UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2024

Commission File Number 1-11414

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.
(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.
(Translation of Registrant’s name into English)

Business Park Torre V, Ave. La Rotonda, Costa del Este
P.O. Box 0819-08730
Panama City, Republic of Panama
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 FOREIGN TRADE BANK OF LATIN AMERICA, INC.
 (Registrant)
  
Date: November 7, 2024By: /s/ Ana Graciela de Méndez
Name:Ana Graciela de Méndez
Title:Chief Financial Officer
1









        

Banco Latinoamericano
de Comercio Exterior, S.A.
and Subsidiaries




Unaudited condensed consolidated interim financial statements as of September 30, 2024, and for the three and nine months ended September 30, 2024 and 2023






















Banco Latinoamericano de Comercio Exterior, S.A.
and Subsidiaries









Contents

Unaudited condensed consolidated interim statement of financial position
Unaudited condensed consolidated interim statement of profit or loss
Unaudited condensed consolidated interim statement of comprehensive income
Unaudited condensed consolidated interim statement of changes in equity
Unaudited condensed consolidated interim statement of cash flows
Notes to the unaudited condensed consolidated interim financial statements



2




Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Unaudited condensed consolidated interim statements of financial position
September 30, 2024
(In thousands of US dollars)
September 30,December 31,
20242023
Notes(Unaudited)(Audit)
Assets
Cash and due from banks3,4,51,709,503 2,047,452 
Investment securities, net3,4,61,213,329 1,022,131 
Loans, net3,4,78,090,061 7,220,520 
Customers' liabilities under acceptances3,4292,542 261,428 
Derivative financial instruments - assets3,4,1071,487 157,267 
Equipment and leasehold improvements, net15,985 16,794 
Intangible assets, net3,086 2,605 
Other assets1116,150 15,595 
Total assets11,412,143 10,743,792 
Liabilities and Equity
Liabilities:
Demand deposits622,932 510,195 
Time deposits5,015,987 3,897,954 
3,4,125,638,919 4,408,149 
Interest payable52,973 42,876 
Total deposits5,691,892 4,451,025 
Securities sold under repurchase agreements3,4,13346,299 310,197 
Borrowings and debt, net3,4,143,571,404 4,351,988 
Interest payable40,040 49,217 
Lease liabilities3,1515,867 16,707 
Acceptances outstanding3,4292,542 261,428 
Derivative financial instruments - liabilities3,4,1090,837 40,613 
Allowance for losses on loan commitments and financial guarantee
  contract
3,47,403 5,059 
Other liabilities1646,039 53,734 
Total liabilities10,102,323 9,539,968 
Equity:
Common stock279,980 279,980 
Treasury stock(105,672)(110,174)
Additional paid-in capital in excess of value assigned to common stock122,472 122,046 
Capital reserves2295,210 95,210 
Regulatory reserves22145,117 136,019 
Retained earnings763,460 673,281 
Other comprehensive income9,253 7,462 
Total equity1,309,820 1,203,824 
Total liabilities and equity11,412,143 10,743,792 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
3



Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Unaudited condensed consolidated interim statement of profit or loss
For the three and nine months ended September 30, 2024 and 2023
(In thousands of US dollars, except earnings per share data)
Three months ended September 30,Nine months ended September 30,
Notes2024202320242023
Interest income:
Deposits22,271 23,173 72,939 56,574 
Investment securities13,082 9,391 36,340 22,353 
Loans163,329 149,869 478,348 406,387 
Total interest income19198,682 182,433 587,627 485,314 
Interest expense:
Deposits(79,370)(60,740)(225,912)(151,340)
Securities sold under repurchase agreements13(3,119)(2,847)(9,275)(7,412)
Borrowings and debt14(49,421)(58,160)(159,730)(158,510)
Lease liabilities15(142)(146)(436)(434)
Total interest expense19(132,052)(121,893)(395,353)(317,696)
Net interest income66,630 60,540 192,274 167,618 
Other income (expense):
Fees and commissions, net1810,490 11,109 32,495 22,428 
Gain (loss) on financial instruments, net9328 22 137 (1,911)
Other income, net135 106 305 197 
Total other income, net1910,953 11,237 32,937 20,714 
Total revenues77,583 71,777 225,211 188,332 
Provision for credit losses3,19(3,548)(6,488)(13,261)(17,510)
Operating expenses:
Salaries and other employee expenses(14,177)(14,183)(37,608)(33,782)
Depreciation of equipment and leasehold
  improvements
(614)(578)(1,799)(1,678)
Amortization of intangible assets(279)(217)(753)(594)
Other expenses(5,972)(4,558)(17,407)(14,995)
Total operating expenses19(21,042)(19,536)(57,567)(51,049)
Profit for the period52,993 45,753 154,383 119,773 
Per share data:
Basic earnings per share (in US dollars)171.44 1.25 4.20 3.28 
Weighted average basic shares (in thousands of shares)1736,787 36,531 36,724 36,462 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

4




Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Unaudited condensed consolidated interim statement of comprehensive income
For the three and nine months ended September 30, 2024
(In thousands of US dollars)
Three months ended September 30,Nine months ended September 30,
2024202320242023
Profit for the period52,993 45,753 154,383 119,773 
Other comprehensive income:
Items that are or may be reclassified subsequently to the consolidated statement of profit or loss:
Change in fair value on financial instruments, net of
  hedging
9,102 (4,806)656 (4,698)
Reclassification of gains (losses) on financial
  instruments to profit or loss
786 119 1,135 (458)
Other comprehensive income (loss)9,888 (4,687)1,791 (5,156)
Total comprehensive income for the period62,881 41,066 156,174 114,617 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.















5



Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Unaudited condensed consolidated interim statement of changes in equity
For the nine months ended September 30, 2024 and 2023
(In thousands of US dollars)
Common stockTreasury stockAdditional paid-in capital
in excess of value assigned
to common stock
Capital reservesRegulatory
reserves
Retained earningsOther comprehensive
income
Total equity
Balances at January 1, 2023279,980 (114,097)120,498 95,210 136,019 543,612 8,125 1,069,347 
Profit for the period— — — — — 119,773 — 119,773 
Other comprehensive income— — — — — — (5,156)(5,156)
Issuance of restricted stock— 1,148 (1,148)— — — — — 
Compensation cost - stock options and stock units plans— — 4,367 — — — — 4,367 
Exercised options and stock units vested— 2,775 (2,775)— — — — — 
Dividends declared— — — — — (27,354)— (27,354)
Balances at September 30, 2023279,980 (110,174)120,942 95,210 136,019 636,031 2,969 1,160,977 
Balances at January 1, 2024279,980 (110,174)122,046 95,210 136,019 673,281 7,462 — 1,203,824 
Profit for the period— — — — — 154,383 — 154,383 
Other comprehensive income— — — — — — 1,791 1,791 
Issuance of restricted stock— 1,038 (1,038)— — — — — 
Compensation cost - stock options and stock units plans— — 4,928 — — — — 4,928 
Exercised options and stock units vested— 3,464 (3,464)— — — — — 
Dynamic provision— — — — 9,098 (9,098)— — 
Dividends declared— — — — — (55,107)— (55,107)
Balances at September 30, 2024279,980 (105,672)120,735 95,210 136,019 737,958 (635)1,263,595 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.


6



Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Unaudited condensed consolidated interim statement of cash flows
For the nine months ended September 30, 2024
(In thousands of US dollars)
Notes20242023
Cash flows from operating activities
Profit for the period154,383 119,773 
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Depreciation of equipment and leasehold improvements1,799 1,678 
Amortization of intangible assets753 594 
Provision for credit losses313,261 17,510 
Net gain on sale of financial assets at FVOCI9(68)— 
Loss on sale of financial instruments at amortized cost9— 3,745 
Compensation cost - share-based payment4,928 4,366 
Net changes in hedging position and foreign currency(27,604)41,588 
Loss on disposal of equipment and leasehold improvements51 
Loss on derecognition of intangible assets— 20 
Realized gain on financial instruments at FVTPL9(51)— 
Interest income19(587,627)(485,314)
Interest expense19395,353 317,696 
Changes in operating assets and liabilities:
Pledged deposits(40,700)(49,846)
Loans(899,374)(122,691)
Other assets(235)(6,698)
Due to depositors1,230,768 1,016,201 
Other liabilities(7,890)6,190 
Cash flows provided by operating activities237,748 864,813 
Interest received567,660 465,433 
Interest paid(396,798)(293,129)
Net cash provided by operating activities408,610 1,037,117 
Cash flows from investing activities:
Acquisition of equipment and leasehold improvements(1,025)(687)
Acquisition of intangible assets(1,234)(975)
Proceeds from the sale of securities at amortized cost— 54,815 
Proceeds from the redemption of securities at amortized cost225,893 238,824 
Proceeds from the redemption of securities at FVOCI— 78,600 
Purchases of securities at FVOCI(86,449)— 
Purchases of securities at amortized cost(327,841)(370,129)
Net cash (used in) provided by investing activities(190,656)448 
Cash flows from financing activities:
Increase (decrease) in securities sold under repurchase agreements36,102 (104,878)
Net decrease in short-term borrowings and debt14(942,935)(609,090)
Proceeds from long-term borrowings and debt14891,930 355,432 
Payments of long-term borrowings and debt14(526,278)(194,524)
Advance of funds for debt repayment11— (102,892)
Payments of lease liabilities15(854)(782)
Dividends paid(54,568)(27,267)
Net cash used in financing activities(596,603)(684,001)
(Decrease) increase net in cash and cash equivalents(378,649)353,564 
Cash and cash equivalents at beginning of the period1,987,068 1,190,936 
Cash and cash equivalents at end of the period51,608,419 1,544,500 
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
7

