Transcript
Page 1: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Banco Latinoamericano de Comercio Exterior, S.A.

CORPORATE PRESENTATION

Information as of September 30, 2017

Frontier & Emerging Markets Conference

New York, October 30-31, 2017

Page 2: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Disclaimer

“This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions

established by the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks

and uncertainties. The forward-looking statements in this presentation reflect the expectations of the Bank’s management

and are based on currently available data; however, actual experience with respect to these factors is subject to future

events and uncertainties, which could materially impact the Bank’s expectations. A number of factors could cause actual

performance and results to differ materially from those contained in any forward-looking statement, including but not limited

to the following: the anticipated growth of the Bank’s credit portfolio, including its trade finance portfolio; the continuation of

the Bank’s preferred creditor status; the impact of increasing interest rates and of improving macroeconomic environment in

the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue

diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit

losses; the volatility of the Bank’s Treasury trading revenues; the Bank’s ability to achieve future growth and increase its

number of clients, the Bank’s ability to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its

investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations;

potential trading losses; existing and future governmental banking and tax regulations; the possibility of fraud; and the

adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals.”

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Page 3: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Agenda

3

Profile & Shareholder Structure 4

Value Proposition & Business Fundamentals 5

Mission and Vision 6

Latin America Trade and Macroeconomic Perspectives 7

Commercial Portfolio and Asset Quality 9

Structuring and Loan Distribution 15

Funding Sources and Liquidity 17

Key Indicators 19

Bladex Value Proposition to Shareholders 22

Outlook & Final Remarks 23

Page 4: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Profile and Shareholding Structure

Unique Profile

Bladex is the Latin American Trade Finance Bank, providing

integrated financial solutions across Latin America’s foreign

trade value chain

First Latin American bank to be listed on the NYSE and

to be rated Investment Grade (both in 1992). Subject to

laws, regulations and guidelines of U.S. Securities Act of

the SEC and the NYSE

Class A shareholders, Central Banks or designees from

23 Latin America countries (“LatAm”)

Multi-national DNA embedded in its ownership structure,

regional presence management and organizational culture.

Bladex has representative offices in Argentina, Brazil,

Colombia, Mexico and Peru, and is subject to supervision

by regulatory authorities in these jurisdictions

Through its New York Agency, Bladex is subject to the

applicable laws and regulations of financial entities

operating in the USA. Supervision of the Federal Reserve

Bank of the United States of America (FED) and The New

York State Department of Financial Services (NYSDFS)

The Bank, through its commercial activities and diversified

sources of funding, is supervised by various regulatory

entities in different countries such as United States,

Mexico and Japan, among others

Corporate Governance that reflects world standard best

practices

While headquartered in Panama, Bladex’s book of

business, liquidity and funding are largely independent of

the Panamanian Banking System 4

Class A shareholders:

Provide substantial support to Bladex, representing a direct

link between the Bank and the governments of Latin

America –most of which have granted preferred creditor

status to the Bank– and also constitute the main source of

deposits, a very reliable funding source

Enjoy super-majority rights related to changes in the Bank’s

Articles of Incorporation

Can only sell shares to other class A shareholders, thus

maintaining the essence of the existing shareholder

structure and ensuring support from central banks

Unique Shareholding Structure

Board of Directors Composition

Board of Directors

is distinguished by

its independence

and diversity

Out of 10

Directors

(including the

Bank’s CEO), 8

are independent

Class A – Central

Banks or designees

from 23 LatAm

countries

Class B – LatAm &

international banks

and financial

institutions

Class E – Public

Float (NYSE listed)

As of September 30, 2017

Shareholder Composition

Page 5: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Value Proposition with Strong Business Fundamentals

