Banco Latinoamericano de Comercio Exterior S A : Unaudited Condensed consolidated interim financial statements as of Mar 31, 2025 0

Published: 2025-05-14 11:23:07 ET BLX

Published on 05/14/2025 at 11:23

Unaudited condensed consolidated interim financial statements as of March 31, 2025, and for the three months ended March 31, 2025 and 2024

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

(In thousands of US dollars)

Assets

Cash and due from banks

3,4,5

1,898,678

1,965,145

Investment securities

3,4,6

1,276,167

1,201,930

Loans

3,4,7

8,709,983

8,383,829

Customers' liabilities under acceptances

3,4

437,094

245,065

Trading derivative financial instruments - assets

3,4,10

Hedging derivative financial instruments - assets

3,4,10

32,492

22,315

Equipment, leases and leasehold improvements, net

19,233

19,676

Intangibles assets

3,425

3,663

Other assets

17,712

17,050

Total assets

12,394,857

11,858,673

Liabilities and Equity

Liabilities: Deposits:

Demand deposits

542,926

440,029

Time deposits

5,316,543

4,972,695

3,4,12

5,859,469

5,412,724

Interest payable

42,825

49,177

Total deposits

5,902,294

5,461,901

Securities sold under repurchase agreements

3,4,13

458,492

212,931

Borrowings and debt, net

3,4,14

4,004,159

4,352,316

Interest payable

39,787

37,508

Lease liabilities

3,15

18,993

19,232

Acceptances outstanding

3,4

437,094

245,065

Trading derivative financial instruments - liabilities

3,4,10

Hedging derivative financial instruments - liabilities

3,4,10

111,317

141,705

Allowance for losses on loan commitments and financial guarantee

3,4

11,334

5,375

Other liabilities

40,667

45,431

Total liabilities

11,024,186

10,521,464

Equity: Common stock

279,980

Treasury stock

(98,978)

(105,601)

Additional paid-in capital in excess of value assigned to common stock

120,213

124,970

Capital reserves

95,210

Regulatory reserves

149,639

149,666

Retained earnings

820,542

792,005

Other comprehensive income

4,065

979

Total equity

1,370,671

1,337,209

Total liabilities and equity

12,394,857

11,858,673

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited condensed consolidated interim statement of profit or loss For the three months ended March 31, 2025 and 2024

(In thousands of US dollars, except earnings per share data)

Notes

2025

2024

Interest income:

Deposits

16,848

25,026

Investment securities

14,310

10,628

Loans

158,262

157,918

Total interest income

189,420

193,572

Interest expense:

Deposits

(67,878)

(69,734)

Securities sold under repurchase agreements

(2,401)

(2,564)

Borrowings and debt

(53,703)

(58,240)

Lease liabilities

(182)

(149)

Total interest expense

(124,164)

(130,687)

Net interest income

65,256

62,885

Other income (expense):

Fees and commissions, net

10,583

9,472

Gain on financial instruments, net

1,984

160

Other income, net

126

Total other income, net

12,693

9,703

Total revenues

77,949

72,588

Provision for credit losses

3,19

(5,216)

(3,029)

Operating expenses:

Salaries and other employee expenses

(13,938)

(11,670)

Depreciation and amortization of equipment, leases and leasehold improvements

(693)

(594)

Amortization of intangible assets

(326)

(224)

Other expenses

(6,044)

(5,803)

Total operating expenses

(21,001)

(18,291)

Profit for the period

51,732

51,268

Per share data:

Basic earnings per share (in US dollars)

1.40

Weighted average basic shares (in thousands of shares)

36,941

36,609

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

Unaudited condensed consolidated interim statement of comprehensive income For the three months ended March 31, 2025 and 2024

(In thousands of US dollars)

2025

2024

Profit for the period

51,732

51,268

Other comprehensive income:

Items that will not be reclassified subsequently to the consolidated statement

of profit or loss:

Change in fair value on financial instruments, net of hedging

3,132

(528)

Reclassification of (losses) gains on financial instruments to the consolidated statement of profit or loss

(46)

235

Other comprehensive income

3,086

(293)

Total comprehensive income for the period

54,818

50,975

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

(In thousands of US dollars)

Additional

paid-in capital

in excess of

value assigned

Other

Common

Treasury

to common

Capital

Regulatory

Retained

comprehensive

stock

reserves

earnings

income

Total equity

Balances at January 1, 2024

279,980

(110,174)

