PANAMA
CITY, July 20, 2023 /PRNewswire/ -- Banco
Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX,
"Bladex", or "the Bank"), a Panama-based multinational bank originally
established by the central banks of 23 Latin-American and
Caribbean countries to promote
foreign trade and economic integration in the Region, announced
today its results for the Second Quarter ("2Q23") and six months
("6M23") ended June 30, 2023.
The consolidated financial information in this document has been
prepared in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB").
FINANCIAL SNAPSHOT
(US$ million, except
percentages and per share amounts)
|
2Q23
|
1Q23
|
2Q22
|
6M23
|
6M22
|
Key Income Statement
Highlights
|
|
|
|
|
|
Net Interest Income
("NII")
|
$54.5
|
$52.6
|
$32.7
|
$107.1
|
$58.4
|
Fees and commissions,
net
|
$6.5
|
$4.8
|
$4.3
|
$11.3
|
$8.2
|
(Loss) gain on
financial instruments, net
|
($3.6)
|
$1.7
|
($0.1)
|
($1.9)
|
$0.5
|
Total
revenues
|
$57.4
|
$59.2
|
$36.9
|
$116.6
|
$67.2
|
Provision for credit
losses
|
($4.7)
|
($6.3)
|
($0.8)
|
($11.0)
|
($8.9)
|
Operating
expenses
|
($15.6)
|
($15.9)
|
($13.1)
|
($31.5)
|
($24.1)
|
Profit for the
period
|
$37.1
|
$37.0
|
$23.0
|
$74.0
|
$34.1
|
Profitability
Ratios
|
|
|
|
|
|
Earnings per Share
("EPS") (1)
|
$1.02
|
$1.02
|
$0.63
|
$2.03
|
$0.94
|
Return on Average
Equity ("ROE") (2)
|
13.4 %
|
13.7 %
|
9.1 %
|
13.6 %
|
6.8 %
|
Return on Average
Assets ("ROA") (3)
|
1.6 %
|
1.6 %
|
1.1 %
|
1.6 %
|
0.8 %
|
Net Interest Margin
("NIM") (4)
|
2.42 %
|
2.41 %
|
1.54 %
|
2.42 %
|
1.43 %
|
Net Interest Spread
("NIS") (5)
|
1.79 %
|
1.82 %
|
1.32 %
|
1.80 %
|
1.24 %
|
Efficiency Ratio
(6)
|
27.2 %
|
26.9 %
|
35.4 %
|
27.0 %
|
35.9 %
|
Assets, Capital,
Liquidity & Credit Quality
|
|
|
|
|
|
Credit Portfolio
(7)
|
$9,114
|
$8,716
|
$8,685
|
$9,114
|
$8,685
|
Commercial Portfolio
(8)
|
$8,114
|
$7,778
|
$7,583
|
$8,114
|
$7,583
|
Investment
Portfolio
|
$1,000
|
$938
|
$1,102
|
$1,000
|
$1,102
|
Total assets
|
$10,134
|
$9,249
|
$8,925
|
$10,134
|
$8,925
|
Total equity
|
$1,128
|
$1,096
|
$1,019
|
$1,128
|
$1,019
|
Market capitalization
(9)
|
$804
|
$633
|
$482
|
$804
|
$482
|
Tier 1 Capital to
risk-weighted assets (Basel III – IRB) (10)
|
15.7 %
|
15.3 %
|
15.1 %
|
15.7 %
|
15.1 %
|
Capital Adequacy Ratio
(Regulatory) (11)
|
13.6 %
|
13.5 %
|
12.9 %
|
13.6 %
|
12.9 %
|
Total assets / Total
equity (times)
|
9.0
|
8.4
|
8.8
|
9.0
|
8.8
|
Liquid Assets / Total
Assets (12)
|
17.3 %
|
14.1 %
|
10.6 %
|
17.3 %
|
10.6 %
|
Credit-impaired loans
to Loan Portfolio (13)
|
0.1 %
|
0.5 %
|
0.2 %
|
0.1 %
|
0.2 %
|
Impaired credits
(14) to Credit Portfolio
|
0.1 %
|
0.4 %
|
0.1 %
|
0.1 %
|
0.1 %
|
Total allowance for
losses to Credit Portfolio (15)
|
0.6 %
|
0.8 %
|
0.6 %
|
0.6 %
|
0.6 %
|
Total allowance for
losses to Impaired credits (times) (15)
|
5.0
|
2.1
|
5.3
|
5.0
|
5.3
|
|
|
|
|
|
|
2Q23 & 6M23 FINANCIAL & BUSINESS
HIGHLIGHTS
- Sustained trend for higher Profitability, with Net
Profit of $37.1 million in 2Q23
(+0.3% QoQ; +61% YoY) and $74.0
million in 6M23 (+117% YoY), on the back of the continued
growth trend on Net Interest Income ("NII") and fee income
generation.