Business Value Proposition Strong Underlying Business Fundamentals

Business Products & Services Multi-Pronged Business Segmentation

Global provider of natural

resources with positive

demographics

Sustained growth

and sound

economic

policies

Deep knowledge of

Latin America

Core competency in

trade finance

Support of

Investment &

Regional Integration

Efficient Measurement

and Management

In-depth knowledge of Latin America’s local markets

Backed by 23 Latin American governments

Vast correspondent banking network throughout

LatAm & other regions of the world

Uniquely qualified staff with strong product expertise in

Trade Value Chain, Cross-border Finance, Supply-side

& Distribution, both intra-regional and inter-regional

Efficient organizational structure

LEAN, client focused efficient organizational structure

Single point of contact, providing client-specific

solutions, and focused on long-term relationships

Driver of progress, economic

growth and development

Supporting

specialization in

both primary and

manufacturing

sectors

Enhancing LatAm’s

role in global and

regional value chains

Growth of ‘Multi-latinas’ as

drivers of business expansion

Supporting business

integration boosted by

free trade agreements

Bladex’s products and services are categorized into three main areas: i) Financial

Intermediation, ii) Structuring and Syndications and iii) Treasury

Financial Intermediation

Syndication and Structuring

Treasury

Trade: Foreign trade products – short and to a lesser extent, medium term

instruments that help drive the cross-border activity of corporations

Working Capital: Support provided to trade finance clients throughout the entire

production cycle chain, across a wide range of primary, secondary and tertiary

activity sectors. Structured Credit and lending facilities for mainly short term

financing of supply chain, materials & equipment, and inventories

Financial solutions designed to meet clients' needs mostly in medium-term tenor

Provides access to structured funding for a wide base of financial institutions and

companies in Latin America

Debt capital market and deposit products for investment and cash flow optimization

Treasury services

World-Class Standards in Corporate Governance

Enterprise-Wide Risk Management

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Financial Institutions Among top 10 in their

respective markets

Significant corporate

banking activity / client

base

Corporations US Dollar generation

capacity

Growth oriented beyond

domestic market

Focus on the high and

medium corporate

segments of each

industry

Focus on Strategic Sectors for the Region Agribusiness, Oil & Gas (mainly integrated),

Metals & Mining, Food processing and other

Manufacturing

Regional Focus Mexico

Central America and The

Caribbean

Brazil

South America

• Southern Cone (1)

• Andean Region (2)

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REGIONS

CLIENT BASE

INDUSTRY

SECTORS

(1) Includes Argentina, Chile, Paraguay and Uruguay. (2) Includes Bolivia, Colombia, Ecuador, Peru and Venezuela

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Individual

Countries

Local

Environment

Regional

Environment

Global

Environment

Latin America World

Mission and Vision

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Page 7: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Latin America Trade

Source: IMF as of October 2017 and The Economist Intelligence as of October 2017

Highlights:

Stabilization/improvement of

commodities prices

External demand expected to

increase in key global markets

Latin America 2017 trade flows

growth estimated at 8.2%

Watch out for:

Protectionist policies in the

U.S. and other countries

Expansion of trade flows

dependent on further

integration of the global supply

chain

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Trade Flows Annual Variation

Trade, GDP and Commodity Prices

Page 8: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Slowdown Stage Recessionary Stage Recovery or Acceleration Stage

Stable Stage

Sources: Analysis of Economic Studies Bladex; Data: IMF, World Economic Outlook, October 2017; WTO.

2018 – Positive growth trend, with GDP estimated at 2.1% for the Region as a whole under a new normality of more

moderate external demand and domestic policies more favorable to growth

Macroeconomic Perspective

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Latin America – 2018: GDP Growth: 2.1% Trade Growth: 4.0% Commodities Index Variance: -0.7%

Latin America – 2017: GDP Growth: 1.2% Trade Growth: 8.2% Commodities Index Variance: 10.8%

Brazil Argentina

Peru

Panama

Venezuela

Uruguay

Mexico

Dominican Rep.