122,046

95,210

136,019

673,281

7,462

1,203,824

Profit for the period

51,268

Other comprehensive income

(293)

Compensation cost - stock options and stock units plans

1,433

Exercised options and stock units vested

3,415

(3,415)

Dividends declared

(18,321)

Balances at March 31, 2024

279,980

(106,759) 120,064

95,210

136,019 706,228

7,169

1,237,911

Balances at January 1, 2025

279,980

(105,601)

124,970

95,210

149,666

792,005

979

1,337,209

Profit for the period

51,732

Other comprehensive income

3,086

Issuance of restricted stock

3,392

(3,392)

Compensation cost - stock options and stock units plans

1,866

Exercised options and stock units vested

3,231

(3,231)

Regulatory credit reserve

(27)

Dividends declared

(23,222)

Balances at March 31, 2025

279,980

(98,978)

120,213

95,210

149,639

820,542

4,065

1,370,671

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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

Unaudited condensed consolidated interim statement of cash flows For the three months ended March 31, 2025 and 2024

(In thousands of US dollars)

Notes

2025

2024

Cash flows from operating activities

Profit for the period

51,732

51,268

Adjustments to reconcile profit for the period to net cash provided by operating activities:

Depreciation and amortization of equipment, leasehold improvements

693

594

Amortization of intangible assets

326

224

Provision for credit losses

5,216

3,029

Realized gain on financial instruments at FVOCI

(87)

Loss on sale of financial instruments at amortized cost

452

Compensation cost - share-based payment

1,866

1,433

Net changes in hedging position and foreign currency

6,090

(9,092)

Interest income

(189,420)

(193,572)

Interest expense

124,164

130,687

Changes in operating assets and liabilities:

Restricted and pledged deposits

20,960

259

Loans

(319,050)

(152,439)

Other assets

(663)

(13,552)

Due to depositors

446,588

316,129

Other liabilities

(4,677)

(16,325)

Cash flows provided by operating activities

144,190

118,643

Interest received

180,596

186,049

Interest paid

(128,217)

(129,153)

Net cash provided by operating activities

196,569

175,539

Cash flows from investing activities:

Acquisition of equipment, leases and leasehold improvements

(223)

(79)

Acquisition of intangible assets

(88)

(235)

Proceeds from the sale of securities at amortized cost

9,590

Proceeds from the redemption of securities at amortized cost

114,797

31,294

Proceeds from the redemption of securities at FVOCI

31,182

Purchases of securities at amortized cost

(167,576)

(33,752)

Purchases of securities at FVOCI

(59,120)

(86,449)

Net cash used in investing activities

(71,438)

(89,221)

Cash flows from financing activities:

Increase in securities sold under repurchase agreements

245,373

53,607

Net (decrease) increase in short-term borrowings and debt

(423,544)

(583,341)

Proceeds from long-term borrowings and debt

64,394

201,482

Payments of long-term borrowings and debt

(34,076)

(60,561)

Payments of lease liabilities

(244)

(283)

Dividends paid

(22,885)

(18,120)

Net cash used in financing activities

(170,982)

(407,216)

Decrease net in cash and cash equivalents

(45,851)

(320,898)

Cash and cash equivalents at beginning of the period

1,819,931

1,987,068

Cash and cash equivalents at end of the period

1,774,080

1,666,170

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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 interim condensed consolidated financial statements for the three months ended 31 March 2025 have been prepared in accordance with International Accounting Standards IAS 34 "Interim Financial Reporting". The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and should be read in conjunction with the Bank's annual consolidated financial statements as at and for the year ended December 31, 2024.

These interim financial statements were authorized for issue by the Bank's board of directors on April 28, 2025.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Bank's annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new standards effective as of 1° January 2025. The Bank has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

One amendment applies for the first time in 2025, but does not have an impact on the interim condensed consolidated financial statements of the Bank.

Lack of exchangeability - Amendments to IAS 21

The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after 1 January 2025. When applying the amendments, and entity cannot restate comparative information. The amendment did not have impact on the Bank's financial statements.

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the previously reported results of operations. An adjustment has been made to the Consolidated Statements of Financial Position for the year ended December 31, 2024, to reclassify the Interest receivable deposits from the line of Others assets to Cash and due from Banks.

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

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. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively.

