Presentation for Singular Research Annual Conference (Chicago Midwestern Values 2017) (Chicago, IL)

Banco Latinoamericano de Comercio Exterior, S.A.

CORPORATE PRESENTATION

Information as of June 30, 2017

Chicago Midwestern Values 2017 Conference

Chicago, September 20th, 2017

Disclaimer

“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 improving 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 volatility of the Bank’s Treasury trading revenues; the Bank’s ability to achieve future growth and increase its

number of clients, 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; existing and future governmental banking and tax regulations; the possibility of fraud; and the

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

2

Agenda

3

2017 Outlook 4

Mission and Vision 5

Latin America Trade and Macroeconomic Perspectives 6

Profile and Shareholding Structure 8

Value Proposition with Strong Business Fundamentals 9

Business Profile and Commercial Portfolio 10

Structuring and Asset Distribution 17

Funding Sources and Liquidity 19

Key Indicators 21

Business Value Proposition for Shareholders 25

• Target Commercial Portfolio balances of $6.4 billion by Y/E, with emphasis on short-term foreign

trade transactions

• Continued de-concentration of risks and diversification of exposures (countries, sectors and

clients) as focus shifts to broaden client base

• Commission income benefitting from recovery of demand for letters of credit, and solid

execution in the syndications market

• Maintain strict focus on cost control, with efficiency levels around 30%

• Forward looking approach to constitute credit provisions based on expected losses … NPL

leveling off as restructurings progress

• RoAE at high single digit and very strong capitalization, with aim to get back to two digit levels in

2018 as portfolio growth gathers speed

• Dividend payouts continue to aim for solid dividend yield

2017 Outlook

2017 portfolio growth expectations have not been met to date. Region showing only modest

improvement in terms of average GDP growth, and trade flows expansion. Excess liquidity, capital

markets activity, and overall sluggish loan demand pressure margins. We continue to prioritize

lower risk short term trade exposures, and individual exposure de-risking as client base broadens.

Asset quality remains strong, with Brazil NPL restructurings gaining momentum.

4

Individual

Countries

Local

Environment

Regional

Environment

Global

Environment

Latin America World

Mission and Vision

5

Latin America Trade

Source: IMF as of July 2017 and The Economist Intelligence as of August 2017

Highlights:

Stabilization/improvement in

raw materials prices

External demand expected to

increase in key global markets

Latin America 2017 trade flows

growth estimated at 8.5%

Watch out for:

Protectionist policies in the

U.S. and other countries

Recovery of exports

dependent on further

integration of the global supply

chain

6

Slowdown Stage Recessionary Stage Recovery or Acceleration Stage

Stable Stage

Brazil Argentina

Peru

Panama

Venezuela

Uruguay

Mexico

Dominican Republic

Ecuador

Costa Rica

Guatemala

Jamaica

Bolivia

Paraguay Honduras

Nicaragua

El Salvador

T&T

Colombia

Chile

Sources: Analysis of Economic Studies Bladex; Data: IMF, World Economic Outlook, July 2017; WTO.

2018 – Positive growth trend, with GDP estimated at 2.1% for the Region as a whole. Brazil finally gaining steam, pulling

Southern Cone countries along. Mexico under watch as NAFTA negotiations get under way, and 2018 elections loom.

Macroeconomic Perspective

7

Latin America – 2018: GDP Growth: 2.1% Trade Growth: 4.2% Commodities Index Variance: -0.7% Economies in recession: Ecuador and Venezuela (8% of Regional GDP)

Latin America – 2017: GDP Growth: 1.0% Trade Growth: 8.5% Commodities Index Variance: 10.8% Economies in recession: Ecuador and Venezuela (8% of Regional GDP)

Profile and Shareholding Structure

Unique Profile

Bladex is the Latin American Trade Finance Bank, providing

integrated financial solutions across Latin America’s foreign

trade value chain

First Latin American bank to be listed on the NYSE and to

be rated Investment Grade (both in 1992). Subject to laws,

regulations and guidelines of U.S. Securities Act of the SEC

and the NYSE

Class “A” shareholders, Central Banks or designees from

23 Latin America countries (“LatAm”), provide substantial

support and represent a direct link between the Bank and

the governments of the Region

Multi-national DNA embedded in its ownership structure,

regional presence management and organizational culture.

