20 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Nov 2, 2022
Slide 1: Earnings Results 3Q22
Earnings Results 3Q22 November 2nd, 2022 1
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: Sustained Strong Financial Performance in 3Q22 Validates our Strategy
Sustained Strong Financial Performance in 3Q22 Validates our Strategy Higher Profits and RoE Expansion Fostered Net Income Quaterly ROE by More Efficient Capital Allocation $26.9M 10.3% ↑17% QoQ |↑71% YoY ↑120Bps QoQ |↑422 Bps YoY Sustained Loan Growth Conserving Record Credit Book Stable NPLs Healt
Slide 4: Executing on the Key Drivers of Our Renewed Strategy
Executing on the Key Drivers of Our Renewed Strategy Origination Profitability Increase in Net Lending New Existing Spread increase 27% YTD Clients Loan clients 52% Growth 48% Focus on Cross-selling Relationships Capital Increase in Existing Fee income: Syndication New Clients Client Penetration Opt
Slide 5: Strategy Execution Driving Assets Expansion and Solid Commercial Portfolio Growth
Strategy Execution Driving Assets Expansion and Solid Commercial Portfolio Growth Total Assets Commercial Portfolio Growth YoY QoQ YoY QoQ +34% +4% +26% +3% 9,320 Other Contingencies 8,925 2% 8,458 2% Investment 8,038 2% 11% 3% 12% Portfolio 751 6,977 13% 10% 3% 11% 76% 76% US 7,821 71% 77% 76% Loan
Slide 6: 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 Industries** Mexico; Wholesalers & 10% Other N-IG**; Retailers 12% Financial 14% 4% institutions Dominican Non Latam; Other services 43% Republic; 9% & So
Slide 7: Agile Short-Term Loan Book Allows Rebalancing Through Cycles
Agile Short-Term Loan Book Allows Rebalancing Through Cycles Loan Portfolio Lending Spread** 2.38% 2.29% 2.43% 2.46% Maturity Profile 7,583 -4,189 4,427 7,821 718 751 814 (782) More than a year 30% (3,408) 3,709 6,769 7,070 70% Less than a year 30-Jun-22 Maturities * Disbursements 30-Sep-22 12 Month
Slide 8: Growing, Resilient and Well-Diversified Funding Base
Growing, Resilient and Well-Diversified Funding Base Diversified Funding Sources By Product YoY QoQ +42% +5% Correspondent Banks 28% 8,047 7,659 7,182 Repos 7% 6,786 25% 27% 5,671 25% 31% Syndicated Facilities 4% 27% 32% 33% 3Q22 144a / Regs 5% 13% 30% 24% $8,047 EMTN 3% Mexican Public 60% 45% 42% 4
Slide 9: Strong Capitalization while Maintaining an Attractive Dividend Yield
Strong Capitalization while Maintaining an Attractive Dividend Yield 1,250 20.0% 16.2% 1,200 15.1% 14.4% 15.0% 1,150 13.4% 12.9% 1,100 12.2% 10.0% 1,050 5.0% 1,000 950 0.0% 900 -5.0% 850 1,005 1,019 1,049 800 -10.0% 31-Mar-22 30-Jun-22 30-Sep-22 Equity SBP Regulatory Capital Adequacy 1 Tier 1 Capita
Slide 10: Sequential Increases in Net Interest Spreads and NIM
Sequential Increases of 11 bps in Net Interest Spreads and 23 bps in NIM NIS NIM YoY QoQ YoY QoQ +26 Bps +11Bps +44 Bps +23Bps 4.03% 1.77% 2.98% 1.43% 1.54% 2.06% 1.32% 2.60% 1.17% 1.66% 1.33% 0.89% 3Q21 2Q22 3Q22 Average Interest-Earning Assets 3Q21 2Q22 3Q22 Average Interest-Bearing Liabilities (U
Slide 11: Sixth Consecutive Quarter of NII Expansion
Sixth Consecutive Quarter of NII Expansion (+ $7.5M) Reflects Average Credit Portfolio Growth & Higher Lending Spreads 0.4 3.6 21.2 24.6 40.2 32.7 +$7.5MM NII 2Q22 Loans Credit Liquid Financial NII 3Q22 Investment Assets * Liabilities Portfolio Quarterly variation, (USD millions, except for %) Total
Slide 12: Letter of Credit Fee Growth Steady with Pick-up in Loan Structuring & Syndication
Letter of Credit Fee Growth Remained Steady with Pick-up in Loan Structuring & Syndication Fee Growth Letters of Credit Fees Loan Structuring & Syndication Fees YoY QoQ YoY QoQ +15% +1% +93% +329% 3.5 3.5 2.4 2.6 3.3 3.1 3.1 1.3 0.4 0.6 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 (USD millions
Slide 13: Maintain Healthy Asset Quality with NPL Ratio Close to 0%
Maintain Healthy Asset Quality with NPL Ratio Close to 0% For Over Two Years Total Credit Exposure 8,716 59% 14.71% 0.41% 135 11 Stage 1 Stage 2 Stage 3 Exposure Coverage (USD millions, except for %) (USD million) 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 Allowance for losses1 Balance at beg
Slide 14: Sustained Improvement in Efficiency Ratio While Executing Strategic Initiatives
Sustained Improvement in Efficiency Ratio While Executing Strategic Initiatives Efficiency Ratio Operating Expenses 38.5% 36.4% 14.6 13.1 35.4% 11.0 5.9 10.3 10.3 4.8 34.6% 3.6 4.4 5.4 31.6% 8.7 7.4 8.2 6.0 4.9 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Personnel Expenses * Administrative Exp
Slide 15: Driving Higher Profitability Reaching Double Digit Returns
Driving Higher Profitability Reaching Double Digit Returns RoE Net Income YoY QoQ YoY QoQ +422Bps +120Bps +71% +17% 10.3% 9.1% 26.9 23.0 6.1% 15.7 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 (USD millions, except for %) 15
Slide 16: Closing Remarks
Closing Remarks 1 Higher net profit as a result of strong loan origination coupled with margin expansion and increase in fee income 2 Return on Equity expanded to 10.3% on higher profitability and a more efficient capital allocation 3 Record NII growing for the sixth consecutive quarter reflecting h
Slide 17: November 14, 2022 BLX'D
November 14, 2022 BLX'D 2022
Slide 18: Q&A
Q&A 18
Slide 19: Exhibits
Exhibits 19
Slide 20: Additional Information
Additional Information 3Q22 2Q22 3Q21 9M22 9M21 Key Income Statement Highlights Net Interest Income ("NII") $40.2 $32.7 $22.1 $98.6 $62.0 Fees and commissions, net $6.3 $4.3 $4.8 $14.5 $12.1 (Loss) gain on financial instruments, net ($0.3) ($0.1) ($0.1) $0.2 $0.1 Other income, net $0.2 $0.0 $0.1 $0.