. The segment information reflects this operational and management structure, in a manner consistent with the requirements outlined in ASC Topic 280 - Segment Reporting. The segment results are determined based on the Bank’s managerial accounting process, which assigns consolidated balance sheets, revenue and expense items to each reportable division on a systematic basis. In 2011, the Bank made the following changes in the measurement methods used to determine segment profit or loss. Current period´s interest expenses allocation methodology reflects allocated funding on a matched-funded basis, net of risk adjusted capital by business segment. Current period´s operating expenses allocation methodology allocates overhead expenses based on resource consumption by business segment. Prior periods’ presentation allocated interest expenses and overhead operating expenses based on the segments average portfolio. Comparative amounts for 2010 and 2009 have been reclassified to conform to current period presentation. The Bank incorporates net operating income(3) by business segment in order to disclose the revenue and expense items related to its normal course of business, segregating from the net income, the impact of reversals of reserves for loan losses and off-balance sheet credit risk, and recoveries on assets. In addition, the Bank’s net interest income represents the main driver of net operating income; therefore, the Bank presents its interest-earning assets by business segment, to give an indication of the size of business generating net interest income. Interest-earning assets also generate gains and losses on sales, such as for securities available-for-sale and trading assets and liabilities, which are included in net other income, in the Treasury and Asset Management segments. The Bank also discloses its other assets and contingencies by business segment, to give an indication of the size of business that generates net fees and commissions, also included in net other income, in the Commercial Segment. The Bank believes that the presentation of net operating income provides important supplementary information to investors regarding financial and business trends relating to the Bank’s financial condition and results of operations. These measures exclude the impact of reversals (provisions) for loan losses and reversals (provisions) for losses on off-balance sheet credit risk (together referred to as “reversal (provision) for credit losses”) which Bank’s management considers distort trend analysis. Net operating income disclosed by the Bank should not be considered a substitute for, or superior to, financial measures calculated differently from similar measures used by other companies. These measures, therefore, may not be comparable to similar measurements used by other companies. Commercial incorporates all of the Bank’s financial intermediation and fees generated by the commercial portfolio. The commercial portfolio includes book value of loans, selected deposits placed, acceptances and contingencies. Operating income from the Commercial Segment includes net interest income from loans, fee income and allocated operating expenses. Treasury incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity. Operating income from the Treasury Segment includes net interest income from deposits with banks, trading securities and securities available-for-sale and held-to-maturity, derivative and hedging activities, gains and losses from trading securities, gains and losses on sale of securities available-for-sale, gain and losses on foreign currency exchange, and allocated income and operating expenses. Asset Management incorporates the balance of the Investment Fund and the assets of the Brazilian Fund. Operating income from the Asset Management Segment includes net interest margin related to the Feeder’s participation in the net interest margin of the Fund, net gains from investment fund trading, fee income, and allocated operating expenses. Operating income from this segment also includes the net interest margin from the Brazilian Fund, as well as net gain (loss) from trading securities, fee income, and allocated operating expenses from the Brazilian Fund. The following table provides certain information regarding the Bank’s continuing operations by segment: Business Segment Analysis (1)
(In millions of US$) |  | 2011 |  |  | 2010 |  |  | 2009 |
COMMERCIAL |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 140.7 |  |  |  | 104.8 |  |  |  | 114.3 |
