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Business segment information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
27.   Business segment information
 
The Bank’s activities are operated and managed in two segments, Commercial and Treasury. 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.
 
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 Segment. 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 of provision (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.
 
The Commercial Segment 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.
 
The Treasury Segment incorporates deposits in banks and all of the Bank’s trading assets, securities available-for-sale and held-to-maturity, and the balance of the investment funds. Operating income from the Treasury Segment includes net interest income from deposits with banks, securities available-for-sale and held-to-maturity, net interest margin related to investment funds, derivative and hedging activities, net gain (loss) from investment funds trading, net gain (loss) from trading securities, net gain on sale of securities available-for-sale, net gain (loss) on foreign currency exchange, and allocated income and operating expenses.
 
The following table provides certain information regarding the Bank’s continuing operations by segment:
 
Business Segment Analysis (1)
 
 
 
Year ended December 31
 
 
 
2014
 
2013
 
2012
 
COMMERCIAL
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
201,908
 
 
192,979
 
 
183,365
 
Interest expense
 
 
(79,674)
 
 
(77,931)
 
 
(73,398)
 
Net interest income
 
 
122,234
 
 
115,048
 
 
109,967
 
Net other income (2)
 
 
21,068
 
 
15,338
 
 
12,216
 
Operating expenses
 
 
(42,508)
 
 
(40,945)
 
 
(38,322)
 
Net operating income (3)
 
 
100,794
 
 
89,441
 
 
83,861
 
Reversal of provision (provision) for loan and off-balance sheet credit losses
 
 
(8,522)
 
 
1,217
 
 
12,389
 
Recoveries, net of impairment of assets
 
 
7
 
 
108
 
 
-
 
Net income attributable to Bladex stockholders
 
 
92,279
 
 
90,766
 
 
96,250
 
 
 
 
 
 
 
 
 
 
 
 
Commercial assets and contingencies (end of period balances):
 
 
 
 
 
 
 
 
 
 
Interest-earning assets (4 and 6)
 
 
6,677,734
 
 
6,141,630
 
 
5,708,456
 
Other assets and contingencies (5)
 
 
500,665
 
 
482,117
 
 
237,077
 
Total interest-earning assets, other assets and contingencies
 
 
7,178,399
 
 
6,623,747
 
 
5,945,533
 
 
 
 
 
 
 
 
 
 
 
 
TREASURY
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
10,822
 
 
12,324
 
 
9,072
 
Interest expense
 
 
8,075
 
 
(4,280)
 
 
(14,062)
 
Net interest income
 
 
18,897
 
 
8,044
 
 
(4,990)
 
Net other income (expense)(2)
 
 
6,483
 
 
(4,877)
 
 
14,612
 
Operating expenses
 
 
(11,194)
 
 
(13,361)
 
 
(17,492)
 
Net operating income (3)
 
 
14,186
 
 
(10,194)
 
 
(7,870)
 
Net income (loss)
 
 
14,186
 
 
(10,194)
 
 
(7,870)
 
Net income attributable to the redeemable noncontrolling interest
 
 
(475)
 
 
(4,185)
 
 
293
 
Net income (loss) attributable to Bladex stockholders
 
 
14,661
 
 
(6,009)
 
 
(8,163)
 
 
 
 
 
 
 
 
 
 
 
 
Treasury assets and contingencies (end of period balances):
 
 
 
 
 
 
 
 
 
 
Interest-earning assets (6)
 
 
1,231,243
 
 
1,326,506
 
 
1,035,313
 
Redeemable noncontrolling interest
 
 
-
 
 
(49,898)
 
 
(3,384)
 
Total interest-earning assets, other assets and contingencies
 
 
1,231,243
 
 
1,276,608
 
 
1,031,929
 
TOTAL
 
 
 
 
 
 
 
 
 
 
Interest income
 
 
212,730
 
 
205,303
 
 
192,437
 
Interest expense
 
 
(71,599)
 
 
(82,211)
 
 
(87,460)
 
Net interest income
 
 
141,131
 
 
123,092
 
 
104,977
 
Net other income (2)
 
 
27,551
 
 
10,461
 
 
26,828
 
Operating expenses
 
 
(53,702)
 
 
(54,306)
 
 
(55,814)
 
Net operating income (3)
 
 
114,980
 
 
79,247
 
 
75,991
 
 
 
 
Year ended December 31
 
 
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Net operating income (3)
 
 
114,980
 
 
79,247
 
 
75,991
 
Reversal of provision (provision) for loans and off-balance sheet credit losses
 
 
(8,522)
 
 
1,217
 
 
12,389
 
Recoveries, net of impairment of assets
 
 
7
 
 
108
 
 
-
 
Net income – business segment
 
 
106,465
 
 
80,572
 
 
88,380
 
Net income (loss) attributable to the redeemable noncontrolling interest
 
 
(475)
 
