1q2016 earnings presentation

1Q16 Earnings Results April 15, 2016

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“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 the 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 Bank’s ability to achieve future growth, 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; the possibility of fraud; and the adequacy of the

Bank’s sources of liquidity to replace large deposit withdrawals.”

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Financial Performance Overview

• Business Profit of $28.1 million (+11% QoQ and 2% YoY), on +5% QoQ and +10%YoY increase in

Net Interest Income from higher average lending rates (+34 bps QoQ, +48 bps YoY), as lending

spreads trended higher and increased market rates (LIBOR) were re-priced in our book.

• Net Profit of $23.4 million, (+1% QoQ, -22% YoY), from higher net interest income and lower

operating expenses, partially offset by negative non-core results mostly attributed to the Bank’s

participation in the investment funds. The Bank has since proceeded to redeem its entire interest in

the funds.

• Margins growth more than offset the effects of lower average lending balances and higher funding

costs from increased market rates. NIM reaches 2.06% (+16 bps QoQ and +22 bps YoY).

• Reserve coverage ratio increased to 1.40% (+7 bps QoQ and +15 bps YoY) on lower ending

balances and adjustments to account for expected lifetime credit losses regarding certain

exposures. Non-performing loan portfolio (NPL) amounted to $28 million, and the ratio of NPL to

gross loan portfolio reverted to 0.43%.

• Lower fee income & other income up +3% YoY, but down QoQ due to the absence of completed

transactions in the loan structuring and syndication business. Pipeline of mandated transactions is

strong as ever, with 8 transactions totaling $1.2 billion currently in the market.

• Expenses drop -6% QoQ and YoY, with Business Efficiency Ratio improving to 30%. Overall

Efficiency Ratio of 33% reflects decreased non-core income from funds.

• Board declared $0.385 quarterly dividend per share, as strong dividend yield continues.

1Q2016 Highlights:

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Key Financial Metrics

(1) Non-Core Income includes the net results from the participations of the investment funds recorded in the “gain (loss) per financial instrument at fair value through profit or loss”

line item and other expenses related to investment funds. The Feeder Fund is not consolidated in the Bank’s financial statements as a result of the evaluation of control as per IFRS

10 “Consolidated Financial Statements” according to which the existing rights do not give the Bank ability to direct the relevant activities of the fund.

(2) Adjusted EPS corresponds to earnings per share excluding non-core items.

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(In US$ million, except percentages) 1Q16 4Q15 1Q15 QoQ YoY

Business Profit $28.1 $25.3 $27.4 11% 2%

Non-Core Items (1) (4.7) (2.0) 2.4 n.m. n.m.

Net Profit $23.4 $23.2 $29.9 1% -22%

EPS (US$) $0.60 $0.60 $0.77 1% -22%

Adjusted EPS (US$) (2) $0.72 $0.65 $0.71 11% 2%

Return on Average Equity (ROAE) 9.6% 9.5% 13.0% 1% -26%

Business Return on Average Equity ("Business ROAE") 11.6% 10.4% 11.9% 11% -3%

Return on Average Assets (ROAA) 1.22% 1.17% 1.53% 4% -20%

Busines Return on Assets ("Business ROAA") 1.46% 1.27% 1.40% 15% 4%

Net Interest Margin ("NIM") 2.06% 1.90% 1.84% 8% 12%

Net Interest Spread ("NIS") 1.85% 1.72% 1.68% 8% 10%

Loan Portfolio 6,533 6,692 6,569 -2% -1%

Commercial Portfolio 6,914 7,155 7,093 -3% -3%

Total Allowance for expected Credit Losses to Commercial Portfolio 1.40% 1.33% 1.25% 5% 12%

Non-Performing Loans to Gross Loan Portfolio (%) 0.43% 0.78% 0.32% -45% 35%

Total Allowance for expected credit losses to Non-Performing Loans (x times) 3.4 1.8 4.2 89% -19%

Efficiency Ratio 33% 30% 31% 11% 7%

Business Efficiency Ratio 30% 29% 33% 4% -10%

Market Capitalization 945 1,010 1,276 -6% -26%

Assets 7,669 8,286 7,955 -7% -4%

Tier 1 Capital Ratio Basel III 15.9% 16.1% 16.4% -1% -3%

Leverage (times) 7.8 8.5 8.4 -8% -8%

"n.m.": not meaningful.

(*) End-of-period balances.

Results

Performance

Portfolio Quality (*)

Efficiency

Scale &

Capitalization (*)

Net Profit Evolution & Quality of Earnings

• 1Q16 Net Profit of $23.4 million, +$0.2

million (+1%) QoQ

• Business Profit of $28.1 million, +$2.8

million (+11%)

• Net gain on impairment from expected

credit losses on loans, contingencies and

on investment securities reflects no

further deterioration of credit spreads and

valuations

• Non-core items (-$2.6 million) reflect

increased losses from participation in

investment funds

• Net Profit variation of -$6.4 million (-22%)

YoY million mainly on swing in non-core

results which offset better core results as

Business Profit increased $0.7 million

(+2%)

5

Net Interest Income (NII) & Net Interest Margin (NIM)

• Increased Net Interest Income (+5% QoQ,

and +10% YoY), attributable to higher

average lending rates (+34 bps QoQ and

+48 bps YoY), mainly from higher lending

spreads and the re-pricing of assets to

pass on increased market rates

• Higher rates and spreads more than offset

the effects of lower average loan lending

balances (-4% QoQ and -2% YoY) and

higher cost of funds from increased

market rates (+12 pbs QoQ and +25 bps

YoY).

