PANAMA CITY, Feb. 22, 2024 /PRNewswire/ — Banco Latinoamericano de Comercio Exterior, S.A. (NYSE:BLX, “, Bladex”, , or “, the Bank”, )), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the Region, announced today its results for the Fourth Quarter (“4Q23”) and Full-year (“FY23”) ended December 31, 2023.
The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
4Q23 & FY23 Financial & Business Highlights
Sustained increase in Profitability, with Net Profit of $46.4 million in 4Q23 (+50% YoY), resulting in an annual record level of $166.2 million in FY23 (+81% YoY), fostered by higher total revenues on the Bank’s successful strategy execution and favorable market conditions.
Annualized Return on Equity (“ROE”) stood at 15.5% in 4Q23 (+388 bps YoY) and 14.7% in FY23 (+573 bps YoY), on the back of record recurrent operating results.
Record level Net Interest Income (“NII”), increasing for eleventh consecutive quarter at $65.6 million in 4Q23 (+33% YoY), reaching $233.2 million (+58% YoY) in FY23, driven by higher average volumes and rates. Net Interest Margin (“NIM”) expanded to 2.62% in 4Q23 (+51 bps YoY) and to 2.49% in FY23 (+78 bps YoY).
Fee income totaled $10.1 million for 4Q23 (+91% YoY), boosting fee income to record levels of $32.5 million (+64% YoY) in FY23, deriving from higher loan syndication fee activity and solid commissions from the letter of credit business.
Efficiency Ratio stood at 27.6% in 4Q23 and 27.2% in FY23, as higher total revenues overcompensated increases in operating expenses (+31% YoY in 4Q23; +32% YoY in FY23) mostly related to the Bank’s strategy and focus on strengthening its execution capabilities.
All-time high Credit Portfolio at $9,532 million as of December 31, 2023 (+9% YoY).
Commercial Portfolio EoP balances also reached a new record level of $8,521 million at the end of 4Q23 (+11% YoY), as new client onboarding and sustained cross-selling efforts delivered strong business volumes.
Investment Portfolio relatively stable at $1,011 million, mostly consisting of investment-grade securities held at amortized cost, further enhancing credit-risk exposure diversification.
Healthy asset quality. Most of the credit portfolio (96%) is classified as low risk or Stage 1. At the end of 4Q23, impaired credits (Stage 3) remained unchanged at $10 million or 0.1% of total Credit Portfolio, with a reserve coverage of 6.5x.
Record deposits level in 4Q23, reaching $4,408 million (+38% YoY), coupled with ample and constant access to interbank and debt capital markets, denotes the Bank’s sound and diversified funding structure.
Liquidity position at $1,999 million, or 19% of total assets as of December 31, 2023, mostly consisting of cash and due from banks placed with the Federal Reserve Bank of New York (94%).
The Bank´s Tier 1 Basel III Capital and Regulatory Capital Adequacy Ratios stood at 15.4% and 13.6%, respectively, enhanced by the Bank’s earning generation and risk appetite.
Financial Snapshot
(US$ million, except percentages and per share amounts)
4Q23
3Q23
4Q22
2023
2022
Key Income Statement Highlights
Net Interest Income (“NII”)
$65.6
$60.5
$49.4
$233.2
$148.0
Fees and commissions, net
$10.1
$11.1
$5.3
$32.5
$19.8
Gain (loss) on financial instruments, net
$1.9
$0.0
($1.6)
($0.0)
($1.4)
Total revenues
$77.8
$71.8
$53.2
$266.1
$166.7
Provision for credit losses
($10.0)
($6.5)
($5.8)
($27.5)
($19.5)
Operating expenses
($21.4)
($19.5)
($16.4)
($72.5)
($55.1)
Profit for the period
$46.4
$45.8
$31.0
$166.2
$92.0
Profitability Ratios
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