18 slides from Banco Latinoamericano De Comercio Exterior's earnings presentation, Feb 23, 2024
Slide 1: 4Q23 Earnings Results
4Q23 Earnings Results February 2024
Slide 2: Key Results: Solid Financial Performance in 2023
Key Results: Solid Financial Performance in 2023 Sustained Growth on Loan Portfolio and Credit Book Deposits Strong Growth on Deposits $9.5 Bn $4.4 Bn ↑ 3% QoQ |↑ 9% YoY ↑ 5% QoQ |↑ 38% YoY FY NII FY NIM Increased NII and Margin Expansion $233M 2.5% ↑ 58% YoY ↑ 78 bps YoY Strong Fee Income and Effic
Slide 3: Executing our 5-year Strategic Plan to Capture Our Full Potential
Executing our 5-year Executed Today Strategic Plan to 6.1% 14.7% 13%-15% Capture Our Full RoE 2021 RoE 2023 Target RoE2026 Potential 3 Set-up Optimization Expansion Scale-up
Slide 4: Solid Trend for Higher Profitability
Solid Trend for Higher Profitability (USD millions, except for %) Net Income & RoE 14.7% 15.9% 15.5% 13.7% 13.4% 11.6% 8.9% 45.8 46.4 166.2 37.0 37.1 31.0 92.0 4Q22 1Q23 2Q23 3Q23 4Q23 Net Income RoE Quarterly 2022 2023 Net Income RoE Annual Quarterly 4
Slide 5: Strategy Execution Driving Assets Expansion and Profitable Commercial Portfolio Growth
Strategy Execution Driving Assets Expansion and Profitable Commercial Portfolio Growth (USD millions, except for %) Total Assets Commercial Portfolio1 YoY YoY +16% +11% 10,744 8,521 10,134 10,095 7,706 9,284 19% 1,325 9,249 18% 16% 2,047 1,645 943 13% 14% 1,820 1,242 1,314 10% 10% 10% 11% 10% 1,022
Slide 6: Well-Diversified Commercial and Investment Portfolios
Well-Diversified Commercial and Investment Portfolios (USD millions, except for %) Commercial Portfolio by Country Investment Portfolio Avg. Term to Maturity 13 months Avg. Term to Maturity 2.3 years Investment Grade 81% 41% Investment Grade 59% Non-Investment Grade 53% United States 20% Non Latam3
Slide 7: Record Level of Deposits and Diverse Funding while maintaining strong capitalization
Record Level of Deposits and Diverse Funding while maintaining strong capitalization Funding Sources CET1 2023 Capital 15.4% 9,070 15.7% 8,530 8,454 15.3% 15.3% 15.4% 15.4% 7,908 7,872 13.5% 13.6% 13.6% 13.6% 2,627 13.2% 2,251 2,454 2,222 2,240 1,204 1,128 1,161 1,725 1,069 1,096 1,797 1,597 1,715 2
Slide 8: Margins Continue to Drive Robust Top-line Performance
Margins Continue to Drive Robust Top-line Performance Net Interest Spread Quarterly Rate of Interest-Earning Assets 7.65% Rate of Interest-Bearing Liabilities 7.37% 6.99% NIS Annual Net Interest Spread 6.48% NIS 1.83% 1.92% NIS NIS 1.79% NIS 5.52% 1.82% 5.54% 5.73% 2022 2023 NIS 1.63% 5.20% 1.39% 1.
Slide 9: NII Growth Driven by Successful Implementation of Strategic Initiatives and Market Interest Rates
NII Growth Driven by Successful Implementation of Strategic Initiatives and Market Interest Rates NII: $148.0 2022 NIM: 1.71% 52.3 Successful implementation of strategic initiatives has driven higher margins Plan Execution 61% and average volumes Market Interest 32.9 Rates 39% Effect of higher marke
Slide 10: Strong Fee Growth
Strong Fee Growth Letters of Credit Fees Total Fees 6.2 5.0 5.7 20.8 YoY 3.7 3.9 14.0 +64% YoY +49% 32.5 4Q22 1Q23 2Q23 3Q23 4Q23 2022 2023 19.8 Loan Structuring & Syndication Fees 3.5 7.4 2.7 4.9 YoY 1.3 +51% 0.8 0.4 2022 2023 4Q22 1Q23 2Q23 3Q23 4Q23 2022 2023 10
Slide 11: Strong Asset Quality, Low Credit Risk and Robust Reserve Coverage
Strong Asset Quality, Low Credit Exposure by Stages Risk and Robust Reserve Coverage Stage 2 4% $369M Stage 3 0.1% $10M $9.2Bn Stage 1 96.0% $9,153M (USD millions, except for %) Total Allowance for Credit Losses to Impaired Credits (USD millions, except for %) 4Q22 1Q23 2Q23 3Q23 4Q23 654% Allowance
Slide 12: Strong Revenue Growth Maintains Lower Cost-to-Income Ratio
Strong Revenue Growth Maintains Opex & Efficiency Ratio Lower Cost-to- Income Ratio 33.1% 30.8% 27.2% 27.6% 27.2% 27.2% 26.9% 72.5 21.4 19.5 55.1 16.4 15.9 15.6 Efficiency for 2023 27.2% 4Q22 1Q23 2Q23 3Q23 4Q23 Total Expenses Efficiency Ratio 2022 2023 Total Expenses Efficiency Ratio (USD millions,
Slide 13: Closing Remarks
Closing Remarks FEBRUARY 2024 13
Slide 14: 2024 Guidance
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
Q&A FEBRUARY 2024 15
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 FEBRUARY 20240 te
Slide 18: Additional Information
Additional Information 4Q23 3Q23 4Q22 2023 2022 Key Income Statement Highlights Net Interest Income ("NII") $65.6 $60.5 $49.4 $233.2 $148.0 Fees and commissions, net $10.1 $11.1 $5.3 $32.5 $19.8 (Loss) gain on financial instruments, net $1.9 $0.0 ($1.6) ($0.0) ($1.4) Other income, net $0.3 $0.1 $0.0