Bladex Takes a Big Hit on Brazil's Political Crisis
Banks around the world depend on strong business conditions to help them make profitable loans, and Banco Latinoamericano de Comercio Exterior (NYSE: BLX), also known as Bladex, has long sought to capture Latin America's best opportunities from its centrally located headquarters in Panama. After a long slump throughout much of the region, a slight recovery in commodity prices during 2016 helped get Latin America back on track, and that had Bladex feeling more confident about its future.
Coming into the bank's second-quarter financial report on Friday, Bladex shareholders expected some pressure on top-line growth, but they hoped to see the bank making incremental progress in tapping into the region's strength to boost its profits. Unfortunately, the political crisis in Brazil put a stop to Bladex's forward momentum, and substantial declines in its results will force Bladex to move more aggressively to sustain its business going forward. Let's take a closer look at Bladex to see how it did, and what's ahead for the Panamanian financial institution.
Image source: Bladex.
Source: Fool.com
