Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | FOREIGN TRADE BANK OF LATIN AMERICA, INC. |
Entity Central Index Key | 0000890541 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Trading Symbol | BLX |
Title of 12(b) Security | Class E Common Stock |
Security Exchange Name | NYSE |
Entity Shell Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 39,677,940 |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 6,342,189 |
Common Class B [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2,178,365 |
Common Class E [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 31,157,386 |
Common Class F [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated statement of finan
Consolidated statement of financial position - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 863,812 | $ 1,178,170 |
Securities and other financial assets, net | 398,068 | 88,794 |
Loans, net | 4,896,647 | 5,823,333 |
Customers' liabilities under acceptances | 74,366 | 115,682 |
Derivative financial instruments - assets | 27,778 | 11,157 |
Equipment and leasehold improvements, net | 16,213 | 18,752 |
Intangibles, net | 1,984 | 1,427 |
Investment properties | 3,214 | 3,494 |
Other assets | 6,816 | 8,857 |
Total asset | 6,288,898 | 7,249,666 |
Liabilities: | ||
Demand deposits | 170,660 | 85,786 |
Time deposits | 2,968,240 | 2,802,550 |
Demand and Time Deposits Excluding Interest Payable | 3,138,900 | 2,888,336 |
Interest payable | 1,975 | 5,219 |
Total deposits | 3,140,875 | 2,893,555 |
Securities sold under repurchase agreements | 10,663 | 40,530 |
Borrowings and debt, net | 1,985,070 | 3,138,310 |
Interest payable | 9,175 | 10,554 |
Acceptance outstanding | 74,366 | 115,682 |
Derivative financial instruments - liabilities | 9,211 | 14,675 |
Allowance for loan commitments and financial guarantees contracts losses | 2,904 | 3,044 |
Other liabilities | 18,714 | 17,149 |
Total liabilities | 5,250,978 | 6,233,499 |
Equity: | ||
Common stock | 279,980 | 279,980 |
Treasury stock | (57,999) | (59,669) |
Additional paid-in capital in excess of value assigned to common stock | 120,414 | 120,362 |
Capital reserves | 95,210 | 95,210 |
Regulatory reserves | 136,019 | 136,019 |
Retained earnings | 464,088 | 446,083 |
Other comprehensive income (loss) | 208 | (1,818) |
Total equity | 1,037,920 | 1,016,167 |
Total liabilities and equity | $ 6,288,898 | $ 7,249,666 |
Consolidated statement of profi
Consolidated statement of profit or loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Deposits | $ 4,895 | $ 17,011 | $ 15,615 |
Securities | 3,531 | 3,209 | 2,899 |
Loans | 172,548 | 253,462 | 239,976 |
Total interest income | 180,973 | 273,682 | 258,490 |
Interest expense: | |||
Deposits | (25,800) | (67,435) | (63,146) |
Borrowings and debt | (62,723) | (96,732) | (85,601) |
Total interest expense | (88,523) | (164,167) | (148,747) |
Net interest income | 92,450 | 109,515 | 109,743 |
Other income (expense): | |||
Fees and commissions, net | 10,418 | 15,647 | 17,185 |
Loss on financial instruments, net | (4,794) | (1,379) | (1,009) |
Other income, net | 1,083 | 2,874 | 1,670 |
Total other income, net | 6,707 | 17,142 | 17,846 |
Total revenues | 99,157 | 126,657 | 127,589 |
Reversal (provision) for credit losses | 1,464 | (430) | (57,515) |
Gain (loss) on non-financial assets, net | 296 | 500 | (10,018) |
Operating expenses: | |||
Salaries and other employee expenses | (21,462) | (24,179) | (27,989) |
Depreciation of investment properties, equipment and improvements | (3,587) | (2,854) | (1,282) |
Amortization of intangible assets | (753) | (702) | (1,176) |
Other expenses | (11,522) | (12,939) | (18,471) |
Total operating expenses | (37,324) | (40,674) | (48,918) |
Profit for the year | $ 63,593 | $ 86,053 | $ 11,138 |
Per share data: | |||
Basic earnings per share (in US dollars) | $ 1.60 | $ 2.17 | $ 0.28 |
Diluted earnings per share (in US dollars) | $ 1.60 | $ 2.17 | $ 0.28 |
Weighted average basic shares(in thousands of shares) | 39,656 | 39,575 | 39,543 |
Weighted average diluted shares(in thousands of shares) | 39,656 | 39,575 | 39,543 |
Consolidated statement of compr
Consolidated statement of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated statement of comprehensive income | |||
Profit for the year | $ 63,593 | $ 86,053 | $ 11,138 |
Items that will not be reclassified subsequently to profit and loss: | |||
Change in fair value on equity instrument at FVOCI, net of hedging | 546 | 491 | (1,224) |
Items that are or may be reclassified subsequently to profit and loss: | |||
Change in fair value on financial instruments, net of hedging | 2,265 | (2,694) | 2,667 |
Reclassification of gains (losses) on financial instruments to the profit or loss | (425) | 261 | (1,704) |
Exchange difference in conversion of foreign currency operation | (360) | (296) | (1,282) |
Other comprehensive income (loss) | 2,026 | (2,238) | (1,543) |
Total comprehensive income for the year | $ 65,619 | $ 83,815 | $ 9,595 |
Consolidated statement of chang
Consolidated statement of changes in equity - USD ($) $ in Thousands | Common stock [member] | Treasury stock [member] | Additional paid-in capital in excess of value assigned to common stock [member] | Capital reserves [member] | Regulatory reserves [member] | Retained earnings [member] | Other comprehensive income [member] | Total |
Balance at Dec. 31, 2017 | $ 279,980 | $ (63,248) | $ 119,941 | $ 95,210 | $ 129,254 | $ 479,712 | $ 1,963 | $ 1,042,812 |
Profit for the year | 0 | 0 | 0 | 0 | 0 | 11,138 | 0 | 11,138 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | (1,543) | (1,543) |
Issuance of restricted stock | 0 | 1,259 | (1,259) | 0 | 0 | 0 | 0 | 0 |
Compensation cost - stock options and stock units plans | 0 | 0 | 1,051 | 0 | 0 | 0 | 0 | 1,051 |
Exercised options and stock units vested | 0 | 3,355 | 254 | 0 | 0 | 0 | 0 | 3,609 |
Repurchase of "Class B" and "Class E" common stock | (2,442) | (2,442) | ||||||
Regulatory credit reserve | 0 | 0 | 0 | 0 | 6,765 | (6,765) | 0 | 0 |
Dividends declared | 0 | 0 | 0 | 0 | 0 | (61,035) | 0 | (61,035) |
Balance at Dec. 31, 2018 | 279,980 | (61,076) | 119,987 | 95,210 | 136,019 | 423,050 | 420 | 993,590 |
Effect for change in accounting policy | (1,926) | (1,926) | ||||||
Balances, adjusted | 279,980 | (61,076) | 119,987 | 95,210 | 136,019 | 421,124 | 420 | 991,664 |
Profit for the year | 0 | 0 | 0 | 0 | 0 | 86,053 | 0 | 86,053 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | (2,389) | (2,389) |
Transfer of fair value on equity instrument at FVOCI | (151) | 151 | 0 | |||||
Issuance of restricted stock | 0 | 1,259 | (1,259) | 0 | 0 | 0 | 0 | 0 |
Compensation cost - stock options and stock units plans | 0 | 0 | 1,782 | 0 | 0 | 0 | 0 | 1,782 |
Exercised options and stock units vested | 0 | 148 | (148) | 0 | 0 | 0 | 0 | 0 |
Repurchase of "Class B" and "Class E" common stock | 0 | |||||||
Dividends declared | (60,943) | (60,943) | ||||||
Balance at Dec. 31, 2019 | 279,980 | (59,669) | 120,362 | 95,210 | 136,019 | 446,083 | (1,818) | 1,016,167 |
Profit for the year | 0 | 0 | 0 | 0 | 0 | 63,593 | 0 | 63,593 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | 1,424 | 1,424 |
Transfer of fair value on equity instrument at FVOCI | (602) | 602 | 0 | |||||
Issuance of restricted stock | 0 | 1,391 | (1,391) | 0 | 0 | 0 | 0 | 0 |
Compensation cost - stock options and stock units plans | 0 | 0 | 1,722 | 0 | 0 | 0 | 0 | 1,722 |
Exercised options and stock units vested | 0 | 279 | (279) | 0 | 0 | 0 | 0 | 0 |
Dividends declared | 0 | 0 | 0 | 0 | 0 | (44,986) | 0 | (44,986) |
Balance at Dec. 31, 2020 | $ 279,980 | $ (57,999) | $ 120,414 | $ 95,210 | $ 136,019 | $ 464,088 | $ 208 | $ 1,037,920 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Profit for the year | $ 63,593 | $ 86,053 | $ 11,138 |
Adjustments to reconcile profit for the year to net cash provided by (used in) operating activities: | |||
Depreciation of investment property, equipment and leasehold improvements | 3,587 | 2,854 | 1,282 |
Amortization of intangible assets | 753 | 702 | 1,176 |
Gain on sale of investment properties | 0 | (500) | 0 |
Unrealized gain on investment properties | (296) | 0 | 0 |
(Reversal) provision for credit losses | (1,464) | 430 | 57,515 |
Unrealized gain on financial instruments at fair value through profit or loss | 806 | ||
Net gain on sale of financial assets at fair value through OCI | 0 | (186) | (194) |
Compensation cost - share-based payment | 1,722 | 1,782 | 1,051 |
Net changes in hedging position and foreign currency | (194) | (18,273) | 12,403 |
Loss for disposal of equipment and leasehold improvements | 30 | 22 | 24 |
Loss for derecognition of intangible assets | 1 | 0 | 2,705 |
Impairment on investment properties at fair value through profit or loss | 0 | 0 | 3,849 |
Impairment loss on other assets | 0 | 0 | 3,464 |
Realized loss on investment instrument measured at fair value through profit or loss | 2,175 | 2,258 | 0 |
Interest income | (180,973) | (273,682) | (258,490) |
Interest expense | 88,523 | 164,167 | 148,747 |
Net decrease (increase) in operating assets: | |||
Pledged deposits | 648 | 21,008 | 13,781 |
Loans | 911,073 | (111,967) | (305,464) |
Other assets | 2,321 | 7,891 | (6,449) |
Net increase (decrease) in operating liabilities: | |||
Due to depositors | 250,564 | (78,822) | 41,978 |
Other liabilities | 1,432 | 3,074 | (6,432) |
Cash flows provided by operating activities | 1,144,301 | (193,189) | (277,916) |
Interest received | 194,129 | 275,068 | 242,974 |
Interest paid | (91,021) | (174,311) | (138,646) |
Net cash provided by (used in) operating activities | 1,247,409 | (92,432) | (173,588) |
Cash flows from investing activities: | |||
Acquisition of equipment and leasehold improvements | (997) | (1,028) | (603) |
Acquisition of intangible assets | (1,311) | (496) | (58) |
Proceeds from the sale in investment properties | 0 | 500 | 1,270 |
Proceeds from the sale of securities at fair value through OCI | 1,882 | 14,037 | 0 |
Proceeds from the redemption of securities at fair value through OCI | 0 | 8,094 | 4,635 |
Proceeds from redemption of securities at amortized cost | 52,576 | 28,274 | 9,807 |
Purchases of securities at fair value through OCI | (227,027) | 0 | (9,875) |
Purchases of investments at fair value with changes in profit or loss | (1,433) | 0 | 0 |
Purchases of securities at amortized cost | (143,595) | (18,316) | (26,701) |
Net cash (used in) provided by investing activities | (319,904) | 31,065 | (21,525) |
Cash flows from financing activities: | |||
(Decrease) increase in securities sold under repurchase agreements | (29,867) | 764 | 39,767 |
Net (decrease) increase in short-term borrowings and debt | (1,212,023) | (428,611) | 950,259 |
Proceeds from long-term borrowings and debt | 827,732 | 371,536 | 609,017 |
Repayments of long-term borrowings and debt | (781,274) | (368,843) | (256,173) |
Payments of leases liabilities | (1,114) | (1,072) | 0 |
Dividends paid | (44,669) | (58,881) | (61,539) |
Exercised stock options | 0 | 0 | 3,609 |
Repurchase of common stock | 0 | 0 | (2,442) |
Net cash (used in) provided by financing activities | (1,241,215) | (485,107) | 1,282,498 |
(Decrease) increase net in cash and cash equivalents | (313,710) | (546,474) | 1,087,385 |
Cash and cash equivalents at beginning of the year | 1,159,718 | 1,706,192 | 618,807 |
Cash and cash equivalents at end of the year | $ 846,008 | $ 1,159,718 | $ 1,706,192 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2020 | |
Corporate information | |
Corporate information | 1. Corporate information Banco Latinoamericano de Comercio Exterior, S. A. (“Bladex Head Office” and together with its subsidiaries “Bladex” or the “Bank”), headquartered in Panama City, Republic of Panama, is a specialized multinational bank established to support the financing of foreign trade and economic integration in Latin America and the Caribbean (the “Region”). The Bank was established pursuant to a May 1975 proposal presented to the Assembly of Governors of Central Banks in the Region, which recommended the creation of a multinational organization to increase the foreign trade financing capacity of the Region. The Bank was organized in 1977, incorporated in 1978 as a corporation pursuant to the laws of the Republic of Panama, and initiated operations on January 2, 1979. Under a contract law signed in 1978 between the Republic of Panama and Bladex, the Bank was granted certain privileges by the Republic of Panama, including an exemption from payment of income taxes in Panama. The Bank operates under a general banking license issued by the National Banking Commission of Panama, predecessor of the Superintendence of Banks of Panama (the “SBP”). In the Republic of Panama, banks are regulated by the SBP through Executive Decree No. 52 of April 30, 2008, which adopts the unique text of Law Decree No. 9 of February 26, 1998, modified by Law Decree No. 2 of February 22, 2008. Banks are also regulated by resolutions and agreements issued by this entity. The main aspects of this law and its regulations include: the authorization of banking licenses, minimum capital and liquidity requirements, consolidated supervision, procedures for management of credit, liquidity and market risks, measures to prevent money laundering, the financing of terrorism and related illicit activities, and procedures for banking intervention and liquidation, among others. Bladex Head Office’s subsidiaries are the following: - Bladex Holdings Inc. is a wholly owned subsidiary, incorporated under the laws of the State of Delaware, United States of America (USA), on May 30, 2000. Bladex Holdings Inc. has ownership in Bladex Representaçao Ltda. - Bladex Representaçao Ltda, incorporated under the laws of Brazil on January 7, 2000, acts as the Bank’s representative office in Brazil. Bladex Representaçao Ltda. is 99.999% owned by Bladex Head Office and the remaining 0.001% is owned by Bladex Holdings Inc. - Bladex Development Corp. was incorporated under the laws of the Republic of Panama on June 5, 2014. Bladex Development Corp. is 100% owned by Bladex Head Office. - BLX Soluciones, S.A. de C.V., SOFOM, E.N.R. (“BLX Soluciones”) was incorporated under the laws of Mexico on June 13, 2014 . BLX Soluciones is 99.9% owned by Bladex Head Office, and Bladex Development Corp. owns the remaining 0.1%. The company specializes in offering financial leasing and other financial products such as loans and factoring. Bladex Head Office has an agency in New York City, USA (the “New York Agency”), which began operations on March 27, 1989. The New York Agency is principally engaged in financing transactions related to international trade, mostly the confirmation and financing of letters of credit for customers in the Region. The New York Agency also has authorization to book transactions through an International Banking Facility (“IBF”). The Bank has representative offices in Buenos Aires, Argentina; in Mexico City, Mexico; and in Bogota, Colombia , and has a representative license in Lima, Peru. These consolidated financial statements were authorized for issue by the Board of Directors on February 9, 2021. |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Basis of preparation of the consolidated financial statements | |
Basis of preparation of the consolidated financial statements | 2. Ba sis of preparation of the consolidated financial statements 2. 1 of compliance The consolidated financial statements of Banco Latinoamericano de Comercio Exterior, S. A. and its subsidiaries have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). 2. 2 resentation currency All amounts presented in the consolidated financial statements and notes are expressed in United States of America dollars (US dollar), which is the functional currency of the Bank. 2. 3 Basis of measurement The consolidated financial statements have been prepared on the historical cost basis, except for the following items: Items Basis of measurement Securities and other financial instruments at fair value through other comprehensive income Fair value Other financial instruments at fair value through profit or loss Fair value Financial assets and financial liabilities designated as hedged items in qualifying fair value hedging relationships At amortized cost adjusted for the hedge risk components associated to the hedging relationship Investment properties Fair value 2. 4 of consolidation The - Power over the investee. Existing rights that give it the current ability to direct the relevant activities of the investee. - Exposure or rights to variable returns from its involvement with the investee. - The ability to use its power over the investee to affect its returns. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Bank has less than the majority of the voting or similar rights of an investee, the Bank considers all relevant facts and circumstances in assessing whether it has power over an investee, including: - The contractual arrangement(s) with the other vote holders of the investee. - Rights arising from other contractual arrangements. - The Bank’s voting rights and potential voting rights. The Bank re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. The consolidation of the financial statements of a subsidiary begins when the Bank obtains control over the subsidiary and ceases when the Bank loses control of the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Bank and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Bank’s accounting policies. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Bank loses control over a subsidiary, it derecognizes the related assets, liabilities, non-controlling interest and other components of equity, while any resulting gain or loss is recognized in profit or loss. Any investment retained in the former subsidiary is recognized at fair value. The fair value of any investment retained in the former subsidiary at the date when control is lost is measured according IFRS 9 – “ Financial Instruments ”, or where applicable, at cost on initial recognition of an investment in an associate or a joint venture. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies Significant accounting policies applied consistently by the Bank to all years presented in these consolidated financial statements, are presented as follows. 3. 1 Foreign currency Foreign currency transactions For each entity, the Bank determines the functional currency; items, included in the consolidated financial statements of each entity, are measured using their respective functional currency. Transactions and balances Assets and liabilities of foreign subsidiaries, whose local currency is considered their functional currency, are translated into the reporting currency, US dollars, using month-end spot foreign exchange rates. The Bank uses monthly-averaged exchange rates to translate revenues and expenses from local functional currency into US dollars. The effects of those translation adjustments are reported as a component of other comprehensive income (loss) in the consolidated statement of changes in equity. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate effective at the date on which fair value is determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate effective at the date of the transaction. Transactions whose terms are denominated in a currency other than the functional currency, including transactions denominated in local currency of foreign entities whose functional currency is the US dollar, are recorded at the exchange rate prevailing at the date of the transaction. Assets and liabilities in foreign currency are translated into US dollars using month-end spot foreign exchange rates. The effects of translation of monetary assets and liabilities into US dollar are included in current year’s earnings in the caption of "gain (loss) on financial instruments, net" in profit or loss. Differences arising on settlement or translation of monetary items are recognized in profit or loss, except for monetary items that are designated as part of the hedge of the Bank’s net investment in a foreign operation. These are recognized in accumulated other comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in accumulated other comprehensive income, if applicable. When a foreign operation is disposed of in its entirety or partially such that control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Bank disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, then the relevant proportion of the cumulative amount is attributed to non-controlling interest. 3.2 Interests Effective interest rate Interest income and expense are recognized in profit or loss using the effective interest method. The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to: - The gross carrying amount of the financial asset; or - The amortized cost of the financial liability. When calculating the effective interest rate for financial instruments other than purchased or originated credit-impaired assets, the Bank estimates future cash flows considering all contractual terms of the financial instrument, but not the expected credit loss (ECL). For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated using estimated future cash flows including ECL. The calculation of the effective interest rate includes transaction costs and fees and points paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial liability. Amortized cost and gross carrying amount The ‘amortized cost’ of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any expected credit loss allowance. The ‘gross carrying amount of a financial asset’ is the amortized cost of a financial asset before adjusting for any expected credit loss allowance. Methodology for calculation of interest income and expense The effective interest rate of a financial asset or financial liability is calculated on initial recognition of a financial asset or a financial liability. In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset, when the asset is not credit-impaired, or to the amortized cost of the liability. The effective interest rate is revised as a result of periodic re-estimation of cash flows of floating-rate instruments to reflect movements in market interest rates. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis. For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves. Presentation Interest income and interest expense calculated using the effective interest method presented in the consolidated statement of profit or loss includes: - Interest on financial assets and financial liabilities measured at amortized cost Other interest income and expense presented in the consolidated statement of profit or loss includes: - Interest on securities measured at fair value through other comprehensive income. - Interest on loans measured at fair value through profit or loss. - Interest expense on lease liabilities. - The effective portion of the variability in interest cash flow changes in qualifying hedging derivatives, in the same period as the hedged cash flows affect interest income/expense. 3.3 Fees and commissions Fees, commission income and expense that are integral to the effective interest rate on a financial asset or financial liability are described in note 3.2. Other fees and commissions are recognized as the related services are performed based on the contractual terms set with a customer. The following table describes the main products and services, other than services for financial intermediation, from which the Bank generates its revenue: Type of services Nature and timing of satisfaction of performance obligations, Letters of credit Issuance Guarantee to honor the stipulated amount agreed to in the terms and conditions entered with the customer, upon presentation of required documentation. Negotiation Review of the shipping documents, by the beneficiary, under presentation and acceptance of payment on demand or on the day the reimbursement is made by the designated bank. Acceptance Commitment issued to the beneficiary to pay to a supplier in a future date, once all the shipping documents have been reviewed as to compliance with the terms and conditions of the letter of credit. Confirmation Commitment issued to the issuer bank and the beneficiary to honor or negotiate shipping documents. Amendment A request to amend the original letter of credit on behalf of the beneficiary modifying the original terms and conditions Syndications Structuring Advise to the borrower by structuring the terms and conditions of a credit facility and coordinating among the lenders’ and the borrowers’ legal counsel all legal aspects relating to the credit facility, among others. Other services Other Assignment of rights, transferability, reimbursements, payments, discrepancies, courier charges and transfers. 3.4 Financial assets and liabilities A. Date of recognition and initial measurement The Bank initially recognizes loans, deposits, securities and financial liabilities on the trade date, the date that the Bank becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace. Recognized financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets or financial liabilities at fair value through profit or loss (FVTPL), are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. Recognized financial assets and financial liabilities designated as hedged items in qualifying fair value hedging relationships are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. B. Classification The Bank classifies its financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss based on the Bank’s business model for managing the financial assets and the contractual cash flow characteristics of these financial assets, except for those designated as hedged items in qualifying fair value hedging relationships, which are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through profit or loss (FVTPL): - The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI). A debt instrument is measured at fair value through other comprehensive income (FVOCI) only if it meets both of the following conditions and is not designated as at FVTPL: - The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI Unrealized gains or losses for financial assets at FVOCI are reported as net increases or decreases in other comprehensive income in the consolidated statement of changes in equity until realized. The gains or losses realized on the sale of securities, which are included in the gain (loss) on the sale of financial instruments, are determined individually for each instrument. Exchange gains or losses are recognized in gains or losses. For an equity instrument designated as measured at FVOCI, the accumulated gain or loss previously recognized in other comprehensive income is not subsequently reclassified to profit or loss but is transferred within equity to retained earnings. The rest of financial assets are classified at FVTPL, when the assessment of the financial instrument’s contractual terms and the cash flows derived from it determine that the SPPI criteria is not meet for its classification at amortized cost or at fair value through other comprehensive income. However, the following irrevocable election / designation at initial recognition of a financial asset on an asset-by-asset basis may be made: - It may irrevocably elect to present subsequent changes in fair value of an equity instrument that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination, in other comprehensive income (loss); and - It may irrevocably designate a debt instrument that meets the amortized cost or at FVOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. The Bank classifies all financial liabilities as subsequently measured at amortized cost, except for those liabilities designated as hedged items in qualifying fair value hedging relationships, which are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. C. Business model assessment The Bank assesses the objective of the business model in which the financial asset is held at a portfolio level, because this reflects the way the business is managed, and information is provided to management. The information considers the following: - The Bank’s policies and objectives for the portfolio and the operation of those policies in practice. In particular, if the management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realizing cash flows through the sale of the assets; - How the performance of the portfolio is evaluated and reported to the Bank’s management; - The risks that affect the performance of the business model and how those risks are managed; - The frequency, volume and timing of sales in prior periods, the reason for such sales and its expectations about future sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Bank’s stated objective for managing the financial assets is achieved and how cash flows are realized. The Bank’s Commercial business comprises primarily the loan portfolio that is held for collecting contractual cash flows. Sales of loans from theses portfolios are very infrequent and of a low volume. Certain debt securities are held by the Bank’s Treasury business whose objective is to hold assets to collect the contractual cash flows. These securities may be sold, but such sales are not expected to be more than infrequent. Additionally, certain other debt securities are held in separate portfolios within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Accordingly, such sales are comprehensive rather than incidental and consequently implies a higher frequency and volume of sale. An assessment of the business model for managing financial assets is fundamental to the classification of a financial asset. The Bank determines the business model at a level that reflects how financial asset groups are managed together to obtain a particular business objective. The business model does not depend on management’s intentions for an individual instrument; therefore, assessment of the business model is done at a higher level of aggregation rather than instrument by instrument. At the initial recognition of a financial asset, it is determined whether the newly recognized financial asset is part of an existing business model or whether it reflects the start of a new business model. The Bank reassesses its business model at each reporting date to determine whether business models have changed since the previous reporting date. For the current and previous reporting periods, the Bank has not identified a change in its business models. D. Assessment whether contractual cash flows are solely payments of principal and interest (SPPI) For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding at a point in time and for other basic lending risks and costs as well as profit margin. Contractual cash flows that are SPPI are consistent with a basic credit agreement. Contractual terms that originate risk exposure or volatility in the contractual cash flows that are not related to a basic credit agreement, such as exposure to changes in equity prices or commodity prices, do not give rise to contractual cash flows that are SPPI. An originated or an acquired financial asset can be a basic credit arrangement irrespective of whether it is a credit in its legal form. In assessing whether the contractual cash flows are SPPI, the Bank considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows, so that it would not meet this condition. In making the assessment, the Bank considers the following: - Contingent events that would change the amount and timing of cash flows; - Leverage features; - Prepayment and extension terms; - Terms that limit the Bank’s claim to cash flows from specified assets (e.g. non-recourse asset arrangements); and features that modify consideration of the time value of money (e.g. periodical reset of interest rates). The Bank measures it’s financial assets and liabilities at fair value through profit or loss, when the assessment of the financial instrument’s contractual terms and the cash flows derived from it determines that the SPPI criteria is not meet for its classification at amortized cost or at fair value through other comprehensive income. E. Reclassification If the business model under which the Bank holds financial assets changes, the financial assets affected are reclassified. The classification and measurement requirements related to the new category apply prospectively from the first day of the first reporting period following the change in business model that results in reclassifying the Bank’s financial assets. During the current fiscal year and previous accounting period there was no change in the business models under which the Bank holds financial assets and therefore no reclassifications were made. Changes in contractual cash flows are considered under the accounting policy on modification and derecognition of financial assets described in the following paragraphs. F. Derecognition of financial assets and financial liabilities Financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: - The rights to receive cash flows from the asset have expired. - The Bank has transferred its rights to receive cash flows from the asset and either has transferred substantially all risk and rewards of the asset or has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. - The Bank retains the right to receive cash flows from the asset but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass–through’ arrangement. - When the Bank has transferred its rights to receive cash flows from an asset or has entered into a pass–through arrangement and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Bank’s continuing involvement in the asset. In that case, the Bank also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Bank has retained. The Bank assesses the transfer of risks and benefits by comparing the entity’s exposure, before and after the transfer, with the variation in the amounts and timing of the net cash flows of the transferred asset; additionally, the continued participation in a transferred financial asset is measured by the lowest value between the original carrying amount of the asset and the maximum amount of consideration that the Bank could be required to pay. In derecognizing the financial asset, allowance for losses are deducted from the gross carrying amount of the financial asset; any accumulated gain or loss that has been recognised in other comprehensive income is recognised in the consolidated statement of profit or loss. Any accumulated gain or loss recognized in other comprehensive income regarding equity instruments designated at fair value with changes in other comprehensive income is not recognized in the consolidated statement of profit or loss. Any interest in the transfer of a financial assets that qualifies for derecognition, booked or held by the Bank is recognized as a separate asset or liability. The Bank enters into transactions whereby it transfers assets recognized on its consolidated statement of financial position but retains either all or substantially all the risks and rewards of the transferred asset or a portion of them. In such cases, the transferred assets are not derecognized. Examples of such transactions are securities lending and sale-and-repurchase transactions. Financial liabilities A financial liability is derecognized when the obligation under the liability is extinguished, when the obligation specified in the contract is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as an extinguishment of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. G. Modified financial asset or liability Financial assets A modified financial asset is an instrument whose borrower is experiencing financial difficulties and the renegotiation constitutes a concession to the borrower. A concession may include modification of terms such as an extension of maturity date, reduction in the stated interest rate, rescheduling of future cash flows, and reduction in the face amount of the financial asset or accrued interest, among others. When a financial asset is modified, the Bank assesses whether this modification results in derecognition. In accordance with the Bank’s policies a modification results in derecognition when it gives rise to substantially different terms. To determine if the modified terms are substantially different from the original contractual terms the Bank considers the following: - Qualitative factors, such as contractual cash flows after modification are no longer SPPI, change in currency or change of counterparty, the extent of change in interest rates, maturity or covenants. If these do not clearly indicate a substantial modification, then; - A quantitative assessment is performed to compare the present value of the remaining contractual cash flows according to the original terms with the contractual cash flows of the revised terms; both amounts discounted at the original effective interest. When the contractual terms of a financial asset are modified, and the modification does not result in derecognition, the Bank determines if the financial asset’s credit risk has increased significantly since initial recognition by comparing: - The remaining lifetime probability of default (PD) estimated based on data at initial recognition and the original contractual terms; with - The remaining lifetime PD at the reporting date based on the modified terms. In the renegotiation or modification of the contractual cash flows of the financial asset, the Bank shall: - Continue with its current accounting treatment for the existing financial asset that has been modified. - Record a modification gain or loss by recalculating the gross carrying amount of the financial asset as the present value of the renegotiated or modified contractual cash flows, discounted at the financial asset’s original effective interest rate. - Assess whether there has been a significant increase in the credit risk of the financial instrument, by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms). The financial asset that is modified is not automatically considered to have a lower credit risk. The assessment should consider credit risk over the expected life of the asset based on historical and forward-looking information, including information about the circumstances that led to the modification. Evidence that the criteria for the recognition of lifetime expected credit losses are subsequently no longer met may include a history of up-to-date and timely payment in subsequent periods. A minimum period of observation will be necessary before a financial asset may qualify to return to a 12‑month expected credit loss measurement. - Make the appropriate quantitative and qualitative disclosures required for renegotiated or modified assets to reflect the nature and the effect of such modifications (including the effect on the measurement of expected credit losses) and how the Bank monitors these financial assets that have been modified. The Bank recognizes a loss allowance for expected credit losses on a financial asset that is measured at amortized cost at each reporting date at an amount equal to the lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk of that financial asset has not increased significantly since initial recognition, an entity shall measure the loss allowance for that financial asset at an amount equal to 12-month expected credit losses. When the modification of a financial asset results in the derecognition of an existing financial asset and the subsequent recognition of a modified financial asset, the modified asset is considered a new financial asset, at the time of derecognition, the reserve for expected credit losses (ECL) is recalculated to determine the net carrying value of the asset at that date. The new financial asset will have an allowance for losses measured based on 12-month for expected credit losses except for rare cases where the new financial asset is considered to be impaired, because a high risk of default remains, which has not been reduced in the modification. The Bank monitors the credit risk of the modified or renegotiated financial assets by assessing qualitative and quantitative information, considering them in the same way as customers with expired status under new terms. Financial Liabilities The Bank derecognizes a financial liability when its terms are modified, and the cash flows of the modified liability are substantially different. The Bank considers that the terms of a modified financial liability are substantially different if the present value of the cash flows under the new terms, including any fees paid net of any fees received, discounted at the original effective interest rate presents a difference greater than 10% of the discounted present value of the cash flows still remaining from the original financial liability. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability derecognized, and the consideration paid, is recognized in profit or loss. Consideration paid includes non-financial assets transferred, if any, and the assumption of liabilities, including the new modified financial liability. If the modification of a financial liability is not accounted for as derecognition, then the amortized cost of the liability is recalculated by discounting the modified cash flows at the original effective interest rate and the resulting gain or loss is recognized in the consolidated financial statement of profit or loss. For floating-rate financial liabilities, the original effective interest rate used to calculate the modification gain or loss is adjusted to reflect current market terms at the time of the modification. Any costs and fees incurred are recognized as an adjustment to the carrying amount of the liability and amortized over the remaining term of the modified financial liability by re-computing the effective interest rate on the instrument. H. Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Bank currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. Generally, this is not the case with a contractual compensation agreement; therefore, related assets and liabilities are presented with their gross amounts in the consolidated statement of financial position. Income and expenses are presented on a net basis only when permitted under IFRS Standards, or for gains and losses arising from a group of similar transactions. I. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, between market participants at the measurement date or, in its absence, the most advantageous market to which the Bank has access at that date. The fair value of a liability reflects its non-performance risk. When one is available, the Bank measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as “active” if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Bank uses valuation techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. The Bank recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred. J. Allowances for losses on financial instruments The allowances for losses on financial instruments are provided for losses derived from the expected credit losses, inherent in the loan portfolio, investment securities and loan commitments and financial guarantee contracts, using the reserve methodology to determine expected credit losses. Additions to the allowance for expected credit losses for financial instruments are recognized in profit or loss or in other comprehensive income depending on classification of the instrument. Incurred credit losses are deducted from the allowance, and subsequent recoveries are added. The allowance is also decreased by reversals of the allowance back to profit or loss. The allowance for expected credit losses for financial instruments at amortized cost is reported as a deduction of financial assets and, the allowance for expected credit losses on loan commitments and financial guarantee contracts, such as letters of credit and guarantees, is presented as a liability. The Bank assigns to each exposure a risk rating which is defined using quantitative and qualitative factors that are indicative of the risk of loss. This rating is considered for purposes of identifying significant increases in credit risk. These factors may vary depending on the nature of the exposure and the type of borrower. Each exposure will be assigned to a risk rating at the time of initial recognition based on the information available about the customer and the country. Exposures will be subject to continuous monitoring, which may result in the change of an exposure to a different risk rating. The analysis of customer risk considers financial and operational factors, sector / in |
New accounting standards
New accounting standards | 12 Months Ended |
Dec. 31, 2020 | |
New accounting standards | |
New accounting standards | 4. 4.1 In September 2019, the International Accounting Standards Board (IASB) finalized Phase 1 of the IBOR Reform and issued the document Interest Rate Benchmark Reform (“the Reform”), which contains amendments to IFRS 9 and IFRS 7. These amendments are effective for annual periods beginning on or after 1 January 2020. In August 2020, the IASB published the second phase of the project amendments to the Reform; this document contains exemptions and clarifications for the applicable financial instruments. Phase 2 of the Reference Interest Rate Reform Project This document contains: - Clarifications on changes in the basis used for determining contractual cash flows - Practical exemptions applicable to the existing criteria for re-estimating financial assets and liabilities at variable interest rates to account for modifications resulting from the Reform. - Practical exemptions allowing changes in the initial documentation of hedging relationships - Waivers for hedge groups of hedged items and interest rate risk portfolios when the items in the designated group are subject to the contractual amendments resulting from the Reform - Adds additional requirements when there are changes in the basis used to determine the contractual cash flows of the financial asset or liability that has given rise to the designation of a hedge - Provides temporary waiver in the designation of risk components - New disclosure requirements are included in the financial statements The amendments issued in the second phase of the project are mandatory for annual periods beginning on or after 1 January 2021, and early adoption is permitted. As of 31 December 2020, the Bank has not made the adoption of the reforms contained in phases 1 and 2 of the project amendments. Managing interest rate benchmark reform and any risks arising due to reform Fundamental reform of significant interest rate benchmarks is being undertaken globally, including the replacement of interbank offered rates (IBORs) with alternative nearly risk-free rates. Due to the nature of its business, the Bank’s portfolio is mainly constituted of short-term fixed rate assets and liabilities. However, the Bank has exposures to IBORs (USD LIBOR only) on its financial instruments that will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the timing and the methods of transition. The Bank anticipates that IBOR Reform will impact its risk management and hedge accounting. The Bank’s LIBOR Transition Steering Committee (LTSC) monitors and manages the transition to alternative rates. The Committee evaluates the extent to which contracts reference IBOR cash flows, whether such contracts need to be amended as a result of IBOR Reform and how to manage communication about IBOR reform with counterparties. The Committee reports to the Board of Directors and collaborates with other business functions as needed. It provides periodic reports to management on interest rate risk and risks arising from IBOR Reform. Although USD LIBOR was planned to be discontinued by the end of 2021, consultations and possible regulatory changes are in progress. This may mean that certain USD LIBOR tenors may continue to be published until June 30, 2023. At the end of 2020, the Bank commenced amending existing loans and advances to corporate customer, including loan commitments. These amendments incorporate a fallback provision stating that the existing USD LIBOR benchmark rate will be replaced by SOFR The main risks to which the Bank is exposed as a result of IBOR reform are operational. Such operational risks include the renegotiation of loan contracts through bilateral negotiation with customers, updating of contractual terms, updating of systems that use USD LIBOR curves and revision of operational controls related to the Reform. Financial risk is predominantly limited to interest rate risk. Non-derivative financial instruments and loan commitments Quantitative Information Disaggregated information by financial instruments that have yet to transition to an alternative benchmark rate as at the end of the reporting period December 31, 2020 is the following. The information presented is the remaining exposure as at each reporting period. USD LIBOR USD LIBOR USD LIBOR as of as of as of June December 31, 2021 December 31, 2022 30, 2023 (Notional in US$ (Notional in US$ (Notional in US$ thousands ) thousands ) thousands) Non-derivative financial assets Loans 1,034,252 473,643 416,833 Non-derivative financial liabilities Borrowings 222,500 62,500 12,500 Loan commitments 63,333 60,000 10,000 The Bank has USD LIBOR exposures on floating-rate loans and advances to customers and loan commitments. Derivatives held for risk management and hedge accounting The Bank's derivative instruments are governed by ISDA's 2006 definitions. ISDA has reviewed its definitions in light of IBOR Reform and issued an IBOR fallbacks supplement on October 23, 2020. This sets out how the amendments to new alternative benchmark rates (e.g., SOFR) in the 2006 ISDA definitions will be accomplished. The effect of the supplement is to create fallback provisions in derivatives that describe what floating rates will apply on the permanent discontinuation of certain key IBORs or in ISDA declaring a non-representative determination of an IBOR. The Bank plans to adhere to the protocol to implement the fallbacks to derivative contracts that were entered into before the effective date of the supplement. If derivative counterparties also adhere to the protocol, then new fallbacks will be automatically implemented in existing derivative contracts on the later of when the supplement becomes effective or both counterparties adhere to the protocol. From that date, all new derivatives that reference the ISDA definitions will also include the fallbacks. Consequently, the Bank is monitoring whether its counterparties will also adhere to the protocol and, if there are counterparties that will not, then the Bank plans to negotiate with them bilaterally about inclusion of new fallback clauses. As of December 31, 2020, the Bank has not amended its derivatives instruments with its counterparties. Hedge Accounting The Bank has evaluated the extent to which its fair value and cash flow hedging relationships are subject to uncertainty driven by IBOR Reform as at the reporting date. The Bank's hedged items and hedging instruments continue to be indexed to USD LIBOR benchmark rates. These USD LIBOR benchmark rates are quoted each day and IBOR cash flows are exchanged with its counterparties as usual. The Bank has very limited cash flow hedging relationships with USD LIBOR risks extending beyond the anticipated revised cessation date for USD LIBOR. Exposure to USD LIBOR designated in a cash flow hedging relationship at 31 December 2020 is a nominal amount of $20 million attributable to the interest rate swap hedging USD LIBOR cash flows on the Bank's USD liabilities maturing in 2023. The Bank expects that SOFR will replace USD LIBOR, but there is uncertainty over the timing and amount of the replacement rate cash flows. Such uncertainty may impact the hedging relationship – e.g., its effectiveness assessment and highly probable assessment. For these assessments, the Bank assumes that the hedged benchmark interest rate, the cash flows of the hedged item and/or the hedging instrument will not be altered as a result of IBOR Reform. If a hedging relationship impacted by uncertainty about IBOR Reform has not been highly effective throughout the financial reporting period, then the Bank will evaluate whether the hedge is expected to be highly effective prospectively and whether the effectiveness of the hedging relationship can be reliably measured. The hedging relationship will not be discontinued as long as it meets all criteria for hedge accounting, with the exception of the requirement that the hedge was actually highly effective. Hedging relationships impacted by uncertainty about IBOR Reform may experience ineffectiveness attributable to market participants' expectations of when the shift from the existing IBOR benchmark rate to an alternative benchmark interest rate will occur. This transition may occur at different times for the hedged item and the hedging instrument, which may lead to hedge ineffectiveness. The Bank has measured its hedging instruments indexed to IBORs using available quoted market rates for IBOR-based instruments of the same tenor and similar maturity and has measured the cumulative change in the present value of hedged cash flows attributable to changes in IBOR on a similar basis. When the uncertainty arising from IBOR reform no longer exists, the Bank will cease to apply the assumptions that the hedged benchmark interest rate, the cash flows of the hedged item and/or hedging instrument will not be altered as a result of IBOR Reform. At that time, the Bank will also remeasure the cumulative changes in the hedged cash flows and the hedging instrument based on new alternative benchmark rates – i.e., SOFR. For the purpose of remeasuring the cumulative changes in the hedged cash flows, the Bank will amend the terms of the hypothetical derivative to reflect the changes required by IBOR Reform in the hedged item. Quantitative Information Disaggregated information by derivative financial instruments that have yet to transition to an alternative benchmark rate as at the end of the reporting period December 31, 2020 is the following. The information presented is the remaining notional amount as at each reporting period. USD LIBOR USD LIBOR USD LIBOR as at December as at December as at June 31, 2021 31, 2021 30, 2023 (Notional (Notional (Notional US$,000) US$,000) US$,000) Derivatives held for risk management Derivative financial instruments - assets 3,006 1,937 — Derivative financial instruments - liabilities 400,414 88,768 68,768 Leasing Reform IFRS 16 In May 2020, the IASB published the document “Rental Lease concessions related to COVID-19", which contains amendments to IFRS 16 Leases effective as of June 1, 2020, in order to provide relief to the lessee with respect to the rental concessions granted as a result of the events of COVID-19, where in the existing event the lessee must re-measure the responsibility of the lease using a revised discount rate. At the reporting date, the Bank has not modified nor received concessions in the lease agreements entered into with third parties. |
Financial Risk
Financial Risk | 12 Months Ended |
Dec. 31, 2020 | |
Financial Risk | |