Interest expense |  |  | (59.0 | ) |  |  | (50.3 | ) |  |  | (60.4 | )
Net interest income |  |  | 81.7 |  |  |  | 54.5 |  |  |  | 53.9 |
Net other income (2) |  |  | 11.0 |  |  |  | 10.3 |  |  |  | 6.9 |
Operating expenses |  |  | (34.8 | ) |  |  | (28.3 | ) |  |  | (21.8 | )
Net operating income (3) |  |  | 57.9 |  |  |  | 36.5 |  |  |  | 39.0 |
(Provision) reversal of provision for loan and off-balance sheet credit losses |  |  | (4.4 | ) |  |  | 4.8 |  |  |  | (14.8 | )
Recoveries, net of impairment of assets |  |  | (0.1 | ) |  |  | 0.2 |  |  |  | (0.1 | )
Net income attributable to Bladex |  |  | 53.4 |  |  |  | 41.5 |  |  |  | 24.1 |
Commercial assets and contingencies (end of period balances): |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets (4) |  |  | 4,982.8 |  |  |  | 4,060.0 |  |  |  | 2,775.3 |
Other assets and contingencies (5) |  |  | 362.6 |  |  |  | 382.4 |  |  |  | 331.2 |
Total interest-earning assets, other assets and contingencies |  |  | 5,345.4 |  |  |  | 4,442.4 |  |  |  | 3,106.5 |
TREASURY |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 14.4 |  |  |  | 12.5 |  |  |  | 25.9 |
Interest expense |  |  | 6.3 |  |  |  | 8.2 |  |  |  | (11.5 | )
Net interest income |  |  | 20.7 |  |  |  | 20.7 |  |  |  | 14.4 |
Net other income (2) |  |  | 4.2 |  |  |  | (0.7 | ) |  |  | 11.9 |
Operating expenses |  |  | (10.2 | ) |  |  | (9.3 | ) |  |  | (9.6 | )
Net operating income (3) |  |  | 14.7 |  |  |  | 10.7 |  |  |  | 16.7 |
Net income (loss) attributable to Bladex |  |  | 14.7 |  |  |  | 10.7 |  |  |  | 16.7 |
Treasury assets and contingencies (end of period balances): |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets (6) |  |  | 1,270.1 |  |  |  | 873.6 |  |  |  | 931.8 |
Other assets and contingencies (5) |  |  | - |  |  |  | - |  |  |  | 3.0 |
Total interest-earning assets, other assets and contingencies |  |  | 1,270.1 |  |  |  | 873.6 |  |  |  | 934.8 |
ASSET MANAGEMENT |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 2.3 |  |  |  | 2.2 |  |  |  | 1.8 |
Interest expense |  |  | (2.0 | ) |  |  | (2.9 | ) |  |  | (5.3 | )
Net interest income |  |  | 0.3 |  |  |  | (0.7 | ) |  |  | (3.5 | )
Net other income (2) |  |  | 20.5 |  |  |  | (7.2 | ) |  |  | 25.5 |
Operating expenses |  |  | (5.0 | ) |  |  | (4.5 | ) |  |  | (6.8 | )
Net operating income (3) |  |  | 15.8 |  |  |  | (12.4 | ) |  |  | 15.2 |
Net income (loss) |  |  | 15.8 |  |  |  | (12.4 | ) |  |  | 15.2 |
Net income (loss) attributable to the redeemable noncontrolling interest |  |  | 0.7 |  |  |  | (2.4 | ) |  |  | 1.1 |
Net income (loss) attributable to Bladex |  |  | 15.1 |  |  |  | (10.0 | ) |  |  | 14.1 |
Funds’ assets and contingencies (end of period balances): |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets (6) |  |  | 127.0 |  |  |  | 167.3 |  |  |  | 197.6 |
Other assets |  |  | - |  |  |  | - |  |  |  | 0.1 |
Total interest-earning assets, other assets and contingencies |  |  | 127.0 |  |  |  | 167.3 |  |  |  | 197.7 |
TOTAL |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 157.4 |  |  |  | 119.5 |  |  |  | 142.0 |
Interest expense |  |  | (54.7 | ) |  |  | (45.0 | ) |  |  | (77.2 | )
Net interest income |  |  | 102.7 |  |  |  | 74.5 |  |  |  | 64.8 |
Net other income (2) |  |  | 35.7 |  |  |  | 2.4 |  |  |  | 44.3 |
Operating expenses |  |  | (50.0 | ) |  |  | (42.1 | ) |  |  | (38.2 | )
Net operating income (3) |  |  | 88.4 |  |  |  | 34.8 |  |  |  | 70.9 |
(Provision) reversal of provision for loans and off-balance sheet credit losses |  |  | (4.4 | ) |  |  | 4.8 |  |  |  | (14.8 | )
Recoveries, net of impairment of assets |  |  | (0.1 | ) |  |  | 0.2 |  |  |  | (0.1 | )
Net income |  |  | 83.9 |  |  |  | 39.8 |  |  |  | 56.0 |
Net income (loss) attributable to the redeemable noncontrolling interest |  |  | 0.7 |  |  |  | (2.4 | ) |  |  | 1.1 |
Net income attributable to Bladex |  |  | 83.2 |  |  |  | 42.2 |  |  |  | 54.9 |
Total assets and contingencies (end of period balances): |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets (4 & 6) |  |  | 6,379.9 |  |  |  | 5,100.9 |  |  |  | 3,904.7 |
Other assets and contingencies (5) |  |  | 362.6 |  |  |  | 382.4 |  |  |  | 334.3 |
Total interest-earning assets, other assets and contingencies |  |  | 6,742.5 |  |  |  | 5,483.3 |  |  |  | 4,239.0 |
| (1) | The numbers set out in these tables have been rounded and accordingly may not total exactly.
| (2) | Net other income excludes reversals (provisions) for loans and off-balance sheet credit losses, and recoveries on assets.