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

1.Corporate information
Banco Latinoamericano de Comercio Exterior, S. A. (“Bladex Head Office” and together with its subsidiaries “Bladex” or the “Bank”), headquartered in Panama City, Republic of Panama, is a specialized multinational bank established to support the financing of foreign trade and economic integration in Latin America and the Caribbean (the “Region”). The Bank was the result of a proposal brought before the Assembly of Governors of Central Banks in the Region in May of 1975, which recommended the creation of a multinational organization to increase the foreign trade financing capacity of the Region. The Bank was organized in 1977, incorporated in 1978 as a corporation pursuant to the laws of the Republic of Panama, and initiated operations on January 2, 1979. Under a contract law signed in 1978 between the Republic of Panama and Bladex, the Bank was granted certain privileges by the Republic of Panama, including an exemption from payment of income taxes in Panama.
The Bank operates under a general banking license issued by the National Banking Commission of Panama, predecessor of the Superintendence of Banks of Panama (the “SBP”).
In the Republic of Panama, banks are regulated by the SBP through Executive Decree No. 52 of April 30, 2008, which adopts the unique text of Law Decree No. 9 of February 26, 1998, modified by Law Decree No. 2 of February 22, 2008. Banks are also regulated by resolutions and agreements issued by this entity. The main aspects of this law and its regulations include: the authorization of banking licenses, minimum capital and liquidity requirements, consolidated supervision, procedures for management of credit, liquidity and market risks, measures to prevent money laundering, the financing of terrorism and related illicit activities, and procedures for banking intervention and liquidation, among others.
Bladex Head Office’s subsidiaries are the following:
-    Bladex Holdings Inc. is a wholly owned subsidiary, incorporated under the laws of the State of Delaware, United States of America (USA), on May 30, 2000. Bladex Holdings Inc. has ownership in Bladex Representaçao Ltda.
-    Bladex Representaçao Ltda, incorporated under the laws of Brazil on January 7, 2000, acts as the Bank’s representative office in Brazil. Bladex Representaçao Ltda. is 99.999% owned by Bladex Head Office and the remaining 0.001% is owned by Bladex Holdings Inc.
-    Bladex Development Corp. was incorporated under the laws of the Republic of Panama on June 5, 2014. Bladex Development Corp. is 100% owned by Bladex Head Office.
Bladex Head Office has an agency in New York City, USA (the “New York Agency”), which began operations on March 27, 1989. The New York Agency is principally engaged in financing transactions related to international trade, mostly the confirmation and financing of letters of credit for customers in the Region. The New York Agency also has authorization to book transactions through an International Banking Facility (“IBF”).
The Bank has representative offices in Buenos Aires, Argentina; in Mexico City, Mexico; and in Bogota, Colombia, and has a representative license in Lima, Peru.
These condensed consolidated interim financial statements were authorized for issue by the Board of Directors on October 22, 2024.

2.Basis of preparation of the consolidated financial statements
These condensed consolidated interim financial statements of Banco Latinoamericano de Comercio Exterior, S. A. and its subsidiaries have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) issued by the International Accounting Standards Board ("IASB").

As all the disclosures required by IFRS for annual period consolidated financial statements are not included herein, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2023, contained in the Bank’s annual audited consolidated financial statements. The condensed consolidated interim statements of profit or loss, other comprehensive income, changes in equity and cash flows for the periods presented are not necessarily indicative of results expected for any future period.



8

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review

This note presents information about the Bank’s exposure to financial risks:

A. Credit risk

i.Credit quality analysis

The following tables set out information about the credit quality of financial assets measured at amortized cost, and debt instruments at FVOCI. Unless specifically indicated, for financial assets the amounts in the table represent the outstanding gross balances. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively.
Loans at amortized cost, outstanding balance:
September 30, 2024
PD RangesStage 1Stage 2Stage 3Total
Grades 1 - 40.05-0.413,117,400 — — 3,117,400 
Grades 5 - 60.42-3.814,152,075 339,709 — 4,491,784 
Grades 7 - 83.82-34.52368,005 75,999 6,933 450,937 
Grades 9 - 1034.53-100— — 10,107 10,107 
7,637,480 415,708 17,040 8,070,228 
Loss allowance(41,915)(17,515)(12,450)(71,880)
Total7,595,565 398,193 4,590 7,998,348 
December 31, 2023
PD RangesStage 1Stage 2Stage 3Total
Grades 1 - 40.03 - 0.742,893,562 — — 2,893,562 
Grades 5 - 60.75 - 3.803,680,969 237,878 — 3,918,847 
Grades 7 - 83.81 - 34.51303,445 69,606 — 373,051 
Grades 9 - 1034.52 - 100— — 10,107 10,107 
6,877,976 307,484 10,107 7,195,567 
Loss allowance(34,778)(17,734)(6,898)(59,410)
Total6,843,198 289,750 3,209 7,136,157 


















9

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)

Loan commitments, financial guarantees issued and customers’ liabilities under acceptances:
September 30, 2024
12-month PD
Ranges
Stage 1Stage 2Stage 3Total
Commitments and contingencies
Grades 1 - 40.05-0.41376,755 — — 376,755 
Grades 5 - 60.42-3.81679,576 1,405 — 680,981 
Grades 7 - 83.82-34.52243,622 8,850 — 252,472 
1,299,953 10,255 — 1,310,208 
Customers' liabilities under acceptances
Grades 1 - 40.05-0.41211,493 — — 211,493 
Grades 5 - 60.42-3.813,405 — — 3,405 
Grades 7 - 83.82-34.5277,644 — — 77,644 
292,542 — — 292,542 
1,592,495 10,255 — 1,602,750 
Loss allowance(7,139)(264)— (7,403)
Total1,585,356 9,991  1,595,347 
December 31, 2023
12-month PD
Ranges
Stage 1Stage 2Stage 3Total
Commitments and contingencies
Grades 1 - 40.03 - 0.74457,901 — — 457,901 
Grades 5 - 60.75 - 3.80416,786 24,996 — 441,782 
Grades 7 - 83.81 - 34.51160,473 3,550 — 164,023 
1,035,160 28,546 — 1,063,706 
Customers' liabilities under acceptances
Grades 1 - 40.03 - 0.74163,438 — — 163,438 
Grades 5 - 60.75 - 3.802,009 — — 2,009 
Grades 7 - 83.81 - 34.5195,981 — — 95,981 
261,428 — — 261,428 
1,296,588 28,546 — 1,325,134 
Loss allowance(3,905)(1,154)— — (5,059)
Total1,292,683 27,392  1,320,075 







10

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)
Securities at amortized cost:
September 30, 2024
12-month DP
Ranges
Stage 1Stage 2Stage 3Total
Grades 1 - 40.05-0.411,010,981 — — 1,010,981 
Grades 5 - 60.42-3.8171,658 19,253 — 90,911 
1,082,639 19,253 — 1,101,892 
Loss allowance(1,159)(364)— (1,523)
Total1,081,480 18,889  1,100,369 
December 31, 2023
12-month PD
Ranges
Stage 1Stage 2Stage 3Total
Grades 1 - 40.03 - 0.74913,524 — — 913,524 
Grades 5 - 60.75 - 3.8057,674 28,346 — 86,020 
971,198 28,346 — 999,544 
Loss allowance(1,230)(402)— (1,632)
Total969,968 27,944  997,912 
Securities at FVOCI:
September 30, 2024
12-month PD
Ranges
Stage 1Stage 2Stage 3Total
Grades 1 - 40.05-0.4199,727 — — 99,727 
99,727 — — 99,727 
Loss allowance(23)— — (23)
Total99,704   99,704 
December 31, 2023
12-month PD
Ranges
Stage 1Stage 2Stage 3Total
Grades 1 - 40.03 - 0.7411,824 — — 11,824 
11,824 — — 11,824 
Loss allowance(1)— — (1)
Total11,823   11,823 

11

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

The following table presents information of the current and past due balances of loans:

September 30,
2024
December 31,
2023
Current8,053,188 7,185,460 
Overdue (1)
17,040 10,107 
Total8,070,228 7,195,567 
(1) Overdue loans are classified in Stage 3.

The following table presents an analysis of counterparty credit exposures arising from derivative transactions. The Bank's derivative are generally collateralized by cash.
September 30, 2024
Notional value
USD
Derivative
financial
instruments -
fair value asset
Derivative
financial
instruments -
fair value
liabilities
Interest rate swaps1,204,495 31,428 (1,207)
Cross-currency swaps1,274,821 40,059 (89,630)
Total2,479,316 71,487 (90,837)
December 31, 2023
Notional value
USD
Derivative
financial
instruments -
fair value asset
Derivative
financial
instruments -
fair value
liabilities
Interest rate swaps987,394 11,358 (790)
Cross-currency swaps1,678,042 145,909 (39,823)
Total2,665,436 157,267 (40,613)






12

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

ii.Loss allowances

The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.
Loans at amortized cost:
Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 202334,778 17,734 6,898 59,410 
Transfer to lifetime expected credit losses(235)(1,238)1,473 — 
Net effect of changes in allowance for expected credit losses(580)2,856 2,944 5,220 
Financial instruments that have been derecognized during the period(20,844)(2,114)— (22,958)
New financial assets originated or purchased28,796 277 — 29,073 
Recoveries— — 1,135 1,135 
Allowance for expected credit losses as of September 30, 202441,915 17,515 12,450 71,880 

Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 202228,589 5,050 21,561 55,200 
Transfer to lifetime expected credit losses(752)752 — — 
Net effect of changes in allowance for expected credit losses(2,363)11,195 6,481 15,313 
Financial instruments that have been derecognized during the year(17,950)(879)— (18,829)
New financial assets originated or purchased27,254 1,616 — 28,870 
Write-offs— — (21,144)(21,144)
Allowance for expected credit losses as of December 31, 202334,778 17,734 6,898 59,410 







13

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Loan commitments, financial guarantee contracts and customers’ liabilities under acceptances:

The allowance for expected credit losses on loan commitments and financial guarantee contracts reflects the Bank’s management estimate of expected credit losses of customers’ liabilities under acceptances and contingent liabilities such as: confirmed letters of credit, stand-by letters of credit, guarantees, and credit commitments.

Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 20233,905 1,154  5,059 
Transfer to lifetime expected credit losses(98)98 — — 
Net effect of changes in reserve for expected credit losses(46)102 — 56 
Financial instruments that have been derecognized during the period(2,528)(1,090)— (3,618)
New instruments originated or purchased5,906 — — 5,906 
Allowance for expected credit losses as of September 30, 20247,139 264  7,403 
Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 20223,605 23  3,628 
Transfer to lifetime expected credit losses(24)24 — — 
Transfer to 12-month expected credit losses22 (22)— — 
Net effect of changes in reserve for expected credit losses(58)21 — (37)
Financial instruments that have been derecognized during the year(2,824)— — (2,824)
New instruments originated or purchased3,184 1,108 — 4,292 
Allowance for expected credit losses as of December 31, 20233,905 1,154  5,059 



14

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities at amortized cost:
Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 20231,230 402  1,632 
Transfer to lifetime expected credit losses(21)21 — — 
Net effect of changes in allowance for expected credit losses(77)179 (331)(229)
Financial instruments that have been derecognized during the year(317)(238)— (555)
New financial assets originated or purchased344 — — 344 
Recoveries— — 331 331 
Allowance for expected credit losses as of September 30, 20241,159 364  1,523 

Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 20222,170 1,779 4,002 7,951 
Transfer to lifetime expected credit losses(46)46 — — 
Net effect of changes in allowance for expected credit losses(58)547 1,252 1,741 
Financial instruments that have been derecognized during the year(1,074)(218)— (1,292)
New financial assets originated or purchased238 — — 238 
Write-offs— (1,752)(5,254)(7,006)
Allowance for expected credit losses as of December 31, 20231,230 402  1,632 

Securities at FVOCI:
Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 20231   1 
Net effect of changes in allowance for expected credit losses
New financial assets originated or purchased21 — — 21 
Allowance for expected credit losses as of September 30, 202423   23 







15

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Stage 1Stage 2Stage 3Total
Allowance for expected credit losses as of December 31, 202210   10 
Financial instruments that have been derecognized during the year(11)— — (11)
New financial assets originated or purchased— — 
Allowance for expected credit losses as of December 31, 20231   1 

The loss allowance for losses for securities at FVOCI as of September 30, 2024 and December 31, 2023 for $23 thousand and $1 thousand, respectively are included in Other comprehensive income.
The following table provides a reconciliation between:
Amounts shown in the previous tables reconciling opening and closing balances of loss allowance per class of financial instrument; and
The provision for credit losses’ line item in the condensed consolidated interim statement of profit or loss.

