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

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Text of Presentation for Frontier & Emerging Markets Conference (Auberbach Grayson), New York

  • Banco Latinoamericano de Comercio Exterior, S.A.


    Information as of September 30, 2017

    Frontier & Emerging Markets Conference

    New York, October 30-31, 2017

  • 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 Banks 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 Banks 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 Banks credit portfolio, including its trade finance portfolio; the continuation of

    the Banks preferred creditor status; the impact of increasing interest rates and of improving macroeconomic environment in

    the Region on the Banks financial condition; the execution of the Banks strategies and initiatives, including its revenue

    diversification strategy; the adequacy of the Banks allowance for credit losses; the need for additional provisions for credit

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

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

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

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

    adequacy of the Banks sources of liquidity to replace large deposit withdrawals.


  • Agenda


    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

  • Profile and Shareholding Structure

    Unique Profile

    Bladex is the Latin American Trade Finance Bank, providing

    integrated financial solutions across Latin Americas 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


    While headquartered in Panama, Bladexs 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 Banks

    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


    (including the

    Banks CEO), 8

    are independent

    Class A Central

    Banks or designees

    from 23 LatAm


    Class B LatAm &

    international banks

    and financial


    Class E Public

    Float (NYSE listed)

    As of September 30, 2017

    Shareholder Composition

  • 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


    Sustained growth

    and sound



    Deep knowledge of

    Latin America

    Core competency in

    trade finance

    Support of

    Investment &

    Regional Integration

    Efficient Measurement

    and Management

    In-depth knowledge of Latin Americas 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


    specialization in

    both primary and



    Enhancing LatAms

    role in global and

    regional value chains

    Growth of Multi-latinas as

    drivers of business expansion

    Supporting business

    integration boosted by

    free trade agreements

    Bladexs products and services are categorized into three main areas: i) Financial

    Intermediation, ii) Structuring and Syndications and iii) Treasury

    Financial Intermediation

    Syndication and Structuring


    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


    Financial Institutions Among top 10 in their

    respective markets

    Significant corporate

    banking activity / client


    Corporations US Dollar generation


    Growth oriented beyond

    domestic market

    Focus on the high and

    medium corporate

    segments of each


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

    Metals & Mining, Food processing and other


    Regional Focus Mexico

    Central America and The



    South America

    Southern Cone (1)

    Andean Region (2)






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

  • Individual








    Latin America World

    Mission and Vision


  • Latin America Trade

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


    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