Reconciliation of Net other income: |  |  |  |  |  |  |  |  |  |  |  |
Net other income – business segment |  |  | 35.7 |  |  |  | 2.4 |  |  |  | 44.3 |
Reversal of provision for losses on off-balance sheet credit risk |  |  | 4.4 |  |  |  | 13.9 |  |  |  | 3.5 |
Recoveries, net of impairment of assets |  |  | (0.1 | ) |  |  | 0.2 |  |  |  | (0.1 | )
Net other income – consolidated financial statements |  |  | 40.0 |  |  |  | 16.5 |  |  |  | 47.7 |
| (3) | Net operating income refers to net income excluding reversals (provisions) for loans and off-balance sheet credit losses and recoveries on assets.
| (4) | Includes selected deposits placed, and loans, net of unearned income and deferred loan fees.
| (5) | Includes customers’ liabilities under acceptances, letters of credit and guarantees covering commercial and country risk, and credit commitments.
| (6) | Includes cash and due from banks, interest-bearing deposits with banks, securities available for sale and held to maturity, trading securities and the balance of the Investment Fund.
Reconciliation of Total assets: |  |  |  |  |  |  |  |  |
Interest-earning assets – business segment |  |  | 6,379.9 |  |  |  | 5,100.9 |  |  |  | 3,904.7 |
Allowance for loan losses |  |  | (88.5 | ) |  |  | (78.6 | ) |  |  | (73.8 | )
Customers’ liabilities under acceptances |  |  | 1.1 |  |  |  | 27.2 |  |  |  | 1.6 |
Premises and equipment |  |  | 6.7 |  |  |  | 6.5 |  |  |  | 7.7 |
Accrued interest receivable |  |  | 38.2 |  |  |  | 31.1 |  |  |  | 25.6 |
Derivative financial instruments used for hedging - receivable |  |  | 4.2 |  |  |  | 2.1 |  |  |  | 0.8 |
Other assets |  |  | 18.4 |  |  |  | 10.9 |  |  |  | 12.2 |
Total assets – consolidated financial statements |  |  | 6,360.0 |  |  |  | 5,100.1 |  |  |  | 3,878.8 |
Geographic information is as follows:
|  | 2011 |
(In thousands of US$) |  |  |  |  |  |  |  | United |  |  |  |  |  |  |
|  |  |  |  |  |  |  | States of |  |  | Cayman |  |  |  |
|  | Panama |  |  | Brazil |  |  | America |  |  | Islands |  |  | Total |
Interest income |  |  | 144,491 |  |  |  | 114 |  |  |  | 10,595 |  |  |  | 2,227 |  |  |  | 157,427 |
Interest expense |  |  | (53,411 | ) |  |  | - |  |  |  | (983 | ) |  |  | (323 | ) |  |  | (54,717 | )
Net interest income |  |  | 91,080 |  |  |  | 114 |  |  |  | 9,612 |  |  |  | 1,904 |  |  |  | 102,710 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Premises and equipment, net |  |  | 6,125 |  |  |  | 10 |  |  |  | 538 |  |  |  | - |  |  |  | 6,673 |
|  | 2010 |
(In thousands of US$) |  |  |  |  |  |  |  | United |  |  |  |  |  |  |
|  |  |  |  |  |  |  | States of |  |  | Cayman |  |  |  |
|  | Panama |  |  | Brazil |  |  | America |  |  | Islands |  |  | Total |
Interest income |  |  | 106,673 |  |  |  | - |  |  |  | 10,607 |  |  |  | 2,198 |  |  |  | 119,478 |
Interest expense |  |  | (41,266 | ) |  |  | - |  |  |  | (2,746 | ) |  |  | (963 | ) |  |  | (44,975 | )
Net interest income |  |  | 65,407 |  |  |  | - |  |  |  | 7,861 |  |  |  | 1,235 |  |  |  | 74,503 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Premises and equipment, net |  |  | 6,039 |  |  |  | - |  |  |  | 493 |  |  |  | - |  |  |  | 6,532 |
|  | 2009 |
(In thousands of US$) |  |  |  |  |  |  |  | United |  |  |  |  |  |  |
|  |  |  |  |  |  |  | States of |  |  | Cayman |  |  |  |
|  | Panama |  |  | Brazil |  |  | America |  |  | Islands |  |  | Total |
Interest income |  |  | 122,731 |  |  |  | - |  |  |  | 17,470 |  |  |  | 1,763 |  |  |  | 141,964 |
Interest expense |  |  | (69,066 | ) |  |  | - |  |  |  | (5,821 | ) |  |  | (2,325 | ) |  |  | (77,212 | )
Net interest income |  |  | 53,665 |  |  |  | - |  |  |  | 11,649 |  |  |  | (562 | ) |  |  | 64,752 |
Long-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Premises and equipment, net |  |  | 7,096 |  |  |  | - |  |  |  | 653 |  |  |  | - |  |  |  | 7,749 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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