September 30, 2024LoansLoan commitments
and financial
guarantee contracts
SecuritiesTotal
At amortized costAt amortized costFVOCI
Net effect of changes in allowance for expected credit losses5,220 56 (229)5,048 
Financial instruments that have been derecognized during the period(22,958)(3,618)(555)— (27,131)
New financial assets originated or purchased29,073 5,906 344 21 35,344 
Total11,335 2,344 (440)22 13,261 

September 30, 2023LoansLoan commitments
and financial
guarantee contracts
SecuritiesTotal
At amortized costAt amortized costFVOCI
Net effect of changes in allowance for expected credit losses8,594 46 1,596 — 10,236 
Financial instruments that have been derecognized during the period(15,353)(2,752)(1,044)(10)(19,159)
New financial assets originated or purchased22,604 3,620 209 — 26,433 
Total15,845 914 761 (10)17,510 

16

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iii.Credit-impaired financial assets

Credit-impaired loans and advances are graded 8 to 10 in the Bank’s internal credit risk grading system.

The following table sets out a reconciliation of changes in the carrying amount of the allowance for credit losses for credit-impaired financial assets:

Loans at amortized cost:
September 30,
2024
December 31,
2023
Credit-impaired loans at beginning of period6,898 21,561 
Classified as credit-impaired during the period1,473 — 
Change in allowance for expected credit losses2,832 6,181 
Interest income112 300 
Write-offs— (21,144)
Recoveries1,135 — 
Credit-impaired loans at end of period12,450 6,898 
Securities at amortized cost:
September 30,
2024
December 31,
2023
Investments at amortized cost with credit impairment at beginning of period— 4,002 
Change in allowance for expected credit losses(331)1,249 
Interest income— 
Write-offs— (5,254)
Recoveries331 — 
Credit-impaired for investments at amortized cost at end of period  

17

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iv.Concentrations of credit risk

The Bank monitors concentrations of credit risk by sector, industry and country. An analysis of concentrations of credit risk from loans, loan commitments, financial guarantees and securities is as follows.

Concentration by sector and industry at amortized cost:
Loans at
amortized cost
Loan commitments,
financial guarantee contracts and acceptances outstanding
Securities at
amortized cost
September 30,
2024
December 31,
2023
September 30,
2024
December 31,
2023
September 30,
2024
December 31,
2023
Carrying amount - principal8,070,228 7,195,567 292,542 261,428 1,101,892 999,544 
Amount committed/guaranteed— — 1,310,208 1,063,706 — — 
Concentration by sector
Corporations:
Private3,961,584 3,192,357 817,840 727,379 640,522 582,877 
State-owned1,242,747 1,204,471 113,916 115,542 11,862 20,619 
Financial institutions:
Private2,368,348 2,248,150 126,504 97,381 340,636 311,870 
State-owned428,287 464,917 544,490 384,832 28,265 35,149 
Sovereign69,262 85,672 — — 80,607 49,029 
Total8,070,228 7,195,567 1,602,750 1,325,134 1,101,892 999,544 
Concentration by industry
Financial institutions2,796,635 2,713,067 670,995 482,213 385,050 351,463 
Manufacturing2,121,372 1,702,514 492,356 464,433 381,356 346,140 
Oil and petroleum derived products1,336,128 1,330,526 115,095 106,518 87,874 95,144 
Agricultural351,425 239,498 35,467 22,546 — — 
Services553,421 465,113 160,514 108,632 118,805 84,840 
Mining290,552 328,415 42,056 26,329 19,498 9,690 
Sovereign69,262 85,672 — — 44,329 49,029 
Other551,433 330,762 86,267 114,463 64,980 63,238 
Total8,070,228 7,195,567 1,602,750 1,325,134 1,101,892 999,544 

Concentration by sector and industry at fair value OCI:

Securities FVOCI
September 30,
2024
December 31,
2023
Carrying amount - principal99,727 11,824 
Concentration by sector
Financial institutions:
State-owned99,727 11,824 
Total99,727 11,824 
Concentration by industry
Financial institutions99,727 11,824 
Total99,727 11,824 
18

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Risk rating and concentration by country financial instruments at amortized cost:

Loans at
amortized cost
Commitments,
financial guarantee contracts and acceptances outstanding
Securities at
amortized cost
September 30,
2024
December 31,
2023
September 30,
2024
December 31,
2023
September 30,
2024
December 31,
2023
Carrying amount - principal8,070,228 7,195,567 292,542 261,428 1,101,892 999,544 
Amount committed/guaranteed— — 1,310,208 1,063,706 — — 
Concentration by country
Argentina89,649 52,264 49,794 — — — 
Australia— — — — 9,777 4,803 
Belgium17,631 14,223 — — 14,858 — 
Bolivia— — 3,550 4,270 — — 
Brazil1,153,640 1,008,633 212,135 83,932 23,930 31,009 
Canada17,256 22,599 25,723 24,996 35,310 38,508 
Chile438,947 454,885 40,783 16,423 27,594 79,495 
China15,000 15,000 — — — — 
Colombia1,028,887 938,897 75,630 67,545 14,923 23,837 
Costa Rica356,112 284,709 48,431 51,895 7,998 7,988 
Denmark1,149 — — — — — 
Dominican Republic822,134 637,199 158,727 157,986 — 4,705 
Ecuador198,266 190,628 276,323 259,597 — — 
El Salvador65,163 82,500 — — — — 
France78,036 27,454 49,980 96,249 9,935 — 
Germany— — 15,000 15,000 29,595 14,750 
Guatemala869,204 704,012 108,141 100,227 — — 
Honduras220,362 221,672 1,425 975 — — 
Ireland— — — — 14,280 14,976 
Israel— — — — — 4,788 
Italy— — — — 14,542 14,660 
Jamaica68,756 101,858 — — — — 
Japan10,031 12,037 — — 53,690 38,548 
Korea— — — — 14,266 1,839 
Luxembourg— 89,833 — — — — 
Mexico913,231 838,495 116,716 83,561 45,631 62,229 
Netherlands— — 19,601 800 — — 
Norway— — — — 9,781 9,838 
Panama364,259 374,364 34,660 29,301 70,486 33,977 
Paraguay182,362 186,426 250 230 — — 
Peru570,525 536,236 269,916 223,460 30,501 30,635 
Puerto Rico26,861 — 10,000 — — — 
Singapore262,807 145,807 25,302 7,057 — — 
Trinidad and Tobago120,496 132,783 18,000 — — — 
Sweden— — — — 13,550 — 
United States of America103,379 74,139 1,320 — 622,788 539,727 
United Kingdom36,404 37,314 — — 38,457 43,232 
Uruguay39,681 11,600 41,343 101,630 — — 
Multilateral— — — — — — 
Total8,070,228 7,195,567 1,602,750 1,325,134 1,101,892 999,544 
19

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Risk rating and concentration by country financial instruments at fair value OCI:

Securities at FVOCI
September 30,
2024
December 31,
2023
Carrying amount - principal99,727 11,824 
Concentration by country
Multilateral99,727 11,824 
Total99,727 11,824 

v.Offsetting financial assets and liabilities

The following tables include financial assets and liabilities that are offset in the condensed consolidated interim financial statement or subject to an enforceable master netting arrangement:

Derivative financial instruments – assets:
September 30, 2024
Gross
amounts of
assets
Gross amounts
offset in the
consolidated
statement of
financial
position
Net amount of
assets presented
in the
consolidated
statement of
financial
position
Gross amounts not offset in
the consolidated statement of
financial position
Net
amount
Financial
instruments
Cash collateral
received
Derivative financial instruments used for hedging71,487 — 71,487 — (33,250)38,237 
Total71,487  71,487  (33,250)38,237 

December 31, 2023
Gross
amounts of
assets
Gross amounts
offset in the
consolidated
statement of
financial
position
Net amount of
assets presented
in the
consolidated
statement of
financial
position
Gross amounts not offset in
the consolidated statement of
financial position
Net
amount
Financial
instruments
Cash collateral
received
Derivative financial instruments used for hedging157,267 — 157,267 — (152,111)5,156 
Total157,267  157,267 — (152,111)5,156 
20

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities sold under repurchase agreements and derivative financial instruments – liabilities:
September 30, 2024
Gross
amounts of
liabilities
Gross amounts
offset in the
consolidated
statement of
financial
position
Net amount of
assets presented
in the
consolidated
statement of
financial
position
Gross amounts
not offset in the consolidated
statement of
financial position
Net
amount
Financial
instruments
Cash collateral
received
Securities sold under repurchase agreements at amortized cost(346,299)— (346,299)371,088 1,851 26,640 
Derivative financial instruments used for hedging at FVTPL(90,837)— (90,837)— 72,633 (18,204)
Total(437,136) (437,136)371,088 74,484 8,436 

December 31, 2023
Gross
amounts of
liabilities
Gross amounts
offset in the
consolidated
statement of
financial
position
Net amount of
assets presented
in the
consolidated
statement of
financial
position
Gross amounts
not offset in the consolidated
statement of
financial position
Net
amount
Financial
instruments
Cash collateral
received
Securities sold under repurchase agreements at amortized cost(310,197)— (310,197)342,271 8,087 40,161 
Derivative financial instruments used for hedging at FVTPL(40,613)— (40,613)— 34,297 (6,316)
Total(350,810) (350,810)342,271 42,384 33,845 






21

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)
    
B.Liquidity risk

i.Exposure to liquidity risk

The key measure used by the Bank for managing liquidity risk is the ratio of net liquid assets to deposits from customers and funding with a a remaining tenor of 30 days. For this purpose, ‘net liquid assets’ include cash and cash equivalents which consist of deposits from banks and customers, as well as corporate debt securities with investment grade. The following table details the Bank's liquidity ratios:
September 30,
2024
December 31,
2023
At the end of the period196.57 %205.80 %
Period average192.12 %177.20 %
Maximum of the period335.28 %357.00 %
Minimun of the period107.20 %111.50 %
The following table includes the Bank’s liquid assets by country risk:
September 30, 2024December 31, 2023
(in millions of USD dollars)Cash and due from
banks
Securities FVOCITotalCash and due from
banks
Securities FVOCITotal
United State of America1,487 — 1,487 1,904 — 1,904 
Other O.E.C.D countries41 — 41 — — — 
Latin America— — 
Other countries— — — — 
Multilateral75 100 175 75 12 87 
Total1,608 100 1,708 1,987 12 1,999 
The following table includes the Bank’s demand deposits from customers and its ratio to total deposits from customers:
September 30,
2024
December 31,
2023
(in millions of USD dollars)
Demand and "overnight" deposits1,026748
Demand and "overnight" deposits to total deposits18.19 %17.00 %

The liquidity requirements resulting from the Bank’s demand deposits from customers is satisfied by the Bank’s liquid assets as follows:
September 30,
2024
December 31,
2023
(in millions of USD dollars)
Total liquid assets1,7081,999
Total assets to total liabilities30.29 %45.40 %
Total liquid assets in the Federal
   Reserve of the United States of America
74.76 %94.30 %

22

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

Even though the average term of the Bank’s assets exceeds the average term of its liabilities, the associated liquidity risk is diminished by the short-term nature of a significant portion of the loan portfolio, since the Bank is primarily engaged in financing foreign trade.