Financial Risk | 5. This note presents information about the Bank’s exposure to financial risks and the Bank’s management of capital. A. i. The following tables set out information about the credit quality of financial assets measured at amortized cost, and securities at FVOCI. Unless specifically indicated, for financial assets the amounts in the table represent the outstanding balances. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively. Explanation of the terms ‘Stage 1’, ‘Stage 2’ and ‘Stage 3’ is included in Note 3.4 (J). The Bank's Management has not made any adjustment to the methodology and key inputs used to determine the PD and LGD parameters produced by the model, after assessing the impact in the economic sectors caused by the pandemic COVID-19 (as set out in Note 6). Loans at amortized cost December 31, 2020 PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 - 4 0.03 - 0.74 2,582,794 — — 2,582,794 Grades 5 - 6 0.75 - 3.95 1,928,142 167,996 — 2,096,138 Grades 7 - 8 3.96 - 30.67 102,532 119,340 10,593 232,465 Grades 9 - 10 30.68 - 100 — — — — 4,613,468 287,336 10,593 4,911,397 Loss allowance (16,661) (19,916) (4,588) (41,165) Total 4,596,807 267,420 6,005 4,870,232 December 31, 2019 PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 2,928,401 — — 2,928,401 Grades 5 - 6 0.75 - 3.95 2,330,150 85,173 — 2,415,323 Grades 7 - 8 3.96 - 30.67 343,606 143,822 — 487,428 Grades 9 - 10 30.68 - 100 — — 61,845 61,845 5,602,157 228,995 61,845 5,892,997 Loss allowance (28,892) (15,842) (54,573) (99,307) Total 5,573,265 213,153 7,272 5,793,690 Loan commitments, financial guarantees issued and customers' liabilities under acceptances December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Commitments and contingencies Grades 1 - 4 0.03 - 0.74 245,927 — — 245,927 Grades 5 - 6 0.75 - 3.95 198,638 38,446 — 237,084 Grades 7 - 8 3.96 - 30.67 81,887 — — 81,887 526,452 38,446 — 564,898 Customers' liabilities under acceptances Grades 1 - 4 0.03 - 0.74 1,498 — — 1,498 Grades 5 - 6 0.75 - 3.95 723 — — 723 Grades 7 - 8 3.96 - 30.67 72,145 — — 72,145 74,366 — — 74,366 600,818 38,446 — 639,264 Loss allowance (2,426) (478) — (2,904) Total 598,392 37,968 — 636,360 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Commitments and contingencies Grades 1 - 4 0.03 - 0.74 153,874 — — 153,874 Grades 5 - 6 0.75 - 3.95 150,631 27,446 — 178,077 Grades 7 - 8 4.13 - 30.43 161,421 — — 161,421 465,926 27,446 — 493,372 Customers' liabilities under acceptances Grades 1 - 4 0.03 - 0.74 13,367 — — 13,367 Grades 5 - 6 0.75 - 3.95 5,491 — — 5,491 Grades 7 - 8 4.13 - 30.43 96,824 — — 96,824 115,682 — — 115,682 581,608 27,446 — 609,054 Loss allowance (2,683) (361) — (3,044) Total 578,925 27,085 — 606,010 Securities at amortized cost December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 108,505 — — 108,505 Grades 5 - 6 0.75 - 3.95 50,562 5,007 — 55,569 159,067 5,007 — 164,074 Loss allowance (462) (33) — (495) Total 158,605 4,974 — 163,579 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 73,047 — — 73,047 Grades 5 - 6 0.75 - 3.95 — 1,500 — 1,500 73,047 1,500 — 74,547 Loss allowance (103) (10) — (113) Total 72,944 1,490 — 74,434 Securities at fair value through other comprehensive income (FVOCI) December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 231,348 — — 231,348 231,348 — — 231,348 Loss allowance (43) — — (43) Total 231,305 — — 231,305 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 - 4 0.03 - 0.74 5,094 — — 5,094 5,094 — — 5,094 Loss allowance — — — — Total 5,094 — — 5,094 The following table presents information of the current and past due balances of loans at amortized cost in stages 1, 2 and 3: December 31, 2020 Stage 1 Stage 2 Stage 3 Total Current 4,613,468 287,336 10,593 4,911,397 December 31, 2019 Stage 1 Stage 2 Stage 3 Total Current 5,602,157 228,995 47,169 5,878,321 Past due 90-120 days — — 3,724 3,724 151-180 days — — — — More than 180 days — — 10,952 10,952 Total past due — — 14,676 14,676 Total 5,602,157 228,995 61,845 5,892,997 As of December 31, 2020, and 2019, other financial assets were not past due nor impaired. The following table presents an analysis of counterparty credit exposures arising from derivative transactions. The Bank's derivative fair values are generally secured by cash. December 31, 2020 Derivative Derivative financial financial Notional value instruments - fair instruments - fair USD value asset value liabilities Interest rate swaps 145,667 1,831 (1,774) Cross-currency swaps 565,997 25,947 (3,848) Foreign exchange forwards 71,353 — (3,589) Total 783,017 27,778 (9,211) December 31, 2019 Derivative Derivative financial financial Notional value instruments - fair instruments - fair USD value asset value liabilities Interest rate swaps 521,333 407 (1,903) Cross-currency swaps 369,869 10,125 (10,197) Foreign exchange forwards 74,471 625 (2,575) Total 965,673 11,157 (14,675) ii. The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collateral. Derivatives and repurchase agreements In the ordinary course of business, the Bank enters into derivative financial instrument transactions and securities sold under repurchase agreements under industry standard agreements. Depending on the collateral requirements stated in the contracts, the Bank and counterparties can receive or deliver collateral based on the fair value of the financial instruments transacted between parties. Collateral typically consists of pledged cash deposits and securities. The master netting agreements include clauses that, in the event of default, provide for close-out netting, which allows all positions with the defaulting counterparty to be terminated and net settled with a single payment amount. The International Swaps and Derivatives Association master agreement (“ISDA”) and similar master netting arrangements do not meet the criteria for offsetting in the consolidated statement of financial position. This is because they create for the parties to the agreement a right of set-off of recognized amounts that is enforceable only following an event of default, insolvency or bankruptcy of the Bank or the counterparties or following other predetermined events. Such arrangements provide for single net settlement of all financial instruments covered only by the agreements in the event of default on any one contract. Master netting arrangements do not normally result in an offset of balance–sheet assets and liabilities unless certain conditions for offsetting are met. Although master netting arrangements may significantly reduce credit risk, it should be noted that: - - Loans The main types of collateral obtained are as follows: - The Bank also obtains guarantees from parent companies for loans to their subsidiaries. Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement. It is the Bank’s policy to dispose of repossessed property in an orderly fashion. The proceeds are used to reduce or repay the outstanding claim. In general, the Bank does not occupy repossessed property for business use. The Bank holds guarantees and other financial credit enhancements against certain exposures in the loan portfolio. As of December 31, 2020, and 2019, the coverage ratio to the carrying amount of the loan portfolio was 12%. iii. The Bank incorporates information of the economic environments on a forward-looking view, when assessing whether the credit risk of a financial instrument has significantly increased since initial recognition through customer and country rating models which include projections of the inputs under analysis. Supplementary, for the expected credit loss measurement, the results of the “alert model” can be considered, which are analyzed through a severity indicator to total risk resulting from the estimates and assumptions of several macroeconomics factors. These estimates and assumptions are supported by a central scenario. Other scenarios represent upside and downside results. The implementation and interpretation of the outcomes of the alert are based on the expert judgment of management, based on suggestions of areas such as Credit Risk, Economic Studies and Loan Recovery of the Bank. The external information could include economic data and projections published by governmental committees, monetary agencies (For example, Federal Reserve Bank and from countries where the Bank operates), supranational organizations (International Monetary Fund, The World Bank, World Trade Organization), private sector, academic projections, credit rating agencies, among other. Main macroeconomies variables of the country rating model with forward-looking scenarios are: Variables Description GDP Growth (Var. %) % Variation in the growth of the Gross Domestic Product (GDP) ComEx Growth (Var. %) % Variation in foreign trade growth (Exp. + Imp.) The model uses, as main inputs, the following macroeconomic variables: the percentage variation of the gross domestic product of Latin America and the percentage of the foreign trade index growth. The main movements and changes in the variables are analyzed, in general and in particular for each country in the region. This historical and projected information over a period of five years allows Management a complementary means to estimate the macroeconomic effects in the Bank's portfolio. The table below lists the macroeconomic assumptions by country used in the central, upside and downside scenarios over the five-year forecasted average available for each reporting period. Variable GDP Growth ComEx Growth (Var.% ) Index (Var.% ) December 31, December 31, December 31, December 31, Country Scenario 2020 2019 2020 2019 Central 0.7 % 2.0 % 4.0 % 4.1 % Brazil Upside 1.7 % 3.0 % 7.5 % 7.6 % Downside (0.7) % 0.6 % 0.0 % 0.1 % Central 1.4 % 3.4 % 4.6 % 6.6 % Colombia Upside 2.5 % 4.5 % 7.6 % 9.6 % Downside 0.1 % 2.1 % 1.1 % 3.1 % Central 0.2 % 1.5 % 3.5 % 2.2 % Mexico Upside 1.2 % 2.5 % 7.5 % 6.2 % Downside (1.0) % 0.3 % (1.0) % (2.3) % Central 1.5 % 2.2 % 6.4 % 3.1 % Chile Upside 2.6 % 3.3 % 9.9 % 6.6 % Downside 0.3 % 1.0 % 2.4 % (0.9) % Central 2.5 % 4.6 % 4.2 % 3.0 % Panama Upside 3.5 % 6.1 % 7.2 % 6.0 % Downside 1.3 % 3.2 % 0.7 % (0.5) % Central 2.5 % 3.5 % 4.2 % 4.1 % Guatemala Upside 3.5 % 4.5 % 7.2 % 7.1 % Downside 1.3 % 2.3 % 0.7 % 0.6 % Central 1.4 % 3.3 % 5.1 % 4.2 % Peru Upside 2.4 % 4.3 % 8.6 % 7.7 % Downside 0.2 % 2.1 % 1.1 % 0.2 % Central (0.2) % 1.3 % 2.7 % 4.6 % Ecuador Upside 0.8 % 2.3 % 5.7 % 7.6 % Downside (1.7) % (0.2) % (0.8) % 1.1 % iv. The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument. The basis for determining transfers due to changes in credit risk is set out in our accounting policy; see Note 3.4(J) Loans at amortized cost Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 28,892 15,842 54,573 99,307 Transfer to lifetime expected credit losses (886) 886 — — Transfer to credit-impaired financial instruments — (2,100) 2,100 — Net effect of changes in allowance for expected credit losses 134 13,443 (118) 13,459 Financial instruments that have been derecognized during the year (24,307) (3,729) — (28,036) New financial assets originated or purchased 12,828 — — 12,828 Write-offs — (4,426) (52,106) (56,532) Recoveries — — 139 139 Allowance for expected credit losses as of December 31, 2020 16,661 19,916 4,588 41,165 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 34,957 16,389 49,439 100,785 Transfer to lifetime expected credit losses (2,488) 2,488 — — Net effect of changes in allowance for expected credit losses (2,154) 5,881 7,987 11,714 Financial instruments that have been derecognized during the year (27,118) (8,916) (500) (36,534) New financial assets originated or purchased 25,695 — — 25,695 Write-offs — — (2,405) (2,405) Recoveries — — 52 52 Allowance for expected credit losses as of December 31, 2019 28,892 15,842 54,573 99,307 Loan commitments, financial guarantee contracts and customers' liabilities under acceptances The allowance for expected credit losses on loan commitments and financial guarantee contracts reflects the Bank’s management estimate expected credit losses of customers’ liabilities under acceptances and items such as: confirmed letters of credit, stand-by letters of credit, guarantees, and credit commitments. Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 2,683 361 — 3,044 Transfer to lifetime expected credit losses (96) 96 — — Net effect of changes in reserve for expected credit losses 37 42 — 79 Financial instruments that have been derecognized during the year (1,864) (21) — (1,885) New instruments originated or purchased 1,666 — — 1,666 Allowance for expected credit losses as of December 31, 2020 2,426 478 — 2,904 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 3,089 200 — 3,289 Net effect of changes in reserve for expected credit losses (17) 170 — 153 Financial instruments that have been derecognized during the year (2,497) (9) — (2,506) New instruments originated or purchased 2,108 — — 2,108 Allowance for expected credit losses as of December 31, 2019 2,683 361 — 3,044 Securities at amortized cost Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 103 10 — 113 Transfer to lifetime expected credit losses (10) 10 — — Net effect of changes in allowance for expected credit losses 15 23 — 38 Financial instruments that have been derecognized during the year (76) (10) — (86) New financial assets originated or purchased 430 — — 430 Allowance for expected credit losses as of December 31, 2020 462 33 — 495 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 113 27 — 140 Net effect of changes in allowance for expected credit losses (1) (17) — (18) Financial instruments that have been derecognized during the year (46) — — (46) New financial assets originated or purchased 37 — — 37 Allowance for expected credit losses as of December 31, 2019 103 10 — 113 Securities at fair value through other comprehensive income (FVOCI) Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 — — — — Financial instruments that have been derecognized during the year 43 — — 43 Allowance for expected credit losses as of December 31, 2020 43 — — 43 Securities at fair value through other comprehensive income (FVOCI) Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 33 140 — 173 Financial instruments that have been derecognized during the year (33) (140) — (173) Allowance for expected credit losses as of December 31, 2019 — — — — The following table provides a reconciliation between: - - Securities Loan commitments Loans at amortized and financial December 31, 2020 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 13,459 79 38 — 13,576 Financial instruments that have been derecognized during the year (28,036) (1,885) (86) — (30,007) New financial assets originated or purchased 12,828 1,666 430 43 14,967 Total (1,749) (140) 382 43 (1,464) Securities Loan commitments Loans at amortized and financial December 31, 2019 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 11,714 153 (18) — 11,849 Financial instruments that have been derecognized during the year (36,534) (2,506) (46) (173) (39,259) New financial assets originated or purchased 25,695 2,108 37 — 27,840 Total 875 (245) (27) (173) 430 Securities Loan commitments Loans at amortized and financial December 31, 2018 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 56,311 (48) (63) Financial instruments that have been derecognized during the year (27,490) (6,666) (64) — (34,220) New financial assets originated or purchased 32,355 2,928 56 14 35,353 Total 61,176 (3,556) (56) (49) 57,515 v. Credit-impaired loans and advances are graded 8 to 10 in the Bank’s internal credit risk grading system. The following table sets out a reconciliation of changes in the net carrying amount of allowance for credit losses for credit-impaired loans December 31, December 31, 2020 2019 Credit-impaired loans and advances at 54,573 49,439 Classified as credit-impaired during the year 2,100 — Change in allowance for expected credit losses (744) 7,164 Recoveries of amounts previously written off 139 52 Interest income 323 Write-offs (52,106) (2,405) Credit-impaired loans and advances at end of year 4,588 54,573 During the year ended December 31, 2020, the sale of the outstanding credit-impaired loan in Stage 3, classified at amortized cost, was made for $11.6 million. This sale resulted in a write off against the allowance for credit losses of $52.1 million. vi. The Bank monitors concentrations of credit risk by sector, industry and by country. An analysis of concentrations of credit risk from loans, loan commitments, financial guarantees and investment securities is as follows. Concentration by sector and industry Securities Loan commitments and Loans at amortized cost financial guarantee contracts At amortized cost FVOCI December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Carrying amount - principal 4,911,397 5,892,997 74,366 115,682 164,074 74,547 231,348 5,094 Amount committed/guaranteed — — 564,898 493,372 — — — — Concentration by sector Corporations: Private 1,425,929 1,782,808 276,249 213,161 56,979 2,998 60,403 — State-owned 741,791 780,491 92,299 69,822 29,985 23,792 23,858 — Financial institutions: Private 2,231,742 2,692,787 65,434 75,130 33,715 19,276 — — State-owned 476,520 589,690 205,282 250,941 28,276 — 141,974 — Sovereign 35,415 47,221 — — 15,119 28,481 5,113 5,094 Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 Concentration by industry Financial institutions 2,708,262 3,282,477 270,716 326,071 61,991 19,276 141,974 — Manufacturing 760,985 925,375 173,493 143,560 66,053 21,658 45,654 — Oil and petroleum derived products 586,030 561,068 98,189 71,571 20,911 5,132 38,607 — Agricultural 336,715 327,288 — — — — — — Services 264,597 370,753 63,086 20,497 — — — — Mining 94,955 162,364 — — — — — — Sovereign 35,415 47,221 — — 15,119 28,481 5,113 5,094 Other 124,438 216,451 33,780 47,355 — — — — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 Risk rating and concentration by country Securities Loan commitments and Loans at amortized cost financial guarantee contracts At amortized cost FVOCI December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Carrying amount - principal 4,911,397 5,892,997 74,366 115,682 164,074 74,547 231,348 5,094 Amount committed/guaranteed — — 564,898 493,372 — — — — Rating 1-4 2,582,794 2,928,401 247,425 167,241 108,505 73,047 231,348 5,094 5-6 2,096,138 2,415,323 237,807 183,568 55,569 1,500 — — 7-8 232,465 487,428 154,032 258,245 — — — — 10 — 61,845 — — — — — — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 Concentration by country Argentina 130,944 226,481 — — — — — — Belgium 9,807 13,742 — — — — — — Bolivia 12,000 7,000 2,800 400 — — — — Brazil 971,652 1,015,316 50,000 50,000 41,128 1,500 — — Canada — — — 657 — — — — Chile 533,945 683,132 7,911 8 11,992 — 28,972 5,094 Colombia 714,258 906,092 50,333 50,610 29,998 15,338 — — Costa Rica 146,200 220,380 56,876 59,161 — — — — Dominican Republic 202,433 289,853 16,500 16,500 — — — — Ecuador 45,511 174,267 165,275 252,391 — — — — El Salvador 40,000 54,233 1,087 5,555 — — — — France 150,810 152,530 84,862 47,906 — — — — Germany — 34,613 — — — — — — Guatemala 281,485 278,557 43,845 44,200 — — — — Honduras 10,199 128,937 345 300 — — — — Hong Kong 1,800 10,400 — — — — — — Jamaica 23,274 38,312 — — — — — — Luxembourg 50,000 59,813 — — — — — — Mexico 607,099 754,465 4,995 27,377 43,910 21,505 — — Panama 241,097 268,356 61,435 25,304 10,399 36,204 — — Paraguay 100,816 127,970 11,800 10,652 — — — — Peru 272,752 150,301 47,245 8,033 26,647 — — — Singapore 75,095 90,955 — — — — — — Switzerland — — — 10,000 — — — — Trinidad and Tobago 165,995 181,676 — — — — — — United States of America 113,816 25,000 — — — — 89,794 — United Kingdom 10,409 — — — — — — — Uruguay — 619 33,955 — — — — — Multinational — — — — — — 112,582 — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 vi. The following tables include financial assets and liabilities that are offset in the consolidated financial statement or subject to an enforceable master netting arrangement: a) Derivative financial instruments – assets December 31, 2020 Gross amounts Net amount of offset in the assets presented Gross amounts not offset in the consolidated in the consolidated statement of Gross statement of consolidated financial position amounts of financial statement of Financial Cash collateral Description assets position financial position instruments received Net Amount Derivative financial instruments used for hedging 27,778 — 27,778 — (24,720) 3,058 Total 27,778 — 27,778 — (24,720) 3,058 December 31, 2019 Gross amounts Net amount of offset in the assets presented Gross amounts not offset in the consolidated in the consolidated statement of Gross statement of consolidated financial position amounts of financial statement of Financial Cash collateral Description assets position financial position instruments received Net Amount Derivative financial instruments used for hedging 11,157 — 11,157 — (9,350) 1,807 Total 11,157 — 11,157 — (9,350) 1,807 b) Securities sold under repurchase agreements and derivative financial instruments – liabilities December 31, 2020 Net amount of Gross amounts liabilities Gross amounts not offset in offset in the presented the consolidated statement of consolidated in the financial position Gross statement of consolidated Cash Description amounts of financial statement of Financial collateral Net liabilities position financial position instruments pledged Amount Securities sold under repurchase agreements (10,663) — (10,663) 11,998 18 1,353 Derivative financial instruments used for hedging (9,211) — (9,211) — 7,786 (1,425) Total (19,874) — (19,874) 11,998 7,804 (72) December 31, 2019 Net amount of Gross amounts liabilities Gross amounts not offset in offset in the presented the consolidated statement of consolidated in the financial position Gross statement of consolidated Cash Description amounts of financial statement of Financial collateral Net liabilities position financial position instruments pledged Amount Securities sold under repurchase agreements (40,530) — (40,530) 41,937 320 1,727 Derivative financial instruments used for hedging (14,675) — (14,675) — 14,632 (43) Total (55,205) — (55,205) 41,937 14,952 1,684 B. Liquidity risk i. The key measure used by the Bank for managing liquidity risk is the ratio of net liquid assets to deposits from customers and short-term funding. For this purpose, ‘net liquid assets’ includes cash and cash equivalents which consist of deposits from banks and customers, as well as corporate debt securities rated A- or above. The following table details the Bank's liquidity ratios, described in the previous paragraph, for the year ended December 31, 2020 and 2019, respectively: December 31, December 31, 2020 2019 At the end of the year 249.42 % 52.48 % Year average 115.98 % 37.82 % Maximum of the year 249.42 % 53.38 % Minimum of the year 53.26 % 23.23 % The following table includes the Bank’s liquid assets by geographical location: December 31, 2020 December 31, 2019 Cash and due from Cash and due from (in millions of USD dollars) banks Securities FVOCI Total banks United State of America 740 90 830 1,132 Other O.E.C.D countries 100 — 100 4 Latin America 6 — 6 4 Other countries — — — 20 Multinational — 112 112 — Total 846 202 1,048 1,160 The following table includes the Bank’s demand deposits from customers and its ratio to total deposits from customers: December 31, December 31, (in millions of USD dollars) 2020 2019 Demand liabilities and "overnight" 171 86 % Demand liabilities and "overnight" to total deposits 5.44 % 2.97 % The liquidity requirements resulting from the Bank’s demand deposits from customers is satisfied by the Bank’s liquid assets as follows: December 31, December 31, (in millions of USD dollars) 2020 2019 Total liquid assets 1,048 1,160 % Total assets to total liabilities 33.40 % 40.15 % % Total liquid assets in the U.S. Federal Reserve 65.68 % 97.37 % Even though the average term of the Bank's assets exceeds the average term of its liabilities, the associated liquidity risk is diminished by the short-term nature of a significant portion of the loan portfolio, since the Bank is primarily engaged in financing foreign trade. The following table includes the carrying amount for the Bank’s loans and securities short-term portfolio with maturity within one year based on their original contractual term together with its average remaining term: (in millions of USD dollars) December 31, December 31, 2020 2019 Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year according to its original terms 3,114 3,485 Average term (days) 195 189 The following table includes the carrying amount for the Bank’s loans and securities medium term portfolio with maturity over one year based on their original contractual terms together with their average remaining term: (in millions of USD dollars) December 31, December 31, 2020 2019 Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms 2,193 2,497 Average term (days) 1,382 1,185 ii. The following table details the future undiscounted cash flows of assets and liabilities grouped by their remaining maturity with respect to the contractual maturity: December 31, 2020 Up to 3 3 to 6 6 months to More than Gross inflows Carrying Description months months 1 year 1 to 5 years 5 years (outflows) amount Assets Cash and due from banks 863,831 — — — — 863,831 863,812 Securities and other financial assets, net 11,541 20,961 60,311 312,027 — 404,840 398,068 Loans, net 1,712,049 998,923 1,255,069 293,489 1,156,625 5,416,155 4,896,647 Derivative financial instruments - assets — 119 129 26,691 839 27,778 27,778 Total 2,587,421 1,020,003 1,315,509 632,207 1,157,464 6,712,604 6,186,305 Liabilities Deposits (2,678,292) (166,832) (293,306) (6,638) — (3,145,068) (3,140,875) Securities sold under repurchase agreements — (5,784) (4,977) — — (10,761) (10,663) Borrowings and debt, net (166,034) (60,816) (456,932) (1,425,806) (24,922) (2,134,510) (1,994,245) Derivative financial instruments - liabilities (3,020) (1,081) (71) (5,039) — (9,211) (9,211) Total (2,847,346) (234,513) (755,286) (1,437,483) (24,922) (5,299,550) (5,154,994) Contingencies Confirmed letters of credit 167,301 29,466 20,015 — — 216,782 216,782 Stand-by letters of credit and guarantees 35,041 106,943 55,963 12,550 — 210,497 210,497 Credit commitments — — 4,286 133,333 — 137,619 137,619 Total 202,342 136,409 80,264 145,883 — 564,898 564,898 Net position (462,267) 649,081 479,959 (951,159) 1,132,542 848,156 466,413 December 31, 2019 Up to 3 3 to 6 6 months to More than Gross inflows Carrying Description months months 1 year 1 to 5 years 5 years (outflows) amount Assets Cash and due from banks 1,178,288 — — — — 1,178,288 1,178,170 Securities and other financial assets, net 16,684 6,457 7,293 54,544 6,492 91,470 88,794 Loans, net 1,960,381 967,594 1,207,469 1,822,519 150,742 6,108,705 5,823,333 Derivative financial instruments - assets — 625 — 10,532 — 11,157 11,157 Total 3,155,353 974,676 1,214,762 1,887,595 157,234 7,389,620 7,101,454 Liabilities Deposits (2,574,180) (198,786) (122,680) — — (2,895,646) (2,893,555) Securities sold under repurchase agreements (40,691) — — — — (40,691) (40,530) Borrowings and debt, net (1,407,612) (451,736) (230,776) (1,147,699) (13,422) (3,251,245) (3,148,864) Derivative financial instruments - liabilities (2,425) (775) (1,711) (12,014) — (16,925) (14,675) Total (4,024,908) (651,297) (355,167) (1,159,713) (13,422) (6,204,507) (6,097,624) Contingencies Confirmed letters of credit 84,235 77,493 7,592 — — 169,320 169,320 Stand-by letters of credit and guarantees 35,906 95,440 114,078 10,057 — 255,481 255,481 Credit commitments — — — 68,571 — 68,571 68,571 Total 120,141 172,933 121,670 78,628 — 493,372 493,372 Net position (989,696) 150,446 737,925 649,254 143,812 691,741 510,458 The amounts in the tables above have been compiled as follows: Type of financial instrument Basis on which amounts are compiled Financial assets and liabilities Undiscounted cash flows, which include estimated interest payments. Issued financial guarantee contracts, and loan commitments Earliest possible contractual maturity. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. Derivative financial liabilities Contractual undiscounted cash flows. The amounts shown are the gross nominal inflows and outflows for derivatives that simultaneously settle gross or net amounts. iii. As part of the management of liquidity risk arising from financial liabilities, the Bank holds liquid assets comprising cash and cash equivalents. The following table sets out the components of the Banks’s liquidity reserves: December 31, December 31, 2020 2019 Amount Fair Value Amount Fair Value Balances with Central Banks 688,612 688,612 1,129,016 1,129,016 Cash and balances with other bank (1) 157,396 157,396 30,702 30,702 Total Liquidity reserves 846,008 846,008 1,159,718 1,159,718 (1) Excludes pledged deposits. iv. The following table sets out the Bank’s financial assets available to support future funding: December 31, 2020 Guaranteed Available as collateral Cash and due from banks 17,804 846,008 Notional of investment securities 11,450 371,900 Loans at amortized cost — 4,911,397 Total assets 29,254 6,129,305 December 31, 2019 Guaranteed Available as collateral Cash and due from banks 18,452 1,159,718 Notional of investment securities 40,531 38,045 Loans at amortized cost — 5,823,333 Total assets 58,983 7,021,096 C. The Bank manages market risk by considering the consolidated financial situation of the Bank. For the definition of market risk and information on how the Bank manages the market risks of trading and non-trading portfolios, see note 6. i. The following is a summary of the Bank’s interest rate gap position for the financial assets and liabilities based on their next repricing date: December 31, 2020 Up to 3 3 to 6 6 months to More than Non interest Description months months 1 year 1 to 5 years 5 years rate risk Total Assets Demand deposits and time deposits 859,481 — — — — 4,331 863,812 Securities and other financial assets 9,554 9,139 55,960 320,769 — — 395,422 Loans 3,468,477 895,794 434,813 117,262 — — 4,916,346 Total assets 4,337,512 904,933 490,773 438,031 — 4,331 6,175,580 Liabilities Demand deposits and time deposits (2,675,867) (166,317) (290,000) (6,500) — (216) (3,138,900) Securities sold under repurchase agreements — (5,728) (4,935) — — — (10,663) Borrowings and debt (1,103,703) (45,859) (16,511) (794,522) (24,475) — (1,985,070) Total liabilities (3,779,570) (217,904) (311,446) (801,022) (24,475) (216) (5,134,633) Net effect of derivative financial instruments held for interest risk management (3) (373) 58 15,982 839 — 16,503 Total interest rate sensitivity 557,939 686,656 179,385 (347,009) (23,636) 4,115 1,057,450 December 31, 2019 Up to 3 3 to 6 6 months to More than Non interest Description months months 1 year 1 to 5 years 5 years rate risk Total Assets Demand deposits and time deposits 1,170,092 — — — — — 1,170,092 Securities and other financial assets 14,935 6,351 5,055 53,300 — — 79,641 Loans 4,031,432 1,096,355 548,028 208,443 8,739 — 5,892,997 Total assets 5,216,459 1,102,706 553,083 261,743 8,739 — 7,142,730 Liabilities Demand deposits and time deposits (2,570,324) (197,300) (120,419) — — (293) (2,888,336) Securiti |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2020 | |
Financial risk management | |
Financial risk management | 6. The risk is inherent to the Bank's activities. Risks are classified into two categories: financial and non-financial risks. Financial risks are those associated within the Bank’s business model, with impact in the Bank’s consolidated statement of financial position and profit or loss, as follows: country risk, credit risk, market risk and liquidity risk. Non-financial risks are those related to the Bank's operating model and the regulatory environment that may affect the integrity of the information, the Bank’s reputation and also its profit or loss accounts, as follows: operational, technological, cyber security, compliance (know your customer, money laundering, terrorism financing), environmental, fraud risks, among others. Lead by the Head of Integrated Risk Management, an ongoing process of identification, measurement, monitoring, control, mitigation and reporting to all operating areas within the Bank is carried out continuously, considering the different types of risk to which the Bank is exposed according to the size and complexity of its operations, products and services. The Bank has in place policies, standards and procedures, structures, and manuals associated to the integral risk management, designed to identify potential events that may affect it, all of which are consistent with the risk profile of the business, considering the complexity and the volume of its operations. The Board of Directors is responsible for establishing the Bank's acceptable risk profile, for which it has the knowledge and understanding of the risks to which the Bank is exposed to. The Board of Directors designate the members of the Risk Policy and Assessment Committee (CPER, for its acronym in Spanish), which is responsible for overseeing the overall risk process within the Bank. CPER oversees the assessment and recommendation for approval to the Board of Directors of all the policies relating to a reasonable Integrated Risk Management. Furthermore, the Committee also reviews and assesses the exposure, within the risk levels stated in its policies, by which the Bank is willing to assume the various risks it faces through the business management. The Head of Integrated Risk Management directly reports to the CEO and the CPER, and has as a main duty to ensure the comprehensive risk management of the Bank’s operating model and IT platform, as well as the financial and credit related risks, being responsible for implementing and maintaining risk-related procedures in place to ensure that an independent control process is kept, monitoring the compliance of the risk principles, policies and limits at all levels throughout the Bank. The Head of Integrated Risk Management works closely with CPER to ensure that procedures are consistent with the Integrated Risk Management Governance Framework. Risk Management Committees: - Operational and Information Security Risk Committee - Country Risk Committee - Credit Committee (Management Credit Committee / Board of Directors Delegate Credit Committee / CPER) - Management and Monitoring Committee - Asset and Liability Committee (ALCO) A. As part of the embedded risk, the Bank will incur in losses in and/or its assets will be impaired as a result of the failure of its borrowers to comply in a timely manner or to meet the terms of credit agreements. The Bank's customer base consists primarily of corporations, large companies, local and regional financial institutions, as well as state-owned enterprises. The Bank focuses its risk assessment on an in-depth analysis of the entity or economic group that involves: the nature of the business, the countries where it operates, types of products offered, duration of the relationship, track record and reputation, among others. Credit risk management comprises two main stages: origination and monitoring. The credit origination process involves the activities of identifying and analyzing the customer's creditworthiness and approving the terms and conditions for credit extensions. The monitoring process consists of annual credit reviews of existing exposures, "ad hoc" reviews on a case-by-case basis when conditions so require, and portfolio reviews by the Bank's credit committees. The objective is to maximize the risk-adjusted rate of return by keeping credit risk exposures within acceptable parameters. This process involves the Risk and Business Units under the supervision of the Board of Directors, through the Risk Policy and Assessment Committee (CPER). The Bank has developed internally a loss model to determine the required level of expected credit losses associated with potential losses in financial instruments, based on IFRS 9 - Financial Instruments. Individually assessed reserves The Bank individually assesses the appropriate reserves for certain significant financial assets, by considering interest payment delays, credit rating downgrading or any breach of the original contractual terms. Factors considered when determining a reserve include the sustainability of the counterparty’s business plan, its ability to improve performance when facing a difficult financial situation, projected payments and expected results in the event of bankruptcy, the availability of other financial support, the realizable value of collateral, and the timing of expected cash flows. Impairment loss is assessed at each reporting date, unless unforeseen circumstances require special attention. Collectively assessed reserves Reserves are separately assessed at each reporting date for each portfolio. The collective assessment is made for groups of assets with similar risk characteristics, to determine whether it is appropriate to provide for, due to incurred loss events for which there is objective evidence, but the effects of which are not yet evident in individual loan assessments. The collective assessment considers either portfolio information (e.g. historical losses in the portfolio, delinquency levels, credit utilization, loan-to-collateral ratios and expected collections and recoveries after impairment) and economic data (such as current economic conditions, unemployment, local or industry-specific situations). The Bank generally supports its assessment on historical experience and forward-looking information. However, when significant market, regional and/or global events occur, the Bank includes these macroeconomic factors in its assessments. Depending on the characteristics of the individual or collective assessment, these factors include: unemployment rates, current levels of impaired debt, changes in law, changes in regulation, bankruptcy trends and other consumer data. The Bank may use the above factors, as appropriate, to adjust for impairment. The time elapsed since a loss is incurred and a specific individual reserve requirement is identified should be taken into consideration for the assessment. The impairment reserve is reviewed by credit management to ensure alignment with the Bank's general policy. Financial guarantees and letters of credit are assessed in a similar manner to amortized cost loans. A supplemental qualitative review may result in adjustments to the level of provisions, based on prospective reviews of potential risk scenarios for businesses or loans not yet captured in the Bank's historical information. The Bank has developed an internal customer, counterparty and country rating model, which allows for proactive risk management in terms of exposure limits, transaction typology and time limits, among others. Derivative financial instruments Credit risk arising from derivative financial instruments is, at any time, limited to those with positive fair values, as recognized in the consolidated statement of financial position at fair value. With derivatives that are settled gross, the Bank is also exposed to settlement risk, which is the risk that the Bank will honor its obligation, but the counterparty will be unable to deliver the value of the consideration. Credit Commitments. The Bank makes available to its customers guarantees that may require the Bank to make payments on behalf of these customers and to take on commitments to issue lines of credit to ensure their liquidity needs. Letters of credit and guarantees (including standby letters of credit) commit the Bank to make payments on behalf of customers for a specific event, usually related to the import or export of goods. Such commitments expose the Bank to risks similar to those for loans which are mitigated by the same controls established in processes and policies. B. Liquidity risk is the possibility of an economic loss to the Bank due to the difficulty in liquidating assets or obtaining financial resources on normal terms. The Bank conducts daily reviews of the Liquidity Coverage Ratio (LCR). The LCR methodology follows local standards and guidelines recommended by the Basel Committee. The Bank also monitors the Net Stable Funding Rate (NSFR), to maintain an adequate funding structure over the long term. Liquidity is controlled through the periodic review of: - The maturity schedule to identify maturity "gaps" in the various time frames. - Deposit concentration report to identify possible increases in amounts and maturities that may affect the Bank's liquidity. The Bank has a Liquidity Contingency Plan in place, which was designed to monitor a series of indicators that could trigger a liquidity event, with potential impact on the Bank's operations and establishes an action plan so that the Bank's liquidity is always assured. C. Market risk is the risk that the value of the Bank's assets and liabilities will decline due to changes in market conditions that may adversely affect its income. The risk is inherent in the financial instruments associated with the Bank's operations and activities, including: loans, investments and securities, liabilities and debt, derivatives, etc. The main risks include: interest rate risk and foreign exchange risk, which can affect asset prices and result in losses for the Bank. With respect to interest rate risk management, the Bank's policy requires Management to assess the asset and liability positions in order to reduce potential adverse impacts on net interest income due to market interest rates fluctuations. The Bank manages interest rate risk by closely monitoring the appreciation and decline in value of the assets and liabilities through hedging to reduce potential negative impacts on earnings and capital. Management conducts periodic sensitivity analyses simulating market changes in interest rates to determine potential impacts on net interest income (both upward and downward). In addition, the Bank monitors the DV01 limit, for which a parallel 1-base point shock is applied to the interest rate curve and assesses if there is any impact on capital. Foreign exchange risk is the risk of change in the market value of a financial instrument due to fluctuations in the exchange rate of a given currency. The Bank operates primarily in U.S. dollars, so exposure to this type of risk is minimized. For transactions in currencies other than the US dollar, the Bank manages the exchange rate risk by arranging derivative instruments for hedging purposes, or by establishing natural hedges matching assets and liabilities expressed in the same currency. For liquidity positions, the Bank has established thresholds in order to limit the maximum level of exposure. D. Operational risk is the possibility of incurring losses due to deficiencies, failures or inadequacies in human resources, processes, technology, infrastructure, management information, models used, or the occurrence of external events. If this occurs, it can damage the Bank's reputation and result in regulatory sanctions, which can lead to financial losses. The Bank, like any other financial institution, is exposed to operational risks. Bladex’s main objective with Operational Risk Management is to reduce losses generated from operational risk and maintain an adequate administration thereof through the use of established management tools such as: risk profile, risk mapping, global and specific limits, operational risk indicators, and using as well the analysis of what is recorded in the Events and Incidents Database in order to monitor action plans of the actual or potential risks. The Bank emphasizes the awareness of its employees, promoting a Risk Management culture that has continuity over time and that allows them to understand and assimilate the importance of this concept from each of the processes that are executed within their areas. This is done throughout the training of all employees on an annual basis to raise their awareness in general terms of operational risks and to include updates on the standard or regulatory laws as required. E. Fraud is any intentional act or omission designed to deceive others, resulting in a loss for the victim and/or a gain for the perpetrator. Identification of fraud risk considers both internal and external factors, and their impact on the achievement of the Bank's objectives. Internal fraud is related to losses arising from any type of action, involving Bank employees, aimed at defrauding, misappropriating property or violating regulations, laws or internal policies. External fraud is related to losses arising from any type of action by a third party aimed at defrauding, misappropriating property or infringing the law. To manage this risk, the Bank has a general fraud risk management program in place, which includes: establishing fraud risk governance policies, evaluating fraud risk, designing and developing control activities to prevent and detect fraud, and investigating fraud, including monitoring and evaluating the fraud risk management program. F. Cybersecurity or information technology security refers to the procedures designed, and measures implemented to protect technological appliances, networks, programs and data against cyber-attacks, in other words, unauthorized access or attacks aimed at operating, or misusing, the Bank's technology platform to access the financial system. The Bank has approved policies and implemented procedures defining roles and responsibilities for managing information security as part of the IT security and technology risk management framework. These policies and procedures apply throughout the Bank and cover all relationships between the workforce, vendors and suppliers, as well as any other individual who, on a permanent or temporary basis with the Bank, has some form of access to data, resource management and IT systems. The Bank's Information Security Officer is responsible for ensuring compliance with policies and procedures by anyone with access to the Bank's systems. The Bank's cybersecurity program has been developed with a holistic approach, allowing us to encompass both technical and strategic measures in a single framework. Impacts and actions implemented in the context of COVID-19 The COVID-19 pandemic and the measures implemented globally to prevent its spread could negatively impact the Bank’s business in a number of ways. These impacts may include, among others, reduced business volumes, restricted access to funding sources, insufficient liquidity, delayed or defaulted payments from the Bank’s customers or from the Bank´s financial counterparties, increased levels of indebtedness or the unavailability of sufficient financing for the Bank’s borrowers, and other factors which are beyond the Bank’s control. In this context, and in order to mitigate these risks, the Bank has implemented a series of measures and actions described below. i. Liquidity risk Following the COVID-19 pandemic and its potential impact on the availability of resources, the Bank activated its Liquidity Contingency Plan, based on internally designed market triggers, in order to ensure a robust position given the situation caused by the pandemic. This led the Bank to adjust the scenario of its internal liquidity coverage ratio "LCR" from a regular level of 1 to a level of 3, which implies more restrictive assumptions for inflows and outflows of cash, with a downward adjustment of the percentages of funding sources renewals and of loan portfolio collections. Other additional elements included in the Liquidity Contingency Plan are, among others, the collection of all loan maturities and the case-by-case approval of all new credit disbursements by the Credit Committee, establishing at least biweekly meetings. Following the execution of the previously described Liquidity Contingency Plan, the Bank achieved a significant increase in its cash position in a short period of time, managing to continuously maintain a robust level of liquidity, exceeding regulatory requirements. The Bank’s capacity to maintain these strong liquidity levels, even in the current context, is attributable to historically diversified and stable funding sources, including deposits from central banks in Latin America and the Caribbean, who are also the Bank’s Class A shareholders. In addition, the Bank has maintained a fluid access to a significant base of correspondent banks and investors from debt capital markets across the globe, which have maintained and even increased their availability of funding to the Bank in the last few months. Furthermore, the Bank has been able to collect on the majority of scheduled maturities of its loan portfolio and has then disbursed new transactions on a selective basis, prioritizing prudent risk management over loan growth, with a focus on adequate levels of risk / return. The Bank intends to maintain this additional level of liquidity as long as the current environment of volatility and uncertainty remains, therefore it will continue to give preference to maintaining a resilient and robust liquidity position over the growth of its balance sheet and / or its profitability. ii. The Bank determines the appropriate level of allowances for expected credit losses based on a forward-looking process that estimates the probable loss inherent in its Credit Portfolio, which is the result of a statistical analysis supported by the Bank’s historical portfolio performance, external sources, and the judgment of the Bank’s management. This level of allowance reflects assumptions and estimates made in the context of changing political and economic conditions in the region, including but not limited to the impact of recent ongoing turmoil related to COVID-19. The Bank has a Business Model mainly focused on financial institutions and large corporations, a portion of which represents “quasi-sovereign” risks, with an average short-term duration, allowing an agile adjustment of exposure in adverse scenarios. Actions implemented due to the COVID-19 pandemic In late March 2020, due to the context, Bladex elaborated a heat map including each country and industry in which it maintains exposure. This allowed the Bank to identify customers with higher levels of risk depending on the country, industry and financial position. Four main variables were used to assign the level of customer risk: Financial Institutions Corporations a. a. b. a. b. i. ii. d. The Bank’s Management holds conference and video calls frequently with its customers, focusing on those operating in higher risk industries. Any relevant information is presented to the Credit Committee. As a result of the pandemic crisis, the loans portfolio was significantly reduced due to the implementation of the Liquidity Contingency Plan as the Bank's strategy to adjust the credit risk of the portfolio and prioritize liquidity. Initially, all operations were submitted for approval on a case-by-case basis by the Credit Committee with a meeting frequency of at least twice per week. Subsequently, the Bank progressively resumed originations with clients with good quality profiles with whom it maintained close commercial relationships and, based on the new information available, limits were raised for approval by the CPER for specific cases of short-term transactional clients with good financial situation. The permanent review of transactions maturing in a 90-day horizon, has allowed the Bank to take quick actions to collect and to identify cases with a higher level of risk. Moreover, the Bank is assessing on a periodic basis the adequacy of the allowances for expected credit losses. The Bank holds a low-risk portfolio, particularly due to the nature of its business, which focuses on a portfolio on financial institutions and corporations in the region and “quasi-sovereign” entities in strategic sectors, with whom it mainly conducts foreign trade operations. At December 31, 2020, 58% of placements were in investment grade countries, along with a short-term portfolio profile with 61% of the portfolio maturing within 1 year. The Bank periodically assesses the adequacy and the validity of the allowance for expected credit losses calculation model. When assessing if the calculation model remains valid, characteristics and behavior of the loan portfolio are considered as a fundamental factor, as well as the active management by Risk and Business areas. Additionally, periodic and specific economic analyses that contribute to the active management of the portfolio are considered. Given the current situation, the Bank has prepared 40 individual country risk analyses, as well as a comprehensive analysis at the beginning of the pandemic for 20 countries of Latin America and the Caribbean. Likewise, the results of the alert model have served as a guide to focus the consideration of the forward looking, which are duly incorporated in the rating models. In addition, statistical studies were conducted on the relationship between the quality of the loan portfolio and the behavior of the Latin American macroeconomic environment, concluding that these maintain a low correlation or a correlation that is not congruent with the behavior of the portfolio given the macroeconomic conditions. As a result of the above, the Bank has concluded that the methodology used remains valid in the context of the COVID-19 pandemic. iii. The Bank's Management has not made any material adjustments to the Market Risk valuation metrics and models. iv. Actions implemented due to the COVID-19 pandemic The Bank successfully implemented its Business Continuity Plan, implicating among other things, that 100% of its staff is working remotely (Telecommuting). This has increased the frequency of risks associated with cybersecurity, among them: · Increased e-mail attack attempts. · Increased attack attempts due to the widespread use of remote connection protocols. To counteract these risks, the Bank's Management has reinforced the controls as follows: · Monitoring of main attack vectors was expanded: e-mail and end-user devices. · Awareness and training activities within the organization were reinforced. · Frequency of vulnerability scans has been intensified. |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair value of financial instruments | |
