Banco Latinoamericano de Comercio Exterior S A : Q3 2023 Full Report

,

3Q23

Quarterly Financial Report

Panama City, Republic of Panama October 19, 2023

Content

04	3Q23 & 9M23 Financial & Business Highlights
05	Financial Snapshot
06	CEO's Comments
07	Results by Business Segment
07	Commercial Business Segment
11	•	Commercial Segment Profitability
12	Treasury Business Segment
12	•	Liquidity
13	•	Investment Portfolio
13	•	Funding
14	•	Treasury Segment Profitability
15	Net Interest Income and Margins
16	Fees and Commissions
17	Portfolio Quality and Total Allowance for Credit Losses
18	Operating Expenses and Efficiency
19	Capital Ratios and Capital Management
20	Recent Events
20	Notes
20	Footnotes
22	Safe Harbor Statement
23	About Bladex
23	Conference Call Information
24	Exhibits

3	Panama City, Republic of Panama	October 19, 2023

Bladex announces Net Profit increased 23% QoQ and 70% YoY to $45.8 Million, or $1.25 per share for the 3Q23; annualized return on equity of 15.9% in 3Q23

Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX, "Bladex", or "the Bank"), a Panama-based multinational bank originally established by the central banks of 23 Latin-American and Caribbean countries to promote foreign trade and economic integration in the Region, announced today its results for the Third Quarter ("3Q23") and nine months ("9M23") ended September 30, 2023.

The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

4	Panama City, Republic of Panama	October 19, 2023

3Q23 & 9M23 Financial

& Business Highlights

Ascending trend in Profitability, with Net Profit of $45.8 million in 3Q23 (+23% QoQ; +70% YoY), reaching $119.8 million in 9M23 (+96% YoY), fostered by the sustained growth trend on Net Interest Income ("NII") and fee income generation.

Expanded Annualized Return on Equity ("ROE") to 15.9% in 3Q23 (+245 bps QoQ; +559 bps YoY) and 14.4% in 9M23 (+637 bps YoY).

Record level in NII, increasing for tenth consecutive quarter at $60.5 million in 3Q23 (+11% QoQ; +51% YoY), reaching $167.6 million (+70% YoY) in 9M23, driven by higher average volumes and rates. Net Interest Margin ("NIM") expanded to 2.48% in 3Q23 (+6 bps QoQ; +71 bps YoY) and to 2.44% in 9M23 (+88 bps YoY), on the back of higher lending spreads and market rates.

Strong fee income totaling $11.1 million for 3Q23 (+71% QoQ; +77% YoY), as letter of credit frees increased for eight consecutive quarters (+23% QoQ; +76% YoY), along with higher loan syndication fee activity (+248% QoQ; +7% YoY). These positive results boosted fee income to $22.4 million (+55% YoY) in 9M23.

Improved Efficiency Ratio at 27% in 3Q23 and 9M23, on the back of higher total revenues, which continue to overcompensate for the increases in operating expenses mostly related to the Bank's strategy and focus on strengthening its execution capabilities. Operating expenses increased to $19.5 million in 3Q23 (+25% QoQ; +34% YoY) and $51.0 million in 9M23 (+32% YoY).

All-time high Credit Portfolio at $9,244 million as of September 30, 2023 (+1% QoQ and +4% YoY).

• Commercial Portfolio EoP balances reached a new record level of $8,244 million in 3Q23 (+2% QoQ; +5% YoY), on sustained cross- selling and new client onboarding, driving strong business volumes.
• Steady Investment Portfolio at $1,000 million, entirely consisting of credit investments held at amortized cost, enhancing credit exposure diversification.

Healthy asset quality. Most of the credit portfolio (97%) remains classified as low risk or Stage 1. Impaired credits (Stage 3) remained unchanged at $10 million at 3Q23 or 0.1% of total Credit Portfolio, with a reserve coverage of 5.6x.

Record deposits at 3Q23, reaching $4,207 million (+3% QoQ and +23% YoY), coupled with ample and constant access to interbank and debt capital markets, denotes the Bank´s sound and diversified funding structure.

Solid liquidity position at $1,545 million, or 15% of total assets as of September 30, 2023, consisting of cash and due from banks mostly placed with the Federal Reserve Bank of New York (91%).

The Bank´s Tier 1 Basel III Capital and Regulatory Capital Adequacy Ratios stood at 15.4% and 13.6%, respectively, as the Bank remained committed to a sound capitalization.