The following table includes the carrying amount for the Bank’s loans and securities short-term portfolio with maturity within one year based on their original contractual term along with its average remaining term:

September 30,
2024
December 31,
2023
(in millions of USD dollars)
Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year according to its original terms5,088 4,087 
Average term (days)197 197
The following table includes the carrying amount for the Bank’s loans and securities medium term portfolio with maturity over one year based on their original contractual terms along with their average remaining term:
September 30,
2024
December 31,
2023
(in millions of USD dollars)
Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms4,184 4,119 
Average term (days)14021381


























23

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

ii.Maturity analysis for financial liabilities and financial assets

The following table details the future undiscounted cash flows of financial assets and liabilities grouped by their remaining maturity with respect to the contractual maturity:
September 30, 2024
Up to 3
months
3 to 6 months6 months to 1
year
1 to 5 yearsMore than 5
years
Gross inflows
(outflows)
Carrying
amount
Assets
Cash and due from banks1,705,477 — 5,286 — — 1,710,763 1,709,503 
Securities, net44,793 84,980 132,328 1,050,635 50,901 1,363,637 1,213,329 
Loans, net2,699,688 1,639,245 1,906,064 2,324,366 213,908 8,783,271 8,090,061 
Derivative financial instruments - assets21,404 892 23,681 18,767 6,743 71,487 71,487 
Total4,471,362 1,725,117 2,067,359 3,393,768 271,552 11,929,158 11,084,380 
Liabilities
Deposits(4,307,905)(1,090,880)(305,424)(37,306)— (5,741,515)(5,691,892)
Securities sold under repurchase agreements(279,002)— — (68,958)— (347,960)(346,299)
Borrowings and debt(672,344)(263,550)(843,129)(1,699,943)(100,544)(3,579,510)(3,571,404)
Interest payable - Borrowings and debt(43,544)(40,205)(81,675)(213,129)(8,800)(387,353)(40,040)
Lease liabilities(284)(292)(594)(4,740)(9,957)(15,867)(15,867)
Derivative financial instruments - liabilities(4,427)(1,664)(329)(70,600)(13,817)(90,837)(90,837)
Total(5,307,506)(1,396,591)(1,231,151)(2,094,676)(133,118)(10,163,042)(9,756,339)
Subtotal net position(836,144)328,526 836,208 1,299,092 138,434 1,766,116 1,328,041 
Off-balance sheet contingencies
Confirmed letters of credit248,452 134,737 26,453 — — 409,642 
Stand-by letters of credit and guarantees94,550 186,147 198,820 42,610 — 522,127 
Loans and letter of credit commitments121,109 40,339 10,333 196,288 10,370 378,439 
Total464,111 361,223 235,606 238,898 10,370 1,310,208 
Total net position(1,300,255)(32,697)600,602 1,060,194 128,064 455,908 









24

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)            
December 31, 2023
Up to 3
months
3 to 6
months
6 months to 1
year
1 to 5 yearsMore than 5
years
Gross inflows
(outflows)
Carrying
amount
Assets
Cash and due from banks2,048,021 — — — — 2,048,021 2,047,452 
Securities, net10,992 89,836 110,816 886,944 32,117 1,130,705 1,022,131 
Loans, net1,935,474 1,775,280 1,524,298 2,580,310 243,491 8,058,853 7,220,520 
Derivative financial instruments - assets2,510 5,783 54,983 90,516 3,473 157,265 157,267 
Total3,996,997 1,870,899 1,690,097 3,557,770 279,081 11,394,844 10,447,370 
Liabilities
Deposits(3,270,253)(536,751)(606,002)(90,194)— (4,503,200)(4,451,025)
Securities sold under repurchase agreements(317,951)— — — — (317,951)(310,197)
Borrowings and debt(775,691)(675,928)(896,342)(1,963,189)(54,126)(4,365,276)(4,351,988)
Interest payable - Borrowings and debt(80,775)(70,386)(93,338)(204,431)(5,636)(454,566)(49,217)
Lease liabilities(284)(286)(572)(4,728)(10,837)(16,707)(16,707)
Derivative financial instruments - liabilities(17,188)(1,994)(7,849)(11,661)(2,034)(40,726)(40,613)
Total(4,462,142)(1,285,345)(1,604,103)(2,274,203)(72,633)(9,698,426)(9,219,747)
Subtotal net position(465,145)585,554 85,994 1,283,567 206,448 1,696,418 1,227,623 
Off-balance sheet contingencies
Confirmed letters of credit264,603 64,100 345 16,560 — 345,608 
Stand-by letters of credit and guarantees196,775 79,659 199,192 15,000 — 490,626 
Loans and letter of credit commitments20,000 39,497 37,546 130,430 — 227,472 
Total481,378 183,256 237,082 161,990  1,063,706 
Total net position(946,523)402,298 (151,088)1,121,577 206,448 632,712 








25

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

The amounts in the tables above have been compiled as follows:

Type of financial instrumentBasis on which amounts are compiled
Financial assets and liabilitiesUndiscounted cash flows, which include estimated interest payments.
Issued financial guarantee contracts, and loan commitmentsEarliest possible contractual maturity. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called.
Derivative financial assets and financial liabilities
Contractual undiscounted cash flows. The amounts shown are the gross nominal inflows and outflows for derivatives that simultaneously settle gross or net amounts.
Future undiscounted cash flow presented in the table above on some financial assets and financial liabilities vary materially from contractual cash flows. The principal difference is that the undiscounted future cash flows of floating rate assets and liabilities are calculated using projected market rates.

iii.Liquidity reserves

As part of the management of liquidity risk arising from financial liabilities, the Bank holds liquid assets comprising cash and cash equivalents.

The following table sets out the components of the Banks’s liquidity reserves:
September 30, 2024December 31, 2023
AmountFair valueAmountFair value
Balances with Federal Reserve of the United
States of America
1,276,957 1,276,957 1,884,204 1,884,204 
Cash and balances with other bank (1)
331,462 331,462 102,864 102,864 
Total Liquidity reserves1,608,419 1,608,419 1,987,068 1,987,068 
(1)Excludes pledged deposits.


iv.Financial assets available to support future funding

The following table sets out the Bank’s financial assets available to support future funding:
September 30, 2024December 31, 2023
GuaranteedAvailable as collateralGuaranteedAvailable as collateral
Cash and due from banks101,084 1,608,419 60,384 1,987,068 
Notional of investment securities563,058 672,689 400,825 619,533 
Loans at amortized cost— 8,070,228 — 7,195,567 
Total assets664,142 10,351,336 461,209 9,802,168 




26

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk

The Bank manages market risk by considering the consolidated financial situation of the Bank.

i.Interest rate risk
The table below details the Bank's exposure based on interest rate repricing/maturity date for the notional amount of the interest bearing financial assets and liabilities on interest-bearing financial assets and liabilities:
September 30, 2024
Up to 3
months
3 to 6
months
6 months
to
1 year
1 to 5
years
More than 5
years
Without interest
rate risk
Total
Assets
Cash and due from banks1,696,309 — 5,000 — — 8,194 1,709,503 
Securities43,871 83,440 126,988 914,326 32,994 — 1,201,619 
Loans4,601,420 1,885,905 1,187,664 334,758 60,481 — 8,070,228 
Total6,341,600  1,969,345  1,319,652  1,249,084  93,475  8,194 10,981,350 
Liabilities
Demand deposits and time deposits(4,369,115)(954,284)(287,556)(27,825)— (139)(5,638,919)
Securities sold under repurchase agreements(310,742)— (35,557)— — — (346,299)
Borrowings and debt(2,316,319)(360,792)(720,825)(173,468)— — (3,571,404)
Total(6,996,176) (1,315,076) (1,043,938) (201,293)   (139)(9,556,622)
Net effect of derivative financial instruments held for interest risk management(32,988)(1,635)22,974 (7,701)— — (19,350)
Total interest rate sensitivity(687,564)652,634 298,688 1,040,090 93,475 8,055 1,405,378 



27

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

December 31, 2023
Up to 3
months
3 to 6
months
6 months
to
1 year
1 to 5
years
More than 5
years
Without interest
rate risk
Total
Assets
Cash and due from banks2,044,103 — — — — 3,349 2,047,452 
Securities14,169 60,256 82,951 824,836 29,156 — 1,011,368 
Loans4,292,324 1,699,301 915,143 280,005 8,794 — 7,195,567 
Total6,350,596 1,759,557 998,094 1,104,841 37,950 3,349 10,254,387 
Liabilities
Demand deposits and time deposits(3,553,774)(442,338)(342,686)(59,029)— (10,322)(4,408,149)
Securities sold under repurchase agreements(310,197)— — — — — (310,197)
Borrowings and debt(2,653,379)(381,795)(483,731)(818,947)(14,136)— (4,351,988)
Total(6,517,350)(824,133)(826,417)(877,976)(14,136)(10,322)(9,070,334)
Net effect of derivative financial instruments held for interest risk management(3,485)3,790 47,134 78,855 1,439 — 127,733 
Total interest rate sensitivity(170,239)939,214 218,811 305,720 25,253 (6,973)1,311,786 

Interest rate sensitivity analysis affect reported equity in the following ways:
-    Retained earnings: increases or decreases in net interest income and in fair values of derivatives reported in profit or loss;
-    Fair value reserve: increases or decreases in fair values of financial assets at FVOCI reported directly in equity; and
-    Hedging reserve: increases or decreases in fair values of hedging instruments designated in qualifying cash flow hedge relationships.
This sensitivity provides an analysis of changes in interest rates, considering the previous year´s interest rate volatility.

