Banco Latinoamericano de Comercio Exterior, S.A (BLX) supplies international trade financing to companies and commercial banks in Latin America. The bank operates in a conservative way which is good for the company’s stability. As Forbes Magazine reported, “From a risk perspective, BLX is a very conservatively financed bank, with a Tier One ratio in excess of 19%. So unlike the banks that are facing troubles in the U.S. and in Europe, BLX is a conservative bank that looks poised to grow and it’s trading at a very attractive valuation.”
The bank’s Commercial division’s services include loans and contingencies, primarily loans related to individually specified international trade transactions. It offers letters of credit and guarantees for credit commitments, commercial and country risks, equity investments, and reimbursements. This division also offers solutions and services involved in international trade.
The bank’s treasury division provides financial management to companies and also investment securities services.
Some of the bank’s managerial staff are: Anna Seghini, Eucadis de Molina, Nitza Maiolina, and Ludmilla Courteau.
We all know that the finance industry is in bad straights, due partially to many risky loans and partially to the world economic situation. The stocks of most financial companies are going down and are no longer the great investments that they once were. Well, Banco Latinoamericano de Comercio Exterior, S.A (BLX) is a stock that is holding its own in today’s declining market. Ok, it’s only holding its own but that shows that the company is well run since most bank stocks are declining. It also pays a dividend of 5.1%. This stock might be worthwhile to buy for the dividend. As the company grows and the market turns around the stock price will also rise.
As with all stocks that Benchmark Journal writes about, these stocks should be examined by a financial expert. Also, Latin America has its own, region specific risks that should be taken into account.
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