5	Panama City, Republic of Panama	October 19, 2023

Financial Snapshot

(US$ million, except percentages and per share amounts)	3Q23	2Q23	3Q22	9M23	9M22
Key Income Statement Highlights
Net Interest Income ("NII")	$60.5	$54.5	$40.2	$167.6	$98.6
Fees and commissions, net	$11.1	$6.5	$6.3	$22.4	$14.5
(Loss) gain on financial instruments, net	$0.0	($3.6)	($0.3)	($1.9)	$0.2
Total revenues	$71.8	$57.4	$46.3	$188.3	$113.5
Provision for credit losses	($6.5)	($4.7)	($4.8)	($17.5)	($13.8)
Operating expenses	($19.5)	($15.6)	($14.6)	($51.0)	($38.7)
Profit for the period	$45.8	$37.1	$26.9	$119.8	$61.0
Profitability Ratios
Earnings per Share ("EPS") (1)	$1.25	$1.02	$0.74	$3.28	$1.68
Return on Average Equity ("ROE") (2)	15.9%	13.4%	10.3%	14.4%	8.0%
Return on Average Assets ("ROA") (3)	1.8%	1.6%	1.2%	1.7%	0.9%
Net Interest Margin ("NIM") (4)	2.48%	2.42%	1.77%	2.44%	1.56%
Net Interest Spread ("NIS") (5)	1.83%	1.79%	1.43%	1.81%	1.31%
Efficiency Ratio (6)	27.2%	27.2%	31.6%	27.1%	34.1%
Assets, Capital, Liquidity & Credit Quality
Credit Portfolio (7)	$9,244	$9,114	$8,862	$9,244	$8,862
Commercial Portfolio (8)	$8,244	$8,114	$7,821	$8,244	$7,821
Investment Portfolio	$1,000	$1,000	$1,041	$1,000	$1,041
Total Assets	$10,095	$10,134	$9,320	$10,095	$9,320
Total Equity	$1,161	$1,128	$1,049	$1,161	$1,049
Market Capitalization(9)	$775	$804	$474	$775	$474
Tier 1 Capital to Risk-Weighted Assets (Basel III - IRB) (10)	15.4%	15.7%	14.4%	15.4%	14.4%
Capital Adequacy Ratio (Regulatory) (11)	13.6%	13.6%	12.2%	13.6%	12.2%
Total Assets / Total Equity (times)	8.7	9.0	8.9	8.7	8.9
Liquid Assets / Total Assets (12)	15.3%	17.3%	11.1%	15.3%	11.1%
Credit-impaired Loans to Loan Portfolio (13)	0.1%	0.1%	0.1%	0.1%	0.1%
Impaired Credits (14) to Credit Portfolio	0.1%	0.1%	0.1%	0.1%	0.1%
Total Allowance for Losses to Credit Portfolio (15)	0.6%	0.6%	0.7%	0.6%	0.7%
Total Allowance for Losses to Impaired credits (times) (15)	5.6	5.0	5.8	5.6	5.8

6	Panama City, Republic of Panama	October 19, 2023

This was an outstanding quarter for Bladex. All relevant financial metrics show, once again, a very positive trend. This time with record-breaking figures.

Net income for the quarter was $45.8 million dollars. Biggest bottom-line result ever for Bladex. The resulting quarterly return on equity was nearly 16%.

Clearly, we are being able to capitalize on the bank´s structural competitive position in Latin America. We are consistently taking advantage of the different avenues for profitable growth identified in our plan."

Mr. Jorge Salas

Bladex's Chief Executive Officer

7	Panama City, Republic of Panama	October 19, 2023

Results by Business Segment

Commercial Business Segment

Bladex's activities are comprised of two business segments, Commercial and Treasury. Information related to each segment is set out below. Business segment reporting is based on the Bank's managerial accounting process, which assigns assets, liabilities, revenue, and expense items to each business segment on a systemic basis.

The Commercial Business Segment encompasses the Bank's core business of financial intermediation and fee generation activities developed to cater to corporations, financial institutions, and investors in Latin America. These activities include the origination of bilateral short-term and medium-term loans, structured and syndicated credits, loan commitments, and financial guarantee contracts such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk, and other assets consisting of customers' liabilities under acceptances.

The majority of the Bank's core financial intermediation business, consisting of gross loans at amortized cost (or the "Loan Portfolio"), amounted to $6,900 million at the end of 3Q23, resulting in a 1% quarterly increase and 2% yearly decrease. Additionally, contingencies and acceptances amounted to a new record level of $1,345 million at the end of 3Q23, a 3% increase compared to the previous quarter and a 79% increase compared to the previous year, as new client onboarding and product cross-selling continue to drive strong business volumes.