Additionally, the Bank measures the sensitivity of the equity value (EVE) following the methodology described by the Basel Committee on Banking Supervision, which measures the interest rate risk embedded in the equity value, which for interest rate risk purposes is defined as the difference between the net present value of assets less the net present value of liabilities due, based on the impact of a change in interest rates on such present values.

The following table presents the sensitivity analysis performed for the Bank:
    
Change in
interest rate
Effect on
profit or loss
Effect on equityEffect on equity value (EVE)
September 30, 2024+50 bps(866)3,182 (17,874)
-50 bps648 (3,257)18,173 
December 31, 2023+50 bps1,669 3,881 (9,047)
-50 bps(1,786)(2,861)9,199 
28

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

ii.     Foreign exchange risk
The following table presents the maximum exposure amount in foreign currency of the Bank’s carrying amount of total assets and liabilities, except for hedging relationships
September 30, 2024
Brazilian
Real
European
Euro
Japanese
Yen
Colombian
Peso
Mexican
Peso
Other
Currencies
(1)
Total
Exchance rate5.59 1.07 160.82 4,149.38 18.31 
Assets
Cash and due from banks27 266 35 2,285 11 2,626 
Loans— 29,688 — — 267,938 — 297,626 
Total Assets27 29,954 2 35 270,223 11 300,252 
Liabilities
Borrowings and debt— (29,614)— — (269,799)— (299,413)
Total liabilities (29,614)  (269,799) (299,413)
Net currency position27 340 2 35 424 11 839 

December 31, 2023
Brazilian
Real
European EuroJapanese
Yen
Colombian
Peso
Mexican
Peso
Other
Currencies
(1)
Total
Exchance rate4.85 1.10 141.00 3,875.97 16.98 
Assets
Cash and due from banks10 387 45 35 1,314 14 1,805 
Loans— 30,360 — — 304,529 — 334,889 
Total Assets10 30,747 45 35 305,843 14 336,694 
Liabilities
Borrowings and debt— (30,360)— — (305,631)— (335,991)
Total liabilities (30,360)  (305,631) (335,991)
Net currency position10 387 45 35 212 14 703 
(1)It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Costa Rican colones and Peruvian soles.
.


29

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments

A.Recurring fair value measurements

Financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy are described below:
September 30, 2024
Level 1Level 2Level 3Total
Assets
Securities and other financial assets:
Securities at FVOCI - Corporate debt— 101,219 — 101,219 
Loans at FVOCI— — — — 
Total securities and other financial assets— 101,219 — 101,219 
Derivative financial instruments - assets:
Interest rate swaps— 31,428 — 31,428 
Cross-currency swaps— 40,059 — 40,059 
Total derivative financial instrument assets— 71,487 — 71,487 
Total assets at fair value 172,706  172,706 
Liabilities
Derivative financial instruments - liabilities:
Interest rate swaps— 1,207 — 1,207 
Cross-currency swaps— 89,630 — 89,630 
Total derivative financial instruments - liabilities— 90,837 — 90,837 
Total liabilities at fair value 90,837  90,837 
December 31, 2023
Level 1Level 2Level 3Total
Assets
Securities and other financial assets:
Securities at FVOCI - Corporate debt— 11,865 — 11,865 
Total securities and other financial assets— 11,865 — 11,865 
Derivative financial instruments - assets:
Interest rate swaps— 11,358 — 11,358 
Cross-currency swaps— 145,909 — 145,909 
Total derivative financial instrument assets— 157,267 — 157,267 
Total assets at fair value 169,132  169,132 
Liabilities
Derivative financial instruments - liabilities:
Interest rate swaps— 790 — 790 
Cross-currency swaps— 39,823 — 39,823 
Total derivative financial instruments - liabilities— 40,613 — 40,613 
Total liabilities at fair value 40,613  40,613 
30

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments (continued)

B.Non-recurring fair value measurements

The following table provides information on the carrying value and the estimated fair value of the Bank’s financial instruments that are not measured at fair value:
September 30, 2024
Carrying
amount
Fair
value
Level 1Level 2Level 3
Assets
Cash and deposits in banks1,709,503 1,709,503 — 1,709,503 — 
Securities at amortized cost (1)
1,112,110 1,121,773 — 1,121,773 — 
Loans at amortized cost (2)
8,090,061 8,301,428 — 8,301,428 — 
Customers' liabilities under acceptances292,542 292,542 — 292,542 — 
Liabilities
Deposits5,691,892 5,691,892 — 5,691,892 — 
Securities sold under repurchase agreements346,299 346,299 — 346,299 — 
Borrowings and debt, net3,571,404 3,626,857 — 3,626,857 — 
Acceptances outstanding292,542 292,542 — 292,542 — 
December 31, 2023
Carrying
amount
Fair
value
Level 1Level 2Level 3
Assets
Cash and deposits in banks2,047,452 2,047,452 — 2,047,452 — 
Securities at amortized cost (1)
1,010,266 997,341 — 997,341 — 
Loans at amortized cost, net (2)
7,220,520 7,267,429 — 7,267,429 — 
Customers' liabilities under acceptances261,428 261,428 — 261,428 — 
Liabilities
Deposits4,451,025 4,451,025 — 4,451,025 — 
Securities sold under repurchase agreements310,197 310,197 — 310,197 — 
Borrowings and debt, net4,351,988 4,357,271 — 4,357,271 — 
Acceptances outstanding261,428 261,428 — 261,428 — 
(1)As a September 30, 2024, securities at amortized cost is net of interest receivable of $11.7 million (2023: $12.4 million) and the allowance for expected credit losses of $1.5 million (2023: $1.6 million).
(2)As a September 30, 2024, loans at amortized cost is net of interest receivable of $118.5 million (2023: $109.1 million), the allowance for expected credit losses of $71.9 million (2023: $59.4 million) and unearned interest and deferred fees of $26.8 million (2023: $24.7 million).






31

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

5.Cash and due from banks

The following table presents the details of interest-bearing deposits in banks and restricted deposits:
September 30,
2024
December 31,
2023
Demand Deposits (1)
1,612,903 1,969,102 
Time deposits96,600 78,350 
Total cash and due from banks1,709,503 2,047,452 
Less time deposits with original maturity over 90 days and other restricted deposits (2)
101,084 60,384 
Total cash and cash equivalents1,608,419 1,987,068 

The following table presents the pledged and restricted deposits classified by country risk:

September 30,
2024
December 31,
2023
Canada— 5,342 
Chile20,000 — 
Germany21,913 5,775 
Japan10,410 14,820 
Panama1,600 — 
Switzerland— 13,747 
United States of America(2)
47,161 20,700 
Total101,084 60,384 

(1) Demand deposits includes $1,277 millions at Federal Reserve of United States of America.

(2) As a September 30, 2024 includes restricted deposit of $25.0 million (2023: $18.0 million) with the New York State Department of Financial Services under March 1994 legislation and margin call deposits collateralizing derivative financial instrument transactions.





















32

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

6.Investments securities

Securities are presented as follows:
September 30, 2024Amortized cost
FVOCI(1)
Total
Principal1,101,892 99,727 1,201,619 
Interest receivable11,741 1,492 13,233 
Loss allowance (1)
(1,523)— (1,523)
1,112,110 101,219 1,213,329 

December 31, 2023Amortized cost
FVOCI(1)
Total
Principal999,544 11,824 1,011,368 
Interest receivable12,354 41 12,395 
Loss allowance (1)
(1,632)— (1,632)
1,010,266 11,865 1,022,131 

(1)As of September 30, 2024 and December 31, 2023, the loss allowance for losses for securities at FVOCI for $23 thousand and $1 thousand, respectively are included in equity in the consolidated statement of financial position in the line Other comprehensive income.

Securities by contractual maturity are shown in the following table:
September 30, 2024Amortized costFVOCITotal
Due within 1 year224,225 30,075 254,300 
After 1 year but within 5 years844,673 69,652 914,325 
After 5 years but within 10 years32,994 — 32,994 
Balance - principal1,101,892 99,727 1,201,619 
December 31, 2023Amortized costFVOCITotal
Due within 1 year157,376 — 157,376 
After 1 year but within 5 years813,012 11,824 824,836 
After 5 years but within 10 years29,156 — 29,156 
Balance - principal999,544 11,824 1,011,368 

The following table includes the securities pledged to secure repurchase transactions (see note 13):
September 30,
2024
December 31,
2023
Securities pledged to secure repurchase transactions371,088 342,271 
Securities sold under repurchase agreements(346,299)(310,197)
As of December 31, 2023, sales were made for $63.5 million of investments at amortized cost classified as Stage 2 with a significant increase in their credit risk. These sales resulted in write-off against reserves of $7 million and losses on sale of $3.9 million attributable to market risk. These sales were made based on compliance with the Bank's strategy to manage the credit risk of its investment portfolio.


33

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

7.Loans

The following table presents the loan portfolio according to its classification and subsequent measurement:

September 30, 2024Amortized costFVOCIFVTPLTotal
Loans, outstanding balance8,070,228 — — 8,070,228 
Interest receivable118,488 — — 118,488 
Loss allowance(71,880)— — (71,880)
Unearned interest and deferred fees(26,775)— — (26,775)
Loans, net8,090,061   8,090,061 

December 31, 2023Amortized costFVOCIFVTPLTotal
Loans, outstanding balance7,195,567 — — 7,195,567 
Interest receivable109,082 — — 109,082 
Loss allowance(59,410)— — (59,410)
Unearned interest and deferred fees(24,719)— — (24,719)
Loans, net7,220,520   7,220,520 
The Bank sold financial instruments measured at FVTPL and FVOCI for $27 million and $20 million respectively, realizing a     gain of $51 thousand and $68 thousand respectively recognized in the line item gain (loss) on financial instruments, net.


