• Commercial Portfolio: $9.7 billion, 5% growth quarter-on-quarter, 17% growth year-on-year.

• Deposits: $5.6 billion, 34% growth year-on-year.

• Net Income: $53 million for the quarter, 16% increase year-on-year.

• Return on Equity (ROE): 16.4% for the quarter.

• Total Assets: $11.4 billion, 13% growth year-on-year, 5% growth quarter-on-quarter.

• Net Interest Income: $66.6 million for the quarter, 10% increase year-on-year.

• Net Interest Margin (NIM): 2.55% for the quarter.

• Efficiency Ratio: 27% for the quarter.

• Fee Income: $10.5 million for the quarter, $32.5 million year-to-date, 45% increase year-on-year.

• Dividend: $0.50 per share quarterly dividend declared.

• Warning! GuruFocus has detected 4 Warning Sign with BLX.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Banco Latinoamericano de Comercio Exterior SA (NYSE:BLX) achieved a record net income of $53 million for the quarter, marking a 16% increase compared to the same period last year.

• The Commercial Portfolio reached $9.7 billion, representing a quarter-on-quarter growth of 5% and a year-on-year growth of 17%.

• Deposits reached a new record of $5.6 billion, growing 34% in the last 12 months, with corporate client deposits nearly doubling compared to last year.

• Noninterest income saw significant growth, with total fees for the first three quarters up 45% compared to the same period last year.

• The bank's efficiency ratio remained strong at 27%, in line with the guidance provided for the year, despite increased costs due to strategic investments.

Negative Points

• Syndication fees decreased slightly this quarter, although the bank remains confident in closing the year with record figures.

• The efficiency ratio rose slightly due to anticipated investments required by the second phase of the strategic plan.

• A $7 million loan was classified from stage two to stage three, representing an isolated Colombian exposure in the oil and gas supply chain sector.

• The bank faces a more competitive lending environment due to increased dollar liquidity and lower local interest rates in most countries.

• There is potential for spread compression in Brazil due to increased competition, particularly from international DCM.

Q & A Highlights

Q: Are you seeing lower spreads in loans specifically in Brazil, and should we expect spread compression in this region? Also, how might a potential Trump election impact trade volumes in Latin America and Bladex's commercial portfolio? A: (Jorge Salas Taurel, CEO) The US elections are significant for the region, affecting remittance flows, trade, and inflation. We are monitoring these impacts, especially in countries like Guatemala and Mexico. Our short-term business model allows us to navigate potential volatility. (Samuel Canineu, EVP - Commercial Banking) In Brazil, we see more competition, especially from international DCM, which pressures spreads. However, our growth is driven by a better product offering and capturing market share, not just market conditions.