Loans, at amortized cost (1)

PD Ranges

Stage 1

Stage 2

Stage 3

Total

Grades 1 - 4

0.05-0.38

3,272,758

Grades 5 - 6

0.39-3.81

4,850,087

158,727

5,008,814

Grades 7 - 8

3.82-34.52

416,616

71,522

488,138

Grades 9 - 10

34.53-100

17,547

8,539,461

230,249

17,547

8,787,257

Loss allowance

(45,481)

(19,274)

(12,519)

(77,274)

Total

8,493,980 210,975 5,028 8,709,983

Grades 1 - 4

0.05-0.41

2,971,709

Grades 5 - 6

0.42-3.81

4,704,760

299,292

5,004,052

Grades 7 - 8

3.82-34.52

397,049

71,664

468,713

Grades 9 - 10

34.53-100

17,513

8,073,518

370,956

17,513

8,461,987

Loss allowance

(45,635)

(20,040)

(12,483)

(78,158)

Total

8,027,883 350,916 5,030 8,383,829

(1)Loans at amortized cost includes interest and commission receivable.

Loan commitments, financial guarantees issued and customers' liabilities under acceptances

Commitments and contingencies

Grades 1 - 4

0.05-0.38

502,777

Grades 5 - 6

0.39-3.81

674,475

1,099

675,574

Grades 7 - 8

3.82-34.52

378,290

1,555,542

1,099

1,556,641

Customers' liabilities under acceptances

Grades 1 - 4

0.05-0.38

277,985

Grades 5 - 6

0.39-3.81

50,674

Grades 7 - 8

3.82-34.52

108,435

437,094

1,992,636

1,099

1,993,735

Loss allowance

(11,327)

(7)

(11,334)

Total

1,981,309

1,092

1,982,401

Commitments and contingencies

Grades 1 - 4

0.05-0.41

545,855

Grades 5 - 6

0.42-3.81

630,648

6,099

636,747

Grades 7 - 8

3.82-34.52

226,278

5,500

231,778

1,402,781

11,599

1,414,380

Customers' liabilities under acceptances

Grades 1 - 4

0.05-0.41

204,421

Grades 5 - 6

0.42-3.81

1,155

Grades 7 - 8

3.82-34.52

39,489

245,065

1,647,846

11,599

1,659,445

Loss allowance

(4,815)

(560)

(5,375)

Total

1,643,031

11,039

1,654,070

Securities at amortized cost(1)

March 31,

2025

12-month DP Ranges

Stage 1

Stage 2

Total

Grades 1 - 4

0.05-0.38

1,085,006

Grades 5 - 6

0.39-3.81

52,971

10,607

63,578

1,137,977

10,607

1,148,584

Loss allowance

(928)

(176)

(1,104)

Total

1,137,049

10,431

1,147,480

Ranges

Stage 1

Stage 2

Total

Grades 1 - 4

0.05-0.41

1,020,297

Grades 5 - 6

0.42-3.81

72,976

10,482

83,458

1,093,273

10,482

1,103,755

Loss allowance

(1,133)

(178)

(1,311)

Total

1,092,140

10,304

1,102,444

Securities at FVOCI

March 31, 2025

12-month PD Ranges

Stage 1

Stage 2

Stage 3

Total

Grades 1 - 4

0.05-0.38

128,796

Loss allowance - FVOCI

(109)

Total - Fair value

128,687

Financial risk review (continued)

Credit risk (continued)

12-month PD Ranges

Stage 1

Stage 2

Stage 3

Total

Grades 1 - 4

0.05 - 0.41

99,509

- -

99,509

- -

99,509

Loss allowance - FVOCI

(23)

- -

(23)

Total - Fair value

99,486

- -

99,486

(1)Securities at amortized cost includes interest receivable.

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

March 31,

2025

December 31,

2024

Current

8,769,710

8,444,474

Past due (1)

17,547

17,513

Total

8,787,257 8,461,987

(1)Past due 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.

Notional value USD

instruments -fair value asset

instruments -fair value liabilities

Interest rate swaps

1,251,577

13,774

(3,376)

Cross-currency swaps

1,314,664

18,718

(107,941)

Total

2,566,241

32,492

(111,317)

Notional value USD

instruments -fair value asset

instruments -fair value liabilities

Interest rate swaps

1,132,827

10,805

(2,667)

Cross-currency swaps

1,391,715

11,510

(139,038)

Total

2,524,542

22,315

(141,705)

Loss allowances

The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.

