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1Q19 Earnings Results Presentation
April 17, 2019
2
This presentation contains forward-looking statements of expected future developments within the meaning of the Private
...
Global context: A significant deceleration in Europe and China
continue to make the US dollar attractive, leading to lower...
Quarterly Profit Evolution
4
30.7
(1.9)
0.0
(14.3)
14.5
34.1
1.3
(2.3)
(12.4)
20.7
32.1
(0.9)
0.0
(9.9)
21.2
Total revenue...
Net Interest Income & Financial
Margins
5
Note: Other include interest on Credit Impaired loans and interest expense resul...
Loan Origination and Maturities
6
* Represents the spread over the Libor-based rate corresponding to the tenor of the tran...
Fees & Commission Income
7
391
335
410
35 157
87426
492 498
1Q18 4Q18 1Q19
Average loan commitments and financial
guarante...
Commercial Portfolio Composition
8
3,648
4,200
3,954
2,084 2,090 2,052
31-Mar-18 31-Dec-18 31-Mar-19
CommercialPortfolio b...
Commercial Portfolio - Country Specific
(As of March 31, 2019)
9
Brazil Argentina
Mexico Costa Rica
80%
20%
By Remaining T...
Credit Quality
Credit Impaired Loans and Allowance for Losses
10
96%
4%
Credit Impaired Loans by
Industry Risk
(As of Marc...
Operating Expenses & Efficiency
11
(US $ million, except percentages) 1Q19 4Q18 1Q18 QoQ (%) YoY (%)
Operating expens es
S...
 Quarterly profit of $21.2 million continues the positive
trend from 4Q18 and highest level of the last 8 quarters.
 Sta...
Questions & Answers
13
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1Q 2019 Bladex Earnings Presentation

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Bladex Earning Results Presentation 1Q 2019

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1Q 2019 Bladex Earnings Presentation

  1. 1. 1Q19 Earnings Results Presentation April 17, 2019
  2. 2. 2 This presentation contains forward-looking statements of expected future developments within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presentation include the growth of the credit portfolio, including the trade portfolio, the increase in the number of the Bank’s corporate clients, the trend of lending spreads, changes in activities engaged in by the Bank that are derived from the Bank’s client base, anticipated operating results and return on equity in future periods, including income derived from the Treasury Business Segment, and changes in the financial and performance strength of the Bank. 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 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. 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.
  3. 3. Global context: A significant deceleration in Europe and China continue to make the US dollar attractive, leading to lower fund flows to emerging markets in general, and Latin America in particular. Regional context: A more challenging political and economic environment for some key countries in Latin America, and the prospect of declining trade volumes and other impacts from trade tension continuing offers no room for complacency. Bladex 1Q19: Stable revenues and lower expenses in a seasonally slow quarter, with higher profitability and a solid credit portfolio. 3 General Overview
  4. 4. Quarterly Profit Evolution 4 30.7 (1.9) 0.0 (14.3) 14.5 34.1 1.3 (2.3) (12.4) 20.7 32.1 (0.9) 0.0 (9.9) 21.2 Total revenues (Impairment loss) recovery on financial instruments Impairment loss on non- financial assets Operating expenses Profit for the period (US$Million) 1Q18 4Q18 1Q19
