Bladex (BLX) Misses Q2 EPS by 13c

July 20, 2018 6:53 AM

Bladex (NYSE: BLX) reported Q2 EPS of $0.42, $0.13 worse than the analyst estimate of $0.55.

CEO's Comments

Mr. N. Gabriel Tolchinsky, Bladex's Chief Executive Officer, said, "Our second quarter results improved relative to the first quarter, with positive performance trends such as higher loan balances and fee-related income, as well as lower operating expenses. However, a more challenging environment is developing, particularly in the region\'s three largest economies – Brazil, Mexico and Argentina. During the past several weeks we saw diminishing expectations for economic growth in Brazil due to the truckers\' strike, Argentina\'s currency depreciating by more than 30% and Mexico\'s election of a populist candidate. These challenges were exacerbated by more protectionist measures out of Washington with potential negative impact on trade and on the region\'s economic growth. This environment, if it persists, may influence our perception of credit risk for our performing loan portfolio as well as recoveries for problem loans."

Mr. Tolchinsky stated that "during the first half of 2Q2018, credit spreads didn't reflect incremental risk and continued to be influenced by high US dollar liquidity in the region. In the second half of the quarter however, we experienced higher margins. In the coming quarters we will continue to extend the average tenor of our short-term originations and increase medium-term loan originations for good credit quality borrowers. At the same time, from an operational perspective, we will continue to focus on reducing costs and increasing productivity and efficiency."

For earnings history and earnings-related data on Bladex (BLX) click here.

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Earnings Guidance Management Comments