Stage 1

Stage 2

Stage 3

Total

45,635

20,040

12,483

78,158

(1,464)

(225)

(1,653)

(14,631)

(544)

(15,175)

15,941

15,944

45,481

19,274

12,519

77,274

Stage 1

Stage 2

Stage 3

Total

Loans at amortized cost

Net effect of changes in allowance for expected credit losses

Financial instruments that have been derecognized during the period

New financial assets originated or purchased

31, 2023

34,778

17,734

6,898

59,410

Transfer to lifetime expected credit losses

(235)

(1,237)

1,472

Net effect of changes in allowance for expected credit

losses

(1,007)

6,013

2,978

7,984

Financial instruments that have been derecognized during the year

(23,723)

(5,807)

(29,530)

New financial assets originated or purchased

35,822

3,337

39,159

Recoveries

1,135

Allowance for expected credit losses as of December

31, 2024

45,635

20,040

12,483

78,158

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 1 Stage 2 Stage 3 Total

Allowance for expected credit losses as of December

31, 2024

4,815

560

5,375

Net effect of changes in reserve for expected credit losses

(255)

Financial instruments that have been derecognized during the period

(2,197)

(553)

(2,750)

New instruments originated or purchased

8,964

Allowance for expected credit losses as of March 31,

2025

11,327

11,334

Stage 1 Stage 2 Stage 3 Total

Allowance for expected credit losses as of December

31, 2023

3,905

1,154

5,059

Transfer to lifetime expected credit losses

(84)

Net effect of changes in reserve for expected credit

losses

(154)

312

158

Financial instruments that have been derecognized during the year

(2,671)

(1,136)

(3,807)

New instruments originated or purchased

3,819

146

3,965

Allowance for expected credit losses as of December

31, 2024

4,815

560

5,375

Securities at amortized cost

Allowance for expected credit losses as of December

31, 2024

1,133

178

1,311

Transfer to lifetime expected credit losses

(19)

Net effect of changes in allowance for expected credit

losses

(20)

Financial instruments that have been derecognized during the period

(223)

New financial assets originated or purchased

Write-offs

(47)

Allowance for expected credit losses as of March 31,

2025

928

176

1,104

31, 2023

1,230

402

- 1,632

Transfer to lifetime expected credit losses

(21)

- -

Net effect of changes in allowance for expected credit

losses

(55)

(7)

(331) (393)

Financial instruments that have been derecognized

during the year

(392)

(238)

(630)

New financial assets originated or purchased

371

Recoveries

331

Allowance for expected credit losses as of December

31, 2024

1,133

178

1,311

Securities at FVOCI

Allowance for expected credit losses as of December

31, 2024

Net effect of changes in allowance for expected credit

losses

Financial instruments that have been derecognized

during the period

(8)

- -

(8)

New financial assets originated or purchased

- -

Allowance for expected credit losses as of March 31,

2025

109

Stage 1

Stage 2

Stage 3

Total

Net effect of changes in allowance for expected credit losses

New financial assets originated or purchased

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.

Net effect of changes in allowance for

expected credit losses

(1,653)

(255)

215

(1,686)

Financial instruments that have been derecognized during the year

(15,175)

(2,750)

(223)

(8)

(18,156)

New financial assets originated or

purchased

15,944

8,964

25,058

Total

(884)

5,959

(160)

215

5,216

March 31, 2024 Loans at

Net effect of changes in allowance for

expected credit losses

611

(447)

(614)

(449)

Financial instruments that have been derecognized during the year

(10,298)

(2,223)

(102)

(12,623)

New financial assets originated or

purchased

9,835

6,231

16,101

Total

148

3,561

(702)

3,029

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:

March 31,

2025

December 31,

2024

Credit-impaired loans at beginning of period/year

12,483

6,898

Classified as credit-impaired during the year

1,472

Change in allowance for expected credit losses

2,832

Interest income

146

Recoveries

1,135

Securities at amortized cost:

2025

2024

Change in allowance for expected credit losses

- (331)