Ecuador

Costa Rica

Guatemala

Jamaica

Bolivia

Paraguay

Honduras

T&T

Colombia

Chile

Nicaragua

El Salvador

Page 9: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Continued internal focus on country, sector and client risk diversification

Increased relative exposure to FIs due to "flight to quality", especially in Brazil

Corporate sector over-supplied due to ample market liquidity and subdued USD credit demand

Commercial Portfolio – Client and Geography

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Commercial Portfolio by Region Commercial Portfolio by Client Type

As of September 30, 2017

Funded vs. Unfunded Commercial Portfolio by Country

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Commercial Portfolio – Type and Term

Commercial Portfolio remaining tenor of 268 days

81% of Commercial Portfolio with average maturity

of 117 days

Commercial portfolio greater than 1 year with

remaining maturity tenor of 2.6 years

Continued focus on trade finance business1: low-

risk asset class, with short-dated exposures, and

lower capital requirement, but with slimmer

margins

Gradual expansion of higher margin medium tenor

exposures as market conditions and risk/return

considerations permit

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Commercial Portfolio by Type of Transaction Commercial Portfolio by Term

(1) Investment Securities Portfolio amounts to only 1% of assets as of September 30, 2017 (consisting of mostly sovereign or state-owned issuers). The Bank looks to

reduce its holdings to minimize market risk

Page 11: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Financial Institutions (“FIs”)

Commercial Portfolio FIs

(As of September 30, 2017)

Maintain significant FI exposure as client growth focuses on corporate sector

Bladex-led syndications offer diversified access to financing to clients, and brings solid corporate

credits to participating banks looking to broaden and enhance their lending portfolio

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Commercial Portfolio Evolution Commercial Portfolio with FIs

Page 12: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Corporate Banking – Focus on Value Chain

Bladex continues to invest significant resources into Market Analysis, Segmentation, and

Business Development to:

Target a greater universe of clients, with focus on adding value to company-specific trade supply

chains through tailor-made solutions

Identify market and technology trends:

Digitize and automate processing with a transactional focus

Drive efficiency in internal routines & controls, reinforcing internal compliance practices (KYC),

strengthening and speed-up client onboarding and credit monitoring

Regional footprint allows focus on countries/sectors/clients with superior qualitative fundaments

Size and segmentation of corporate

universe

Segment dimensioning in each activity

sector

Size the volume of value chains

Cross-border Analysis, countries of origin

and destination, value chains

Trade Flows

Corporate Universe

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Bladex Regional Structure

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Headquarters: Panama

Agency: New York

Regions:

1. Mexico

2. CAC

3. Brazil

4. Rest of South America

Page 13: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Commercial Portfolio Exposure by Industry

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Regional Exposure by Industry - September 30, 2017 Commercial Portfolio by Industry - September 30, 2017

Page 14: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

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Commercial Portfolio – Asset Quality

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Trade Finance is a comparatively low-risk asset class, with short-dated exposures and superior loss performance

Minimized net FX exposures and market risk per internal policies

NPL and specific provisions for ECL confined to a small number of clients and sectors, primarily in Brazil (82%)

Conservative loss reserves methodology (IFRS 9), pro-active loss prevention, and diligent recovery processes have

mitigated greater impact of the Region’s recent adverse credit cycle

Accelerated pace of restructuring negotiations in 3Q17 (with realized losses discharged against existing reserves, and

reserve releases), as reserves coverage strengthened for remaining credits in ongoing negotiations with pending

outcomes

Provisions relating to generic reserves, in line with asset growth requirements

Impaired Loans

Reserves Coverage

NPL Portfolio Industry and Country Mix, September 30, 2017

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Structuring and Loan Distribution

Broad scope of operations with transactions

executed in 12 countries: Germany, Mexico,

Guatemala, Honduras, Costa Rica, Panama, Dominican

Republic, Colombia, Peru, Ecuador, Brazil and Paraguay

Diverse roster of clients and industry sectors: 21

Financial Institutions and 16 Corporations in multiple

industrial sectors (agriculture, packaging, refractory,

steel, cement, power and cable)

