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Blx presentation 1 q19 english - vfinal

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Blx presentation 1 q19 english - vfinal

  1. 1. Banco Latinoamericano de Comercio Exterior, S.A. (BLADEX) Corporate Presentation As of March 31, 2019
  2. 2. 2 Index Overview03 Our Commercial Portfolio08 Treasury & Capital Markets13 Our Financial Performance16
  3. 3. 3 Value Proposition with Strong Business Fundamentals Business Value Proposition Strong Underlying Business Fundamentals Global provider of natural resources with positive demographics Sustained growth and sound economic policies Deep knowledge of Latin America Core competency in trade finance Support of Investment & Regional Integration Efficient Measurement and Management In-depth knowledge of Latin America’s local markets Backed by 23 Latin American governments Vast correspondent banking network throughout LatAm & other regions of the world. Regional integrator, within Latin America and the world’s largest markets. Deep knowledge of Trade Finance with more than 40 years of remarkable success. Uniquely qualified staff with strong product expertise in Trade Value Chain, Cross-border Finance, Supply-side & Distribution, both intra-regional and inter-regional Deep knowledge of Trade Finance with 40 years of remarkable success Single point of contact, providing client-specific solutions, and focused on long-term relationships. Driver of progress, economic growth and development Supporting specialization in both primary and manufacturing sectors Enhancing LatAm’s role in global and regional value chains Growth of ‘Multi-latinas’ as drivers of business expansion Supporting business integration boosted by free trade agreements World-Class Standards in Corporate Governance, focused on Enterprise-Wide Risk Management Client focused efficient organizational structure. Bladex is the Latin American Trade Finance Bank providing integrated financial solutions across Latin America’s foreign trade value chain and supporting the Region’s economic integration. First Latin American bank to be listed on the NYSE, ticker symbol “BLX”, and to be rated Investment Grade (both in 1992). Class “A” shareholders (Central Banks or designees from 23 Latin America (“LatAm”) countries) provide substantial support and represent a direct link between the Bank and the governments of Latin America. Multinational DNA embedded in its regional presence, ownership structure, management and organizational culture. The Latin American Trade Finance Bank P-2 Short-Term Baa2 Long-Term Negative Outlook F2 Short-Term BBB+ Long-Term Stable Outlook A-2 Short-Term BBB Long-Term Negative Outlook Credit Rating
  4. 4. 4 Ownership and Board Composition The majority of Directors are independent Class A – Central Banks or designees from 23 LatAm countries Class B – LatAm & international banks and financial institutions Class E – Public Float (NYSE listed) Bladex considers its unique shareholding structure as one of its main competitive advantages: Class “A” shareholders provide substantial support to Bladex, representing a direct link between the Bank and the governments of Latin America. Many of the governments represented by Class “A” shareholders have granted Bladex preferred creditor status. Class “A” shareholders are the main source of Bladex’s deposits, which have proven to be a reliable funding source, even during periods of market volatility. Unique Shareholder Structure
  5. 5. 5 Objective and Business Segmentation Business Products & Services Offer Multi-Pronged Business Segmentation Bladex’s products and services are categorized into three main areas: i) Financial Intermediation, ii) Structuring and Syndications and iii) Treasury Financial Intermediation Syndication and Structuring Treasury Trade: Foreign trade products – short and medium term instruments that help drive the cross-border activity of corporations. Working Capital: Structured Credit and lending facilities for short and medium term financing of supply chain, materials & equipment, and inventories, across a wide range of activity sectors. Financial solutions designed to meet clients' needs. Provides access to structured funding for a wide base of financial institutions and corporations in Latin America. Debt capital market and deposit products for investment and cash flow optimization Treasury services Focus on Strategic Sectors for the Region Agribusiness, Oil & Gas (mainly integrated), Metals & Mining, Food processing and other Manufacturing Regional Focus Mexico Central America and The Caribbean Brazil South America • Southern Cone (1) • Andean Region (2) REGIONS INDUSTRY SECTORS (1) Includes Argentina, Chile, Paraguay and Uruguay. (2) Includes Bolivia, Colombia, Ecuador and Peru Financial Institutions Among top 10 in their respective markets Significant corporate banking activity / client base Corporations US Dollar generation capacity Growth oriented beyond domestic market Focus on the high and medium corporate segments of each industry CLIENT BASE PRE-EXPORT NON-TRADE NON-TRADETRADE POST-EXPORTSHIPMENT PRE-PRODUCTION PRODUCTION IMPORTATION DISTRIBUTION Vision: To be recognized as a leading institution in supporting trade and regional integration across Latin America Mission: To provide financial solutions of excellence to financial institutions, companies and investors doing business in Latin America
