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Banco Latinoamericano de Comercio Exterior, S.A.
CORPORATE PRESENTATION
Information as of June 30, 2017
Chicago Midwestern Values 2017 Conference
Chicago, September 20th, 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 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.”
2
Agenda
3
2017 Outlook 4
Mission and Vision 5
Latin America Trade and Macroeconomic Perspectives 6
Profile and Shareholding Structure 8
Value Proposition with Strong Business Fundamentals 9
Business Profile and Commercial Portfolio 10
Structuring and Asset Distribution 17
Funding Sources and Liquidity 19
Key Indicators 21
Business Value Proposition for Shareholders 25
• Target Commercial Portfolio balances of $6.4 billion by Y/E, with emphasis on short-term foreign
trade transactions
• Continued de-concentration of risks and diversification of exposures (countries, sectors and
clients) as focus shifts to broaden client base
• Commission income benefitting from recovery of demand for letters of credit, and solid
execution in the syndications market
• Maintain strict focus on cost control, with efficiency levels around 30%
• Forward looking approach to constitute credit provisions based on expected losses … NPL
leveling off as restructurings progress
• RoAE at high single digit and very strong capitalization, with aim to get back to two digit levels in
2018 as portfolio growth gathers speed
• Dividend payouts continue to aim for solid dividend yield
2017 Outlook
2017 portfolio growth expectations have not been met to date. Region showing only modest
improvement in terms of average GDP growth, and trade flows expansion. Excess liquidity, capital
markets activity, and overall sluggish loan demand pressure margins. We continue to prioritize
lower risk short term trade exposures, and individual exposure de-risking as client base broadens.
Asset quality remains strong, with Brazil NPL restructurings gaining momentum.
4
Individual
Countries
Local
Environment
Regional
Environment
Global
Environment
Latin America World
Mission and Vision
5
Latin America Trade
Source: IMF as of July 2017 and The Economist Intelligence as of August 2017
Highlights:
Stabilization/improvement in
raw materials prices
External demand expected to
increase in key global markets
Latin America 2017 trade flows
growth estimated at 8.5%
Watch out for:
Protectionist policies in the
U.S. and other countries
Recovery of exports
dependent on further
integration of the global supply
chain
6
Slowdown Stage Recessionary Stage Recovery or Acceleration Stage
Stable Stage
Brazil Argentina
Peru
Panama
Venezuela
Uruguay
Mexico
Dominican Republic
Ecuador
Costa Rica
Guatemala
Jamaica
Bolivia
Paraguay Honduras
Nicaragua
El Salvador
T&T
Colombia
Chile
Sources: Analysis of Economic Studies Bladex; Data: IMF, World Economic Outlook, July 2017; WTO.
2018 – Positive growth trend, with GDP estimated at 2.1% for the Region as a whole. Brazil finally gaining steam, pulling
Southern Cone countries along. Mexico under watch as NAFTA negotiations get under way, and 2018 elections loom.
Macroeconomic Perspective
7
Latin America – 2018: GDP Growth: 2.1% Trade Growth: 4.2% Commodities Index Variance: -0.7% Economies in recession: Ecuador and Venezuela (8% of Regional GDP)
Latin America – 2017: GDP Growth: 1.0% Trade Growth: 8.5% Commodities Index Variance: 10.8% Economies in recession: Ecuador and Venezuela (8% of Regional GDP)
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”), provide substantial
support and represent a direct link between the Bank and
the governments of the Region
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 8
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
Class A shareholders enjoy super-majority rights related to
changes in the Bank’s Articles of Incorporation
Class A shareholders 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 June 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
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
9
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)
9
REGIONS
CLIENT BASE
INDUSTRY
SECTORS
(1) Includes Argentina, Chile, Paraguay and Uruguay. (2) Includes Bolivia, Colombia, Ecuador, Peru and Venezuela
10
Business Profile
Commercial Portfolio remaining tenor of 271 days
80% of Commercial Portfolio with average maturity
of 116 days
Commercial portfolio greater than 1 year with
remaining maturity tenor of 2.4 years
Bladex’s portfolio continues to focus on trade
finance business*: low-risk asset class, with short-
dated exposures, and lower capital requirement,