 
(4,185)
 
 
293
 
Net income attributable to Bladex stockholders – business segment
 
 
106,940
 
 
84,757
 
 
88,087
 
Other income unallocated - gain on sale of premises and equipment
 
 
-
 
 
-
 
 
5,626
 
Discontinued operations (Note 3)
 
 
-
 
 
(4)
 
 
(681)
 
Net income attributable to Bladex stockholders
 
 
106,940
 
 
84,753
 
 
93,032
 
 
 
 
 
 
 
 
 
 
 
 
Total assets and contingencies (end of period balances):
 
 
 
 
 
 
 
 
 
 
Interest-earning assets (4 y 6)
 
 
7,908,977
 
 
7,468,136
 
 
6,743,769
 
Other assets and contingencies (5)
 
 
500,665
 
 
482,117
 
 
237,077
 
Redeemable noncontrolling interest
 
 
-
 
 
(49,898)
 
 
(3,384)
 
Total interest-earning assets, other assets and contingencies
 
 
8,409,642
 
 
7,900,355
 
 
6,977,462
 
 
(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, recoveries on assets, and gain on sale of premises and equipment.
 
(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 investment funds.
 
 
 
Year ended December 31
 
 
 
2014
 
2013
 
2012
 
Reconciliation of Net other income:
 
 
 
 
 
 
 
 
 
 
Net other income – business segment
 
 
27,551
 
 
10,461
 
 
26,828
 
Reversal of provision (provision) for losses on off-balance sheet credit risk
 
 
(1,627)
 
 
(381)
 
 
4,046
 
Recoveries, net of impairment of assets
 
 
7
 
 
108
 
 
-
 
Gain on sale of premises and equipment
 
 
-
 
 
-
 
 
5,626
 
Net other income – consolidated financial statements
 
 
25,931
 
 
10,188
 
 
36,500
 
 
 
 
Year ended December 31
 
 
 
2014
 
2013
 
2012
 
Reconciliation of total assets:
 
 
 
 
 
 
 
 
 
 
Interest-earning assets – business segment
 
 
7,908,977
 
 
7,468,136
 
 
6,743,769
 
Allowance for loan losses
 
 
(79,675)
 
 
(72,751)
 
 
(72,976)
 
Customers’ liabilities under acceptances
 
 
114,018
 
 
1,128
 
 
1,157
 
Accrued interest receivable
 
 
47,938
 
 
40,727
 
 
37,819
 
Equipment and leasehold improvements, net
 
 
8,129
 
 
10,466
 
 
12,808
 
Derivative financial instruments used for hedging - receivable
 
 
12,324
 
 
15,217
 
 
19,239
 
Other assets
 
 
13,561
 
 
8,389
 
 
14,580
 
Total assets – consolidated financial statements
 
 
8,025,272
 
 
7,471,312
 
 
6,756,396
 
 
Geographic information is as follows:
 
 
 
2014
 
 
 
 
 
 
 
 
 
United
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States of
 
Cayman
 
 
 
 
 
 
Panama
 
Brazil
 
America
 
Islands
 
Total
 
Interest income
 
 
195,575
 
 
-
 
 
17,135
 
 
20
 
 
212,730
 
Interest expense
 
 
(70,539)
 
 
-
 
 
(1,023)
 
 
(37)
 
 
(71,599)
 
Net interest income
 
 
125,036
 
 
-
 
 
16,112
 
 
(17)
 
 
141,131
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equipment and leasehold improvements, net
 
 
7,994
 
 
-
 
 
135
 
 
-
 
 
8,129
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
United
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States of
 
Cayman
 
 
 
 
 
 
Panama
 
Brazil
 
America
 
Islands
 
Total
 
Interest income
 
 
184,501
 
 
33
 
 
18,501
 
 
2,268
 
 
205,303
 
Interest expense
 
 
(79,132)
 
 
-
 
 
(1,235)
 
 
(1,844)
 
 
(82,211)
 
Net interest income
 
 
105,369
 
 
33
 
 
17,266
 
 
424
 
 
123,092
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equipment and leasehold improvements, net
 
 
10,237
 
 
-
 
 
229
 
 
-
 
 
10,466
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
United
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States of
 
Cayman
 
 
 
 
 
 
Panama
 
Brazil
 
America
 
Islands
 
Total
 
Interest income
 
 
173,663
 
 
155
 
 
17,894
 
 
725
 
 
192,437
 
Interest expense
 
 
(86,019)
 
 
-
 
 
(1,332)
 
 
(109)
 
 
(87,460)
 
Net interest income
 
 
87,644
 
 
155
 
 
16,562
 
 
616
 
 
104,977
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equipment and leasehold improvements, net
 
 
12,397
 
 
8
 
 
403
 
 
-
 
 
12,808