18 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Apr 19, 2024
Slide 1: 1Q24 Earnings Results
1Q24 Earnings Results April 2024
Slide 2: Key Results: Sustained Financial Performance in 1Q24
Key Results: Sustained Financial Performance in 1Q24 Continued Growth on Credit Portfolio Credit Book Deposits and Strong Growth on Deposits $9.8 Bn $4.7 Bn ↑ 3% QoQ |↑ 12% YoY ↑ 7% QoQ |↑ 32% YoY NIM NPLs Steady Margins with Robust Asset 2.47% 0.14% Quality ↓ 16 bps QoQ | ↑ 6 bps YoY 0 bps QoQ | ↓
Slide 3: Strategy Execution Driving Profitability Improvement
Strategy Execution Driving Profitability Net Income & RoE Quarterly Improvement 16.8% 15.9% 15.5% 13.7% 13.4% 51.3 45.8 46.4 37.0 37.1 1Q23 2Q23 3Q23 4Q23 1Q24 Net Income RoE Quarterly (USD millions, except for %) 3
Slide 4: Continued Assets Expansion and Commercial Portfolio Growth
Continued Assets Expansion and Commercial Portfolio Growth (USD millions, except for %) Total Assets Commercial Portfolio1 YoY YoY +16% +12% 10,744 10,688 10,134 10,095 8,690 16% 8,521 19% 9,249 18% 16% 1,726 7,778 2,047 1,340 1,820 1,645 1,325 14% 10% 1,314 10% 1,093 10% 10% 1,110 10% 1,022 1,010 1
Slide 5: Well-Diversified Credit Portfolio
Well-Diversified Credit Portfolio (USD millions, except for %) Investment Portfolio Commercial Portfolio by Country Avg. Term to Maturity 2.2 years Avg. Term to Maturity 11 months Investment Grade 81% 38% Investment Grade 62% Non-Investment Grade 26% Non Latam2 & Multilaterals 51% United States Othe
Slide 6: 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 3.4% $332M Stage 3 0.1% $10M Stage 1 $9.8Bn 96.5% $9,447M (USD millions, except for %) Total Allowance for Credit Losses to Impaired Credits (USD millions, except for %) 1Q23 2Q23 3Q23 4Q23 1Q24 687% Allowan
Slide 7: Deposits Continue to Improve their Share in the Funding Mix while Capital Ratios Remain Strong
Deposits Continue to Improve their Share in the Funding Mix while Capital Ratios Remain Strong Funding Sources Capital 9,070 9,021 16.3% 8,530 8,454 15.7% 15.3% 15.4% 15.4% 7,872 2,627 2,786 13.6% 13.7% 13.5% 13.6% 13.6% 2,251 2,454 2,240 1,238 1,204 1,147 1,161 1,725 1,128 1,797 1,096 1,597 1,715 3
Slide 8: Margins Stabilize at Target Levels
Margins Stabilize at Target Levels Net Interest Spread Net Interest Margin NIM Quarterly Rate of Interest-Earning Assets Rate of Interest-Bearing Liabilities 7.65% 7.37% 7.47% 6.99% 2.62% 6.48% NIS 2.48% 2.47% 2.41% 2.42% 1.80% 5.52% NIS 2.11% 1.82% 5.73% 5.67% 5.54% 1.77% 5.20% 4.03% 1.54% 4.66% 1.
Slide 9: Growing Letter of Credit Business Drives Fee Income
Growing Letter of Credit Business Drives Fee Income Total Fees Quarterly 11.1 10.1 9.5 4.9 4.4 Syndication & 3.6 Other Fees1 6.5 6.3 5.3 1.5 4.8 2.8 4.3 1.6 3.9 0.9 0.8 Fee Growth YoY 0.6 1Q23 vs 1Q24 6.2 Letter of 5.7 5.8 Credit Fees +97% 5.0 3.7 3.9 3.3 3.5 3.5 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4
Slide 10: Improved Operational Efficiency
Improved Operational Opex & Efficiency Ratio Efficiency 27.6% 27.2% 27.2% 26.9% 25.2% 21.4 19.5 18.3 15.9 15.6 Efficiency for 1Q24 25.2% 1Q23 2Q23 3Q23 4Q23 1Q24 Total Expenses Efficiency Ratio (USD millions, except for %) 10
Slide 11: Closing Remarks
Closing Remarks APRIL 2024 11
Slide 12: Executing our 5-year Strategic Plan to Capture Our Full Potential
Executing our 5-year Executed Today Strategic Plan to 13%-15% Capture Our Full Target RoE 20261 Potential 6.1% RoE 2021 (1) Guidance set forth for 2026 with Fed Fund Rates assumption of 2.5% 12 Set-up Optimization Expansion Scale-up
Slide 13: Expansion Phase
Traditional Trade Finance (i.e. LCs) Automation minimizing operational errors Diversify product offering Trade Exceptional Customer Experience Finance Solution Expansion Working Capital Solutions Phase: Back-to-front Technological solution Bladex will soon Higher volume of transactions start upgradi
Slide 14: We Remained Committed with our 2024 Guidance
We Remained Committed with our 2024 Guidance Guidance Portfolio Growth 5% -7% Deposit Growth 1 12% - 14% NIM ~2.5% Efficiency Ratio ~30% ROE 14% - 15% CET1 15% - 16% 14 (1) Average deposit growth
Slide 15: Q&A
APRIL 2024 LISTED
Slide 16: 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 17: Exhibits
Bladex¥ Exhibits LISTED
Slide 18: Additional Information
Additional Information 1Q24 4Q23 1Q23 2023 Key Income Statement Highlights Net Interest Income ("NII") $62.9 $65.6 $52.6 $233.2 Fees and commissions, net $9.5 $10.1 $4.8 $32.5 (Loss) gain on financial instruments, net $0.2 $1.9 $1.7 ($0.0) Other income, net $72.6 $77.8 $59.2 $0.5 Total revenues ($3.