- Solid Annualized Return on Equity ("ROE") of 13.4% in
2Q23 (-30bps QoQ; +434 bps YoY) and 13.6% in 6M23 (+677bps
YoY). The Bank´s Tier 1 Basel III Capital and Regulatory Capital
Adequacy Ratios improved to 15.7% and 13.6%, respectively, as the
Bank remained committed to a sound capitalization.
- Growth trend in NII for ninth consecutive quarter,
increasing to $54.5 million in 2Q23
(+3% QoQ; +67% YoY), to reach $107.1
million (+83% YoY) in 6M23. Net Interest Margin
("NIM") expanded to 2.42% in 2Q23 (+1 bp QoQ; +88 bps YoY) and 6M23
(+98 bps YoY), on the back of higher lending spreads and market
rates.
- Higher Fees and
Commissions totaling $6.5
million for 2Q23 (+35% QoQ; +52% YoY), as fee income from
letters of credit sustained its increasing trend for a seventh
consecutive quarter (+28% QoQ; +44% YoY), along with increased loan
syndication activity. These positive results boosted fee income to
$11.3 million (+38% YoY) in
6M23.
- Improved YoY levels of Efficiency Ratio of 27.2% in
2Q23 and 27.0% in 6M23, on the back of higher total revenues,
overcompensating the YoY increases in operating expenses related to
strategy execution. 2Q23 operating expenses remained relatively
stable QoQ.
- Record Credit Portfolio at $9,114 million as of June
30, 2023 (+5% both QoQ and YoY).
-
- Commercial Portfolio EoP balances reached record levels of
$8,114 million in 2Q23 (+4% QoQ; +7%
YoY), on cross-sell efforts and the incorporation of new
clients.
- Investment Portfolio increased 7% QoQ to $1,000 million, entirely consisting of credit
investments held at amortized cost, enhancing credit exposure
diversification.
- Healthy asset quality. Most of the credit portfolio
(98%) remains classified as low risk or Stage 1. Impaired credits
(Stage 3) decreased to $10 million at
2Q23 (-71% QoQ; -5% YoY) or 0.1% of total Credit Portfolio, with a
reserve coverage of almost 5x, due to write-offs for $27 million, mostly related to impaired credits
of a single non-bank financial intermediary borrower.
- Deposits surpassed $4Bn
milestone in 2Q23, reaching $4,074 million (+14% QoQ; +31%
YoY), coupled with ample and constant access to interbank and debt
capital markets, which reflects the Bank´s sound and diversified
funding structure.
- Solid liquidity position at $1,757 million, or
17% of total assets as of June 30,
2023, consisting of cash and due from banks mostly placed
with the Federal Reserve Bank of New
York.
CEO's Comments
Mr. Jorge Salas, Bladex's Chief Executive Officer said:
"Bladex had another outstanding quarter. All relevant
financial metrics keep showing a positive trend as we continue to
execute our strategic plan. Both, our treasury unit and our renewed
commercial unit had a very strong performance. The results speak
for themselves. This was record braking quarter. Fifty four million dollars (USD 54MM) in NII for
the quarter, 67% higher than the same period last year. Net
interest margin stood at 2.42%, 88 basis points higher
year-on-year. All this has been possible largely because we have
been gradually and strategically reconfiguring our asset and
liability mix. Also, deposits as of quarter-end were over
4 billion dollars for the first time
in Bladex's history and our letter of credit unit surpassed 1
Billion in outstanding balances also for the first time. Bottom
line for the quarter was 37.1 million
dollars in line with our 2023 guidance and our long-term
guidance of attaining sustainable mid-teens returns by
2026."
RECENT EVENTS
- Quarterly dividend payment: The Board of Directors
approved a quarterly common dividend of $0.25 per share corresponding to 2Q23. The
cash dividend will be paid on August 15,
2023, to shareholders registered as of July 31, 2023.
Notes:
- Numbers and percentages set forth in this earnings
release have been rounded and accordingly may not total
exactly.
- QoQ and YoY refer to quarter-on-quarter and year-on-year
variations, respectively.
Footnotes:
- Earnings per Share ("EPS") calculation is based on the average
number of shares outstanding during each period.
- ROE refers to return on average stockholders' equity which is
calculated based on unaudited daily average balances.
- ROA refers to return on average assets which is calculated
based on unaudited daily average balances.
- NIM refers to net interest margin which constitutes to Net
Interest Income ("NII") divided by the average balance of
interest-earning assets.
- NIS refers to net interest spread which constitutes the average
yield earned on interest-earning assets, less the average yield
paid on interest-bearing liabilities.
- Efficiency Ratio refers to consolidated operating expenses as a
percentage of total revenues.
- The Bank's "Credit Portfolio" includes gross loans at amortized
cost (or the "Loan Portfolio"), securities at FVOCI and at
amortized cost, gross of interest receivable and the allowance for
expected credit losses, loan commitments and financial guarantee
contracts, such as confirmed and stand-by letters of credit, and
guarantees covering commercial risk; and other assets consisting of
customers' liabilities under acceptances.