Bladex has representative offices in Argentina, Brazil,

Colombia, Mexico and Peru and is subject to supervision

by regulatory authorities in these jurisdictions

Through its New York Agency, Bladex is subject to the

applicable laws and regulations of financial entities

operating in the USA. Supervision of the Federal Reserve

Bank of the United States of America (FED) and The New

York State Department of Financial Services (NYSDFS)

The Bank, through its commercial activities and diversified

sources of funding, is supervised by various regulatory

entities in different countries such as United States, Mexico

and Japan, among others

Corporate Governance that reflects world standard best

practices

While headquartered in Panama, Bladex’s book of

business, liquidity and funding are largely independent of

the Panamanian Banking System 8

Class A shareholders provide substantial support to Bladex,

representing a direct link between the Bank and the

governments of Latin America

–most of which have granted preferred creditor status to the

Bank– and also constitute the main source of deposits, a very

reliable funding source

Class A shareholders enjoy super-majority rights related to

changes in the Bank’s Articles of Incorporation

Class A shareholders can only sell shares to other class A

shareholders, thus maintaining the essence of the existing

shareholder structure and ensuring support from central banks

Unique Shareholding Structure

Board of Directors Composition

Board of

Directors is

distinguished by

its

independence

and diversity

Out of 10

Directors

(including the

Bank’s CEO), 8

are independent

Class A – Central

Banks or designees

from 23 LatAm

countries

Class B – LatAm &

international banks

and financial

institutions

Class E – Public Float

(NYSE listed)

As of June 30, 2017

Shareholder Composition

Value Proposition with Strong Business Fundamentals

Business Value Proposition Strong Underlying Business Fundamentals

Business Products & Services Multi-Pronged Business Segmentation

Global provider of natural

resources with positive

demographics

Sustained growth

and sound

economic

policies

Deep knowledge of

Latin America

Core competency in

trade finance

Support of

Investment &

Regional Integration

Efficient Measurement

and Management

In-depth knowledge of Latin America’s local markets

Backed by 23 Latin American governments

Vast correspondent banking network throughout

LatAm & other regions of the world

Uniquely qualified staff with strong product expertise in

Trade Value Chain, Cross-border Finance, Supply-side

& Distribution, both intra-regional and inter-regional

Efficient organizational structure

LEAN, client focused efficient organizational structure

Single point of contact, providing client-specific

solutions, and focused on long-term relationships

Driver of progress, economic

growth and development

Supporting

specialization in

both primary and

manufacturing

sectors

Enhancing LatAm’s

role in global and

regional value chains

Growth of ‘Multi-latinas’ as

drivers of business expansion

Supporting business

integration boosted by

free trade agreements

Bladex’s products and services are categorized into three main areas: i) Financial

Intermediation, ii) Structuring and Syndications and iii) Treasury

Financial Intermediation

Syndication and Structuring

Treasury

Trade: Foreign trade products – short and to a lesser extent, medium term

instruments that help drive the cross-border activity of corporations

Working Capital: Support provided to trade finance clients throughout the entire

production cycle chain, across a wide range of primary, secondary and tertiary

activity sectors. Structured Credit and lending facilities for mainly short term

financing of supply chain, materials & equipment, and inventories

Financial solutions designed to meet clients' needs mostly in medium-term tenor

Provides access to structured funding for a wide base of financial institutions and

companies in Latin America

Debt capital market and deposit products for investment and cash flow optimization

Treasury services

World-Class Standards in Corporate Governance

Enterprise-Wide Risk Management

9

Financial Institutions Among top 10 in their

respective markets

Significant corporate

banking activity / client

base

Corporations US Dollar generation

capacity

Growth oriented beyond

domestic market

Focus on the high and

medium corporate

segments of each

industry

Focus on Strategic Sectors for the Region Agribusiness, Oil & Gas (mainly integrated),

Metals & Mining, Food processing and other

Manufacturing

Regional Focus Mexico

Central America and The

Caribbean

Brazil

South America

• Southern Cone (1)

• Andean Region (2)

9

REGIONS

CLIENT BASE

INDUSTRY

SECTORS

(1) Includes Argentina, Chile, Paraguay and Uruguay. (2) Includes Bolivia, Colombia, Ecuador, Peru and Venezuela

10

Business Profile

Commercial Portfolio remaining tenor of 271 days

80% of Commercial Portfolio with average maturity

of 116 days

Commercial portfolio greater than 1 year with

remaining maturity tenor of 2.4 years

Bladex’s portfolio continues to focus on trade

finance business*: low-risk asset class, with short-

dated exposures, and lower capital requirement,

but with slimmer margins

10

Commercial Portfolio by Type of Transaction Commercial Portfolio by Term

(*) Investment Securities Portfolio amounts to only 1% of assets as of June 30, 2017 (consisting of mostly sovereign or state-owned issuers). The Bank looks to

reduce its holdings to minimize market risk

Financial Institutions (“FIs”)