Recoveries

- 331

Credit-impaired for investments at amortized cost at end of period/year

- -

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

Loans

at amortized cost

Loan commitments, financial guarantee contracts and

acceptances outstanding

Securities at amortized

March 31,

2025

December 31,

2024

March 31,

2025

December 31,

2024

March 31,

2025

December 31,

2024

Carrying amount

8,787,257

8,461,987

437,094

245,065

1,148,584

1,103,755

Amount committed/guaranteed

1,556,641

1,414,380

Concentration by sector

Corporations:

Private

4,595,012

4,410,940

933,542

913,266

636,653

613,629

State-owned

1,197,529

974,470

166,508

82,241

27,553

12,039

Financial institutions:

Private

2,446,283

2,567,264

77,742

140,287

349,034

357,891

State-owned

465,198

426,469

815,943

523,651

28,610

28,650

Sovereign

83,235

82,844

106,734

91,546

Total

8,787,257

8,461,987

1,993,735

1,659,445

1,148,584

1,103,755

Concentration by industry

Financial institutions

2,911,481

2,993,733

893,685

663,938

415,444

403,257

Manufacturing

2,464,948

2,370,275

588,182

555,844

370,139

369,999

Oil and petroleum derived products

1,159,794

963,161

162,202

95,878

98,569

89,047

Agricultural

513,018

454,285

53,532

32,229

Services

602,559

636,000

161,098

163,396

116,888

114,764

Mining

305,584

271,186

51,155

51,413

19,875

14,866

Sovereign

83,234

82,843

68,934

54,517

Other

746,639

690,504

83,881

96,747

58,735

57,305

Total

8,787,257

8,461,987

1,993,735

1,659,445

1,148,584

1,103,755

Concentration by sector and industry at fair value OCI

Securities FVOCI

March 31,

2025

December 31,

2024

Carrying amount

128,687

99,486

Concentration by sector

Corporations:

State-owned

49,635

Financial institutions: State-owned

79,052

99,486

Total

128,687

99,486

Concentration by industry

Financial institutions

79,052

99,486

Oil and petroleum derived products

49,635

Total

128,687

99,486

Financial risk review (continued)

Credit risk (continued)

