16 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Oct 20, 2023
Slide 1: 3Q23 Earnings Results
3Q23 Earnings Results October 2023
Slide 2: Key Results: Sustained Strong Financial Performance in 3Q23
Key Results: Sustained Strong Financial Performance in 3Q23 Stable Loan Portfolio and Strong Credit Book Deposits Growth on Deposits $9.2 Bn $4.2 Bn ↑ 1% QoQ |↑ 4% YoY ↑ 3% QoQ |↑ 23% YoY Higher Profits and RoE Expansion Fostered Net Income Quaterly ROE by increased Margins $45.8M 15.9% ↑ 23% QoQ |↑
Slide 3: Consistent Increasing Profitability
Consistent Increasing Net Income & RoE Quarterly Profitability Consolidating 15.9% Sustainable Double-Digit 13.7% 13.4% Returns 11.6% 10.3% 45.8 37.0 37.1 31.0 26.9 3Q22 4Q22 1Q23 2Q23 3Q23 Net Income RoE Quarterly 3 (USD millions, except for %)
Slide 4: Optimal Capital Allocation with Well-Diversified Commercial and Investment Portfolios
Optimal Capital Allocation in Challenging Macro Environment with Well- Diversified Commercial and Investment Portfolios (USD millions, except for %) Commercial Portfolio1 by Country Total Assets 41% Investment Grade 59% Non-Investment Grade YoY +8% 13% Colombia Mexico 12% Brazil 13% 10,134 10,095 Pe
Slide 5: Record Level of Deposits and Diverse Funding Structure
Record Level of Deposits and Diverse Funding Structure Provide a Solid Base for Balance Sheet Growth Funding Sources Funding by Product 8,530 8,454 8,030 7,908 7,872 2,251 Deposits 36% 2,454 1,948 2,222 2,240 Yankee CDs 14% Repos 2% 1,797 1,597 2,144 144a / Regs 5% 1,715 2,194 3Q23 408 196 EMTN 4% 5
Slide 6: Strong Capitalization Supports Business
Strong Capitalization Capital Supports Business & Balance Sheet Expansion 15.7% 15.4% 14.4% 13.6% 13.6% 12.2% 1,161 1,128 1,049 Declared dividends 3Q23 $0.25 600 3Q22 2Q23 3Q23 per share Equity Capital Adequacy Index 1 Tier 1 Capital Ratio (Basel III)2 (USD millions, except for %) (1) As defined by
Slide 7: Net Interest Margin and Balance Sheet Growth Drive Top-line Performance
Net Interest Margin and Balance Sheet Growth Continue to Drive Robust Top-line Performance Net Interest Spread Avg. Interest-Earning Assets, NIM & NII Rate of Interest-Earning Assets Rate of Interest-Bearing Liabilities 60.5 54.5 7.37% 6.99% 2.48% 2.42% NIS 40.2 NIS 1.83% 9,689 1.79% 1.77% 5.54% 8,9
Slide 8: Growing Letters of Credit and Syndications Business Drive Fee Income
Growing Letters of Credit and Total Fees Syndications Business Drive Fee Income 11.1 2.2 Other Fees YoY +77% 2.7 6.3 6.5 Syndication Fees 0.2 0.7 5.3 0.8 0.3 4.8 2.6 0.5 1.3 0.4 6.2 Letters of Credit Fees 5.0 3.7 3.9 3.5 3Q22 4Q22 1Q23 2Q23 3Q23 8 (USD millions, except for %)
Slide 9: Strong Asset Quality, Low Credit Risk and Robust Reserve Coverage
Strong Asset Quality, Low Credit Exposure by Stages Risk and Robust Reserve Coverage Stage 2 3% $273M Stage 3 0.1% $10M $9.2Bn Stage 1 97% $8,961M (USD millions, except for %) Total Allowance for Credit Losses to Impaired Credits (USD millions, except for %) 3Q22 4Q22 1Q23 2Q23 3Q23 556% Allowance f
Slide 10: Strong Revenue Growth Maintains Lower Cost-to-Income Ratio
Strong Revenue Growth Maintains Opex & Efficiency Ratio Lower Cost-to- Income Ratio 31.6% 30.8% 27.2% 27.2% 26.9% 19.5 16.4 15.9 15.6 14.6 3Q22 4Q22 1Q23 2Q23 3Q23 Total Expenses Efficiency Ratio (USD millions, except for %) 10
Slide 11: NII Growth Driven by Strategic Initiatives and Market Interest Rates
NII Growth Driven by Successful Implementation of Strategic Initiatives and Market Interest Rates NII 9M22 98.6 Market Interest 27.6 Effect of higher market rates on the share of the balance sheet funded by Rates 40% equity. 41.4 Successful implementation of strategic initiatives has driven higher m
Slide 12: Updated 2023 Guidance
Updated 2023 Guidance Previous Reviewed NIM 2.1% - 2.4% 2.4% - 2.5% Fee Growth 8% - 10% 40% - 50% Efficiency ~32% 27% - 28% ROE 11% - 13% 14% - 15% CET1 15% - 16% Unchanged 12
Slide 13: Q&A
Q&A OCTOBER 2023 13
Slide 14: Disclaimer
Disclaimer This presentation contains forward-looking statements of expected future developments within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as: “anticipa
Slide 15: Exhibits
Bladex¥ Exhibits OCTOBER 202350 TED
Slide 16: Additional Information
Additional Information 3Q23 2Q23 3Q22 9M23 9M22 Key Income Statement Highlights Net Interest Income ("NII") $60.5 $54.5 $40.2 $167.6 $98.6 Fees and commissions, net $11.1 $6.5 $6.3 $22.4 $14.5 (Loss) gain on financial instruments, net $0.0 ($3.6) ($0.3) ($1.9) $0.2 Other income, net $0.1 $0.1 $0.2 $