Commercial Portfolio Evolution

(average balances, US$ million)

Commercial Portfolio FIs

(As of June 30, 2017)

Bladex maintains relevant exposure with FIs even as client growth focuses on corporate sector

Bladex continues to be a valued partner to local banks, complementing service to corporate segments

with cross-border foreign trade products and services

Bladex-led syndications offer diversified access to financing to clients, and brings solid corporate credits

to participating banks looking to broaden and enhance their lending portfolio

11

Corporate Banking – Focus on Value Chain

Bladex continues to invest significant resources in Market Analysis and Segmentation to:

Identify a universe of potential clients, with focus on adding value to their trade supply chain

Study client business models to:

Offer tailored structured financial solutions to support the client´s trade value supply chain

Reinforce internal compliance practices (KYC), strengthen and speed-up client onboarding and credit

monitoring

Regional footprint allows focus on countries, sectors and clients with superior qualitative

fundaments:

Peru (office in Lima)

Colombia (office in Bogota)

Mexico (office in Mexico City)

Chile (from office in Buenos Aires)

Central America and the Caribbean (from headquarters in Panama)

Brazil (S. Paulo office)

Argentina (B. Aires office)

Very selective approach with constant monitoring

Size and segmentation of corporate

universe

Size of segments in each activity sector

Size the volume of value chains

Cross-border Analysis, countries of origin

and destination, value chains

Trade Flows Corporate Universe

Monitoring opportunities with strict focus on appropriate risk/return 12

Continued focus on

country risk

diversification

Increased exposure

to FIs due to "flight

to quality",

especially in Brazil

Corporate sector

weaker due to

ample market

liquidity, subdued

USD credit demand,

and internal focus

on de-risking and

client diversification

Commercial Portfolio – Key Highlights

13

Commercial Portfolio by Region Commercial Portfolio by Country

As of June 30, 2017

14

Commercial Portfolio – Exposure to Brasil

30Jun17

30Jun17 30Jun17

30Jun17

30Jun17

Commercial Portfolio – Exposure by Industry

Dynamic industry exposure management

focused on sectors with favorable terms-of-

trade

Oil & Gas exposure emphasizes integrated

companies; Upstream exposures remain at

multi-year lows

Commercial Portfolio remains very liquid

with 80% maturing within one year

15

Regional Exposure by Industry as of June 30, 2017

16

Commercial Portfolio – Asset Quality

Trade Finance is low-risk asset class, with short-dated exposures and superior loss performance

Bladex policy does not allow for meaningful net FX exposures, minimizing market risk

NPL and provisions for ECL stay confined to specific countries, industries and clients; Brazil represents 88% of all NPL exposure

Conservative loss reserves methodology (IFRS 9), pro-active loss prevention, and diligent recovery processes have mitigated

greater impact of the Region´s adverse credit cycle on the Bank’s profitability

Slow-paced ongoing restructuring negotiations continue to drive specific reserve requirements; however adverse credit cycle

poised to ease as GDP growth picks up, with provisions gradually reverting to generic reserves, in line with asset growth

requirements

16

Structuring and Loan Distribution

Broad scope of operations with transactions

executed in 12 countries: Germany, Mexico,

Guatemala, Honduras, Costa Rica, Panama, Dominican

Republic, Colombia, Peru, Ecuador, Brazil and Paraguay

Diverse roster of clients and industry sectors: 21

Financial Institutions and 16 Corporations in multiple

industrial sectors (agriculture, packaging, refractory,

steel, cement, power and cable)

Established access to capital linking clients with 74

participating counterparties world-wide: Central

America, Caribbean, South America, USA, Canada,

Taiwan, China, Japan, Europe and Israel

Supported multiple types of transactions: Trade,

Working Capital, Bridge Loans, Acquisition Finance, Pre-

export, A/B loans, and Liability Management

transactions

2011 – June 2017 37 Transactions

Dedicated team of 6 professionals

> US$3.4 bln in executed transactions

US$25.8 MM in total structured and syndicated commissions

Loan structuring and distribution fees of total fees & other income

from 6% as of 2011 to 30% as of 6M’17

Trajectory

17

Primary Market - Transactions 2011-Jun’17

18

2016 (10 transactions)