Risk rating and concentration by country financial instruments at amortized cost

Commitments,

Loans

financial guarantee contracts and

Securities

at amortized cost

acceptances outstanding

at amortized cost

March 31,

December 31,

March 31,

December 31,

March 31,

December 31,

2025

2024

2025

2024

2025

2024

Carrying amount

8,787,257

8,461,987

437,094

245,065

1,148,584

1,103,755

Amount committed/guaranteed

1,556,641

1,414,380

Concentration by country

Argentina

162,571

113,226

200,089

248

Australia

9,936

9,906

Belgium

21,245

17,859

15,407

15,181

Bolivia

1,000

Brazil

1,233,202

1,257,185

250,841

188,125

11,693

24,281

Canada

12,025

11,718

26,155

26,413

44,454

44,828

Chile

507,301

454,602

54,289

50,976

29,510

37,713

China

14,858

14,995

Colombia

907,442

920,975

98,959

82,225

14,916

15,143

Costa Rica

392,321

357,112

49,929

55,263

8,268

8,128

Dominican Republic

793,600

855,539

140,036

122,057

Ecuador

201,108

223,461

286,187

269,369

El Salvador

77,046

71,716

20,000

France

121,426

95,577

43,386

46,573

15,274

14,985

Germany

15,000

30,039

29,737

Guatemala

1,068,774

1,011,790

125,880

113,028

Honduras

239,691

219,527

775

1,625

Ireland

14,600

14,407

Italy

7,397

1,747

4,254

Jamaica

63,799

43,503

Japan

8,767

9,446

58,985

61,834

Korea

14,522

14,448

Mexico

1,158,997

1,015,738

149,445

184,208

18,692

27,898

Netherlands

26,764

25,764

Norway

9,891

10,092

Panama

540,120

455,288

18,640

22,243

72,542

71,552

Paraguay

159,746

196,674

150

230

Peru

400,493

418,460

429,697

356,978

19,648

30,878

Puerto Rico

17,225

20,762

10,000

Arabia Saudi

19,285

Singapore

221,160

282,311

8,315

6,514

Trinidad and Tobago

169,215

167,522

Spain

Sweden

15,022

14,832

United States of America

153,930

137,642

6,514

7,114

678,425

618,680

United Kingdom

60,647

74,985

47,475

39,232

Uruguay

73,151

12,627

48,430

54,484

Total

8,787,257

8,461,987

1,993,735

1,659,445

1,148,584

1,103,755

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

March 31,

2025

December 31,

2024

Carrying amount

128,687

99,486

Concentration by country

Colombia

49,635

Multilateral

79,052

11,824

Total

128,687

11,824

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

March 31, 2025

Gross

Gross amounts offset in the consolidated statement of

Net amount of assets presented

in the consolidated statement of

Gross amounts not offset in the consolidated statement of financial position

amounts of assets

financial position

Financial instruments

Cash collateral received

Net amount

Derivative financial instruments used for

hedging 32,492 - 32,492 - (2,974) 29,518

Total 32,492 - 32,492 - (2,974) 29,518

December 31, 2024

Gross

Gross amounts offset in the consolidated statement of

Net amount of assets presented

in the consolidated statement of

Gross amounts not offset in the consolidated statement of financial position

amounts of assets

financial position

Financial instruments

Cash collateral received

Net amount

Derivative financial instruments used for

hedging

22,315

(6,410)

15,905

Total

22,315

(6,410)

15,905

Securities sold under repurchase agreements and derivative financial instruments - liabilities

Net amount of

Gross amounts

Gross

Gross amounts offset in the consolidated statement of

assets presented in the

consolidated statement of

not offset in the consolidated statement of

financial position

Securities sold under repurchase agreements

amounts of liabilities

financial position

Financial instruments

Cash collateral received

Net amount

at amortized cost (458,492) - (458,492) 500,826 537 42,871

Derivative financial instruments used for

hedging at FVTPL (111,317) - (111,317) - 95,810 (15,507)

Gross amounts

Gross

Gross amounts offset in the consolidated statement of

Net amount of assets presented

in the consolidated statement of

not offset in the consolidated statement of

financial position

Securities sold under repurchase agreements

amounts of liabilities

financial position

Financial instruments

Cash collateral received

Net amount

at amortized cost (212,931) - (212,931) 239,046 564 26,679

Derivative financial instruments used for

hedging at FVTPL (141,705) - (141,705) - 116,743 (24,962)

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:

March 31,

2025

December 31,

2024

At the end of the period/year

150.38 %

264.58 %

Period/year average

134.28 %

181.75 %

Maximum of the period/year

212.53 %

335.28 %

Minimun of the period/year

115.17 %

107.20 %

The following table includes the Bank's liquid assets by country risk:

March 31, 2025

December 31, 2024

Cash and due

(in millions of USD dollars)

from banks

Securities FVOCI

Total

from banks

Securities FVOCI

Total

United State of

America

1,667

1,650

Other O.E.C.D

countries

Latin America

Multilareal

100

178

125

224

Total

1,774

1,852

1,819

1,918

The following table includes the Bank's demand deposits from customers and its ratio to total deposits from customers:

March 31,

2025

December 31,

2024

(in millions of USD dollars)

Demand and "overnight" deposits

1,283

694

Demand and "overnight" deposits to total deposits

21.90 %

12.82 %

The liquidity requirements resulting from the Bank's demand deposits from customers is satisfied by the Bank's liquid assets as follows:

March 31,

2025

December 31,

2024

(in millions of USD dollars)

Total liquid assets

1,852

1,918

Total assets to total liabilities

31.61 %

35.45 %

Total liquid assets in the

Federal Reserve of the United States of America 67.49 % 53.51 %

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:

(in millions of USD dollars)

Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year

according to its original terms

5,229

5,127

Average term (days)

197

187

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:

(in millions of USD dollars)

according to its original terms

4,728

4,438

Average term (days)

1408

1388

Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year

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:

March 31, 2025

6 months to

More than

Gross

Up to 3

3 to 6

1 to 5

inflows

Carrying

months

year

years

(outflows)

amount

Assets

Cash and due from banks

1,878,873

5,116

15,710

1,899,699

1,898,678

Securities

57,172

62,902

186,469

1,011,822

121,668

1,440,033

1,276,167

Loans

3,315,163

1,836,296

1,143,291

2,924,576

274,774

9,494,100

8,709,983

Trading derivative financial instruments - assets

Hedging derivative financial

instruments - assets

17,447

650

13,900

486

32,492

Total

5,268,655

1,904,323

1,346,120

3,950,298

397,001

12,866,397

11,917,393

Liabilities

Trading derivative financial

instruments - liabilities

(49)

Deposits

(4,503,837)