but with slimmer margins
10
Commercial Portfolio by Type of Transaction Commercial Portfolio by Term
(*) Investment Securities Portfolio amounts to only 1% of assets as of June 30, 2017 (consisting of mostly sovereign or state-owned issuers). The Bank looks to
reduce its holdings to minimize market risk
Financial Institutions (“FIs”)
Commercial Portfolio Evolution
(average balances, US$ million)
Commercial Portfolio FIs
(As of June 30, 2017)
Bladex maintains relevant exposure with FIs even as client growth focuses on corporate sector
Bladex continues to be a valued partner to local banks, complementing service to corporate segments
with cross-border foreign trade products and services
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
11
Corporate Banking – Focus on Value Chain
Bladex continues to invest significant resources in Market Analysis and Segmentation to:
Identify a universe of potential clients, with focus on adding value to their trade supply chain
Study client business models to:
Offer tailored structured financial solutions to support the client´s trade value supply chain
Reinforce internal compliance practices (KYC), strengthen and speed-up client onboarding and credit
monitoring
Regional footprint allows focus on countries, sectors and clients with superior qualitative
fundaments:
Peru (office in Lima)
Colombia (office in Bogota)
Mexico (office in Mexico City)
Chile (from office in Buenos Aires)
Central America and the Caribbean (from headquarters in Panama)
Brazil (S. Paulo office)
Argentina (B. Aires office)
Very selective approach with constant monitoring
Size and segmentation of corporate
universe
Size of segments in each activity sector
Size the volume of value chains
Cross-border Analysis, countries of origin
and destination, value chains
Trade Flows Corporate Universe
Monitoring opportunities with strict focus on appropriate risk/return 12
Continued focus on
country risk
diversification
Increased exposure
to FIs due to "flight
to quality",
especially in Brazil
Corporate sector
weaker due to
ample market
liquidity, subdued
USD credit demand,
and internal focus
on de-risking and
client diversification
Commercial Portfolio – Key Highlights
13
Commercial Portfolio by Region Commercial Portfolio by Country
As of June 30, 2017
14
Commercial Portfolio – Exposure to Brasil
30Jun17
30Jun17 30Jun17
30Jun17
30Jun17
Commercial Portfolio – Exposure by Industry
Dynamic industry exposure management
focused on sectors with favorable terms-of-
trade
Oil & Gas exposure emphasizes integrated
companies; Upstream exposures remain at
multi-year lows
Commercial Portfolio remains very liquid
with 80% maturing within one year
15
Regional Exposure by Industry as of June 30, 2017
16
Commercial Portfolio – Asset Quality
Trade Finance is low-risk asset class, with short-dated exposures and superior loss performance
Bladex policy does not allow for meaningful net FX exposures, minimizing market risk
NPL and provisions for ECL stay confined to specific countries, industries and clients; Brazil represents 88% of all NPL exposure
Conservative loss reserves methodology (IFRS 9), pro-active loss prevention, and diligent recovery processes have mitigated
greater impact of the Region´s adverse credit cycle on the Bank’s profitability
Slow-paced ongoing restructuring negotiations continue to drive specific reserve requirements; however adverse credit cycle
poised to ease as GDP growth picks up, with provisions gradually reverting to generic reserves, in line with asset growth
requirements
16
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 – June 2017 37 Transactions
Dedicated team of 6 professionals
> US$3.4 bln in executed transactions
US$25.8 MM in total structured and syndicated commissions
Loan structuring and distribution fees of total fees & other income
from 6% as of 2011 to 30% as of 6M’17
Trajectory
17
Primary Market - Transactions 2011-Jun’17
18
2016 (10 transactions)
2017 (2 transactions)
2015 (7 transactions)
2014 (10 transactions)
2013 (5 transactions)
2012 (2 transactions)
2011 (1 transaction)
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
Record level of deposits at US$3.4 billion as of June 30,
2017, 63% of funding. 71% of deposits from central banks or
designees (Class A), providing a very resilient funding base
Funding Highlights Funding Sources and Cost of Funds
Deposits by Type of Client
(*) Original Currency: all non-
USD denominated liabilities
are hedged into US Dollars
with the exception of most
MXN issuances which fund
assets in the same currency.
