FOREIGN TRADE BANK OF LATIN AMERICA, INC. | CIK:0000890541 | 3

  • Filed: 4/30/2018
  • Entity registrant name: FOREIGN TRADE BANK OF LATIN AMERICA, INC. (CIK: 0000890541)
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    • ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory

    15.
    Capital and Reserves
     
    15.1 Common stock
     
    The Bank’s common stock is divided into four categories:
     
    1)
    “Class A”; shares may only be issued to Latin American Central Banks or banks in which the state or other government agency is the majority shareholder.
     
    2)
    “Class B”; shares may only be issued to banks or financial institutions.
     
    3)
    “Class E”; shares may be issued to any person whether a natural person or a legal entity.
     
    4)
    “Class F”; may only be issued to state entities and agencies of non-Latin American countries, including, among others, central banks and majority state-owned banks in those countries, and multilateral financial institutions either international or regional institutions.
     
    The holders of “Class B” shares have the right to convert or exchange their “Class B” shares, at any time, and without restriction, for “Class E” shares, at a rate of one-to-one.
     
    The following table provides detailed information on the Bank’s common stock activity per class for each of the periods in the three-years ended December 31, 2017, 2016 and 2015:
     
    (Share units)
     
    “Class A”
     
    “Class B”
     
    “Class E”
     
    “Class F”
     
    Total
     
    Authorized
     
     
    40,000,000
     
     
    40,000,000
     
     
    100,000,000
     
     
    100,000,000
     
     
    280,000,000
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Outstanding at January 1, 2015
     
     
    6,342,189
     
     
    2,479,050
     
     
    29,956,100
     
     
    -
     
     
    38,777,339
     
    Conversions
     
     
    -
     
     
    (4,581)
     
     
    4,581
     
     
    -
     
     
    -
     
    Repurchase common stock
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
    Restricted stock issued – directors
     
     
    -
     
     
    -
     
     
    57,000
     
     
    -
     
     
    57,000
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    70,358
     
     
    -
     
     
    70,358
     
    Restricted stock units – vested
     
     
    -
     
     
    -
     
     
    64,208
     
     
    -
     
     
    64,208
     
    Outstanding at December 31, 2015
     
     
    6,342,189
     
     
    2,474,469
     
     
    30,152,247
     
     
    -
     
     
    38,968,905
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Conversions
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
    Restricted stock issued – directors
     
     
    -
     
     
    -
     
     
    57,000
     
     
    -
     
     
    57,000
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    68,785
     
     
    -
     
     
    68,785
     
    Restricted stock units – vested
     
     
    -
     
     
    -
     
     
    65,358
     
     
    -
     
     
    65,358
     
    Outstanding at December 31, 2016
     
     
    6,342,189
     
     
    2,474,469
     
     
    30,343,390
     
     
    -
     
     
    39,160,048
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Conversions
     
     
    -
     
     
    (64,663)
     
     
    64,663
     
     
    -
     
     
    -
     
    Repurchase common stock
     
     
    -
     
     
    (1,000)
     
     
    -
     
     
    -
     
     
    (1,000)
     
    Restricted stock issued – directors
     
     
    -
     
     
    -
     
     
    57,000
     
     
    -
     
     
    57,000
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    142,268
     
     
    -
     
     
    142,268
     
    Restricted stock units – vested
     
     
    -
     
     
    -
     
     
    70,519
     
     
    -
     
     
    70,519
     
    Outstanding at December 31, 2017
     
     
    6,342,189
     
     
    2,408,806
     
     
    30,677,840
     
     
    -
     
     
    39,428,835
     
     
    The following table presents information regarding shares repurchased but not retired by the Bank and accordingly classified as treasury stock:
     
     
     
    “Class A”
     
    “Class B”
     
    “Class E”
     
    Total
     
     
     
