Banco Latinoamericano de Comercio Exterior, S.A. · NYSE:BLX
Banco Latinoamericano de Comercio Exterior — Q4 2020 Earnings Presentation
13 slides from Banco Latinoamericano de Comercio Exterior's earnings presentation, Feb 12, 2021
Slide 1: 4Q20 Earnings Results Presentation
Banco Latinoamericano de Comercio Exterior, S.A. (“Bladex”) 4Q20 Earnings Results Presentation February 12, 2021 1
Slide 2: Forward-looking statements
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: “anticipate”, “inten
Slide 3: Commercial Portfolio growth of 9% quarter-on-quarter
Commercial Portfolio growth of 9% quarter-on-quarter, leveraging on increased demand towards year-end and on Bladex’s broad regional reach (USD millions, except for %) - QoQ Loan Portfolio Average Interest Rate L+ 2.45% L+ 2.15% L+ 1.82% L+ 2.27% Total 5,087 (2,159) +2,623 5,551 370 639 520 (252) (1
Slide 4: Commercial Portfolio growth achieved by 17% increase in credit disbursements
Commercial Portfolio growth was achieved by a solid 17% increase in credit disbursements in 4Q20, while sustaining preceding quarterly trend in collecting virtually all loan maturities (USD millions, except for %) - QoQ Loan Portfolio Average Interest Rate L+ 2.45% L+ 2.15% L+ 1.82% L+ 2.27% Total 5
Slide 5: 4Q20 origination in lower risk jurisdictions, robust credit quality
During 4Q20 origination continued mainly in lower risk jurisdictions, preserving a robust credit quality and diversification Commercial Portfolio by Country QoQ variation As of Dec20 9% $184MM, +135% Peru 5,551 +376% in Oil & Gas ( Downstream) Colombia 5,087 5,551 Mexico Colombia 14% 5,551 Chile 5,0
Slide 6: Origination focused on defensive sectors
Similarly, origination in 4Q20 was focused on defensive sectors. Our exposure to higher risk sectors has steadily decreased since the onset of Covid-19 Commercial Portfolio by Industry QoQ variation As of Dec20 9% Financial $308MM, +12% Institutions Main financial institutions of 5,551 each country;
Slide 7: 3Q20 was an inflection point in asset composition
3Q20 was clearly an Inflection Point in terms of asset composition, ending the year with a mix that is closer to historical levels Total Assets (USD millions, except for %) - EoP 7,250 6,823 6,627 6,311 6,289 ✓ The Bank has gradually reduced its cash position, still remaining at a 100% 0 robust leve
Slide 8: Bond portfolio increased significantly during 2H2020 to $395 million
The Bank significantly increased its bond portfolio during 2H2020 to $395 million. By year-end it was evenly split between a HQLA portfolio aimed at enhancing the return on liquid assets and a credit portfolio of Latin American names conceived as a complement to the Bank’s Commercial Portfolio 450 I
Slide 9: Deposits and new debt reinforce resilient funding base
The combination of an increasing participation of deposits over total funding and new debt capital markets transactions has further reinforced the resiliency of the Bank’s funding base Funding Structure (USD millions, except for %) - EoP 6,067 5,659 5,524 5,133 5,135 ✓ Deposits continued to grow (+9
Slide 10: Stable QoQ trend in quarterly net income and returns
Stable QoQ trend in quarterly net income and returns. Annual results impacted by Bladex’s defensive approach to favor liquidity over loan growth during most part of the year, compensated by decreased expenses and reversals of credit reserves from loan collections and improved asset quality Quarterly
Slide 11: Decreased annual NII and NIM on lower average loans
Decreased annual NII and NIM on lower average loans and increased average cash position, coupled with the impact of lower market rates decreasing equity yield. Partly compensated by a positive trend in net lending spreads and by a faster repricing of liabilities in a decreasing market rate environme
Slide 12: Allowances for credit losses reflect sound asset quality
The level of allowances for credit losses reflect Bladex’s sound asset quality, with 94% of credits classified as Stage 1 (low risk) under IFRS 9, and credit impaired loans representing 0.2% of total loan portfolio Allowance for Credit Losses Credit Impaired Loans (USD millions, except for %) (USD m
Slide 13: CEO closing comments
“I truly believe that 2020 was a very good year for Bladex, given the circumstances – taking advantage of the levers of our business model to protect the quality of our assets, while continuing to soundly originate business across the region, and “We believe that our 40-year experience in the Region
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