• NIM expansion accelerated, reaching

2.06% (+16 bps QoQ and +22 bps YoY).

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Commercial Portfolio

• Both average and end-of-period Commercial Portfolio balances

stood at approximately $6.9 billion as reductions of portfolio

balances in Brazil and parts of Central America & Caribbean were

partially offset by portfolio growth in Peru, Mexico, and Argentina.

• Average Commercial Portfolio exposures to financial institutions

represent 37%, with remaining 63% corresponding to non-

financial institutions with strong USD-generation capacity.

• 56% of total Commercial Portfolio is trade finance, with remaining

balance consisting primarily of lending to financial institutions and

corporations engaged in foreign trade.

• Short-term bias continues as 71% of the book is scheduled to

mature within one year. 7

Commercial Portfolio Exposure By Country and By Industry

• Broadly diversified across countries & industries.

• Brazil exposure at 21% of Commercial Portfolio, down from 23% in 4Q15 (-2 ppts. QoQ),

down from 27% in 1Q15 (-6 ppts. YoY).

• Exposure to financial institutions at 37%, (-2 ppts QoQ and same level YoY). Overall

exposure to Oil and Gas industry at 15%, (+3 ppts. QoQ and -1 ppts. YoY), attributable

to seasonal increase in the downstream and integrated sectors. 8

Commercial Portfolio – Brazil Exposure Update

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Upstream Integrated Downstream

Clients primarily focused on

Exploration

Production

Clients focused on:

Full Value chain,

from Upstream to

Downstream

Clients primarily focused on

Refining

Storage

Distribution

Oil & Gas Exposure Analysis

Bladex Outlook Negative Stable Positive

Rationale for Outlook • Lower margins

• Reduced cash flows

• Reduced investment

• Upstream impact mitigated by

positive outlook in

downstream activities

• Better refining margins

• Cost efficiency gains

Bladex Credit Exposure:

• Includes Commercial

Portfolio + Treasury Portfolio

(nominal values).

* 1Q16 Update:

• Total duration of 8 months.

• 6.1% is related to Treasury

Portfolio.

• 90% of Bonds are sovereign

risk (Brazil, Chile, Colombia,

Mexico, Trinidad & Tobago).

• $174MM

• 2% of Total Credit Portfolio

• 16% of O&G Exposure

• Concerted lender actions

• Mitigating factors:

Diversification in Gas

More competitive cost

base

53% of exposure is

contingent only (SBLCs)

• $391MM



• Import/export transactions


Strategic relevance / quasi-

gov´t entities

Local fuel price regimes

not tied to crude price

evolution

• $543MM



• Import transactions


Strategic relevance / quasi-

gov´t entities

Local fuel price regimes

not tied to crude price

evolution

Bladex exposure continues bias towards

quasi-sovereign counterparties and Integrated/Downstream market spectrum

Oil & Gas Credit Exposure

Year 1Q16 4Q15

Upstream 16% 18%

Integrated 35% 39%

Downstream 49% 43%

10

Credit Quality

• Non-performing loans (“NPL”) reverted to 0.43% of gross loan portfolio

• Allowance for expected credit losses to non-performing loans stood at 3.4

times, and covered 1.40% of total outstanding balances in the Commercial

Portfolio (+7 bps QoQ)

11

Off-balance Sheet Assets & Commission

and Intermediation Income

• Fees & Other income decreased 63% QoQ mainly as transactions in the loan

structuring and syndication business are pending completion, compared to three

mandated lead-arranger transactions closed in 4Q15

• Pipeline of transactions highest ever with 8 deals ($1.2 billion) in the market

• 3% YoY increase driven by higher commissions in the structuring and syndication

business 12

Operating Expenses and Efficiency Ratios

• Lower operating expenses (-6% QoQ &

YoY), on higher efficiency and F/X

savings in local currency

• Business Efficiency Ratio stood at 30%

(+1ppt. QoQ and -3ppt. YoY)

• 1Q16 Overall Efficiency Ratio increased

to 33%, due to non-core results from the

investment funds

13

ROAE and Capitalization

• QoQ ROAE variance mainly attributable to

improved core results.

• YoY ROAE variance mainly attributable to

swing in non-core results and net effects of

expected credit losses on loans, off-balance

sheet financial instruments and investment

securities

• Business ROAE evolution reflects solid core

business dynamics

• Tier 1 Basel III capitalization remains strong

at 15.9%, with variances to comparison

quarters mainly from increased risk weighted

assets reflecting market perception of risk in

the Region

14

Shareholder Returns

•Bladex’s stock price performance recovering from adverse market trends.

•Very attractive stock valuation at 9.7x (P/EPS) and 1.0x (P/BV) as at March 31, 2016.

•Stable dividend with yield well in excess of 5%.

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Questions & Answers

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Thank You

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1q2016 earnings presentation

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