Banco Latinoamericano de Comercio Exterior (BLX) Q4 2025 earnings summary

Executive summary

• Achieved fourth consecutive year of record results, with net income reaching $227 million for FY 2025, up 10% year-over-year, and all 2025 guidance metrics met despite global volatility and declining rates.

• Commercial portfolio grew 11.5% year-over-year to $11.2B, with strong loan and contingent portfolio expansion.

• Deposits increased 22% year-over-year to $6.6B, now 62% of total funding, and Yankee CD program reached $1.5 billion.

• Non-interest income hit a record $68.4M, up 54% year-over-year, supporting revenue diversification.

• Successfully completed first AT1 issuance, strengthening capital structure.

Financial highlights

• Net interest income grew 5% year-over-year to $271.2 million, supported by volume growth and active balance sheet management.

• Net interest margin for 2025 was 2.36%, above guidance but down 11 bps year-over-year.

• Efficiency ratio was 26.7% for 2025, reflecting cost discipline and aligned with guidance.

• Adjusted ROE for 2025 was 15.8%, with Q4 adjusted ROE at 14.2%.

• ROA for FY 2025 was 1.9%, stable year-over-year.

Outlook and guidance

• 2026 expected as a transition year, with commercial portfolio and deposit growth guidance of 13%-15%.

• Net interest margin expected around 2.3%, efficiency ratio near 28%, and ROE between 14%-15%.

• Fee income for 2026 targeted at 18%-20% of total revenues, similar to 2025.

• Tier I capital ratio guidance set at 15–16%.

• Two additional rate cuts anticipated in 2026, with continued focus on disciplined growth and risk management.