Bladex Achieves Record Financial Results and Increases Dividend by 25%

Rhea-AI Summary

Bladex (NYSE: BLX) reported record financial results for Q4 and full-year 2024, with historic net income of $206 million, up 24% year-over-year. The bank's commercial loan portfolio grew 18% to over $10 billion, while maintaining near-zero non-performing loans.

Key highlights include:

• Deposits reached $5.4 billion (54% of total funding), with 23% year-end growth
• Record fee income of $44 million, up 37% from 2023
• Letter of credit fees increased 24%
• Syndication fees rose 38%, with transactions exceeding $2.5 billion
• ROE reached 16.2%, up 153 basis points from 2023
• Efficiency ratio of 26.5%
• 25% increase in quarterly dividend

The bank plans to launch a digital trade finance platform in H2 2025.

Positive

• Record net income of $206 million (+24% YoY)
• Commercial loan portfolio grew 18% to $10B+
• Fee income reached record $44M (+37% YoY)
• Deposits increased 23% to $5.4B
• Near-zero non-performing loans
• 25% increase in quarterly dividend
• ROE improved to 16.2% (+153 bps)

Negative

• None.

Insights

Financial Analyst

Bladex's record financial results highlight exceptional operational execution and effective balance sheet management. The $206 million net income represents a 24% year-over-year increase, translating to an impressive 16.2% ROE that surpasses many regional peers. Their commercial loan portfolio growth of 18% to over $10 billion while maintaining near-zero non-performing loans demonstrates disciplined risk management.

The 25% dividend increase is particularly significant as it signals strong board confidence in sustainable growth. With their industry-leading efficiency ratio of 26.5%, Bladex is converting revenue into profit at rates that outperform typical banking benchmarks. The deposit growth to $5.4 billion (23% increase) strengthens funding stability and potentially reduces reliance on more expensive wholesale funding sources.

Most compelling is the 37% growth in fee income to $44 million, diversifying beyond interest-sensitive revenue streams. This structural shift toward fee-generating activities (letters of credit up 24% and syndications up 38%) creates more resilient earnings that can persist through interest rate cycles. Their upcoming digital trade finance platform should further enhance margins by reducing transaction costs while expanding service capabilities.

Latin American Banking Specialist

Bladex's exceptional performance must be viewed through the lens of its unique position as a supranational trade finance bank serving Latin America. The 18% loan portfolio growth indicates Bladex is capturing increased regional trade flows despite mixed economic conditions across Latin American markets. Their near-zero non-performing loans is remarkable given the region's historical credit risks.

The bank's success in growing syndication activities to $2.5 billion demonstrates their ability to leverage their pan-regional network and deep market knowledge to structure complex multi-party financing deals. This positions them as the premier facilitator for intra-regional and global-to-LATAM trade financing, a strategically valuable niche.

Their deposit growth exceeding the 30% target suggests Bladex is increasingly viewed as a safe harbor for regional liquidity. The planned digital trade finance platform represents a necessary evolution to maintain competitive advantage in a region rapidly embracing fintech solutions. By digitalizing trade finance workflows, Bladex can further entrench itself in cross-border commercial ecosystems while simultaneously improving operational metrics. This positions them well against both traditional banks and emerging fintech competitors across Latin America's fragmented financial markets.

• Historic net income of $206 million, a 24% increase year-over-year
• 25% dividend increase, reflecting confidence in the bank's growth trajectory
• Solid growth in fee income, driven by higher activity in syndications and letters of credit

PANAMA CITY, Feb. 28, 2025 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) (NYSE: BLX) announced today its financial results for the fourth quarter and full year 2024, achieving historic levels of profitability and business growth.

The commercial loan portfolio grew by 18%, surpassing $10 billion for the first time. Portfolio quality remained at optimal levels, with non-performing loans near zero, reflecting disciplined risk management.

Deposits grew significantly, reaching $5.4 billion, representing 54% of total funding. This increase 23% in year-end balances and 33% in average balances for the year exceeded the bank's 30% growth target.

Fee income reached a record $44 million, up 37% from 2023, driven by a 24% increase in letter of credit fees and a 38% rise in syndication fees, with total transactions exceeding $2.5 billion. This growth in fee-based revenue reflects the success of the initial implementation phase of Bladex's 2022-2026 Strategic Plan, which aims to broaden and diversify income sources, ensuring a solid return on equity beyond interest rate cycles.

This performance was accompanied by 10% asset growth and efficient cost management, reflected in a 26.5% efficiency ratio.

As a result of this strong performance, Bladex achieved a record net income of $206 million, a 24% year-over-year increase, with ROE reaching 16.2%, up 153 basis points from 2023, underscoring the efficiency and profitability of its business model.

Recognizing these results, the Board of Directors approved a 25% increase in the quarterly dividend, reinforcing confidence in Bladex's growth trajectory and its commitment to delivering shareholder value.

"2024 has been a historic year for Bladex. We have exceeded our own expectations, achieving record profitability, and portfolio growth," said Jorge Salas, CEO of Bladex. "The dividend increase reflects our confidence in the bank's financial strength and ability to sustain profitable growth. Additionally, the expansion of our fee income is a clear sign that our diversification strategy is delivering results."

Looking ahead to 2025, Bladex will continue executing its strategic plan, including the launch of its digital trade finance platform in the second half of the year, further strengthening its product offering and operational efficiency.

Carlos Daniel Raad – Chief Investor Relations Officer
E-mail address:  ir@bladex.com
Tel: +507 210-8563

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

FAQ

What was Bladex's (BLX) net income for 2024?

Bladex achieved a record net income of $206 million in 2024, representing a 24% increase year-over-year.

How much did Bladex (BLX) increase its dividend in 2024?

Bladex approved a 25% increase in its quarterly dividend, reflecting confidence in the bank's growth trajectory.

What was Bladex's (BLX) loan portfolio growth in 2024?

Bladex's commercial loan portfolio grew by 18%, surpassing $10 billion for the first time.

What was Bladex's (BLX) ROE in 2024?

Bladex achieved a ROE of 16.2%, an increase of 153 basis points from 2023.

How much did Bladex's (BLX) fee income grow in 2024?

Fee income reached a record $44 million, up 37% from 2023, driven by increases in letter of credit and syndication fees.