2011 (1 transaction)

Funding Sources – Regional and Global Diversification

Proven capacity to secure funding and maintain high liquidity

levels

Focus on increased diversification of global and regional

funding sources regarding client base, geography and

currency. Broad access to debt capital markets through

public and private debt issuance programs in USD and other

currencies, as well as to global loan syndications

The Bank relies primarily on deposits to cover its short-term

funding needs as the lending book moved towards shorter

tenors, while increasing overall funding stability with medium

and long-term funding maintaining competitive funding costs

Record level of deposits at US$3.4 billion as of June 30,

2017, 63% of funding. 71% of deposits from central banks or

designees (Class A), providing a very resilient funding base

Funding Highlights Funding Sources and Cost of Funds

Deposits by Type of Client

(*) Original Currency: all non-

USD denominated liabilities

are hedged into US Dollars

with the exception of most

MXN issuances which fund

assets in the same currency.

As of June 30, 2017 As of June 30, 2017

19

As of June 30, 2017

Diversified Funding Sources Funding by Currency (*)

Liquidity – Conservative Management

As of June 30, 2017

Comfortable liquidity indicators:

US$ 771 Million

LCR = 1.08x

NSFR = 1.42x

Liquid assets are invested with the Federal Reserve and

top-tier banks

Short term trade commercial portfolio of high quality and

liquidity, with approximately US$1 billion in loans maturing

on a monthly basis

20

Liquidity Management Highlights Liquidity Placements

Liquidity Ratio Liquidity Coverage Ratio

(US$ million)

21

Key Indicators – P&L

Profit for the period

(US$ million) (US$ million, except percentages)

(US$ million) (US$ million, except percentages)

Fees and Other Income Efficiency Ratio

Net Interest Income & Margin

Note: Financial Information from 2014 to date were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB. The financial information

corresponding to the years 2011 - 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

Key Indicators - Balance Sheet

22

Total Assets Loan Portfolio

Deposits Stockholder’s Equity

(US$ million)

(US$ million) (US$ million)

(US$ million)


corresponding to the years 2011 - 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

Return on Average Equity “ROAE” Return on Average Assets “ROAA”

Profitability and Solvency

Tier 1 Capital Ratio

23

Risk Weighted Assets – Basel III

(US$ million)

2011 (*) $4,090

2012 (*) $4,609

2013 (*) $5,473

2014 $5,914

2015 $6,104

2016 $5,662

30-Jun-2017 $5,048

(*) Not available under Basel III. Corresponds to Basel I


corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

24

Key Financial Metrics

24


corresponding to the years 2011 to 2013 follows the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRS from US-GAAP in 2015.

(*) Includes results from the participation of investment funds.

(In US$ million, except percentages) 2011 2012 2013 2014 2015 2016 6M17

Total Income $138.8 $137.4 $133.7 $167.6 $173.9 $168.0 $72.7

Business Profit $66.3 $83.5 $89.4 $99.7 $99.0 $91.5 $40.9

Non-Core Items 16.9 9.5 (4.6) 2.7 5.0 (4.5) -

Net Profit $83.2 $93.0 $84.8 $102.4 $104.0 $87.0 $40.9

EPS (US$) $2.25 $2.46 $2.21 $2.65 $2.67 $2.23 $1.04

Return on Average Equity (ROAE) 11.4% 11.6% 10.0% 11.5% 11.0% 8.8% 8.1%

Business Return on Average Equity ("Business ROAE") 9.1% 10.4% 10.6% 11.2% 10.4% 9.2% 8.1%

Return on Average Assets (ROAA) 1.5% 1.5% 1.2% 1.4% 1.3% 1.2% 1.2%

Busines Return on Assets ("Business ROAA") 1.2% 1.4% 1.3% 1.3% 1.3% 1.2% 1.2%

Net Interest Margin ("NIM") 1.81% 1.70% 1.75% 1.88% 1.84% 2.08% 1.91%

Net Interest Spread ("NIS") 1.62% 1.44% 1.55% 1.72% 1.68% 1.84% 1.58%

Loan Portfolio 4,960 5,716 6,148 6,686 6,692 6,021 5,570

Commercial Portfolio 5,354 5,953 6,630 7,187 7,155 6,444 5,840

Allowance for expected credit losses on loans, loan commitments and

financial guarantee contracts to Commercial Portfolio (%) 1.82% 1.31% 1.18% 1.22% 1.33% 1.73% 2.06%