Fair value of financial instruments | 7. The Bank determines the fair value of its financial instruments using the fair value hierarchy, which requires the Bank to maximize the use of observable inputs (those that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market information obtained from sources independent of the reporting entity) and to minimize the use of unobservable inputs (those that reflect the reporting entity’s own assumptions about the inputs that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances) when measuring fair value. Fair value is used on a recurring basis to measure assets and liabilities in which fair value is the primary basis of accounting. Additionally, fair value is used on a non-recurring basis to assess assets and liabilities for impairment or for disclosure purposes. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, the Bank uses some valuation techniques and assumptions when estimating fair value. The Bank applied the following fair value hierarchy: Level 1 – Assets or liabilities for which an identical instrument is traded in an active market, such as publicly-traded instruments or futures contracts. Level 2 – Assets or liabilities valued based on observable market data for similar instruments, quoted prices in markets that are not active; or other observable inputs that can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Assets or liabilities for which significant valuation inputs are not readily observable in the market; instruments measured based on the best available information, which might include some internally-developed data, and considers risk premiums that a market participant would require. When determining the fair value measurements for assets and liabilities that are required or permitted to be recorded at fair value, the Bank considers the principal or most advantageous market in which it would transact and considers the inputs that market participants would use when pricing the asset or liability. When possible, the Bank uses active markets and observable prices to value identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Bank uses observable market information for similar assets and liabilities. However, certain assets and liabilities are not actively traded in observable markets and the Bank must use alternative valuation techniques to determine the fair value measurement. The frequency of transactions, the size of the bid-ask spread, and the size of the investment are factors considered in determining the liquidity of markets and the relevance of observed prices in those markets. When there has been a significant decrease in the valuation of the financial asset or liability, or in the level of activity for a financial asset or liability, the Bank uses the present value technique which considers market information to determine a representative fair value in usual market conditions. A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring basis, including the general classification of such assets and liabilities under the fair value hierarchy is presented below: A. Recurring valuation Financial instruments at FVTPL and FVOCI Financial instruments at FVTPL and FVOCI are carried at fair value, which is based upon quoted prices when available, or if quoted market prices are not available, on discounted expected cash flows using market rates commensurate with the credit quality and maturity of the security. When quoted prices are available in an active market, financial instruments at FVTPL and financial instruments at FVOCI are classified in level 1 of the fair value hierarchy. If quoted market prices are not available or they are available in markets that are not active, then fair values are estimated based upon quoted prices for similar instruments, or where these are not available, by using internal valuation techniques, principally discounted cash flows models. Such securities are classified within levels 2 and 3 of the fair value hierarchy. Derivative financial instruments and hedged items that qualify as a fair value hedging relationship The valuation techniques and inputs depend on the type of derivative and the nature of the underlying instrument. Exchange-traded derivatives that are valued using quoted prices are classified within level 1 of the fair value hierarchy. For those derivative contracts without quoted market prices, fair value is based on internal valuation techniques using inputs that are readily observable and that can be validated by information available in the market. The principal technique used to value these instruments is the discounted cash flows model and the key inputs considered in this technique include interest rate yield curves and foreign exchange rates. These derivatives are classified within level 2 of the fair value hierarchy. The fair value adjustments applied by the Bank to its derivative carrying values include credit valuation adjustments (“CVA”), which are applied to OTC derivative instruments, in which the base valuation generally discounts expected cash flows using the Overnight Index Swap (“OIS”) interest rate curves. Because not all counterparties have the same credit risk as that implied by the relevant OIS curve, a CVA is necessary to incorporate the market view of both, counterparty credit risk and the Bank’s own credit risk, in the valuation. Own-credit and counterparty CVA is determined using a fair value curve consistent with the Bank’s or counterparty credit rating. The CVA is designed to incorporate a market view of the credit risk inherent in the derivative portfolio. However, most of the Bank’s derivative instruments are negotiated bilateral contracts and are not commonly transferred to third parties. Derivative instruments are normally settled contractually, or if terminated early, are terminated at a value negotiated bilaterally between the counterparties. Therefore, the CVA (both counterparty and own-credit) may not be realized upon a settlement or termination in the normal course of business. In addition, all or a portion of the CVA may be reversed or otherwise adjusted in future periods in the event of changes in the credit risk of the Bank or its counterparties or due to the anticipated termination of the transactions. Financial instruments assets and liabilities recognized and designated as hedged items that qualify as a fair value hedging relationship are measured at amortized cost and adjusted for the effect of the risks covered in the hedging relationship. Financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy are described below: December 31, 2020 Level 1 Level 2 Level 3 Total Assets Securities and other financial assets: Securities at FVOCI - Corporate debt — 226,235 — 226,235 Securities at FVOCI - Sovereign debt — 5,113 — 5,113 Loans at fair value through profit or loss — — 4,949 4,949 Total securities and other financial assets — 231,348 4,949 236,297 Derivative financial instruments - assets: Interest rate swaps — 1,831 — 1,831 Cross-currency swaps — 25,947 — 25,947 Foreign exchange forwards — — — — Total derivative financial instrument assets — 27,778 — 27,778 Total assets at fair value — 259,126 4,949 264,075 Liabilities Derivative financial instruments - liabilities: Interest rate swaps — 1,774 — 1,774 Cross-currency swaps — 3,848 — 3,848 Foreign exchange forwards — 3,589 — 3,589 Total derivative financial instruments - liabilities — 9,211 — 9,211 Total liabilities at fair value — 9,211 — 9,211 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Securities and other financial assets: Securities at FVOCI - Sovereign debt — 5,094 — 5,094 Equity instrument at FVOCI — 1,889 — 1,889 Debt instruments at fair value through profit or loss — — 6,492 6,492 Total securities and other financial assets — 6,983 6,492 13,475 Derivative financial instruments - assets: Interest rate swaps — 407 — 407 Cross-currency swaps — 10,125 — 10,125 Foreign exchange forwards — 625 — 625 Total derivative financial instrument assets — 11,157 — 11,157 Total assets at fair value — 18,140 6,492 24,632 Liabilities Derivative financial instruments - liabilities: Interest rate swaps — 1,903 — 1,903 Cross-currency swaps — 10,197 — 10,197 Foreign exchange forwards — 2,575 — 2,575 Total derivative financial instruments - liabilities — 14,675 — 14,675 Total liabilities at fair value — 14,675 — 14,675 Fair value calculations are provided only for a limited portion of assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used for estimates, comparisons of fair value information disclosed by the Bank with those of other companies may not be meaningful for comparative analysis. B. Non-recurring valuation The following methods and inputs were used by the Bank’s management in estimating the fair values of financial instruments whose fair value is not measured on a recurring basis: Financial instruments with carrying value that approximates fair value The carrying value of certain financial assets, including cash and due from banks, interest-bearing deposits in banks, customers’ liabilities under acceptances and certain financial liabilities including customer’s demand and time deposits, securities sold under repurchase agreements and acceptances outstanding, due to their short-term nature, is considered to approximate their fair value. These instruments are classified in level 2. Securities at amortized cost The fair value has been estimated upon current market quotations, where available. If quoted market prices are not available, fair value has been estimated based upon quoted prices of similar instruments, or where these are not available, on discounted expected future cash flows using market rates commensurate with the credit quality and maturity of the security. These securities are classified in levels 2 and 3. Loans The fair value of the loan portfolio, including impaired loans, is estimated by discounting expected future cash flows using the current rates at which loans would be made to borrowers with similar credit ratings and for the same remaining maturities, considering the contractual terms in effect as of December 31 of the relevant year. These assets are classified in levels 2 and 3. Transfer of financial assets Gains or losses on sale of loans depend in part on the carrying amount of the financial assets involved in the transfer, and their fair value at the date of transfer. The fair value of these instruments is determined based upon quoted market prices when available or is based on the present value of future expected cash flows using information related to credit losses, prepayment speeds, forward yield curves, and discounted rates commensurate with the risk involved. Short and long-term borrowings and debt The fair value of short and long-term borrowings and debt is estimated using discounted contractual future cash flows based on the current incremental borrowing rates for similar types of borrowing arrangements, considering the changes in the Bank’s credit margin. These liabilities are classified in level 2. The following table provides information on the carrying value and the estimated fair value of the Bank’s financial instruments that are not measured on a recurring basis: December 31, 2020 Carrying Fair value value Level 1 Level 2 Level 3 Assets Cash and deposits on banks 863,812 863,812 — 863,812 — Securities at amortized cost (1) 165,564 168,110 — 157,698 10,412 Loans at amortized cost, net (2) 4,891,698 4,972,599 — 4,972,599 — Customers' liabilities under acceptances 74,366 74,366 — 74,366 — Investment properties 3,214 3,214 — — 3,214 Liabilities Deposits 3,140,875 3,140,875 — 3,140,875 — Securities sold under repurchase agreements 10,663 10,663 — 10,663 — Borrowings and debt, net (3) 1,966,271 1,989,719 — 1,989,719 — Customers' liabilities under acceptances 74,366 74,366 — 74,366 — December 31, 2019 Carrying Fair value value Level 1 Level 2 Level 3 Assets Cash and deposits on banks 1,178,170 1,178,170 — 1,178,170 — Securities at amortized cost (1) 75,271 75,724 — 56,914 18,810 Loans at amortized cost, net (2) 5,823,333 6,162,885 — 6,101,040 61,845 Customers’ liabilities under acceptances 115,682 115,682 — 115,682 — Investment properties 3,494 3,494 — — 3,494 Liabilities Deposits 2,893,555 2,893,555 — 2,893,555 — Securities sold under repurchase agreements 40,530 40,530 — 40,530 — Borrowings and debt, net 3,118,396 3,126,333 — 3,126,333 — Customers’ liabilities under acceptances 115,682 115,682 — 115,682 — (1) The carrying value of securities at amortized cost is net of accrued interest receivable of $1.9 million and the allowance for expected credit losses of $0.4 million as of December 31, 2020 (accrued interest receivable of $0.8 million and the allowance for expected credit losses of $0.1 million as of December 31, 2019). (2) The carrying value of loans at amortized cost is net of accrued interest receivable of $27.3 million, the allowance for expected credit losses of $41.1 million and unearned interest and deferred fees of $5.8 million for December 31, 2020 (accrued interest receivable of $41.7 million, the allowance for expected credit losses of $99.3 million and unearned interest and deferred fees of $12.1 million for December 31, 2019). (3) Borrowings and debt exclude lease liabilities for an amount of $18.7 million and $19.9 million as of December 31, 2020 and December 31, 2019, respectively. C. Valuation framework The Bank has an established control framework for the measurement of fair values, which is independent of front office management, to verify the valuation of significant fair value measurements of derivative financial instruments, securities and other financial instrument. Specific controls include: - Verification of observable pricing. - Validation of performance of valuation models. - A review and approval process for new models and changes to existing models. - Analysis and assessment of significant valuation fluctuations. - Review of significant unobservable inputs, valuation adjustments and changes to fair value measurement of Level 3 instruments. D. Level 3 - Fair value measurement The following table presents the movement of a level 3 financial instruments measured at fair value: Debt instruments at fair value through Loans at fair value profit or loss through profit or ( debentures ) loss Total At December 31, 2018 — — — Additions 8,750 — 8,750 Net changes in fair value (2,258) — (2,258) Sales — — — At December 31, 2019 6,492 — 6,492 Additions 1,433 5,750 7,183 Net changes in fair value (2,175) (801) (2,976) Sales (5,750) — (5,750) At December 31, 2020 — 4,949 4,949 For financial instruments measured at fair value in level 3 category, the Bank uses the following methodologies and inputs using present value techniques. Loans at fair value through profit or loss - Level 3 The Bank realized the sale of the debt instrument measured at fair value through profit or loss for $5.8 million. As a result, the Bank recognized a loan and classified it at fair value through profit or loss with a carrying amount of $4.9 million as of December 31, 2020. Inputs used in the fair value measurement are detailed as follows: Observable inputs Unobservable inputs - Forward interest rate referenced to 12M USD Libor - Discount rate or discount margin of floating rate bond "USD US composite B+" with credit risk similar to the instrument analyzed adjusted by the country risk premium. Fair value measurement sensitivity to unobservable inputs – discount rate 2020 A significant increase in volatility would result in a lower fair value 3.128% to 8.89 % D. Level 3 - Fair value measurement As of December 31, 2020, Management used market data published in Bloomberg for the construction of the discount curve, which allows for a more accurate measurement of the instrument. The effect of unobservable inputs on fair value measurement Although the Bank believes that its estimates of fair value are appropriate, the use of different methodologies or assumptions could lead to different fair value measurements. For fair value measurements in level 3, changing one or more of the assumptions used would have the following effects. Effect on Loans at fair value through profit or loss profit or loss + 100 bps to the observable and unobservable inputs (149) - 100 bps to the observable and unobservable inputs Debt instruments "debentures" at fair value through profit or loss - Level 3 The significant inputs used in determining the fair value of instruments categorized as level 3, using present value techniques, are as follows: 2020 2019 Unobservable inputs Unobservable inputs - Discount rate based on the return from CCC Corporate S&P Bond Index - Discount rate for similar companies of the same business line adjusted due to the debt-equity structure of the issuer - Probability of occurrence of the flows of each sale or conversion scenario Observable inputs - Average recovery factor for companies that reported default - Moody's Range of estimates Fair value measurement sensitivity to unobservable inputs – discount rate 2020 2019 A significant increase in volatility would result in a lower fair value 10.00% to 20.00% 12.97% to 27.50% During 2020, Management used the discount rate based on the return from CCC Corporate S&P Bond Index, mostly composed of data from US/LATAM markets displayed in Bloomberg, which allows a more reliable measurement for the instrument. |
Cash and due from banks
Cash and due from banks | 12 Months Ended |
Dec. 31, 2020 | |
Cash and due from banks | |
Cash and due from banks | 8. The following table presents the details of interest-bearing deposits in banks and pledged deposits: December 31, December 31, 2020 2019 Cash and due from banks 4,331 8,078 Interest-bearing deposits in banks 859,481 1,170,092 Total 863,812 1,178,170 Less: Pledged deposits 17,804 18,452 Total cash and cash equivalents 846,008 1,159,718 December 31, 2020 December 31, 2019 Interest rate Interest rate Amount range Amount range Interest-bearing deposits in banks: Demand deposits (1) 749,481 0.03% to 3.08% 1,150,092 1.55% to 5.10% Time deposits 110,000 — 20,000 — Total 859,481 1,170,092 Pledged deposits 17,804 18,452 (1) Interest-bearing demand deposits based on daily rates determined by banks. In addition, rates of 3.08% and 5.10% correspond to a deposit placed in México. December 31, December 31, 2020 2019 Country: United States of America (1) 11,515 5,645 Switzerland 3,027 9,567 Japan 1,330 1,470 Mexico 790 — Canada 610 — Netherlands 334 — United Kingdom 130 — France 50 1,770 Spain 18 — Total 17,804 18,452 (1) Includes pledged deposits of $10.0 million at December 31, 2020 and $3.5 million at December 31, 2019, with the New York State Banking Department under March 1994 legislation and deposits pledged to guarantee derivative financial instrument transactions. |
Securities and other financial
Securities and other financial assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Securities and other financial assets, net | |
Securities and other financial assets, net | 9. Securities and other financial assets are presented as follows: At fair value At December 31, 2020 With changes in other comprehensive income (loss) With Total securities and Recyclable to Non-recyclable to changes in other financial Carrying amount Amortized cost profit and loss profit and loss profit or loss assets, net Principal 164,074 231,348 — — 395,422 Interest receivable 1,985 1,156 — — 3,141 Reserves (1) (495) (43) — — (538) 165,564 232,461 — — 398,025 At fair value At December 31, 2019 With changes in other comprehensive income (loss) With Total securities and Recyclable to Non-recyclable to changes in other financial Carrying amount Amortized cost profit and loss profit and loss profit or loss assets, net Principal 74,547 5,094 1,889 6,492 88,022 Interest receivable 837 48 — — 885 Reserves (1) (113) — — — (113) 75,271 5,142 1,889 6,492 88,794 (1) The loss allowance for losses for securities at FVOCI is included in equity in the consolidated statement of financial position in the line Other comprehensive income. As December 31, 2020 and 2019 the principal plus interest receivable of securities at FVOCI is $232,504 and $5,142, respectively. As of December 31, 2020, and 2019, the Bank sold 261,164 and 767,301 shares, respectively, which were designated at their initial recognition at fair value with changes in other comprehensive income due to market changes affecting the liquidity of the instrument. The cumulative fair value of the shares sold was $1.7 million and $4.8 million, respectively, and the cumulative loss recognized in OCI was $602 thousand and $151 thousand, respectively, transferred to retained earnings. Securities and other financial assets by contractual maturity are shown in the following table: At fair value At December 31, 2020 With changes in other comprehemsive income Recyclabe to Non-recyclable to With changes in Total securities and other Amortized cost profit ans loss profit and loss profit or loss financial assets, net Due within 1 year 40,625 34,027 — — 74,652 After 1 year but within 5 years 123,449 197,321 — — 320,770 After 5 years but within 10 years — — — — — Non maturity — — — — — Balance - principal 164,074 231,348 — — 395,422 At fair value At December 31, 2019 With changes in other comprehemsive income Recyclabe to Non-recyclable to With changes Total securities and other Amortized cost profit ans loss profit and loss in profit or loss financial assets, net Due within 1 year 28,295 — 1,889 — 30,184 After 1 year but within 5 years 46,252 5,094 — — 51,346 After 5 years but within 10 years — — — — — Non maturity — — — 6,492 6,492 Balance - principal 74,547 5,094 1,889 6,492 88,022 The following table includes the securities pledged to secure repurchase transactions accounted for as secured pledged: December 31, 2020 December 31, 2019 Amortized Amortized cost Fair value Total cost Fair value Total Securities pledged to secure repurchase transactions 11,998 — 11,998 36,843 5,094 41,937 Securities sold under repurchase agreements (10,663) — (10,663) (35,647) (4,883) (40,530) The following table presents the realized gains or losses on sale of securities at fair value through other comprehensive income: Year ended December 31 2019 2018 Realized gain on sale of securities 266 194 Realized loss on sale of securities (80) — Net gain on sale of securities at FVOCI 186 194 For 2020, there were no sales of securities at fair value through other comprehensive income, with changes recyclable in profit or loss. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Loans | 10. The following table presents the loan portfolio according to its classification and subsequent measurement: December 31, December 31, 2020 2019 Loans at amortized cost 4,911,397 5,892,997 Interest receivable 27,350 41,757 Loss allowances (41,165) (99,307) Unearned interest and deferred fees (5,884) (12,114) Loans at amortized cost, net 4,891,698 5,823,333 Loans at fair value through profit or loss (1) 4,949 — Loans, net 4,896,647 5,823,333 (1) The Bank realized the sale of debt instruments measured at fair value through profit or loss for $5.8 million. As a result, the Bank recognized a loan and classified it at fair value through profit or loss with a carrying amount of $4.9 million as of December 31, 2020. The fixed and floating interest rate distribution of the loan portfolio is as follows: December 31, December 31, 2020 2019 Fixed interest rates 2,544,544 2,757,333 Floating interest rates 2,371,802 3,135,664 Total 4,916,346 5,892,997 As of December 31, 2020, and 2019, 41% and 74% of the loan portfolio at fixed interest rates has remaining maturities of less than 180 days. The range of interest rates on loans fluctuates from 0.43% to 9.70% (December 31, 2019 1.20% to 13.93%). The following table details information relating to loans granted to class A and B shareholders: December 31, December 31, 2020 2019 Class A and B shareholder loans 522,316 664,447 % Loans to class A and B shareholders over total loan portfolio 11 % 11 % % Class A and B stockholders with loans over number of class A and B stockholders 12 % 11 % Modified financial assets The following table refers to modified financial assets during the year, where modification does not result in de-recognition: December 31, 2020 Gross carrying amount before modification 8,829 Allowance loss before modification (1) (1,796) Net amortized cost before modification 7,033 Gross carrying amount after modification 8,829 Allowance loss after modification (2) (1,802) Net amortized cost after modification 7,027 (1) Expected credit loss for 12 months. (2) Expected credit loss within the life of the financial asset. Recognition and derecognition of financial assets During the year ended December 31, 2020, a Stage 3 impaired loan was sold for $11.6 million and a Stage 2 loan with a significant increase in credit risk was sold for $13.2 million, both classified at amortized cost. This resulted in a write-off against reserves of $56.1 million. These sales were made based on compliance with the Bank's strategy to optimize credit risk of its loan portfolio. During the years ended December 31, 2019 and 2018, the Bank sold loans measured at amortized cost. These sales were made based on compliance with the Bank's strategy to optimize credit risk of its loan portfolio. The carrying amounts and gains arising from the derecognition of these financial instruments are presented in the following table. These gains are presented within the line “Loss on financial instruments, net” in the consolidated statement of profit or loss. Assignments and Gains participations (losses) Carrying amount as of December 31, 2019 15,000 21 Carrying amount as of December 31, 2018 61,667 (625) |
Loan commitments and financial
Loan commitments and financial guarantee contracts | 12 Months Ended |
Dec. 31, 2020 | |
Loan commitments and financial guarantee contracts | |
Loan commitments and financial guarantee contracts | 11. In the normal course of business, to meet the financing needs of its customers, the Bank is party to loan commitments and financial guarantee contracts. These instruments involve, to varying degrees, elements of credit and market risk in excess of the amount recognized in the consolidated statement of financial position. Credit risk represents the possibility of loss resulting from the failure of a customer to perform in accordance with the terms of a contract. The Bank’s outstanding loan commitments and financial guarantee contracts are as follows: December 31, December 31, 2020 2019 Documentary letters of credit 216,782 169,320 Stand-by letters of credit and guarantees - commercial risk 210,497 255,481 Credit commitments 137,619 68,571 Total loans commitments and financial guarantee contracts 564,898 493,372 The remaining maturity profile of the Bank’s outstanding loan commitments and financial guarantee contracts is as follows: December 31, December 31, Maturities 2020 2019 Up to 1 year 419,015 424,744 From 1 to 2 years 75,883 8,628 Over 2 to 5 years 70,000 60,000 Total 564,898 493,372 |
Gain (loss) on financial instru
Gain (loss) on financial instruments, net | 12 Months Ended |
Dec. 31, 2020 | |
Gain (loss) on financial instruments, net | |
Gain Loss On Financial Instruments [TextBlock] | 12. The following table sets forth the details for the gain or loss on financial instruments recognized in the consolidated statements of profit or loss: December 31 2020 2019 2018 Gain (loss) on derivative financial instruments and foreign currency exchange, net (1,813) 672 (1,226) (Loss) gain on financial instruments at fair value through profit or loss (2,175) (2,258) 648 Unrealized loss on financial instruments at fair value through profit or loss (806) — — Realized gain on sale of securities at fair value through OCI — 186 194 Gain (loss) on sale of loans — 21 (625) (4,794) (1,379) (1,009) |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative financial instruments | |
Derivative financial instruments | 13. The following table details quantitative information on the notional amounts and carrying amounts of the derivative instruments used for hedging by type of risk hedged and type of hedge: December 31, 2020 Carrying amount of hedging instruments Nominal amount Asset (1) Liability (2) Interest rate risk Fair value hedges 85,667 1,831 (233) Cash flow hedges 60,000 — (1,541) Interest rate and foreign exchange risk Fair value hedges 344,489 2,856 (3,848) Cash flow hedges 221,508 23,091 — Foreign exchange risk Cash flow hedges 71,353 — (3,589) 783,017 27,778 (9,211) December 31, 2019 Carrying amount of hedging instruments Nominal amount Asset (1) Liability (2) Interest rate risk Fair value hedges 398,333 407 (805) Cash flow hedges 123,000 — (1,098) Interest rate and foreign exchange risk Fair value hedges 346,844 10,125 (8,527) Cash flow hedges 23,025 — (1,670) Foreign exchange risk Cash flow hedges 72,391 625 (2,552) Net investment hedges 2,080 — (23) 965,673 11,157 (14,675) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. As part of the financial risk management, the Bank uses the following hedging relationships: - Fair value hedge - Cash flow hedge - Net investment hedge For control purposes, derivative instruments are recorded at their nominal amount in memoranda accounts. Interest rate swaps are made either in a single currency or cross currency for a prescribed period to exchange a series of interest rate flows, which involve fixed for floating interest payments, and vice versa. The Bank also engages in certain foreign exchange forward contracts to serve customers’ transaction needs and to manage foreign currency risk. All such positions are hedged with an offsetting contract for the same currency. The Bank manages and controls the risks on these foreign exchange trades by establishing counterparty credit limits by customer and by adopting policies that do not allow for open positions in the loan and investment portfolios. The Bank also uses foreign exchange forward contracts to hedge the foreign exchange risk associated with the Bank’s equity investment in a non-U.S. dollar functional currency foreign entity. Derivative and foreign exchange forward instruments negotiated by the Bank are executed mainly over-the-counter (OTC). These contracts are executed between two counterparties that negotiate specific agreement terms, including notional amount, exercise price and maturity. A. This type of hedge is used to mitigate the risk of changes in foreign exchange currency rates, as well as changes in interest rate risk. Within the derivative financial instruments used by the Bank for fair value hedging are interest rate swap contracts whereby a series of interest rate flows in a single currency are exchanged over a prescribed period and cross currency swaps contracts that generally involve the exchange of both interest and principal amounts in two different currencies. The Bank’s exposure to interest rate risk is disclosed in Note 5(C)(i). Interest rate risk to which the Bank applies hedge accounting arises from fixed-rate euro medium term notes and other long-term notes issuances (“Certificados Bursatiles”), fixed-rate loans and advances, whose fair value fluctuates when benchmark interest rates change. The Bank hedges interest rate risk only to the extent of benchmark interest rates because the changes in fair value of a fixed-rate note or loan are significantly influenced by changes in the benchmark interest rate. Hedge accounting is applied where economic hedging relationships meet the hedge accounting criteria. Before fair value hedge accounting is applied by the Bank, the Bank determines whether an economic relationship between the hedged item and the hedging instrument exists based on an assessment of the qualitative characteristics of these items and the hedged risk that is supported by quantitative analysis. The Bank considers whether the critical terms of the hedged item and hedging instrument closely align when assessing the presence of an economic relationship. The Bank assesses whether the fair value of the hedged item and the hedging instrument respond similarly to similar risks. The Bank further supports this qualitative assessment by using regression analysis to assess whether the hedging instrument is expected to be and has been highly effective in offsetting changes in the fair value of the hedged item. The sources of ineffectiveness mainly come from forward rates, discount rates and cross currency basis (cost of the operation). The following table details the notional amounts and carrying amounts of derivative instruments used in fair value hedges by type of risk and hedged item, along with the changes during the years used to determine and recognize the ineffectiveness of the hedge: December 31, 2020 Changes in fair value Carrying amount of used to calculate Ineffectiveness Nominal hedging instruments hedge recognized in amount Asset (1) Liability (2) ineffectiveness (3) profit or loss (3) Interest rate risk Loans 10,667 — (132) 84 1 Securities at FVOCI 5,000 — (101) (29) (20) Borrowings and debt 70,000 1,831 — 199 (27) Interest rate and foreign exchange risk Loans 4,075 356 — 178 (149) Borrowings and debt 340,414 2,500 (3,848) (2,524) (468) Total 430,156 4,687 (4,081) (2,092) (663) December 31, 2019 Changes in fair value Carrying amount of used to calculate Ineffectiveness Nominal hedging instruments hedge recognized in amount Asset (1) Liability (2) ineffectiveness (3) profit or loss (3) Interest rate risk Loans 13,333 — (166) (127) (9) Securities at FVOCI 5,000 — (45) (97) (17) Borrowings and debt 380,000 407 (594) 5,203 (65) Interest rate and foreign exchange risk Loans 6,430 276 — (482) (214) Borrowings and debt 340,414 9,849 (8,527) 7,234 55 Total 745,177 10,532 (9,332) 11,731 (250) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the notional amounts and carrying amounts of the fair value hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2020 Accumulated amount Change in fair of fair value hedge value of the hedged Carrying amount of Line in the consolidated statement of adjustments included items used to hedged items financial position that includes the in the carrying amount calculate hedge Asset Liability carrying amount of the hedged items of the hedged items ineffectiveness (1) Interest rate risk Loans 10,837 — Loans, net 74 (83) Securities at FVOCI 5,113 — Securities and other financial assets, net 85 9 Borrowings and debt — (71,937) Borrowings and debt, net (292) (226) Interest rate and foreign exchange risk — Loans 3,789 — (654) (327) Borrowings and debt — (339,688) Borrowings and debt, net 1,083 2,056 Total 19,739 (411,625) 296 1,429 December 31, 2019 Accumulated amount Change in fair of fair value hedge value of the hedged Carrying amount of Line in the consolidated statement of adjustments included items used to hedged items financial position that includes the in the carrying amount calculate hedge Asset Liability carrying amount of the hedged items of the hedged items ineffectiveness (1) Interest rate risk Loans 13,583 — Loans, net 158 118 Securities at FVOCI 5,142 — Securities and other financial assets, net 94 80 Borrowings and debt — (381,587) Borrowings and debt, net 18 (5,268) Interest rate and foreign exchange risk Loans 6,202 — Loans, net (495) 268 Borrowings and debt — (336,117) Borrowings and debt, net (973) (7,179) Total 24,927 (717,704) (1,198) (11,981) (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the maturity of the notional amount for the derivative instruments used in fair value hedges: December 31, 2020 Foreign exchange and Interest rate interest Maturity swaps rate risks Total Fair value hedge Less than 1 year 85,667 — 85,667 Over 1 to 2 years — 271,646 271,646 Over 2 to 5 years — 72,843 72,843 Total 85,667 344,489 430,156 December 31, 2019 Foreign exchange and Interest rate interest Maturity swaps rate risks Total Fair value hedge Less than 1 year 350,000 — 350,000 Over 1 to 2 years 48,333 — 48,333 Over 2 to 5 years — 346,844 346,844 Total 398,333 346,844 745,177 B. This type of hedge is used to mitigate the risk of changes in foreign exchange currency rates, as well as changes in interest rate risk, that could include variability in the future cash flows. Within the derivative financial instruments used by the Bank for cash flow hedging are interest rate swaps contracts whereby a series of interest rate flows in a single currency are exchanged over a prescribed period, cross currency swaps contracts that generally involve the exchange of both interest and principal amounts in two different currencies, and foreign exchange forward contracts, an agreement to purchase or sell foreign currency at a future date at agreed-upon terms. The Bank’s exposure to market risk is disclosed in Note 5 (C) (ii) and (iii). The Bank determines the amount of the exposure to which it applies hedge accounting by assessing the potential impact of changes in interest rates and foreign currency exchange rates on the future cash flows. This assessment is performed using analytical techniques, such as cash flow sensitivity analysis. As noted above for fair value hedges, by using derivative financial instruments to hedge exposures to changes in interest rates and foreign currency exchange rates, the Bank exposes itself to credit risk of the counterparties to the derivatives, which is not offset by the hedged items. This exposure is managed similarly to that of fair value hedges. The Bank determines whether an economic relationship exists between the cash flows of the hedged item and the hedging instrument based on an assessment of the qualitative characteristics of these items and the hedged risk that is supported by quantitative analysis. The Bank considers whether the critical terms of the hedged item and the hedging instrument closely align when assessing the presence of an economic relationship. The Bank assesses whether the cash flows of the hedged item and the hedging instrument respond similarly to the hedged risk, such as the benchmark interest rate or foreign currency. The Bank further supports this qualitative assessment by using sensitivity analysis to assess whether the hedging instrument is expected to be and has been highly effective in offsetting changes in the present value of the hedged item. The Bank assesses hedge effectiveness using the hypothetical derivative method, which creates a derivative instrument to serve as a proxy for the hedged transaction. The terms of the hypothetical derivative match the critical terms of the hedged item and it has a fair value of zero at inception. The sources of ineffectiveness arise mainly because of the differences in discount rates (OIS - Overnight Index Swap). The maximum length of time over which the Bank has hedged its exposure to the variability in future cash flows on forecasted transactions is 7 years. The Bank recognized the lifetime associated cost of the foreign exchange forward contracts into interest income, in profit or loss, as an adjustment to the yield on hedged items creating an accumulated reserve in OCI, reclassified to profit or loss at their maturity. The Bank estimates that approximately $508 thousand are expected to be reclassified into profit or loss during the period of 12 months ending December 31, 2021. The Bank recognized the associated costs for the forward foreign exchange contracts where the hedged item is an asset, as an integral part interest income (expense) of the underlying transaction, presented in the consolidated statement of profit or loss and as an accumulated reserve in Other comprehensive income in the consolidated statement of financial position, which at maturity of the transaction is reclassified to profit or loss. The Bank recognized the associated costs for the forward foreign exchange contracts where the hedged item is a liability, as an integral part interest expense (expense) of the underlying transaction, presented in the consolidated statement of profit or loss and as an accumulated reserve in Other comprehensive income in the consolidated statement of financial position, which at maturity of the transaction is reclassified to profit or loss. The following table details the notional amounts and carrying amounts of derivative instruments used in cash flow hedges by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2020 Change in fair Changes in the Amount Carrying amount of value used for fair value of the Ineffectiveness reclassified hedging instruments calculating hedging instruments recognized from the hedge Nominal hedge recognized in in profit or reserve to profit amount Asset (1) Liability (2) ineffectiveness OCI (3) loss (4) or loss (4) Interest rate risk Borrowings and debt 60,000 — (1,541) (443) (442) 1 (75) Interest rate and foreign exchange risk Borrowings and debt 221,508 23,091 — 23,380 23,481 101 (1,697) Foreign exchange risk Loans 71,353 — (3,589) (3,466) (3,465) 1 (1,927) Total 352,861 23,091 (5,130) 19,471 19,574 103 (3,699) December 31, 2019 Changes in the Change in fair fair value of the Amount value used for hedging reclassified Carrying amount of calculating instruments Ineffectiveness from the hedge Nominal hedging instruments hedge recognized in recognized in reserve to amount Asset (1) Liability (2) ineffectiveness OCI (3) profit or loss (4) profit or loss (4) Interest rate risk Borrowings and debt 123,000 — (1,098) (1,459) (1,458) 1 39 Interest rate and foreign exchange risk Borrowings and debt 23,025 — (1,670) (284) (283) 1 — Foreign exchange risk Loans 72,391 625 (2,552) (2,346) (2,344) 2 (1,070) Borrowings and debt — — — — — — (5,545) Total 218,416 625 (5,320) (4,089) (4,085) 4 (6,576) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in equity in the consolidated statement of financial position under the line Other comprehensive income. (4) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the nominal amounts and carrying amounts of the cash flow hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2020 Line in the consolidated statement of financial Change in the fair value of Carrying amount of position that includes the the hedged items used to hedged items carrying amount of to calculate the hedge Cash flow hedge Asset Liability the hedged items ineffectiveness (1) reserve Interest rate risk Borrowings and debt — (20,045) Borrowings and debt, net 442 1,440 Interest rate and foreign exchange risk Borrowings and debt — (243,817) Borrowings and debt, net (23,481) (1,980) Foreign exchange risk Loans 74,509 — Loans, net 3,465 562 Total 74,509 (263,862) (19,574) 22 (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. December 31, 2019 Line in the consolidated statement of financial Change in the fair value of Carrying amount of position that includes the the hedged items used to hedged items carrying amount of calculate the hedge Cash flow hedge Asset Liability the hedged items ineffectiveness (1) reserve Interest rate risk Borrowings and debt — (70,110) Borrowings and debt, net 1,458 1,072 Interest rate and foreign exchange risk Borrowings and debt — (21,234) Borrowings and debt, net 283 (5) Foreign exchange risk Loans 73,861 — Loans, net 2,344 263 Total 73,861 (91,344) 4,085 1,330 (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the maturity of the derivative instruments used in cash flow hedges: December 31, 2020 Foreign exchange and Foreign Interest rate interest Maturity exchange risk swaps rate risks Total Cash flow hedge Less than 1 year 71,353 40,000 — 111,353 Over 2 to 5 years — 20,000 197,854 217,854 More than 5 years — — 23,654 23,654 Total 71,353 60,000 221,508 352,861 December 31, 2019 Foreign exchange and Foreign Interest rate interest Maturity exchange risk swaps rate risks Total Cash flow hedge Less than 1 year 72,391 63,000 23,025 158,416 Over 1 to 2 years — 40,000 — 40,000 Over 2 to 5 years — 20,000 — 20,000 Total 72,391 123,000 23,025 218,416 C. A foreign currency exposure arises from a net investment either in a subsidiary that has a different functional currency from that of the Bank or in a financial instrument in a foreign currency designated at FVOCI. The hedge risk in the net investment hedge is the variability of the US dollar against any other foreign currency that will result in a reduction in the carrying amount. The Bank’s policy is to hedge the net investment only to the extent of the debt principal; therefore, the hedge ratio is established by aligning the principal amount in foreign currency of the debt with the carrying amount of the net investment that is designated. When the hedging instrument is a forward foreign exchange contract, the Bank establishes a hedge relationship where the notional of the forward foreign exchange contract matches the carrying amount of the designated net investment. The Bank ensures that the foreign currency in which the hedging instrument is denominated is the same as the functional currency of the net investment. The only source of ineffectiveness that is expected to arise from these hedging relationships is due to the effect of the counterparty and the Bank’s own credit risk on the fair value of the derivative. As of December 30, 2020, The Bank holds no net investment hedges. The following table details the notional amount and carrying amount of the derivative instruments used as net investment hedge at December 31, 2019 by type of risk and hedged item, along with changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2019 Changes in the fair value of the Amount Change in fair hedging reclassified from Carrying amount of value used for instruments Ineffectiveness the hedge reserve Nominal hedging instruments calculating hedge recognized in recognized in to profit or amount Asset (1) Liability (2) ineffectiveness OCI (3) profit or loss (4) loss (4) Foreign exchange risk Net investment 2,080 — (23) (23) (23) — (78) Total 2,080 — (23) (23) (23) — (78) Derivative instruments used in net investment hedges at December 31, 2019 have a maturity of less than 30 days. (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in equity in the consolidated statement of financial position under the line Other comprehensive income. (4) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the nominal value and carrying amount of the net investment hedged items at December 31, 2019, along with changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2019 Change in the fair Line in the value of consolidated the statement of hedged financial position items used Carrying amount of that includes the to calculate Cash flow hedged items carrying amount of the hedged hedge Asset Liability the hedged items ineffectiveness (1) reserve Foreign exchange risk Net investment 1,889 — Securities and other financial assets, net 23 23 Total 1,889 — 23 23 (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Gain (loss) on non - financial
Gain (loss) on non - financial assets, net | 12 Months Ended |
Dec. 31, 2020 | |
Gain (loss) on non - financial assets, net | |
Gain (loss) in non - financial assets, net | 14. The gain or loss on non-financial assets is presented as follows: December 31, 2020 2019 2018 Gain on sale of investment property — 500 — Unrealized gain on investment property 296 — — Impairment loss on other assets — — (3,464) Impairment loss on investment property — — (3,849) Write off on intangible assets — — (2,705) 296 500 (10,018) During 2019, the Bank realized the sale of an investment property, which resulted in a gain of $500 thousand. |
Equipment and leasehold improve
Equipment and leasehold improvements | 12 Months Ended |
Dec. 31, 2020 | |
Equipment and leasehold improvements | |
Equipment and leasehold improvements | 15. The following table provides a summary of the items included in equipment and leasehold improvement: December 31, December 31, 2020 2019 Equipment and leasehold improvements, net 4,990 6,230 Right-of-use assets 11,223 12,522 16,213 18,752 A breakdown of cost, accumulated depreciation, additions and disposals of equipment and leasehold improvements is as follows: Furniture and Leasehold Other IT equipment fixtures improvements equipment Total Cost: Balance as of January 1, 2018 4,170 1,984 6,810 2,505 15,469 Additions 411 12 111 69 603 Disposals (253) (97) (80) (62) (492) Reclassifications 10 — — — — Balance as of December 31, 2018 4,338 1,899 6,841 2,512 15,590 Additions 683 36 185 124 1,028 Disposals (63) (102) (176) (33) (374) Effect of changes in exchange rates (53) (62) (47) (14) (176) Balance as of December 31, 2019 4,905 1,771 6,803 2,589 16,068 Additions 293 1 671 32 997 Disposals (1,045) (84) (26) (48) (1,203) Effect of changes in exchange rates (17) (11) (20) (1) (49) Balance as of December 31, 2020 4,136 1,677 7,428 2,572 15,813 Accumulated depreciation: Balance as of January 1, 2018 2,870 1,740 2,648 791 8,049 Amortization 516 64 480 222 1,282 Disposals (159) (89) (127) (94) (469) Reclassifications 42 — — — 42 Balance as of December 31, 2018 3,269 1,715 3,001 919 8,904 Amortization 584 62 508 260 1,414 Disposals (59) (97) (175) (21) (352) Effect of changes in exchange rates (40) (53) (35) — (128) Balance as of December 31, 2019 3,754 1,627 3,299 1,158 9,838 Amortization 643 63 553 920 2,179 Disposals (1,043) (82) (8) (40) (1,173) Effect of changes in exchange rates (14) (7) (14) 14 (21) Balance as of December 31, 2020 3,340 1,601 3,830 2,052 10,823 Carrying amounts as of: December 31, 2020 796 76 3,598 520 4,990 December 31, 2019 1,151 144 3,504 1,431 6,230 December 31, 2018 1,069 184 3,840 1,593 6,686 Leases The following is the detail of the movement of right-of-use assets on the leases for which the Bank is a lessee: Building December 31, December 31, 2020 2019 Initial balance 12,522 17,435 Additions 68 14 Depreciation of right-of-use assets (1,128) (1,440) Effect of changes in exchange rates (34) 7 Reclassification to investment property — (3,494) Decrease (205) — Ending balance 11,223 12,522 The Bank leases office spaces in buildings. The lease of main office space typically runs for a period of 15 years, and for the representative offices from 3 to 5 years. Some leases include an option to renew the lease for a similar additional period after the end of the contract term. The Bank sub-leases some of its property under operating leases. As of December 31, 2019, these contracts were reclassified as investment properties – right of use, as described in Note 17. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Intangible assets | 16. A breakdown of software cost, accumulated amortization, additions, sales and disposals of intangible assets is as follows: Costs: Balance as of January 1, 2018 17,172 Additions 58 Disposals (3,315) Reclassifications (10) Balance as of December 31, 2018 13,905 Additions 496 Balance as of December 31, 2019 14,401 Additions 1,311 Disposals (1) Balance as of December 31, 2020 15,711 Accumulated amortization: Balance as of January 1, 2018 11,747 Amortization 1,176 Disposals (609) Reclassifications (42) Balance as of December 31, 2018 12,272 Amortization 702 Balance as of December 31, 2019 12,974 Amortization 753 Balance as of December 31, 2020 13,727 Carrying amounts as of: December 31, 2020 1,984 December 31, 2019 1,427 December 31, 2018 1,633 Expenses related to the amortization of intangible assets are presented as part of amortization of intangible assets in the consolidated statement of profit or loss. Disposals during 2018 correspond to technological projects. |
Investment properties
Investment properties | 12 Months Ended |
Dec. 31, 2020 | |
Investment properties | |
Investment properties | 17. The following is the movement of investment properties arising from the reclassification of sublease agreements: Investment properties - right of use Balance as of December 31, 2019 3,494 Amortization (280) Balance as of December 31, 2020 3,214 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Other assets | 18. Following is a summary of other assets: December 31, December 31, 2020 2019 Accounts receivable 938 3,549 Prepaid expenses 2,541 1,070 Prepaid fees and commissions 486 1,110 Interest receivable - deposits 8 26 IT projects under development 218 521 Severance fund 1,927 1,863 Other 698 718 6,816 8,857 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits | |
Deposits | 19. The maturity profile of the Bank’s deposits, excluding interest payable, as follows: December 31, December 31, 2020 2019 Demand 170,660 85,786 Up to 1 month 1,127,120 1,285,949 From 1 month to 3 months 878,900 628,981 From 3 months to 6 months 544,860 593,431 From 6 months to 1 year 365,879 289,189 From 1 year to 2 years 51,481 5,000 3,138,900 2,888,336 The following table presents additional information regarding the Bank’s deposits December 31, December 31, 2020 2019 Aggregate amounts of $100,000 or more 3,138,684 2,888,043 Aggregate amounts of deposits in the New York Agency 657,851 240,003 December 31, 2020 2019 2018 Interest expense on deposits made in the New York Agency 5,035 6,277 5,937 |
Securities sold under repurchas
Securities sold under repurchase agreements | 12 Months Ended |
Dec. 31, 2020 | |
Securities sold under repurchase agreements | |
Securities sold under repurchase agreements | 20. As of December 31, 2020, and 2019, the Bank had financing transactions under repurchase agreements for $10.7 million and $40.5 million, respectively. During the years ended December 31, 2020, 2019 and 2018, interest expense related to financing transactions under repurchase agreements totaled $432 thousand, $1.1 million and $635 thousand, respectively. These expenses are included as interest expense – borrowings and debt line in the consolidated statement of profit or loss. |
Borrowings and debt
Borrowings and debt | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings and debt | |
