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1. Company Snapshot

1.a. Company Description

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean.The company operates through two segments, Commercial and Treasury.


It offers short and medium-term bilateral loans, structured and syndicated credits, and loan commitments; financial guarantee contracts, such as issued and confirmed letters of credit, and stand-by letters of credit; and guarantees covering commercial risk and other assets, as well as co-financing arrangements, underwriting of syndicated credit facilities, structured trade financing in the form of factoring and vendor financing, and financial leasing.The company also provides treasury solutions, including term deposits and private placements.It primarily serves financial institutions, corporations, and sovereigns and state-owned entities.


The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A.in June 2009.


Banco Latinoamericano de Comercio Exterior, S.A.was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

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1.b. Last Insights on BLX

Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) has demonstrated robust performance over the recent three months, driven by a strong Q2 2025 earnings report. The bank reported a net profit of $64.2 million, or $1.73 per share, resulting in an annualized return on equity of 18.5%. A quarterly cash dividend of $0.625 per share was approved by the Board of Directors. Bladex also announced a new debt issuance in Mexico, raising MXN 4 billion. Additionally, the bank co-led a $205 million financing package for Tigo El Salvador to expand broadband infrastructure.

1.c. Company Highlights

2. Bladex Delivers Solid Q3 Results with Strong Capital Position and Revenue Growth

Bladex reported a robust financial performance in the third quarter, with revenues and earnings per share (EPS) exceeding expectations. EPS came in at $1.4, surpassing the estimated $1.07. The bank's net interest margin (NIM) slightly declined to 2.32%, but remains above the full-year guidance. The commercial portfolio balances were stable quarter-over-quarter and grew 12% year-over-year, driven by loan origination in key markets. Non-interest income performed well, with a 40% year-over-year increase, supported by strong activity in letters of credit and syndication.

Publication Date: Nov -24

📋 Highlights
  • Capital Strengthening via AT1 Instrument:: Issued $200 million perpetual non-call 7 AT1, boosting Basel III Tier 1 ratio to 18.1% and capital adequacy to 15.8%.
  • Deposit Growth:: Deposits rose 6% QoQ (21% YoY) to $6.8 billion, driven by corporate deposit expansion and cross-selling efforts.
  • Efficiency Improvement:: Efficiency ratio closed at 25.8%, exceeding guidance of 27%, with operating expenses at $21.3 million (+$0.5 million QoQ).
  • Credit Portfolio Expansion:: Total credit portfolio reached $12.3 billion (up 13% YoY), with commercial portfolio growth of 12% YoY to $10.9 billion.

Capital Position and Asset Quality

The bank's regulatory capital adequacy ratio rose to 15.8%, and the Basel III Tier 1 ratio increased to 18.1%, both comfortably above internal targets and regulatory minimums. Asset quality remains strong, with Stage 3 assets remaining very low. The bank has seen an increase in Stage 2 assets due to a single client, but has proactively provisioned for it, as noted by Jorge Salas, "We've proactively provisioned, and we're ratifying our guidance for the year."

Valuation and Outlook

Bladex's valuation metrics appear reasonable, with a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.16, considering its strong capital position and return on equity (ROE) of 16.38%. The Dividend Yield stands at 5.61%, providing an attractive income stream. Analysts estimate revenue growth at 7.1% for next year, indicating a positive outlook. With its solid financial performance, strong capital position, and attractive valuation, Bladex is well-positioned to navigate the current market environment.

Growth Opportunities

The bank is poised to capitalize on growth opportunities in Central America and is cautious in Argentina. With the successful issuance of its first Additional Tier 1 capital instrument, Bladex has strengthened its capital base and is expected to deploy the capital in risk-adjusted fee-accruing opportunities over the next 12-18 months. The bank's focus on trade finance expertise and growing project finance and infrastructure strategy are expected to drive future growth.

3. NewsRoom

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Boralex Inc. (BLX:CA) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Bladex Remains Attractive Given Record-Low Spreads

Oct -31

Source: seekingalpha.com

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Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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BLADEX ANNOUNCES QUARTERLY DIVIDEND PAYMENT FOR THIRD QUARTER 2025

Oct -28

Source: prnewswire.com

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BLADEX ANNOUNCES NET PROFITS OF $55.0 MILLION OR $1.48 PER SHARE IN 3Q25 AND $170.9 MILLION OR $4.60 PER SHARE IN 9M25

Oct -28

Source: prnewswire.com

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Bladex closes US$700 million syndicated loan as Joint Lead Arranger for YPF to finance its exports

Oct -28

Source: prnewswire.com

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Bladex Selects Nasdaq Calypso to Advance Treasury Operations and Drive Strategic Growth

Oct -28

Source: prnewswire.com

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Bladex´s Third Quarter 2025 Conference Call

Oct -17

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.22%)

6. Segments

Commercial

Expected Growth: 7%

Strong demand for trade finance in Latin America, driven by increasing regional trade and investment, coupled with Banco Latinoamericano de Comercio Exterior's expertise and established network, has contributed to its 7% growth. Additionally, the bank's diversified product offerings, including factoring and forfaiting, have helped to attract new clients and expand its market share.