  5. 5. Net Interest Income & Financial Margins 5 Note: Other include interest on Credit Impaired loans and interest expense resulting from the implementation of the IFRS16/Leasing. 26.6 28.0 28.0 1.68% 1.61% 1.74% -3.00%-2.90%-2.80%-2.70%-2.60%-2.50%-2.40%-2.30%-2.20%-2.10%-2.00%-1.90%-1.80%-1.70%-1.60%-1.50%-1.40%-1.30%-1.20%-1.10%-1.00%-0.90%-0.80%-0.70%-0.60%-0.50%-0.40%-0.30%-0.20%-0.10%0.00%0.10%0.20%0.30%0.40%0.50%0.60%0.70%0.80%0.90%1.00%1.10%1.20%1.30%1.40%1.50%1.60%1.70%1.80%1.90%2.00%2.10%2.20%2.30%2.40%2.50%2.60%2.70% $0 $5 $10 $15 $20 $25 $30 1Q18 4Q18 1Q19 Net Interest Income Net Interest Margin Net Interest Income & Margins (In US$ million, except percentages) 3.58% 4.21% 4.50% 2.32% 3.13% 3.35% 1.26% 1.08% 1.16% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 1Q18 4Q18 1Q19 Yield on Interest-Earning Assets Cost of Interest-Bearing Liabilities Net Interest Spread Net Interest Spread 1Q18 Volume Rate Other 1Q19 NII & NIM - YoY variation effects ($ millions, except %) NII: $26.6MM (NIM: 1.68%) NII: $28.0MM (NIM: 1.74%) Total Variation: +$1.4MM in NII or +6bps in NIM -$0.3MM +$2.2MM -$0.5MM 4Q18 Volume Rate Other 1Q19 NII & NIM - QoQ variation effects ($ millions, except %) NII: $28.0MM (NIM: 1.61%) NII: $28.0MM (NIM: 1.74%) Total Variation: +$0.0MM in NII or +13bps in NIM -$0.1MM +$0.6MM -$0.5MM
  6. 6. Loan Origination and Maturities 6 * Represents the spread over the Libor-based rate corresponding to the tenor of the transaction of the Performing Loan Portfolio. 5,582 5,404 5,524 5,724 5,567 2.05 2.01 1.93 1.97 1.99 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 1Q18 2Q18 3Q18 4Q18 1Q19 0.00 0.50 1.00 1.50 2.00 2.50 Loan Portfolio AverageEvolution Average Balance Lending Credit Spread (%) * 3,549 4,278 3,329 3,148 2,653 3,829 3,948 3,159 3,039 2,952 101 227 232 211 182 -100,000 -80,000 -60,000 -40,000 -20,000 0 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 1Q18 2Q18 3Q18 4Q18 1Q19 (US$Million) Performing Loan Originationand Maturities Loan Origination ($MM) Loan Maturities ($MM) Loan Origination Average Term (Days)
  7. 7. Fees & Commission Income 7 391 335 410 35 157 87426 492 498 1Q18 4Q18 1Q19 Average loan commitments and financial guarantee contracts (In US$ million) Letters of Credit Credit commitments and guarantees 3.0 3.5 2.4 0.0 1.9 0.0 3.1 5.4 2.4 1Q18 4Q18 1Q19 Fees and Commissions,net (In US$ million) Loan structuring and distribution fees Letters of credit and other contingent credits
  8. 8. Commercial Portfolio Composition 8 3,648 4,200 3,954 2,084 2,090 2,052 31-Mar-18 31-Dec-18 31-Mar-19 CommercialPortfolio by Client Type (EoP balances, in US$ million) FIs & Sovereigns Corporations 18% 15% 12% 9% 9% 7% 7% 5% 5% 4% 2% 2% 1% 1% 1% 2% Brazil Mexico Colombia Argentina Panama Dominican Republic Ecuador Costa Rica Guatemala Chile Paraguay Trinidad & Tobago Peru El Salvador Honduras Other non-LatAm and < 1% Commercial Portfolio byCountry 31-Mar-2018 31-Dec-2018 31-Mar-2019 55% 6% 5% 4% 3% 3% 3% 3% 3% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% Financial Institutions Oiland Gas (Integrated) Electric Power Food and Beverage Sugar Metal Manufacturing Other Services Retail Trade Plastics and Packaging Airlines Other Manufacturing Industries Grains and Oilseeds Oiland Gas (Downstream) Sovereign Shipping Paper Coffee Wholesalers Oiland Gas (Upstream) Construction and Infrastructure Mining Commercial Portfolio byIndustry 31-Mar-2018 31-Dec-2018 31-Mar-2019 56% 44% Short-term Commercial Portfolio by Trade Indicator (As of March 31, 2019) Trade Non-Trade 18% 15% 12% 9% 9% 7% 7% 5% 5% 4% 2% 2% 1% 1% 1% 2% Brazil Mexico Colombia Argentina Panama Dominican Republic Ecuador Costa Rica Guatemala Chile Paraguay Trinidad & Tobago Peru El Salvador Honduras Other non-LatAm and < 1% Commercial Portfolio byCountry 31-Mar-2018 31-Dec-2018 31-Mar-2019