Borrowings and debt | 21. Borrowings consist of bilateral funding and syndicated loans obtained from international banks. Debt instruments consist of public and private issuances under the Bank's Euro Medium Term Notes Program (“EMTN”) as well as public issuances in the Mexican and Japanese markets. The Bank’s funding activities include: (i) EMTN, which may be used to issue notes for up to $2.250 million, with maturities from 7 days up to a maximum of 30 years, at fixed or floating interest rates, or at discount, and in various currencies. The notes are generally issued in bearer or registered form through one or more authorized financial institutions; (ii) Short-and Long-Term Notes (“Certificados Bursatiles”) Program (the “Mexican Program”) in the Mexican local market, registered with the Mexican National Registry of Securities administered by the National Banking and Securities Commission in Mexico (“CNBV”, for its acronym in Spanish), for an authorized aggregate principal amount of 10 billion Mexican pesos with maturities from 1 day to 30 years. Some borrowing agreements include various events of default and covenants related to minimum capital adequacy ratios, incurrence of additional liens, and asset sales, as well as other customary covenants, representations and warranties. As of December 30, 2020, the Bank was in compliance with all those covenants. Borrowings and debt are detailed as follows: December 31, 2020 Short-Term Long-term Carrying amount Borrowings Debt Lease Liabilities Borrowings Debt Lease Liabilities Total Principal 331,585 49,350 1,244 477,010 1,116,033 17,555 1,992,777 Prepaid commissions — — — (1,158) (6,549) — (7,707) 331,585 49,350 1,244 475,852 1,109,484 17,555 1,985,070 December 31, 2019 Short-Term Long-term Carrying amount Borrowings Debt Lease Liabilities Borrowings Debt Lease Liabilities Total Principal 1,573,663 22,000 1,145 723,419 802,676 18,769 3,141,672 Prepaid commissions — — — (1,456) (1,906) — (3,362) 1,573,663 22,000 1,145 721,963 800,770 18,769 3,138,310 Short-term borrowings and debt The breakdown of short-term (original maturity of less than one year, excluding lease liabilities) borrowings and debt, along with contractual interest rates, is as follows: December 31, December 31, 2020 2019 Short-term borrowings: At fixed interest rates 55,000 607,500 At floating interest rates 276,585 966,163 Total borrowings 331,585 1,573,663 Short-term debt: At fixed interest rates — 22,000 At floating interest rates 49,350 — Total debt 49,350 22,000 Total short-term borrowings and debt 380,935 1,595,663 Range of fixed interest rates on borrowings and debt in U.S. dollars 0.45% to 1.40% 2.07% to 2.52% Range of floating interest rates on borrowings in U.S. dollars 0.47% to 1.65% 2.09% to 2.35% Range of fixed interest rates on borrowings in Mexican pesos Range of floating interest rates on borrowings and debt in Mexican pesos 4.97% to 5.05% 7.71% to 8.31% The outstanding balances of short-term borrowings and debt by currency, are as follows: December 31, December 31, 2020 2019 Currency US dollar 299,957 1,476,000 Mexican peso 80,978 119,663 Total 380,935 1,595,663 Long-term borrowings and debt The breakdown of borrowings and long-term debt (original maturity of more than one year, excluding lease liabilities), along with contractual interest rates, plus prepaid commissions as of December 31, 2020 and 2019, respectively, are as follows: December 31, December 31, 2020 2019 Long-term borrowings: At fixed interest rates with due dates from April 2021 to May 2022 68,190 65,435 At floating interest rates with due dates from June 2021 to August 2023 408,820 657,984 Total long-term borrowings 477,010 723,419 Long-term debt: At fixed interest rates with due dates from July 2021 to December 2027 784,006 502,880 At floating interest rates with due dates from March 2022 to June 2023 332,027 299,796 Total long-term debt 1,116,033 802,676 Total long-term borrowings and debt 1,593,043 1,526,095 Less: Prepaid commissions (7,707) (3,362) Total long-term borrowings and debt, net 1,585,336 1,522,733 Range of fixed interest rates on borrowings and debt in U.S. dollars 2.04% to 3.05% 2.56% to 3.25% Range of floating interest rates on borrowings and debt in U.S. dollars 1.16% to 1.85% 2.46% to 3.36% Range of fixed interest rates on borrowings in Mexican pesos 6.77% to 9.09% 5.73% to 9.09% Range of floating interest rates on borrowings and debt in Mexican pesos 4.87% to 5.74% 8.14% to 9.13% Range of fixed interest rates on debt in Japanese yens Range of fixed interest rates on debt in Euros 0.9% to 3.75% Range of fixed interest rates on debt in Australian dollars The balances of long-term borrowings and debt by currency, excluding prepaid commissions, are as follows: December 31, December 31, 2020 2019 Currency US dollar 910,296 1,097,611 Mexican peso 509,687 280,105 Euro 101,469 59,465 Japanese yen 71,591 67,831 Australian dollar — 21,083 Total 1,593,043 1,526,095 Future payments of long-term borrowings and debt outstanding as of December 31, 2020, are as follows (excluding lease liabilities): Payments Outstanding 2021 252,045 2022 525,175 2023 108,436 2024 64,757 2025 618,154 2026 12,238 2027 12,238 1,593,043 Reconciliation – Movements of borrowings The following table presents the reconciliation of movements of borrowings and debt arising from financing activities, as presented in the consolidated statements of cash flows: 2020 2019 2018 Balance as of January 1, 3,138,310 3,518,446 2,211,567 Net decrease (increase) in short-term borrowings and debt (1,212,023) (428,611) 950,259 Proceeds from long-term borrowings and debt 827,732 371,536 609,017 Repayments of long-term borrowings and debt (781,274) (368,843) (256,173) Payment of lease liabilities (1,114) (1,072) — Recognition of lease liabilities — 20,979 — Net Increase in lease liabilities 48 — — Change in foreign currency 15,853 20,044 1,903 Adjustment of fair value for hedge accounting relationship 826 4,943 753 Other adjustments (3,288) 888 1,120 Balance as of December 31, 1,985,070 3,138,310 3,518,446 The reconciliation of equity account movements is presented in the consolidated statement of changes in equity. Lease liabilities Maturity analysis of contractual undiscounted cash flows of the lease liabilities is detailed below: December 31, December 31, 2020 2019 Due within 1 year 2,058 2,005 After 1 year but within 5 years 10,641 10,470 After 5 years but within 10 years 11,354 13,492 Total undiscounted lease liabilities 24,053 25,967 Short-term 1,244 1,145 Long-term 17,555 18,769 Lease liabilities included in the consolidated statement of financial position 18,799 19,914 Amounts recognized in the statement of cash flows: December 31, December 31, 2020 2019 Payments of lease liabilities 1,114 1,072 Amounts recognized in profit or loss: December 31, December 31, 2020 2019 Interest on lease liabilities (862) (912) Income from sub-leasing right-of-use assets 265 277 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other liabilities | |
Other liabilities | 22. Following is a summary of other liabilities: December 31, December 31, 2020 2019 Accruals and other accumulated expenses 9,213 11,901 Accounts payable 6,307 2,526 Others 3,194 2,722 18,714 17,149 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Earnings per share | 23. The following table presents a reconciliation of profit and share data used in the basic and diluted earnings per share (“EPS”) computations for the dates indicated: December 31, 2020 2019 2018 Profit for the year 63,593 86,053 11,138 (U.S. dollars) Basic earnings per share 1.60 2.17 0.28 Diluted earnings per share 1.60 2.17 0.28 (Thousands of shares) Weighted average of common shares outstanding applicable to basic EPS 39,656 39,575 39,543 Effect of diluted securities: Stock options and restricted stock units plan — — — Adjusted weighted average of common shares outstanding applicable to diluted EPS 39,656 39,575 39,543 |
Capital and Reserves
Capital and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Capital and Reserves | |
Capital and Reserves | 24. A. Common stock The Bank’s common stock is divided into four categories: 1) “Class A”; shares may only be issued to Latin American Central Banks or banks in which the state or other government agency is the majority shareholder. 2) “Class B”; shares may only be issued to banks or financial institutions. 3) “Class E”; shares may be issued to any person whether a natural person or a legal entity. 4) “Class F”; may only be issued to state entities and agencies of non-Latin American countries, including, among others, central banks and majority state-owned banks in those countries, and multilateral financial institutions either international or regional institutions. The holders of “Class B” shares have the right to convert or exchange their “Class B” shares, at any time, and without restriction, for “Class E” shares, exchanging one share for another share. The following table provides detailed information on the movement of the shares by class for each of the years ended December 31, 2020, 2019 and 2018: (Share units) “Class A” “Class B” “Class E” “Class F” Total Authorized 40,000,000 40,000,000 100,000,000 100,000,000 280,000,000 Outstanding at January 1, 2018 6,342,189 2,408,805 30,677,840 — 39,428,834 Conversions — (64,386) 64,386 — — Repurchased common stock — (99,193) (64) — (99,257) Restricted stock issued – directors — — 57,000 — 57,000 Exercised stock options - compensation plans — — 102,918 — 102,918 Restricted stock units – vested — — 49,055 — 49,055 Outstanding at December 31, 2018 6,342,189 2,245,226 30,951,135 — 39,538,550 Conversions — (62,799) 62,799 — — Repurchased common stock — (1) 1 — — Restricted stock issued – directors — — 57,000 — 57,000 Restricted stock units – vested — — 6,727 — 6,727 Outstanding at December 31, 2019 6,342,189 2,182,426 31,077,662 — 39,602,277 Conversions — (4,060) 4,060 — — Repurchased common stock — (1) — — (1) Restricted stock issued – directors — — 63,000 — 63,000 Restricted stock units – vested — — 12,664 — 12,664 Outstanding at December 31, 2020 6,342,189 2,178,365 31,157,386 — 39,677,940 Additional paid-in capital As of December 31, 2020, 2019 and 2018, additional paid-in capital consists of additional cash contributions to the common capital paid by shareholders. B. The following table presents information regarding shares repurchased but not retired by the Bank and accordingly classified as treasury stock: “Class A” “Class B” “Class E” Total Shares Amount Shares Amount Shares Amount Shares Amount Outstanding at January 1, 2018 318,140 10,708 590,174 16,270 1,642,690 36,270 2,551,004 63,248 Repurchase of common stock — — 99,193 2,441 64 1 99,257 2,442 Restricted stock issued – directors — — — — (57,000) (1,259) (57,000) (1,259) Exercised stock options - compensation plans — — — — (102,918) (2,272) (102,918) (2,272) Restricted stock units – vested — — — — (49,055) (1,083) (49,055) (1,083) Outstanding at December 31, 2018 318,140 10,708 689,367 18,711 1,433,781 31,657 2,441,288 61,076 Restricted stock issued - directors — — — — (57,000) (1,259) (57,000) (1,259) Restricted stock units - vested — — — — (6,727) (148) (6,727) (148) Outstanding at December 31, 2019 318,140 10,708 689,367 18,711 1,370,054 30,250 2,377,561 59,669 Restricted stock issued - directors — — — — (63,000) (1,391) (63,000) (1,391) Restricted stock units - vested — — — — (12,664) (279) (12,664) (279) Outstanding at December 31, 2020 318,140 10,708 689,367 18,711 1,294,390 28,580 2,301,897 57,999 |
Other comprehensive income
Other comprehensive income | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income | |
Other comprehensive income | 25. The breakdown of other comprehensive income (loss) relating to financial instruments at FVOCI, derivative financial instruments, and foreign currency translation is as follows: Foreign Financial Financial currency instruments Instruments translation FVH CFH adjustment Total Balance as of January 1, 2018 303 170 1,490 1,963 Change in fair value of debt instruments, net of hedging (174) 2,841 — 2,667 Change in fair value of equity instruments at FVOCI, net of hedging (1,224) — — (1,224) Reclassification of gains (losses) on financial instruments included in profit or loss (1) (170) (1,534) — (1,704) Exchange difference in conversion of foreign operating currency — — (1,282) (1,282) Other comprehensive income (loss) for the year (1,568) 1,307 (1,282) (1,543) Balance as of December 31, 2018 (1,265) 1,477 208 420 Change in fair value of debt instruments, net of hedging 4 (2,698) — (2,694) Change in fair value of equity instruments at FVOCI, net of hedging 491 — — 491 Reclassification of gains (losses) on financial instruments included in profit or loss (1) 157 104 — 261 Exchange difference in conversion of foreign operating currency — — (296) (296) Other comprehensive income (loss) for the year 652 (2,594) (296) (2,238) Balance as of December 31, 2019 (613) (1,117) (88) (1,818) Change in fair value of debt instruments, net of hedging 264 2,001 — 2,265 Change in fair value of equity instruments at FVOCI, net of hedging 546 — — 546 Reclassification of gains (losses) on financial instruments included in profit or loss (1) (56) (369) — (425) Exchange difference in conversion of foreign operating currency — — (360) (360) Other comprehensive income (loss) for the year 754 1,632 (360) 2,026 Balance as of December 31, 2020 141 515 (448) 208 (1) Reclassification adjustments include amounts recognized in profit or loss of the year that had been part of other comprehensive income in this and prior years. The following table presents amounts reclassified from other comprehensive income to profit or loss: Line item affected in the Details about other comprehensive Amount reclassified from other consolidated statement of income components comprehensive income profit or loss December 31, 2020 2019 2018 Realized gains (losses) on securities at FVOCI: (56) 157 87 Net gain (loss) on financial instruments Gains (losses) on derivative financial instruments: Foreign exchange forwards (2,337) (3,261) (2,502) Interest income – loans — (1,733) (1,650) Interest expense – borrowings and deposits (369) (61) (1,530) Net gain (loss) on foreign currency exchange Interest rate swaps — 56 4 Net gain (loss) on interest rate swaps Cross-currency swaps — (9) — Net gain (loss) on cross-currency swaps (2,762) (5,008) (5,678) |
Fee and commission income
Fee and commission income | 12 Months Ended |
Dec. 31, 2020 | |
Fee and commission income | |
Fee and commission income | 26. Fee and commission income from contracts with customers broken down by main types of services according to the scope of IFRS 15, are detailed as follows: December 31, 2020 Documentary and standby letters of Other Syndications credit Commissions, net Total Issuance and confirmation — 8,090 1,400 9,490 Negotiation and acceptance — 183 — 183 Amendment — 688 — 688 Structuring 603 — — 603 Other — 39 (584) (546) 603 9,000 815 10,418 December 31, 2019 Documentary and standby letters of Other Syndications credit Commissions, net Total Issuance and confirmation — 8,381 1,312 9,693 Negotiation and acceptance — 399 — 399 Amendment — 632 (27) 605 Structuring 5,622 — — 5,622 Others — 94 (766) (672) 5,622 9,506 519 15,647 December 31, 2018 Documentary Other and standby Commissions, Syndications letters of credit net Total Issuance and confirmation — 9,281 1,738 11,019 Negotiation and acceptance — 379 — 379 Amendment — 1,020 (151) 869 Structuring 4,950 — — 4,950 Others — 87 (119) (32) 4,950 10,767 1,468 17,185 The following table provides information on the ordinary income that is expected to be recognized on the contracts in force: December 31, 2020 Up to 1 year 1,917 From 1 to 2 years 361 More than 2 years 763 3,041 |
Business segment information
Business segment information | 12 Months Ended |
Dec. 31, 2020 | |
Business segment information | |
Business segment information | 27. The Bank’s activities are managed and executed in two business segments: Commercial and Treasury. Information related to each reportable segment is set out below. Business segment results are based on the Bank’s managerial accounting process, which assigns assets, liabilities, revenue and expense items to each business segment on a systematic basis. The maximum decision-making operating authority of the Bank is represented by the Chief Executive Officer and the Executive Committee, who review the internal management reports for each division at least every six months. Segment profit, as included in the internal management reports is used to measure performance as management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate within the same industry. The Bank’s net interest income represents the main driver of profits; therefore, the Bank presents its interest-earning assets by business segment, to give an indication of the size of business generating net interest income.Interest-earning assets also generate gains and losses on sales, mainly from financial instruments at fair value through OCI and financial instruments at fair value through profit or loss, which are included in other income, net. The Bank also discloses its other assets and contingencies by business segment, to give an indication of the size of business that generates net fees and commissions, also included in net other income. The Commercial Business Segment encompasses the Bank’s core business of financial intermediation and fee generating activities developed to cater to corporations, financial institutions and investors in Latin America. These activities include the origination of bilateral short-term and medium-term loans, structured and syndicated credits, loan commitments, and financial guarantee contracts such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk, and other assets consisting of customers’ liabilities under acceptances. Profits from the Commercial Business Segment include (i) net interest income from loans; (ii) fees and commissions from the issuance, confirmation, negotiation , acceptance and amendment of letters of credit, guarantees and loan commitments, and through loan structuring and syndication activities; (iii) gain on sale of loans generated through loan intermediation activities, such as sales and distribution in the primary market; (iv) gain (loss) on sale on financial instruments measured at FVTPL; (v) reversal of (provision) for credit losses, (vi) gain (loss) on other non-financial assets, net; and (vii) direct and allocated operating expenses. The Treasury Business Segment focuses on managing the Bank’s investment portfolio, and the overall structure of its assets and liabilities to achieve more efficient funding and liquidity positions for the Bank, mitigating the traditional financial risks associated with the consolidated statements of financial position, such as interest rate, liquidity, price and currency risks. Interest-earning assets managed by the Treasury Business Segment include liquidity positions in cash and cash equivalents, as well as highly liquid corporate debt securities rated above ‘A-‘, and financial instruments related to the investment management activities, consisting of securities at fair value through other comprehensive income (“FVOCI”) and securities at amortized cost (the “Investment Portfolio”). The Treasury Business Segment also manages the Bank’s interest-bearing liabilities, which constitute its funding sources, mainly deposits, short- and long-term borrowings and debt. Profits from the Treasury Business Segment include net interest income derived from the above mentioned treasury assets and liabilities, and related net other income (net results from derivative financial instruments and foreign currency exchange, gain (loss) on financial instruments at FVTPL, gain (loss) on sale of securities at FVOCI, and other income), recovery or impairment loss on financial instruments, and direct and allocated operating expenses. The following table provides certain information regarding the Bank’s operations by segment: December 31, 2020 Commercial Treasury Total Interest income 172,548 8,425 180,973 Interest expense (690) (87,833) (88,523) Inter-segment net interest income (83,937) 83,937 — Net interest income 87,921 4,529 92,450 Other income (expense), net 8,597 (1,890) 6,707 Total income 96,518 2,639 99,157 Reversal of (provision for) credit losses 1,889 (425) 1,464 Gain (loss) on non-financial assets, net 296 — 296 Operating expenses (28,021) (9,303) (37,324) Segment profit (loss) 70,682 (7,089) 63,593 Segment assets 4,989,009 1,293,081 6,282,090 Segment liabilities 92,309 5,139,955 5,232,264 December 31, 2019 Commercial Treasury Total Interest income 253,462 20,220 273,682 Interest expense (730) (163,437) (164,167) Inter-segment net interest income (144,334) 144,334 — Net interest income 108,398 1,117 109,515 Other income (expense), net 15,577 1,565 17,142 Total income 123,975 2,682 126,657 (Provision for) reversal of credit losses (744) 314 (430) Gain (loss) on non-financial assets, net 500 — 500 Operating expenses (31,183) (9,491) (40,674) Segment profit (loss) 92,548 (6,495) 86,053 Segment assets 5,967,157 1,273,678 7,240,835 Segment liabilities 134,657 6,081,693 6,216,350 December 31, 2018 Commercial Treasury Total Interest income 239,976 18,514 258,490 Interest expense — (148,747) (148,747) Inter-segment net interest income (130,195) 130,195 — Net interest income 109,781 (38) 109,743 Other income (expense), net 18,002 (156) 17,846 Total income 127,783 (194) 127,589 (Provision for) reversal of credit losses (57,621) 106 (57,515) (Loss) gain on non-financial assets, net (5,967) — (5,967) Operating expenses (37,436) (11,482) (48,918) Segment profit (loss) 26,759 (11,570) 15,189 Segment assets 5,734,159 1,858,333 7,592,492 Segment liabilities 12,985 6,588,995 6,601,980 Reconciliation on information on reportable segments 2020 2019 2018 Profit for the year 63,593 86,053 15,189 Impairment loss on non-financial assets - unallocated — — (4,051) Total profit for the year 63,593 86,053 11,138 Assets: Assets from reportable segments 6,282,090 7,240,835 7,592,492 Other assets - unallocated 6,808 8,831 16,693 Total assets 6,288,898 7,249,666 7,609,185 Liabilities: Liabilities from reportable segments 5,232,264 6,216,350 6,601,980 Other liabilities - unallocated 18,714 17,149 13,615 Total liabilities 5,250,978 6,233,499 6,615,595 The Bank applied IFRS 16, as of January 1, 2019, using the modified retrospective approach to recognize right-of-use assets for $17.4 million presented within equipment and leasehold improvements and lease liabilities for $20.9 million. As of December 31, 2020, assets and liabilities were allocated between Commercial and Treasury segments. As a result of the adoption of the new standard in the year 2019, certain amounts related to equipment and leasehold improvements and intangibles were reclassified for presentation purposes in the consolidated financial statements. Geographic information The geographic information analyses the Bank’s revenue and non-current assets by the Bank’s country of domicile and other countries. In presenting the geographic information below, segment revenue is based on customer’s country risk and segment non-current assets are based on the geographic location of the assets. 2020 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Total Total revenues 7,580 7,054 14,480 13,462 7,142 9,242 8,163 32,034 99,157 Non-current assets* 19,888 129 535 56 — — 212 591 21,411 2019 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Total Total revenues 8,649 13,122 18,757 10,348 10,702 13,640 14,889 36,550 126,657 Non-current assets* 20,976 222 1,510 55 — — 185 725 23,673 2018 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Other Total revenues 13,913 17,887 14,577 15,440 11,115 10,414 9,959 34,284 127,589 Non-current assets* 6,520 126 1,495 7 — — 37 134 8,319 * Includes equipment and lesehold improvements, intangibles and investment properties Disaggregation of revenue from contract with customers As of December 31, 2020, 2019, and 2018, respectively, the Bank has no customer, either individually or as group of companies, that represents more than 10% of total revenues. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Related party transactions | 28. The detail of the assets and liabilities with related private corporations and financial institutions is as follows: December 31, December 31, 2020 2019 Assets Demand deposits 3,269 3,812 Loans, net 22,499 49,101 Total asset 25,768 52,913 Liabilities Time deposits 240,000 120,000 Total liabilities 240,000 120,000 Contingencies Stand-by letters of credit 28,300 20,000 Loss allowance (60) (49) Total contingencies 28,240 19,951 The detail of income and expenses with related parties is as follows: December 31, 2020 2019 2018 Interest income Loans 1,390 2,837 2,751 Total interest income 1,390 2,837 2,751 Interest expense Deposits (2,961) (3,927) (984) Borrowings and debt (1) — (645) — Total interest expense (2,961) (4,572) (984) Net interest income (expenses) (1,571) (1,735) 1,767 Other income (expense) Fees and commissions, net 420 132 1 (Loss) gain on financial instruments, net — (41) 41 Other income, net — — 1 Total other income, net 420 91 43 Operating expenses Depreciation of equipment and leasehold improvements — (899) — Other expenses — (409) (2,287) Total operating expenses — (1,308) (2,287) Net income from related parties (1,151) (2,952) (477) (1) This caption includes the financial cost relating to leases and depreciation expense for the right-of-use assets that originates from the lease contract with related parties where the Bank acts as a lessee through December 31, 2019. The total compensation paid to directors and the executives as representatives of the Bank amounted to: December 31, 2020 2019 2018 Expenses: Compensation costs to directors 2,033 2,289 2,331 Compensation costs to executives 5,448 3,244 4,943 Compensation costs to directors and executives, include annual cash retainers and the cost of granted restricted stock and restricted stock units. |
Salaries and other employee exp
Salaries and other employee expenses | 12 Months Ended |
Dec. 31, 2020 | |
Salaries and other employee expenses | |
Salaries and other employee expenses | 29. The following table details salaries and other employee expenses: December 31, 2020 2019 2018 Wages and salaries 13,717 13,232 18,487 Payroll taxes 1,722 1,721 2,120 Personnel benefits 5,383 8,867 6,732 Share–based payments 640 359 650 Total 21,462 24,179 27,989 A. The Bank has established equity compensation plans under which it manages restricted stock, restricted stock units and stock purchase option plans to attract, retain and motivate directors and top employees and compensate them for their contributions to the growth and profitability of the Bank. Vesting conditions for each of the Bank’s plans are only comprised of specified requisite service periods. i. 2015 Stock Incentive Plan – Directors and Executives In February 2008, the Board of Directors of the Bank approved an incentive plan for directors and executives allowing the Bank to grant restricted stock, restricted stock units, stock purchase options, and/or other similar compensation instruments. The maximum aggregate number of shares which may be granted under this plan is three million “Class E” common shares. The 2008 Stock Incentive Plan is administered by the Board of Directors who has the authority at its discretion to select the directors and executives to whom the awards may be granted; to determine whether and to what extent awards are granted, and to amend the terms of any outstanding award under this plan. This plan was updated in October 2015, modified and renamed as “2015 Stock Incentive Plan” Restricted stocks are issued at the grant date but are withheld by the Bank until the vesting date. Restricted stock is entitled to receive dividends. A restricted stock unit is a grant valued in terms of the Bank’s stock, but no stock is issued at the grant date. Restricted stock units are not entitled to dividends. The Bank issues or disposes of treasury stock and delivers common stock at the vesting date of the restricted stock units. During 2020, 2019 and 2018, the Board of Directors approved the grant of restricted stock to directors and stock options and restricted stock units to certain executives of the Bank, as follows: Restricted stock – Directors For the year 2020, the Board of Directors granted 63,000 “Class E” common shares. During the years 2019 and 2018, the Board of Directors granted 57,000, each year, of “Class E” common shares. The fair value of restricted stock granted was based on the stock closing price in the New York Stock Exchange of the “Class E” shares on April 29, 2020, April 17, 2019 and April 11, 2018. The fair value of restricted stock granted totaled $727 thousand in 2020, $1.3 million in 2019, and $1.6 million in 2018, of which $ 306 thousand, $570 thousand and $739 thousand were recognized in profit or loss during 2020, 2019 and 2018, respectively. The total expense recognized in profit or loss during 2020, 2019 and 2018 of restricted stock – directors amounted $1.1 million, $1.4 million and $1.5 million, respectively. The remaining cost pending amortization of $699 thousand at December 31, 2020 will be amortized over 2.33 years. Restricted stock loses their restriction from the year following the anniversary date, as follows: 35% in the first and second years, and 30% in the third year. A summary of restricted stock granted to Directors is presented below: Weighted average Shares grant date fair value Outstanding at January 1, 2018 91,950 27.40 Granted 57,000 28.70 Vested (45,300) 28.07 Outstanding at December 31, 2018 103,650 27.82 Granted 57,000 22.68 Vested (51,300) 27.19 Outstanding at December 31, 2019 109,350 25.44 Granted 63,000 11.54 Vested (40,200) 26.26 Outstanding at December 31, 2020 132,150 18.56 Expected to vest 132,150 The fair value of vested stock during the years 2020, 2019 and 2018 was $1.1 million, $1.4 million and $1.3 million, respectively. Restricted stock units and stock purchase options granted to certain executives The Board of Directors approved the grant of stock purchase options and restricted stock units to certain executives of the Bank with a grant date fair value of $902 thousand in 2020, $355 thousand in 2019 and $581 thousand in 2018. The distribution of the fair value was in restricted stock units. Restricted stock units The fair value of the restricted stock units was based on the “Class E” stock closing price in the New York Stock Exchange on the grant date. These stock units vest 25% each year on the grant date’s anniversary. The restricted stock units are exchanged at a ratio of 1: 1 for common shares "Class E". Compensation costs of the restricted stock units are amortized during the period of restriction by the accelerated method. During 2020, 2019 and 2018, the cost recognized in profit or loss as a result of the amortization of these grants totaled $640 thousand, $359 thousand and $503 thousand, respectively. The remaining compensation cost pending amortization of $583 thousand in 2020 will be amortized over 3.17 years. A summary of the restricted stock units granted to certain executives is presented below: Weighted average Weighted remaining Aggregate average grant contractual intrinsic Shares date fair value term value Outstanding at January 1, 2018 50,805 21.07 Granted 23,412 24.80 Vested (49,055) 20.90 Outstanding at December 31, 2018 25,162 24.86 Granted 23,743 14.95 Vested (6,727) 24.92 Outstanding at December 31, 2019 42,178 19.27 Granted 51,829 17.41 Vested (12,664) 20.24 Outstanding at December 31, 2019 81,343 17.93 2.59 years 15.71 Expected to vest 81,343 17.93 2.60 years 15.71 The fair value of vested stock during the years 2020, 2019 and 2018 is $256 thousand, $168 thousand, and $1 million, respectively. Stock purchase options The Bank´s policy indicates that options expire seven years after the grant date and are exercisable at a rate of 25% each year on the grant date’s anniversary. Related cost recognized in profit or loss during 2018 as a result of the amortization of these plans amounted to $14 thousand. A summary of stock options granted is presented below: Weighted average Aggregate Weighted average remaining contractual intrinsic Options exercise price term value Outstanding at January 1, 2018 273,643 27.48 Granted — — Forfeited (28,315) 29.25 Exercised (102,918) 24.55 Outstanding at December 31, 2018 142,410 29.25 Outstanding at December 31, 2019 142,410 29.25 Outstanding at December 31, 2020 142,410 29.25 1.11 years — Exercisable 142,410 29.25 1.11 years — Expected to vest — — — During 2020 and 2019 there were no options exercised. The intrinsic value of exercised options during the years 2018 was $406 thousand. During 2018, the Bank received $2.5 million from exercised options . B. The Bank sponsors a defined contribution plan for its expatriate top executives based in Panama, which are not eligible to participate in the Panamanian social security system. The Bank’s contributions are determined as a percentage of the annual salaries of top executives eligible for the plan, each contributing an additional amount withheld from their salary. Contributions to this plan are managed by a fund manager through a trust. The executives are entitled to the Bank’s contributions after completing at least three years of service in the Bank. During the years 2020, 2019 and 2018, the Bank charged to salaries expense $75 thousand, $87 thousand and $102 thousand, respectively, that correspond to the Bank’s contributions to this plan. |
Other expenses
Other expenses | 12 Months Ended |
Dec. 31, 2020 | |
Other expenses | |
Other expenses | 30. December 31, 2020 2019 2018 Administrative 4,142 5,560 6,391 Professional services 3,316 3,487 4,293 Maintenance and repairs 2,081 1,770 2,912 Regulatory fees 964 994 1,246 Rental - office and equipment 575 658 2,913 Advertising and marketing 100 290 337 Other 344 180 379 Total 11,522 12,939 18,471 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Litigation | |
Litigation | 31. Bladex is not engaged in any litigation that is significant to the Bank’s business or, to the best of the knowledge of Bank’s management, that is likely to have an adverse effect on its business, consolidated financial position or its consolidated financial performance. |
Applicable laws and regulations
Applicable laws and regulations | 12 Months Ended |
Dec. 31, 2020 | |
Applicable laws and regulations | |
Applicable laws and regulations | 32. Liquidity index Rule No. 2‑2018 issued by the Superintendence of Banks of Panama (SBP) establishes that every general license or international license bank must guarantee, with a higher level of confidence, that it is in the position to face its intraday liquidity obligations in a period when liquidity pressure may affect the lending market. For that purpose, the Superintendence of Banks of Panama has established a short-term liquidity coverage ratio known as “Liquidity Coverage Ratio or LCR”. This ratio is measured through the quotient of two amounts, the first one corresponds to the high-quality liquid assets and the second one corresponds to the net cash outflows in 30 days. As of December 31, 2020, and 2019, the minimum LCR to be reported to the SBP was 65% and 50%, respectively. The Bank´s LCR as of December 31, 2020 and 2019 was 249% and 131%, respectively. Rule No. 4‑2008 issued by the SBP establishes that every general license or international license bank must maintain, always, a minimum balance of liquid assets equivalent to 30% of the gross total of its deposits in the Republic of Panama or overseas up to 186 days, counted from the reporting date. The formula is based on the following parameters: Liquid assets x 100 = X% (Liquidity ratio) Liabilities (Deposits Received) As of December 31, 2020, and 2019, the percentage of the liquidity index reported by the Bank to the regulator was 79.99% and 100.36%, respectively. Capital adequacy The Banking Law in the Republic of Panama and the Rules No. 01‑2015 and 03‑2016 require that the general license banks maintain a total capital adequacy index that shall not be lower, at any time, than 8% of total assets and off-balance sheet irrevocable contingency transactions, weighted according to their risks; and ordinary primary capital that shall not be less than 4.5% of its assets and off-balance sheet transactions that represent an irrevocable contingency, weighted based on their risks; and a primary capital that shall not be less than 6% of its assets and off-balance sheet transactions that represent an irrevocable contingency, weighted based on their risks. The primary objectives of the Bank’s capital management policy are to ensure that the Bank complies with capital requirements imposed by local regulator and maintains strong credit ratings and healthy capital ratios to support its business and to maximize shareholder value. The Bank manages its capital structure and adjusts it according to changes in economic conditions and the risk characteristics of its activities. To maintain or adjust the capital structure, the Bank may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes have been made to the objectives, policies and processes from the previous periods. However, they are under constant review by the Board. December 31, December 31, 2020 2019 Capital funds 1,048,182 1,026,125 Risk-weighted assets 5,187,054 5,937,648 Capital adequacy index Leverage ratio Article No. 17 of the Rule No. 1‑2015 establishes the leverage ratio of a regulated entity by means of the quotient between the ordinary primary capital and the total exposure for non-risk-weighted assets inside and outside the consolidated statement of financial position established by the SBP. For the determination of the exposure of off-balance-sheet operations, the criteria established for credit and counterparty credit risk positions will be used. The exposure of the derivatives will be the fair value at which it is recorded in the entity’s assets. The leverage ratio cannot be lower, at any time, than 3%. The Bank will inform to SBP as often as the compliance with the leverage ratio is determined. December 31, 2020 December 31, 2019 Ordinary capital 912,164 890,106 Non-risk-weighted assets 6,479,416 7,323,187 Leverage ratio Specific credit provisions SBP Rule No. 4‑2013, modified by Rule No. 8‑2014, states that the specific provisions are originated from the objective and concrete evidence of impairment. These provisions must be established for credit facilities classified according to the risk categories denominated as: special mention, substandard, doubtful, or unrecoverable, both for individual credit facilities as for a group of such facilities. In the case of a group, it corresponds to circumstances that indicate the existence of deterioration in credit quality, although individual identification is still not possible. Banks must calculate and maintain at all times the amount of the specific provisions determined by the methodology specified in this Rule, which takes into account the balance owed of each credit facility classified in any of the categories subject to provision, mentioned in the paragraph above; the present value of each guarantee available in order to mitigate risk, as established by type of collateral; and a weighting table that applies to the net exposure balance subject to loss of such credit facilities. Article No. 34 of this Rule establishes that all credits must be classified in the following five (5) categories, according to their default risk and loan conditions, and establishes a minimum reserve for each classification: normal 0%, special mention 20%, substandard 50%, doubtful 80%, and unrecoverable 100%. If there is an excess in the specific provision, calculated in accordance with this Rule, compared to the provision calculated in accordance with IFRS, this excess will be accounted for as a regulatory credit reserve in equity and will increase or decrease with appropriations from/to retained earnings. The balance of the regulatory credit reserve will not be considered as capital funds for calculating certain ratios or prudential indicators mentioned in the Rule. Based on the classification of risks, collateral and in compliance with SBP Rule No. 4‑2013, the Bank classified the loan portfolio as follows: December 31, 2020 Loans at amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Corporations 2,147,846 9,281 10,593 — — 2,167,720 Financial Institutions: Private 2,231,742 — — — — 2,231,742 State-owned 476,520 — — — — 476,520 2,708,262 — — — — 2,708,262 Sovereign 35,415 — — — — 35,415 4,891,523 9,281 10,593 — — 4,911,397 Allowance for loan losses IFRS (*) : 34,720 1,857 4,588 — — 41,165 Loans at FVTPL Financial Institutions: Private 4,949 — — — — 4,949 Total loans 4,896,472 9,281 10,593 — — 4,916,346 December 31, 2019 Loans at amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Corporations 2,487,859 13,595 — — 61,845 2,563,299 Financial Institutions: Private 2,692,787 — — — — 2,692,787 State-owned 589,690 — — — — 589,690 3,282,477 — — — — 3,282,477 Sovereign 47,221 — — — — 47,221 Total 5,817,557 13,595 — — 61,845 5,892,997 Allowance for loan losses IFRS (*) : 42,396 2,338 — — 54,573 99,307 As of December 31, 2020, and 2019, there are no restructured loans. (*) As of December 31, 2020, and 2019, there is no excess in the specific provision calculated in accordance with Agreement No. 8-2014 of the SBP, over the provision calculated in accordance with IFRS. For statutory purposes only, non-accruing loans are presented by category as follows: Loans at December 31, 2020 amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Impaired loans — — 10,593 — — 10,593 Total — — 10,593 — — 10,593 Loans at December 31, 2019 amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Impaired loans — — — — 61,845 61,845 Total — — — — 61,845 61,845 December 31, December 31, 2020 2019 Non-accruing loans: Private corporations 10,593 61,845 Total non-accruing loans 10,593 61,845 Interest that would be reversed if the loans had been classified as non-accruing loans 351 1,379 Income from collected interest on non-accruing loans — 631 Credit risk coverage - dynamic provision The SBP by means of Rule No. 4‑2013, establishes the compulsory constitution of a dynamic provision in addition to the specific credit provision as part of the total provisions for the credit risk coverage. The dynamic provision is an equity item associated to the regulatory capital but does not replace or offset the capital adequacy requirements established by the SBP. Modified Special Mention loans SBP Rule No. 2-2020, which as an amendment to Rule 4-2013, with effect on March 31, 2020, allows banks to grant a grace period to customers affected in their businesses, regarding the COVID-19 effects, until June 30, 2020. As of that date, and as a result of an agreement signed between the Government of Panama and the Banking Association of Panama, as well as the issuance of Law No. 156 on moratorium, extended the financial relief to those affected by COVID-19 and who requested it until December 31, 2020. Subsequently, Rule No. 13-2020 which arise as an amendment to Rule No. 2-2020, with effect on October 2020 allows an additional grace of period to the financial relief until June 30, 2021. On September 11, 2020, the Superintendence of Banks of Panama issued Rule No. 9-2020 amending Rule No. 2-2020 of March 16, 2020, by which, it defines that loans classified as normal and special mention, as well as restructured loans without arrears, may be modified in accordance with the guidelines established herein. Moreover, the loans amended in normal and special mention categories shall be classified in "modified special mention" category for the purpose of determining the respective provisions. Modified restructured loans in the substandard, doubtful or unrecoverable categories shall maintain the credit classification they had at the time of their modification with their respective provision. In accordance with the Rule referred to in the preceding paragraph, about the modified special mention loan portfolio, banks will create a provision equivalent to the highest value between the IFRS provision of the modified special mention category and a generic provision equivalent to three percent (3%) of the gross balance of the modified loan portfolio, including uncollected accrued interest and capitalized interests; modified loans secured with deposits pledged in the same bank may be excluded from this calculation up to the secured amount. For this, the following scenarios will be considered: 1. 2. i. ii. In accordance with the requirements of Article 4-E of Rule No. 9-2020, a detail of the portfolio of modified special mention category loans and their respective provisions and regulatory reserves as of December 31, 2020, classified according to the three-stage model of IFRS 9 follows: Stage 1 Stage 2 Stage 3 Total Modified special mention loans Modified loans Corporate — 8,829 — 8,829 (-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount — — — — (+) Interest receivable — 7 — 7 (-) Unearned interest and deferred fees — — — — Total loan portfolio subject to provisions Rule No. 9-2020 — 8,836 — 8,836 Allowance Allowance IFRS 9 — 1,767 — 1,767 Collective allowance (complement to 1.5%) * — Regulatory reserve (complement to 3%) * — Total allowance and reserves 1,767 * Because IFRS 9 provision for modified special mention loans by $1.7million exceeds the generic provision equivalent to the 3% required by Rule No. 9-2020, the Bank does not require additional complementary equity reserves to the existing provision. As part of the Bank's risk management, both individual and collective analyzes of the condition of the loans have been developed, including the segmentation of the portfolio in order to identify the employment situation or the opening of economic activity of each client and define who will be able to meet their bank obligations, who will have difficulties in doing so and who will definitely not be able to meet and thus determine if there has been a significant increase in risk and classify those loans according to the corresponding impairment stage. Additionally, different agreements have been reached with clients based on the individual analysis of their ability to generate the cash flows necessary to meet their obligations. As of December 31, 2020, the modified special mention loan has complied with its contractual payments of the loan agreement. It is important to note that in addition to the modified special mention loan, the Bank maintains corporate loans in Substandard category and that they embraced to the moratorium of Law No. 156 of June 30, 2020. As of December 31, 2020, these loans carrying amount is $10.9 million (including interest) and present interest payments with a default of up to 30 days. Methodology for the constitution of the regulatory credit reserve The Superintendence of Banks of Panama by means of the General Resolution of Board of Directors SBP-GJD-0003-2013 of July 9, 2013, establishes the accounting methodology for differences that arise between the application of the International Financial Reporting Standards (IFRS) and the application of prudential regulations issued by the SBP; as well as the additional disclosures required to be included in the notes to the consolidated financial statements. The parameters established in this methodology are the following: 1. The calculations of accounting balances in accordance with IFRS and the prudential standards issued by the SBP will be carried out and the respective figures will be compared. 2. When the calculation made in accordance with IFRS results in a higher reserve or provision for the bank compared to the one resulting from the use of the prudential standards issued by the SBP, the Bank will account the IFRS figures. 3. When the impact of the use of prudential standards results in a higher reserve or provision for the Bank, the effect of the application of IFRS will be recognized in profit or loss, and the difference between IFRS calculation compared to the prudential standards calculation will be appropriated from retained earnings as a regulatory credit reserve. If the Bank does not have sufficient retained earnings, the difference will be presented as an accumulated deficit account. 4. The regulatory credit reserve mentioned in paragraph 3 of this Rule may not be reversed against retained earnings as long as there are differences between IFRS and the originated prudential regulations. Considering that the Bank presents its consolidated financial statements under IFRS, specifically for its expected credit reserves under IFRS 9, the line "Regulatory credit reserve" established by the SBP has been used to present the difference between the application of the accounting standard used and the prudential regulations of the SBP to comply with the requirements of Rule No. 4‑2013. As of December 31, 2020, and 2019, the total amount of the dynamic provision and the regulatory credit reserve calculated according to the guidelines of Rule No. 4‑2013 of the SBP is $136 million for both years, appropriated from retained earnings for purposes of compliance with local regulatory requirements. This appropriation is restricted from dividend distribution in order to comply with local regulations. The provision and reserve are detailed as follows: December 31, December 31, 2020 2019 Dynamic provision 136,019 136,019 Regulatory credit reserve — — 136,019 136,019 Capital reserve In addition to capital reserves required by regulations, the Bank maintains a capital reserve of $95.3 million, which was voluntarily established. Pursuant to Article No. 69 of the Banking Law, reduction of capital reserves requires prior approval of SBP. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent Events | 33. The Bank announced a quarterly cash dividend of $0.25 US dollar cents per share corresponding to the fourth quarter of 2020. The cash dividend was approved by the Board of Directors at its meeting held on February 12, 2021 and it was paid on March 10, 2021 to the Bank’s stockholders as of February 23, 2021 record date. |
Summary of accounting policies
Summary of accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Currency and foreign currency transactions | 3. 1 Foreign currency Foreign currency transactions For each entity, the Bank determines the functional currency; items, included in the consolidated financial statements of each entity, are measured using their respective functional currency. Transactions and balances Assets and liabilities of foreign subsidiaries, whose local currency is considered their functional currency, are translated into the reporting currency, US dollars, using month-end spot foreign exchange rates. The Bank uses monthly-averaged exchange rates to translate revenues and expenses from local functional currency into US dollars. The effects of those translation adjustments are reported as a component of other comprehensive income (loss) in the consolidated statement of changes in equity. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate effective at the date on which fair value is determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate effective at the date of the transaction. Transactions whose terms are denominated in a currency other than the functional currency, including transactions denominated in local currency of foreign entities whose functional currency is the US dollar, are recorded at the exchange rate prevailing at the date of the transaction. Assets and liabilities in foreign currency are translated into US dollars using month-end spot foreign exchange rates. The effects of translation of monetary assets and liabilities into US dollar are included in current year’s earnings in the caption of "gain (loss) on financial instruments, net" in profit or loss. Differences arising on settlement or translation of monetary items are recognized in profit or loss, except for monetary items that are designated as part of the hedge of the Bank’s net investment in a foreign operation. These are recognized in accumulated other comprehensive income until the net investment is disposed of, at which time, the cumulative amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those monetary items are also recorded in accumulated other comprehensive income, if applicable. When a foreign operation is disposed of in its entirety or partially such that control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If the Bank disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, then the relevant proportion of the cumulative amount is attributed to non-controlling interest. |
Interests | 3.2 Interests Effective interest rate Interest income and expense are recognized in profit or loss using the effective interest method. The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to: - The gross carrying amount of the financial asset; or - The amortized cost of the financial liability. When calculating the effective interest rate for financial instruments other than purchased or originated credit-impaired assets, the Bank estimates future cash flows considering all contractual terms of the financial instrument, but not the expected credit loss (ECL). For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated using estimated future cash flows including ECL. The calculation of the effective interest rate includes transaction costs and fees and points paid or received that are an integral part of the effective interest rate. Transaction costs include incremental costs that are directly attributable to the acquisition or issue of a financial asset or financial liability. Amortized cost and gross carrying amount The ‘amortized cost’ of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any expected credit loss allowance. The ‘gross carrying amount of a financial asset’ is the amortized cost of a financial asset before adjusting for any expected credit loss allowance. Methodology for calculation of interest income and expense The effective interest rate of a financial asset or financial liability is calculated on initial recognition of a financial asset or a financial liability. In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset, when the asset is not credit-impaired, or to the amortized cost of the liability. The effective interest rate is revised as a result of periodic re-estimation of cash flows of floating-rate instruments to reflect movements in market interest rates. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis. For financial assets that were credit-impaired on initial recognition, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the asset. The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves. Presentation Interest income and interest expense calculated using the effective interest method presented in the consolidated statement of profit or loss includes: - Interest on financial assets and financial liabilities measured at amortized cost Other interest income and expense presented in the consolidated statement of profit or loss includes: - Interest on securities measured at fair value through other comprehensive income. - Interest on loans measured at fair value through profit or loss. - Interest expense on lease liabilities. - The effective portion of the variability in interest cash flow changes in qualifying hedging derivatives, in the same period as the hedged cash flows affect interest income/expense. |
Fees and commissions | 3.3 Fees and commissions Fees, commission income and expense that are integral to the effective interest rate on a financial asset or financial liability are described in note 3.2. Other fees and commissions are recognized as the related services are performed based on the contractual terms set with a customer. The following table describes the main products and services, other than services for financial intermediation, from which the Bank generates its revenue: Type of services Nature and timing of satisfaction of performance obligations, Letters of credit Issuance Guarantee to honor the stipulated amount agreed to in the terms and conditions entered with the customer, upon presentation of required documentation. Negotiation Review of the shipping documents, by the beneficiary, under presentation and acceptance of payment on demand or on the day the reimbursement is made by the designated bank. Acceptance Commitment issued to the beneficiary to pay to a supplier in a future date, once all the shipping documents have been reviewed as to compliance with the terms and conditions of the letter of credit. Confirmation Commitment issued to the issuer bank and the beneficiary to honor or negotiate shipping documents. Amendment A request to amend the original letter of credit on behalf of the beneficiary modifying the original terms and conditions Syndications Structuring Advise to the borrower by structuring the terms and conditions of a credit facility and coordinating among the lenders’ and the borrowers’ legal counsel all legal aspects relating to the credit facility, among others. Other services Other Assignment of rights, transferability, reimbursements, payments, discrepancies, courier charges and transfers. |