Established access to capital linking clients with 74

participating counterparties world-wide: Central

America, Caribbean, South America, USA, Canada,

Taiwan, China, Japan, Europe and Israel

Supported multiple types of transactions: Trade,

Working Capital, Bridge Loans, Acquisition Finance, Pre-

export, A/B loans, and Liability Management

transactions

2011 – September 2017 40 Transactions

Dedicated team of 6 professionals

> US$3.6 B in executed transactions

US$34.5 MM in total structured and syndicated commissions

Loan structuring and distribution fees of total fees & other income

from 6% as of 2011 to 31% as of 9M’17

Proven track record

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Accumulated volume of syndicated transactions

Structuring and Distribution Fees vs. Total

Page 16: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Primary Market - Transactions 2011-September’17

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2016 (10 transactions)

2017 (5 transactions)

2015 (7 transactions)

2014 (10 transactions)

2013 (5 transactions)

2012 (2 transactions)

2011 (1 transaction)

Undisclosed

September 2017

Page 17: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Funding Sources – Regional and Global Diversification

Proven capacity to secure funding and maintain high liquidity

levels

Focus on increased diversification of global and regional

funding sources regarding client base, geography and

currency. Broad access to debt capital markets through

public and private debt issuance programs in USD and other

currencies, as well as to global loan syndications

The Bank relies primarily on deposits to cover its short-term

funding needs as the lending book moved towards shorter

tenors, while increasing overall funding stability with medium

and long-term funding maintaining competitive funding costs

Avg. deposits representing 58% of total funding as of 9M17.

$3B EoP, 63% from central banks or designees (i.e. Class

A), providing a very resilient funding base

Funding Highlights Funding Sources and Cost of Funds (avg.)

Deposits by Type of Client

(*) Original Currency: all non-

USD denominated liabilities

are hedged into US Dollars

with the exception of most

MXN issuances which fund

assets in the same currency.

As of September 30, 2017 As of September 30, 2017

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As of September 30, 2017

Diversified Funding Sources Funding by Currency (*)

Page 18: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Liquidity – Conservative Management

As of September 30, 2017

Comfortable liquidity indicators:

US$ 756 Million

LCR = 1.61x

NSFR = 1.47x

Liquid assets are invested with the Federal Reserve and

top-tier banks

Short term trade commercial portfolio of high quality and

liquidity, with approximately US$1 billion in loans maturing

on a monthly basis

Target more efficient Liquidity levels as economic risks

recede in the Region

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Liquidity Management Highlights Liquidity Placements

Liquid Assets Liquidity Coverage Ratio

(US$ million)

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Key Indicators – P&L

Profit for the period

(US$ million, except percentages)

Fees and Other Income Efficiency Ratio

Net Interest Income & Margin

Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information

corresponding to the years 2011 - 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

(US$ million)

(US$ million)

(US$ million, except percentages)

Page 20: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Key Indicators - Balance Sheet

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Total Assets Loan Portfolio

Deposits Stockholder’s Equity

(US$ million)

(US$ million) (US$ million)

(US$ million)

Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information

corresponding to the years 2011 - 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

Page 21: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Return on Average Equity “ROAE” Return on Average Assets “ROAA”

Key Indicators - Profitability and Solvency

Tier 1 Capital Ratio

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Risk Weighted Assets – Basel III

(US$ million)

2011 (*) $4,090

2012 (*) $4,609

2013 (*) $5,473

2014 $5,914

2015 $6,104

2016 $5,662

30-Sep-2017 $5,082

(*) Not available under Basel III. Corresponds to Basel I

Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information

corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

Page 22: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

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Bladex Value Proposition to Shareholders

BLX Stock Price and Volume Evolution Bladex offers investors access to an

entire continent with improving long-

term growth prospects

Business model provides diversified

exposure to emerging markets, with

well mitigated credit, market, &

operational risks

Book value and dividend growth

underpins share price

Committed to total shareholder return

(“TSR”). Attractive dividend yield

(steadily above 5%) with a pay-out

target that preserves a robust capital

base

Attractive 12-month forward

valuations as of September 30, 2017

(analyst average):

