Trade tensions have captured the attention of investors around the world, and worsening relations between key trading partners have taken their toll on financial institutions globally. U.S. banks have suffered as a result of flattening yield curves and uncertain economic prospects. But the potential impact on banking institutions in key emerging markets like Latin America could be even larger, and that has a lot of people watching the Panamanian Banco Latinoamericano de Comercio Exterior (NYSE: BLX), also known as Bladex.
Bladex is popular among investors because of its strong dividend and access to the Latin American market, and its prospects have generally been tied to the health of the regional economy. Bladex's recent third-quarter results showed some of the challenges the region is facing, but the bank remains optimistic that it can overcome trade-related headwinds and keep its shareholders satisfied.
Bladex's third-quarter results were a good indicator of how things are going in Latin America. Total revenue eased lower by 2% to $29.5 million, reversing the year-over-year growth that the bank had seen three months ago. Net income came in at $20.4 million, which was a massive improvement from last year's losses and worked out to $0.52 per share in earnings.