  6. 6. 6 Competitive Advantages 1 Commitment with Latin America 2 Knowledge of the Region 3 Access to Level 1 Customers 4 Stable Funding Bladex hopes to build a more complete Trade Finance lending proposal by enhancing a set of competitive advantages such as: Bladex hopes to build a more complete Trade Finance lending proposal by enhancing a set of competitive advantages such as: Competitive Advantages Description ▪ Highly diversified funding sources with access to capital markets and correspondent relationships across the world, at varying tenors and competitive pricing. ▪ 64% of funds are deposits from its central banks shareholders. ▪ Extensive client base with broad knowledge of their financial needs. ▪ Significant penetration among the top 100 Multilatinas companies. ▪ Access to key players in decision making. ▪ Established presence with 40 years of experience with a broad footprint in Latin America. ▪ Great understanding of the risks and opportunities in the Region. ▪ Legal and regulatory expertise. ▪ Bladex is contractually committed to the broad support of trade in Latin America and the rise of economic prosperity in the Region ▪ Latin America represents Bladex’s core business, while for other global banks, it represents a minority of their business.
  7. 7. 7 Overview03 Our Commercial Portfolio08 Treasury & Capital Markets13 Our Financial Performance16 Index
  8. 8. 8 Accumulated Credit Disbursements 40 years creating growth and prosperity in Latin America, with accumulated credit disbursements of approximately US$277 billion since inception. Disbursement volumes surpass or rival those of much larger institutions, both private sector and multilateral. 0 1 2 3 4 5 6 7 9 11 14 17 22 29 37 46 56 67 79 89 97105114120124129135144152158162169 180 191 205 219 231 243 258 274277 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 (In US$ billion)
  9. 9. 9 Commercial Portfolio Evolution and Composition 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
  10. 10. 10 Portfolio strategy aims toward diversification across countries, industries and clients. Commercial Portfolio Evolution and Composition
  11. 11. 11 Commercial Portfolio – Country Specific As of March 31, 2019 Mexico Argentina Central America and the Caribbean Andean Region Southern Cone (excl. Argentina) Brazil
  12. 12. 12 Overview03 Our Commercial Portfolio08 Treasury & Capital Markets13 Our Financial Performance16 Index
  13. 13. 13 Treasury & Capital Markets Funding Sources Deposits by Type of Client As of March 31, 2019 Funding Structure As of March 31, 2019 Deposits from central banks shareholders or designees provide a resilient funding base. 52% 22% 14% 12% 1% Deposits Short-term borrowings and debt Med- and long-term Borrowings Med- and long-term Issuances Securities sold under repurchase agreement Funding Sources by Geographic Market As of March 31, 2019 28% 18% 16% 14% 12% 6% 4% 2% South America USA / Canada Central America Asia Europe Multilateral Mexico The Caribbean Proven capacity to secure funding and maintain liquidity during crises. Diversification of regional and global funding sources.
  14. 14. 741 1,267 1,008 619 1,706 771 30% 45% 36% 21% 57% 28% 0% 10% 20% 30% 40% 50% 60% 70% 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2014 2015 2016 2017 2018 1Q19 Liquid Assets Liquid Assets / Total Deposits 14 Liquidity – International Standards Advanced liquidity management operating under Basel III framework utilizing LCR (Liquidity Coverage Ratio) and NSFR (Net Stable Funding Ratio) methodologies to monitor short and longer range liquidity. As of March 31, 2019: Liquidity = US$ 0.8 Billion LCR (1) = 1.12x NSFR (1) = 1.48x Liquid assets are invested with the Federal Reserve and top-tier banks Liquidity Management Highlights Liquidity Placements Internal Liquidity Coverage Ratio (1)Liquid Assets - 0.50 1.00 1.50 2.00 2.50 3.00 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 (in US$ million) (1) Basel III methodology adjusted with internal parameters. 99% 1% United States LatAm Banks As of March 31, 2019, $765 million or 99% of liquid assets were deposited at the Federal Reserve Bank of New York.
