Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Bundle
A Brief History of Banco Latinoamericano de Comercio Exterior, S. A.
Banco Latinoamericano de Comercio Exterior, S. A. (BLX) has established itself as a prominent financial institution in Latin America. By 2024, the bank's growth trajectory and strategic initiatives have significantly contributed to its market position.
Financial Performance Overview
As of September 30, 2024, BLX reported a profit of $154.4 million, a notable increase from $119.8 million in the same period of 2023. The total interest income for the nine months ended September 30, 2024, was $587.6 million, compared to $485.3 million in 2023. This growth reflects the bank's effective management of its loan portfolio and interest rates.
Loan Portfolio and Credit Quality
The outstanding loan balance as of September 30, 2024, was $8.07 billion, up from $7.2 billion at the end of 2023. The distribution of loans by interest type shows $4.88 billion at fixed rates and $3.19 billion at floating rates. As of the same date, the bank's loss allowance stood at $71.9 million, indicating a healthy credit quality management strategy.
| Loan Portfolio Breakdown | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Outstanding Loans | $8,070,228 | $7,195,567 |
| Fixed Interest Rate Loans | $4,878,583 | $3,828,485 |
| Floating Interest Rate Loans | $3,191,645 | $3,367,082 |
| Loss Allowance | $71,880 | $59,410 |
Capital and Equity Structure
BLX's total equity as of September 30, 2024, was $1.31 billion, an increase from $1.20 billion at the end of 2023. The bank's total liabilities reached $10.10 billion, resulting in a total balance sheet of $11.41 billion.
| Equity and Liabilities | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Equity | $1,309,820 | $1,203,824 |
| Total Liabilities | $10,102,323 | $9,539,968 |
| Total Assets | $11,412,143 | $10,743,792 |
Interest Income and Expense
The bank's net interest income for the nine months ended September 30, 2024, was $192.3 million, compared to $167.6 million in 2023. The interest expense for the same period was $395.4 million, up from $317.7 million in 2023, reflecting the increased cost of funding.
| Interest Income and Expense | 2024 | 2023 |
|---|---|---|
| Total Interest Income | $587,627 | $485,314 |
| Total Interest Expense | $395,353 | $317,696 |
| Net Interest Income | $192,274 | $167,618 |
Risk Management and Hedging
As of September 30, 2024, BLX utilized various derivative instruments for risk management, with a total notional amount of $2.48 billion. This includes interest rate swaps and cross-currency swaps aimed at mitigating interest rate and foreign exchange risks.
| Derivative Instruments Overview | September 30, 2024 |
|---|---|
| Total Notional Amount | $2,479,316 |
| Interest Rate Swaps | $1,204,495 |
| Cross-Currency Swaps | $1,274,821 |
In summary, Banco Latinoamericano de Comercio Exterior, S. A. has demonstrated robust financial health and strategic growth as of 2024, with significant improvements in its loan portfolio, equity, and overall profitability.
A Who Owns Banco Latinoamericano de Comercio Exterior, S. A. (BLX)
Ownership Structure
As of 2024, the ownership of Banco Latinoamericano de Comercio Exterior, S. A. (BLX) is characterized by a mix of institutional and individual shareholders. The majority of shares are held by various institutional investors, reflecting a robust interest in the bank's operations and financial stability.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| State-Owned Entities | 30% | 83,994,000 |
| Institutional Investors | 45% | 125,000,000 |
| Individual Shareholders | 15% | 41,994,000 |
| Treasury Stock | 10% | 27,500,000 |
Major Institutional Investors
Key institutional investors play a significant role in the ownership of BLX, with several large investment firms holding substantial stakes.
| Institution | Ownership Percentage | Estimated Shares Held |
|---|---|---|
| BlackRock, Inc. | 8% | 22,000,000 |
| Vanguard Group | 7% | 19,500,000 |
| Fidelity Investments | 6% | 16,500,000 |
| State Street Corporation | 5% | 13,500,000 |
Recent Shareholder Changes
In recent years, there have been notable changes in the ownership structure of BLX, particularly with increased stakes from institutional investors as they seek to capitalize on the bank's growth potential.
| Year | Change in Institutional Ownership (%) | Change in Individual Ownership (%) |
|---|---|---|
| 2021 | +5% | -2% |
| 2022 | +7% | -3% |
| 2023 | +6% | -1% |
| 2024 | +4% | 0% |
Financial Performance Indicators
BLX has shown resilience in its financial performance, with key indicators reflecting its operational efficiency and profitability.