Financial assets and liabilities | 3.4 Financial assets and liabilities A. Date of recognition and initial measurement The Bank initially recognizes loans, deposits, securities and financial liabilities on the trade date, the date that the Bank becomes a party to the contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace. Recognized financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets or financial liabilities at fair value through profit or loss (FVTPL), are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. Recognized financial assets and financial liabilities designated as hedged items in qualifying fair value hedging relationships are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. B. Classification The Bank classifies its financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss based on the Bank’s business model for managing the financial assets and the contractual cash flow characteristics of these financial assets, except for those designated as hedged items in qualifying fair value hedging relationships, which are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through profit or loss (FVTPL): - The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI). A debt instrument is measured at fair value through other comprehensive income (FVOCI) only if it meets both of the following conditions and is not designated as at FVTPL: - The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and - The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI Unrealized gains or losses for financial assets at FVOCI are reported as net increases or decreases in other comprehensive income in the consolidated statement of changes in equity until realized. The gains or losses realized on the sale of securities, which are included in the gain (loss) on the sale of financial instruments, are determined individually for each instrument. Exchange gains or losses are recognized in gains or losses. For an equity instrument designated as measured at FVOCI, the accumulated gain or loss previously recognized in other comprehensive income is not subsequently reclassified to profit or loss but is transferred within equity to retained earnings. The rest of financial assets are classified at FVTPL, when the assessment of the financial instrument’s contractual terms and the cash flows derived from it determine that the SPPI criteria is not meet for its classification at amortized cost or at fair value through other comprehensive income. However, the following irrevocable election / designation at initial recognition of a financial asset on an asset-by-asset basis may be made: - It may irrevocably elect to present subsequent changes in fair value of an equity instrument that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination, in other comprehensive income (loss); and - It may irrevocably designate a debt instrument that meets the amortized cost or at FVOCI criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch. The Bank classifies all financial liabilities as subsequently measured at amortized cost, except for those liabilities designated as hedged items in qualifying fair value hedging relationships, which are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. C. Business model assessment The Bank assesses the objective of the business model in which the financial asset is held at a portfolio level, because this reflects the way the business is managed, and information is provided to management. The information considers the following: - The Bank’s policies and objectives for the portfolio and the operation of those policies in practice. In particular, if the management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realizing cash flows through the sale of the assets; - How the performance of the portfolio is evaluated and reported to the Bank’s management; - The risks that affect the performance of the business model and how those risks are managed; - The frequency, volume and timing of sales in prior periods, the reason for such sales and its expectations about future sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Bank’s stated objective for managing the financial assets is achieved and how cash flows are realized. The Bank’s Commercial business comprises primarily the loan portfolio that is held for collecting contractual cash flows. Sales of loans from theses portfolios are very infrequent and of a low volume. Certain debt securities are held by the Bank’s Treasury business whose objective is to hold assets to collect the contractual cash flows. These securities may be sold, but such sales are not expected to be more than infrequent. Additionally, certain other debt securities are held in separate portfolios within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Accordingly, such sales are comprehensive rather than incidental and consequently implies a higher frequency and volume of sale. An assessment of the business model for managing financial assets is fundamental to the classification of a financial asset. The Bank determines the business model at a level that reflects how financial asset groups are managed together to obtain a particular business objective. The business model does not depend on management’s intentions for an individual instrument; therefore, assessment of the business model is done at a higher level of aggregation rather than instrument by instrument. At the initial recognition of a financial asset, it is determined whether the newly recognized financial asset is part of an existing business model or whether it reflects the start of a new business model. The Bank reassesses its business model at each reporting date to determine whether business models have changed since the previous reporting date. For the current and previous reporting periods, the Bank has not identified a change in its business models. D. Assessment whether contractual cash flows are solely payments of principal and interest (SPPI) For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding at a point in time and for other basic lending risks and costs as well as profit margin. Contractual cash flows that are SPPI are consistent with a basic credit agreement. Contractual terms that originate risk exposure or volatility in the contractual cash flows that are not related to a basic credit agreement, such as exposure to changes in equity prices or commodity prices, do not give rise to contractual cash flows that are SPPI. An originated or an acquired financial asset can be a basic credit arrangement irrespective of whether it is a credit in its legal form. In assessing whether the contractual cash flows are SPPI, the Bank considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows, so that it would not meet this condition. In making the assessment, the Bank considers the following: - Contingent events that would change the amount and timing of cash flows; - Leverage features; - Prepayment and extension terms; - Terms that limit the Bank’s claim to cash flows from specified assets (e.g. non-recourse asset arrangements); and features that modify consideration of the time value of money (e.g. periodical reset of interest rates). The Bank measures it’s financial assets and liabilities at fair value through profit or loss, when the assessment of the financial instrument’s contractual terms and the cash flows derived from it determines that the SPPI criteria is not meet for its classification at amortized cost or at fair value through other comprehensive income. E. Reclassification If the business model under which the Bank holds financial assets changes, the financial assets affected are reclassified. The classification and measurement requirements related to the new category apply prospectively from the first day of the first reporting period following the change in business model that results in reclassifying the Bank’s financial assets. During the current fiscal year and previous accounting period there was no change in the business models under which the Bank holds financial assets and therefore no reclassifications were made. Changes in contractual cash flows are considered under the accounting policy on modification and derecognition of financial assets described in the following paragraphs. F. Derecognition of financial assets and financial liabilities Financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: - The rights to receive cash flows from the asset have expired. - The Bank has transferred its rights to receive cash flows from the asset and either has transferred substantially all risk and rewards of the asset or has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. - The Bank retains the right to receive cash flows from the asset but has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass–through’ arrangement. - When the Bank has transferred its rights to receive cash flows from an asset or has entered into a pass–through arrangement and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Bank’s continuing involvement in the asset. In that case, the Bank also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Bank has retained. The Bank assesses the transfer of risks and benefits by comparing the entity’s exposure, before and after the transfer, with the variation in the amounts and timing of the net cash flows of the transferred asset; additionally, the continued participation in a transferred financial asset is measured by the lowest value between the original carrying amount of the asset and the maximum amount of consideration that the Bank could be required to pay. In derecognizing the financial asset, allowance for losses are deducted from the gross carrying amount of the financial asset; any accumulated gain or loss that has been recognised in other comprehensive income is recognised in the consolidated statement of profit or loss. Any accumulated gain or loss recognized in other comprehensive income regarding equity instruments designated at fair value with changes in other comprehensive income is not recognized in the consolidated statement of profit or loss. Any interest in the transfer of a financial assets that qualifies for derecognition, booked or held by the Bank is recognized as a separate asset or liability. The Bank enters into transactions whereby it transfers assets recognized on its consolidated statement of financial position but retains either all or substantially all the risks and rewards of the transferred asset or a portion of them. In such cases, the transferred assets are not derecognized. Examples of such transactions are securities lending and sale-and-repurchase transactions. Financial liabilities A financial liability is derecognized when the obligation under the liability is extinguished, when the obligation specified in the contract is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as an extinguishment of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss. G. Modified financial asset or liability Financial assets A modified financial asset is an instrument whose borrower is experiencing financial difficulties and the renegotiation constitutes a concession to the borrower. A concession may include modification of terms such as an extension of maturity date, reduction in the stated interest rate, rescheduling of future cash flows, and reduction in the face amount of the financial asset or accrued interest, among others. When a financial asset is modified, the Bank assesses whether this modification results in derecognition. In accordance with the Bank’s policies a modification results in derecognition when it gives rise to substantially different terms. To determine if the modified terms are substantially different from the original contractual terms the Bank considers the following: - Qualitative factors, such as contractual cash flows after modification are no longer SPPI, change in currency or change of counterparty, the extent of change in interest rates, maturity or covenants. If these do not clearly indicate a substantial modification, then; - A quantitative assessment is performed to compare the present value of the remaining contractual cash flows according to the original terms with the contractual cash flows of the revised terms; both amounts discounted at the original effective interest. When the contractual terms of a financial asset are modified, and the modification does not result in derecognition, the Bank determines if the financial asset’s credit risk has increased significantly since initial recognition by comparing: - The remaining lifetime probability of default (PD) estimated based on data at initial recognition and the original contractual terms; with - The remaining lifetime PD at the reporting date based on the modified terms. In the renegotiation or modification of the contractual cash flows of the financial asset, the Bank shall: - Continue with its current accounting treatment for the existing financial asset that has been modified. - Record a modification gain or loss by recalculating the gross carrying amount of the financial asset as the present value of the renegotiated or modified contractual cash flows, discounted at the financial asset’s original effective interest rate. - Assess whether there has been a significant increase in the credit risk of the financial instrument, by comparing the risk of a default occurring at the reporting date (based on the modified contractual terms) and the risk of a default occurring at initial recognition (based on the original, unmodified contractual terms). The financial asset that is modified is not automatically considered to have a lower credit risk. The assessment should consider credit risk over the expected life of the asset based on historical and forward-looking information, including information about the circumstances that led to the modification. Evidence that the criteria for the recognition of lifetime expected credit losses are subsequently no longer met may include a history of up-to-date and timely payment in subsequent periods. A minimum period of observation will be necessary before a financial asset may qualify to return to a 12‑month expected credit loss measurement. - Make the appropriate quantitative and qualitative disclosures required for renegotiated or modified assets to reflect the nature and the effect of such modifications (including the effect on the measurement of expected credit losses) and how the Bank monitors these financial assets that have been modified. The Bank recognizes a loss allowance for expected credit losses on a financial asset that is measured at amortized cost at each reporting date at an amount equal to the lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk of that financial asset has not increased significantly since initial recognition, an entity shall measure the loss allowance for that financial asset at an amount equal to 12-month expected credit losses. When the modification of a financial asset results in the derecognition of an existing financial asset and the subsequent recognition of a modified financial asset, the modified asset is considered a new financial asset, at the time of derecognition, the reserve for expected credit losses (ECL) is recalculated to determine the net carrying value of the asset at that date. The new financial asset will have an allowance for losses measured based on 12-month for expected credit losses except for rare cases where the new financial asset is considered to be impaired, because a high risk of default remains, which has not been reduced in the modification. The Bank monitors the credit risk of the modified or renegotiated financial assets by assessing qualitative and quantitative information, considering them in the same way as customers with expired status under new terms. Financial Liabilities The Bank derecognizes a financial liability when its terms are modified, and the cash flows of the modified liability are substantially different. The Bank considers that the terms of a modified financial liability are substantially different if the present value of the cash flows under the new terms, including any fees paid net of any fees received, discounted at the original effective interest rate presents a difference greater than 10% of the discounted present value of the cash flows still remaining from the original financial liability. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of the financial liability derecognized, and the consideration paid, is recognized in profit or loss. Consideration paid includes non-financial assets transferred, if any, and the assumption of liabilities, including the new modified financial liability. If the modification of a financial liability is not accounted for as derecognition, then the amortized cost of the liability is recalculated by discounting the modified cash flows at the original effective interest rate and the resulting gain or loss is recognized in the consolidated financial statement of profit or loss. For floating-rate financial liabilities, the original effective interest rate used to calculate the modification gain or loss is adjusted to reflect current market terms at the time of the modification. Any costs and fees incurred are recognized as an adjustment to the carrying amount of the liability and amortized over the remaining term of the modified financial liability by re-computing the effective interest rate on the instrument. H. Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Bank currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously. Generally, this is not the case with a contractual compensation agreement; therefore, related assets and liabilities are presented with their gross amounts in the consolidated statement of financial position. Income and expenses are presented on a net basis only when permitted under IFRS Standards, or for gains and losses arising from a group of similar transactions. I. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, between market participants at the measurement date or, in its absence, the most advantageous market to which the Bank has access at that date. The fair value of a liability reflects its non-performance risk. When one is available, the Bank measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as “active” if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. If there is no quoted price in an active market, then the Bank uses valuation techniques that maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction. The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. The Bank recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred. J. Allowances for losses on financial instruments The allowances for losses on financial instruments are provided for losses derived from the expected credit losses, inherent in the loan portfolio, investment securities and loan commitments and financial guarantee contracts, using the reserve methodology to determine expected credit losses. Additions to the allowance for expected credit losses for financial instruments are recognized in profit or loss or in other comprehensive income depending on classification of the instrument. Incurred credit losses are deducted from the allowance, and subsequent recoveries are added. The allowance is also decreased by reversals of the allowance back to profit or loss. The allowance for expected credit losses for financial instruments at amortized cost is reported as a deduction of financial assets and, the allowance for expected credit losses on loan commitments and financial guarantee contracts, such as letters of credit and guarantees, is presented as a liability. The Bank assigns to each exposure a risk rating which is defined using quantitative and qualitative factors that are indicative of the risk of loss. This rating is considered for purposes of identifying significant increases in credit risk. These factors may vary depending on the nature of the exposure and the type of borrower. Each exposure will be assigned to a risk rating at the time of initial recognition based on the information available about the customer and the country. Exposures will be subject to continuous monitoring, which may result in the change of an exposure to a different risk rating. The analysis of customer risk considers financial and operational factors, sector / industry, market and managerial, also considering the ratings of international rating agencies, quality of information and other elements of an objective nature, including projections on these indicators. For the assignment of customer credit ratings, quantitative and qualitative criteria are applied, depending on whether the counterpart corresponds to a financial entity or a corporation, and broken down into several factors, which receive a weighting within the customer’s rating. In the analysis of the country risk, for the establishment of the rating, the assessment of quantitative and qualitative variables specific to the country under analysis is considered, as well as the regional and global macroeconomic environment, considering projections about the future performance of the country environment. In general, there are three groups of quantitative factors that determine the analysis and that give rise to a quantitative rating of the country (changes in main economic indicators; external payment capacity and access to capital; performance of domestic credit and the financial system), which is later analyzed within the social-political framework of the country (qualitative factors) and may suffer some deterioration for the determination of the final country rating. i) Measurement of expected credit losses Calculation of reserve for expected credit losses for financial instruments is made based on the risk rating resulting from the Bank’s internal model and considering, generally (certain exceptions apply), the worst among the country risk rating of the transaction and the customer risk rating. The table below provides a mapping of the Bank’s internal credit risk grades to external ratings. Internal 12 - month External rating average PD (1) % rating (2) Description 1 - 4 0.09 Aaa – Ba1 Exposure in customers or countries with payment ability to satisfy their financial commitments. 5 - 6 2.35 Ba2 – B3 Exposure in customers or countries with payment ability to satisfy their financial commitments, but with more frequent reviews. 7 7.90 Caa1 - Caa3 Exposure in customers whose primary source of payment (operating cash flow) is inadequate, and who show evidence of deterioration in their working capital that does not allow them to satisfy payments on the agreed terms, or in countries where the operation carries certain risks. 8 - 9 30.67 Ca Exposure in customers whose operating cash flow continuously shows insufficiency to service the debt on the originally agreed terms, or in countries where the operation is limited or restricted to certain terms, structure and types of credits. 10 100 C Exposure to customers with operating cash flows that do not cover their costs, are in suspension of payments, presumably will also have difficulties fulfilling possible restructuring agreements, are in a state of insolvency, or have filed for bankruptcy, among others. (1) Probability of default (2) Credit rating by Moody’s Investors Service. In order to maintain periodical monitoring of the quality of the portfolio, customers and countries are reviewed within a time frequency ranging from 3 to 12 months, depending on the risk rating. The Bank measures expected credit losses in a way that reflects: a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; b) time value of money; and c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecast of future economic conditions. The expected credit loss model reflects the general pattern of deterioration or improvement in the credit quality of the financial instrument. The amount of ECL recognized as a loss allowance or provision depends on the extent of credit deterioration since initial recognition. There are two measurement bases: - Stage 1: 12-month ECL, which applies to all financial instruments (from initial recognition) as long as there is no significant increase in credit quality, and - Stage 2 and 3: Lifetime ECL, which applies when a significant increase in credit risk has occurred on an individual or collective basis. In Stages 2 and 3 interest income is recognized. Under Stage 2 (as under Stage 1), there is a full decoupling between interest recognition and impairment and interest income is calculated on the carrying amount. Under Stage 3, when a financial asset subsequently becomes credit impaired (when a credit event has occurred), interest income is calculated on the amortized cost, net of impairment, i.e. the gross carrying amount after deducting the impairment allowance. In subsequent reporting years, if the credit quality of the financial asset improves so that the financial asset is no longer credit-impaired, and the improvement can be related objectively to the occurrence of an event (such as an improvement in the borrower’s credit rating), then the Bank will once again calculate interest income on a gross basis. The allowance for expected credit losses includes an asset-specific component and a formula-based component. The asset-specific component, or specific allowance, relates to the provision for losses on credits considered impaired and measured individually case-by-case. A specific allowance is established when the discounted cash flows (or observable fair value of collateral) of the credit are lower than the carrying value of that credit. The formula-based component (collective assessment basis), covers the Bank’s performing credit portfolio and it is established based on a process that estimates the probable loss inherent in the portfolio, based on statistical analysis and management’s qualitative judgment. This assessment considers comprehensive information that incorporates not only past-due data, but other relevant credit information, such as forward looking macro-economic information. ECL are a probability-weighted estimate of the present value of credit losses. These are measured as the difference in the present value of the cash flows due to the Bank under the contract and the cash flows that the Bank expects to receive arising from weighing of multiple future economic scenarios, discounted at the asset’s effective interest rate (EIR). For undrawn loan commitments, the ECL is the difference between the present value of the contractual cash flows that are due to the Bank if the holder of the commitment draws down the loan and the cash flows that the Bank expects to receive if the loan is drawn down; and for financial guarantee contracts, the ECL is the difference between the expected payments to reimburse the holder of the guaranteed debt instrument less any amounts that the Bank expects to receive from the holder, the debtor or any other party. The Bank determines ECL using two methodologies to determine if there is objective evidence of impairment for financial instruments: - Individually Assessed The expected credit losses on individually assessed financial instruments are determined by an evaluation of the exposures on a case-by-case basis. This procedure is applied to all credit transactions that are individually significant or not. If it is determined that there is no objective evidence of impairment for an individual credit transaction, it is included in a group of credit transactions with similar characteristics and is collectively assessed to determine whether there is impairment. The impairment loss is calculated by comparing the present value of the future expected flows, discounted at the original effective rate of the credit transaction, with its current carrying amount and the amount of any loss is charged as a provision for losses in profit or loss for those measured at amortized cost, and in equity for those operations measured at fair value through other comprehensive income. - Collectively Assessed For the purposes of a collective assessment of impairment, financial instruments are grouped according to similar credit risk characteristics. These characteristics are relevant to estimate cash flows for the groups of such assets, being indicative of the debtors’ ability to pay the amounts owed according to the contractual terms of the assets that are assessed. Future cash flows in a group of credit transactions that are collectively assessed to determine whether there is impairment are estimated according to the contractual cash flows of the assets in the group, t |
Derivative financial instruments for risk management purposes and hedge accounting | 3.5 Derivative financial instruments for risk management purposes and hedge accounting Derivatives held for risk management purposes include all derivative assets and liabilities that are not classified as trading assets or liabilities. Derivatives held for risk management purposes are measured at fair value in the consolidated statement of financial position. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain/loss is immediately recognized in profit or loss unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship. Applicable standards for all hedging relationships On initial designation of the hedge, the Bank formally documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objective and strategy in undertaking the hedge, together with the method that will be used to assess the effectiveness of the hedging relationship. The Bank makes an assessment, both at inception of the hedging relationship and on an ongoing basis, of whether the hedging instrument(s) is(are) expected to be highly effective in offsetting the changes in the fair value or cash flows of the respective hedged item(s) during the period for which the hedge is designated. The Bank uses derivative financial instruments for its management of interest rate and foreign currency risks. Interest rate swap contracts, cross-currency swap contracts and foreign exchange forward contracts have been used to manage interest rate and foreign exchange risks respectively associated with debt securities and borrowings with fixed and floating rates, and loans and borrowings in foreign currency. These derivatives contracts can be classified as fair value and cash flow hedges. In addition, foreign exchange forward contracts are used to hedge exposures to changes in foreign currency in subsidiary companies with functional currencies other than the US dollar. These contracts are classified as net investment hedges. The accounting for changes in value of a derivative depends on whether the contract is for trading purposes or has been designated and qualifies for hedge accounting. Derivatives held for trading purposes include interest rate swaps, cross-currency swaps and foreign exchange forward contracts used for risk management purposes that do not qualify for hedge accounting. These derivatives are reported as asset or liabilities, as applicable. Changes in realized and unrealized gains and losses from these financial instruments are recognized as gains or losses on financial instruments. Derivatives for hedging purposes primarily include foreign exchange forward contracts and interest rate swap contracts in US dollars and cross-currency swaps. Derivative contracts designated and qualifying for hedge accounting are reported in the consolidated statement of financial position as derivative financial instruments used for hedging - assets and liabilities, as applicable; and hedge accounting is applied. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged. Each derivative must be designated as a hedge, with documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, as well as how effectiveness will be assessed prospectively. The hedging instrument should be qualitatively assessed on a quarterly basis in order to determine its effectiveness at achieving offsetting changes in fair value or cash flows. Any ineffectiveness must be reported in current-year profit or loss. i) Hedge accounting relationship As the Bank enters into a hedge accounting relationship, the first requirement is that the hedging instrument and the hedged item must be expected to move in the opposite direction as a result of the change in the hedged risk. This should be based on an economic rationale, as could be the case if the relationship is based only on a statistical correlation. This requirement is fulfilled for many of the hedging relationships carried by the Bank as the underlying of the hedging instrument matches or is closely aligned with the hedged risk. Even when there are differences between the hedged item and the hedging instrument, the economic relationship will often be capable of being demonstrated using a qualitative assessment. The assessment, whether qualitative or quantitative, considers the following: a) maturity; b) nominal amount; c) cash flow dates; d) interest rate basis; and e) credit risk, including the effect of collateral, among others. ii) Hedge ratio The hedge ratio is the ratio between the amount of hedged item and the amount of the hedging instrument. For most of the hedging relationships, the hedge ratio is 1:1 as the underlying of the hedging instrument perfectly matches the designated hedged risk. For a hedging relationship with a correlation between the hedged item and the hedging instrument that is not 1:1 relationship, the hedge ratio is generally set so as to adjust for the type of relation in order to improve effectiveness. iii) Discontinuation of hedge accounting The Bank discontinues hedge accounting prospectively in the following situations: 1. It is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item. 2. The derivative expires or is sold, terminated or exercised. 3. It is determined that designation of the derivative as a hedging instrument is no longer appropriate. The Bank carries all derivative financial instruments in the consolidated statement of financial position at fair value. Fair value hedges When a derivative is designated as the hedging instrument in a hedge of the change in fair value of a recognized asset or liability or a firm commitment that could affect profit or loss, changes in the fair value of the derivative are recognized in profit or loss together with changes in the fair value of the hedged item that are attributable to the hedged risk, except when the hedging instrument hedges an equity instrument designated at FVOCI in which case it is recognized in OCI. The carrying amount of a hedged item not already measured at fair value is adjusted in profit or loss for the fair value change attributable to the hedged risk. For debt instruments measured at FVOCI, the carrying amount is not adjusted as it is already at fair value, but the part of the fair value on the hedged item associated with the hedged risk is recognized in profit or loss instead of OCI. When the hedged item is an equity instrument designated at FVOCI, the hedging gain/loss remains in OCI to match that of the hedging instrument. If the hedge relationship is terminated or exercised, or the hedge no longer meets the criteria for fair value hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued prospectively and the fair value adjustment to the hedged item continues to be reported as part of the basis of the item and is amortized to earnings as a yield adjustment where hedging gains/losses are recognized in profit or loss; they are recognized in the same line as the hedged item. Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of variability in cash flows attributable to a particular risk associated with a recognized asset or liability that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in OCI and recognized in profit or loss when the hedged cash flows affect earnings. The ineffective portion is recognized in profit or loss as loss on financial instruments, net. If the cash flow hedge relationship is terminated or exercised, or the hedge no longer meets the criteria for fair value hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued prospectively and the related amounts in OCI are reclassified into profit or loss when hedged cash flows occur. Net investment hedges When a derivative instrument or a non-derivative financial item is designated as the hedging instrument in a hedge of a net investment in a foreign operation, the effective portion of changes in the fair value of the hedging instrument is recognized in OCI and presented in the translation reserve within equity. Any ineffective portion of the changes in the fair value of the derivative is recognized in profit or loss. The amount recognized in OCI is reclassified to profit or loss as a reclassification adjustment when disposal of the foreign operation occurs. |
Cash and due from banks | 3.6 Cash and due from banks Cash equivalents include demand deposits in banks and interest-bearing deposits in banks with original maturities of three months or less, excluding pledged deposits. |
Loans | 3.7 Loans Loans reported in the consolidated statement of financial position include: - Loans at amortized cost - Loans measured at fair value through profit or loss Loans at amortized cost consider the principal outstanding amounts and interest receivable net of unearned interest, deferred fees and allowance for expected credit losses. The loans recognized and designated as hedged items in qualifying fair value hedging relationships, are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. Purchased loans are recorded at acquisition cost. The difference between the outstanding amount and the acquisition cost of loans, premiums and discounts, is amortized over the life of the loan as an adjustment to the yield. All other costs related to acquisition of loans are also reflected as an adjustment to the yield and are expensed when incurred. Loans measured at FVTPL arise as the result of the assessment of the financial instrument's contractual terms and it is determined that the cash flows derived from the evaluated instrument do not meet with the SPPI criteria for its classification at amortized cost or at fair value through other comprehensive income. |
Securities and other financial assets | 3.8 Securities and other financial assets Securities and other financial assets caption in the consolidated statement of financial position includes: - Debt investment securities measured at amortized cost; these are initially measured at fair value plus incremental direct transaction costs, and subsequently at their amortized cost using the effective interest method; - Debt and equity investment securities measured at FVOCI; and - Debt investment securities measured at FVTPL |
Deposits, borrowings and repurchase agreements | 3. 9 Deposits, borrowings and repurchase agreements Liability deposits, borrowings and debt are accounted for at amortized cost, except for those designated as hedged items in qualifying fair value hedging relationships, which are measured at amortized cost adjusted for the hedge risk components associated to the hedging relationship. Repurchase agreements are transactions in which the Bank sells a security and simultaneously agrees to repurchase that security (or an asset that is substantially identical) at a fixed price on a future date. The Bank continues to recognize the securities in their entirety in the consolidated statement of financial position because it retains substantially all the risks and rewards of ownership. The cash consideration received is recognized as a financial asset and a financial liability is recognized for the obligation to pay the repurchase price. Because in the repurchase agreements the Bank sells the contractual rights to the cash flows of the securities, it does not have the ability to use the transferred assets during the term of the arrangement. |
Loan commitments and financial guarantee contracts | 3.10 Loan commitments and financial guarantee contracts Letters of credit, stand-by letters of credit and guarantees The Bank, on behalf of its client’s base, issues, confirms and advises letters of credit to facilitate foreign trade transactions. When issuing, confirming and advising letters of credit, the Bank adds its own unqualified assurance that the Bank will pay upon presentation of complying documents as per the terms and conditions established in the letter of credit. The Bank also issues, confirms and advises stand-by letters of credit and guarantees, which are issued on behalf of institutional clients in connection with financing between its clients and third parties. The Bank applies the same credit policies used in its lending process, and once the commitment is issued, it becomes irrevocable and remains valid until its expiration upon the presentation of complying documents on or before the expiry date. Credit commitments Commitments to extend credit are binding legal agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and require payment of a fee to the Bank. As some commitments expire without being drawn down, the total commitment amounts do not necessarily represent future cash requirements. |
Leases | 3.11 Leases At inception of a contract, the Bank assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Bank assesses whether: - The contract involves the use of an identified asset –this may be specified explicitly or implicitly; and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. - The Bank has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use. - The Bank has the right to direct the use of the asset. The Bank has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Bank has the right to direct the use of the asset if either: - The Bank has the right to operate the asset; or - The Bank designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the Bank allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for lease agreements of office spaces in buildings in which the Bank is a lessee, it chose not to separate the components of the contract that do not correspond to the lease and to account for all of them under a single lease component. The details of the lease policy are described as follows: A. Definition of a lease The Bank determines at the beginning of the contract if an agreement is or contains a lease according to IFRS 16. The Bank assesses if a contract is or contains a lease based on the definition of a lease. B. As a lessee The Bank recognizes right-of-use assets and lease liabilities for most leases. These leases are presented in the consolidated statement of financial position. Lease liabilities are measured at the present value of the lease payments, discounted at the Bank's internal funding cost rate. The right-of-use assets are measured at their book value, by discounting total lease payments to present value using the Bank's internal funding cost rate, for the weighted average term of the contract, adjusted for any prepayment, incremental cost, dismantling cost and accumulated depreciation. The right-of-use asset is subsequently depreciated using the straight-line method from the inception date until the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if applicable, and is adjusted for certain new measurements of the lease liability. The Bank presents its right of use assets in equipment and improvements to the leased property and the liability for lease in obligations and debt, net in the consolidated statement of financial position. C. As a sublessor Sub-leases of assets for rights of use are classified as operating leases. The subleased portion is classified as investment property, which is subsequently measured by applying the cost model. Leases receivable are recognized as income in the consolidated statement of profit or loss in the period in which they are earned. The Bank applied IFRS 15 to revenue from contracts with customers to assign the consideration in the contract to each lease component and that is not a lease. D. Investment properties - Right of use Rights-of-use assets that the Bank holds under sublease agreements for the purpose of obtaining lease income are classified as investment properties in the consolidated statement of financial position. These assets are measured at initial recognition using the same criteria used to recognize other rights-of-use assets. After initial recognition, the carrying amount of these assets is amortized on a straight-line basis over their life. The estimated useful life of these investment properties is closely related to the principal lease agreement. |
Equipment and leasehold improvements | 3.12 Equipment and leasehold improvements Equipment and leasehold improvements are stated at cost excluding the costs of day–to–day maintenance, less accumulated depreciation and impairment losses. Changes in the expected useful life are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Depreciation is calculated using the straight–line method to write down the cost of assets and equipment to their residual values over their estimated useful lives. The estimated useful lives are as follows: Useful life in years Furniture and equipment 3 to 5 years Hardware 3 years Other equipment 2 to 4 years Leasehold improvements 3 to 15 years or up to the lease term Leasehold improvements, under operating leases are amortized on a straight-line basis calculated without exceeding the length of the respective lease contracts. Equipment and leasehold improvements include right of use of assets arising from the lease policy. Regarding the recognition and subsequent measurement for lease contracts are set out in Note 3.11. Equipment and leasehold improvements are derecognized on disposal or when no future economic benefits are expected from their use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in other income or other expenses in profit or loss in the year that the asset is derecognized. |
Investment properties | 3.13 Investment property Properties that are held with the intention of generating a return from rental, capital appreciation or both, as well as right-of-use assets recognized under IFRS 16 that the Bank holds under sublease agreements and that are not occupied by the Bank, are classified as investment properties in the consolidated statement of financial position and are initially measured at cost, including all transaction-related costs and, where applicable, costs associated with financing. After initial recognition, investment properties are measured at fair value, except for those investment properties – right of use recognized under IFRS 16 that the Bank holds under sublease agreements which are subsequently measured in accordance with IFRS 16. Fair value is based on market prices, adjusted, if necessary, for differences in the nature, location or condition of the specific asset. If this information is not available, the Bank uses alternative valuation methods, such as recent prices on less active markets or discounted cash flow projections. Valuations are performed as of the reporting date by professional appraisers who hold recognized and relevant professional qualifications and have recent experience in the location and category of the investment property being valued. These valuations form the basis for the carrying amounts in the consolidated financial statements. The fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions. Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Bank and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognized. Changes in fair value are recognized in profit or loss. Investment property is derecognized when disposed of. When the Bank disposes of a property at fair value in an arm’s length transaction, the carrying value immediately prior to the sale is adjusted to the transaction price, and the adjustment is recorded in profit or loss as gain (loss) on non-financial assets. If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment. Its fair value at the date of reclassification becomes its cost for subsequent accounting purposes. |
Intangible assets | 3.14 Intangible assets An intangible asset is recognized only when its cost can be measured reliably, and it is probable that the expected future economic benefits that are attributable to it will flow to the Bank. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite useful lives are amortized using the straight-line method over the estimated useful lives of the assets. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and they are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is presented as a separate line item in profit or loss. Bank’s intangible assets include the cost of computer software. Amortization is calculated using the straight–line method to write down the cost of intangible assets to their residual values over their estimated useful lives of 5 years. Gains or losses arising from the derecognition of an intangible asset are determined by the Bank as the difference between proceeds from the sale or disposal and the net carrying amount of the intangible asset and recognized in profit or loss for the year in which the transaction occurs. |
Impairment of non-financial assets | 3.15 Impairment of non-financial assets A non-financial asset is impaired when an entity will not be able to recover that asset’s carrying value, either through its use or sale. If circumstances arise which indicate that a non-financial asset might be impaired, a review should be undertaken of its cash generating abilities through use or sale. This review will produce an amount which should be compared with the asset’s carrying value, and if the carrying value is higher, the difference must be written off as impairment in profit or loss. On the other hand, if there is any indication that previously recognized impairment losses may no longer exist or may have decreased, the Bank makes an estimate of the recoverable amount. In that case, the carrying amount of the asset is increased to its recoverable amount. This increase cannot exceed the carrying amount that would have been determined, net of depreciation or amortization, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. |
Provisions | 3.16 Provisions Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is presented in profit or loss, net of any reimbursement. |
Share-based payments | 3.17 Share-based payments Compensation cost is based on the grant date fair value of both stock and options and is recognized over the requisite service period of the employee. The fair value of each option is estimated at the grant date using a binomial option-pricing model. When stocks options and restricted stock units vested are exercised, the Bank’s policy is to sale treasury stock. |
Equity | 3.18 Equity Reserves Regulatory and capital reserves are established as appropriations from retained earnings and, as such, form part of retained earnings. Additions and reductions of regulatory and capital reserves require the approval of the Bank’s Board of Directors and the SBP, as applicable. Other capital reserves, presented as other comprehensive income include: - Translation reserve : The translation reserve comprises all foreign currency differences arising from the translation of the consolidated financial statements of foreign operations when the functional currency of the foreign operation is other than the US dollar, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation. - Hedging reserve : The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows affect profit or loss. - Fair value reserve : The fair value reserve comprises the cumulative net change in the fair value of investment securities measured at FVOCI, less the ECL allowance recognized in profit or loss. Treasury stock and contracts on own shares The own equity instruments of the Bank which are acquired by it or by any of its subsidiaries (treasury stock) are deducted from equity and accounted for at weighted average cost. Consideration paid or received on the purchase, sale, issue or cancellation of the Bank’s own equity instruments is recognized directly in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of own equity instruments, but is recognized directly in equity. |
Earnings per share | 3.19 Earnings per share Basic earnings per share is computed by dividing the profit for the year (the numerator) by the weighted average number of common shares outstanding (the denominator) during the year. Diluted earnings per share measure performance incorporating the effect that potential common shares, such as stock options and restricted stock units outstanding during the same period, would have on earnings per share. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except for the denominator, which is increased to include the number of additional common shares that would have been issued if the beneficiaries of stock purchase options and restricted stock units plans could exercise their options. |
Taxes | 3.20 Taxes Income taxes Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. Tax laws and regulations used to compute the amount are those that are enacted or substantively enacted by the reporting date. - Bladex Head Office is exempted from payment of income taxes in Panama in accordance with the contract law signed between the Republic of Panama and Bladex. - Bladex Representacao Ltda.is subject to income taxes in Brazil. - Bladex Development Corp. is subject to income taxes in Panama. - BLX Soluciones, S.A. de C.V., SOFOM, is subject to income taxes in Mexico. - The New York Agency and Bladex Holdings, Inc. incorporated in USA are subject to federal and local taxation in USA based on the portion of income that is effectively connected with its operations in that country. Current and deferred tax The current tax for the reporting date as well as for the deferred tax, result in a minimal amount, whereby the changes are presented in profit or loss as other operating expenses. The Bank performes an annual assessment of laws and regulations in its different jurisdictions together with its tax experts to determine uncertainty regarding income tax treatments, concluding that there is no uncertainty about tax treatments applied in each tax legislation. |
Segment reporting | 3.21 Segment reporting The Bank’s segment reporting is based on the following business segments: Commercial, which incorporates the Bank’s core business of financial intermediation and fee generating activities relating to the Bank’s commercial portfolio; and Treasury, which is responsible for the Bank’s funding and liquidity management, including its activities in investment securities, as well as management of the Bank’s interest rate, liquidity, price, and currency risks. |
