Bladex announces 3Q24 Net Profit of $53.0 Million, or $1.44 per share; annualized return on equity of 16.4% in 3Q24
PANAMA CITY, Oct. 29, 2024 /PRNewswire/ -- Banco Latinoamericano de Comercio Exterior, S.A. (NYSE:BLX, ", Bladex", , or ", the Bank", )), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the Region, announced today its results for the Third Quarter ("3Q24") and nine months ("9M24") ended September 30, 2024.
The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
3Q24 & 9M24 Financial & Business Highlights
Strengthened Profitability, with Net Profit of $53.0 million in 3Q24 (+16% YoY) and $154.4 million in 9M24 (+29% YoY), fostered by higher total revenues (+8% YoY in 3Q24 and +20% YoY in 9M24).
Annualized Return on Equity ("ROE") improved to 16.4% for both the 3Q24 (+46 bps YoY) and 9M24 (+206 bps YoY), on the back of strong recurrent operating results.
Net Interest Income ("NII") increased to $66.6 million in 3Q24 (+10% YoY) and $192.3 million in 9M24 (+15% YoY), driven by 8 bp YoY increase in Net Interest Margin ("NIM") to 2.55% in 3Q24 and a 5 bps YoY increase to 2.49% in 9M24, resulting from higher lending volumes and spreads, new client on-boarding, cross selling efforts and efficient cost of funds management.
Fee income reached $10.5 million for 3Q24 (-6% YoY), amounting $32.5 million for 9M24 (+45% YoY), mostly driven by the continued positive trend in letter of credits fees. The uneven transaction-based nature of the Bank's loan syndication desk activity remained up for 9M24 (+65% YoY) despite lesser activity for 3Q24 (-46% YoY).
Efficiency Ratio stood at 27.1% for 3Q24, similarly to a year ago, and 25.6% for 9M24, a 1.5 p.p. YoY improvement on the back of higher total revenues, compensating the 13% YoY increase in 9M24 operating expenses.
New all-time high Credit Portfolio at $10,875 million as of September 30, 2024 (+18% YoY).
Commercial Portfolio EoP balances also reached a new record level of $9,673 million at the end of 3Q24 (+17% YoY), denoting a continued demand and business growth from new client onboarding and product cross-selling.
Investment Portfolio, mostly consisting of investment-grade securities held at amortized cost, further enhancing country and credit-risk exposure diversification and providing contingent liquidity funding, increased to $1,202 million (+20% YoY).
Healthy asset quality. Most of the credit portfolio (96%) continues to be low risk or Stage 1. At the end of 3Q24, impaired credits (Stage 3) reached $17 million or 0.2% of total Credit Portfolio, with a reserve coverage of 4.7x.
Heightened deposit base, reaching a new record level of $5,639 million at the end of 3Q24 (+34% YoY), representing 59% of the Bank's total funding sources. The Bank also counts on ample and constant access to interbank and debt capital markets.
Liquidity position at $1,708 million, or 15% of total assets as of September 30, 2024, mostly consisting of deposits placed with the Federal Reserve Bank of New York (75%).
The Bank's Tier 1 Basel III Capital and Regulatory Capital Adequacy Ratios stood at 16.0% and 13.7%, respectively, well above the minimum requirements and within the Bank's risk appetite.
Financial Snapshot
(US$ million, except percentages and per share amounts)
3Q24
2Q24
3Q23
9M24
9M23
Key Income Statement Highlights
Net Interest Income ("NII")
$66.6
$62.8
$60.5
$192.3
$167.6
Fees and commissions, net
$10.5
$12.5
$11.1
$32.5
$22.4
Gain (loss) on financial instruments, net
$0.3
($0.4)
$0.0
$0.1
($1.9)
Total revenues
$77.6
$75.0
$71.8
$225.2
$188.3
Provision for credit losses
($3.5)
($6.7)
($6.5)
($13.3)
($17.5)
Operating expenses
($21.0)
($18.2)
($19.5)
($57.6)
($51.0)
Profit for the period
$53.0
$50.1
$45.8