- 11.5x P/E

- 1.1x P/BV

Robust annualized 2017 dividend yield

at 5.5%

Dividends Pay-out and Yield

Dividend Yield

Pay Out

Page 23: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Outlook and Final Remarks

2017 portfolio growth expectations have not been met to date. Excess liquidity, capital markets activity, and overall sluggish

loan demand pressure margins. Markets in our Region continue to experience such abundant USD liquidity, resulting, at

times, in valuation and asset prices which do not meet our internal risk-reward targets. However…

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Bladex continues to privilege adequate pricing over volume growth; average portfolio balances remained largely

stable QoQ, with continued increases in disbursement activity as market loan demand showed some signs of

improvement

Commission income benefitting from recovery of demand and greater diversification in the letters of credit

business, and solid execution in the syndications market

No additional spikes expected in reserve requirements outside generic reserves driven by organic loan growth

Bladex remains committed to driving down cost across the organization targeting efficiency levels below 30%.

Embarked on a process of increasing levels of automation and improving workflows, revising organizational

structures

Bladex is cognizant of the need to effectively deploy its steadily increasing capital base to deliver on profitability

expectations through the credit cycles

RoAE at high single digit and very strong capitalization, with aim to get back to two digit levels by the end of 2018

as portfolio growth gathers speed

Dividend payouts continue to aim for solid dividend yield (>5.5%). The Board of Directors approved to maintain

the quarterly dividend payout at $0.385/share

Page 24: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

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Key Financial Metrics

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Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information

corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

(*) Includes results from the participation of investment funds.

(In US$ million, except percentages) 2011 2012 2013 2014 2015 2016 9M17

Total Income $138.8 $137.4 $133.7 $167.6 $173.9 $168.0 $103.8

Business Profit $66.3 $83.5 $89.4 $99.7 $99.0 $91.5 $61.4

Non-Core Items 16.9 9.5 (4.6) 2.7 5.0 (4.5) -

Net Profit $83.2 $93.0 $84.8 $102.4 $104.0 $87.0 $61.4

EPS (US$) $2.25 $2.46 $2.21 $2.65 $2.67 $2.23 $1.56

Return on Average Equity (ROAE) 11.4% 11.6% 10.0% 11.5% 11.0% 8.8% 8.1%

Business Return on Average Equity ("Business ROAE") 9.1% 10.4% 10.6% 11.2% 10.4% 9.2% 8.1%

Return on Average Assets (ROAA) 1.5% 1.5% 1.2% 1.4% 1.3% 1.2% 1.3%

Busines Return on Assets ("Business ROAA") 1.2% 1.4% 1.3% 1.3% 1.3% 1.2% 1.3%

Net Interest Margin ("NIM") 1.81% 1.70% 1.75% 1.88% 1.84% 2.08% 1.87%

Net Interest Spread ("NIS") 1.62% 1.44% 1.55% 1.72% 1.68% 1.84% 1.51%

Loan Portfolio 4,960 5,716 6,148 6,686 6,692 6,021 5,343

Commercial Portfolio 5,354 5,953 6,630 7,187 7,155 6,444 5,706

Allowance for expected credit losses on loans, loan commitments and

financial guarantee contracts to Commercial Portfolio (%) 1.82% 1.31% 1.18% 1.22% 1.33% 1.73% 2.04%

Non-Performing Loans to gross Loan Portfolio (%) 0.65% 0.00% 0.05% 0.06% 0.78% 1.09% 1.20%

Allowance for expected credit losses on loans, loan commitments and

financial guarantee contracts to Non-Performing Loans (x times) 3.0 0.0 25.0 21.7 1.8 1.7 1.8

Efficiency Ratio 36% 42% 41% 32% 30% 27% 33%

Market Capitalization 596 822 1,081 1,167 1,010 1,153 1,159

Total assets 6,360 6,756 7,471 8,022 8,286 7,181 6,200

Tier 1 Capital Ratio Basel III (Basel I for years 2011-2013) 18.6% 17.9% 15.9% 15.5% 16.1% 17.9% 20.3%

