Bladex achieves record results

Rhea-AI Summary

Bladex (BLX) reports a record-breaking FY2023 with a net income of US$166.2 million, up 81% from the previous year. The annualized return on equity reached 14.7% due to consistent growth. Net interest income surged by 58% to US$233 million. The focus on fee income led to a 64% increase, totaling US$32.5 million. The Board of Directors doubled the quarterly dividend to 50 cents per share, emphasizing shareholder value. Bladex's commercial and loan portfolios grew significantly, with deposits reaching US$4,408 million, up 38% year over year.

Positive

• Record net income of US$166.2 million in FY2023, an 81% increase from the previous year.
• Annualized return on equity at 14.7% in FY2023 due to consistent growth.
• Net interest income rose by 58% to US$233 million.
• Fee income increased by 64% to US$32.5 million.
• Quarterly dividend doubled to 50 cents per share.
• Commercial portfolio grew by 30% since executing strategic plan.
• Loan portfolio increased by 9% year over year to US$9.5 billion.
• Deposits reached US$4,408 million, up 38% from the previous year.
• Commercial portfolio grew by 10% to US$8.521 billion in Q4 2023.
• Stable investment portfolio at US$1.011 billion, improving credit risk exposure.

Negative

• None.

PANAMA CITY, March 4, 2024 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or "the Bank"), announced the results achieved during the fourth quarter of 2023. The net income for the period was US$46.4 million, resulting in a record level of US$166.2 million in FY2023, up 81% from the previous year. The annualized return on equity stood at 15.5% in the fourth quarter and 14.7% in FY2023 due to consistent growth during the period and Bladex's increased presence in the region.

Net interest income amounted to US$233 million, representing a 58% increase year over year. The focus on fee income yielded remarkable results, with a 64% increase from 2022, reaching US$32.5 million.

In light of this new level of profitability, Bladex's Board of Directors decided to double the quarterly dividend from 25 cents to 50 cents per share, reaffirming the bank's commitment to generating shareholder value.

Jorge Salas, Bladex's president, noted that "2023 was an unprecedented year for us. Regardless of which financial indicator we review, last year was the best in our history".

In addition to having a record annualized return for the bank, Bladex's commercial portfolio has grown by 30% since we began executing our strategic plan a couple of years ago. Our loan portfolio grew 9% year over year. Today, our US$9.5 billion loan portfolio is not only at an alltime high, but more importantly, it is as diversified, healthy and well provisioned as it has ever been, with late payment levels close to zero".

Deposits in 2023 stood at US$4,408 million for the first time in Bladex's history, up 38% from the previous year. "This not only strengthens our financing structure, but also reflects the confidence and backing of a wide range of international investors", Salas noted.

The commercial portfolio grew around 10% to a record US$8.521 billion at the end of the fourth quarter of 2023 thanks to sustained cross-selling and the addition of new clients. The investment portfolio remained stable at US$1.011 dollars, which consists mainly of investment-grade debt securities held at amortized cost, further improving the diversification of credit risk exposure.

According to Jorge Salas, the outlook is positive. "We are very optimistic about the bank's growth potential in the coming years. Today, Bladex is sailing steadily towards achieving sustainable double-digit returns. I would like to express my sincere thanks to our highly qualified team, clients and investors. Together, we continue to build a success story. Your support and trust have committed us more than ever to continue promoting foreign trade and sustainable development in Latin America".

About Bladex

Bladex, one of the industry leaders in foreign trade banking in Latin America and the Caribbean. Headquartered in Panama, it is a multinational bank with a presence in several countries throughout the region. The bank was founded in 1979 to promote trade finance and economic integration in the region.

Bladex has been listed and traded on the New York Stock Exchange (NYSE: BLX) for more than three decades, as well as on the Mexican Stock Exchange for more than 10 years. Its presence in these organizations has allowed Bladex to have shareholders from central banks and state entities from 23 Latin American countries, as well as commercial banks, financial institutions, institutional investors and individuals.

In addition to its presence in Mexico, it has offices in Argentina, Brazil, Colombia and the United States of America, as well as a representative license in Peru, to serve and support regional development and satisfy the needs of its diverse client base, which includes financial institutions and corporations.

For more information, please access http://www.bladex.com or contact:

Carlos Daniel Raad – Chief Investor Relations Officer 
E-mail address:  craad@bladex.com / ir@bladex.com.  Tel.: (+507) 366-4925 ext. 7925     
Head Office Address: Torre V, Business Park, Ave. La Rotonda, Urb. Costa del Este,
Panama, Republic of Panama

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SOURCE Banco Latinoamericano de Comercio Exterior, S.A. (Bladex)

FAQ

What was Bladex's net income in FY2023?

Bladex reported a net income of US$166.2 million in FY2023, up 81% from the previous year.

How much did the annualized return on equity reach in FY2023?

The annualized return on equity reached 14.7% in FY2023 due to consistent growth.

What was the percentage increase in net interest income?

Net interest income rose by 58% to US$233 million.

What was the increase in fee income for Bladex?

Fee income increased by 64% to US$32.5 million.

How much was the quarterly dividend increased to per share?

The quarterly dividend was doubled to 50 cents per share.

How much did Bladex's commercial portfolio grow by since executing the strategic plan?

Bladex's commercial portfolio grew by 30% since executing the strategic plan.

What was the increase in Bladex's loan portfolio year over year?

Bladex's loan portfolio increased by 9% year over year to US$9.5 billion.

How much were the deposits in 2023 for Bladex?

Deposits reached US$4,408 million in 2023, up 38% from the previous year.

What was the growth percentage of the commercial portfolio in Q4 2023?

The commercial portfolio grew by 10% to US$8.521 billion in Q4 2023.

What was the value of Bladex's investment portfolio at the end of the fourth quarter of 2023?

The investment portfolio remained stable at US$1.011 billion.