    Shares
     
    Amount
     
    Shares
     
    Amount
     
    Shares
     
    Amount
     
    Shares
     
    Amount
     
    Outstanding at January 1, 2015
     
     
    318,140
     
     
    10,708
     
     
    589,174
     
     
    16,242
     
     
    2,295,186
     
     
    50,677
     
     
    3,202,500
     
     
    77,627
     
    Repurchase of common stock
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
    Restricted stock issued – directors
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (57,000)
     
     
    (1,259)
     
     
    (57,000)
     
     
    (1,259)
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (70,358)
     
     
    (1,553)
     
     
    (70,358)
     
     
    (1,553)
     
    Restricted stock units – vested
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (64,208)
     
     
    (1,418)
     
     
    (64,208)
     
     
    (1,418)
     
    Outstanding at December 31, 2015
     
     
    318,140
     
     
    10,708
     
     
    589,174
     
     
    16,242
     
     
    2,103,620
     
     
    46,447
     
     
    3,010,934
     
     
    73,397
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Repurchase of common stock
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
    Restricted stock issued – directors
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (57,000)
     
     
    (1,259)
     
     
    (57,000)
     
     
    (1,259)
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (68,785)
     
     
    (1,519)
     
     
    (68,785)
     
     
    (1,519)
     
    Restricted stock units – vested
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (65,358)
     
     
    (1,443)
     
     
    (65,358)
     
     
    (1,443)
     
    Outstanding at December 31, 2016
     
     
    318,140
     
     
    10,708
     
     
    589,174
     
     
    16,242
     
     
    1,912,477
     
     
    42,226
     
     
    2,819,791
     
     
    69,176
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Repurchase of common stock
     
     
    -
     
     
    -
     
     
    1,000
     
     
    28
     
     
    -
     
     
    -
     
     
    1,000
     
     
    28
     
    Restricted stock issued - directors
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (57,000)
     
     
    (1,259)
     
     
    (57,000)
     
     
    (1,259)
     
    Exercised stock options - compensation plans
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (142,268)
     
     
    (3,140)
     
     
    (142,268)
     
     
    (3,140)
     
    Restricted stock units - vested
     
     
    -
     
     
    -
     
     
    -
     
     
    -
     
     
    (70,519)
     
     
    (1,557)
     
     
    (70,519)
     
     
    (1,557)
     
    Outstanding at December 31, 2017
     
     
    318,140
     
     
    10,708
     
     
    590,174
     
     
    16,270
     
     
    1,642,690
     
     
    36,270
     
     
    2,551,004
     
     
    63,248
     
     
    15.2 Reserves
     
    The Banking Law in the Republic of Panama requires banks with general banking license to maintain a total capital adequacy index that shall not be lower than 8% of total assets and off-balance sheet irrevocable contingency transactions, weighted according to their risk; and primary capital equivalent that shall not be less than 4.5% of its assets and loans commitments and financial guarantees contracts, weighted according to their risk. As of December 31, 2017, the Bank’s total capital adequacy ratio is 18.71% which is in compliance with the minimum capital adequacy ratios required by the Banking Law in the Republic of Panama.
     
    15.3 Restriction on retained earnings
     
    The Bank does not have restrictions on its ability to access its retained earnings other than those resulting from the supervisory framework which the Bank is subject to, in order to operate. The supervisory framework requires banks to keep an additional reserve as part of equity to cover credit risk of their lending facilities. As of December 31, 2017 and 2016, $129,254 and $62,459, respectively, of the Bank’s retained earnings are restricted from dividend distribution for purposes of complying with local regulatory requirements.
     
     
     
    December 31,
    2017
     
    December 31,
    2016
     
    Dynamic provision
     
     
    108,756
     
     
    43,826
     
    Regulatory reserve
     
     
    20,498
     
     
    18,633
     
     
     
     
    129,254
     
     
    62,459
     
     
    15.4 Additional paid-in capital
     
    As of December 31, 2017 and 2016, the additional paid-in capital consists of additional cash contributions to the common capital paid by shareholders.