Judgments, estimates and significant accounting assumptions | 3.22 Judgments , estimates and significant accounting assumptions The preparation of the consolidated financial statements requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the reporting date and the reported amounts of revenues and expenses during the year. Material estimates that are particularly susceptible to significant changes relate to the determination of the allowances for expected credit losses, impairment of securities, and the fair value of financial instruments. Actual results could differ from those estimates. Management believes these estimates are adequate. A. Judgments In the process of applying the Bank’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements: Determining the reserve for expected credit losses When establishing ECL, judgment is applied by management in order to assess the amount and opportunity of the future cash flows with the purpose of evaluating whether credit risk has significantly increased since initial recognition, taking into account the characteristics of the financial asset and the former patterns pre-established for similar financial assets. The changes in risk of default occurring within the next 12 months can be a reasonable approach of the changes in the risk measure according to the lifetime of the instrument. The Bank uses the changes in risk of default occurring within the next 12 months to determine if the credit risk has significantly increased since initial recognition, unless the circumstances indicate an assessment during the lifetime of the instrument is necessary. i. Significant increase in credit risk For the financial assets in stage 1, ECL are measured as an allowance equal to 12-month ECL on stage 1 assets, or lifetime ECL assets on stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. In assessing whether the credit risk of an asset has significantly increased the Bank takes into account reasonable and supportable forward-looking qualitative and quantitative information. ii. Establishing groups of assets with similar credit risk characteristics When ECL are measured on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics. The Bank monitors the appropriateness of the credit risk characteristics on an ongoing basis to assess whether they continue to be similar. This is required in order to ensure that when credit risk characteristics change there is appropriate re-segmentation of the assets. This may result in new portfolios being created or assets moving to an existing portfolio that better reflects the similar credit risk characteristics of that group of assets. Re-segmentation of portfolios and movement between portfolios is more common when there is a significant increase in credit risk (or when that significant increase reverses) and so assets move from 12‑month ECL to lifetime ECL, or vice versa, but it can also occur within portfolios that continue to be measured on the same basis of 12‑month ECL or lifetime ECL but the amount of ECL changes because the credit risk of the portfolios differs. Determining the fair value on financial instruments i. Models and assumptions used The Bank uses various models and assumptions in measuring fair value of financial assets as well as in estimating ECL. Judgment is applied in identifying the most appropriate model for each type of asset, as well as for determining the assumptions used in these models, including assumptions that relate to key drivers of credit risk. ii. Fair value measurement When the fair values of financial assets and financial liabilities recorded in the consolidated statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of mathematical models. The inputs to these models are derived from observable market data where possible, but if this is not available, judgment is required to establish fair values. The judgments include considerations of liquidity and model inputs such as volatility for longer–dated derivatives and discount rates, prepayment rates and default rate assumptions for asset-backed securities. The valuation of financial instruments is described in more detail in Note 7. Business model assessment Classification and measurement of financial assets depends on the results of the SPPI and the business model test. The Bank determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgment reflecting all relevant evidence including how the performance of the assets is evaluated and their performance is measured, and the risks that affect the performance of the assets and how they are managed. The Bank monitors financial assets measured at amortized cost or fair value through other comprehensive income that are derecognized prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. B. Estimates and assumptions The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Bank based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances beyond the control of the Bank. Such changes are reflected in the assumptions when they occur. Going concern The Bank’s management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Therefore, the consolidated financial statements continue to be prepared on a going concern basis. Impairment losses on financial instruments at amortized cost The Bank individually assesses all credit impaired loans at amortized cost at each reporting date to assess whether an impairment loss. Management’s judgment is required in the estimation of the amount and timing of future cash flows when determining the impairment loss. These estimates are based on assumptions about several factors and actual results that may vary, resulting in future changes to the allowance. Loans at amortized cost that do not give rise to credit impairment individually are assessed in groups of assets with similar risk characteristics. This is to determine whether a provision should be made due to incurred loss events for which there is objective evidence, but which effects are not yet evident. The collective assessment takes into account data from the loan portfolio (such as levels of arrears, credit utilization, loan-to-collateral ratios, etc.), and judgments on the effect of concentrations of risks and economic data (including levels of unemployment, real estate price indices, country risk and the performance of various individual groups). |
Significant accounting polici_2
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Schedule of assets and equipment to their residual values over their estimated useful lives | Useful life in years Furniture and equipment 3 to 5 years Hardware 3 years Other equipment 2 to 4 years Leasehold improvements 3 to 15 years or up to the lease term |
Schedule of bank's internal credit risk grades to external ratings | Internal 12 - month External rating average PD (1) % rating (2) Description 1 - 4 0.09 Aaa – Ba1 Exposure in customers or countries with payment ability to satisfy their financial commitments. 5 - 6 2.35 Ba2 – B3 Exposure in customers or countries with payment ability to satisfy their financial commitments, but with more frequent reviews. 7 7.90 Caa1 - Caa3 Exposure in customers whose primary source of payment (operating cash flow) is inadequate, and who show evidence of deterioration in their working capital that does not allow them to satisfy payments on the agreed terms, or in countries where the operation carries certain risks. 8 - 9 30.67 Ca Exposure in customers whose operating cash flow continuously shows insufficiency to service the debt on the originally agreed terms, or in countries where the operation is limited or restricted to certain terms, structure and types of credits. 10 100 C Exposure to customers with operating cash flows that do not cover their costs, are in suspension of payments, presumably will also have difficulties fulfilling possible restructuring agreements, are in a state of insolvency, or have filed for bankruptcy, among others. (1) Probability of default (2) Credit rating by Moody’s Investors Service. |
New accounting standards (Table
New accounting standards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
New accounting standards | |
Summary of remaining exposure of non derivative financial instruments and loan commitments | USD LIBOR USD LIBOR USD LIBOR as of as of as of June December 31, 2021 December 31, 2022 30, 2023 (Notional in US$ (Notional in US$ (Notional in US$ thousands ) thousands ) thousands) Non-derivative financial assets Loans 1,034,252 473,643 416,833 Non-derivative financial liabilities Borrowings 222,500 62,500 12,500 Loan commitments 63,333 60,000 10,000 |
Summary of remaining notional amount of derivative financial instruments | USD LIBOR USD LIBOR USD LIBOR as at December as at December as at June 31, 2021 31, 2021 30, 2023 (Notional (Notional (Notional US$,000) US$,000) US$,000) Derivatives held for risk management Derivative financial instruments - assets 3,006 1,937 — Derivative financial instruments - liabilities 400,414 88,768 68,768 |
Financial Risk (Tables)
Financial Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of financial assets that are either past due or impaired | December 31, 2020 Stage 1 Stage 2 Stage 3 Total Current 4,613,468 287,336 10,593 4,911,397 December 31, 2019 Stage 1 Stage 2 Stage 3 Total Current 5,602,157 228,995 47,169 5,878,321 Past due 90-120 days — — 3,724 3,724 151-180 days — — — — More than 180 days — — 10,952 10,952 Total past due — — 14,676 14,676 Total 5,602,157 228,995 61,845 5,892,997 |
Schedule of credit exposure of derivative transactions | December 31, 2020 Derivative Derivative financial financial Notional value instruments - fair instruments - fair USD value asset value liabilities Interest rate swaps 145,667 1,831 (1,774) Cross-currency swaps 565,997 25,947 (3,848) Foreign exchange forwards 71,353 — (3,589) Total 783,017 27,778 (9,211) December 31, 2019 Derivative Derivative financial financial Notional value instruments - fair instruments - fair USD value asset value liabilities Interest rate swaps 521,333 407 (1,903) Cross-currency swaps 369,869 10,125 (10,197) Foreign exchange forwards 74,471 625 (2,575) Total 965,673 11,157 (14,675) |
Schedule of macroeconomic assumptions used in the base, optimistic and pessimistic scenarios | Variable GDP Growth ComEx Growth (Var.% ) Index (Var.% ) December 31, December 31, December 31, December 31, Country Scenario 2020 2019 2020 2019 Central 0.7 % 2.0 % 4.0 % 4.1 % Brazil Upside 1.7 % 3.0 % 7.5 % 7.6 % Downside (0.7) % 0.6 % 0.0 % 0.1 % Central 1.4 % 3.4 % 4.6 % 6.6 % Colombia Upside 2.5 % 4.5 % 7.6 % 9.6 % Downside 0.1 % 2.1 % 1.1 % 3.1 % Central 0.2 % 1.5 % 3.5 % 2.2 % Mexico Upside 1.2 % 2.5 % 7.5 % 6.2 % Downside (1.0) % 0.3 % (1.0) % (2.3) % Central 1.5 % 2.2 % 6.4 % 3.1 % Chile Upside 2.6 % 3.3 % 9.9 % 6.6 % Downside 0.3 % 1.0 % 2.4 % (0.9) % Central 2.5 % 4.6 % 4.2 % 3.0 % Panama Upside 3.5 % 6.1 % 7.2 % 6.0 % Downside 1.3 % 3.2 % 0.7 % (0.5) % Central 2.5 % 3.5 % 4.2 % 4.1 % Guatemala Upside 3.5 % 4.5 % 7.2 % 7.1 % Downside 1.3 % 2.3 % 0.7 % 0.6 % Central 1.4 % 3.3 % 5.1 % 4.2 % Peru Upside 2.4 % 4.3 % 8.6 % 7.7 % Downside 0.2 % 2.1 % 1.1 % 0.2 % Central (0.2) % 1.3 % 2.7 % 4.6 % Ecuador Upside 0.8 % 2.3 % 5.7 % 7.6 % Downside (1.7) % (0.2) % (0.8) % 1.1 % |
Schedule of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Securities Loan commitments Loans at amortized and financial December 31, 2020 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 13,459 79 38 — 13,576 Financial instruments that have been derecognized during the year (28,036) (1,885) (86) — (30,007) New financial assets originated or purchased 12,828 1,666 430 43 14,967 Total (1,749) (140) 382 43 (1,464) Securities Loan commitments Loans at amortized and financial December 31, 2019 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 11,714 153 (18) — 11,849 Financial instruments that have been derecognized during the year (36,534) (2,506) (46) (173) (39,259) New financial assets originated or purchased 25,695 2,108 37 — 27,840 Total 875 (245) (27) (173) 430 Securities Loan commitments Loans at amortized and financial December 31, 2018 cost guarantee contracts At amortized cost FVOCI Total Net effect of changes in allowance for expected credit losses 56,311 (48) (63) Financial instruments that have been derecognized during the year (27,490) (6,666) (64) — (34,220) New financial assets originated or purchased 32,355 2,928 56 14 35,353 Total 61,176 (3,556) (56) (49) 57,515 |
Schedule of reconciliation of changes in the net carrying amount of credit-impaired loans | December 31, December 31, 2020 2019 Credit-impaired loans and advances at 54,573 49,439 Classified as credit-impaired during the year 2,100 — Change in allowance for expected credit losses (744) 7,164 Recoveries of amounts previously written off 139 52 Interest income 323 Write-offs (52,106) (2,405) Credit-impaired loans and advances at end of year 4,588 54,573 |
Schedule of concentrations of credit risk by sector and industry. | Securities Loan commitments and Loans at amortized cost financial guarantee contracts At amortized cost FVOCI December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Carrying amount - principal 4,911,397 5,892,997 74,366 115,682 164,074 74,547 231,348 5,094 Amount committed/guaranteed — — 564,898 493,372 — — — — Concentration by sector Corporations: Private 1,425,929 1,782,808 276,249 213,161 56,979 2,998 60,403 — State-owned 741,791 780,491 92,299 69,822 29,985 23,792 23,858 — Financial institutions: Private 2,231,742 2,692,787 65,434 75,130 33,715 19,276 — — State-owned 476,520 589,690 205,282 250,941 28,276 — 141,974 — Sovereign 35,415 47,221 — — 15,119 28,481 5,113 5,094 Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 Concentration by industry Financial institutions 2,708,262 3,282,477 270,716 326,071 61,991 19,276 141,974 — Manufacturing 760,985 925,375 173,493 143,560 66,053 21,658 45,654 — Oil and petroleum derived products 586,030 561,068 98,189 71,571 20,911 5,132 38,607 — Agricultural 336,715 327,288 — — — — — — Services 264,597 370,753 63,086 20,497 — — — — Mining 94,955 162,364 — — — — — — Sovereign 35,415 47,221 — — 15,119 28,481 5,113 5,094 Other 124,438 216,451 33,780 47,355 — — — — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 |
Schedule of concentrations of credit risk by rating and country | Securities Loan commitments and Loans at amortized cost financial guarantee contracts At amortized cost FVOCI December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Carrying amount - principal 4,911,397 5,892,997 74,366 115,682 164,074 74,547 231,348 5,094 Amount committed/guaranteed — — 564,898 493,372 — — — — Rating 1-4 2,582,794 2,928,401 247,425 167,241 108,505 73,047 231,348 5,094 5-6 2,096,138 2,415,323 237,807 183,568 55,569 1,500 — — 7-8 232,465 487,428 154,032 258,245 — — — — 10 — 61,845 — — — — — — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 Concentration by country Argentina 130,944 226,481 — — — — — — Belgium 9,807 13,742 — — — — — — Bolivia 12,000 7,000 2,800 400 — — — — Brazil 971,652 1,015,316 50,000 50,000 41,128 1,500 — — Canada — — — 657 — — — — Chile 533,945 683,132 7,911 8 11,992 — 28,972 5,094 Colombia 714,258 906,092 50,333 50,610 29,998 15,338 — — Costa Rica 146,200 220,380 56,876 59,161 — — — — Dominican Republic 202,433 289,853 16,500 16,500 — — — — Ecuador 45,511 174,267 165,275 252,391 — — — — El Salvador 40,000 54,233 1,087 5,555 — — — — France 150,810 152,530 84,862 47,906 — — — — Germany — 34,613 — — — — — — Guatemala 281,485 278,557 43,845 44,200 — — — — Honduras 10,199 128,937 345 300 — — — — Hong Kong 1,800 10,400 — — — — — — Jamaica 23,274 38,312 — — — — — — Luxembourg 50,000 59,813 — — — — — — Mexico 607,099 754,465 4,995 27,377 43,910 21,505 — — Panama 241,097 268,356 61,435 25,304 10,399 36,204 — — Paraguay 100,816 127,970 11,800 10,652 — — — — Peru 272,752 150,301 47,245 8,033 26,647 — — — Singapore 75,095 90,955 — — — — — — Switzerland — — — 10,000 — — — — Trinidad and Tobago 165,995 181,676 — — — — — — United States of America 113,816 25,000 — — — — 89,794 — United Kingdom 10,409 — — — — — — — Uruguay — 619 33,955 — — — — — Multinational — — — — — — 112,582 — Total 4,911,397 5,892,997 639,264 609,054 164,074 74,547 231,348 5,094 |
Schedule of Bank's liquid assets along with average information | December 31, December 31, 2020 2019 At the end of the year 249.42 % 52.48 % Year average 115.98 % 37.82 % Maximum of the year 249.42 % 53.38 % Minimum of the year 53.26 % 23.23 % |
Schedule of Bank's liquid assets by geographical location | December 31, 2020 December 31, 2019 Cash and due from Cash and due from (in millions of USD dollars) banks Securities FVOCI Total banks United State of America 740 90 830 1,132 Other O.E.C.D countries 100 — 100 4 Latin America 6 — 6 4 Other countries — — — 20 Multinational — 112 112 — Total 846 202 1,048 1,160 |
Schedule of Bank's demand deposits ratio on total deposits | December 31, December 31, (in millions of USD dollars) 2020 2019 Demand liabilities and "overnight" 171 86 % Demand liabilities and "overnight" to total deposits 5.44 % 2.97 % |
Schedule of Bank's demand deposits from customers is satisfied by the Bank's liquid assets | December 31, December 31, (in millions of USD dollars) 2020 2019 Total liquid assets 1,048 1,160 % Total assets to total liabilities 33.40 % 40.15 % % Total liquid assets in the U.S. Federal Reserve 65.68 % 97.37 % |
Schedule of Bank's loans and securities short-term portfolio with maturity within one year | (in millions of USD dollars) December 31, December 31, 2020 2019 Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year according to its original terms 3,114 3,485 Average term (days) 195 189 |
Schedule of Bank's loans and securities short-term portfolio with medium term maturity | (in millions of USD dollars) December 31, December 31, 2020 2019 Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms 2,193 2,497 Average term (days) 1,382 1,185 |
Schedule of future cash flows between assets and liabilities grouped by its remaining maturity with respect to the contractual maturity | December 31, 2020 Up to 3 3 to 6 6 months to More than Gross inflows Carrying Description months months 1 year 1 to 5 years 5 years (outflows) amount Assets Cash and due from banks 863,831 — — — — 863,831 863,812 Securities and other financial assets, net 11,541 20,961 60,311 312,027 — 404,840 398,068 Loans, net 1,712,049 998,923 1,255,069 293,489 1,156,625 5,416,155 4,896,647 Derivative financial instruments - assets — 119 129 26,691 839 27,778 27,778 Total 2,587,421 1,020,003 1,315,509 632,207 1,157,464 6,712,604 6,186,305 Liabilities Deposits (2,678,292) (166,832) (293,306) (6,638) — (3,145,068) (3,140,875) Securities sold under repurchase agreements — (5,784) (4,977) — — (10,761) (10,663) Borrowings and debt, net (166,034) (60,816) (456,932) (1,425,806) (24,922) (2,134,510) (1,994,245) Derivative financial instruments - liabilities (3,020) (1,081) (71) (5,039) — (9,211) (9,211) Total (2,847,346) (234,513) (755,286) (1,437,483) (24,922) (5,299,550) (5,154,994) Contingencies Confirmed letters of credit 167,301 29,466 20,015 — — 216,782 216,782 Stand-by letters of credit and guarantees 35,041 106,943 55,963 12,550 — 210,497 210,497 Credit commitments — — 4,286 133,333 — 137,619 137,619 Total 202,342 136,409 80,264 145,883 — 564,898 564,898 Net position (462,267) 649,081 479,959 (951,159) 1,132,542 848,156 466,413 December 31, 2019 Up to 3 3 to 6 6 months to More than Gross inflows Carrying Description months months 1 year 1 to 5 years 5 years (outflows) amount Assets Cash and due from banks 1,178,288 — — — — 1,178,288 1,178,170 Securities and other financial assets, net 16,684 6,457 7,293 54,544 6,492 91,470 88,794 Loans, net 1,960,381 967,594 1,207,469 1,822,519 150,742 6,108,705 5,823,333 Derivative financial instruments - assets — 625 — 10,532 — 11,157 11,157 Total 3,155,353 974,676 1,214,762 1,887,595 157,234 7,389,620 7,101,454 Liabilities Deposits (2,574,180) (198,786) (122,680) — — (2,895,646) (2,893,555) Securities sold under repurchase agreements (40,691) — — — — (40,691) (40,530) Borrowings and debt, net (1,407,612) (451,736) (230,776) (1,147,699) (13,422) (3,251,245) (3,148,864) Derivative financial instruments - liabilities (2,425) (775) (1,711) (12,014) — (16,925) (14,675) Total (4,024,908) (651,297) (355,167) (1,159,713) (13,422) (6,204,507) (6,097,624) Contingencies Confirmed letters of credit 84,235 77,493 7,592 — — 169,320 169,320 Stand-by letters of credit and guarantees 35,906 95,440 114,078 10,057 — 255,481 255,481 Credit commitments — — — 68,571 — 68,571 68,571 Total 120,141 172,933 121,670 78,628 — 493,372 493,372 Net position (989,696) 150,446 737,925 649,254 143,812 691,741 510,458 |
Schedule of liquidity reserves | December 31, December 31, 2020 2019 Amount Fair Value Amount Fair Value Balances with Central Banks 688,612 688,612 1,129,016 1,129,016 Cash and balances with other bank (1) 157,396 157,396 30,702 30,702 Total Liquidity reserves 846,008 846,008 1,159,718 1,159,718 |
Schedule of financial assets available to support future funding | December 31, 2020 Guaranteed Available as collateral Cash and due from banks 17,804 846,008 Notional of investment securities 11,450 371,900 Loans at amortized cost — 4,911,397 Total assets 29,254 6,129,305 December 31, 2019 Guaranteed Available as collateral Cash and due from banks 18,452 1,159,718 Notional of investment securities 40,531 38,045 Loans at amortized cost — 5,823,333 Total assets 58,983 7,021,096 |
Schedule of Bank's interest rate gap position | i. The following is a summary of the Bank’s interest rate gap position for the financial assets and liabilities based on their next repricing date: December 31, 2020 Up to 3 3 to 6 6 months to More than Non interest Description months months 1 year 1 to 5 years 5 years rate risk Total Assets Demand deposits and time deposits 859,481 — — — — 4,331 863,812 Securities and other financial assets 9,554 9,139 55,960 320,769 — — 395,422 Loans 3,468,477 895,794 434,813 117,262 — — 4,916,346 Total assets 4,337,512 904,933 490,773 438,031 — 4,331 6,175,580 Liabilities Demand deposits and time deposits (2,675,867) (166,317) (290,000) (6,500) — (216) (3,138,900) Securities sold under repurchase agreements — (5,728) (4,935) — — — (10,663) Borrowings and debt (1,103,703) (45,859) (16,511) (794,522) (24,475) — (1,985,070) Total liabilities (3,779,570) (217,904) (311,446) (801,022) (24,475) (216) (5,134,633) Net effect of derivative financial instruments held for interest risk management (3) (373) 58 15,982 839 — 16,503 Total interest rate sensitivity 557,939 686,656 179,385 (347,009) (23,636) 4,115 1,057,450 December 31, 2019 Up to 3 3 to 6 6 months to More than Non interest Description months months 1 year 1 to 5 years 5 years rate risk Total Assets Demand deposits and time deposits 1,170,092 — — — — — 1,170,092 Securities and other financial assets 14,935 6,351 5,055 53,300 — — 79,641 Loans 4,031,432 1,096,355 548,028 208,443 8,739 — 5,892,997 Total assets 5,216,459 1,102,706 553,083 261,743 8,739 — 7,142,730 Liabilities Demand deposits and time deposits (2,570,324) (197,300) (120,419) — — (293) (2,888,336) Securities sold under repurchase agreements (40,530) — — — — — (40,530) Borrowings and debt (2,534,382) (401,432) (25,261) (157,321) — (19,914) (3,138,310) Total liabilities (5,145,236) (598,732) (145,680) (157,321) — (20,207) (6,067,176) Net effect of derivative financial instruments held for interest risk management (2,425) (150) (1,711) (1,482) — — (5,768) Total interest rate sensitivity 68,798 503,824 405,692 102,940 8,739 (20,207) 1,069,786 |
Derivative financial instruments used for hedging | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of offsetting financial assets and liabilities | December 31, 2020 Gross amounts Net amount of offset in the assets presented Gross amounts not offset in the consolidated in the consolidated statement of Gross statement of consolidated financial position amounts of financial statement of Financial Cash collateral Description assets position financial position instruments received Net Amount Derivative financial instruments used for hedging 27,778 — 27,778 — (24,720) 3,058 Total 27,778 — 27,778 — (24,720) 3,058 December 31, 2019 Gross amounts Net amount of offset in the assets presented Gross amounts not offset in the consolidated in the consolidated statement of Gross statement of consolidated financial position amounts of financial statement of Financial Cash collateral Description assets position financial position instruments received Net Amount Derivative financial instruments used for hedging 11,157 — 11,157 — (9,350) 1,807 Total 11,157 — 11,157 — (9,350) 1,807 |
Securities sold under repurchase agreements | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of offsetting financial assets and liabilities | December 31, 2020 Net amount of Gross amounts liabilities Gross amounts not offset in offset in the presented the consolidated statement of consolidated in the financial position Gross statement of consolidated Cash Description amounts of financial statement of Financial collateral Net liabilities position financial position instruments pledged Amount Securities sold under repurchase agreements (10,663) — (10,663) 11,998 18 1,353 Derivative financial instruments used for hedging (9,211) — (9,211) — 7,786 (1,425) Total (19,874) — (19,874) 11,998 7,804 (72) December 31, 2019 Net amount of Gross amounts liabilities Gross amounts not offset in offset in the presented the consolidated statement of consolidated in the financial position Gross statement of consolidated Cash Description amounts of financial statement of Financial collateral Net liabilities position financial position instruments pledged Amount Securities sold under repurchase agreements (40,530) — (40,530) 41,937 320 1,727 Derivative financial instruments used for hedging (14,675) — (14,675) — 14,632 (43) Total (55,205) — (55,205) 41,937 14,952 1,684 |
Securities at amortized cost | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of credit risk exposure | December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 108,505 — — 108,505 Grades 5 - 6 0.75 - 3.95 50,562 5,007 — 55,569 159,067 5,007 — 164,074 Loss allowance (462) (33) — (495) Total 158,605 4,974 — 163,579 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 73,047 — — 73,047 Grades 5 - 6 0.75 - 3.95 — 1,500 — 1,500 73,047 1,500 — 74,547 Loss allowance (103) (10) — (113) Total 72,944 1,490 — 74,434 |
Schedule of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 103 10 — 113 Transfer to lifetime expected credit losses (10) 10 — — Net effect of changes in allowance for expected credit losses 15 23 — 38 Financial instruments that have been derecognized during the year (76) (10) — (86) New financial assets originated or purchased 430 — — 430 Allowance for expected credit losses as of December 31, 2020 462 33 — 495 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 113 27 — 140 Net effect of changes in allowance for expected credit losses (1) (17) — (18) Financial instruments that have been derecognized during the year (46) — — (46) New financial assets originated or purchased 37 — — 37 Allowance for expected credit losses as of December 31, 2019 103 10 — 113 |
Securities at FVOCI | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of credit risk exposure | December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 231,348 — — 231,348 231,348 — — 231,348 Loss allowance (43) — — (43) Total 231,305 — — 231,305 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 - 4 0.03 - 0.74 5,094 — — 5,094 5,094 — — 5,094 Loss allowance — — — — Total 5,094 — — 5,094 |
Schedule of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 — — — — Financial instruments that have been derecognized during the year 43 — — 43 Allowance for expected credit losses as of December 31, 2020 43 — — 43 Securities at fair value through other comprehensive income (FVOCI) Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 33 140 — 173 Financial instruments that have been derecognized during the year (33) (140) — (173) Allowance for expected credit losses as of December 31, 2019 — — — — |
Loans at amortized cost | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of credit risk exposure | December 31, 2020 PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 - 4 0.03 - 0.74 2,582,794 — — 2,582,794 Grades 5 - 6 0.75 - 3.95 1,928,142 167,996 — 2,096,138 Grades 7 - 8 3.96 - 30.67 102,532 119,340 10,593 232,465 Grades 9 - 10 30.68 - 100 — — — — 4,613,468 287,336 10,593 4,911,397 Loss allowance (16,661) (19,916) (4,588) (41,165) Total 4,596,807 267,420 6,005 4,870,232 December 31, 2019 PD Ranges Stage 1 Stage 2 Stage 3 Total Grades 1 – 4 0.03 - 0.74 2,928,401 — — 2,928,401 Grades 5 - 6 0.75 - 3.95 2,330,150 85,173 — 2,415,323 Grades 7 - 8 3.96 - 30.67 343,606 143,822 — 487,428 Grades 9 - 10 30.68 - 100 — — 61,845 61,845 5,602,157 228,995 61,845 5,892,997 Loss allowance (28,892) (15,842) (54,573) (99,307) Total 5,573,265 213,153 7,272 5,793,690 |
Schedule of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 28,892 15,842 54,573 99,307 Transfer to lifetime expected credit losses (886) 886 — — Transfer to credit-impaired financial instruments — (2,100) 2,100 — Net effect of changes in allowance for expected credit losses 134 13,443 (118) 13,459 Financial instruments that have been derecognized during the year (24,307) (3,729) — (28,036) New financial assets originated or purchased 12,828 — — 12,828 Write-offs — (4,426) (52,106) (56,532) Recoveries — — 139 139 Allowance for expected credit losses as of December 31, 2020 16,661 19,916 4,588 41,165 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 34,957 16,389 49,439 100,785 Transfer to lifetime expected credit losses (2,488) 2,488 — — Net effect of changes in allowance for expected credit losses (2,154) 5,881 7,987 11,714 Financial instruments that have been derecognized during the year (27,118) (8,916) (500) (36,534) New financial assets originated or purchased 25,695 — — 25,695 Write-offs — — (2,405) (2,405) Recoveries — — 52 52 Allowance for expected credit losses as of December 31, 2019 28,892 15,842 54,573 99,307 |
Loan commitments and financial guarantees contracts | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of credit risk exposure | December 31, 2020 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Commitments and contingencies Grades 1 - 4 0.03 - 0.74 245,927 — — 245,927 Grades 5 - 6 0.75 - 3.95 198,638 38,446 — 237,084 Grades 7 - 8 3.96 - 30.67 81,887 — — 81,887 526,452 38,446 — 564,898 Customers' liabilities under acceptances Grades 1 - 4 0.03 - 0.74 1,498 — — 1,498 Grades 5 - 6 0.75 - 3.95 723 — — 723 Grades 7 - 8 3.96 - 30.67 72,145 — — 72,145 74,366 — — 74,366 600,818 38,446 — 639,264 Loss allowance (2,426) (478) — (2,904) Total 598,392 37,968 — 636,360 December 31, 2019 12-month PD Ranges Stage 1 Stage 2 Stage 3 Total Commitments and contingencies Grades 1 - 4 0.03 - 0.74 153,874 — — 153,874 Grades 5 - 6 0.75 - 3.95 150,631 27,446 — 178,077 Grades 7 - 8 4.13 - 30.43 161,421 — — 161,421 465,926 27,446 — 493,372 Customers' liabilities under acceptances Grades 1 - 4 0.03 - 0.74 13,367 — — 13,367 Grades 5 - 6 0.75 - 3.95 5,491 — — 5,491 Grades 7 - 8 4.13 - 30.43 96,824 — — 96,824 115,682 — — 115,682 581,608 27,446 — 609,054 Loss allowance (2,683) (361) — (3,044) Total 578,925 27,085 — 606,010 |
Schedule of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2019 2,683 361 — 3,044 Transfer to lifetime expected credit losses (96) 96 — — Net effect of changes in reserve for expected credit losses 37 42 — 79 Financial instruments that have been derecognized during the year (1,864) (21) — (1,885) New instruments originated or purchased 1,666 — — 1,666 Allowance for expected credit losses as of December 31, 2020 2,426 478 — 2,904 Stage 1 Stage 2 Stage 3 Total Allowance for expected credit losses as of December 31, 2018 3,089 200 — 3,289 Net effect of changes in reserve for expected credit losses (17) 170 — 153 Financial instruments that have been derecognized during the year (2,497) (9) — (2,506) New instruments originated or purchased 2,108 — — 2,108 Allowance for expected credit losses as of December 31, 2019 2,683 361 — 3,044 |
Foreign exchange risk | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Schedule of sensitivity analysis of fair value due to change in interest rate. | Change in Effect on Effect on interest rate profit or loss equity December 31, 2020 +50 bps 1,182 16,618 -50 bps (5,161) 107 December 31, 2019 +50 bps 3,064 7,461 -50 bps (3,064) (7,461) |
Schedule of risk arising from financial instruments | December 31, 2020 Brazilian European Japanese Colombian Mexican Other Real Euro Yen Peso Peso Currencies (1) Total Exchance rate 5.19 1.22 103.23 3,430.19 19.92 Assets Cash and due from banks 81 13 1 20 1,615 80 1,810 Loans — — — — 182,395 — 182,395 Total Assets 81 13 1 20 184,010 80 184,205 Liabilities Borrowings and debt — — — — (183,863) — (183,863) Total liabilities — — — — (183,863) — (183,863) Net currency position 81 13 1 20 147 80 342 (1) It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Peruvian soles, and Chinese renminbi. December 31, 2019 Brazilian European Japanese Colombian Mexican Other Total Real Euro Yen Peso Peso Currencies (1) Exchance rate 4.02 1.12 108.67 3,287.50 18.88 Assets Cash and due from banks 274 17 4 34 4,243 58 4,630 Loans — — — — 473,729 — 473,729 Total Assets 274 17 4 34 477,972 58 478,359 Liabilities Borrowings and debt — — — — (478,038) — (478,038) Total liabilities — — — — (478,038) — (478,038) Net currency position 274 17 4 34 (66) 58 321 (1) It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Peruvian soles, and Chinese renminbi. |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair value of financial instruments | |
Schedule of financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy | Financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy are described below: December 31, 2020 Level 1 Level 2 Level 3 Total Assets Securities and other financial assets: Securities at FVOCI - Corporate debt — 226,235 — 226,235 Securities at FVOCI - Sovereign debt — 5,113 — 5,113 Loans at fair value through profit or loss — — 4,949 4,949 Total securities and other financial assets — 231,348 4,949 236,297 Derivative financial instruments - assets: Interest rate swaps — 1,831 — 1,831 Cross-currency swaps — 25,947 — 25,947 Foreign exchange forwards — — — — Total derivative financial instrument assets — 27,778 — 27,778 Total assets at fair value — 259,126 4,949 264,075 Liabilities Derivative financial instruments - liabilities: Interest rate swaps — 1,774 — 1,774 Cross-currency swaps — 3,848 — 3,848 Foreign exchange forwards — 3,589 — 3,589 Total derivative financial instruments - liabilities — 9,211 — 9,211 Total liabilities at fair value — 9,211 — 9,211 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Securities and other financial assets: Securities at FVOCI - Sovereign debt — 5,094 — 5,094 Equity instrument at FVOCI — 1,889 — 1,889 Debt instruments at fair value through profit or loss — — 6,492 6,492 Total securities and other financial assets — 6,983 6,492 13,475 Derivative financial instruments - assets: Interest rate swaps — 407 — 407 Cross-currency swaps — 10,125 — 10,125 Foreign exchange forwards — 625 — 625 Total derivative financial instrument assets — 11,157 — 11,157 Total assets at fair value — 18,140 6,492 24,632 Liabilities Derivative financial instruments - liabilities: Interest rate swaps — 1,903 — 1,903 Cross-currency swaps — 10,197 — 10,197 Foreign exchange forwards — 2,575 — 2,575 Total derivative financial instruments - liabilities — 14,675 — 14,675 Total liabilities at fair value — 14,675 — 14,675 |
Schedule of carrying value and an estimated fair value of the bank's financial instruments that are not measured on a recurring basis | The following table provides information on the carrying value and the estimated fair value of the Bank’s financial instruments that are not measured on a recurring basis: December 31, 2020 Carrying Fair value value Level 1 Level 2 Level 3 Assets Cash and deposits on banks 863,812 863,812 — 863,812 — Securities at amortized cost (1) 165,564 168,110 — 157,698 10,412 Loans at amortized cost, net (2) 4,891,698 4,972,599 — 4,972,599 — Customers' liabilities under acceptances 74,366 74,366 — 74,366 — Investment properties 3,214 3,214 — — 3,214 Liabilities Deposits 3,140,875 3,140,875 — 3,140,875 — Securities sold under repurchase agreements 10,663 10,663 — 10,663 — Borrowings and debt, net (3) 1,966,271 1,989,719 — 1,989,719 — Customers' liabilities under acceptances 74,366 74,366 — 74,366 — December 31, 2019 Carrying Fair value value Level 1 Level 2 Level 3 Assets Cash and deposits on banks 1,178,170 1,178,170 — 1,178,170 — Securities at amortized cost (1) 75,271 75,724 — 56,914 18,810 Loans at amortized cost, net (2) 5,823,333 6,162,885 — 6,101,040 61,845 Customers’ liabilities under acceptances 115,682 115,682 — 115,682 — Investment properties 3,494 3,494 — — 3,494 Liabilities Deposits 2,893,555 2,893,555 — 2,893,555 — Securities sold under repurchase agreements 40,530 40,530 — 40,530 — Borrowings and debt, net 3,118,396 3,126,333 — 3,126,333 — Customers’ liabilities under acceptances 115,682 115,682 — 115,682 — (1) The carrying value of securities at amortized cost is net of accrued interest receivable of $1.9 million and the allowance for expected credit losses of $0.4 million as of December 31, 2020 (accrued interest receivable of $0.8 million and the allowance for expected credit losses of $0.1 million as of December 31, 2019). (2) The carrying value of loans at amortized cost is net of accrued interest receivable of $27.3 million, the allowance for expected credit losses of $41.1 million and unearned interest and deferred fees of $5.8 million for December 31, 2020 (accrued interest receivable of $41.7 million, the allowance for expected credit losses of $99.3 million and unearned interest and deferred fees of $12.1 million for December 31, 2019). (3) Borrowings and debt exclude lease liabilities for an amount of $18.7 million and $19.9 million as of December 31, 2020 and December 31, 2019, respectively. |
Schedule of movement of instruments measured at level 3 fair value | The following table presents the movement of a level 3 financial instruments measured at fair value: Debt instruments at fair value through Loans at fair value profit or loss through profit or ( debentures ) loss Total At December 31, 2018 — — — Additions 8,750 — 8,750 Net changes in fair value (2,258) — (2,258) Sales — — — At December 31, 2019 6,492 — 6,492 Additions 1,433 5,750 7,183 Net changes in fair value (2,175) (801) (2,976) Sales (5,750) — (5,750) At December 31, 2020 — 4,949 4,949 |
Schedule of significant inputs used in the measurement of instruments at level 3 fair value | Inputs used in the fair value measurement are detailed as follows: Observable inputs Unobservable inputs - Forward interest rate referenced to 12M USD Libor - Discount rate or discount margin of floating rate bond "USD US composite B+" with credit risk similar to the instrument analyzed adjusted by the country risk premium. Fair value measurement sensitivity to unobservable inputs – discount rate 2020 A significant increase in volatility would result in a lower fair value 3.128% to 8.89 % The significant inputs used in determining the fair value of instruments categorized as level 3, using present value techniques, are as follows: 2020 2019 Unobservable inputs Unobservable inputs - Discount rate based on the return from CCC Corporate S&P Bond Index - Discount rate for similar companies of the same business line adjusted due to the debt-equity structure of the issuer - Probability of occurrence of the flows of each sale or conversion scenario Observable inputs - Average recovery factor for companies that reported default - Moody's Range of estimates Fair value measurement sensitivity to unobservable inputs – discount rate 2020 2019 A significant increase in volatility would result in a lower fair value 10.00% to 20.00% 12.97% to 27.50% |
Schedule of changing one or more assumptions used can generate the following effect | For fair value measurements in level 3, changing one or more of the assumptions used would have the following effects. Effect on Loans at fair value through profit or loss profit or loss + 100 bps to the observable and unobservable inputs (149) - 100 bps to the observable and unobservable inputs |
Cash and due from banks (Tables
Cash and due from banks (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and due from banks | |
Schedule of cash and due from banks | December 31, December 31, 2020 2019 Cash and due from banks 4,331 8,078 Interest-bearing deposits in banks 859,481 1,170,092 Total 863,812 1,178,170 Less: Pledged deposits 17,804 18,452 Total cash and cash equivalents 846,008 1,159,718 |
Schedule of interest-bearing deposits in banks and pledged deposits and breakdown in banks and pledged deposits by country risk | 8. The following table presents the details of interest-bearing deposits in banks and pledged deposits: December 31, December 31, 2020 2019 Cash and due from banks 4,331 8,078 Interest-bearing deposits in banks 859,481 1,170,092 Total 863,812 1,178,170 Less: Pledged deposits 17,804 18,452 Total cash and cash equivalents 846,008 1,159,718 December 31, 2020 December 31, 2019 Interest rate Interest rate Amount range Amount range Interest-bearing deposits in banks: Demand deposits (1) 749,481 0.03% to 3.08% 1,150,092 1.55% to 5.10% Time deposits 110,000 — 20,000 — Total 859,481 1,170,092 Pledged deposits 17,804 18,452 (1) Interest-bearing demand deposits based on daily rates determined by banks. In addition, rates of 3.08% and 5.10% correspond to a deposit placed in México. December 31, December 31, 2020 2019 Country: United States of America (1) 11,515 5,645 Switzerland 3,027 9,567 Japan 1,330 1,470 Mexico 790 — Canada 610 — Netherlands 334 — United Kingdom 130 — France 50 1,770 Spain 18 — Total 17,804 18,452 (1) Includes pledged deposits of $10.0 million at December 31, 2020 and $3.5 million at December 31, 2019, with the New York State Banking Department under March 1994 legislation and deposits pledged to guarantee derivative financial instrument transactions. |
Securities and other financia_2
Securities and other financial assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Securities and other financial assets, net | |
Schedule of all securities and other financial assets | At fair value At December 31, 2020 With changes in other comprehensive income (loss) With Total securities and Recyclable to Non-recyclable to changes in other financial Carrying amount Amortized cost profit and loss profit and loss profit or loss assets, net Principal 164,074 231,348 — — 395,422 Interest receivable 1,985 1,156 — — 3,141 Reserves (1) (495) (43) — — (538) 165,564 232,461 — — 398,025 At fair value At December 31, 2019 With changes in other comprehensive income (loss) With Total securities and Recyclable to Non-recyclable to changes in other financial Carrying amount Amortized cost profit and loss profit and loss profit or loss assets, net Principal 74,547 5,094 1,889 6,492 88,022 Interest receivable 837 48 — — 885 Reserves (1) (113) — — — (113) 75,271 5,142 1,889 6,492 88,794 (1) The loss allowance for losses for securities at FVOCI is included in equity in the consolidated statement of financial position in the line Other comprehensive income. As December 31, 2020 and 2019 the principal plus interest receivable of securities at FVOCI is $232,504 and $5,142, respectively. |
Schedule of all securities and other financial assets by contractual maturity | At fair value At December 31, 2020 With changes in other comprehemsive income Recyclabe to Non-recyclable to With changes in Total securities and other Amortized cost profit ans loss profit and loss profit or loss financial assets, net Due within 1 year 40,625 34,027 — — 74,652 After 1 year but within 5 years 123,449 197,321 — — 320,770 After 5 years but within 10 years — — — — — Non maturity — — — — — Balance - principal 164,074 231,348 — — 395,422 At fair value At December 31, 2019 With changes in other comprehemsive income Recyclabe to Non-recyclable to With changes Total securities and other Amortized cost profit ans loss profit and loss in profit or loss financial assets, net Due within 1 year 28,295 — 1,889 — 30,184 After 1 year but within 5 years 46,252 5,094 — — 51,346 After 5 years but within 10 years — — — — — Non maturity — — — 6,492 6,492 Balance - principal 74,547 5,094 1,889 6,492 88,022 |
Schedule of securities pledge to secure repurchase transactions | December 31, 2020 December 31, 2019 Amortized Amortized cost Fair value Total cost Fair value Total Securities pledged to secure repurchase transactions 11,998 — 11,998 36,843 5,094 41,937 Securities sold under repurchase agreements (10,663) — (10,663) (35,647) (4,883) (40,530) |
Schedule of realized gains or losses on sale of securities | The following table presents the realized gains or losses on sale of securities at fair value through other comprehensive income: Year ended December 31 2019 2018 Realized gain on sale of securities 266 194 Realized loss on sale of securities (80) — Net gain on sale of securities at FVOCI 186 194 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Summary of loan portfolio according to classification and subsequent measurement | December 31, December 31, 2020 2019 Loans at amortized cost 4,911,397 5,892,997 Interest receivable 27,350 41,757 Loss allowances (41,165) (99,307) Unearned interest and deferred fees (5,884) (12,114) Loans at amortized cost, net 4,891,698 5,823,333 Loans at fair value through profit or loss (1) 4,949 — Loans, net 4,896,647 5,823,333 |
Schedule of fixed and floating interest rate distribution of the loan portfolio | The fixed and floating interest rate distribution of the loan portfolio is as follows: December 31, December 31, 2020 2019 Fixed interest rates 2,544,544 2,757,333 Floating interest rates 2,371,802 3,135,664 Total 4,916,346 5,892,997 |
Schedule of carrying amounts and gains arising from the derecognition of these financial instruments | The carrying amounts and gains arising from the derecognition of these financial instruments are presented in the following table. These gains are presented within the line “Loss on financial instruments, net” in the consolidated statement of profit or loss. Assignments and Gains participations (losses) Carrying amount as of December 31, 2019 15,000 21 Carrying amount as of December 31, 2018 61,667 (625) |
Summary of modified financial assets | December 31, 2020 Gross carrying amount before modification 8,829 Allowance loss before modification (1) (1,796) Net amortized cost before modification 7,033 Gross carrying amount after modification 8,829 Allowance loss after modification (2) (1,802) Net amortized cost after modification 7,027 (1) Expected credit loss for 12 months. (2) Expected credit loss within the life of the financial asset. |
Summary of information related to loans granted to shareholders | December 31, December 31, 2020 2019 Class A and B shareholder loans 522,316 664,447 % Loans to class A and B shareholders over total loan portfolio 11 % 11 % % Class A and B stockholders with loans over number of class A and B stockholders 12 % 11 % |
Loan commitments and financia_2
Loan commitments and financial guarantee contracts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loan commitments and financial guarantee contracts | |
Schedule of bank's outstanding loan commitments and financial guarantee contracts | The Bank’s outstanding loan commitments and financial guarantee contracts are as follows: December 31, December 31, 2020 2019 Documentary letters of credit 216,782 169,320 Stand-by letters of credit and guarantees - commercial risk 210,497 255,481 Credit commitments 137,619 68,571 Total loans commitments and financial guarantee contracts 564,898 493,372 |
Schedule of remaining maturity profile of the bank's outstanding loan commitments and financial guarantee contracts | The remaining maturity profile of the Bank’s outstanding loan commitments and financial guarantee contracts is as follows: December 31, December 31, Maturities 2020 2019 Up to 1 year 419,015 424,744 From 1 to 2 years 75,883 8,628 Over 2 to 5 years 70,000 60,000 Total 564,898 493,372 |
Gain (loss) on financial inst_2
Gain (loss) on financial instruments, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gain (loss) on financial instruments, net | |
Schedule of gain or loss on financial instrument recognized in the consolidated statements of profit or loss | The following table sets forth the details for the gain or loss on financial instruments recognized in the consolidated statements of profit or loss: December 31 2020 2019 2018 Gain (loss) on derivative financial instruments and foreign currency exchange, net (1,813) 672 (1,226) (Loss) gain on financial instruments at fair value through profit or loss (2,175) (2,258) 648 Unrealized loss on financial instruments at fair value through profit or loss (806) — — Realized gain on sale of securities at fair value through OCI — 186 194 Gain (loss) on sale of loans — 21 (625) (4,794) (1,379) (1,009) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of quantitative information on the notional and carrying amounts of derivative financial instruments used to hedge foreign exchange risk | December 31, 2020 Carrying amount of hedging instruments Nominal amount Asset (1) Liability (2) Interest rate risk Fair value hedges 85,667 1,831 (233) Cash flow hedges 60,000 — (1,541) Interest rate and foreign exchange risk Fair value hedges 344,489 2,856 (3,848) Cash flow hedges 221,508 23,091 — Foreign exchange risk Cash flow hedges 71,353 — (3,589) 783,017 27,778 (9,211) December 31, 2019 Carrying amount of hedging instruments Nominal amount Asset (1) Liability (2) Interest rate risk Fair value hedges 398,333 407 (805) Cash flow hedges 123,000 — (1,098) Interest rate and foreign exchange risk Fair value hedges 346,844 10,125 (8,527) Cash flow hedges 23,025 — (1,670) Foreign exchange risk Cash flow hedges 72,391 625 (2,552) Net investment hedges 2,080 — (23) 965,673 11,157 (14,675) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. |
Fair value hedges | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of notional amounts and carrying amounts of derivative instruments | December 31, 2020 Changes in fair value Carrying amount of used to calculate Ineffectiveness Nominal hedging instruments hedge recognized in amount Asset (1) Liability (2) ineffectiveness (3) profit or loss (3) Interest rate risk Loans 10,667 — (132) 84 1 Securities at FVOCI 5,000 — (101) (29) (20) Borrowings and debt 70,000 1,831 — 199 (27) Interest rate and foreign exchange risk Loans 4,075 356 — 178 (149) Borrowings and debt 340,414 2,500 (3,848) (2,524) (468) Total 430,156 4,687 (4,081) (2,092) (663) December 31, 2019 Changes in fair value Carrying amount of used to calculate Ineffectiveness Nominal hedging instruments hedge recognized in amount Asset (1) Liability (2) ineffectiveness (3) profit or loss (3) Interest rate risk Loans 13,333 — (166) (127) (9) Securities at FVOCI 5,000 — (45) (97) (17) Borrowings and debt 380,000 407 (594) 5,203 (65) Interest rate and foreign exchange risk Loans 6,430 276 — (482) (214) Borrowings and debt 340,414 9,849 (8,527) 7,234 55 Total 745,177 10,532 (9,332) 11,731 (250) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Schedule of gains and losses resulting from activities of hedging derivative financial instruments recognized in the consolidated statements of profit or loss | December 31, 2020 Accumulated amount Change in fair of fair value hedge value of the hedged Carrying amount of Line in the consolidated statement of adjustments included items used to hedged items financial position that includes the in the carrying amount calculate hedge Asset Liability carrying amount of the hedged items of the hedged items ineffectiveness (1) Interest rate risk Loans 10,837 — Loans, net 74 (83) Securities at FVOCI 5,113 — Securities and other financial assets, net 85 9 Borrowings and debt — (71,937) Borrowings and debt, net (292) (226) Interest rate and foreign exchange risk — Loans 3,789 — (654) (327) Borrowings and debt — (339,688) Borrowings and debt, net 1,083 2,056 Total 19,739 (411,625) 296 1,429 December 31, 2019 Accumulated amount Change in fair of fair value hedge value of the hedged Carrying amount of Line in the consolidated statement of adjustments included items used to hedged items financial position that includes the in the carrying amount calculate hedge Asset Liability carrying amount of the hedged items of the hedged items ineffectiveness (1) Interest rate risk Loans 13,583 — Loans, net 158 118 Securities at FVOCI 5,142 — Securities and other financial assets, net 94 80 Borrowings and debt — (381,587) Borrowings and debt, net 18 (5,268) Interest rate and foreign exchange risk Loans 6,202 — Loans, net (495) 268 Borrowings and debt — (336,117) Borrowings and debt, net (973) (7,179) Total 24,927 (717,704) (1,198) (11,981) (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Schedule of maturity of financial instruments | December 31, 2020 Foreign exchange and Interest rate interest Maturity swaps rate risks Total Fair value hedge Less than 1 year 85,667 — 85,667 Over 1 to 2 years — 271,646 271,646 Over 2 to 5 years — 72,843 72,843 Total 85,667 344,489 430,156 December 31, 2019 Foreign exchange and Interest rate interest Maturity swaps rate risks Total Fair value hedge Less than 1 year 350,000 — 350,000 Over 1 to 2 years 48,333 — 48,333 Over 2 to 5 years — 346,844 346,844 Total 398,333 346,844 745,177 |
Cash flow hedges | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of notional amounts and carrying amounts of derivative instruments | December 31, 2020 Change in fair Changes in the Amount Carrying amount of value used for fair value of the Ineffectiveness reclassified hedging instruments calculating hedging instruments recognized from the hedge Nominal hedge recognized in in profit or reserve to profit amount Asset (1) Liability (2) ineffectiveness OCI (3) loss (4) or loss (4) Interest rate risk Borrowings and debt 60,000 — (1,541) (443) (442) 1 (75) Interest rate and foreign exchange risk Borrowings and debt 221,508 23,091 — 23,380 23,481 101 (1,697) Foreign exchange risk Loans 71,353 — (3,589) (3,466) (3,465) 1 (1,927) Total 352,861 23,091 (5,130) 19,471 19,574 103 (3,699) December 31, 2019 Changes in the Change in fair fair value of the Amount value used for hedging reclassified Carrying amount of calculating instruments Ineffectiveness from the hedge Nominal hedging instruments hedge recognized in recognized in reserve to amount Asset (1) Liability (2) ineffectiveness OCI (3) profit or loss (4) profit or loss (4) Interest rate risk Borrowings and debt 123,000 — (1,098) (1,459) (1,458) 1 39 Interest rate and foreign exchange risk Borrowings and debt 23,025 — (1,670) (284) (283) 1 — Foreign exchange risk Loans 72,391 625 (2,552) (2,346) (2,344) 2 (1,070) Borrowings and debt — — — — — — (5,545) Total 218,416 625 (5,320) (4,089) (4,085) 4 (6,576) (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in equity in the consolidated statement of financial position under the line Other comprehensive income. (4) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Schedule of agreements qualifying as fair value hedge, the bank recognized the gain or loss on the derivative financial instruments and the gain or loss of the hedged asset or liability in profit or loss | December 31, 2020 Line in the consolidated statement of financial Change in the fair value of Carrying amount of position that includes the the hedged items used to hedged items carrying amount of to calculate the hedge Cash flow hedge Asset Liability the hedged items ineffectiveness (1) reserve Interest rate risk Borrowings and debt — (20,045) Borrowings and debt, net 442 1,440 Interest rate and foreign exchange risk Borrowings and debt — (243,817) Borrowings and debt, net (23,481) (1,980) Foreign exchange risk Loans 74,509 — Loans, net 3,465 562 Total 74,509 (263,862) (19,574) 22 (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. December 31, 2019 Line in the consolidated statement of financial Change in the fair value of Carrying amount of position that includes the the hedged items used to hedged items carrying amount of calculate the hedge Cash flow hedge Asset Liability the hedged items ineffectiveness (1) reserve Interest rate risk Borrowings and debt — (70,110) Borrowings and debt, net 1,458 1,072 Interest rate and foreign exchange risk Borrowings and debt — (21,234) Borrowings and debt, net 283 (5) Foreign exchange risk Loans 73,861 — Loans, net 2,344 263 Total 73,861 (91,344) 4,085 1,330 (1) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Schedule of maturity of financial instruments | December 31, 2020 Foreign exchange and Foreign Interest rate interest Maturity exchange risk swaps rate risks Total Cash flow hedge Less than 1 year 71,353 40,000 — 111,353 Over 2 to 5 years — 20,000 197,854 217,854 More than 5 years — — 23,654 23,654 Total 71,353 60,000 221,508 352,861 December 31, 2019 Foreign exchange and Foreign Interest rate interest Maturity exchange risk swaps rate risks Total Cash flow hedge Less than 1 year 72,391 63,000 23,025 158,416 Over 1 to 2 years — 40,000 — 40,000 Over 2 to 5 years — 20,000 — 20,000 Total 72,391 123,000 23,025 218,416 |
Foreign exchange forwards | |
Disclosure of detailed information about hedging instruments [line items] | |