Leverage 8.4 8.2 8.7 8.8 8.5 7.1 6.0

Moody's Investor Services Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2

S&P Global Ratings BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2

Fitch Ratings BBB/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2

Results

Credit Ratings

Performance

Efficiency

Scale &

Capitalization

Portfolio Quality

(*)

Page 25: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

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Bladex’s stock price evolution 2003-2016

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Bladex’s stock price evolution 2003-2016

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Investment Highlights

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Diversified Commercial Portfolio with robust asset quality

Defined Strategy to Achieve Sustainable Growth

Diversified funding & conservative liquidity management

Experienced management and conservative risk management

practices

Compelling Returns sustained by strong and reliable performance metrics

Leading Franchise in Latin

America with solid track record

Trade Finance Bank with more

than 37 years covering the Region

Investment grade profile with

strong and unique shareholding

structure

Deep knowledge of LatAm with

core in trade finance

Strategically positioned to identify

and deliver on growth

opportunities

Portfolio strategy focused on

diversification and sustainable

growth

Strong asset quality

management

Increased diversification of regional

and global funding sources

Advanced liquidity management

operating under Basel III framework

Sustained income growth

Fee generation growth through

diversification

Continued efficiency gains

Attractive returns though the

cycle

Seasoned senior management

World-Class standards in

Corporate Governance, focused

on enterprise-wide risk

management

Page 28: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

PANAMA HEAD OFFICE Torre V, Business Park

Ave. La Rotonda, Costa del Este

Apartado 0819-08730

Panamá, República de Panamá

Tel: (507) 210-8500

ARGENTINA Av. Corrientes 222 –P.18º

(1043AAP) Capital Federal

Buenos Aires, Argentina

Tel: (54-11) 4331-2535

Contacto: Carlos de Alvear

Email: [email protected]

BRAZIL Rua Leopoldo Couto de Magalhäes

Junior 110, 1º andar

04542-000, Sao Paulo, Brazil

Tel: (55-11) 2198-9606

Contact: Roberto Kanegae

Email: [email protected]

MEXICO Rubén Darío 281, piso 15, Oficina #1501

Colonia Bosque de Chapultepec

CP. 11580, México D.F.

Tel: (52-55) 5280-0822

Contact: Alejandro Barrientos

Email: [email protected]

PERU Dean Valdivia 243

Piso 7, Oficina 701

San Isidro, Lima

Tel: (511) 207-8800

Contact: Federico Field

Email: [email protected]

COLOMBIA Calle 113 # 7-45

Edificio Teleport Business Park

Torre B, Oficina 1008

Bogotá, Colombia

Tel: (57-1) 214-3677

Contact: Camilo Alvarado

Email: [email protected]

UNITED STATES NEW YORK AGENCY

10 Bank Street, Suite 1220

White Plains, NY 10606

Tel: (001) 914-328-6640

Contacto: Pierre Dulin

Email: [email protected]

Regional Presence

in Latin America

Investor Relations Contact

Irma Garrido Arango – SVP, Corporate

Development & Investor Relations

E-mail: [email protected]

Tel.: (+507) 210-8559

Page 29: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Appendix – Corporate Governance

Commercial

Division

Board of Directors

CEO

Internal

Audit

Nomination

and Compensation

Committee

Finance and Business

Committee

Risk Policy and

Assessment Committee

Audit and

Compliance Committee

Commercial

Division Finance

Division

Corporate

Services

Legal Counsel

& Compliance Risk

Management

.

