PANAMA
CITY, Feb. 27, 2023 /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, today
announced its results for the Fourth Quarter ("4Q22") and Full-Year
("FY22") ended December 31,
2022.
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").
FINANCIAL SNAPSHOT
|
|
(US$ million, except
percentages and per
share amounts)
|
4Q22
|
3Q22
|
4Q21
|
2022
|
2021
|
Key Income Statement
Highlights
|
|
|
|
|
|
Net Interest Income
("NII")
|
$49.4
|
$40.2
|
$24.8
|
$148.0
|
$86.8
|
Fees and commissions,
net
|
$5.3
|
$6.3
|
$6.2
|
$19.8
|
$18.3
|
Loss on financial
instruments, net
|
($1.6)
|
($0.3)
|
($1.3)
|
($1.4)
|
($1.3)
|
Other income,
net
|
$0.0
|
$0.2
|
$0.1
|
$0.3
|
$0.4
|
Total
revenues
|
$53.2
|
$46.3
|
$29.8
|
$166.7
|
$104.2
|
Provision for credit
losses
|
($5.8)
|
($4.8)
|
($0.2)
|
($19.5)
|
($2.3)
|
Gain on non-financial
assets, net
|
$0.0
|
$0.0
|
$0.7
|
$0.0
|
$0.7
|
Operating
expenses
|
($16.4)
|
($14.6)
|
($10.3)
|
($55.1)
|
($39.9)
|
Profit for the
period
|
$31.0
|
$26.9
|
$20.1
|
$92.0
|
$62.7
|
Profitability
Ratios
|
|
|
|
|
|
Earnings per Share
("EPS") (1)
|
$0.85
|
$0.74
|
$0.54
|
$2.54
|
$1.62
|
Return on Average
Equity ("ROE") (2)
|
11.6 %
|
10.3 %
|
7.9 %
|
8.9 %
|
6.1 %
|
Return on Average
Assets ("ROA") (3)
|
1.3 %
|
1.2 %
|
1.1 %
|
1.0 %
|
0.9 %
|
Net Interest Margin
("NIM") (4)
|
2.11 %
|
1.77 %
|
1.42 %
|
1.71 %
|
1.32 %
|
Net Interest Spread
("NIS") (5)
|
1.63 %
|
1.43 %
|
1.26 %
|
1.39 %
|
1.15 %
|
Efficiency Ratio
(6)
|
30.8 %
|
31.6 %
|
34.6 %
|
33.1 %
|
38.3 %
|
Assets, Capital,
Liquidity & Credit Quality
|
|
|
|
|
|
Credit Portfolio
(7)
|
$8,726
|
$8,862
|
$7,365
|
$8,726
|
$7,365
|
Commercial Portfolio
(8)
|
$7,706
|
$7,821
|
$6,540
|
$7,706
|
$6,540
|
Investment
Portfolio
|
$1,020
|
$1,041
|
$825
|
$1,020
|
$825
|
Total assets
|
$9,284
|
$9,320
|
$8,038
|
$9,284
|
$8,038
|
Total equity
|
$1,069
|
$1,049
|
$992
|
$1,069
|
$992
|
Market capitalization
(9)
|
$588
|
$474
|
$601
|
$588
|
$601
|
Tier 1 Capital to
risk-weighted assets (Basel III – IRB) (10)
|
15.3 %
|
14.4 %
|
19.1 %
|
15.3 %
|
19.1 %
|
Capital Adequacy Ratio
(Regulatory) (11)
|
13.2 %
|
12.2 %
|
15.6 %
|
13.2 %
|
15.6 %
|
Total assets / Total
equity (times)
|
8.7
|
8.9
|
8.1
|
8.7
|
8.1
|
Liquid Assets / Total
Assets (12)
|
13.7 %
|
11.1 %
|
17.5 %
|
13.7 %
|
17.5 %
|
Credit-impaired loans
to Loan Portfolio (13)
|
0.4 %
|
0.1 %
|
0.2 %
|
0.4 %
|
0.2 %
|
Impaired credits
(14) to Credit Portfolio
|
0.4 %
|
0.1 %
|
0.1 %
|
0.4 %
|
0.1 %
|
Total allowance for
losses to Credit Portfolio (15)
|
0.8 %
|
0.7 %
|
0.6 %
|
0.8 %
|
0.6 %
|
Total allowance for
losses to Impaired credits (times) (15)
|
1.9
|
5.8
|
4.4
|
1.9
|
4.4
|
4Q22 & FY22 FINANCIAL & BUSINESS HIGHLIGHTS
- Increased Profitability, with Net Profit of
$31.0 million in 4Q22 (+15% QoQ; +55%
YoY) and $92.0 million in FY22 (+47%
YoY), driven by strong core income mainly from the continued trend
of higher Net Interest Income ("NII").