(721,874)

(358,199)

(342,739)

(5,926,649)

(5,902,294)

Securities sold under repurchase

agreements

(335,451)

(12,877)

(23,389)

(89,355)

(461,072)

(458,492)

Borrowings and debt

(1,132,464)

(753,227)

(176,057)

(1,912,320)

(38,739)

(4,012,807)

(4,004,159)

Interest payable - Borrowings and

debt

(41,348)

(55,627)

(71,455)

(216,955)

(8,420)

(393,805)

(39,787)

Lease liabilities

(279)

(343)

(703)

(5,634)

(12,034)

(18,993)

Hedging derivative financial

instruments - liabilities

(1,655)

(613)

(7,974)

(99,393)

(1,682)

(111,317)

Total

(6,015,034)

(1,544,561)

(637,777)

(2,666,396)

(60,924)

(10,924,692)

(10,535,091)

Subtotal net position

(746,379)

359,762

708,343

1,283,902

336,077

1,941,705

1,382,302

Off-balance sheet contingencies

Confirmed letters of credit

206,695

239,590

3,104

449,389

Stand-by letters of credit and

guarantees

171,209

181,001

155,066

38,691

545,967

Loans and letter of credit

commitments

94,614

216,197

114,772

132,838

2,864

561,285

Total

472,518

636,788

272,942

171,529

2,864

1,556,641

Total net position

(1,218,897)

(277,026)

435,401

1,112,373

333,213

385,064

Financial risk review (continued)

B. Liquidity risk (continued)

December 31, 2024

6 months to

More than

Gross

Up to 3

3 to 6

1 to 5

inflows

Carrying

months

year

years

(outflows)

amount

Assets

Cash and due from banks

1,944,338

5,286

15,710

1,965,334

1,963,838

Securities

84,980

66,341

109,616

1,036,660

44,522

1,342,119

1,201,930

Loans

2,759,031

2,018,051

1,557,065

2,583,263

247,238

9,164,648

8,383,829

Hedging derivative financial instruments - assets

1,218

9,484

951

10,592

22,315

Total

4,789,567

2,099,162

1,683,342

3,630,515

291,830

12,494,416

11,571,912

Liabilities

Deposits

(4,413,516)

(597,055)

(354,883)

(93,369)

(5,458,823)

(5,461,901)

Securities sold under repurchase agreements

(101,528)

(23,268)

(89,355)

(214,151)

(212,931)

Borrowings and debt

(1,089,794)

(636,362)

(591,934)

(2,012,423)

(38,012)

(4,368,525)

(4,352,316)

Interest payable - Borrowings and debt

(49,113)

(51,997)

(83,583)

(261,617)

(9,413)

(455,723)

(37,508)

Lease liabilities

(244)

(276)

(684)

(5,592)

(12,437)

(19,233)

(19,232)

Hedging derivative financial instruments - liabilities

(9,379)

(70)

(1,192)

(129,609)

(1,455)

(141,705)

Total

(5,663,574)

(1,285,760)

(1,055,544)

(2,591,965)

(61,317)

(10,658,160)

(10,225,593)

Subtotal net position

(874,007)

813,402

627,798

1,038,550

230,513

1,836,256

1,346,319

Off-balance sheet contingencies

Confirmed letters of credit

358,624

141,422

36,304

536,350

Stand-by letters of credit and guarantees

141,843

133,149

178,798

66,495

520,285

Loans and letter of credit commitments

60,341

39,900

40,350

208,868

8,286

357,745

Total

560,808

314,471

255,452

275,363

8,286

1,414,380

Total net position

(1,434,815)

498,931

372,346

763,187

222,227

421,876

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

Financial assets and liabilities Undiscounted cash flows, which include estimated interest payments.

Issued financial guarantee contracts, and loan commitments

Derivative financial assets and financial liabilities

Earliest 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.

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.

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:

States of America

1,249,910

1,020,858

Cash and balances with other bank (1)

524,170

799,073

Balances with Federal Reserve of the United

(1)Excludes pledged deposits.

Financial assets available to support future funding

The following table sets out the Bank's financial assets available to support future funding:

Guaranteed

collateral

Guaranteed

collateral

Cash and due from banks

122,947

1,774,080

143,907

1,819,931

Notional of investment securities

841,039

459,540

558,981

665,715

Loans at amortized cost - outstanding principal balance

8,692,481

8,375,172

Total

963,986

10,926,101

702,888

10,860,818

The total financial assets recognized in the statement of financial position that had been pledged as collateral for liabilities as of March 31, 2025 and December 31, 2024 are show in the table above.