FIRST LINE

OF DEFENSE

Operational

Management

-------------------------

Business and

Support Areas

Function

THIRD LINE

OF DEFENSE

Verification -----------------------

Audit Function

SECOND LINE

OF DEFENSE

Monitoring

------------------------- Risk & Legal

Management

function

Regulatory & Prevention

Compliance

AML

Committee

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Internal alignment of corporate culture, measurement system

and process management to optimize total shareholder return

Early implementation of Basel III (2014) and IFRS 9 (2015)

Strive to follow international best practices for Corporate

Government

Multi-regulatory discipline

Auditing overseen by the PCAOB of the United States

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Appendix - Balance Sheet

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Financial Information corresponding to the year 2014-2017 were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. Bladex

completed its transition process to IFRS from US-GAAP in 2015.

(In US$ million)31-Dec-2014 31-Dec-2015 31-Dec-2016 30-Sep-2017

Assets

Cash and cash equivalents $781 $1,300 $1,070 $799

Financial instruments:

At fair value through profit or loss 58 53 0 0

At fair value through OCI 339 142 31 17

Securities at amortized cost, net 55 108 77 71

Loans at amortized cost 6,686 6,692 6,021 5,343

Allowance for expected credit losses on loans (78) (90) (106) (112)

Unearned interest & deferred fees (9) (9) (7) (6)

Loans at amortized cost, net 6,600 6,592 5,907 5,226

At fair value - derivative financial instruments used for hedging - receivable 12 7 9 11

Other assets 178 83 87 87

Total assets $8,022 $8,286 $7,181 $6,200

Liabilities and stockholders' equity

Total deposits $2,507 $2,795 $2,803 $3,003

At fair value - derivative financial instruments used for hedging - payable 40 30 60 26

Securities sold under repurchase agreements 301 114 0 0

Short-term borrowings and debt 2,693 2,430 1,470 737

Long-term borrowings and debt, net 1,400 1,882 1,777 1,358

Allowance for expected credit losses on loan commitments and financial guarantee contracts 10 5 6 5

Other liabilities 162 57 54 54

Total stockholders' equity 911 972 1,011 1,032

Total liabilities and stockholders' equity $8,022 $8,286 $7,181 $6,200

Page 31: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

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Appendix - Profit and Loss

31

Financial Information corresponding to the year 2014-2017 were prepared in accordance with International Financial Reporting Standards

(IFRS) as issued by IASB. Bladex completed its transition process to IFRS from US-GAAP in 2015.

(In US$ thousand) 2014 2015 2016 9M17

Interest income $212,898 $220,312 $245,898 $170,280

Interest expense 71,562 74,833 90,689 78,605

Net Interest Income 141,336 145,479 155,209 91,675

Other income

Fees and commissions, net 17,502 19,200 14,306 11,847

Derivate financial instruments and foreign currency exchange 208 (23) (486) (12)

Gain (loss) per financial instrument at fair value through profit or loss 2,361 5,731 (2,883) (706)

Gain (loss) per financial instrument at fair value through OCI 1,871 363 (356) 79

Gain on sale of loans at amortized cost 2,546 1,505 806 113

Other income, net 1,786 1,603 1,378 810

Net other income 26,274 28,379 12,764 12,131

Total Income 167,610 173,858 167,974 103,806

Expenses

Impairment loss from expected credit losses on loans at amortized cost 6,782 17,248 34,760 9,981

Impairment loss (recovery) from expected credit losses on investment securities 1,030 5,290 3 (390)

Impairment loss (recovery) from expected credit losses on loan commitments and financial

guarantee contracts 3,819 (4,448) 352 (946)

Operating expenses

Salaries and other employee expenses 31,566 30,435 25,196 20,306

Depreciation of equipment and leasehold improvements 1,545 1,371 1,443 1,170

Amortization of intangible assets 942 596 644 553

Other expenses 19,560 19,382 18,533 11,732

Total operating expenses 53,612 51,784 45,816 33,763

Total Expenses 65,243 69,874 80,930 42,407

Profit for the Period $102,366 $103,983 $87,044 $61,400

Page 32: Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

Stabilization after multi-year de-risking trend

Remain cautious given market conditions

Appendix – Brazil Commercial Portfolio (September 30, 2017)

32


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