Banco Latinoamericano De Comercio Exterior, S.a. · NYSE:BLX
Banco Latinoamericano De Comercio Exterior — Bladex — Q4 2022 Earnings Presentation
22 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Feb 28, 2023
Slide 1: Earnings Results 4Q22
Earnings Results 4Q22
Slide 2: 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 3: Strong Financial Performance in 2022 Validates the Execution of our Strategy
Strong Financial Performance in 2022 Validates the Execution of our Strategy Credit Book: $8.7 Bn NPLs: 0.45% CET 1: 15.3% Optimize Balance Sheet ↑18% YoY ↑27 bps YoY ↓ 382 bps YoY with healthy Asset Quality ↓2% QoQ ↑30 bps QoQ ↑ 88 bps QoQ FY NII: $148 M FY NIM: 1.71% FY Net Fees: $19.8 M Profitabl
Slide 4: Executing on the Key Drivers of Our Renewed Strategy
Executing on the Key Drivers of Our Renewed Strategy Figures in USD Billions, except for % – AVG 2022’s Avg Loan Portfolio Growth Commercial Achievements 6.6 Increase in Client +29% +28% 1.4 58% 42% base Existing New Clients Clients 5.2 Increase in product +15% penetration 2021 2022 New client - 43%
Slide 5: Solid Trend for Higher Profitability towards Double Digit Returns
Solid Trend for Higher Profitability towards Double Digit Returns Net Income & RoE Net Income & RoE Quarterly (Annualized) Yearly 120.0 10% 8.95% 50.0 14% 9% 11.6% 100.0 45.0 8% 12% 40.0 10.3% 7% 80.0 6.10% 35.0 9.1% 10% 6% 30.0 8% 60.0 5% 25.0 4% 20.0 4.5% 6% 92.0 40.0 +47% 3% 15.0 26.9 +15% 31.0 4
Slide 6: Strategy Execution Driving Assets Expansion and Profitable Commercial Portfolio Growth
Strategy Execution Driving Assets Expansion and Profitable Commercial Portfolio Growth Total Assets Commercial Portfolio Growth YoY +15% 9,320 9,284 7,706 8,925 8,458 11% 13% Cash & Due 10% 1,049 943 8,038 1,242 from Banks 8% 654 867 6,540 11% +17% 16% 12% 11% Investment 13% 1,048 1,253 1,111 1,024
Slide 7: Positive Lending Spreads Evolution Favors Short-Term Loan Book Structure
Positive Lending Spreads Evolution Favors Short-Term Loan Book Structure Loan Portfolio Lending Spread** YoY +66 Bps QoQ +35 Bps 2.15% 2.46% 2.17% 2.87% 2.81% Maturity Profile 7,821 -5,040 4,925 7,706 751 (857) More than 6,540 1,049 943 a year 805 28% (4,183) 3,876 7,070 6,763 72% Less than a 5,735
Slide 8: Resilient and Well-Diversified Funding Base
Resilient and Well-Diversified Funding Base Funding Structure Funding By Product 4Q22 Deposits 34% YoY Yankees CDs 7% +17% Repos 4% 144a / Rges 5% 8,030 7,908 4Q22 7,641 EMTN 4% 7,165 $7,908 6,768 24% 28% Mexican Public Issuances 11% 27% 1,948 2,221 2,030 31% Syndicated Loans 5% 25% 2,170 1,722 Corr
Slide 9: Strong Capitalization Continues to be a Fundamental Component For Bladex Risk Appetite
Strong Capitalization Continues to be a Fundamental Component For Bladex Risk Appetite 1,300 20.0% 16.2% 15.3% 1,250 15.1% 14.4% 15.0% 1,200 1,150 13.4% 12.9% 13.2% CET1 2022 12.2% 10.0% 1,100 1,050 5.0% 15.3% 1,069 1,049 1,000 1,019 1,005 0.0% 950 900 CET1 2021 -5.0% 850 800 -10.0% 19.1% 1Q22 2Q22
Slide 10: Sustained Margin Expansion
Sustained Margin Expansion Net Interest Margin & Net Interest Spread Quarterly NIM & NIS Average Yearly 2.11% NIM NIS NIM QoQ +34 Bps NIM 2022 1.77% 1.71% +39 Bps 1.63% 1.54% NIS QoQ 1.43% +20 Bps 1.42% NIS 2022 1.32% 1.32% 1.39% 1.26% +24 Bps 1.15% 4Q21 1Q22 2Q22 3Q22 4Q22 (USD millions, except for
