Banco Latinoamericano de Comercio Exterior (BLX) Q3 2024 earnings summary

Executive summary

• Achieved record net income of $53 million for Q3 2024, up 16% year-over-year and 6% quarter-on-quarter, with ROE at 16.4% and ROA at 1.9%.

• Commercial portfolio reached $9.7 billion, growing 5% sequentially and 17% year-over-year; deposits hit a record $5.6 billion, up 34% year-over-year.

• Strategic plan execution continues to drive profitability, with new platforms for trade finance and treasury underway and 9M24 ROE at 16.4%.

• Non-interest income for the first nine months rose 45% year-over-year, driven by strong fee and letter of credit business.

• Credit portfolio and commercial portfolio both hit all-time highs, reflecting strong demand and new client onboarding.

Financial highlights

• Net income for the first nine months reached $154.4 million, a 29% increase year-over-year.

• Net interest income for Q3 was $66.6 million, up 10% year-over-year and 6% quarter-on-quarter.

• Fee income for Q3 was $10.5 million; letter of credit fees were close to $7 million, with 9M24 fee income up 45% year-over-year.

• Efficiency ratio stood at 27.1% for Q3 and 25.6% for 9M24, in line with guidance.

• Total assets as of September 30, 2024, were $11.4 billion, up 13% year-over-year; total equity was $1.31 billion, up 13% year-over-year.

Outlook and guidance

• Commercial portfolio growth for 2024 now expected to be close to 14–16%.

• Deposit growth guidance revised upward to 30% for the year.

• Efficiency ratio expected to improve to approximately 26% by year-end.

• ROE guidance for 2024 raised to 15%-16% from 14%-15%.

• Non-interest income targeted to reach 18% of total revenues by 2026, up from 13% currently.

• Strategic plan targets optimized leverage, expanded customer base, increased deposits, and improved operational efficiency.