- The Bank's "Commercial Portfolio" includes gross loans at
amortized cost (or the "Loan Portfolio"), loan commitments and
financial guarantee contracts, such as issued and confirmed letters
of credit, stand-by letters of credit, guarantees covering
commercial risk and other assets consisting of customers'
liabilities under acceptances.
- Market capitalization corresponds to total outstanding common
shares multiplied by market close price at the end of each
corresponding period.
- Tier 1 Capital ratio is calculated according to Basel III
capital adequacy guidelines, and as a percentage of risk-weighted
assets. Risk-weighted assets are estimated based on Basel III
capital adequacy guidelines, utilizing internal-ratings based
approach or "IRB" for credit risk and standardized approach for
operational risk.
- As defined by the Superintendency of Banks of Panama through Rules No. 01-2015 and 03-2016,
based on Basel III standardized approach. The capital adequacy
ratio is defined as the ratio of capital funds to risk-weighted
assets, rated according to the asset's categories for credit risk.
In addition, risk-weighted assets consider calculations for market
risk and operating risk.
- Liquid assets refer to total cash and cash equivalents,
consisting of cash and due from banks and interest-bearing deposits
in banks, excluding pledged deposits and margin calls; as well as
highly rated corporate debt securities (above 'A-').
Liquidity ratio refers to liquid assets as a percentage of total
assets.
- Loan Portfolio refers to gross loans at amortized cost,
excluding interest receivable, the allowance for loan losses, and
unearned interest and deferred fees. Credit-impaired loans are also
commonly referred to as Non-Performing Loans or NPLs.
- Impaired Credits refers to Non-Performing Loans or NPLs
and non-performing securities at FVOCI and at amortized
cost.
- Total allowance for losses refers to allowance for loan losses
plus allowance for loan commitments and financial guarantee
contract losses and allowance for investment securities
losses.
SAFE HARBOR STATEMENT
This press release 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", "intend", "plan",
"goal", "seek", "believe", "project", "estimate", "expect",
"strategy", "future", "likely", "may", "should", "will" and similar
references to future periods. The forward-looking statements
in this press release include the Bank's financial position, asset
quality and profitability, among others. These
forward-looking statements reflect the expectations of the Bank's
management and are based on currently available data; however,
actual performance and results are subject to future events and
uncertainties, which could materially impact the Bank's
expectations. Among the factors that can cause actual
performance and results to differ materially are as follows: the
coronavirus (COVID-19) pandemic and geopolitical events; the
anticipated changes in the Bank's credit portfolio; the
continuation of the Bank's preferred creditor status; the impact of
increasing/decreasing interest rates and of the macroeconomic
environment in the Region on the Bank's financial condition; the
execution of the Bank's strategies and initiatives, including its
revenue diversification strategy; the adequacy of the Bank's
allowance for expected credit losses; the need for additional
allowance for expected credit losses; the Bank's ability to achieve
future growth, to reduce its liquidity levels and increase its
leverage; the Bank's ability to maintain its investment-grade
credit ratings; the availability and mix of future sources of
funding for the Bank's lending operations; potential trading
losses; the possibility of fraud; and the adequacy of
the Bank's sources of liquidity to replace deposit withdrawals.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
ABOUT BLADEX
Bladex, a multinational bank originally established by the
central banks of Latin-American and Caribbean countries, began operations in 1979
to promote foreign trade and economic integration in the Region.
The Bank, headquartered in Panama,
also has offices in Argentina,
Brazil, Colombia, Mexico, and the
United States of America, and a Representative License in
Peru, supporting the regional
expansion and servicing its customer base, which includes financial
institutions and corporations.
Bladex is listed on the NYSE in the
United States of America (NYSE: BLX), since 1992, and its
shareholders include: central banks and state-owned banks and
entities representing 23 Latin American countries; commercial banks
and financial institutions; and institutional and retail investors
through its public listing.
CONFERENCE CALL INFORMATION
There will be a conference call to discuss the Bank's quarterly
results on Friday, July 21, 2023 at
11:00 a.m. New York City time (Eastern Time). For
those interested in participating, please dial +1 888 686-3653 in
the United States or, if outside
the United States, +1 718
866-4614. Participants should use conference passcode 877068,
and dial in five minutes before the call is set to begin.
There will also be a live audio webcast of the conference at
http://www.bladex.com. The webcast presentation will be
available for viewing and downloads on http://www.bladex.com.
The conference call will become available for review one hour after
its conclusion.
For more information, please access http://www.bladex.com or
contact:
Mr. Carlos Daniel Raad
Chief Investor Relations Officer
Tel: +507 366-4925 ext. 7925
E-mail address: craad@bladex.com / ir@bladex.com
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SOURCE Banco Latinoamericano de Comercio Exterior, S.A.
(Bladex)