The fixed and floating interest rate distribution of the loan portfolio is as follows:

September 30,
2024
December 31,
2023
Fixed interest rate4,878,583 3,828,485 
Floating interest rates3,191,645 3,367,082 
Total8,070,228 7,195,567 
As of September 30, 2024, 71.45% (2023:71.00%) of the loan portfolio at fixed interest rates has remaining maturities of less than 180 days. Interest rates on loans ranges from 2.80% to 15.64% (2023:1.95% to16.10%).
The following table details information relating to loans granted to class A and B shareholders:
September 30,
2024
December 31,
2023
Loans to class A and B shareholders574,500 397,300 
% Loans to class A and B shareholders over total loan portfolio%%
% Class A and B stockholders with loans over number of class A and B stockholders13 %10 %



34

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

8.Loan commitments and financial guarantee contracts

The Bank’s outstanding loan commitments and financial guarantee contracts are as follows:
September 30,
2024
December 31,
2023
Documentary letters of credit409,642 345,608 
Stand-by letters of credit and guarantees - commercial risk522,127 490,626 
Commitments loans364,561 227,472 
Commitments letters of credit13,878 — 
Total1,310,208 1,063,706 

The remaining maturity profile of the Bank’s outstanding loan commitments and financial guarantee contracts is as follows:

September 30,
2024
December 31,
2023
Up to 1 year1,060,940 901,716 
From 1 to 2 years135,991 84,581 
Over 2 to 5 years102,907 77,409 
More than 5 years10,370 — 
Total1,310,208 1,063,706 

    
9.Gain (loss) on financial instruments, net

The amounts that were recognized in profit or loss related to the results of financial instruments are detailed below:

Three months ended September 30,Nine months ended September 30,
2024202320242023
Gain (loss) on derivative financial instruments
and foreign currency exchange, net
198 (120)(87)
Realized gain on financial instruments
at FVTPL
51 720 51 1,921 
Loss on sale of financial instruments at amortized cost— (578)— (3,745)
Realized gain on financial instruments at FVOCI68 — 68 — 
Others11  11  
Total32822137(1,911)
35

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10. Derivative financial instruments

The following table details quantitative information on the notional amounts and carrying amounts of the derivative instruments used for hedging by type of risk hedged and type of hedge:
September 30, 2024
Notional
amount(2)
Carrying amount of hedging
instruments
Asset (1)
Liability (1)
Interest rate risk
Fair value hedges1,204,495 31,428 (1,207)
Interest rate and foreign exchange risk
Fair value hedges236,831 6,434 (823)
Cash flow hedges1,037,990 33,625 (88,807)
2,479,316 71,487 (90,837)
December 31, 2023
Notional
amount(2)
Carrying amount of hedging
instruments
Asset (1)
Liability (1)
Interest rate risk
Fair value hedges987,394 11,358 (790)
Interest rate and foreign exchange risk
Fair value hedges374,654 38,088 (14,290)
Cash flow hedges1,303,388 107,821 (25,533)
2,665,436 157,267 (40,613)
(1)Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.
(2)At September 30, 2024 the notional amounts of derivative financial instruments include $1,041.2 million ($639.64 million at December 31, 2023) of interest rate swaps and cross currency interest rate swaps, which were designated in aggregate exposure hedges hedging underlying assets totaling $455.9 million ($307.8 million at December 31, 2023).




36

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges

The following table details the notional amounts and carrying amounts of derivative instruments used in fair value hedges by type of risk and hedged item, along with the changes during the years used to determine and recognize the ineffectiveness of the hedge:
September 30, 2024
Notional amount
Carrying amount of
hedging instruments
Changes in fair
value used to
calculate hedge
ineffectiveness (2)
Ineffectiveness
recognized in
profit or loss (2)
Asset (1)
Liability (1)
Interest rate risk
Deposits265,000 9,962 (24)(411)(40)
Repurchase agreements68,985 1,038 — 665 (91)
Borrowings and debt870,510 20,428 (1,183)10,202 (344)
Interest rate and foreign exchange risk
Borrowings and debt236,831 6,434 (823)(26,796)630 
Total1,441,326 37,862 (2,030)(16,340)155 

December 31, 2023
Notional amount
Carrying amount of
hedging instruments
Changes in fair
value used to
calculate hedge
ineffectiveness (2)
Ineffectiveness
recognized in
profit or loss (2)
Asset (1)
Liability (1)
Interest rate risk
Loans10,000 — (519)(113)
Securities at amortized cost10,000 101 — (109)144 
Deposits
Borrowings and debt660,394 7,693 (271)5,152 176 
Interest rate and foreign exchange risk
Borrowings and debt374,654 38,088 (14,290)36,710 2,908 
Total1,362,048 49,446 (15,080)42,240 3,247 

(1)Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.
(2)Included in the consolidated statement of profit or loss under the line Gain (loss) on financial instruments, net.

37

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the notional amounts and carrying amounts of the fair value hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:

September 30, 2024
Carrying amount of
hedged items
Line in the consolidated
statement of financial
position that includes the
carrying amount of the
hedged items
Accumulated amount of
fair value hedge
adjustments included in
the carrying amount of the
hedged items
Changes in fair value of
the hedged items used
to calculate hedge
ineffectiveness(1)
AssetLiability
Interest rate risk
Deposits— (275,800)Demand Deposits(101)371 
Repurchase agreements— (70,559)(712)(756)
Borrowings and debt— (356,265)Borrowings and debt, net(1,186)(10,546)
Interest rate and foreign exchange risk
Borrowings and debt— (243,670)Borrowings and debt, net(17,670)27,426 
Total (946,294)(19,669)16,495 
December 31, 2023
Carrying amount of
hedged items
Line in the consolidated
statement of financial
position that includes the
carrying amount of the
hedged items
Accumulated amount of
fair value hedge
adjustments included in
the carrying amount of the
hedged items
Changes in fair value of
the hedged items used
to calculate hedge
ineffectiveness(1)
AssetLiability
Interest rate risk
Loans10,664 — Loans, net(136)120 
Securities at amortized cost10,055 — Securities, net26 253 
Borrowings and debt— (344,605)Borrowings and debt, net(1,626)(4,976)
Interest rate and foreign exchange risk
Borrowings and debt— (402,377)Borrowings and debt, net(21,737)(33,801)
Total20,719 (983,924)(24,061)(38,992)

(1)Included in the consolidated statement of profit or loss under the line Gain (loss) on financial instruments, net.



38

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the maturity of the notional amount for the derivative instruments used in fair value hedges:

September 30, 2024
Interest
rate
swaps
Cross currency swapsTotal
Less than 1 year336,263 84,647 420,910 
Over 1 to 2 years328,268 — 328,268 
Over 2 to 5 years437,309 142,059 579,368 
More than 5 years102,655 10,125 112,780 
Total1,204,495 236,831 1,441,326 
December 31, 2023
Interest
rate
swaps
Cross currency swapsTotal
Less than 1 year434,420 235,973 670,393 
Over 1 to 2 years50,263 — 50,263 
Over 2 to 5 years476,311 128,556 604,867 
More than 5 years26,400 10,125 36,525 
Total987,394 374,654 1,362,048 




























39

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the ineffectiveness recognized in profit or loss for the derivative instruments used in fair value hedges:

Three months ended September 30, 2024Nine months ended September 30, 2024
CurrentOverdueTotalCurrentOverdueTotal
Ineffectiveness recognized in profit or loss
Interest rate risk
Loans(3)(26)(29)— (26)(26)
Securities at amortized cost— — — — (82)(82)
Deposits(40)— (40)(40)(1)(41)
Repurchase agreements(86)— (86)(91)— (91)
Borrowings and debt(771)— (771)(344)(340)
Interest rate and foreign exchange risk
Loans(1)29 28 — 29 29 
Borrowings and debt721 722 630 72 702 
Total(180)4 (176)155 (4)151 
Three months ended September 30, 2023Nine months ended September 30, 2023
CurrentOverdueTotalCurrentOverdueTotal
Ineffectiveness recognized in profit or loss
Interest rate risk
Loans12 
Securities at amortized cost38 — 38 107 — 107 
Deposits(9)— (9)(7)— (7)
Borrowings and debt(59)— (59)— 
Interest rate and foreign exchange risk
Loans— — — — (26)(26)
Borrowings and debt591 — 591 1,296 — 1,296 
Total563 7 570 1,403 (19)1,384 













40

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedges

The following table details the notional amounts and carrying amounts of derivative instruments used in cash flow hedges by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:
September 30, 2024
Carrying amount of
hedging instruments
Change in fair
value used for
calculating
hedge
ineffectiveness
Changes in the
fair value of the
hedging
instruments
recognized in
OCI (2)
Ineffectiveness
recognized in
profit or loss
(3)
Amount
reclassified
from the hedge
reserve to profit
or loss (3)
Notional
amount
Asset (1)
Liability (1)
Interest rate and foreign exchange risk
Loans10,738 — (329)(379)(356)23 
Borrowings and debt1,027,252 33,625 (88,478)(139,566)(139,504)62 107 
Total1,037,990 33,625 (88,807)(139,945)(139,860)85 109 
December 31, 2023
Carrying amount of
hedging instruments
Change in fair
value used for
calculating
hedge
ineffectiveness
Changes in the
fair value of the
hedging
instruments
recognized in
OCI (2)
Ineffectiveness
recognized in
profit or loss
(3)
Amount
reclassified
from the hedge
reserve to profit
or loss (3)
Notional
amount
Asset (1)
Liability (1)
Interest rate and foreign exchange risk
Borrowings and debt1,303,388 107,821 (25,533)65,005 65,286 281 (682)
Foreign exchange risk
Deposits— — — — — — 57 
Borrowings and debt— — — — — — 142 
Total1,303,388 107,821 (25,533)65,005 65,286 281 (483)


(1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.
(2) Included in equity in the consolidated statement of financial position under the line Other comprehensive income (loss).
(3) Hedge ineffectiveness attributable to matured hedges included in the consolidated statement of profit or loss in the line Gain (loss) on financial instruments, net.
(4) Hedging reserve attributable to expired hedges reclassified to the consolidated statement of profit or loss in the line Gain (loss) on financial instruments, net.