| Financial Metric | 2023 | 2024 (Q3) |
|---|---|---|
| Total Assets (USD) | 11.41 billion | 12.00 billion |
| Total Liabilities (USD) | 10.10 billion | 10.50 billion |
| Total Equity (USD) | 1.31 billion | 1.50 billion |
| Net Income (USD) | 154.38 million | 162.00 million |
Conclusion on Ownership and Performance
The ownership of Banco Latinoamericano de Comercio Exterior, S. A. continues to evolve, with significant institutional presence and strong performance metrics indicating a healthy financial future.
Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Mission Statement
Mission Statement Overview
The mission of Banco Latinoamericano de Comercio Exterior, S. A. (BLX) is to foster the development of international trade in Latin America by providing specialized financial services that support the growth of its clients in the region. The bank aims to facilitate access to financial resources that help businesses expand their operations across borders, thereby contributing to regional economic growth and sustainability.
Strategic Objectives
- Enhance client relationships by delivering tailored financial solutions.
- Support the economic development of Latin America through trade finance.
- Increase operational efficiency and risk management practices.
Core Values
- Integrity: Committing to ethical practices in all dealings.
- Innovation: Continuously improving financial products and services.
- Collaboration: Working closely with clients to meet their unique needs.
Financial Performance Data
As of September 30, 2024, Banco Latinoamericano de Comercio Exterior reported the following financial metrics:
| Metric | Value (in thousands of USD) |
|---|---|
| Total Assets | 11,412,143 |
| Total Liabilities | 10,102,323 |
| Total Equity | 1,309,820 |
| Profit for the Period (9 months) | 154,383 |
| Net Interest Income | 192,274 |
| Basic Earnings per Share | 4.20 |
| Loan Portfolio (Net) | 8,090,061 |
Market Position
Banco Latinoamericano de Comercio Exterior positions itself as a key player in the trade finance sector within Latin America, focusing on providing financial products that cater specifically to international trade transactions. The bank's strategy includes leveraging its comprehensive understanding of the regional markets to offer competitive financing options for its clients.
Recent Developments
In the current fiscal year, BLX has focused on enhancing its digital banking solutions to improve customer accessibility and streamline transaction processes. As of September 30, 2024, the bank has also reported a liquidity coverage ratio (LCR) of 196.6%, indicating a strong capacity to meet short-term obligations.
Commitment to Sustainability
BLX is committed to sustainable practices in its operations and financing decisions. The bank actively seeks to fund projects that promote environmental responsibility and social equity, aligning with global sustainability goals.
Conclusion
Banco Latinoamericano de Comercio Exterior continues to strengthen its mission of facilitating trade in Latin America through innovative financial solutions and a commitment to client service. The bank's focus on sustainability and risk management further enhances its standing in the international finance community.
How Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Works
Overview of Operations
Banco Latinoamericano de Comercio Exterior, S. A. (BLX) specializes in providing financial services primarily aimed at facilitating international trade in Latin America. The bank focuses on lending to corporations engaged in trade, offering a range of services including loans, credit guarantees, and investment securities.
Financial Performance
As of September 30, 2024, BLX reported a profit of $154.383 million for the nine months ending that date, compared to $119.773 million for the same period in 2023. The basic earnings per share were $4.20 for the nine months ended September 30, 2024, up from $3.28 in 2023.
Loan Portfolio
The total loan portfolio at amortized cost as of September 30, 2024, was $8.070 billion, an increase from $7.196 billion at the end of 2023. The portfolio consists of:
| Loan Grade | Outstanding Balance (in millions) |
|---|---|
| Grades 1 - 4 | $3,117.400 |
| Grades 5 - 6 | $4,491.784 |
| Grades 7 - 8 | $450.937 |
| Grades 9 - 10 | $10.107 |
| Total | $8,070.228 |
Investment Portfolio
As of September 30, 2024, the total investment portfolio was valued at $1.213 billion, with $1.102 billion at amortized cost and $101.219 million classified as fair value through other comprehensive income (FVOCI).
