A sustained positive trend in letter of credit (L/C) business written by Banco Latinoamericano de Comercio Exterior (Bladex) has been highlighted as a contributory factor in the banks 10 per cent increase in profits in the second quarter of 2021 compared with the same year's first quarter.

The bank's profits increased to US$14.1 million in the second quarter driven by solid quarterly revenue growth up 17 per cent in the second compared with the first quarter from increased net interest income on higher average credits, and from an uplift in fees.

Sustained L/C trend

Fees and commissions income at Bladex totalled US$4.3 million in the second quarter of 2021, up 41 per cent on a quarter-by-quarter and 120 per cent on a year-on-year basis.

Bladex says this was due to the "sustained positive trend in the bank's L/C business, along with the return of loan syndications activity".

Regional specialist

Panama-based Bladex was established in 1979 by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the region.

In May the bank announced the issuance of its first Best Efforts ESG (environmental, social and governance) bond, the net proceeds of which will be deployed on a best effort basis to fund initiatives with positive environmental and social impacts.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.