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Blx webcast presentation 4 q19

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Blx webcast presentation 4 q19

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Blx webcast presentation 4 q19

  1. 1. FY19 & 4Q19 Earnings Results Presentation February 14, 2020
  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 • Significantly stronger credit profile • Solid reserves and capitalization • Steady top line revenues • Improved efficiency Global context – Headwinds from weak growth, subdued trade flows, geopolitical and idiosyncratic risks: • Economic growth below 3% in 2019. Tepid growth recovery to 3.3% expected in 2020. • Trade flows only grew approximately 1% in 2019, growth of 3% expected in 2020. • Geopolitical and idiosyncratic risks from Middle East, Italy and Turkey. Regional context – Economic growth below potential - Brazil as a bright spot: • LatAm grew just 0.1% in 2019. Only 1.5% growth expected in 2020. • Trade flows decreased 2.1% in 2019, expected to recover in 2020 (only up 1.6%). • Brazil grew 1.2% in 2019 (Mexico 0% and Argentina -3.3%). Brazil expected to grow 2.4% (Mexico +1.1% and Argentina -2.5%) in 2020. Bladex FY19 – Solid book of business with focus on top clients and structured transactions:
  4. 4. Profit Evolution 4  8.6% ROAE, 1.4% ROAA  32.1% Efficiency level  19.8% Tier 1 Basel III Capitalization 127.6 -57.5 -10.0 -48.9 11.1 126.7 -0.4 0.5 -40.7 86.1 Total revenues Impairment loss on financial instruments Gain (loss) on non- financial assets, net Operating expenses Profit for the period (US$Million) Year to Date 2018 2019  Sustained profitability  Steady top line revenues  Effective cost control management and overall improved structural and operational efficiencies  Improved risk profile: High quality portfolio origination, decrease in watch-list exposures and no new NPL  Decrease in credit provisions 34.1 1.3 -2.3 -12.4 20.7 29.5 -0.6 0.5 -9.0 20.4 31.4 1.9 0.0 -11.3 22.1 Total revenues Reversal (Impairment loss) on financial instruments Gain (loss) on non- financial assets, net Operating expenses Profit for the period (US$Million) Quarterly 4Q18 3Q19 4Q19
  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. 28.0 26.7 26.9 109.7 109.5 1.61% 1.77% 1.65% 1.71% 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 $20 $40 $60 $80 $100 $120 4Q18 3Q19 4Q19 2018 2019 Net Interest Income Net Interest Margin Net Interest Income & Margins (In US$ million, except percentages) 4.21% 4.28% 3.88% 3.97% 4.29% 3.13% 3.09% 2.69% 2.76% 3.10% 1.08% 1.19% 1.18% 1.21% 1.19% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 4Q18 3Q19 4Q19 2018 2019 Yield on Interest-Earning Assets Cost of Interest-Bearing Liabilities Net Interest Spread Net Interest Spread 3,148 3,054 3,412 14,303 12,156 3,039 3,066 3,073 13,976 12,037 211 222 374 193 250 -100000 -80000 -60000 -40000 -20000 0 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 4Q18 3Q19 4Q19 2018 2019 Loan Originationand Maturities Loan Origination ($MM) Loan Maturities ($MM) Loan Origination Average Term (Days) 5,724 5,262 5,586 5,559 5,463 1.97 1.96 1.92 1.99 1.96 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 4Q18 3Q19 4Q19 2018 2019 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Loan Portfolio Average Balances Average Balance Lending Credit Spread (%) *
  6. 6. Fees & Commission Income 6 2.3 2.4 2.5 10.8 9.5 2.0 0.5 2.7 4.9 5.6 1.1 0.2 1.5 0.5 5.4 2.8 5.4 17.2 15.6 4Q18 3Q19 4Q19 2018 2019 Fees and Commissions, net (in US$ million) Letters of credit Loan syndication fees Other commissions, net 335 427 459 371 435 157 217 199 98 157 492 644 658 469 592 4Q18 3Q19 4Q19 2018 2019 Average loancommitmentsandfinancial guarantee contracts (In US$ million) Letters of Credit Acceptances, loan commitments and financial guarantee contracts
