#Panama City #Panama #Bladex #NYSE BLX #Banco Latinoamericano

Bladex Achieves Record Results in 2024

Banco Latinoamericano de Comercio Exterior, S.A., popularly known as Bladex, has unveiled its financial results for the Fourth Quarter of 2024 and the full fiscal year, marking an impressive achievement in the banking sector. The multinational bank, which has its headquarters in Panama, reported a net profit of $51.5 million for the fourth quarter, translating to $1.40 per share. This figure contributes to an astonishing annual net profit total of $205.9 million, or $5.60 per share, signifying a 24% increase year-over-year.

Financial Highlights

The bank's success in FY24 can be attributed to a combination of increased revenues, rigorous cost management, and overall efficiency improvements. Bladex experienced a notable 14% revenue growth year-over-year, driven predominantly by rising business volumes throughout the year. Consequently, the Return on Equity (ROE) soared to 16.2%, showcasing the bank's profitability and operational excellence.

In addition to the substantial profit figures, Bladex recorded a net interest income (NII) of $66.9 million in 4Q24, a 2% increase from the same quarter the previous year. For the entire fiscal year, NII reached $259.2 million, reflecting an 11% rise. The bank's net interest margin maintained stability at 2.47%, indicating effective interest rate management amid market fluctuations.

The fee income also hit a record high of $11.9 million in 4Q24, representing 18% growth from the previous year. For FY24, the total fee income amounted to $44.4 million, a substantial 37% increase, stemming from the bank's effective cross-selling efforts and improvements in project financing processes.

Outstanding Growth and Efficiency

Bladex's efficiency ratio was commendable, standing at 29.2% in 4Q24 and 26.5% for FY24. This efficiency reflects the bank's capability to manage operating costs while boosting revenues — a crucial element in enhancing profitability. Notably, the operating expenses increased by 7% in 4Q24, largely due to personnel costs, yet the rise was more than compensated by the increased revenues.

The bank's total credit portfolio reached an all-time high of $11,224 million, up 18% year-over-year. This growth underscores the growing demand for loans and the bank's ability to onboard new clients for lending while maintaining low-risk exposure, with 96.4% of its credit portfolio classified as low risk. Notably, the impaired credits represented a mere 0.2% of total loans, indicating sound credit quality and effective risk management practices.

Additionally, the bank's deposit base expanded significantly to $5,413 million, marking a 23% increase and accounting for 54% of total funding sources. This liquidity position reinforces Bladex's ability to sustain and grow its lending activities amidst changing market conditions.

Competitive Capitalization and Future Outlook

Bladex's regulatory capital ratios, including a Tier 1 Basel III Capital ratio of 15.5%, indicate a robust capital position, enabling it to navigate potential economic uncertainties effectively. The bank’s solid financial foundations instill confidence among investors, and the Board of Directors has approved a quarterly dividend of $0.625 per share, benefiting shareholders and projecting a commitment to returning value.

In closing, Bladex's impressive financial results for FY24 are particularly noteworthy in the context of global economic challenges. The bank's ability to drive profitability through efficient operations and robust lending practices positions it favorably for future growth. With an experienced leadership team and strategic initiatives in place, Bladex is well-equipped to capitalize on emerging opportunities in the regional financial market.