- Annualized Return on Equity ("ROE") expanded to
11.6% in 4Q22 (+132 bps QoQ and +368 bps YoY) and to 8.9% in FY22
(+284 bps YoY), driven mainly by higher margins and more efficient
capital allocation. The Bank´s Tier 1 Basel III Capital and
Regulatory Capital Adequacy Ratios stood at 15.3% and 13.2%,
respectively, well above international standards and regulatory
minimums.
- NII growth for the seventh consecutive quarter,
amounting to $49.4 million in 4Q22
(+23% QoQ; +99% YoY) stemming from the sustained margin expansion
and higher average credit volumes, reaching $148.0 million in FY22 (+71% YoY). Net Interest
Margin ("NIM") expanded to 2.11% in 4Q22 (+34 bps QoQ; +69 bps YoY)
and to 1.71% in FY22 (+39 bps YoY) supported by increases in both
credit spreads and market rates.
- Fees and Commissions totaled $19.8 million in FY22
(+8% YoY), driven by higher fees from both the letter of credit and
loan syndication businesses. Fees for the 4Q22 were $5.3 million (-16% QoQ; -15% YoY), down from 3Q22
due to the uneven nature of the Bank's loan syndication desk
activity, which offset the positive trend performance in letters of
credit's fees (+5% QoQ; +18% YoY).
- Efficiency Ratio improved to 30.8% in 4Q22
(-71 bps QoQ; -378 bps YoY) and 33.1% in FY22 (-525 bps YoY)
reflecting solid revenue growth, more than offsetting higher
operating expenses. With a focus on strengthening Bladex's
execution capabilities, expense increases mainly reflect a higher
salary base on new hires and a new variable compensation program,
and other expenses on strategic initiatives to improve processes
and technology.
- Credit Portfolio achieved $8,726 million at
year-end (-2% QoQ; +18% YoY).
-
- Commercial Portfolio reached $7,706
million (-1% QoQ; +18% YoY), on enhanced client base and
cross-sell, along with strong demand on the back of increased
economic and trade activity in the Region. The average Commercial
Portfolio balances increased 2% QoQ and +27% YoY in the 4Q22, and
+26% YoY in FY22.
- The Investment Portfolio stood at $1,020
million at year-end (-2% QoQ; +24% YoY), consisting of
credit investment portfolio and highly rated corporate debt
securities ('A-' or above) aimed to enhance liquidity yields.
- Healthy asset quality, having merely 0.4% in impaired
credits (Stage 3) for a total of $35
million at year-end 2022, with a total reserve coverage at 2
times. Provisions for credit losses amounted to $19.5 million in FY22, mainly on increased
individual reserves allocated to impaired credits, as well as the
increase of collective reserves (Stage 1) on Credit Portfolio
growth throughout the year. At year-end 2022, total allowance for
credit losses accounted for 0.8% of the total Credit
Portfolio.
- Solid liquidity position at 14% of total assets as
of December 31, 2022, or $1,269 million, consisting of cash and due from
banks and highly rated corporate debt securities ('A-' or above).
Bladex continues to benefit from a resilient deposit franchise and
a well-diversified funding base through ample access to global debt
and capital markets.
CEO's COMMENTS
Mr. Jorge Salas, Bladex's Chief
Executive Officer said: "We closed the year delivering strong
results. We managed to grow our loan book and increase our margins
while maintaining robust asset quality. Return on equity is
almost 300 basis points higher and net income increased 47% with
respect to 2021.
"This performance reflects the well-organized execution of the
strategic plan the team has been implementing for the last year,
aimed at enhancing Bladex´s profitability, long-term
sustainability, and stakeholder value creation. We see 2023
as a year of transition. The macroeconomic and financial outlook of
Latin America is far from being
settled and balanced. The space and timing for a turning
point in interest rates are big question marks. We expect
this to happen by the end of 2023. In this context, our focus
for 2023 will be more on profitability rather than growth."
RECENT EVENTS
- Quarterly dividend payment: The Board of Directors
approved a quarterly common dividend of $0.25 per share corresponding to 4Q22. The
cash dividend will be paid on March 28,
2023, to shareholders registered as of March 10, 2023.
Notes:
- Numbers and percentages set forth in this earnings release have
been rounded and accordingly may not total exactly.
- QoQ and YoY refer to quarter-on-quarter and year-on-year
variations, respectively.
Footnotes:
- Earnings per Share ("EPS") calculation is based on the average
number of shares outstanding during each period.
- ROE refers to return on average stockholders' equity which is
calculated based on unaudited daily average balances.