As of June 30, 2017 As of June 30, 2017
19
As of June 30, 2017
Diversified Funding Sources Funding by Currency (*)
Liquidity – Conservative Management
As of June 30, 2017
Comfortable liquidity indicators:
US$ 771 Million
LCR = 1.08x
NSFR = 1.42x
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$1 billion in loans maturing
on a monthly basis
20
Liquidity Management Highlights Liquidity Placements
Liquidity Ratio Liquidity Coverage Ratio
(US$ million)
21
Key Indicators – P&L
Profit for the period
(US$ million) (US$ million, except percentages)
(US$ million) (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.
Key Indicators - Balance Sheet
22
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.
Return on Average Equity “ROAE” Return on Average Assets “ROAA”
Profitability and Solvency
Tier 1 Capital Ratio
23
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-Jun-2017 $5,048
(*) Not available under Basel III. Corresponds to Basel I
Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information
corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.
24
Key Financial Metrics
24
Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information
corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.
(*) Includes results from the participation of investment funds.
(In US$ million, except percentages) 2011 2012 2013 2014 2015 2016 6M17
Total Income $138.8 $137.4 $133.7 $167.6 $173.9 $168.0 $72.7
Business Profit $66.3 $83.5 $89.4 $99.7 $99.0 $91.5 $40.9
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 $40.9
EPS (US$) $2.25 $2.46 $2.21 $2.65 $2.67 $2.23 $1.04
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% 1.2%
Busines Return on Assets ("Business ROAA") 1.2% 1.4% 1.3% 1.3% 1.3% 1.2% 1.2%
Net Interest Margin ("NIM") 1.81% 1.70% 1.75% 1.88% 1.84% 2.08% 1.91%
Net Interest Spread ("NIS") 1.62% 1.44% 1.55% 1.72% 1.68% 1.84% 1.58%
Loan Portfolio 4,960 5,716 6,148 6,686 6,692 6,021 5,570
Commercial Portfolio 5,354 5,953 6,630 7,187 7,155 6,444 5,840
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% 2.06%
Non-Performing Loans to gross Loan Portfolio (%) 0.65% 0.00% 0.05% 0.06% 0.78% 1.09% 1.12%
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 1.9
Efficiency Ratio 36% 42% 41% 32% 30% 27% 33%
Market Capitalization 596 822 1,081 1,167 1,010 1,153 1,078
Total assets 6,360 6,756 7,471 8,022 8,286 7,181 6,422
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 6.3
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
Credit Ratings
Performance
Efficiency
Scale &
Capitalization
Portfolio Quality
Results (*)
Bladex Value Proposition to Shareholders
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
consensus valuations as of June
30, 2017:
10.0x P/E
1.0x P/BV
25
Dividends per Share
BLX Stock Price and Volume Evolution
26
Bladex’s stock price evolution 2003-2016
Bladex’s stock price evolution 2003-2016
27
Investment Highlights
28
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 LatAm
with solid track record
Trade Finance Bank with more
than 37 years covering LatAm
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
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: cdealvear@bladex.com
BRAZIL Rua Leopoldo Couto de Magalhäes
Junior 110, 1º andar
04542-000, Sao Paulo, Brazil
Tel: (55-11) 2198-9606
Contact: Roberto Kanegae
Email: rkanegae@bladex.com
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: abarrientos@bladex.com
PERU Dean Valdivia 243
Piso 7, Oficina 701
San Isidro, Lima
Tel: (511) 207-8800
Contact: Federico Field
Email: ffield@bladex.com
COLOMBIA Calle 113 # 7-45
Edificio Teleport Business Park
Torre B, Oficina 1008
Bogotá, Colombia
Tel: (57-1) 214-3677
Contact: Camilo Alvarado
Email: calvarado@bladex.com
UNITED STATES NEW YORK AGENCY
10 Bank Street, Suite 1220
White Plains, NY 10606
Tel: (001) 914-328-6640
Contacto: Pierre Dulin
Email: pdulin@bladex.com
Regional Presence
in Latin America
Investor Relations Contact
Irma Garrido Arango – SVP, Corporate
Development & Investor Relations
E-mail: igarrido@bladex.com
Tel.: (+507) 210-8559
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