Loan Portfolio				Contingencies and Acceptances
(EoP Balances, US$ million)		(EoP Balances, US$ million)
			-2%	+1%
								+79%
7,070		6,804	6,900					+3%
									1,309	1,345
					751
30-Sep-22	30-Jun-23	30-Sep-23		30-Sep-22	30-Jun-23	30-Sep-23

8	Panama City, Republic of Panama	October 19, 2023

Consequently, the Bank's Commercial Portfolio reached an all-time high of $8,244 million at the end of 3Q23, increasing 2% from $8,114 million in the prior quarter and increasing 5% YoY from $7,821 million in 3Q22. In addition, the average Commercial Portfolio balance reached $8,348 million in 3Q23 (+7% QoQ and YoY) and $7,898 million in 9M23 (+8% YoY).

Commercial Portfolio by Product

(EoPBalances, US$ million)

+5%

+2%

7,821	8,114	8,244
9%	16%	16%
38%	37%	40%
53%	47%	44%
30-Sep-22	30-Jun-23	30-Sep-23

Letters of Credit, Acceptances, loan commitments and financial guarantees contracts

Medium- and long-term loans at amortized cost

Short-term loans at amortized cost

Commercial Portfolio by Client Type

(EoPBalances, US$ million)

+5%

+2%

7,821	8,114	8,244
40%	44%	45%
17%	15%	18%
43%	41%	37%
30-Sep-22	30-Jun-23	30-Sep-23

Financial Institutions

Sovereigns/Quasi-sovereigns

Corporations

As of September 30, 2023, 69% of the Commercial Portfolio was scheduled to mature within a year, representing decreases of 3 pp from the previous quarter and 1 pp from a year ago. Trade finance transactions accounted for 66% of the Bank's short-term origination, unchanged from 66% in the previous quarter and up from 60% a year ago.

Weighted average lending rates increased to 8.43% in 3Q23 (+37 bps QoQ; +389 bps YoY) and 8.00% in 9M23 (+439 bps YoY), mostly reflecting higher lending spreads and increased market- based interest rates.

9	Panama City, Republic of Panama	October 19, 2023

Commercial Portfolio by Country

41% Investment Grade

59% Non-Investment Grade

Mexico	12%
Peru	9%
Non-Latam	7%
Chile	6%
Panama	5%
T. & Tobago	2%

		12%		13%
9%				13%
7%		8,244
6%				9%
	5%			9%
		1%
	2%
	2%	4%	6%
		2%

Colombia 13%

Brazil13%

Dominican Republic 9%

Guatemala	9%
Ecuador	6%
Costa Rica	4%
Honduras	2%
Paraguay	2%
Other Latam ≤ 1%	1%

Bladex's maintains a well-diversifiedexposure across countries. As of September 30, 2023, 41% of the Commercial Portfolio was geographically distributed in investment grade countries, down 5 pp compared to 46% in 2Q23 and 2 pp compared to 43% in 3Q22, as the Bank focused its growth on countries with enhanced risk reward which include Dominican Republic and Guatemala both at 9% and Ecuador at 6% of the total Commercial Portfolio, while still preserving credit quality through well-diversifiedexposures with top-tierclients across the Region. Mexico at 12% and Peru at 9%, together with top-rated countries outside of Latin America at 7% of the portfolio (which relates to transactions carried out in the Region), represent the most significant investment grade country-riskexposures. Colombia and Brazil, each at 13% of the total portfolio, represent the largest country-riskexposure.

10	Panama City, Republic of Panama	October 19, 2023

The Commercial Portfolio remained well-diversified across industries and focused on high quality borrowers. Exposure to the Bank's traditional client base comprising financial institutions represented 37% of the total, while sovereign and state-owned corporations accounted for another 18%. Exposure to corporates accounted for the reminder 45% of the Commercial Portfolio, comprised of top tier clients well diversified across sectors, with most industries representing 5% or less of the total Commercial Portfolio, except for certain sectors such as Oil & Gas (Downstream) at 9%, Food and Beverage at 8%, Electric Power and Oil & Gas (Integrated), both at 7% of the Commercial Portfolio at the end of 3Q23.

Refer to Exhibit IX for additional information related to the Bank's

Commercial Portfolio distribution by country, and Exhibit XI for the

Bank's distribution of loan disbursements by country.

Commercial Portfolio by Industry

1%	1%			Financial Institutions	37%
1%	1%	3%
		Oil and Gas (Downstream)	9%
2%
2%
2%
					Food and Beverage	8%
2%
3%
			37%		Electric Power	7%
3%
					Oil and Gas (Integrated)	7%
3%		8,244
4%				Metal Manufacturing	4%
4%						Mining	4%
7%						Retail Trade	3%
			9%		Other Manufacturing Industries	3%
7%
		8%		Other Services	3%
						Wholesalers	2%
						Oil and Gas (Upstream)	2%
						Grains and Oilseeds	2%
						Telecommunications	2%
						Plastics and Packaging	1%
						Sovereign	1%
						Paper	1%
						Petrochemical	1%
						Other Industries <1%	3%