  9. 9. Commercial Portfolio - Country Specific (As of March 31, 2019) 9 Brazil Argentina Mexico Costa Rica 80% 20% By Remaining Term Maturities up to 1 year Maturities greater than 1 year 59%21% 15% 5% By Client Type Private FIs State-owned FIs Private Corporations State-owned corporations 26% 5% 33% 36% By Client Type Private FIs State-owned FIs Private Corporations State-owned corporations 69% 31% By Remaining Term Maturities up to 1 year Maturities greater than 1 year 78% 22% By Remaining Term Maturities up to 1 year Maturities greater than 1 year 40% 15% 45% 0% By Client Type Private FIs State-owned FIs Private Corporations State-owned corporations 18% 0% 68% 14% By Client Type Private FIs State-owned FIs Private Corporations State-owned corporations 71% 29% By Remaining Term Maturities up to 1 year Maturities greater than 1 year
  10. 10. Credit Quality Credit Impaired Loans and Allowance for Losses 10 96% 4% Credit Impaired Loans by Industry Risk (As of March 31, 2019) Sugar Food and Beverage Commercial Portfolio 5,731 6,054 6,305 6,290 6,006 Total Allowance for Losses 90.1 87.4 142.5 104.1 105.0 Total Allowance for Losses to Commercial Portfolio 1.57% 1.44% 2.26% 1.65% 1.75% Stage 1 Exposure 5,185 5,669 5,948 5,836 5,482 Allowance for Losses 24 37 40 38 30 Allowance for Losses / Stage 1 Exposure 0.46% 0.65% 0.67% 0.65% 0.54% Stage 2 Exposure 488 331 237 389 459 Allowance for Losses 36 24 13 17 21 Allowance for Losses / Stage 2 Exposure 7.34% 7.34% 5.67% 4.26% 4.68% Stage 3 Exposure 59 54 119 65 65 Allowance for Losses 30 26 89 49 54 Allowance for Losses / Stage 3 Exposure 51.46% 48.32% 74.98% 76.41% 83.06% Mar-19Jun-18 STAGE 1 STAGE 2 STAGE 3 TOTAL (US$ million, except percentages) Dec-18Sep-18Mar-18
  11. 11. Operating Expenses & Efficiency 11 (US $ million, except percentages) 1Q19 4Q18 1Q18 QoQ (%) YoY (%) Operating expens es S alaries and other em ployee expens es 6.3 6.6 10.1 -4% -37% D epreciation of equipm ent and leas ehold im provem ents 0.7 0.3 0.3 113% 114% Am ortization of intangible as s ets 0.2 0.2 0.3 -1% -51% Other expens es 2.7 5.3 3.6 -49% -24% T otal Operating Expens es $9.9 $12.4 $14.3 -20% -31% Effic ienc y Ratio 30.8% 36.3% 46.6% -15% -34% 30.7 34.1 32.1 (14.3) (12.4) (9.9) 46.6% 36.3% 30.8% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% -25 -15 -5 5 15 25 35 45 55 65 1Q18 4Q18 1Q19 Efficiency (In US$ million, except percentages) Total revenues Operating expenses Efficiency Ratio
  12. 12.  Quarterly profit of $21.2 million continues the positive trend from 4Q18 and highest level of the last 8 quarters.  Stable quarterly NII, mostly on higher margins (NIM).  Efficiency improved to the earmarked 30.8%.  Stable level of credit impaired loans and allowances for losses.  Robust capitalization (20.1% Basel III Tier 1). 1Q19 1Q19 Highlights Financial Performance Overview 12
  13. 13. Questions & Answers 13

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