  7. 7. 7 Commercial Portfolio Evolution and Composition 5,778 5,554 5,893 512 663 609 6,290 6,217 6,502 31-Dec-2018 30-Sep-2019 31-Dec-2019 Commercial Portfolio by Product (End of Period Balances, US$ million) Letters of credit, acceptances, loan commitments and financial guarantee contracts Loans 64% 62% 58% 10% 14% 15% 26% 24% 27% 31-Dec-2018 30-Sep-2019 31-Dec-2019 Commercial Portfolioby Term Short-term Medium & Long-term (current)* Medium & Long-term *Matures w ithin one year 53% 47% Short-termCommercialPortfolioby Trade Indicator (Asof December31, 2019) Trade Non-Trade 4,200 4,396 4,506 2,090 1,821 1,996 31-Dec-2018 30-Sep-2019 31-Dec-2019 Commercial Portfolio byClient Type (EoP balances, in US$ million) FIs & Sovereigns Corporations
  8. 8. 8 Commercial Portfolio Evolution and Composition 56% 7% 6% 5% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% Financial Institutions Oil and Gas (Integrated) Electric Power Food and Beverage Metal Manufacturing Retail Trade Other Services Mining Coffee Oil and Gas (Downstream) Sugar Other Manufacturing Industries Airlines Shipping Sovereign Construction and Infrastructure Plastics and Packaging Commercial Portfolioby Industry 31-Dec-2018 30-Sep-2019 31-Dec-2019 16% 15% 12% 11% 7% 5% 5% 5% 4% 3% 3% 2% 2% 2% 1% 7% Brazil Colombia Mexico Chile Ecuador Guatemala Dominican Republic Panama Costa Rica Argentina Trinidad & Tobago Peru Paraguay Honduras El Salvador Other non-LatAm and < 1% Commercial Portfolioby Country 31-Dec-2018 30-Sep-2019 31-Dec-2019
  9. 9. 51%49% 17% 0% 32% 51% 9 Commercial Portfolio – Country Specific As of December 31, 2019 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. 78% 22% 66% 15% 14% 5% Brazil (16%) 75% 25% 17% 0% 59% 24% Mexico (12%) 70% 30% 42% 9% 35% 14% 87% 13% 44% 20% 27% 9% Andean Region (24%) Central America and the Caribbean (25%) 68% 32% 47% 26% 11% 16% Southern Cone - excl. Argentina (13%)Argentina (3%)
  10. 10. Commercial Portfolio 6,290 6,006 6,209 6,217 6,502 Total Allowance for Losses 104.1 105.0 105.8 104.1 102.4 Total Allowance for Losses to Commercial Portfolio 1.65% 1.75% 1.70% 1.67% 1.57% Stage 1 Exposure 5,836 5,482 5,811 5,877 6,184 Allowance for Losses 38 30 34 32 32 Allowance for Losses / Stage 1 Exposure 0.65% 0.54% 0.58% 0.54% 0.51% Stage 2 Exposure 389 459 334 279 256 Allowance for Losses 17 21 15 18 16 Allowance for Losses / Stage 2 Exposure 4.26% 4.68% 4.52% 6.39% 6.32% Stage 3 Exposure 65 65 65 62 62 Allowance for Losses 49 54 57 54 54 Allowance for Losses / Stage 3 Exposure 76% 83% 88% 88% 88% Dec-18(US$ million, except percentages) Jun-19Mar-19 Sep-19 Dec-19 Credit Quality Credit Impaired Loans and Allowance for Losses 10 65 62 62 1.12 1.11 1.05 1.6 1.7 1.7 0.00 0.50 1.00 1.50 2.00 0 20 40 60 80 100 120 140 31-Dec-2018 30-Sep-2019 31-Dec-2019 Credit ImpairedLoans Credit Impaired Loans (in US$ million) Credit Impaired Loans to gross Loan Portfolio (%) Totalallowance for losses to Credit Impaired Loans (times) 100% CreditImpaired Loans by Industry Risk (Asof December,2019) Sugar
  11. 11. Operating Expenses & Efficiency 11 34.1 29.5 31.4 127.6 126.7 -12.4 -9.0 -11.3 -48.9 -40.7 36.3% 30.4% 35.9% 38.3% 32.1% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% -35 -25 -15 -5 5 15 25 35 45 4Q18 3Q19 4Q19 2018 2019 Efficiency (In US$ million, except percentages) Total revenues Operating expenses Efficiency Ratio 2019 2018 YoY (%) 4Q19 3Q19 4Q18 QoQ (%) YoY (%) Operating expens es S alaries and other em ployee expens es 24.2 28.0 -14% 6.4 5.7 6.6 13% -3% D epreciation of equipm ent and leas ehold im provem ents 2.9 1.3 123% 0.7 0.7 0.3 1% 126% Am ortization of intangible as s ets 0.7 1.2 -40% 0.2 0.2 0.2 17% 13% Other expens es 12.9 18.5 -30% 4.0 2.4 5.3 63% -25% T otal Operating Expens es $40.7 $48.9 -17% $11.3 $9.0 $12.4 26% -9% Effic ienc y Ratio 32.1% 38.3% -16% 35.9% 30.4% 36.3% 18% -1%
  12. 12. Return on Equity & Capitalization 12 8.3% 8.0% 8.7% 1.1% 8.6% 4Q18 3Q19 4Q19 2018 2019 ROAE Evolution 5,494 4,780 5,136 18.1% 21.1% 19.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 4Q18 3Q19 4Q19 Tier 1 Ratio(Basel III) Risk-Weighted Assets Basel III (US$ million) Tier 1 Capital Ratio (Basel III) $0.385 $0.385 $0.385 $1.540 $1.540 8.3% 7.6% 7.1% 6.4% 7.6% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% $0 $0 $0 $1 $1 $1 $1 $1 $2 4Q18 3Q19 4Q19 2018 2019 Declared dividends per share Annualized return / Average price per share Dividend per Share and Dividend Yield
  13. 13. Questions & Answers 13

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