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Blx webcast presentation 2 q19

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2Q19 earning results

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Blx webcast presentation 2 q19

  1. 1. 2Q19 Earnings Results Presentation July 19, 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. 3 General Overview Global context - Uncertainty and Headwinds: • Strong US dollar • Protectionist rhetoric on trade and tariffs • Slowdown of economic activity in China, Europe and the US became a reality in the second quarter of 2019 Regional context - Growth expectations for 2019 are now closer to 1% for Latin America, driven by: • Lower investment • The prospect of diminishing trade volumes • Lower growth rates from developed markets • Political uncertainty in the countries Bladex 2Q19 - Solid book of business with focus on top clients and structured transactions: • Increase in revenues • Efficient cost structure • Solid portfolio balances • Strong capitalization
  4. 4. Profit Evolution 4 Improved performance across all line-items Increased revenues supported by: Commercial Portfolio growth Positive quarterly trend in financial margins and fees High quality portfolio origination with low credit reserve requirement Unchanged NPL levels Improved efficiency: decreasing trend in expenses Absence of losses on non-financial assets 9% ROAE, 1.4% ROAA 31% Efficiency level 20% Tier 1 Basel III Capitalization
  5. 5. Net Interest Income, Margins & Lending Trends 5 * Represents the spread over the Libor-based rate corresponding to the tenor of the transaction of the Performing Loan Portfolio.
  6. 6. Fees & Commission Income 6
  7. 7. 7 Commercial Portfolio Evolution and Composition 3,844 3,954 4,328 2,209 2,052 1,881 30-Jun-2018 31-Mar-2019 30-Jun-2019 CommercialPortfolio by Client Type (EoP balances, in US$ million) FIs & Sovereigns Corporations
  8. 8. 8 Commercial Portfolio Evolution and Composition
  9. 9. 9 Commercial Portfolio – Country Specific As of June 30, 2019 Mexico (14%) Argentina (6%) Central America and the Caribbean (30%) Andean Region (20%) Southern Cone - excl. Argentina (10%) Brazil (16%) Includes: Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Panama and Trinidad and Tobago. Includes: Bolivia, Colombia, Ecuador and Peru. Includes: Chile, Paraguay and Uruguay.
  10. 10. Credit Quality Credit Impaired Loans and Allowance for Losses 10 Commercial Portfolio 6,054 6,305 6,290 6,006 6,209 Total Allowance for Losses 87.4 142.5 104.1 105.0 105.8 Total Allowance for Losses to Commercial Portfolio 1.44% 2.26% 1.65% 1.75% 1.70% Stage 1 Exposure 5,669 5,948 5,836 5,482 5,811 Allowance for Losses 37 40 38 30 34 Allowance for Losses / Stage 1 Exposure 0.65% 0.67% 0.65% 0.54% 0.58% Stage 2 Exposure 331 237 389 459 334 Allowance for Losses 24 13 17 21 15 Allowance for Losses / Stage 2 Exposure 7.34% 5.67% 4.26% 4.68% 4.52% Stage 3 Exposure 54 119 65 65 65 Allowance for Losses 26 89 49 54 57 Allowance for Losses / Stage 3 Exposure 48.32% 74.98% 76.41% 83.06% 88.26% Jun-19Dec-18Sep-18 STAGE 1 STAGE 2 STAGE 3 TOTAL (US$ million, except percentages) Jun-18 Mar-19
  11. 11. Operating Expenses & Efficiency 11 6M196M196M196M19 6M186M186M186M18 YoY (%)YoY (%)YoY (%)YoY (%) 2Q192Q192Q192Q19 1Q191Q191Q191Q19 2Q182Q182Q182Q18 QoQ (%)QoQ (%)QoQ (%)QoQ (%) YoY (%)YoY (%)YoY (%)YoY (%) Operating expensesOperating expensesOperating expensesOperating expenses Salaries and other employee expenses 12.1 16.2 -25% 5.8 6.3 6.1 -8% -4% Depreciation of equipment and leasehold improvements 1.4 0.6 117% 0.7 0.7 0.3 2% 121% Amortization of intangible assets 0.4 0.7 -47% 0.2 0.2 0.3 16% -43% Other expenses 6.5 8.2 -20% 3.8 2.7 4.6 41% -17% Total Operating ExpensesTotal Operating ExpensesTotal Operating ExpensesTotal Operating Expenses $20.4$20.4$20.4$20.4 $25.7$25.7$25.7$25.7 -20%-20%-20%-20% $10.6$10.6$10.6$10.6 $9.9$9.9$9.9$9.9 $11.4$11.4$11.4$11.4 7%7%7%7% -7%-7%-7%-7% Efficiency RatioEfficiency RatioEfficiency RatioEfficiency Ratio 31.1%31.1%31.1%31.1% 40.5%40.5%40.5%40.5% -23%-23%-23%-23% 31.4%31.4%31.4%31.4% 30.8%30.8%30.8%30.8% 34.8%34.8%34.8%34.8% 2%2%2%2% -10%-10%-10%-10%
  12. 12. Return on Equity & Capitalization 12
  13. 13. Questions & Answers 13

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