#Panama City #Panama #Bladex #Banco Latinoamericano #Panamanian Bank

Bladex Reports Impressive Q1 2025 Net Profit Growth

Panama City, May 5, 2025 - Banco Latinoamericano de Comercio Exterior, S.A. (commonly known as Bladex) has declared a remarkable financial performance for the first quarter of 2025, showcasing a net profit of $51.7 million, which translates to $1.40 per share. This achievement signifies a 1% year-on-year increase and underlines the bank's sustained growth amidst challenging market conditions, boasting an annualized Return on Equity (ROE) of 15.4%.

Bladex, a prominent Panama-based multinational bank, was initially established to facilitate foreign trade among the 23 Latin American and Caribbean nations. The bank's commitment to enhancing economic integration has borne fruit as seen in its financial results, which were formulated following International Financial Reporting Standards (IFRS) as dictated by the International Accounting Standards Board (IASB).

Key Financial Highlights

The financial highlights for the quarter ended March 31, 2025, reveal a robust upward trajectory:

• - Net Interest Income (NII) reached $65.3 million, marking a 4% increase year-over-year, driven primarily by the steady growth in business volumes.
• - The Net Interest Margin (NIM) stood at 2.36%, slightly affected by lower market rates and high liquidity in the U.S. dollar, which positively influenced competitive pricing.
• - Fee income showed impressive strength at $10.6 million, a rise of 12% compared to last year, largely a result of efficient cross-selling initiatives and the onboarding of new clients.

Moreover, Bladex has managed its Efficiency Ratio effectively, reporting 26.9% for the quarter despite expanding its workforce and investing consistently in technology advancements aligned with strategic objectives.

Record Growth in Credit Portfolio

Bladex announced an all-time high credit portfolio of $11,950 million, indicating a 22% year-on-year increase. Noteworthy remarks include:

• - The Commercial Portfolio reached a peak of $10,686 million, reflecting a remarkable 23% growth year over year, highlighting robust demand for credit coinciding with enhanced business growth through new client acquisitions and product cross-selling efforts.
• - The Investment Portfolio, consisting mainly of investment-grade securities, rose to $1,264 million, a 15% increase from the previous year, to aid in risk exposure diversification and provide necessary liquidity support.

Asset quality has remained favorable, with 97.9% of the credit portfolio classified as low risk or Stage 1 at the end of the first quarter. Impaired credits totaled $17 million, representing just 0.1% of the total credit portfolio, with coverage reserves standing robust at 5.3 times the amount.

Hailing a Strong Deposit Base

The bank's deposit base also achieved an unprecedented level of $5,859 million, a stunning increase of 24% year-over-year, which makes up 57% of its funding sources. This is underpinned by consistent and ample access to interbank markets and debt capital.

Liquidity remains strong at $1,852 million, approximately 15% of total assets, primarily held in deposits with the Federal Reserve Bank of New York and high-rated U.S. financial institutions.

In terms of capital adequacy, Bladex’s Tier 1 Basel III ratio stands at 15.1%, showcasing the bank's solid foundation and capacity for managing risk effectively.

Concluding Outlook

As a culmination of its successful strategies, Bladex also declared a quarterly dividend of $0.625 per share, recognizing shareholder commitments and informing that the payment will occur on June 3, 2025, for those registered by May 16, 2025. With this strong performance, the bank is optimistic about its continued growth trajectory and strategic advancements moving forward.

For those interested, Bladex will host a conference call to discuss these results on May 6, 2025, offering an opportunity for analysts and investors to engage with the management directly.

Bladex’s commitment to facilitating economic growth in the region promises ongoing potential as it navigates opportunities and challenges in the evolving financial landscape.