41

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedges (continued)
The following table details the carrying amounts of the cash flow hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:

September 30, 2024
Carrying amount of
hedged items
Line in the
consolidated
statement of financial
position that includes
the carrying
amount of
the hedged items
Changes in the fair value
of the hedged items used
to calculate the hedge
ineffectiveness
Cash flow
hedge reserve
AssetLiability
Interest rate and foreign exchange risk
Loans11,298 — 379 27 
Borrowings and debt— (991,770)Borrowings and debt, net139,566 (8,076)
Total11,298 (991,770)139,945 (8,049)
December 31, 2023
Carrying amount of
hedged items
Line in the
consolidated
statement of financial
position that includes
the carrying
amount of
the hedged items
Changes in the fair value
of the hedged items used
to calculate the hedge
ineffectiveness
Cash flow
hedge reserve
AssetLiability
Interest rate and foreign exchange risk
Borrowings and debt— (1,398,323)Borrowings and debt, net(65,005)(7,458)
Total (1,398,323)(65,005)(7,458)






42

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedge (continued)

The following table details the maturity of the derivative instruments used in cash flow hedges:
September 30, 2024
Foreign
exchange
forward contracts
Interest
rate
swaps
Cross currency swapsTotal
Less than 1 year— — 372,148 372,148 
Over 1 to 2 years— — 315,069 315,069 
Over 2 to 5 years— — 248,118 248,118 
More than 5 years— — 102,655 102,655 
Total  1,037,990 1,037,990 
December 31, 2023
Foreign
exchange
forward contracts
Interest
rate
swaps
Cross currency swapsTotal
Less than 1 year— — 643,464 643,464 
Over 1 to 2 years— — 206,496 206,496 
Over 2 to 5 years— — 409,742 409,742 
More than 5 years  43,686 43,686 
Total  1,303,388 1,303,388 

The following table details the ineffectiveness recognized in profit or loss for the derivative instruments used in cash flow hedges:

Three months ended September 30, 2024Nine months ended September 30, 2024
CurrentOverdueTotalCurrentOverdueTotal
Ineffectiveness recognized in profit or loss
Interest rate and foreign exchange risk
Loans36 38 23 25 
Borrowings and debt53 94 147 62 107 169 
Total89 96 185 85 109 194 
Three months ended September 30, 2023Nine months ended September 30, 2023
CurrentOverdueTotalCurrentOverdueTotal
Ineffectiveness recognized in profit or loss
Interest rate and foreign exchange risk
Borrowings and debt(77)10 (67)249 (682)(433)
Total(57)22 (35)303 (535)(232)


43

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

11.Other assets

Following is a summary of other assets:
September 30,
2024
December 31,
2023
Accounts receivable financial instruments3,329 4,844 
Prepaid expenses2,027 2,174 
Prepaid fees and commissions534 451 
Interest receivable - deposits1,922 1,603 
IT projects under development2,916 1,802 
Improvement project under development1,030 396 
Severance fund2,398 2,169 
Other1,994 2,156 
Total16,150 15,595 

12. Deposits

The remaining and contractual maturity profile of the Bank's deposits, excluding interest payable, is as follows:

Remaining termOriginal contractual
September 30,
2024
December 31,
2023
September 30,
2024
December 31,
2023
Demand622,932 510,195 622,932 510,195 
Up to 1 month2,440,506 2,026,454 1,790,457 1,336,379 
From 1 month to 3 months1,197,629 704,765 767,861 758,728 
From 3 month to 6 months1,056,614 517,359 1,336,953 675,106 
From 6 month to 1 year288,382 570,033 952,261 892,221 
From 1 year to 2 years26,916 77,843 146,408 216,430 
From 2 years to 5 years5,940 1,500 22,047 19,090 
Total5,638,919 4,408,149 5,638,919 4,408,149 

The following table presents additional information regarding the Bank’s deposits:
September 30,
2024
December 31,
2023
Aggregate amount of $100,000 or more5,638,276 4,407,608 
Aggregate amount of deposits in the New York Agency1,668,262 1,250,524 

Three months ended September 30,Nine months ended September 30,
2024202320242023
Interest expense on deposits made in the New York Agency23,034 15,192 66,395 34,840 







44

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

13.Securities sold under repurchase agreements

The following table details the financing under repurchase agreement:
September 30,
2024
December 31,
2023
Financing transactions under repurchase agreements346,299 310,197 
Three months ended September 30,Nine months ended September 30,
2024202320242023
Interest expense on financing contracts under repurchase agreement3,119 2,847 9,275 7,412 

Financing contracts under repurchase agreements generate interest range from 5.06% to 5.65% (2023: 2.27% to 6.05%) with several maturities up to July 22, 2026.
14. Borrowings and debt

Some borrowing agreements include various events of default and covenants relating to minimum capital adequacy ratios, incurrence of additional liens, and asset sales, as well as other customary covenants, representations and warranties. As of September 30, 2024, the Bank was in compliance with all those covenants.

     Carrying amount of borrowings and debt is detailed as follows:
September 30, 2024
Short-TermLong-term
BorrowingsDebtBorrowingsDebtTotal
Principal775,199 835 824,035 1,980,948 3,581,017 
Transaction costs(16)(1)(4,217)(5,379)(9,613)
775,183 834 819,818 1,975,569 3,571,404 
December 31, 2023
Short-TermLong-term
BorrowingsDebtBorrowingsDebtTotal
Principal1,638,306 86,601 537,775 2,097,820 4,360,502 
Transaction costs(262)(40)(1,904)(6,308)(8,514)
1,638,044 86,561 535,871 2,091,512 4,351,988 









45

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Short-term borrowings and debt

The breakdown of short-term (original maturity of less than one year, excluding lease liabilities) borrowings and debt, along with contractual interest rates, is as follows:
September 30,
2024
December 31,
2023
Short-term borrowings:
At fixed interest rates607,033 732,336 
At floating interest rates168,166 905,970 
Principal775,199 1,638,306 
Less: Transaction costs(16)(262)
Total short-term borrowings, net775,183 1,638,044 
Short-term debt:
At fixed interest rates835 1,536 
At floating interest rates— 85,065 
Principal835 86,601 
Less: Transaction costs(1)(40)
Total short-term debt, net834 86,561 
Total short-term borrowings and debt776,017 1,724,605 
Range of fixed interest rates on borrowings and debt in U.S. dollars4.64% a 5.95%5.44% to 6.50%
Range of floating interest rates on borrowings in U.S. dollars5.15% a 5.47%6.08% to 6.33%
Range of fixed interest rates on borrowings in Mexican pesos11.22 %0.00 %
Range of floating interest rates on borrowings and debt in Mexican pesos11.28% a 11.34%11.77% to 12.65%
Range of fixed interest rates on borrowings in Euro4.3 %— %
Range of floating interest rates on borrowings in Euro4.2 %4.51% to 4.69%

The outstanding balances of short-term borrowings and debt by currency, excluding prepaid commissions, are as follows:

September 30,
2024
December 31,
2023
US dollar699,633 1,084,872 
Mexican peso46,787 576,527 
Euros29,614 63,508 
Carrying amount - principal776,034 1,724,907 
    
46

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Long-term borrowings and debt

The breakdown of long-term borrowings and debt (original maturity of more than one year), along with contractual interest rates, plus prepaid commissions are as follows:

September 30,
2024
December 31,
2023
Long-term borrowings:
At fixed interest rates with due dates August 202750,743 — 
At floating interest rates with due dates from March 2026 to June 2027773,292 537,775 
Principal824,035 537,775 
Less: Transaction costs(4,217)(1,904)
Total long-term borrowings, net819,818 535,871 
Long-term debt:
At fixed interest rates with due dates from October 2024 to November 20341,340,164 1,456,290 
At floating interest rates with due dates from November 2024 to August 2028640,784 641,530 
Principal1,980,948 2,097,820 
Less: Transaction costs(5,379)(6,308)
Total long-term debt, net1,975,569 2,091,512 
Total long-term borrowings and debt, net2,795,387 2,627,383 
Range of fixed interest rates on borrowings and debt in U.S. dollars2.38% a 6.15%1.35% a 6.15%
Range of floating interest rates on borrowings and debt in U.S. dollars5.44% a 6.83%6.32% a 7.31%
Range of fixed interest rates on borrowings and debt in Mexican pesos6.5% a 10.78%6.5% a 10.78%
Range of floating interest rates on borrowings and debt in Mexican pesos11.14% a 11.49%11.70% a 11.95%
Range of fixed interest rates on debt in Japanese yens0.73% a 1.35%0.4% a 1.35%
Range of fixed interest rates on debt in Euros0.9 %0.90% a 3.75%
Range of fixed interest rates on debt in Australian dollars6.81 %1.41% a 6.81%
Range of fixed interest rates on debt in Sterling pounds1.50 %1.50 %
Range of fixed interest rates on debt in Swiss francs0.35 %0.35 %
Range of fixed interest rates on debt in Peruvian sol7.00 %0.00 %
47

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Long-term borrowings and debt (continued)

The outstanding balances of long-term borrowings and debt by currency, excluding prepaid commissions, are as follows:

September 30,
2024
December 31,
2023
US dollar1,365,270 1,149,021 
Mexican peso1,256,243 1,241,023 
Japanese yen97,399 113,642 
Euro33,399 88,018 
Peruvian sol25,388 — 
Swiss franc11,818 11,889 
Australian dollar10,519 27,286 
Sterling pound4,947 4,716 
Carrying amount - principal2,804,983 2,635,595 

Future payments of long-term borrowings and debt outstanding as of September 30, 2024, are as follows:

Outstanding
2024336,712 
2025672,342 
2026631,332 
2027890,379 
2028100,299 
2029163,400 
203410,519 
Carrying amount - principal2,804,983 

The following table presents the reconciliation of movements of borrowings and debt arising from financing activities, as presented in the condensed consolidated interim statement of cash flows:

20242023
Balance as of January 1,4,351,988 4,416,511 
Net decrease in short-term borrowings and debt(942,934)(609,090)
Proceeds from long-term borrowings and debt891,930 355,432 
Payments of long-term borrowings and debt(526,278)(194,524)
Change in foreign currency rates(208,484)89,752 
Fair value adjustment due to hedge accounting relationship4,656 (8,025)
Other adjustments526 1,360 
Balance as of September 30,3,571,404 4,051,416 
The reconciliation of the movements of the equity accounts that are part of the financing activities are presented in the condensed consolidated interim statement of changes in equity.




