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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.'s recent performance was positively driven by its solid Q4 2025 earnings, with net profits of $56.0 million or $1.50 per share. The company's 2025 results also showed a significant increase, with net profits of $226.9 million or $6.11 per share. Additionally, Bladex's Board of Directors approved a quarterly cash dividend increase to $0.6875 per share, reflecting its record financial performance. The company's Investor Day highlighted its 2030 strategy, focusing on sustainable growth, higher returns, and a diversified transactional banking platform.

1.c. Company Highlights

2. Bladex's Record 2025 Results: A Strong Foundation for Future Growth

Bladex reported a net income of $227 million in 2025, representing a 10% year-over-year increase, with a return on equity (ROE) of 15.4%. The bank's net interest income reached a record $236 million, up 5% year-over-year, driven by an 11.5% growth in the commercial portfolio. Earnings per share (EPS) came in at $1.4, beating analyst estimates of $1.07. The bank's efficiency ratio was 26.7%, within guidance, and noninterest income set a new record, growing 54% year-over-year to $68.4 million.

Publication Date: Feb -24

📋 Highlights
  • Record Net Income & ROE:: Net income reached $227 million (↑10% YoY), with ROE of 15.4%, reflecting sustained profitability.
  • Commercial Portfolio Expansion:: Total credit portfolio hit $12.6 billion (↑12% YoY), driven by 11% loan growth and 20% contingents surge.
  • Noninterest Income Surge:: Noninterest income hit $68.4 million (↑54% YoY), contributing 20% of total revenues, signaling diversification success.
  • Efficiency & Guidance:: Efficiency ratio at 26.7% (in line with guidance), with 2026 targets: 13-15% portfolio growth, 14-15% ROE, and 28% efficiency ratio.
  • Geographic & Strategic Focus:: Guatemala and Argentina as growth drivers; 70% portfolio maturing in <1 year, enabling agile risk-adjusted opportunities.

Financial Performance Highlights

The bank's commercial portfolio grew 11.5% year-over-year, driven by an 11% increase in loans and a 20% increase in contingents. The total credit portfolio reached $12.6 billion, representing 12% year-over-year growth. The investment portfolio totaled $1.4 billion, with 91% investment-grade exposure. Liquidity closed the quarter at $1.9 billion, representing 15% of total assets.

Guidance and Outlook for 2026

Bladex expects continued commercial portfolio growth, further improvement in funding mix, and increasing contribution from fee-based income to support profitability and returns in 2026. The bank guided for a commercial portfolio growth of 13-15%, average deposit growth at a similar pace, net interest margin around 2.3%, and an efficiency ratio in the 28% area. ROE is expected to be between 14% and 15%, and Tier 1 capital will be in the 15% to 16% range.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.1, Bladex's valuation appears reasonable. The bank's dividend yield stands at 5.07%, providing an attractive return for income-focused investors. The bank's strong capital base, with a Tier 1 capital ratio expected to be between 15% and 16% in 2026, positions it well to capture opportunities in the secondary loan market and drive growth.

Growth Drivers and Opportunities

The bank's performance in 2025 reflects stronger diversification, disciplined execution, and growing momentum across trade finance, restructuring, commitment, and treasury-related activities. Countries expected to drive growth include Guatemala and Argentina. The bank's portfolio is dynamic, with 70% of it maturing in less than a year, allowing for constant reshuffling to maximize risk-return exposures. The bank expects fee income to play a progressively larger and more stable role in its earnings profile, with similar fee income expected in 2026 compared to 2025.

3. NewsRoom

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Bladex's First Quarter 2026 Conference Call

Apr -13

Source: prnewswire.com

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Banco Latinoamericano de Comercio Exterior, S. A. (BLX) Analyst/Investor Day Transcript

Mar -30

Source: seekingalpha.com

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Short Interest in Banco Latinoamericano de Comercio Exterior, S.A. (NYSE:BLX) Grows By 140.5%

Mar -26

Source: defenseworld.net

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Bladex Outlines 2030 Strategy to Drive Sustainable Growth and Higher Returns at Investor Day

Mar -25

Source: prnewswire.com

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Boralex (TSE:BLX) Shares Cross Above 200-Day Moving Average – Time to Sell?

Mar -18

Source: defenseworld.net

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Boralex (TSE:BLX) Stock Passes Above Two Hundred Day Moving Average – Time to Sell?

Mar -10

Source: defenseworld.net

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Boralex Q4 Earnings Call Highlights

Mar -01

Source: defenseworld.net

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Boralex Inc. (BLX:CA) Q4 2025 Earnings Call Transcript

Feb -27

Source: seekingalpha.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

Stock-Card
Preferred Bank

A-Score: 7.0/10

Value: 7.1

Growth: 8.1

Quality: 7.5

Yield: 6.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Bladex

A-Score: 7.0/10

Value: 4.9

Growth: 4.1

Quality: 5.6

Yield: 10.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Westamerica

A-Score: 6.6/10

Value: 6.3

Growth: 6.2

Quality: 8.5

Yield: 7.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Vestjysk Bank

A-Score: 6.2/10

Value: 5.1

Growth: 3.2

Quality: 7.3

Yield: 8.1

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Banco di Desio Brianza

A-Score: 6.0/10

Value: 5.5

Growth: 5.1

Quality: 4.5

Yield: 8.1

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
OpenBank

A-Score: 5.7/10

Value: 6.6

Growth: 6.9

Quality: 5.8

Yield: 7.0

Momentum: 1.5

Volatility: 6.7

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

55.87$

Current Price

55.87$

Potential

-0.00%

Expected Cash-Flows