  15. 15. 15 Overview03 Our Commercial Portfolio08 Treasury & Capital Markets13 Our Financial Performance16 Index
  16. 16. 16 Financial Performance Highlights 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). Quarterly profit of $21.2 million continues the positive trend from 4Q18 and highest level of the last 8 quarters. Stable quarterly NII, mostly on higher margins (NIM). Efficiency improved to the earmarked 30.8%. Stable level of credit impaired loans and allowances for losses. Robust capitalization (20.1% Basel III Tier 1). 1Q19
  17. 17. 17 30.7 (1.9) 0.0 (14.3) 14.5 34.1 1.3 (2.3) (12.4) 20.7 32.1 (0.9) 0.0 (9.9) 21.2 Total revenues (Impairment loss) recovery on financial instruments Impairment loss on non- financial assets Operating expenses Profit for the period (US$Million) 1Q18 4Q18 1Q19 Quarterly Profit Evolution
  18. 18. 18 Net Interest Income & Financial Margins * Represents the spread over the Libor-based rate corresponding to the tenor of the transaction of the Performing Loan Portfolio.
  19. 19. 19 Fees & Commission Income
  20. 20. 20 Credit Quality – Credit Impaired Loans and Allowance for Losses 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
  21. 21. 21 Operating Expenses & Efficiency (US $ million, except percentages) 1Q191Q191Q191Q19 4Q184Q184Q184Q18 1Q181Q181Q181Q18 QoQ (%)QoQ (%)QoQ (%)QoQ (%) YoY (%)YoY (%)YoY (%)YoY (%) Operating ex pens esOperating ex pens esOperating ex pens esOperating ex pens 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% Amortization 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 Ex pens esT otal Operating Ex pens esT otal Operating Ex pens esT otal Operating Ex pens es $9.9$9.9$9.9$9.9 $12.4$12.4$12.4$12.4 $14.3$14.3$14.3$14.3 -20%-20%-20%-20% -31%-31%-31%-31% Effic ienc y RatioEffic ienc y RatioEffic ienc y RatioEffic ienc y Ratio 30.8%30.8%30.8%30.8% 36.3%36.3%36.3%36.3% 46.6%46.6%46.6%46.6% -15%-15%-15%-15% -34%-34%-34%-34%
  22. 22. 168 174 168 138 128 32 (54) (52) (46) (47) (49) (10) 32% 30% 27% 34% 38% 31% -20% -10% 0% 10% 20% 30% 40% 50% 60% -60 -10 40 90 140 190 2014 2015 2016 2017 2018 1Q19 Total revenues Operating expenses Efficiency Ratio 141.3 145.5 155.2 119.8 109.7 28.0 1.88% 1.84% 2.08% 1.85% 1.71% 1.74% -0.50% 2.50% $0$5$10$15$20$25$30$35$40$45$50$55$60$65$70$75$80$85$90$95$100$105$110$115$120$125$130$135$140$145$150$155$160$165$170$175$180 2014 2015 2016 2017 2018 1Q19 Net Interest Income Net Interest Margin ("NIM") 11.5 12.3 8.5 10.9 12.3 2.4 6.0 6.9 5.8 6.6 4.9 17.5 19.2 14.3 17.5 17.2 2.4 2014 2015 2016 2017 2018 1Q19 Loan structuring and distribution fees Letters of credit and other contingent credits fees 99.7 99.0 91.5 82.0 11.1 21.2 2014 2015 2016 2017 2018 1Q19 22 Key Indicators – P&L Fees & Commissions, net Efficiency Profit for the Period Net Interest Income & Margins (in US$ million) (in US$ million) (in US$ million, except percentages) (in US$ million, except percentages)