Slide 11: NII Growth Reflects Higher Average Credit Portfolio Volumes and Wider Lending Spreads
NII Growth Reflects Higher Average Credit Portfolio Volumes for 2022 and Wider Lending Spreads 17.3 14.4 130.6 160.0 147.9 86.8 +$61.2MM 2021 Loans Credit Liquid Financial 2022 Investment Assets * Liabilities Portfolio Total NII Variation Average Volume Net +$1,425M +$536M +$140M +$2,082M Variation
Slide 12: Strong Fee Growth
Strong Fee Growth Letters of Credit Fees Total Fees +8.2% YoY YoY 3.7 14.0 3.5 3.5 12.1 19.8 3.1 3.3 +16% 18.3 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 Loan Structuring & Syndication Fees YoY 2.6 4.9 2.4 4.3 +15% 1.3 0.6 2021 2022 0.4 4Q21 1Q22 2Q22 3Q22 4Q22 2021 2022 (USD millions, except for %) 12
Slide 13: Healthy Asset Quality
Healthy Asset Quality Exposure by Stages Stage 2 1.68% $147M Stage 3 0.40% $35M Total Allowance for Credit Losses to Impaired Credits Stage 1 $8.7Bn 190% 97.91% $8.5Bn (USD millions, except for %) 31-Dec-21 31-Dec-22 Allowance for losses1 Balance at beginning of the period $44.6 $47.1 Provisions (re
Slide 14: Sustained Improvement in Efficiency Ratio While Executing Strategic Initiatives
Sustained Improvement in Efficiency Ratio While Executing Strategic Initiatives Opex & Efficiency Ratio Efficiency YoY 36.4% 35.4% 34.6% 38.3% 37.6% 31.6% 30.8% 33.1% 16.41 14.62 13.06 40% 10.33 11.02 40% 6.60 37% 5.89 32% 4.82 53% 3.58 5.44 60% 60% 68% 63% 9.80 8.25 8.73 47% 7.45 4.89 4Q21 1Q22 2Q2
Slide 15: Closing Remarks
Closing Remarks
Slide 16: 2023 a year of transition for Latam
2023 a year of transition for Latam … • From peak GDP growth to moderate growth in most economies. • From peak inflation to more moderate inflation levels, but still significantly above the target • From peak nominal interest rates to slightly lower rates, for the second half of 2023. • Tradeflows (
Slide 17: BLADEX in 2023 . . . Focus on Profitability over Growth
BLADEX in 2023 . . . Focus on Profitability over Growth MODERATE PORTFOLIO GROWTH: Unlike 2022, in 2023 we aim at single digit growth (3-4%) commensurate with the macro trend. MAINTAIN DISCIPLINED CREDIT UNDERWRTING STANDADRDS: Current high interest rate environment poses a clear risk particularly f
Slide 18: 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 Syn
Slide 19: Questions?
Questions? ir@bladex.com 19
Slide 20: Exhibits
Exhibits 20
Slide 21: Commercial Portfolio Well-Diversified Across Geographies and Industries
Commercial Portfolio Well-Diversified Across Geographies and Industries Commercial Portfolio by Country Commercial Portfolio by Client type Other services & Sovereign Other Wholesalers & 4% Commodities Retailers 2% 5% 12% 44% Manufacturing Industries Mexico 9% Investment 6% Financial Non Latam insti
Slide 22: Additional Information
Additional Information 4Q22 3Q22 4Q21 2022 2021 Key Income Statement Highlights Net Interest Income ("NII") $49.4 $40.2 $24.8 $148.0 $86.8 Fees and commissions, net $5.3 $6.3 $6.2 $19.8 $18.3 Loss on financial instruments, net ($1.6) ($0.3) ($1.3) ($1.4) ($1.3) Other income, net $0.0 $0.2 $0.1 $0.3