Treasury

Expected Growth: 9%

Strong demand for trade finance in Latin America, driven by increasing regional trade and investment, fuels growth. Banco Latinoamericano de Comercio Exterior's Treasury segment benefits from its expertise in structured trade finance, competitive pricing, and established relationships with regional banks and corporations, resulting in a 9% growth rate.

7. Detailed Products

Trade Finance

Banco Latinoamericano de Comercio Exterior, S. A. offers trade finance solutions to facilitate international trade, including letter of credit, factoring, and forfaiting.

Cash Management

The bank provides cash management services, including account management, payment processing, and treasury services, to help clients optimize their working capital.

Risk Management

Banco Latinoamericano de Comercio Exterior, S. A. offers risk management solutions, including foreign exchange, interest rate, and commodity hedging, to mitigate market risks.

Project Finance

The bank provides project finance solutions to support large-scale infrastructure projects, including energy, transportation, and social infrastructure projects.

Corporate Lending

Banco Latinoamericano de Comercio Exterior, S. A. offers corporate lending solutions, including term loans, revolving credit facilities, and syndicated loans, to support business growth.

Treasury Services

The bank provides treasury services, including foreign exchange, money market, and securities services, to help clients manage their treasury operations.

8. Banco Latinoamericano de Comercio Exterior, S. A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Banco Latinoamericano de Comercio Exterior, S. A. operates in a niche market, providing trade financing services to Latin American countries. The threat of substitutes is medium, as there are few alternatives to trade financing services, but the bank's specialized services and expertise in the region reduce the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low, as Banco Latinoamericano de Comercio Exterior, S. A. provides specialized trade financing services that are not easily substitutable. Customers rely on the bank's expertise and services, giving the bank an upper hand in negotiations.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium, as Banco Latinoamericano de Comercio Exterior, S. A. relies on a network of correspondent banks and financial institutions to provide trade financing services. While the bank has some negotiating power, suppliers also have some bargaining power due to the specialized nature of the services provided.

Threat Of New Entrants

The threat of new entrants is low, as Banco Latinoamericano de Comercio Exterior, S. A. operates in a niche market that requires specialized expertise and knowledge of the Latin American trade financing market. Barriers to entry are high, and new entrants would face significant challenges in replicating the bank's services and expertise.

Intensity Of Rivalry

The intensity of rivalry is high, as Banco Latinoamericano de Comercio Exterior, S. A. operates in a competitive market with several established players. The bank must continually innovate and improve its services to maintain its market share and competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.48%
Debt Cost 9.31%
Equity Weight 20.52%
Equity Cost 9.79%
WACC 9.41%
Leverage 387.38%

11. Quality Control: Banco Latinoamericano de Comercio Exterior, S. A. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Bladex

A-Score: 7.2/10

Value: 4.8

Growth: 4.3

Quality: 5.6

Yield: 10.0

Momentum: 8.5

Volatility: 10.0

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Preferred Bank

A-Score: 7.1/10

Value: 7.0

Growth: 8.1

Quality: 7.4

Yield: 6.0

Momentum: 6.5

Volatility: 7.7

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OpenBank

A-Score: 7.0/10

Value: 7.7

Growth: 6.9

Quality: 6.7

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

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Westamerica

A-Score: 6.8/10

Value: 5.9

Growth: 6.3

Quality: 8.0

Yield: 7.0

Momentum: 5.0

Volatility: 8.7

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Banco di Desio Brianza

A-Score: 6.3/10

Value: 6.8

Growth: 4.4

Quality: 4.8

Yield: 8.8

Momentum: 8.5

Volatility: 4.3

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Vestjysk Bank

A-Score: 6.2/10

Value: 6.9

Growth: 2.8

Quality: 7.6

Yield: 8.1

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.65$

Current Price

44.65$

Potential

-0.00%

Expected Cash-Flows