  23. 23. 23 Key Indicators – Balance Sheet Total Deposits Total Stockholder’s Equity Total Assets Loan Portfolio (in US$ million) (in US$ million) (in US$ million) (in US$ million) 8,022 8,286 7,181 6,268 7,609 6,450 2014 2015 2016 2017 2018 1Q19 6,686 6,692 6,021 5,506 5,778 5,479 2014 2015 2016 2017 2018 1Q19 2,507 2,795 2,803 2,929 2,971 2,748 2014 2015 2016 2017 2018 1Q19 911 972 1,011 1,043 994 997 2014 2015 2016 2017 2018 1Q19
  24. 24. $1.435 $1.540 $1.540 $1.540 $1.540 $0.385 4.9% 5.3% 5.9% 5.5% 6.4% 8.1% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% $0 2014 2015 2016 2017 2018 1Q19 Declared dividends per share Annualized return / Average price per share 15.5% 16.1% 17.9% 21.1% 18.1% 20.1% 15.1% 16.3% 16.6% 18.7% 17.1% 18.6% 8.8 8.5 7.1 6.0 7.7 6.5 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2014 2015 2016 2017 2018 1Q19 Tier 1 Capital Ratio (Basel III) (1) Capital Adequacy Index (2) Regulatory Capital Limit Leverage (3) 8% (1)Based on BaselIII Internalratings-based(IRB)approach (2)As defined by theSuperintendenceof Banks of Panama (SBP), basedon BaselIII Standardized Approach (3)Assets toEquity 24 Key Indicators – Profitability Return on Average Equity “ROAE” Capital Ratios Return on Average Assets “ROAA” Dividend per Share
  25. 25. 25 Key Indicators – Trend (In US$ million, except percentages and per share amounts) 2014 2015 2016 2017 2018 1Q19 Selected Profit or Loss Data: Net Interest Income 141.3 145.5 155.2 119.8 109.7 28.0 Fees and commissions, net 17.5 19.2 14.3 17.5 17.2 2.4 Gain (loss) on financial instruments, net 7.0 7.6 (2.9) (0.7) (1.0) 0.8 Other income, net 1.8 1.6 1.4 1.7 1.7 0.9 Total revenues 167.6 173.9 168.0 138.3 127.6 32.1 Impairment loss on financial instruments (11.6) (18.1) (35.1) (9.4) (57.5) (0.9) Impairment loss on non-financial assets - - - - (10.0) - Operating expenses (53.6) (51.8) (45.8) (46.9) (48.9) (9.9) Profit for the period 102.4 104.0 87.0 82.0 11.1 21.2 Selected Financial Position Data Loan Portfolio 6,686 6,692 6,021 5,506 5,778 5,479 Assets 8,022 8,286 7,181 6,268 7,609 6,450 Deposits 2,507 2,795 2,803 2,929 2,971 2,748 Repos, borrowings and debt, net 4,393 4,426 3,247 2,212 3,558 2,541 Stockholders' Equity 911 972 1,011 1,043 994 997 Selected Financial Ratios Return on Average Assets (ROAA) 1.4% 1.3% 1.2% 1.3% 0.2% 1.3% Return on Average Equity (ROAE) 11.5% 11.0% 8.8% 8.0% 1.1% 8.6% Net Interest Margin (NIM) 1.88% 1.84% 2.08% 1.85% 1.71% 1.74% Efficiency Ratio 32% 30% 27% 34% 38% 31% Credit-impaired loans to Loan Portfolio 0.06% 0.78% 1.09% 1.07% 1.12% 1.18% Credit-impaired coverage (x times) 21.7 1.8 1.7 1.5 1.6 1.6 Shares and Market Capitalization Number of shares outstanding (thousand) 38,777 38,969 39,160 39,429 39,539 39,544 Share price (as of period end) 30.10 25.93 29.44 26.90 17.30 19.92 Market capitalization 1,167 1,010 1,153 1,061 684 788 Earnings (Losses) per share (EPS) 2.65 2.67 2.23 2.09 0.28 0.54 Book value per share (BVPS) 23.49 24.94 25.83 26.45 25.13 25.21 Price to EPS (times) 11.4 9.7 13.2 12.9 61.4 44.1 Price to BVPS (times) 1.3 1.0 1.1 1.0 0.7 0.8 Financial Information was prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB.

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