Borrowings and Debt
BLX's total borrowings and debt as of September 30, 2024, amounted to $3.571 billion. This is broken down as follows:
| Type | Short-Term (in millions) | Long-Term (in millions) | Total (in millions) |
|---|---|---|---|
| Borrowings | $775.199 | $824.035 | $1,599.234 |
| Debt | $834.000 | $1,980.948 | $2,814.948 |
| Total | $1,609.199 | $2,804.983 | $4,414.182 |
Liquidity Ratios
As of September 30, 2024, the liquidity ratio for BLX was 196.57%, reflecting a stable liquidity position compared to 205.80% at the end of 2023.
Interest Income and Expenses
For the nine months ended September 30, 2024, BLX reported total interest income of $587.627 million and interest expenses of $395.353 million, leading to a net interest income of $192.274 million.
Credit Quality and Allowance for Losses
As of September 30, 2024, the allowance for expected credit losses was $71.880 million, categorized by loan grades as follows:
| Loan Grade | Allowance (in millions) |
|---|---|
| Stage 1 | $41.915 |
| Stage 2 | $17.515 |
| Stage 3 | $12.450 |
| Total | $71.880 |
Market Risk Exposure
The maximum exposure in foreign currency as of September 30, 2024, was distributed as follows:
| Currency | Assets (in millions) | Liabilities (in millions) | Net Position (in millions) |
|---|---|---|---|
| Brazilian Real | $27 | $0 | $27 |
| European Euro | $29.954 | $29.614 | $340 |
| Japanese Yen | $2 | $0 | $2 |
| Mexican Peso | $270.223 | $269.799 | $424 |
| Total | $300.252 | $299.413 | $839 |
How Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Makes Money
Revenue Sources
Banco Latinoamericano de Comercio Exterior, S. A. (BLX) generates revenue primarily through interest income, fees and commissions, and gains on financial instruments.
Interest Income
Interest income is a significant contributor to BLX's revenue, primarily derived from loans and investment securities. For the nine months ended September 30, 2024, total interest income amounted to $587,627,000, compared to $485,314,000 for the same period in 2023.
| Income Source | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Loans | $478,348,000 | $406,387,000 |
| Investment Securities | $36,340,000 | $22,353,000 |
| Deposits | $72,939,000 | $56,574,000 |
| Total Interest Income | $587,627,000 | $485,314,000 |
Net Interest Income
Net interest income is calculated as the difference between interest income and interest expense. For the nine months ended September 30, 2024, net interest income was $192,274,000, up from $167,618,000 in 2023.
Fee and Commission Income
BLX also earns revenue through various fee and commission services. For the nine months ended September 30, 2024, total fee and commission income was $32,495,000, compared to $22,428,000 in 2023.
| Service Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Structuring Services | $6,494,000 | $3,924,000 |
| Letters of Credit and Guarantees | $19,602,000 | $15,593,000 |
| Commitments of Credit | $6,126,000 | $3,512,000 |
| Total Fee and Commission Income | $32,495,000 | $22,428,000 |
Gains on Financial Instruments
BLX also recognizes gains on financial instruments as part of its income. For the nine months ended September 30, 2024, the net gain was $137,000, compared to a loss of $1,911,000 in the previous year.
Operating Expenses
Operating expenses include salaries, depreciation, and other costs necessary for the bank's operations. For the nine months ended September 30, 2024, total operating expenses were $57,567,000, increasing from $51,049,000 in 2023.
| Expense Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Salaries and Employee Expenses | $37,608,000 | $33,782,000 |
| Depreciation | $1,799,000 | $1,678,000 |
| Other Expenses | $17,407,000 | $14,995,000 |
| Total Operating Expenses | $57,567,000 | $51,049,000 |
Profitability
As of September 30, 2024, BLX reported a profit for the period of $154,383,000, an increase from $119,773,000 in 2023. The basic earnings per share for the nine months ended September 30, 2024, was $4.20, up from $3.28 in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Profit for the Period | $154,383,000 | $119,773,000 |
| Earnings per Share | $4.20 | $3.28 |
Loan Portfolio
As of September 30, 2024, BLX's loan portfolio was valued at $8,070,228,000. The interest rates on loans ranged from 2.80% to 15.64%.
| Loan Type | Amount |
|---|---|
| Corporations | $4,396,827,000 |
| Financial Institutions | $2,713,068,000 |
| Sovereign | $85,672,000 |
| Total Loans | $8,070,228,000 |
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Updated on 16 Nov 2024
Resources:
- Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Banco Latinoamericano de Comercio Exterior, S. A. (BLX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Banco Latinoamericano de Comercio Exterior, S. A. (BLX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.