16 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Jul 21, 2023
Slide 1: 2Q23 Earnings Results
2Q23 Earnings Results July 2023
Slide 2: Key Results: Sustained Strong Financial Performance in 2Q23
Key Results: Sustained Strong Financial Performance in 2Q23 Stable Loan Portfolio and Strong Credit Book Deposits Growth on Deposits $9.1 Bn $4.1 Bn ↑ 5% QoQ |↑ 5% YoY ↑ 14% QoQ |↑ 31% YoY NII NIM Increased NII and Margin Expansion $54.5M 2.42% ↑3 % QoQ |↑ 67% YoY ↑ 1 bps QoQ | ↑ 88 bps YoY Strong F
Slide 3: Increased Profitability Consolidating Sustainable Double-Digit Returns
Increased Profitability Net Income & RoE Quarterly Consolidating Sustainable Double-Digit Returns 13.7% 13.4% 11.6% 10.3% 9.1% 37.0 37.1 31.0 26.9 23.0 2Q22 3Q22 4Q22 1Q23 2Q23 Net Income RoE Quarterly 3 (USD millions, except for %)
Slide 4: Record Total Assets and Optimal Capital Allocation in Challenging Macro Environment
Record Total Assets and Optimal Capital Allocation in Challenging Macro Environment with Well-Diversified Commercial and Investment Portfolios (USD millions, except for %) Commercial Portfolio1 by Country Total Assets 46% Investment Grade 54% Non-Investment Grade YoY +14% Brazil 13% Mexico 12% 10,13
Slide 5: Record Level of Deposits and Diverse Funding Structure Provide a Solid Base
Record Level of Deposits and Diverse Funding Structure Provide a Solid Base for Balance Sheet Growth Funding Sources Funding by Product Deposits 38% Yankee CDs 10% 8,530 8,030 Repos 5% 7,908 7,872 7,641 2Q23 144a / Regs 5% 2,251 1,948 2,222 2,240 $8,530 EMTN 3% 2,031 MXN-PAN Issuances 13% 1,797 Borr
Slide 6: Strong Capitalization and Constant Dividend
Strong Capitalization and Capital Constant Dividend amidst Strategic Focus on 15.1% 15.3% 15.3% 15.7% Profitability 14.4% 13.5% 13.6% 13.2% 12.9% 12.2% 1,128 1,069 1,096 1,049 1,019 Declared dividends 2Q23 $0.25 2Q22 3Q22 4Q22 1Q23 2Q23 per share Equity Capital Adequacy Index 1 Tier 1 Capital Ratio
Slide 7: Strong Net Interest Margin and Spread Drive Robust Top-line Performance
Strong Net Interest Margin and Spread Drive Robust Top-line Performance Net Interest Spread Net Interest Margin Rate of Interest-Earning Assets NIM Rate of Interest-Bearing Liabilities 2.41% 2.42% 6.99% 6.48% NIS 5.52% NIS 1.79% 2.11% 1.82% NIS 5.20% 4.03% 1.63% 4.66% 1.77% NIS 3.89% 2.98% 1.43% NIS
Slide 8: NII Growth Driven by Strong Lending Spreads and Higher Market Rates
NII Growth Driven by Strong Lending Spreads and the Positive Effect of Higher Market Rates 6M22 58.4 Loan portfolio spread over base rate (3.02%) was 72 bps higher than the Higher lending spreads 22.5 first semester 2022 Effect of higher market rates on the share of the balance sheet funded by Incre
Slide 9: Growing Letters of Credit Business Drives Fee Income
Growing Letters of Credit Business Total Fees Drives Fee Income YoY +52% 6.5 6.3 0.2 0.7 Other Fees 5.3 0.8 Syndication Fees 0.3 4.8 2.6 4.3 0.5 1.3 0.2 0.4 0.6 5.0 Letters of Credit Fees 3.7 3.9 3.5 3.5 2Q22 3Q22 4Q22 1Q23 2Q23 9 (USD millions, except for %)
Slide 10: Strong Asset Quality, Low Credit Risk and Robust Reserve Coverage
Strong Asset Quality, Low Credit Exposure by Stages Risk and Robust Stage 2 Reserve Coverage 2.3% $205M Stage 3 0.1% $10M Stage 1 $9.1Bn 97.6% $8.9Bn (USD millions, except for %) Total Allowance for Credit Losses to Impaired Credits (USD millions, except for %) 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-2
Slide 11: Strong Revenue Growth Drive Lower Cost-to-Income Ratio
Strong Revenue Growth Drive Opex & Efficiency Ratio Lower Cost-to- Income Ratio 35.4% 31.6% 30.8% 26.9% 27.2% 16.4 15.9 15.6 14.6 13.1 6.6 6.2 5.8 5.9 4.8 9.8 9.7 9.9 8.2 8.7 2Q22 3Q22 4Q22 1Q23 2Q23 Salaries and other employee expenses Administrative & Other Expenses Efficiency Ratio (USD millions,
Slide 12: Our 2023 outlook
Our 2023 outlook . . . Capital: Core Equity Tier 1 ratio expected to range between 15% to 16% NIM: Above 2022 levels at around 2.1- 2.4%, enhanced by increased corporate deposits and the full impact of higher interest rates Fees: Consistent growth of 8 – 10% trend from Letters of Credit Business and
Slide 13: Q&A
APRIL 2023 LISTED
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 LISTED
Slide 16: Additional Information
Additional Information 2Q23 1Q23 2Q22 6M23 6M22 Key Income Statement Highlights Net Interest Income ("NII") $54.5 $52.6 $32.7 $107.1 $58.4 Fees and commissions, net $6.5 $4.8 $4.3 $11.3 $8.2 (Loss) gain on financial instruments, net ($3.6) $1.7 ($0.1) ($1.9) $0.5 Other income, net $0.1 $0.0 $0.0 $0.