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

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:

March 31, 2025

Up to 3 months

3 to 6 months

6 months to

1 year

1 to 5 years

More than 5

years

Non interest rate risk

Total

Assets

Cash and due from banks

1,871,844

5,000

15,000

5,183

1,897,027

Securities - principal

219,015

61,609

178,841

727,036

77,817

1,264,318

Loans - principal balance

5,852,987

1,938,808

655,303

235,276

10,107

8,692,481

Total

7,943,846

2,005,417

849,144

962,312

87,924

5,183

11,853,826

Liabilities

Demand deposits and time deposits

(4,553,523)

(708,809)

(342,470)

(250,520)

(4,147)

(5,859,469)

Securities sold under repurchase agreements

(366,215)

(39,746)

(23,389)

(29,142)

(458,492)

Borrowings and debt

(2,707,810)

(1,128,947)

(94,292)

(73,110)

(4,004,159)

Total

(7,627,548)

(1,877,502)

(460,151)

(352,772)

(4,147)

(10,322,120)

Net effect of derivative financial instruments held

for interest risk management

15,792

(604)

(7,324)

(85,493)

(1,196)

(78,825)

Total interest rate sensitivity

332,090

127,311

381,669

524,047

86,728

1,036

1,452,881

December 31, 2024

Up to 3

3 to 6

6 months to

More than 5

Non interest

months

1 year

1 to 5 years

years

rate risk

Total

Assets

Cash and due from banks

1,940,840

5,000

15,000

2,998

1,963,838

Securities - principal

83,294

64,955

104,954

907,612

28,510

1,189,325

Loans - principal balance

5,053,040

2,025,688

1,039,106

248,045

9,293

8,375,172

Total

7,077,174

2,095,643

1,159,060

1,155,657

37,803

2,998

11,528,335

Liabilities

Demand deposits and time deposits

(4,404,015)

(645,546)

(336,377)

(24,130)

(2,656)

(5,412,724)

Securities sold under repurchase agreements

(133,898)

(58,636)

(20,397)

(212,931)

Borrowings and debt

(2,932,280)

(801,575)

(460,355)

(158,106)

(4,352,316)

Total

(7,470,193)

(1,447,121)

(855,368)

(202,633)

(2,656)

(9,977,971)

Net effect of derivative financial instruments held

for interest risk management

(8,159)

9,414

(242)

(119,018)

(1,385)

(119,390)

Total interest rate sensitivity

(401,178)

657,936

303,450

834,006

36,418

342

1,430,974

Interest rate risk management is complemented by monitoring the sensitivity of the Bank´s financial assets and liabilities, considering several standard interest rate scenarios. The standard scenarios considered monthly include a parallel decline or increase of 50bps, 100bps, and 200 bps across all yield curves, which are evaluated based on market behavior.

The Bank performs a sensitivity analysis of the most likely increase or decrease in market interest rates at the reporting date, assuming non-asymmetric movements in the yield curves and a constant financial situation to assess the effect on profit or loss.

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:

Effect on equity

Effect on equity value (EVE)

March 31, 2025

+50 bps

1,867 3,341 (11,257)

-50 bps

(2,364) (3,409) 11,435

December 31, 2024

+50 bps

343 9,586 (14,709)

-50 bps

(668) (9,770) 14,714

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

Cash and due from

banks

253

123

2,329

2,867

Loans

27,038

394,015

421,053

Total Assets

27,291

123

396,344

423,920

Liabilities

Borrowings and debt

(27,038)

(396,489)

(423,527)

Total liabilities

(27,038)

(396,489)

(423,527)

Net currency position

253

123

(145)

393

Cash and due from

banks

110

242

1,210

1,616

Loans

25,886

310,630

336,516

Total Assets

110

26,128

311,840

338,132

Liabilities

Borrowings and debt

(25,748)

(311,562)

(337,310)

Total liabilities

(25,748)

(311,562)

(337,310)

Net currency position

110

380

278

822

(1)It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Costa Rican colones and Peruvian soles.

Disclaimer

BLADEX - Foreign Trade Bank of Latin America Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 15:22 UTC.