- ROA refers to return on average assets which is calculated
based on unaudited daily average balances.
- NIM refers to net interest margin which constitutes to Net
Interest Income ("NII") divided by the average balance of
interest-earning assets.
- NIS refers to net interest spread which constitutes the average
yield earned on interest-earning assets, less the average yield
paid on interest-bearing liabilities.
- Efficiency Ratio refers to consolidated operating expenses as a
percentage of total revenues.
- The Bank's "Credit Portfolio" includes gross loans at amortized
cost (or the "Loan Portfolio"), securities at FVOCI and at
amortized cost, gross of interest receivable and the allowance for
expected credit losses, loan commitments and financial guarantee
contracts, such as confirmed and stand-by letters of credit, and
guarantees covering commercial risk; and other assets consisting of
customers' liabilities under acceptances.
- The Bank's "Commercial Portfolio" includes gross loans at
amortized cost (or the "Loan Portfolio"), loan commitments and
financial guarantee contracts, such as issued and confirmed letters
of credit, stand-by letters of credit, guarantees covering
commercial risk and other assets consisting of customers'
liabilities under acceptances.
- Market capitalization corresponds to total outstanding common
shares multiplied by market close price at the end of each
corresponding period.
- Tier 1 Capital ratio is calculated according to Basel III
capital adequacy guidelines, and as a percentage of risk-weighted
assets. Risk-weighted assets are estimated based on Basel III
capital adequacy guidelines, utilizing internal-ratings based
approach or "IRB" for credit risk and standardized approach for
operational risk.
- As defined by the Superintendency of Banks of Panama through Rules No. 01-2015 and 03-2016,
based on Basel III standardized approach. The capital adequacy
ratio is defined as the ratio of capital funds to risk-weighted
assets, rated according to the asset's categories for credit risk.
In addition, risk-weighted assets consider calculations for market
risk and operating risk.
- Liquid assets refer to total cash and cash equivalents,
consisting of cash and due from banks and interest-bearing deposits
in banks, excluding pledged deposits and margin calls; as well as
highly rated corporate debt securities (above 'A-').
Liquidity ratio refers to liquid assets as a percentage of total
assets.
- Loan Portfolio refers to gross loans at amortized cost,
excluding interest receivable, the allowance for loan losses, and
unearned interest and deferred fees. Credit-impaired loans are also
commonly referred to as Non-Performing Loans or NPLs.
- Impaired Credits refers to Non-Performing Loans or NPLs and
non-performing securities at FVOCI and at amortized
cost.
- Total allowance for losses refers to allowance for loan losses
plus allowance for loan commitments and financial guarantee
contract losses and allowance for investment securities
losses.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements of
expected future developments within the meaning of the Private
Securities Litigation Reform Act of 1995 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements
can be identified by words such as: "anticipate", "intend", "plan",
"goal", "seek", "believe", "project", "estimate", "expect",
"strategy", "future", "likely", "may", "should", "will" and similar
references to future periods. The forward-looking statements
in this press release include the Bank's financial position, asset
quality and profitability, among others. 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
coronavirus (COVID-19) pandemic and geopolitical events; 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. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof. 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.
ABOUT BLADEX
Bladex, a multinational bank originally established by the
central banks of Latin-American and Caribbean countries, began operations in 1979
to promote foreign trade and economic integration in the Region.
The Bank, headquartered in Panama,
also has offices in Argentina,
Brazil, Colombia, Mexico, and the
United States of America, and a Representative License in
Peru, supporting the regional
expansion and servicing its customer base, which includes financial
institutions and corporations.
Bladex is listed on the NYSE in the
United States of America (NYSE: BLX), since 1992, and its
shareholders include: central banks and state-owned banks and
entities representing 23 Latin American countries; commercial banks
and financial institutions; and institutional and retail investors
through its public listing.
CONFERENCE CALL INFORMATION
There will be a conference call to discuss the Bank's quarterly
results on Tuesday, February 28, 2023
at 11:00 a.m. New York City time (Eastern Time). For
those interested in participating, please dial +1 888 686-3653 in
the United States or, if outside
the United States, +1 718
866-4614. Participants should use conference passcode 877068,
and dial in five minutes before the call is set to begin.
There will also be a live audio webcast of the conference at
http://www.bladex.com. The webcast presentation will be
available for viewing and downloads on http://www.bladex.com.
The conference call will become available for review one hour after
its conclusion.
For more information, please access http://www.bladex.com or
contact:
Mr. Carlos Daniel Raad
Chief Investor Relations Officer
Tel: +507 366-4925 ext. 7925
E-mail address: craad@bladex.com / ir@bladex.com
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SOURCE Banco Latinoamericano de Comercio Exterior, S.A.
(Bladex)