48

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

15. Lease liabilities

Maturity analysis of contractual undiscounted cash flows of the lease liabilities is detailed below:
September 30,
2024
December 31,
2023
Due within 1 year1,711 1,717 
After 1 year but within 5 years6,653 6,540 
After 5 years but within 10 years10,989 12,368 
Total undiscounted lease liabilities19,353 20,625 
Short-term1,171 1,143 
Long-term14,696 15,564 
Lease liabilities included in the condensed consolidated interim statement of
financial position
15,867 16,707 
Amounts recognized in the condensed consolidated interim statement of cash flows:
September 30,
20242023
Payments of lease liabilities854 782 
Amounts recognized in condensed consolidated interim statement of profit or loss:
Three months ended September 30,Nine months ended September 30,
2024202320242023
Interest on lease liabilities(142)(146)(436)(434)


16. Other liabilities

Following is a summary of other liabilities:
September 30,
2024
December 31,
2023
Accruals and other accumulated expenses27,763 24,120 
Funds received for debt repayment— 14,735 
Accounts payable4,796 5,143 
Unearned commissions8,773 9,652 
Other4,707 84 
Total46,039 53,734 




51

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

17. Earnings per share

The following table presents a reconciliation of profit and share data used in the basic earnings per share (“EPS”) computations for the dates indicated:

Three months ended September 30,Nine months ended September 30,
2024202320242023
(Thousands of U.S. dollars)
Profit for the period52,993 45,753 154,383 119,773 
(U.S. dollars)
Basic earnings per share1.44 1.25 4.20 3.28 
(Thousands of shares)
Weighted average of common shares outstanding applicable to basic EPS36,787 36,531 36,724 36,462 


18.Fee and commission income

Fee and commission income from contracts with customers broken down by main types of services, are detailed as follows:

Three months ended September 30,Nine months ended September 30,
2024202320242023
Structuring services1,473 2,740 6,494 3,924 
Letters of credit and guarantees7,072 6,333 19,602 15,593 
Commitments of credit2,145 2,268 6,126 3,512 
Fees and commission income86 — 956 — 
Total fee and commission income10,776 11,341 33,178 23,029 
Fess and commission expense(286)(232)(683)(601)
Total10,490 11,109 32,495 22,428 
The following table provides information on the ordinary income that is expected to be recognized on the existing contracts:

September 30,
2024
Up to 1 year4,473 
From 1 to 2 years2,164 
More than 2 years232 
Total6,869 




50

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

19.Business segment information

        The following table provides certain information regarding the Bank’s operations by segment:

Three months ended September 30, 2024Nine months ended September 30, 2024
CommercialTreasuryTotalCommercialTreasuryTotal
Interest income163,329 35,353 198,682 478,348 109,279 587,627 
Interest expense(114)(131,938)(132,052)(349)(395,004)(395,353)
Inter-segment net interest income(103,974)103,974 — (306,454)306,454 — 
Net interest income59,241 7,389 66,630 171,545 20,729 192,274 
Other income (expense), net10,817 136 10,953 33,268 (331)32,937 
Total revenues70,058 7,525 77,583 204,813 20,398 225,211 
Provision for credit losses(3,365)(183)(3,548)(13,679)418 (13,261)
Operating expenses(16,934)(4,108)(21,042)(46,173)(11,394)(57,567)
Segment profit49,759 3,234 52,993 144,961 9,422 154,383 
Segment assets8,399,113 2,998,801 11,397,914 
Segment liabilities312,640 9,743,644 10,056,284 


Three months ended September 30, 2023Nine months ended September 30, 2023
CommercialTreasuryTotalCommercialTreasuryTotal
Interest income149,869 32,564 182,433 406,387 78,927 485,314 
Interest expense(117)(121,776)(121,893)(347)(317,349)(317,696)
Inter-segment net interest income(97,351)97,351 — (260,592)260,592 — 
Net interest income52,401 8,139 60,540 145,448 22,170 167,618 
Other income (expense), net11,399 (162)11,237 23,120 (2,406)20,714 
Total income63,800 7,977 71,777 168,568 19,764 188,332 
Provision for credit losses(6,506)18 (6,488)(16,760)(750)(17,510)
Operating expenses(16,081)(3,455)(19,536)(40,213)(10,836)(51,049)
Segment profit41,213 4,540 45,753 111,595 8,178 119,773 
Segment assets7,210,518 2,767,831 9,978,349 
Segment liabilities283,714 8,616,813 8,900,527 

51

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

19.Business segment information (continued)

The following table shows the reconciliation of information by business segments:
Three months ended September 30,Nine months ended September 30,
2024202320242023
Profit for the period52,993 45,753 154,383 119,773 
Assets:
Assets from reportable segments11,397,914 9,978,349 
Other assets - unallocated14,229 116,241 
Total11,412,143 10,094,590 
Liabilities:
Liabilities from reportable segments10,056,284 8,900,527 
Other liabilities - unallocated46,039 33,086 
Total10,102,323 8,933,613 

20.Related party transactions

The detail of the assets and liabilities with related private corporations and financial institutions is as follows:

September 30,
2024
December 31,
2023
Assets:
Demand deposits2,182 2,263 
Loans, net157,526 61,440 
Securities at amortized cost20,900 14,373 
Total180,608 78,076 
Liabilities:
Time deposits594,091 319,344 
Contingencies:
Stand-by letters of credit150 150 


52

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

20.Related party transactions (continued)

The detail of income and expenses with related parties is as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
Interest income:
Loans2,438 1,133 7,592 3,143 
Securities at amortized cost195 109 582 220 
Total2,633 1,242 8,174 3,363 
Interest expense:
Deposits(9,184)(3,682)(27,138)(8,409)
Net interest income (expenses)(6,551)(2,440)(18,964)(5,046)
Other income (expense):
Fees and commissions, net— 279 536 
Net income from related parties(6,551)(2,161)(18,963)(4,510)

The total compensation paid to directors and the executives as representatives of the Bank amounted to:

Three months ended September 30,Nine months ended September 30,
2024202320242023
Expenses:
Compensation costs to directors579 461 1,440 1,240 
Compensation costs to executives1,737 1,471 9,343 6,795 
Compensation costs of Bank´s directors and executives include annual cash retainers and the cost of granted restricted stock and restricted stock units, as detailed in the Stock Incentive Plan.

21.Litigation
Bladex is not engaged in any litigation that is significant to the Bank’s business or, to the best of the knowledge of Bank’s management, that is likely to have an adverse effect on its business, consolidated financial position or consolidated financial performance.








53

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22. Applicable laws and regulations

Liquidity index

Rule No. 2-2018 issued by the Superintendence of Banks of Panama (SBP) establishes, as of September 30, 2024, and December 31, 2023, the minimum LCR to be reported to the SBP was 100%. The Bank´s LCR as of September 30, 2024, and December 31, 2023 was 196.6% and 205.8%, respectively.

Rule No. 4-2008 issued by the SBP, establishes that every general license or international license bank must always maintain, a minimum balance of liquid assets equivalent to 30% of the gross total of its deposits in the Republic of Panama or overseas up to 186 days, counted from the reporting date.

The liquidity index reported by the Bank to the regulator as of September 30, 2024 and December 31, 2023 was 48.7% and 93.4%, respectively.

Capital adequacy

The Banking Law in the Republic of Panama and Rules No. 01-2015, 03-2016 and 05-2023. The information corresponding to the total capital adequacy index is as follows:
September 30,
2024
December 31, 2023
Capital funds1,311,6701,206,753
Risk-weighted assets9,572,3718,898,408
Capital adequacy index13.7%13.6%
    

Leverage ratio

The table below presents the Bank´s leverage ratio in compliance with Article No.17 of Rule No. 1-2015:

September 30,
2024
December 31, 2023
Ordinary capital1,166,5531,070,734
Non-risk-weighted assets11,712,976 10,994,085 
Leverage ratio10.0%9.7%



54

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)

Specific provisions

Based on the classification of risks, collateral and in compliance with SBP Rule No. 4-2013, the Bank classified the loan portfolio as follows:
September 30, 2024
NormalSpecial mentionSubstandardDoubtfulUnrecoverableTotal
Loans at amortized cost
Corporations5,138,165 49,126 6,933 — 10,107 5,204,331 
Financial institutions:
Private2,368,348 — — — — 2,368,348 
State-owned428,287 — — — — 428,287 
2,796,635 — — — — 2,796,635 
Sovereign69,262 — — — — 69,262 
Total8,004,062 49,126 6,933  10,107 8,070,228 
Specific provision 9,825 3,466  5,592 18,883 
Allowance for loan
losses under IFRS (1):
47,853 11,577 5,444  7,006 71,880 

December 31, 2023
NormalSpecial mentionSubstandardDoubtfulUnrecoverableTotal
Loans at amortized cost
Corporations4,354,378 32,342 — — 10,107 4,396,827 
Financial institutions:
Private2,248,150 — — — — 2,248,150 
State-owned464,918 — — — — 464,918 
2,713,068 — — — — 2,713,068 
Sovereign85,672 — — — — 85,672 
Total loans7,153,118 32,342   10,107 7,195,567 
Specific provision 6,470   5,652 12,122 
Allowance for loan
losses under IFRS (1):
45,958 6,554   6,898 59,410 
(1) As of September 30, 2024, and December 31, 2023, there is no excess in the specific provision calculated in accordance with Rule No. 8-2014 of the SBP, over the provision calculated in accordance with IFRS.

As of September 30, 2024, and December 31, 2023, the restructured loans are for $63.6 million and $40.5 million respectively.

55

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)
Below is the classification of the loan portfolio by maturity profile based on Rule No. 4-2013 and modified by Rule No. 8-2014:
September 30, 2024
Loans at amortized costCurrentPast dueDelinquentTotal
Corporations5,187,291— 17,040 5,204,331 
Financial institutions:
Private2,368,348— — 2,368,348 
State-owned428,287— — 428,287 
2,796,635— — 2,796,635 
Sovereign69,262— — 69,262 
Total8,053,188  17,040 8,070,228 
December 31, 2023
Loans at amortized costCurrentPast dueDelinquentTotal
Corporations4,386,720 — 10,107 4,396,827 
Financial institutions:
Private2,248,150 — — 2,248,150 
State-owned464,918 — — 464,918 
2,713,068 — — 2,713,068 
Sovereign85,672 — — 85,672 
Total7,185,460  10,107 7,195,567 
In accordance with Rule No. 4-2013, as amended by Rule No. 8-2014, non-accruing loans are presented by category as follows:    
September 30, 2024
NormalSpecial mentionSubstandardDoubtfulUnrecoverableTotal
Loans at amortized cost
Impaired loans— — 6,933— 10,107 17,040 
Total— — 6,933 — 10,107 17,040 
December 31, 2023
NormalSpecial mentionSubstandardDoubtfulUnrecoverableTotal
Loans at amortized cost
Impaired loans— — — 10,107 10,107 
Total— — — — 10,107 10,107 

September 30,
2024
December 31,
2023
Non-accruing loans:
Private corporations17,040 10,107 
Interest that would be reversed if the loans had been classified as non-accruing loans441 328 
As of September 30, 2024, and December 31, 2023, there was no interest income collected on loans in non-accrual status.

56

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries
Notes to the unaudited condensed consolidated interim financial statements
(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)

Credit risk coverage - dynamic provision

As of September 30, 2024, and December 31, 2023, the total amount of the dynamic provision calculated according to the guidelines of Rule No. 4-2013 of the SBP is $145 million and $136 million respectively, appropriated from retained earnings for purposes of compliance with local regulatory requirements. This allocation is restricted for dividend distribution purposes.

Capital reserve
In addition to capital reserves required by regulations, the Bank maintains a capital reserve of $95.2 million, which was voluntarily established. Pursuant to Article No. 69 of the Banking Law, reduction of capital reserves requires prior approval of SBP


23.Subsequent events

The Bank announced a quarterly cash dividend of $0.50 US dollar cents per share corresponding to the third quarter of 2024. The cash dividend was approved by the Board of Directors on October 22, 2024 and it was payable on November 26, 2024 to the Bank’s stockholders as of November 8, 2024 record date.


    
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