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2Q18 Earnings Presentation


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2Q18 Earnings Presentation

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2Q18 Earnings Presentation

  1. 1. 2Q18 Earnings Results Presentation July 20, 2018
  2. 2. “This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions established by the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. The forward-looking statements in this presentation reflect the expectations of the Bank’s management and are based on currently available data; however, actual experience with respect to these factors is subject to future events and uncertainties, which could materially impact the Bank’s expectations. A number of factors could cause actual performance and results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the anticipated growth of the Bank’s credit portfolio, including its trade finance portfolio; the continuation of the Bank’s preferred creditor status; the impact of increasing 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 credit losses; the need for additional provisions for credit losses; the Bank’s ability to achieve future growth, the Bank’s ability 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 large deposit withdrawals.” 2
  3. 3. 1 2Q18 Highlights Financial Performance Overview Solid Commercial Portfolio Growth  6% QoQ  4% YoY 2 Net Interest Income  Improved GAP income from higher LIBOR-based market rates drove higher QoQ Net Interest Income and Margin  Lending spreads still pressured YoY  Higher medium-term lending in 2Q18 3 Fee Income  Increased from the closing of two syndicated transactions in 2Q18  64% QoQ 5 Credit Quality  Lower NPL balances  Proactive credit risk monitoring 1.6x coverage ratio $3,740 MM  8% QoQ 3 0.98% NPL to total loan  5% QoQ NII  13bps QoQ NIM  15% YTD NII $538 MM 4 Efficiency  Continued short-term trade loan origination  Lower operating expense and increase in total income  11pts QoQ Lending Activity
  4. 4.  New loan disbursements – higher origination, above maturity levels and with longer avg. term Loan Origination and Maturities 4 +21%
  5. 5. Net Interest Income & Financial Margins 5
  6. 6. Fees & Other Income  YoY higher fees from L/C and contingencies activity; stable QoQ  Increased fees from syndications business in 2Q18 6
  7. 7. Operating Expenses 7 • Salaries and other employee expenses impacted by annual variable compensation expense incurred in 1Q18 • Excluding variable compensation, expenses remained relatively stable.
  8. 8. Commercial Portfolio Highlights  Portfolio maintaining its trade focus (54%) and short-term nature (81%) 8  Portfolio’s split even between FI’s (+12 pts YoY) and Corporations  Well diversified corporate exposure among several industries  Diversified country exposure
  9. 9.  NPL balances at $54.3 million or 0.98% of total loan portfolio  NPL reserve coverage of 1.6 times Credit Quality - NPL 9 (*) (*) (*) Reserve refers to the allowance for expected credit losses on loans, loan commitments and financial guarantee contracts.
  10. 10.  EoP deposits balance nearly at $3.0 B; with 73% placed by Central Banks Class “A” shareholders or designees  Well diversified funding base across geographies, products and tenors Average Funding Sources and Cost of Funds Funding Sources by Geography (As of June 30, 2018) Funding Sources 10 Deposits by Type of Client (As of June 30, 2018)
  11. 11. Shareholder Returns  Price per share below book value  Dividend of $0.385/share declared for 2Q18  Attractive dividend yield of 5.5% 11