Non-Performing Loans to gross Loan Portfolio (%) 0.65% 0.00% 0.05% 0.06% 0.78% 1.09% 1.12%

Allowance for expected credit losses on loans, loan commitments and

financial guarantee contracts to Non-Performing Loans (x times) 3.0 0.0 25.0 21.7 1.8 1.7 1.9

Efficiency Ratio 36% 42% 41% 32% 30% 27% 33%

Market Capitalization 596 822 1,081 1,167 1,010 1,153 1,078

Total assets 6,360 6,756 7,471 8,022 8,286 7,181 6,422

Tier 1 Capital Ratio Basel III (Basel I for years 2011-2013) 18.6% 17.9% 15.9% 15.5% 16.1% 17.9% 20.3%

Leverage 8.4 8.2 8.7 8.8 8.5 7.1 6.3

Moody's Investor Services Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2 Baa2/P-2

S&P Global Ratings BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2 BBB/A-2

Fitch Ratings BBB/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2 BBB+/F2

Credit Ratings

Performance

Efficiency

Scale &

Capitalization

Portfolio Quality

Results (*)

Bladex Value Proposition to Shareholders

Bladex offers investors access to an

entire continent with improving long-

term growth prospects

Business model provides diversified

exposure to emerging markets, with

well mitigated credit, market, &

operational risks

Book value and dividend growth

underpins share price

Committed to total shareholder return

(“TSR”). Attractive dividend yield

(steadily above 5%) with a pay-out

target that preserves a robust capital

base

Attractive 12-month forward

consensus valuations as of June

30, 2017:

10.0x P/E

1.0x P/BV

25

Dividends per Share

BLX Stock Price and Volume Evolution

26

Bladex’s stock price evolution 2003-2016

Bladex’s stock price evolution 2003-2016

27

Investment Highlights

28

Diversified Commercial Portfolio with robust asset quality

Defined Strategy to Achieve Sustainable Growth

Diversified funding & conservative liquidity management

Experienced management and conservative risk management

practices

Compelling Returns sustained by strong and reliable performance metrics

Leading Franchise in LatAm

with solid track record

Trade Finance Bank with more

than 37 years covering LatAm

Investment grade profile with

strong and unique shareholding

structure

Deep knowledge of LatAm with

core in trade finance

Strategically positioned to identify

and deliver on growth

opportunities

Portfolio strategy focused on

diversification and sustainable

growth

Strong asset quality

management

Increased diversification of regional

and global funding sources

Advanced liquidity management

operating under Basel III framework

Sustained income growth

Fee generation growth through

diversification

Continued efficiency gains

Attractive returns though the

cycle

Seasoned senior management

World-Class standards in

Corporate Governance, focused

on enterprise-wide risk

management

PANAMA HEAD OFFICE Torre V, Business Park

Ave. La Rotonda, Costa del Este

Apartado 0819-08730

Panamá, República de Panamá

Tel: (507) 210-8500

ARGENTINA Av. Corrientes 222 –P.18º

(1043AAP) Capital Federal

Buenos Aires, Argentina

Tel: (54-11) 4331-2535

Contacto: Carlos de Alvear

Email: [email protected]

BRAZIL Rua Leopoldo Couto de Magalhäes

Junior 110, 1º andar

04542-000, Sao Paulo, Brazil

Tel: (55-11) 2198-9606

Contact: Roberto Kanegae


MEXICO Rubén Darío 281, piso 15, Oficina #1501

Colonia Bosque de Chapultepec

CP. 11580, México D.F.

Tel: (52-55) 5280-0822

Contact: Alejandro Barrientos


PERU Dean Valdivia 243

Piso 7, Oficina 701

San Isidro, Lima

Tel: (511) 207-8800

Contact: Federico Field


COLOMBIA Calle 113 # 7-45

Edificio Teleport Business Park

Torre B, Oficina 1008

Bogotá, Colombia

Tel: (57-1) 214-3677

Contact: Camilo Alvarado


UNITED STATES NEW YORK AGENCY

10 Bank Street, Suite 1220

White Plains, NY 10606

Tel: (001) 914-328-6640

Contacto: Pierre Dulin


Regional Presence

in Latin America

Investor Relations Contact

Irma Garrido Arango – SVP, Corporate

Development & Investor Relations

E-mail: [email protected]

Tel.: (+507) 210-8559

mailto:[email protected]





