In 2007, commercial activity at Bladex was driven by a portfolio management philosophy focused on the improvement of profitability, and the strengthening of the strategy of client and product base diversification. This approach resulted in a 25% increase in operating income and 16% growth in the average credit portfolio.
Bladex continued to expand its corporate client base; indeed, corporate borrowers represented represented 49% of the total of 270 clients in December 2007. Thanks to the addition of 45 new corporate clients, the overall client base increased 17% in 2007. Over the same period, there was a slight reduction in the number of financial institution clients, as a result of the consolidation of financial systems, mainly in Central America. Nevertheless, the recent liquidity crisis and the volatility in the markets highlighted the important role played by Bladex in the Region: the decreasing trend that had occurred in the institutional portfolio was reversed, with an increase in the last quarter bringing the portfolio to 51.1% of the bank's total exposure.
For the second consecutive year, Bladex disbursed over $8 billion in Latin America and the Caribbean, continuing with geographical diversification of the portfolio. Bladex diminished the relative importance of its business in Brazil, from 42.1% of the total portfolio in 2006 to 37.4% in late 2007. Mexico, Colombia, and Peru showed the greatest growth, with Mexico representing almost 10% of the total portfolio, mainly from corporate loans. The bank's portfolio in Mexico underwent dramatic change over the past two years, an evolution that was, part of Badex's general strategy. |