For 2007, the Commercial Division’s operating income amounted to $42.3 million; an increase of 25% compared to 2006, reflecting a 26% increase in net interest income, the result of a 24% increase in the average loan portfolio and higher weighted average lending spreads over Libor.  Excluding the impact of 2006 net revenues from the impaired portfolio, operating income increased 35%.  The Bank no longer carries any impaired credits on its books, and thus, did not recognized revenues from such assets in 2007.    

Treasury Division
The Treasury Division incorporates the Bank’s investment securities activity.  Operating income from the Treasury Division is presented net of allocated operating expenses, and includes net interest income on investment securities, and gains and losses on derivatives and hedging activities, as well as the sale of securities and foreign currency exchange transactions.  

For 2007, the Treasury Division’s operating income amounted to $10.3 million, compared to $5.6 million in 2006, driven by higher gains in the available for sale portfolio. 

Bladex Asset Management
Bladex Asset Management (“BAM”) incorporates the Bank’s proprietary asset management activities.  Operating income from BAM is presented net of allocated operating expenses, and includes net interest income on trading securities, as well as trading gains and losses.  

For 2007, BAM’s operating income amounted to $18.6 million, reflecting higher gains from asset management activities.