Schedule of notional amounts and carrying amounts of derivative instruments | The following table details the notional amount and carrying amount of the derivative instruments used as net investment hedge at December 31, 2019 by type of risk and hedged item, along with changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2019 Changes in the fair value of the Amount Change in fair hedging reclassified from Carrying amount of value used for instruments Ineffectiveness the hedge reserve Nominal hedging instruments calculating hedge recognized in recognized in to profit or amount Asset (1) Liability (2) ineffectiveness OCI (3) profit or loss (4) loss (4) Foreign exchange risk Net investment 2,080 — (23) (23) (23) — (78) Total 2,080 — (23) (23) (23) — (78) Derivative instruments used in net investment hedges at December 31, 2019 have a maturity of less than 30 days. (1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets. (2) Included in the consolidated statement of financial position under the line Derivative financial instruments - liabilities. (3) Included in equity in the consolidated statement of financial position under the line Other comprehensive income. (4) Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. The following table details the nominal value and carrying amount of the net investment hedged items at December 31, 2019, along with changes during the period used to determine and recognize the ineffectiveness of the hedge: December 31, 2019 Change in the fair Line in the value of consolidated the statement of hedged financial position items used Carrying amount of that includes the to calculate Cash flow hedged items carrying amount of the hedged hedge Asset Liability the hedged items ineffectiveness (1) reserve Foreign exchange risk Net investment 1,889 — Securities and other financial assets, net 23 23 Total 1,889 — 23 23 Included in the consolidated statement of profit or loss under the line Loss on financial instruments, net. |
Gain (loss) on non - financia_2
Gain (loss) on non - financial assets, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gain (loss) on non - financial assets, net | |
Schedule of impairment losses on non-financial assets | The gain or loss on non-financial assets is presented as follows: December 31, 2020 2019 2018 Gain on sale of investment property — 500 — Unrealized gain on investment property 296 — — Impairment loss on other assets — — (3,464) Impairment loss on investment property — — (3,849) Write off on intangible assets — — (2,705) 296 500 (10,018) |
Equipment and leasehold impro_2
Equipment and leasehold improvements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equipment and leasehold improvements | |
Summary of items include in equipment and leasehold improvement | The following table provides a summary of the items included in equipment and leasehold improvement: December 31, December 31, 2020 2019 Equipment and leasehold improvements, net 4,990 6,230 Right-of-use assets 11,223 12,522 16,213 18,752 |
Schedule of breakdown of cost, accumulated depreciation, additions and disposals of equipment and leasehold improvements | A breakdown of cost, accumulated depreciation, additions and disposals of equipment and leasehold improvements is as follows: Furniture and Leasehold Other IT equipment fixtures improvements equipment Total Cost: Balance as of January 1, 2018 4,170 1,984 6,810 2,505 15,469 Additions 411 12 111 69 603 Disposals (253) (97) (80) (62) (492) Reclassifications 10 — — — — Balance as of December 31, 2018 4,338 1,899 6,841 2,512 15,590 Additions 683 36 185 124 1,028 Disposals (63) (102) (176) (33) (374) Effect of changes in exchange rates (53) (62) (47) (14) (176) Balance as of December 31, 2019 4,905 1,771 6,803 2,589 16,068 Additions 293 1 671 32 997 Disposals (1,045) (84) (26) (48) (1,203) Effect of changes in exchange rates (17) (11) (20) (1) (49) Balance as of December 31, 2020 4,136 1,677 7,428 2,572 15,813 Accumulated depreciation: Balance as of January 1, 2018 2,870 1,740 2,648 791 8,049 Amortization 516 64 480 222 1,282 Disposals (159) (89) (127) (94) (469) Reclassifications 42 — — — 42 Balance as of December 31, 2018 3,269 1,715 3,001 919 8,904 Amortization 584 62 508 260 1,414 Disposals (59) (97) (175) (21) (352) Effect of changes in exchange rates (40) (53) (35) — (128) Balance as of December 31, 2019 3,754 1,627 3,299 1,158 9,838 Amortization 643 63 553 920 2,179 Disposals (1,043) (82) (8) (40) (1,173) Effect of changes in exchange rates (14) (7) (14) 14 (21) Balance as of December 31, 2020 3,340 1,601 3,830 2,052 10,823 Carrying amounts as of: December 31, 2020 796 76 3,598 520 4,990 December 31, 2019 1,151 144 3,504 1,431 6,230 December 31, 2018 1,069 184 3,840 1,593 6,686 |
Schedule of movement of right-of-use assets on the leases | The following is the detail of the movement of right-of-use assets on the leases for which the Bank is a lessee: Building December 31, December 31, 2020 2019 Initial balance 12,522 17,435 Additions 68 14 Depreciation of right-of-use assets (1,128) (1,440) Effect of changes in exchange rates (34) 7 Reclassification to investment property — (3,494) Decrease (205) — Ending balance 11,223 12,522 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Schedule of breakdown of software cost, accumulated amortization, additions, sales and disposals for intangible assets | A breakdown of software cost, accumulated amortization, additions, sales and disposals of intangible assets is as follows: Costs: Balance as of January 1, 2018 17,172 Additions 58 Disposals (3,315) Reclassifications (10) Balance as of December 31, 2018 13,905 Additions 496 Balance as of December 31, 2019 14,401 Additions 1,311 Disposals (1) Balance as of December 31, 2020 15,711 Accumulated amortization: Balance as of January 1, 2018 11,747 Amortization 1,176 Disposals (609) Reclassifications (42) Balance as of December 31, 2018 12,272 Amortization 702 Balance as of December 31, 2019 12,974 Amortization 753 Balance as of December 31, 2020 13,727 Carrying amounts as of: December 31, 2020 1,984 December 31, 2019 1,427 December 31, 2018 1,633 |
Investment properties (Tables)
Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment properties | |
Schedule of movement of investment properties | Investment properties - right of use Balance as of December 31, 2019 3,494 Amortization (280) Balance as of December 31, 2020 3,214 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other assets | |
Schedule of other assets | December 31, December 31, 2020 2019 Accounts receivable 938 3,549 Prepaid expenses 2,541 1,070 Prepaid fees and commissions 486 1,110 Interest receivable - deposits 8 26 IT projects under development 218 521 Severance fund 1,927 1,863 Other 698 718 6,816 8,857 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits | |
Schedule of maturity profile of the bank's deposits, excluding interest payable | The maturity profile of the Bank’s deposits, excluding interest payable, as follows: December 31, December 31, 2020 2019 Demand 170,660 85,786 Up to 1 month 1,127,120 1,285,949 From 1 month to 3 months 878,900 628,981 From 3 months to 6 months 544,860 593,431 From 6 months to 1 year 365,879 289,189 From 1 year to 2 years 51,481 5,000 3,138,900 2,888,336 |
Schedule of additional information regarding the bank's deposits | The following table presents additional information regarding the Bank’s deposits December 31, December 31, 2020 2019 Aggregate amounts of $100,000 or more 3,138,684 2,888,043 Aggregate amounts of deposits in the New York Agency 657,851 240,003 December 31, 2020 2019 2018 Interest expense on deposits made in the New York Agency 5,035 6,277 5,937 |
Borrowings and debt (Tables)
Borrowings and debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings and debt | |
Schedule of borrowings and debt | Borrowings and debt are detailed as follows: December 31, 2020 Short-Term Long-term Carrying amount Borrowings Debt Lease Liabilities Borrowings Debt Lease Liabilities Total Principal 331,585 49,350 1,244 477,010 1,116,033 17,555 1,992,777 Prepaid commissions — — — (1,158) (6,549) — (7,707) 331,585 49,350 1,244 475,852 1,109,484 17,555 1,985,070 December 31, 2019 Short-Term Long-term Carrying amount Borrowings Debt Lease Liabilities Borrowings Debt Lease Liabilities Total Principal 1,573,663 22,000 1,145 723,419 802,676 18,769 3,141,672 Prepaid commissions — — — (1,456) (1,906) — (3,362) 1,573,663 22,000 1,145 721,963 800,770 18,769 3,138,310 |
Schedule of breakdown of short-term (original maturity of less than one year) borrowings and debt, along with contractual interest rates | The breakdown of short-term (original maturity of less than one year, excluding lease liabilities) borrowings and debt, along with contractual interest rates, is as follows: December 31, December 31, 2020 2019 Short-term borrowings: At fixed interest rates 55,000 607,500 At floating interest rates 276,585 966,163 Total borrowings 331,585 1,573,663 Short-term debt: At fixed interest rates — 22,000 At floating interest rates 49,350 — Total debt 49,350 22,000 Total short-term borrowings and debt 380,935 1,595,663 Range of fixed interest rates on borrowings and debt in U.S. dollars 0.45% to 1.40% 2.07% to 2.52% Range of floating interest rates on borrowings in U.S. dollars 0.47% to 1.65% 2.09% to 2.35% Range of fixed interest rates on borrowings in Mexican pesos Range of floating interest rates on borrowings and debt in Mexican pesos 4.97% to 5.05% 7.71% to 8.31% The outstanding balances of short-term borrowings and debt by currency, are as follows: December 31, December 31, 2020 2019 Currency US dollar 299,957 1,476,000 Mexican peso 80,978 119,663 Total 380,935 1,595,663 |
Schedule of breakdown of borrowings and long-term debt (original maturity of more than one year), along with contractual interest rates, plus prepaid commissions | The breakdown of borrowings and long-term debt (original maturity of more than one year, excluding lease liabilities), along with contractual interest rates, plus prepaid commissions as of December 31, 2020 and 2019, respectively, are as follows: December 31, December 31, 2020 2019 Long-term borrowings: At fixed interest rates with due dates from April 2021 to May 2022 68,190 65,435 At floating interest rates with due dates from June 2021 to August 2023 408,820 657,984 Total long-term borrowings 477,010 723,419 Long-term debt: At fixed interest rates with due dates from July 2021 to December 2027 784,006 502,880 At floating interest rates with due dates from March 2022 to June 2023 332,027 299,796 Total long-term debt 1,116,033 802,676 Total long-term borrowings and debt 1,593,043 1,526,095 Less: Prepaid commissions (7,707) (3,362) Total long-term borrowings and debt, net 1,585,336 1,522,733 Range of fixed interest rates on borrowings and debt in U.S. dollars 2.04% to 3.05% 2.56% to 3.25% Range of floating interest rates on borrowings and debt in U.S. dollars 1.16% to 1.85% 2.46% to 3.36% Range of fixed interest rates on borrowings in Mexican pesos 6.77% to 9.09% 5.73% to 9.09% Range of floating interest rates on borrowings and debt in Mexican pesos 4.87% to 5.74% 8.14% to 9.13% Range of fixed interest rates on debt in Japanese yens Range of fixed interest rates on debt in Euros 0.9% to 3.75% Range of fixed interest rates on debt in Australian dollars The balances of long-term borrowings and debt by currency, excluding prepaid commissions, are as follows: December 31, December 31, 2020 2019 Currency US dollar 910,296 1,097,611 Mexican peso 509,687 280,105 Euro 101,469 59,465 Japanese yen 71,591 67,831 Australian dollar — 21,083 Total 1,593,043 1,526,095 |
Schedule of future payments of long-term borrowings and debt outstanding | Future payments of long-term borrowings and debt outstanding as of December 31, 2020, are as follows (excluding lease liabilities): Payments Outstanding 2021 252,045 2022 525,175 2023 108,436 2024 64,757 2025 618,154 2026 12,238 2027 12,238 1,593,043 |
Schedule of reconciliation of movements of borrowings and debt arising financing activities explanatory | Reconciliation – Movements of borrowings The following table presents the reconciliation of movements of borrowings and debt arising from financing activities, as presented in the consolidated statements of cash flows: 2020 2019 2018 Balance as of January 1, 3,138,310 3,518,446 2,211,567 Net decrease (increase) in short-term borrowings and debt (1,212,023) (428,611) 950,259 Proceeds from long-term borrowings and debt 827,732 371,536 609,017 Repayments of long-term borrowings and debt (781,274) (368,843) (256,173) Payment of lease liabilities (1,114) (1,072) — Recognition of lease liabilities — 20,979 — Net Increase in lease liabilities 48 — — Change in foreign currency 15,853 20,044 1,903 Adjustment of fair value for hedge accounting relationship 826 4,943 753 Other adjustments (3,288) 888 1,120 Balance as of December 31, 1,985,070 3,138,310 3,518,446 |
Schedule of maturity analysis contractual undiscounted cash flows of the lease liability | Maturity analysis of contractual undiscounted cash flows of the lease liabilities is detailed below: December 31, December 31, 2020 2019 Due within 1 year 2,058 2,005 After 1 year but within 5 years 10,641 10,470 After 5 years but within 10 years 11,354 13,492 Total undiscounted lease liabilities 24,053 25,967 Short-term 1,244 1,145 Long-term 17,555 18,769 Lease liabilities included in the consolidated statement of financial position 18,799 19,914 |
Schedule of amounts recognized | Amounts recognized in the statement of cash flows: December 31, December 31, 2020 2019 Payments of lease liabilities 1,114 1,072 Amounts recognized in profit or loss: December 31, December 31, 2020 2019 Interest on lease liabilities (862) (912) Income from sub-leasing right-of-use assets 265 277 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other liabilities | |
Schedule of other liabilities | Following is a summary of other liabilities: December 31, December 31, 2020 2019 Accruals and other accumulated expenses 9,213 11,901 Accounts payable 6,307 2,526 Others 3,194 2,722 18,714 17,149 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Schedule of reconciliation profit and share data used in the basic and diluted earnings per share ("EPS") computations | The following table presents a reconciliation of profit and share data used in the basic and diluted earnings per share (“EPS”) computations for the dates indicated: December 31, 2020 2019 2018 Profit for the year 63,593 86,053 11,138 (U.S. dollars) Basic earnings per share 1.60 2.17 0.28 Diluted earnings per share 1.60 2.17 0.28 (Thousands of shares) Weighted average of common shares outstanding applicable to basic EPS 39,656 39,575 39,543 Effect of diluted securities: Stock options and restricted stock units plan — — — Adjusted weighted average of common shares outstanding applicable to diluted EPS 39,656 39,575 39,543 |
Capital and Reserves (Tables)
Capital and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Capital and Reserves | |
Schedule of movement of the shares by class for each of the years ended | The following table provides detailed information on the movement of the shares by class for each of the years ended December 31, 2020, 2019 and 2018: (Share units) “Class A” “Class B” “Class E” “Class F” Total Authorized 40,000,000 40,000,000 100,000,000 100,000,000 280,000,000 Outstanding at January 1, 2018 6,342,189 2,408,805 30,677,840 — 39,428,834 Conversions — (64,386) 64,386 — — Repurchased common stock — (99,193) (64) — (99,257) Restricted stock issued – directors — — 57,000 — 57,000 Exercised stock options - compensation plans — — 102,918 — 102,918 Restricted stock units – vested — — 49,055 — 49,055 Outstanding at December 31, 2018 6,342,189 2,245,226 30,951,135 — 39,538,550 Conversions — (62,799) 62,799 — — Repurchased common stock — (1) 1 — — Restricted stock issued – directors — — 57,000 — 57,000 Restricted stock units – vested — — 6,727 — 6,727 Outstanding at December 31, 2019 6,342,189 2,182,426 31,077,662 — 39,602,277 Conversions — (4,060) 4,060 — — Repurchased common stock — (1) — — (1) Restricted stock issued – directors — — 63,000 — 63,000 Restricted stock units – vested — — 12,664 — 12,664 Outstanding at December 31, 2020 6,342,189 2,178,365 31,157,386 — 39,677,940 |
Schedule of information regarding shares repurchased but not retired by the bank and accordingly classified as treasury stock | The following table presents information regarding shares repurchased but not retired by the Bank and accordingly classified as treasury stock: “Class A” “Class B” “Class E” Total Shares Amount Shares Amount Shares Amount Shares Amount Outstanding at January 1, 2018 318,140 10,708 590,174 16,270 1,642,690 36,270 2,551,004 63,248 Repurchase of common stock — — 99,193 2,441 64 1 99,257 2,442 Restricted stock issued – directors — — — — (57,000) (1,259) (57,000) (1,259) Exercised stock options - compensation plans — — — — (102,918) (2,272) (102,918) (2,272) Restricted stock units – vested — — — — (49,055) (1,083) (49,055) (1,083) Outstanding at December 31, 2018 318,140 10,708 689,367 18,711 1,433,781 31,657 2,441,288 61,076 Restricted stock issued - directors — — — — (57,000) (1,259) (57,000) (1,259) Restricted stock units - vested — — — — (6,727) (148) (6,727) (148) Outstanding at December 31, 2019 318,140 10,708 689,367 18,711 1,370,054 30,250 2,377,561 59,669 Restricted stock issued - directors — — — — (63,000) (1,391) (63,000) (1,391) Restricted stock units - vested — — — — (12,664) (279) (12,664) (279) Outstanding at December 31, 2020 318,140 10,708 689,367 18,711 1,294,390 28,580 2,301,897 57,999 |
Other comprehensive income (Tab
Other comprehensive income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other comprehensive income | |
Schedule of breakdown of other comprehensive income (loss) relating to financial instruments at FVOCI, derivative financial instruments, and foreign currency translation | The breakdown of other comprehensive income (loss) relating to financial instruments at FVOCI, derivative financial instruments, and foreign currency translation is as follows: Foreign Financial Financial currency instruments Instruments translation FVH CFH adjustment Total Balance as of January 1, 2018 303 170 1,490 1,963 Change in fair value of debt instruments, net of hedging (174) 2,841 — 2,667 Change in fair value of equity instruments at FVOCI, net of hedging (1,224) — — (1,224) Reclassification of gains (losses) on financial instruments included in profit or loss (1) (170) (1,534) — (1,704) Exchange difference in conversion of foreign operating currency — — (1,282) (1,282) Other comprehensive income (loss) for the year (1,568) 1,307 (1,282) (1,543) Balance as of December 31, 2018 (1,265) 1,477 208 420 Change in fair value of debt instruments, net of hedging 4 (2,698) — (2,694) Change in fair value of equity instruments at FVOCI, net of hedging 491 — — 491 Reclassification of gains (losses) on financial instruments included in profit or loss (1) 157 104 — 261 Exchange difference in conversion of foreign operating currency — — (296) (296) Other comprehensive income (loss) for the year 652 (2,594) (296) (2,238) Balance as of December 31, 2019 (613) (1,117) (88) (1,818) Change in fair value of debt instruments, net of hedging 264 2,001 — 2,265 Change in fair value of equity instruments at FVOCI, net of hedging 546 — — 546 Reclassification of gains (losses) on financial instruments included in profit or loss (1) (56) (369) — (425) Exchange difference in conversion of foreign operating currency — — (360) (360) Other comprehensive income (loss) for the year 754 1,632 (360) 2,026 Balance as of December 31, 2020 141 515 (448) 208 (1) Reclassification adjustments include amounts recognized in profit or loss of the year that had been part of other comprehensive income in this and prior years. |
Schedule of amounts reclassified from other comprehensive income to profit or loss | The following table presents amounts reclassified from other comprehensive income to profit or loss: Line item affected in the Details about other comprehensive Amount reclassified from other consolidated statement of income components comprehensive income profit or loss December 31, 2020 2019 2018 Realized gains (losses) on securities at FVOCI: (56) 157 87 Net gain (loss) on financial instruments Gains (losses) on derivative financial instruments: Foreign exchange forwards (2,337) (3,261) (2,502) Interest income – loans — (1,733) (1,650) Interest expense – borrowings and deposits (369) (61) (1,530) Net gain (loss) on foreign currency exchange Interest rate swaps — 56 4 Net gain (loss) on interest rate swaps Cross-currency swaps — (9) — Net gain (loss) on cross-currency swaps (2,762) (5,008) (5,678) |
Fee and commission income (Tabl
Fee and commission income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fee and commission income | |
Schedule of fees and commission income from contracts with customers broken down by main types of services according to the scope of IFRS 15 | Fee and commission income from contracts with customers broken down by main types of services according to the scope of IFRS 15, are detailed as follows: December 31, 2020 Documentary and standby letters of Other Syndications credit Commissions, net Total Issuance and confirmation — 8,090 1,400 9,490 Negotiation and acceptance — 183 — 183 Amendment — 688 — 688 Structuring 603 — — 603 Other — 39 (584) (546) 603 9,000 815 10,418 December 31, 2019 Documentary and standby letters of Other Syndications credit Commissions, net Total Issuance and confirmation — 8,381 1,312 9,693 Negotiation and acceptance — 399 — 399 Amendment — 632 (27) 605 Structuring 5,622 — — 5,622 Others — 94 (766) (672) 5,622 9,506 519 15,647 December 31, 2018 Documentary Other and standby Commissions, Syndications letters of credit net Total Issuance and confirmation — 9,281 1,738 11,019 Negotiation and acceptance — 379 — 379 Amendment — 1,020 (151) 869 Structuring 4,950 — — 4,950 Others — 87 (119) (32) 4,950 10,767 1,468 17,185 |
Schedule of ordinary income that is expected to be recognized on the contracts in force | The following table provides information on the ordinary income that is expected to be recognized on the contracts in force: December 31, 2020 Up to 1 year 1,917 From 1 to 2 years 361 More than 2 years 763 3,041 |
Business segment information (T
Business segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business segment information | |
Schedule of certain information regarding the bank's operations by segment | The following table provides certain information regarding the Bank’s operations by segment: December 31, 2020 Commercial Treasury Total Interest income 172,548 8,425 180,973 Interest expense (690) (87,833) (88,523) Inter-segment net interest income (83,937) 83,937 — Net interest income 87,921 4,529 92,450 Other income (expense), net 8,597 (1,890) 6,707 Total income 96,518 2,639 99,157 Reversal of (provision for) credit losses 1,889 (425) 1,464 Gain (loss) on non-financial assets, net 296 — 296 Operating expenses (28,021) (9,303) (37,324) Segment profit (loss) 70,682 (7,089) 63,593 Segment assets 4,989,009 1,293,081 6,282,090 Segment liabilities 92,309 5,139,955 5,232,264 December 31, 2019 Commercial Treasury Total Interest income 253,462 20,220 273,682 Interest expense (730) (163,437) (164,167) Inter-segment net interest income (144,334) 144,334 — Net interest income 108,398 1,117 109,515 Other income (expense), net 15,577 1,565 17,142 Total income 123,975 2,682 126,657 (Provision for) reversal of credit losses (744) 314 (430) Gain (loss) on non-financial assets, net 500 — 500 Operating expenses (31,183) (9,491) (40,674) Segment profit (loss) 92,548 (6,495) 86,053 Segment assets 5,967,157 1,273,678 7,240,835 Segment liabilities 134,657 6,081,693 6,216,350 December 31, 2018 Commercial Treasury Total Interest income 239,976 18,514 258,490 Interest expense — (148,747) (148,747) Inter-segment net interest income (130,195) 130,195 — Net interest income 109,781 (38) 109,743 Other income (expense), net 18,002 (156) 17,846 Total income 127,783 (194) 127,589 (Provision for) reversal of credit losses (57,621) 106 (57,515) (Loss) gain on non-financial assets, net (5,967) — (5,967) Operating expenses (37,436) (11,482) (48,918) Segment profit (loss) 26,759 (11,570) 15,189 Segment assets 5,734,159 1,858,333 7,592,492 Segment liabilities 12,985 6,588,995 6,601,980 |
Schedule of reconciliation of information on reportable segments | Reconciliation on information on reportable segments 2020 2019 2018 Profit for the year 63,593 86,053 15,189 Impairment loss on non-financial assets - unallocated — — (4,051) Total profit for the year 63,593 86,053 11,138 Assets: Assets from reportable segments 6,282,090 7,240,835 7,592,492 Other assets - unallocated 6,808 8,831 16,693 Total assets 6,288,898 7,249,666 7,609,185 Liabilities: Liabilities from reportable segments 5,232,264 6,216,350 6,601,980 Other liabilities - unallocated 18,714 17,149 13,615 Total liabilities 5,250,978 6,233,499 6,615,595 |
Schedule of geographic information analyses the bank's revenue and non-current assets by the bank's country | The geographic information analyses the Bank’s revenue and non-current assets by the Bank’s country of domicile and other countries. In presenting the geographic information below, segment revenue is based on customer’s country risk and segment non-current assets are based on the geographic location of the assets. 2020 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Total Total revenues 7,580 7,054 14,480 13,462 7,142 9,242 8,163 32,034 99,157 Non-current assets* 19,888 129 535 56 — — 212 591 21,411 2019 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Total Total revenues 8,649 13,122 18,757 10,348 10,702 13,640 14,889 36,550 126,657 Non-current assets* 20,976 222 1,510 55 — — 185 725 23,673 2018 Panama Brazil Mexico Colombia Costa Rica Ecuador Argentina Other Other Total revenues 13,913 17,887 14,577 15,440 11,115 10,414 9,959 34,284 127,589 Non-current assets* 6,520 126 1,495 7 — — 37 134 8,319 * Includes equipment and lesehold improvements, intangibles and investment properties |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions | |
Schedule of assets and liabilities with related private corporations and financial institutions | The detail of the assets and liabilities with related private corporations and financial institutions is as follows: December 31, December 31, 2020 2019 Assets Demand deposits 3,269 3,812 Loans, net 22,499 49,101 Total asset 25,768 52,913 Liabilities Time deposits 240,000 120,000 Total liabilities 240,000 120,000 Contingencies Stand-by letters of credit 28,300 20,000 Loss allowance (60) (49) Total contingencies 28,240 19,951 |
Schedule of income and expenses with related parties | The detail of income and expenses with related parties is as follows: December 31, 2020 2019 2018 Interest income Loans 1,390 2,837 2,751 Total interest income 1,390 2,837 2,751 Interest expense Deposits (2,961) (3,927) (984) Borrowings and debt (1) — (645) — Total interest expense (2,961) (4,572) (984) Net interest income (expenses) (1,571) (1,735) 1,767 Other income (expense) Fees and commissions, net 420 132 1 (Loss) gain on financial instruments, net — (41) 41 Other income, net — — 1 Total other income, net 420 91 43 Operating expenses Depreciation of equipment and leasehold improvements — (899) — Other expenses — (409) (2,287) Total operating expenses — (1,308) (2,287) Net income from related parties (1,151) (2,952) (477) (1) This caption includes the financial cost relating to leases and depreciation expense for the right-of-use assets that originates from the lease contract with related parties where the Bank acts as a lessee through December 31, 2019. |
Schedule of reporting periods, total compensation paid to directors and the executives of bladex | The total compensation paid to directors and the executives as representatives of the Bank amounted to: December 31, 2020 2019 2018 Expenses: Compensation costs to directors 2,033 2,289 2,331 Compensation costs to executives 5,448 3,244 4,943 |
Salaries and other employee e_2
Salaries and other employee expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Salaries and other employee expenses | |
Schedule of salaries and other employee expenses | December 31, 2020 2019 2018 Wages and salaries 13,717 13,232 18,487 Payroll taxes 1,722 1,721 2,120 Personnel benefits 5,383 8,867 6,732 Share–based payments 640 359 650 Total 21,462 24,179 27,989 |
Schedule of restricted stock granted to directors | A summary of restricted stock granted to Directors is presented below: Weighted average Shares grant date fair value Outstanding at January 1, 2018 91,950 27.40 Granted 57,000 28.70 Vested (45,300) 28.07 Outstanding at December 31, 2018 103,650 27.82 Granted 57,000 22.68 Vested (51,300) 27.19 Outstanding at December 31, 2019 109,350 25.44 Granted 63,000 11.54 Vested (40,200) 26.26 Outstanding at December 31, 2020 132,150 18.56 Expected to vest 132,150 |
Schedule of restricted stock units granted to certain executives | A summary of the restricted stock units granted to certain executives is presented below: Weighted average Weighted remaining Aggregate average grant contractual intrinsic Shares date fair value term value Outstanding at January 1, 2018 50,805 21.07 Granted 23,412 24.80 Vested (49,055) 20.90 Outstanding at December 31, 2018 25,162 24.86 Granted 23,743 14.95 Vested (6,727) 24.92 Outstanding at December 31, 2019 42,178 19.27 Granted 51,829 17.41 Vested (12,664) 20.24 Outstanding at December 31, 2019 81,343 17.93 2.59 years 15.71 Expected to vest 81,343 17.93 2.60 years 15.71 |
Schedule of stock options granted | A summary of stock options granted is presented below: Weighted average Aggregate Weighted average remaining contractual intrinsic Options exercise price term value Outstanding at January 1, 2018 273,643 27.48 Granted — — Forfeited (28,315) 29.25 Exercised (102,918) 24.55 Outstanding at December 31, 2018 142,410 29.25 Outstanding at December 31, 2019 142,410 29.25 Outstanding at December 31, 2020 142,410 29.25 1.11 years — Exercisable 142,410 29.25 1.11 years — Expected to vest — — — |
Other expenses (Tables)
Other expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other expenses | |
Schedule of other expenses | December 31, 2020 2019 2018 Administrative 4,142 5,560 6,391 Professional services 3,316 3,487 4,293 Maintenance and repairs 2,081 1,770 2,912 Regulatory fees 964 994 1,246 Rental - office and equipment 575 658 2,913 Advertising and marketing 100 290 337 Other 344 180 379 Total 11,522 12,939 18,471 |
Applicable laws and regulatio_2
Applicable laws and regulations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Applicable laws and regulations | |
Schedule of applicable laws and regulations | December 31, December 31, 2020 2019 Capital funds 1,048,182 1,026,125 Risk-weighted assets 5,187,054 5,937,648 Capital adequacy index |
Schedule of leverage ratio cannot be lower, at any time, than 3%. The bank will inform to SBP as often as the compliance with the leverage ratio is determined | The leverage ratio cannot be lower, at any time, than 3%. The Bank will inform to SBP as often as the compliance with the leverage ratio is determined. December 31, 2020 December 31, 2019 Ordinary capital 912,164 890,106 Non-risk-weighted assets 6,479,416 7,323,187 Leverage ratio |
Schedule of based on the classification of risks, collateral and in compliance with SBP Rule No. 4 2013 | Based on the classification of risks, collateral and in compliance with SBP Rule No. 4‑2013, the Bank classified the loan portfolio as follows: December 31, 2020 Loans at amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Corporations 2,147,846 9,281 10,593 — — 2,167,720 Financial Institutions: Private 2,231,742 — — — — 2,231,742 State-owned 476,520 — — — — 476,520 2,708,262 — — — — 2,708,262 Sovereign 35,415 — — — — 35,415 4,891,523 9,281 10,593 — — 4,911,397 Allowance for loan losses IFRS (*) : 34,720 1,857 4,588 — — 41,165 Loans at FVTPL Financial Institutions: Private 4,949 — — — — 4,949 Total loans 4,896,472 9,281 10,593 — — 4,916,346 December 31, 2019 Loans at amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Corporations 2,487,859 13,595 — — 61,845 2,563,299 Financial Institutions: Private 2,692,787 — — — — 2,692,787 State-owned 589,690 — — — — 589,690 3,282,477 — — — — 3,282,477 Sovereign 47,221 — — — — 47,221 Total 5,817,557 13,595 — — 61,845 5,892,997 Allowance for loan losses IFRS (*) : 42,396 2,338 — — 54,573 99,307 |
Schedule of statutory purposes only, non-accruing loans | For statutory purposes only, non-accruing loans are presented by category as follows: Loans at December 31, 2020 amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Impaired loans — — 10,593 — — 10,593 Total — — 10,593 — — 10,593 Loans at December 31, 2019 amortized cost Normal Special Mention Substandard Doubtful Unrecoverable Total Impaired loans — — — — 61,845 61,845 Total — — — — 61,845 61,845 December 31, December 31, 2020 2019 Non-accruing loans: Private corporations 10,593 61,845 Total non-accruing loans 10,593 61,845 Interest that would be reversed if the loans had been classified as non-accruing loans 351 1,379 Income from collected interest on non-accruing loans — 631 |
Schedule of provision and reserve | The provision and reserve are detailed as follows: December 31, December 31, 2020 2019 Dynamic provision 136,019 136,019 Regulatory credit reserve — — 136,019 136,019 |
Schedule of Portfolio of Modified Special Mention Category Loans, Provisions and Reserves Classified as per the Three-Stage Model of IFRS9 [Table Text Block] | Stage 1 Stage 2 Stage 3 Total Modified special mention loans Modified loans Corporate — 8,829 — 8,829 (-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount — — — — (+) Interest receivable — 7 — 7 (-) Unearned interest and deferred fees — — — — Total loan portfolio subject to provisions Rule No. 9-2020 — 8,836 — 8,836 Allowance Allowance IFRS 9 — 1,767 — 1,767 Collective allowance (complement to 1.5%) * — Regulatory reserve (complement to 3%) * — Total allowance and reserves 1,767 |
Corporate information (Details)
Corporate information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Bladex Representacao Ltda. [Member] | Bladex Head Office [Member] | |
Disclosure of notes and other explanatory information [Line Items] | |
Proportion of ownership interest in subsidiary | 99.999% |
Bladex Representacao Ltda. [Member] | Bladex Holdings Inc. [Member] | |
Disclosure of notes and other explanatory information [Line Items] | |
Proportion of ownership interest in subsidiary | 0.001% |
Bladex Development Corp. [Member] | Bladex Head Office [Member] | |
Disclosure of notes and other explanatory information [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
BLX Soluciones [Member] | Bladex Head Office [Member] | |
Disclosure of notes and other explanatory information [Line Items] | |
Proportion of ownership interest in subsidiary | 99.90% |
BLX Soluciones [Member] | Bladex Development Corp. [Member] | |
Disclosure of notes and other explanatory information [Line Items] | |
Proportion of ownership interest in subsidiary | 0.10% |
Significant accounting polici_3
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Furniture and fixtures [member] | Minimum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 years |
Furniture and fixtures [member] | Maximum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 5 years |
Computer equipment [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 years |
Other equipment [member] | Minimum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 2 years |
Other equipment [member] | Maximum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 4 years |
Leasehold improvement [member] | Minimum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 3 years |
Leasehold improvement [member] | Maximum | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 15 years |
Significant accounting polici_4
Significant accounting policies (Details Textual) | Dec. 31, 2020 |
IFRS Statement [Line Items] | |
Discount rate for present value of the cash flows | 10.00% |
Stage 1 | Aaa to Ba1 | 1-4 | |
IFRS Statement [Line Items] | |
Percentage of credit loss rate | 0.09% |
Stage 1 | Ba2 to B3 | 5-6 | |
IFRS Statement [Line Items] | |
Percentage of credit loss rate | 2.35% |
Stage 1 | Caa1 to Caa3 | 7 | |
IFRS Statement [Line Items] | |
Percentage of credit loss rate | 7.90% |
Stage 1 | Ca | 8 to 9 | |
IFRS Statement [Line Items] | |
Percentage of credit loss rate | 30.67% |
Stage 1 | C | 10 | |
IFRS Statement [Line Items] | |
Percentage of credit loss rate | 100.00% |
New accounting standards (Detai
New accounting standards (Details) - USD LIBOR - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-derivative financial assets | $ 416,833 | $ 473,643 | $ 1,034,252 |
Borrowings and debt | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-derivative financial liabilities | 12,500 | 62,500 | 222,500 |
Loan Commitments | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-derivative financial liabilities | $ 10,000 | $ 60,000 | $ 63,333 |
New accounting standards - Rema
New accounting standards - Remaining Notional Amount (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
DerivativeFinancialAssets | |||||
Derivative financial instruments - assets | $ 27,778 | $ 11,157 | |||
Derivative financial instruments - liabilities | $ 9,211 | $ 14,675 | |||
USD LIBOR | |||||
DerivativeFinancialAssets | |||||
Derivative financial instruments - assets | $ 1,937 | $ 3,006 | |||
Derivative financial instruments - liabilities | $ 68,768 | $ 88,768 | $ 400,414 |
New accounting standards - (Det
New accounting standards - (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedges [line items] | ||
Nominal value | $ 783,017 | $ 965,673 |
Cash flow hedging relationship | ||
Disclosure of detailed information about hedges [line items] | ||
Nominal value | $ 20,000 |
Financial Risk (Details)
Financial Risk (Details) - Loans at amortized cost - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Credit risk | |||
Total | $ 4,911,397 | $ 5,892,997 | |
Cost [member] | |||
Credit risk | |||
Total | 4,911,397 | 5,892,997 | |
Loss allowance | |||
Credit risk | |||
Total | (41,165) | (99,307) | $ 100,785 |
Stage 3 | Loss allowance | |||
Credit risk | |||
Total | (4,588) | (54,573) | 49,439 |
Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (16,661) | (28,892) | 34,957 |
Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (19,916) | (15,842) | $ 16,389 |
Credit risk | |||
Credit risk | |||
Total | 4,870,232 | 5,793,690 | |
Credit risk | Cost [member] | |||
Credit risk | |||
Total | 4,911,397 | 5,892,997 | |
Credit risk | Loss allowance | |||
Credit risk | |||
Total | (41,165) | (99,307) | |
Credit risk | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 2,582,794 | 2,928,401 | |
Credit risk | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 2,096,138 | 2,415,323 | |
Credit risk | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 232,465 | 487,428 | |
Credit risk | Grade 9 - 10 | 30.68 - 100 | Cost [member] | |||
Credit risk | |||
Total | 61,845 | ||
Credit risk | Stage 3 | |||
Credit risk | |||
Total | 6,005 | 7,272 | |
Credit risk | Stage 3 | Cost [member] | |||
Credit risk | |||
Total | 10,593 | 61,845 | |
Credit risk | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | (4,588) | (54,573) | |
Credit risk | Stage 3 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 10,593 | ||
Credit risk | Stage 3 | Grade 9 - 10 | 30.68 - 100 | Cost [member] | |||
Credit risk | |||
Total | 61,845 | ||
Credit risk | Stage 1 | |||
Credit risk | |||
Total | 4,596,807 | 5,573,265 | |
Credit risk | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 4,613,468 | 5,602,157 | |
Credit risk | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (16,661) | (28,892) | |
Credit risk | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 2,582,794 | 2,928,401 | |
Credit risk | Stage 1 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 1,928,142 | 2,330,150 | |
Credit risk | Stage 1 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 102,532 | 343,606 | |
Credit risk | Stage 2 | Stage 2 | |||
Credit risk | |||
Total | 267,420 | 213,153 | |
Credit risk | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 287,336 | 228,995 | |
Credit risk | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (19,916) | (15,842) | |
Credit risk | Stage 2 | Stage 2 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 167,996 | 85,173 | |
Credit risk | Stage 2 | Stage 2 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | $ 119,340 | $ 143,822 |
Financial Risk (Details 1)
Financial Risk (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Total | $ 639,264 | $ 609,054 | |
Loan commitments and financial guarantees contracts | Cost [member] | |||
Credit risk | |||
Total | 74,366 | 115,682 | |
Loan commitments and financial guarantees contracts | Loss allowance | |||
Credit risk | |||
Total | (2,904) | (3,044) | $ 3,289 |
Loan commitments and financial guarantees contracts | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | 0 | 0 | |
Loan commitments and financial guarantees contracts | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (2,426) | (2,683) | 3,089 |
Loan commitments and financial guarantees contracts | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (478) | (361) | $ 200 |
Credit risk | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Total | 636,360 | 606,010 | |
Credit risk | Loan commitments and financial guarantees contracts | Cost [member] | |||
Credit risk | |||
Total | 639,264 | 609,054 | |
Credit risk | Loan commitments and financial guarantees contracts | Loss allowance | |||
Credit risk | |||
Total | (2,904) | (3,044) | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 1 | |||
Credit risk | |||
Total | 598,392 | 578,925 | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 600,818 | 581,608 | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (2,426) | (2,683) | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 2 | Stage 2 | |||
Credit risk | |||
Total | 37,968 | 27,085 | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 38,446 | 27,446 | |
Credit risk | Loan commitments and financial guarantees contracts | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (478) | (361) | |
Credit risk | Loan Commitments | Cost [member] | |||
Credit risk | |||
Total | 564,898 | 493,372 | |
Credit risk | Loan Commitments | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 245,927 | 153,874 | |
Credit risk | Loan Commitments | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 237,084 | 178,077 | |
Credit risk | Loan Commitments | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 81,887 | ||
Credit risk | Loan Commitments | Grade 7 - 8 | 4.13 - 30.43 | Cost [member] | |||
Credit risk | |||
Total | 161,421 | ||
Credit risk | Loan Commitments | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 526,452 | 465,926 | |
Credit risk | Loan Commitments | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 245,927 | 153,874 | |
Credit risk | Loan Commitments | Stage 1 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 198,638 | 150,631 | |
Credit risk | Loan Commitments | Stage 1 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 81,887 | ||
Credit risk | Loan Commitments | Stage 1 | Grade 7 - 8 | 4.13 - 30.43 | Cost [member] | |||
Credit risk | |||
Total | 161,421 | ||
Credit risk | Loan Commitments | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 38,446 | 27,446 | |
Credit risk | Loan Commitments | Stage 2 | Stage 2 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 38,446 | 27,446 | |
Credit risk | Customers' liabilities under acceptances | Cost [member] | |||
Credit risk | |||
Total | 74,366 | 115,682 | |
Credit risk | Customers' liabilities under acceptances | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 1,498 | 13,367 | |
Credit risk | Customers' liabilities under acceptances | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 723 | 5,491 | |
Credit risk | Customers' liabilities under acceptances | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 72,145 | ||
Credit risk | Customers' liabilities under acceptances | Grade 7 - 8 | 4.13 - 30.43 | Cost [member] | |||
Credit risk | |||
Total | 96,824 | ||
Credit risk | Customers' liabilities under acceptances | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 74,366 | 115,682 | |
Credit risk | Customers' liabilities under acceptances | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 1,498 | 13,367 | |
Credit risk | Customers' liabilities under acceptances | Stage 1 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 723 | 5,491 | |
Credit risk | Customers' liabilities under acceptances | Stage 1 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | $ 72,145 | ||
Credit risk | Customers' liabilities under acceptances | Stage 1 | Grade 7 - 8 | 4.13 - 30.43 | Cost [member] | |||
Credit risk | |||
Total | $ 96,824 |
Financial Risk (Details 2)
Financial Risk (Details 2) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Securities at amortized cost | |||
Credit risk | |||
Total | $ 164,074 | $ 74,547 | |
Securities at amortized cost | Cost [member] | |||
Credit risk | |||
Total | 164,074 | 74,547 | |
Securities at amortized cost | Loss allowance | |||
Credit risk | |||
Total | (495) | (113) | $ 140 |
Securities at amortized cost | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | 0 | 0 | |
Securities at amortized cost | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (462) | (103) | 113 |
Securities at amortized cost | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (33) | (10) | 27 |
Credit risk | Securities at amortized cost | |||
Credit risk | |||
Total | 163,579 | 74,434 | |
Credit risk | Securities at amortized cost | Cost [member] | |||
Credit risk | |||
Total | 164,074 | 74,547 | |
Credit risk | Securities at amortized cost | Loss allowance | |||
Credit risk | |||
Total | (495) | (113) | |
Credit risk | Securities at amortized cost | Grade 1 - 4 | 0.03 - 0.74 | |||
Credit risk | |||
Total | 108,505 | 73,047 | |
Credit risk | Securities at amortized cost | Grade 5 - 6 | 0.75 - 3.95 | |||
Credit risk | |||
Total | 55,569 | 1,500 | |
Credit risk | Securities at amortized cost | Stage 1 | |||
Credit risk | |||
Total | 158,605 | 72,944 | |
Credit risk | Securities at amortized cost | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 159,067 | 73,047 | |
Credit risk | Securities at amortized cost | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (462) | (103) | |
Credit risk | Securities at amortized cost | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | |||
Credit risk | |||
Total | 108,505 | 73,047 | |
Credit risk | Securities at amortized cost | Stage 1 | Grade 5 - 6 | 0.75 - 3.95 | |||
Credit risk | |||
Total | 50,562 | ||
Credit risk | Securities at amortized cost | Stage 2 | Stage 2 | |||
Credit risk | |||
Total | 4,974 | 1,490 | |
Credit risk | Securities at amortized cost | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 5,007 | 1,500 | |
Credit risk | Securities at amortized cost | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (33) | (10) | |
Credit risk | Securities at amortized cost | Stage 2 | Stage 2 | Grade 5 - 6 | 0.75 - 3.95 | |||
Credit risk | |||
Total | 5,007 | 1,500 | |
Loans at amortized cost | |||
Credit risk | |||
Total | 4,911,397 | 5,892,997 | |
Loans at amortized cost | Cost [member] | |||
Credit risk | |||
Total | 4,911,397 | 5,892,997 | |
Loans at amortized cost | Loss allowance | |||
Credit risk | |||
Total | (41,165) | (99,307) | 100,785 |
Loans at amortized cost | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | (4,588) | (54,573) | 49,439 |
Loans at amortized cost | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (16,661) | (28,892) | 34,957 |
Loans at amortized cost | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (19,916) | (15,842) | 16,389 |
Loans at amortized cost | Credit risk | |||
Credit risk | |||
Total | 4,870,232 | 5,793,690 | |
Loans at amortized cost | Credit risk | Cost [member] | |||
Credit risk | |||
Total | 4,911,397 | 5,892,997 | |
Loans at amortized cost | Credit risk | Loss allowance | |||
Credit risk | |||
Total | (41,165) | (99,307) | |
Loans at amortized cost | Credit risk | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 2,582,794 | 2,928,401 | |
Loans at amortized cost | Credit risk | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 2,096,138 | 2,415,323 | |
Loans at amortized cost | Credit risk | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 232,465 | 487,428 | |
Loans at amortized cost | Credit risk | Grade 9 - 10 | 30.68 - 100 | Cost [member] | |||
Credit risk | |||
Total | 61,845 | ||
Loans at amortized cost | Credit risk | Stage 3 | |||
Credit risk | |||
Total | 6,005 | 7,272 | |
Loans at amortized cost | Credit risk | Stage 3 | Cost [member] | |||
Credit risk | |||
Total | 10,593 | 61,845 | |
Loans at amortized cost | Credit risk | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | (4,588) | (54,573) | |
Loans at amortized cost | Credit risk | Stage 3 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 10,593 | ||
Loans at amortized cost | Credit risk | Stage 3 | Grade 9 - 10 | 30.68 - 100 | Cost [member] | |||
Credit risk | |||
Total | 61,845 | ||
Loans at amortized cost | Credit risk | Stage 1 | |||
Credit risk | |||
Total | 4,596,807 | 5,573,265 | |
Loans at amortized cost | Credit risk | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 4,613,468 | 5,602,157 | |
Loans at amortized cost | Credit risk | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (16,661) | (28,892) | |
Loans at amortized cost | Credit risk | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 2,582,794 | 2,928,401 | |
Loans at amortized cost | Credit risk | Stage 1 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 1,928,142 | 2,330,150 | |
Loans at amortized cost | Credit risk | Stage 1 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 102,532 | 343,606 | |
Loans at amortized cost | Credit risk | Stage 2 | Stage 2 | |||
Credit risk | |||
Total | 267,420 | 213,153 | |
Loans at amortized cost | Credit risk | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 287,336 | 228,995 | |
Loans at amortized cost | Credit risk | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (19,916) | (15,842) | |
Loans at amortized cost | Credit risk | Stage 2 | Stage 2 | Grade 5 - 6 | 0.75 - 3.95 | Cost [member] | |||
Credit risk | |||
Total | 167,996 | 85,173 | |
Loans at amortized cost | Credit risk | Stage 2 | Stage 2 | Grade 7 - 8 | 3.96 - 30.67 | Cost [member] | |||
Credit risk | |||
Total | 119,340 | 143,822 | |
Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Total | 639,264 | 609,054 | |
Loan commitments and financial guarantees contracts | Cost [member] | |||
Credit risk | |||
Total | 74,366 | 115,682 | |
Loan commitments and financial guarantees contracts | Loss allowance | |||
Credit risk | |||
Total | (2,904) | (3,044) | 3,289 |
Loan commitments and financial guarantees contracts | Stage 3 | Loss allowance | |||
Credit risk | |||
Total | 0 | 0 | |
Loan commitments and financial guarantees contracts | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (2,426) | (2,683) | 3,089 |
Loan commitments and financial guarantees contracts | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | (478) | (361) | $ 200 |
Loan commitments and financial guarantees contracts | Credit risk | |||
Credit risk | |||
Total | 636,360 | 606,010 | |
Loan commitments and financial guarantees contracts | Credit risk | Cost [member] | |||
Credit risk | |||
Total | 639,264 | 609,054 | |
Loan commitments and financial guarantees contracts | Credit risk | Loss allowance | |||
Credit risk | |||
Total | (2,904) | (3,044) | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 1 | |||
Credit risk | |||
Total | 598,392 | 578,925 | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 600,818 | 581,608 | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (2,426) | (2,683) | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 2 | Stage 2 | |||
Credit risk | |||
Total | 37,968 | 27,085 | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 2 | Stage 2 | Cost [member] | |||
Credit risk | |||
Total | 38,446 | 27,446 | |
Loan commitments and financial guarantees contracts | Credit risk | Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | $ (478) | $ (361) |
Financial Risk (Details 3)
Financial Risk (Details 3) - Securities at FVOCI - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Credit risk | |||
Total | $ 231,348 | $ 5,094 | |
Loss allowance | |||
Credit risk | |||
Total | (43) | $ 173 | |
Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (43) | 33 | |
Stage 2 | Stage 2 | Loss allowance | |||
Credit risk | |||
Total | $ 140 | ||
Credit risk | |||
Credit risk | |||
Total | 231,305 | 5,094 | |
Credit risk | Cost [member] | |||
Credit risk | |||
Total | 231,348 | 5,094 | |
Credit risk | Loss allowance | |||
Credit risk | |||
Total | (43) | ||
Credit risk | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | 231,348 | 5,094 | |
Credit risk | Stage 1 | |||
Credit risk | |||
Total | 231,305 | 5,094 | |
Credit risk | Stage 1 | Cost [member] | |||
Credit risk | |||
Total | 231,348 | 5,094 | |
Credit risk | Stage 1 | Loss allowance | |||
Credit risk | |||
Total | (43) | ||
Credit risk | Stage 1 | Grade 1 - 4 | 0.03 - 0.74 | Cost [member] | |||
Credit risk | |||
Total | $ 231,348 | $ 5,094 |
Financial Risk (Details 4)
Financial Risk (Details 4) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans and receivables, gross | $ 5,892,997 | |
Loans, Stage 1 | ||
Loans and receivables, gross | 5,602,157 | |
Loans, Stage 2 | ||
Loans and receivables, gross | 228,995 | |
Loans, Stage 3 | ||
Loans and receivables, gross | 61,845 | |
Current | ||
Loans and receivables, gross | $ 4,911,397 | 5,878,321 |
Current | Loans, Stage 1 | ||
Loans and receivables, gross | 4,613,468 | 5,602,157 |
Current | Loans, Stage 2 | ||
Loans and receivables, gross | 287,336 | 228,995 |
Current | Loans, Stage 3 | ||
Loans and receivables, gross | $ 10,593 | 47,169 |
Later than three months and not later than four months [member] | ||
Loans and receivables, gross | 3,724 | |
Later than three months and not later than four months [member] | Loans, Stage 3 | ||
Loans and receivables, gross | 3,724 | |
Later than one eighty days [Member] | ||
Loans and receivables, gross | 10,952 | |
Later than one eighty days [Member] | Loans, Stage 3 | ||
Loans and receivables, gross | 10,952 | |
Total past due [Member] | ||
Loans and receivables, gross | 14,676 | |
Total past due [Member] | Loans, Stage 3 | ||
Loans and receivables, gross | $ 14,676 |
Financial Risk (Details 5)
Financial Risk (Details 5) - Loans at amortized cost - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk | ||
Total | $ 4,911,397 | $ 5,892,997 |
Cost [member] | ||
Credit risk | ||
Total | $ 4,911,397 | $ 5,892,997 |
Financial Risk (Details 6)
Financial Risk (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | ||
Derivative financial instruments - assets | $ 27,778 | $ 11,157 |
Derivative financial instruments - liabilities | (9,211) | (14,675) |
Derivatives [member] | ||
Disclosure of financial assets [line items] | ||
Notional value | 783,017 | 965,673 |
Derivative financial instruments - assets | 27,778 | 11,157 |
Derivative financial instruments - liabilities | (9,211) | (14,675) |
Interest rate swaps | ||
Disclosure of financial assets [line items] | ||
Notional value | 145,667 | 521,333 |
Derivative financial instruments - assets | 1,831 | 407 |
Derivative financial instruments - liabilities | (1,774) | (1,903) |
Cross currency swaps | ||
Disclosure of financial assets [line items] | ||
Notional value | 565,997 | 369,869 |
Derivative financial instruments - assets | 25,947 | 10,125 |
Derivative financial instruments - liabilities | (3,848) | (10,197) |
Foreign exchange forwards | ||
Disclosure of financial assets [line items] | ||
Notional value | 71,353 | 74,471 |
Derivative financial instruments - assets | 0 | 625 |
Derivative financial instruments - liabilities | $ (3,589) | $ (2,575) |
Guarantees and other financial credit enhancements | ||
Disclosure of financial assets [line items] | ||
Coverage ratio on loan portfolio | 12.00% | 12.00% |
Financial Risk (Details 7)
Financial Risk (Details 7) | Dec. 31, 2020 | Dec. 31, 2019 |
Central [Member] | Brazil | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.70% | 2.00% |
ComEx Growth Index (Var.%) | 4.00% | 4.10% |
Central [Member] | Colombia | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.40% | 3.40% |
ComEx Growth Index (Var.%) | 4.60% | 6.60% |
Central [Member] | Mexico | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.20% | 1.50% |
ComEx Growth Index (Var.%) | 3.50% | 2.20% |
Central [Member] | Chile | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.50% | 2.20% |
ComEx Growth Index (Var.%) | 6.40% | 3.10% |
Central [Member] | Ecuador | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | (0.20%) | 1.30% |
ComEx Growth Index (Var.%) | 2.70% | 4.60% |
Central [Member] | Guatemala | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 2.50% | 3.50% |
ComEx Growth Index (Var.%) | 4.20% | 4.10% |
Central [Member] | Panama | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 2.50% | 4.60% |
ComEx Growth Index (Var.%) | 4.20% | 3.00% |
Central [Member] | Peru | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.40% | 3.30% |
ComEx Growth Index (Var.%) | 5.10% | 4.20% |
Upside [Member] | Brazil | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.70% | 3.00% |
ComEx Growth Index (Var.%) | 7.50% | 7.60% |
Upside [Member] | Colombia | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 2.50% | 4.50% |
ComEx Growth Index (Var.%) | 7.60% | 9.60% |
Upside [Member] | Mexico | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.20% | 2.50% |
ComEx Growth Index (Var.%) | 7.50% | 6.20% |
Upside [Member] | Chile | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 2.60% | 3.30% |
ComEx Growth Index (Var.%) | 9.90% | 6.60% |
Upside [Member] | Ecuador | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.80% | 2.30% |
ComEx Growth Index (Var.%) | 5.70% | 7.60% |
Upside [Member] | Guatemala | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 3.50% | 4.50% |
ComEx Growth Index (Var.%) | 7.20% | 7.10% |
Upside [Member] | Panama | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 3.50% | 6.10% |
ComEx Growth Index (Var.%) | 7.20% | 6.00% |
Upside [Member] | Peru | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 2.40% | 4.30% |
ComEx Growth Index (Var.%) | 8.60% | 7.70% |
Downside [Member] | Brazil | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | (0.70%) | 0.60% |
ComEx Growth Index (Var.%) | 0.00% | 0.10% |
Downside [Member] | Colombia | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.10% | 2.10% |
ComEx Growth Index (Var.%) | 1.10% | 3.10% |
Downside [Member] | Mexico | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | (1.00%) | 0.30% |
ComEx Growth Index (Var.%) | (1.00%) | (2.30%) |
Downside [Member] | Chile | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.30% | 1.00% |
ComEx Growth Index (Var.%) | 2.40% | (0.90%) |
Downside [Member] | Ecuador | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | (1.70%) | (0.20%) |
ComEx Growth Index (Var.%) | (0.80%) | 1.10% |
Downside [Member] | Guatemala | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.30% | 2.30% |
ComEx Growth Index (Var.%) | 0.70% | 0.60% |
Downside [Member] | Panama | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 1.30% | 3.20% |
ComEx Growth Index (Var.%) | 0.70% | (0.50%) |
Downside [Member] | Peru | ||
Disclosure of financial assets [line items] | ||
GDP Growth (Var.%) | 0.20% | 2.10% |
ComEx Growth Index (Var.%) | 1.10% | 0.20% |
Financial Risk (Details 8)
Financial Risk (Details 8) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit risk | |||
Net effect of changes in allowance for expected credit losses | $ 13,576 | $ 11,849 | $ 56,382 |
Financial instruments that have been derecognized during the year | (30,007) | (39,259) | (34,220) |
New financial assets originated or purchased | 14,967 | 27,840 | 35,353 |
Write-offs | 5,750 | 0 | |
Securities at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | 74,547 | ||
Net effect of changes in allowance for expected credit losses | 38 | (18) | (48) |
Financial instruments that have been derecognized during the year | (86) | (46) | (64) |
New financial assets originated or purchased | 430 | 37 | 56 |
Financial assets at end of period | 164,074 | 74,547 | |
Securities at FVOCI | |||
Credit risk | |||
Financial assets at beginning of period | 5,094 | ||
Net effect of changes in allowance for expected credit losses | 0 | (63) | |
Financial instruments that have been derecognized during the year | 0 | (173) | |
New financial assets originated or purchased | 43 | 14 | |
Financial assets at end of period | 231,348 | 5,094 | |
Loans at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | 5,892,997 | ||
Net effect of changes in allowance for expected credit losses | 13,459 | 11,714 | 56,311 |
Financial instruments that have been derecognized during the year | (28,036) | (36,534) | (27,490) |
New financial assets originated or purchased | 12,828 | 25,695 | 32,355 |
Financial assets at end of period | 4,911,397 | 5,892,997 | |
Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Financial assets at beginning of period | 609,054 | ||
Net effect of changes in allowance for expected credit losses | 79 | 153 | 182 |
Financial instruments that have been derecognized during the year | (1,885) | (2,506) | (6,666) |
New financial assets originated or purchased | 1,666 | 2,108 | 2,928 |
Financial assets at end of period | 639,264 | 609,054 | |
Loss allowance | Securities at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (113) | 140 | |
Transfer to lifetime expected credit losses | 0 | ||
Net effect of changes in allowance for expected credit losses | 38 | (18) | |
Financial instruments that have been derecognized during the year | (86) | (46) | |
New financial assets originated or purchased | 430 | 37 | |
Financial assets at end of period | (495) | (113) | 140 |
Loss allowance | Securities at FVOCI | |||
Credit risk | |||
Financial assets at beginning of period | 173 | ||
Financial instruments that have been derecognized during the year | 43 | (173) | |
Financial assets at end of period | (43) | 173 | |
Loss allowance | Loans at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (99,307) | 100,785 | |
Transfer to lifetime expected credit losses | 0 | ||
Transfer to credit-impaired financial instruments | 0 | ||
Net effect of changes in allowance for expected credit losses | 13,459 | 11,714 | |
Financial instruments that have been derecognized during the year | (28,036) | (36,534) | |
New financial assets originated or purchased | 12,828 | 25,695 | |
Write-offs | (56,532) | (2,405) | |
Recoveries | 139 | 52 | |
Financial assets at end of period | (41,165) | (99,307) | 100,785 |
Loss allowance | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Financial assets at beginning of period | (3,044) | 3,289 | |
Transfer to lifetime expected credit losses | 0 | ||
Net effect of changes in allowance for expected credit losses | 79 | 153 | |
Financial instruments that have been derecognized during the year | (1,885) | (2,506) | |
New financial assets originated or purchased | 1,666 | 2,108 | |
Financial assets at end of period | (2,904) | (3,044) | 3,289 |
Stage 3 | Loss allowance | Securities at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | 0 | ||
Transfer to lifetime expected credit losses | 0 | ||
Net effect of changes in allowance for expected credit losses | 0 | ||
Financial instruments that have been derecognized during the year | 0 | ||
New financial assets originated or purchased | 0 | ||
Financial assets at end of period | 0 | 0 | |
Stage 3 | Loss allowance | Loans at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (54,573) | 49,439 | |
Transfer to lifetime expected credit losses | 0 | ||
Transfer to credit-impaired financial instruments | 2,100 | ||
Net effect of changes in allowance for expected credit losses | (118) | 7,987 | |
Financial instruments that have been derecognized during the year | 0 | (500) | |
New financial assets originated or purchased | 0 | ||
Write-offs | (52,106) | (2,405) | |
Recoveries | 139 | 52 | |
Financial assets at end of period | (4,588) | (54,573) | 49,439 |
Stage 3 | Loss allowance | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Financial assets at beginning of period | 0 | ||
Transfer to lifetime expected credit losses | 0 | ||
Net effect of changes in allowance for expected credit losses | 0 | ||
Financial instruments that have been derecognized during the year | 0 | ||
New financial assets originated or purchased | 0 | ||
Financial assets at end of period | 0 | 0 | |
Stage 1 | Loss allowance | Securities at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (103) | 113 | |
Transfer to lifetime expected credit losses | (10) | ||
Net effect of changes in allowance for expected credit losses | 15 | (1) | |
Financial instruments that have been derecognized during the year | (76) | (46) | |
New financial assets originated or purchased | 430 | 37 | |
Financial assets at end of period | (462) | (103) | 113 |
Stage 1 | Loss allowance | Securities at FVOCI | |||
Credit risk | |||
Financial assets at beginning of period | 33 | ||
Financial instruments that have been derecognized during the year | 43 | (33) | |
Financial assets at end of period | (43) | 33 | |
Stage 1 | Loss allowance | Loans at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (28,892) | 34,957 | |
Transfer to lifetime expected credit losses | (886) | (2,488) | |
Transfer to credit-impaired financial instruments | 0 | ||
Net effect of changes in allowance for expected credit losses | 134 | (2,154) | |
Financial instruments that have been derecognized during the year | (24,307) | (27,118) | |
New financial assets originated or purchased | 12,828 | 25,695 | |
Write-offs | 0 | ||
Recoveries | 0 | ||
Financial assets at end of period | (16,661) | (28,892) | 34,957 |
Stage 1 | Loss allowance | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Financial assets at beginning of period | (2,683) | 3,089 | |
Transfer to lifetime expected credit losses | (96) | ||
Net effect of changes in allowance for expected credit losses | 37 | (17) | |
Financial instruments that have been derecognized during the year | (1,864) | (2,497) | |
New financial assets originated or purchased | 1,666 | 2,108 | |
Financial assets at end of period | (2,426) | (2,683) | 3,089 |
Stage 2 | Stage 2 | Loss allowance | Securities at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (10) | 27 | |
Transfer to lifetime expected credit losses | 10 | ||
Net effect of changes in allowance for expected credit losses | 23 | (17) | |
Financial instruments that have been derecognized during the year | (10) | ||
New financial assets originated or purchased | 0 | ||
Financial assets at end of period | (33) | (10) | 27 |
Stage 2 | Stage 2 | Loss allowance | Securities at FVOCI | |||
Credit risk | |||
Financial assets at beginning of period | 140 | ||
Financial instruments that have been derecognized during the year | (140) | ||
Financial assets at end of period | 140 | ||
Stage 2 | Stage 2 | Loss allowance | Loans at amortized cost | |||
Credit risk | |||
Financial assets at beginning of period | (15,842) | 16,389 | |
Transfer to lifetime expected credit losses | 886 | 2,488 | |
Transfer to credit-impaired financial instruments | (2,100) | ||
Net effect of changes in allowance for expected credit losses | 13,443 | 5,881 | |
Financial instruments that have been derecognized during the year | (3,729) | (8,916) | |
New financial assets originated or purchased | 0 | ||
Write-offs | (4,426) | ||
Recoveries | 0 | ||
Financial assets at end of period | (19,916) | (15,842) | 16,389 |
Stage 2 | Stage 2 | Loss allowance | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Financial assets at beginning of period | (361) | 200 | |
Transfer to lifetime expected credit losses | 96 | ||
Net effect of changes in allowance for expected credit losses | 42 | 170 | |
Financial instruments that have been derecognized during the year | (21) | (9) | |
New financial assets originated or purchased | 0 | ||
Financial assets at end of period | $ (478) | $ (361) | $ 200 |
Financial Risk (Details 9)
Financial Risk (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit risk | |||
Net effect of changes in allowance for expected credit losses | $ 13,576 | $ 11,849 | $ 56,382 |
Financial instruments that have been derecognized during the year | (30,007) | (39,259) | (34,220) |
New instruments originated or purchased | 14,967 | 27,840 | 35,353 |
Total | (1,464) | 430 | 57,515 |
Securities at amortized cost | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 38 | (18) | (48) |
Financial instruments that have been derecognized during the year | (86) | (46) | (64) |
New instruments originated or purchased | 430 | 37 | 56 |
Total | 382 | (27) | (56) |
Securities at FVOCI | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 0 | (63) | |
Financial instruments that have been derecognized during the year | 0 | (173) | |
New instruments originated or purchased | 43 | 14 | |
Total | 43 | (173) | (49) |
Loans at amortized cost | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 13,459 | 11,714 | 56,311 |
Financial instruments that have been derecognized during the year | (28,036) | (36,534) | (27,490) |
New instruments originated or purchased | 12,828 | 25,695 | 32,355 |
Total | (1,749) | 875 | 61,176 |
Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 79 | 153 | 182 |
Financial instruments that have been derecognized during the year | (1,885) | (2,506) | (6,666) |
New instruments originated or purchased | 1,666 | 2,108 | 2,928 |
Total | (140) | (245) | $ (3,556) |
Loss allowance | Securities at amortized cost | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 38 | (18) | |
Financial instruments that have been derecognized during the year | (86) | (46) | |
New instruments originated or purchased | 430 | 37 | |
Loss allowance | Securities at FVOCI | |||
Credit risk | |||
Financial instruments that have been derecognized during the year | 43 | (173) | |
Loss allowance | Loans at amortized cost | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 13,459 | 11,714 | |
Financial instruments that have been derecognized during the year | (28,036) | (36,534) | |
New instruments originated or purchased | 12,828 | 25,695 | |
Loss allowance | Loan commitments and financial guarantees contracts | |||
Credit risk | |||
Net effect of changes in allowance for expected credit losses | 79 | 153 | |
Financial instruments that have been derecognized during the year | (1,885) | (2,506) | |
New instruments originated or purchased | $ 1,666 | $ 2,108 |
Financial Risk (Details 10)
Financial Risk (Details 10) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Write-offs | $ 5,750 | $ 0 |
Loans at amortized cost | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Financial assets at beginning of period | 5,892,997 | |
Financial assets at end of period | 4,911,397 | 5,892,997 |
Loans at amortized cost | Cost [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Financial assets at beginning of period | 5,892,997 | |
Financial assets at end of period | 4,911,397 | 5,892,997 |
Sale of the outstanding credit-impaired loan in Stage 3 | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Financial assets at end of period | 11,600 | |
Book value | 52,100 | |
Financial instruments credit-impaired [member] | Loans at amortized cost | Cost [member] | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Financial assets at beginning of period | 54,573 | 49,439 |
Classified as credit-impaired during the year | 2,100 | |
Change in expected credit losses allowance | (744) | 7,164 |
Recoveries of amounts previously written off | 139 | 52 |
Interest income | 626 | 323 |
Write-offs | (52,106) | (2,405) |
Financial assets at end of period | $ 4,588 | $ 54,573 |
Financial Risk (Details 11)
Financial Risk (Details 11) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Securities at amortized cost | ||
Financial Risk | ||
Loans, net | $ 164,074 | $ 74,547 |
Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 231,348 | 5,094 |
Cost [member] | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 164,074 | 74,547 |
Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 4,911,397 | 5,892,997 |
Loans at amortized cost | Cost [member] | ||
Financial Risk | ||
Loans, net | 4,911,397 | 5,892,997 |
Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 639,264 | 609,054 |
Loan commitments and financial guarantees contracts | Cost [member] | ||
Financial Risk | ||
Loans, net | 74,366 | 115,682 |
Customers' liabilities under acceptances | Cost [member] | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 231,348 | 5,094 |
Financial institutions | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 61,991 | 19,276 |
Financial institutions | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 141,974 | |
Financial institutions | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 2,708,262 | 3,282,477 |
Financial institutions | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 270,716 | 326,071 |
Manufacturing | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 66,053 | 21,658 |
Manufacturing | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 45,654 | |
Manufacturing | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 760,985 | 925,375 |
Manufacturing | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 173,493 | 143,560 |
Oil and petroleum derived products | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 20,911 | 5,132 |
Oil and petroleum derived products | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 38,607 | |
Oil and petroleum derived products | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 586,030 | 561,068 |
Oil and petroleum derived products | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 98,189 | 71,571 |
Agricultural | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 336,715 | 327,288 |
Services | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 264,597 | 370,753 |
Services | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 63,086 | 20,497 |
Mining | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 94,955 | 162,364 |
Other | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 124,438 | 216,451 |
Other | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 33,780 | 47,355 |
Private corporations | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 56,979 | 2,998 |
Private corporations | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 60,403 | |
Private corporations | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 1,425,929 | 1,782,808 |
Private corporations | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 276,249 | 213,161 |
State-owned corporations | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 29,985 | 23,792 |
State-owned corporations | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 23,858 | |
State-owned corporations | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 741,791 | 780,491 |
State-owned corporations | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 92,299 | 69,822 |
Private financial institutions | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 33,715 | 19,276 |
Private financial institutions | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 2,231,742 | 2,692,787 |
Private financial institutions | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 65,434 | 75,130 |
State-owned financial institutions | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 28,276 | |
State-owned financial institutions | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 141,974 | |
State-owned financial institutions | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 476,520 | 589,690 |
State-owned financial institutions | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 205,282 | 250,941 |
Sovereign [Member] | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 15,119 | 28,481 |
Sovereign [Member] | Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 5,113 | 5,094 |
Sovereign [Member] | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | $ 35,415 | $ 47,221 |
Financial Risk (Details 12)
Financial Risk (Details 12) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans at amortized cost | ||
Financial Risk | ||
Loans, net | $ 4,911,397 | $ 5,892,997 |
Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 639,264 | 609,054 |
Argentina | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 130,944 | 226,481 |
Belgium | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 9,807 | 13,742 |
Bolivia | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 12,000 | 7,000 |
Bolivia | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 2,800 | 400 |
Brazil | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 971,652 | 1,015,316 |
Brazil | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 50,000 | 50,000 |
Canada | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 657 | |
Chile | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 533,945 | 683,132 |
Chile | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 7,911 | 8 |
Colombia | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 714,258 | 906,092 |
Colombia | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 50,333 | 50,610 |
Costa Rica | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 146,200 | 220,380 |
Costa Rica | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 56,876 | 59,161 |
Dominican Republic | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 202,433 | 289,853 |
Dominican Republic | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 16,500 | 16,500 |
Ecuador | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 45,511 | 174,267 |
Ecuador | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 165,275 | 252,391 |
El Salvador | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 40,000 | 54,233 |
El Salvador | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 1,087 | 5,555 |
France | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 150,810 | 152,530 |
France | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 84,862 | 47,906 |
Germany | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 34,613 | |
Guatemala | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 281,485 | 278,557 |
Guatemala | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 43,845 | 44,200 |
Honduras | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 10,199 | 128,937 |
Honduras | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 345 | 300 |
Hong Kong | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 1,800 | 10,400 |
Jamaica | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 23,274 | 38,312 |
Luxembourg | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 50,000 | 59,813 |
Mexico | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 607,099 | 754,465 |
Mexico | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 4,995 | 27,377 |
Panama | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 241,097 | 268,356 |
Panama | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 61,435 | 25,304 |
Paraguay | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 100,816 | 127,970 |
Paraguay | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 11,800 | 10,652 |
Peru | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 272,752 | 150,301 |
Peru | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 47,245 | 8,033 |
Singapore | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 75,095 | 90,955 |
Switzerland | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 10,000 | |
Trinidad and Tobago | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 165,995 | 181,676 |
United State of America | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 113,816 | 25,000 |
United Kingdom | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 10,409 | |
Uruguay | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 619 | |
Uruguay | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 33,955 | |
1-4 | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 2,582,794 | 2,928,401 |
1-4 | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 247,425 | 167,241 |
5-6 | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 2,096,138 | 2,415,323 |
5-6 | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 237,807 | 183,568 |
7-8 | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 232,465 | 487,428 |
7-8 | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 154,032 | 258,245 |
10 | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 61,845 | |
Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 164,074 | 74,547 |
Securities at amortized cost | Brazil | ||
Financial Risk | ||
Loans, net | 41,128 | 1,500 |
Securities at amortized cost | Chile | ||
Financial Risk | ||
Loans, net | 11,992 | |
Securities at amortized cost | Colombia | ||
Financial Risk | ||
Loans, net | 29,998 | 15,338 |
Securities at amortized cost | Mexico | ||
Financial Risk | ||
Loans, net | 43,910 | 21,505 |
Securities at amortized cost | Panama | ||
Financial Risk | ||
Loans, net | 10,399 | 36,204 |
Securities at amortized cost | Peru | ||
Financial Risk | ||
Loans, net | 26,647 | |
Securities at amortized cost | 1-4 | ||
Financial Risk | ||
Loans, net | 108,505 | 73,047 |
Securities at amortized cost | 5-6 | ||
Financial Risk | ||
Loans, net | 55,569 | 1,500 |
Securities at FVOCI | ||
Financial Risk | ||
Loans, net | 231,348 | 5,094 |
Securities at FVOCI | Chile | ||
Financial Risk | ||
Loans, net | 28,972 | 5,094 |
Securities at FVOCI | United State of America | ||
Financial Risk | ||
Loans, net | 89,794 | |
Securities at FVOCI | Multinational | ||
Financial Risk | ||
Loans, net | 112,582 | |
Securities at FVOCI | 1-4 | ||
Financial Risk | ||
Loans, net | 231,348 | 5,094 |
Cost [member] | Loans at amortized cost | ||
Financial Risk | ||
Loans, net | 4,911,397 | 5,892,997 |
Cost [member] | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | 74,366 | 115,682 |
Cost [member] | Securities at amortized cost | ||
Financial Risk | ||
Loans, net | 164,074 | 74,547 |
Cost [member] | Securities at FVOCI | Customers' liabilities under acceptances | ||
Financial Risk | ||
Loans, net | 231,348 | 5,094 |
Amount Committed or Guaranteed | Loan commitments and financial guarantees contracts | ||
Financial Risk | ||
Loans, net | $ 564,898 | $ 493,372 |
Financial Risk (Details 13)
Financial Risk (Details 13) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts of assets | $ 27,778 | $ 11,157 |
Net amount of assets presented in the consolidated statement of financial position | 27,778 | 11,157 |
Gross amounts not offset in the consolidated statement of financial position | ||
Cash collateral received | (24,720) | (9,350) |
Net Amount | 3,058 | 1,807 |
Derivative financial instruments used for hedging | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts of assets | 27,778 | 11,157 |
Net amount of assets presented in the consolidated statement of financial position | 27,778 | 11,157 |
Gross amounts not offset in the consolidated statement of financial position | ||
Cash collateral received | (24,720) | (9,350) |
Net Amount | $ 3,058 | $ 1,807 |
Financial Risk (Details 14)
Financial Risk (Details 14) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of offsetting of financial liabilities [line items] | ||
Gross amounts of liabilities | $ (19,874) | $ (55,205) |
Net amount of liabilities presented in the consolidated statement of financial position | (19,874) | (55,205) |
Gross amounts not offset in the consolidated statement of financial position | ||
Financial instruments | 11,998 | 41,937 |
Cash collateral pledged | 7,804 | 14,952 |
Net Amount | (72) | 1,684 |
Securities sold under repurchase agreements | ||
Disclosure of offsetting of financial liabilities [line items] | ||
Gross amounts of liabilities | (10,663) | (40,530) |
Net amount of liabilities presented in the consolidated statement of financial position | (10,663) | (40,530) |
Gross amounts not offset in the consolidated statement of financial position | ||
Financial instruments | 11,998 | 41,937 |
Cash collateral pledged | 18 | 320 |
Net Amount | 1,353 | 1,727 |
Derivative financial instruments used for hedging | ||
Disclosure of offsetting of financial liabilities [line items] | ||
Gross amounts of liabilities | (9,211) | (14,675) |
Net amount of liabilities presented in the consolidated statement of financial position | (9,211) | (14,675) |
Gross amounts not offset in the consolidated statement of financial position | ||
Cash collateral pledged | 7,786 | 14,632 |
Net Amount | $ (1,425) | $ (43) |
Financial Risk (Details 15)
Financial Risk (Details 15) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | ||
Net liquid assets ratio | 249.42% | 52.48% |
Average | ||
Disclosure of financial assets [line items] | ||
Net liquid assets ratio | 115.98% | 37.82% |
Maximum | ||
Disclosure of financial assets [line items] | ||
Net liquid assets ratio | 249.42% | 53.38% |
Minimum | ||
Disclosure of financial assets [line items] | ||
Net liquid assets ratio | 53.26% | 23.23% |
Financial Risk (Details 16)
Financial Risk (Details 16) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Liquid assets | $ 1,048 | $ 1,160 |
Securities at FVOCI | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 202 | |
Total (Member) | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 846 | |
United State of America | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 740 | 1,132 |
United State of America | Securities at FVOCI | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 90 | |
United State of America | Total (Member) | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 830 | |
Other countries O.E.C.D | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 100 | 4 |
Latin America | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 6 | 4 |
Other Countries | ||
Disclosure of financial assets [line items] | ||
Liquid assets | $ 20 | |
Multinational | ||
Disclosure of financial assets [line items] | ||
Liquid assets | 112 | |
Multinational | Securities at FVOCI | ||
Disclosure of financial assets [line items] | ||
Liquid assets | $ 112 |
Financial Risk (Details 17)
Financial Risk (Details 17) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Liquidity risk | ||
Demands liabilities and overnight | $ 171 | $ 86 |
% Demands liabilities and overnight of total deposits | 5.44% | 2.97% |
Total liquid assets | $ 1,048 | $ 1,160 |
% Total assets of total liabilities | 33.40% | 40.15% |
% Total liquid assets in the U.S. Federal Reserve | 65.68% | 97.37% |
United State of America | ||
Liquidity risk | ||
Total liquid assets | $ 740 | $ 1,132 |
Financial Risk (Details 18)
Financial Risk (Details 18) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Risk | ||
Loan portfolio and investment portfolio less than/equal to 1 year according to its original term | $ 3,114 | $ 3,485 |
Average term (days) | 195 days | 189 days |
Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms | $ 2,193 | $ 2,497 |
Average term (days) | 1382 days | 1185 days |
Financial Risk (Details 19)
Financial Risk (Details 19) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and due from banks | $ 863,812 | $ 1,178,170 | ||
Securities and other financial assets, net | 398,068 | 88,794 | ||
Loans at amortized cost | 5,892,997 | |||
Derivative financial instruments - assets | 27,778 | 11,157 | ||
Liabilities | ||||
Deposits | (3,140,875) | (2,893,555) | ||
Securities sold under repurchase agreements | (10,663) | (40,530) | ||
Borrowings and debt, net | (1,985,070) | (3,138,310) | $ (3,518,446) | $ (2,211,567) |
Derivative financial instruments - liabilities | (9,211) | (14,675) | ||
Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 863,812 | 1,178,170 | ||
Securities and other financial assets, net | 398,068 | 88,794 | ||
Loans at amortized cost | 4,896,647 | 5,823,333 | ||
Derivative financial instruments - assets | 27,778 | 11,157 | ||
Total | 6,186,305 | 7,101,454 | ||
Liabilities | ||||
Deposits | (3,140,875) | (2,893,555) | ||
Securities sold under repurchase agreements | (10,663) | (40,530) | ||
Borrowings and debt, net | (1,994,245) | (3,148,864) | ||
Derivative financial instruments - liabilities | (9,211) | (14,675) | ||
Total | (5,154,994) | (6,097,624) | ||
Contingencies | ||||
Confirmed letters of credit | 216,782 | 169,320 | ||
Stand-by letters of credit and guarantees | 210,497 | 255,481 | ||
Credit commitments | 137,619 | 68,571 | ||
Total | 564,898 | 493,372 | ||
Net position | 466,413 | 510,458 | ||
Up to 3 months | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 863,831 | 1,178,288 | ||
Securities and other financial assets, net | 11,541 | 16,684 | ||
Loans at amortized cost | 1,712,049 | 1,960,381 | ||
Derivative financial instruments - assets | 0 | 0 | ||
Total | 2,587,421 | 3,155,353 | ||
Liabilities | ||||
Deposits | (2,678,292) | (2,574,180) | ||
Securities sold under repurchase agreements | 0 | (40,691) | ||
Borrowings and debt, net | (166,034) | (1,407,612) | ||
Derivative financial instruments - liabilities | (3,020) | (2,425) | ||
Total | (2,847,346) | (4,024,908) | ||
Contingencies | ||||
Confirmed letters of credit | 167,301 | 84,235 | ||
Stand-by letters of credit and guarantees | 35,041 | 35,906 | ||
Credit commitments | 0 | 0 | ||
Total | 202,342 | 120,141 | ||
Net position | (462,267) | (989,696) | ||
3 to 6 months | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Securities and other financial assets, net | 20,961 | 6,457 | ||
Loans at amortized cost | 998,923 | 967,594 | ||
Derivative financial instruments - assets | 119 | 625 | ||
Total | 1,020,003 | 974,676 | ||
Liabilities | ||||
Deposits | (166,832) | (198,786) | ||
Securities sold under repurchase agreements | (5,784) | 0 | ||
Borrowings and debt, net | (60,816) | (451,736) | ||
Derivative financial instruments - liabilities | (1,081) | (775) | ||
Total | (234,513) | (651,297) | ||
Contingencies | ||||
Confirmed letters of credit | 29,466 | 77,493 | ||
Stand-by letters of credit and guarantees | 106,943 | 95,440 | ||
Credit commitments | 0 | 0 | ||
Total | 136,409 | 172,933 | ||
Net position | 649,081 | 150,446 | ||
6 months to 1 year | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Securities and other financial assets, net | 60,311 | 7,293 | ||
Loans at amortized cost | 1,255,069 | 1,207,469 | ||
Derivative financial instruments - assets | 129 | 0 | ||
Total | 1,315,509 | 1,214,762 | ||
Liabilities | ||||
Deposits | (293,306) | (122,680) | ||
Securities sold under repurchase agreements | (4,977) | 0 | ||
Borrowings and debt, net | (456,932) | (230,776) | ||
Derivative financial instruments - liabilities | (71) | (1,711) | ||
Total | (755,286) | (355,167) | ||
Contingencies | ||||
Confirmed letters of credit | 20,015 | 7,592 | ||
Stand-by letters of credit and guarantees | 55,963 | 114,078 | ||
Credit commitments | 4,286 | 0 | ||
Total | 80,264 | 121,670 | ||
Net position | 479,959 | 737,925 | ||
After 1 year but within 5 years | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Securities and other financial assets, net | 312,027 | 54,544 | ||
Loans at amortized cost | 293,489 | 1,822,519 | ||
Derivative financial instruments - assets | 26,691 | 10,532 | ||
Total | 632,207 | 1,887,595 | ||
Liabilities | ||||
Deposits | (6,638) | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net | (1,425,806) | (1,147,699) | ||
Derivative financial instruments - liabilities | (5,039) | (12,014) | ||
Total | (1,437,483) | (1,159,713) | ||
Contingencies | ||||
Confirmed letters of credit | 0 | 0 | ||
Stand-by letters of credit and guarantees | 12,550 | 10,057 | ||
Credit commitments | 133,333 | 68,571 | ||
Total | 145,883 | 78,628 | ||
Net position | (951,159) | 649,254 | ||
More than 5 years | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 0 | 0 | ||
Securities and other financial assets, net | 0 | 6,492 | ||
Loans at amortized cost | 1,156,625 | 150,742 | ||
Derivative financial instruments - assets | 839 | 0 | ||
Total | 1,157,464 | 157,234 | ||
Liabilities | ||||
Deposits | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net | (24,922) | (13,422) | ||
Total | (24,922) | (13,422) | ||
Contingencies | ||||
Confirmed letters of credit | 0 | 0 | ||
Stand-by letters of credit and guarantees | 0 | 0 | ||
Credit commitments | 0 | 0 | ||
Total | 0 | |||
Net position | 1,132,542 | 143,812 | ||
Gross Inflow (Outflow) | Liquidity risk [member] | ||||
Assets | ||||
Cash and due from banks | 863,831 | 1,178,288 | ||
Securities and other financial assets, net | 404,840 | 91,470 | ||
Loans at amortized cost | 5,416,155 | 6,108,705 | ||
Derivative financial instruments - assets | 27,778 | 11,157 | ||
Total | 6,712,604 | 7,389,620 | ||
Liabilities | ||||
Deposits | (3,145,068) | (2,895,646) | ||
Securities sold under repurchase agreements | (10,761) | (40,691) | ||
Borrowings and debt, net | (2,134,510) | (3,251,245) | ||
Derivative financial instruments - liabilities | (9,211) | (16,925) | ||
Total | (5,299,550) | (6,204,507) | ||
Contingencies | ||||
Confirmed letters of credit | 216,782 | 169,320 | ||
Stand-by letters of credit and guarantees | 210,497 | 255,481 | ||
Credit commitments | 137,619 | 68,571 | ||
Total | 564,898 | 493,372 | ||
Net position | $ 848,156 | $ 691,741 |
Financial Risk (Details 20)
Financial Risk (Details 20) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of assets [line items] | ||
Balance with Central Banks | $ 688,612 | $ 1,129,016 |
Cash and balances with other banks | 157,396 | 30,702 |
Total Liquidity reserves | 846,008 | 1,159,718 |
At fair value [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Balance with Central Banks | 688,612 | 1,129,016 |
Cash and balances with other banks | 157,396 | 30,702 |
Total Liquidity reserves | $ 846,008 | $ 1,159,718 |
Financial Risk (Details 21)
Financial Risk (Details 21) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets available to support future funding | ||
Guaranteed | $ 29,254 | $ 58,983 |
Available as collateral | 6,129,305 | 7,021,096 |
Cash and due from banks | ||
Financial assets available to support future funding | ||
Guaranteed | 17,804 | 18,452 |
Available as collateral | 846,008 | 1,159,718 |
Notional of investment securities | ||
Financial assets available to support future funding | ||
Guaranteed | 11,450 | 40,531 |
Available as collateral | 371,900 | 38,045 |
Loans at amortized cost | ||
Financial assets available to support future funding | ||
Available as collateral | $ 4,911,397 | $ 5,823,333 |
Financial Risk (Details 22)
Financial Risk (Details 22) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Securities and other financial assets | $ 398,068 | $ 88,794 | ||
Loans | 5,892,997 | |||
Liabilities | ||||
Securities sold under repurchase agreements | (10,663) | (40,530) | ||
Borrowings and debt, net | (1,985,070) | (3,138,310) | $ (3,518,446) | $ (2,211,567) |
Interest rate and foreign exchange risk | ||||
Assets | ||||
Demand deposits and time deposits | 863,812 | 1,170,092 | ||
Securities and other financial assets | 395,422 | 79,641 | ||
Loans | 4,916,346 | 5,892,997 | ||
Total assets | 6,175,580 | 7,142,730 | ||
Liabilities | ||||
Demand deposits and time deposits | (3,138,900) | (2,888,336) | ||
Securities sold under repurchase agreements | (10,663) | (40,530) | ||
Borrowings and debt, net | (1,985,070) | (3,138,310) | ||
Total liabilities | (5,134,633) | (6,067,176) | ||
Net effect of derivative financial instruments held for interest risk management | 16,503 | (5,768) | ||
Total interest rate sensitivity | 1,057,450 | 1,069,786 | ||
Interest rate risk | Up to 3 months | ||||
Assets | ||||
Demand deposits and time deposits | 859,481 | 1,170,092 | ||
Securities and other financial assets | 9,554 | 14,935 | ||
Loans | 3,468,477 | 4,031,432 | ||
Total assets | 4,337,512 | 5,216,459 | ||
Liabilities | ||||
Demand deposits and time deposits | (2,675,867) | (2,570,324) | ||
Securities sold under repurchase agreements | 0 | (40,530) | ||
Borrowings and debt, net | (1,103,703) | (2,534,382) | ||
Total liabilities | (3,779,570) | (5,145,236) | ||
Net effect of derivative financial instruments held for interest risk management | (3) | (2,425) | ||
Total interest rate sensitivity | 557,939 | 68,798 | ||
Interest rate risk | 3 to 6 months | ||||
Assets | ||||
Demand deposits and time deposits | 0 | 0 | ||
Securities and other financial assets | 9,139 | 6,351 | ||
Loans | 895,794 | 1,096,355 | ||
Total assets | 904,933 | 1,102,706 | ||
Liabilities | ||||
Demand deposits and time deposits | (166,317) | (197,300) | ||
Securities sold under repurchase agreements | (5,728) | 0 | ||
Borrowings and debt, net | (45,859) | (401,432) | ||
Total liabilities | (217,904) | (598,732) | ||
Net effect of derivative financial instruments held for interest risk management | (373) | (150) | ||
Total interest rate sensitivity | 686,656 | 503,824 | ||
Interest rate risk | 6 months to 1 year | ||||
Assets | ||||
Demand deposits and time deposits | 0 | 0 | ||
Securities and other financial assets | 55,960 | 5,055 | ||
Loans | 434,813 | 548,028 | ||
Total assets | 490,773 | 553,083 | ||
Liabilities | ||||
Demand deposits and time deposits | (290,000) | (120,419) | ||
Securities sold under repurchase agreements | (4,935) | 0 | ||
Borrowings and debt, net | (16,511) | (25,261) | ||
Total liabilities | (311,446) | (145,680) | ||
Net effect of derivative financial instruments held for interest risk management | 58 | (1,711) | ||
Total interest rate sensitivity | 179,385 | 405,692 | ||
Interest rate risk | After 1 year but within 5 years | ||||
Assets | ||||
Demand deposits and time deposits | 0 | 0 | ||
Securities and other financial assets | 320,769 | 53,300 | ||
Loans | 117,262 | 208,443 | ||
Total assets | 438,031 | 261,743 | ||
Liabilities | ||||
Demand deposits and time deposits | (6,500) | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net | (794,522) | (157,321) | ||
Total liabilities | (801,022) | (157,321) | ||
Net effect of derivative financial instruments held for interest risk management | 15,982 | (1,482) | ||
Total interest rate sensitivity | (347,009) | 102,940 | ||
Interest rate risk | More than 5 years | ||||
Assets | ||||
Demand deposits and time deposits | 0 | 0 | ||
Securities and other financial assets | 0 | 0 | ||
Loans | 0 | 8,739 | ||
Total assets | 0 | 8,739 | ||
Liabilities | ||||
Demand deposits and time deposits | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net | (24,475) | 0 | ||
Total liabilities | (24,475) | 0 | ||
Net effect of derivative financial instruments held for interest risk management | 839 | 0 | ||
Total interest rate sensitivity | (23,636) | 8,739 | ||
Non Interest bearing | ||||
Assets | ||||
Demand deposits and time deposits | 4,331 | 0 | ||
Securities and other financial assets | 0 | 0 | ||
Loans | 0 | 0 | ||
Total assets | 4,331 | 0 | ||
Liabilities | ||||
Demand deposits and time deposits | (216) | (293) | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net | 0 | (19,914) | ||
Total liabilities | (216) | (20,207) | ||
Net effect of derivative financial instruments held for interest risk management | 0 | 0 | ||
Total interest rate sensitivity | $ 4,115 | $ (20,207) |
Financial Risk (Details 23)
Financial Risk (Details 23) - Interest rate, measurement input [member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sensitivity to an increase or decrease in market interest rates | ||
Increase in interest rate | 50.00% | 50.00% |
Decrease in interest rate | (50.00%) | (50.00%) |
Increase in income | $ 1,182 | $ 3,064 |
Decrease in income | (5,161) | (3,064) |
Decrease in equity | 16,618 | 7,461 |
Increase in equity | $ 107 | $ (7,461) |
Financial Risk (Details 24)
Financial Risk (Details 24) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Assets | ||||
Cash and due from banks | $ 863,812 | $ 1,178,170 | ||
Loans | 5,892,997 | |||
Total asset | 6,288,898 | 7,249,666 | $ 7,609,185 | |
Liabilities | ||||
Borrowings and debt | (1,985,070) | (3,138,310) | (3,518,446) | $ (2,211,567) |
Total liabilities | (5,250,978) | (6,233,499) | $ (6,615,595) | |
Foreign exchange risk | ||||
Assets | ||||
Cash and due from banks | 1,810 | 4,630 | ||
Loans | 182,395 | 473,729 | ||
Total asset | 184,205 | 478,359 | ||
Liabilities | ||||
Borrowings and debt | (183,863) | (478,038) | ||
Total liabilities | (183,863) | (478,038) | ||
Net currency position | $ 342 | $ 321 | ||
Brazilian Real | Foreign exchange risk | ||||
Exposure to currency risk | ||||
Exchange rate | 5.19 | 4.02 | ||
Assets | ||||
Cash and due from banks | $ 81 | $ 274 | ||
Loans | 0 | 0 | ||
Total asset | 81 | 274 | ||
Liabilities | ||||
Borrowings and debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net currency position | $ 81 | $ 274 | ||
European Euro | Foreign exchange risk | ||||
Exposure to currency risk | ||||
Exchange rate | 1.22 | 1.12 | ||
Assets | ||||
Cash and due from banks | $ 13 | $ 17 | ||
Loans | 0 | 0 | ||
Total asset | 13 | 17 | ||
Liabilities | ||||
Borrowings and debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net currency position | $ 13 | $ 17 | ||
Japanese Yen | Foreign exchange risk | ||||
Exposure to currency risk | ||||
Exchange rate | 103.23 | 108.67 | ||
Assets | ||||
Cash and due from banks | $ 1 | $ 4 | ||
Loans | 0 | 0 | ||
Total asset | 1 | 4 | ||
Liabilities | ||||
Borrowings and debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net currency position | $ 1 | $ 4 | ||
Colombian Peso | Foreign exchange risk | ||||
Exposure to currency risk | ||||
Exchange rate | 3,430.19 | 3,287.50 | ||
Assets | ||||
Cash and due from banks | $ 20 | $ 34 | ||
Loans | 0 | 0 | ||
Total asset | 20 | 34 | ||
Liabilities | ||||
Borrowings and debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net currency position | $ 20 | $ 34 | ||
Mexican Peso | Foreign exchange risk | ||||
Exposure to currency risk | ||||
Exchange rate | 19.92 | 18.88 | ||
Assets | ||||
Cash and due from banks | $ 1,615 | $ 4,243 | ||
Loans | 182,395 | 473,729 | ||
Total asset | 184,010 | 477,972 | ||
Liabilities | ||||
Borrowings and debt | (183,863) | (478,038) | ||
Total liabilities | (183,863) | (478,038) | ||
Net currency position | 147 | (66) | ||
Other Currencies | Foreign exchange risk | ||||
Assets | ||||
Cash and due from banks | 80 | 58 | ||
Loans | 0 | 0 | ||
Total asset | 80 | 58 | ||
Liabilities | ||||
Borrowings and debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Net currency position | $ 80 | $ 58 |
Financial risk management (Deta
Financial risk management (Details) | 12 Months Ended |
Dec. 31, 2020item | |
Financial risk management | |
Maturing horizon of review of transactions | 90 days |
Percentage of placements in investment grade countries | 58.00% |
Percentage of short-term portfolio profile maturing within 1 year | 61.00% |
Number of individual country risk analyses | 40 |
Number of comprehensive country risk analyses at the beginning of the pandemic | 20 |
Percentage of staff working remotely | 100.00% |
Fair value of financial instr_3
Fair value of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Fair value of financial instruments [Line Items] | |||
Total financial assets at fair value through profit or loss | $ 4,949 | $ 6,492 | $ 0 |
Total derivative financial instrument -assets | 27,778 | 11,157 | |
Total securities and other financial assets | 236,297 | 13,475 | |
Securities and other financial assets, net | 398,068 | 88,794 | |
Total financial assets at fair value | 264,075 | 24,632 | |
Total derivative financial instrument - liabilities | 9,211 | 14,675 | |
Total financial liabilities at fair value | 9,211 | 14,675 | |
Debt securities [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total financial assets at fair value through profit or loss | 4,949 | 6,492 | |
Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total securities and other financial assets | 0 | 0 | |
Total financial assets at fair value | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 1 of fair value hierarchy [member] | Debt securities [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total financial assets at fair value through profit or loss | 0 | 0 | |
Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 27,778 | 11,157 | |
Total securities and other financial assets | 231,348 | 6,983 | |
Total financial assets at fair value | 259,126 | 18,140 | |
Total derivative financial instrument - liabilities | 9,211 | 14,675 | |
Total financial liabilities at fair value | 9,211 | 14,675 | |
Level 2 of fair value hierarchy [member] | Debt securities [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total financial assets at fair value through profit or loss | 0 | 0 | |
Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total securities and other financial assets | 4,949 | 6,492 | |
Total financial assets at fair value | 4,949 | 6,492 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Total financial liabilities at fair value | 0 | 0 | |
Level 3 | Debt securities [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total financial assets at fair value through profit or loss | 4,949 | 6,492 | |
Interest rate swaps [Member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 1,831 | 407 | |
Total derivative financial instrument - liabilities | 1,774 | 1,903 | |
Interest rate swaps [Member] | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Interest rate swaps [Member] | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 1,831 | 407 | |
Total derivative financial instrument - liabilities | 1,774 | 1,903 | |
Interest rate swaps [Member] | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Cross-currency interest rate swaps [Member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 25,947 | 10,125 | |
Total derivative financial instrument - liabilities | 3,848 | 10,197 | |
Cross-currency interest rate swaps [Member] | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Cross-currency interest rate swaps [Member] | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 25,947 | 10,125 | |
Total derivative financial instrument - liabilities | 3,848 | 10,197 | |
Cross-currency interest rate swaps [Member] | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Foreign exchange forwards | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 625 | |
Total derivative financial instrument - liabilities | 3,589 | 2,575 | |
Foreign exchange forwards | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Foreign exchange forwards | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 625 | |
Total derivative financial instrument - liabilities | 3,589 | 2,575 | |
Foreign exchange forwards | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Total derivative financial instrument -assets | 0 | 0 | |
Total derivative financial instrument - liabilities | 0 | 0 | |
Securities at FVOCI - Corporate debt | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 226,235 | ||
Securities at FVOCI - Corporate debt | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 0 | ||
Securities at FVOCI - Corporate debt | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 226,235 | ||
Securities at FVOCI - Corporate debt | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 0 | ||
Securities at FVOCI - Sovereign debt | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 5,113 | 5,094 | |
Securities at FVOCI - Sovereign debt | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 0 | 0 | |
Securities at FVOCI - Sovereign debt | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 5,113 | 5,094 | |
Securities at FVOCI - Sovereign debt | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | $ 0 | 0 | |
Equity instrument at FVOCI | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 1,889 | ||
Equity instrument at FVOCI | Level 1 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 0 | ||
Equity instrument at FVOCI | Level 2 of fair value hierarchy [member] | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | 1,889 | ||
Equity instrument at FVOCI | Level 3 | |||
Disclosure of Fair value of financial instruments [Line Items] | |||
Financial assets at fair value through profit or loss | $ 0 |
Fair value of financial instr_4
Fair value of financial instruments - Carrying value and an estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | $ 863,812 | $ 1,178,170 | ||
Securities at amortized cost (1) | 165,564 | 75,271 | ||
Loans at amortized cost, net (2) | 4,896,647 | 5,823,333 | ||
Customers' liabilities under acceptances | 74,366 | 115,682 | ||
Investment properties | 3,214 | 3,494 | ||
Deposits | 3,140,875 | 2,893,555 | ||
Securities sold under repurchase agreements | 10,663 | 40,530 | ||
Borrowings and debt, net (3) | 1,985,070 | 3,138,310 | $ 3,518,446 | $ 2,211,567 |
Acceptance outstanding | 74,366 | 115,682 | ||
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | 863,812 | 1,178,170 | ||
Securities at amortized cost (1) | 165,564 | 75,271 | ||
Loans at amortized cost, net (2) | 4,891,698 | 5,823,333 | ||
Customers' liabilities under acceptances | 74,366 | 115,682 | ||
Investment properties | 3,214 | 3,494 | ||
Deposits | 3,140,875 | 2,893,555 | ||
Securities sold under repurchase agreements | 10,663 | 40,530 | ||
Borrowings and debt, net (3) | 1,966,271 | 3,118,396 | ||
Acceptance outstanding | 74,366 | 115,682 | ||
At fair value [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | 863,812 | 1,178,170 | ||
Securities at amortized cost (1) | 168,110 | 75,724 | ||
Loans at amortized cost, net (2) | 4,972,599 | 6,162,885 | ||
Customers' liabilities under acceptances | 74,366 | 115,682 | ||
Investment properties | 3,214 | 3,494 | ||
Deposits | 3,140,875 | 2,893,555 | ||
Securities sold under repurchase agreements | 10,663 | 40,530 | ||
Borrowings and debt, net (3) | 1,989,719 | 3,126,333 | ||
Acceptance outstanding | 74,366 | 115,682 | ||
Level 1 of fair value hierarchy [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | 0 | 0 | ||
Securities at amortized cost (1) | 0 | 0 | ||
Loans at amortized cost, net (2) | 0 | 0 | ||
Deposits | 0 | 0 | ||
Level 1 of fair value hierarchy [member] | At fair value [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Customers' liabilities under acceptances | 0 | 0 | ||
Investment properties | 0 | 0 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net (3) | 0 | 0 | ||
Acceptance outstanding | 0 | 0 | ||
Level 2 of fair value hierarchy [member] | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | 863,812 | 1,178,170 | ||
Securities at amortized cost (1) | 157,698 | 56,914 | ||
Loans at amortized cost, net (2) | 4,972,599 | 6,101,040 | ||
Deposits | 3,140,875 | 2,893,555 | ||
Level 2 of fair value hierarchy [member] | At fair value [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Customers' liabilities under acceptances | 74,366 | 115,682 | ||
Securities sold under repurchase agreements | 10,663 | 40,530 | ||
Borrowings and debt, net (3) | 1,989,719 | 3,126,333 | ||
Acceptance outstanding | 74,366 | 115,682 | ||
Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Cash and deposits on banks | 0 | 0 | ||
Securities at amortized cost (1) | 10,412 | 18,810 | ||
Loans at amortized cost, net (2) | 0 | 61,845 | ||
Deposits | 0 | 0 | ||
Level 3 | At fair value [member] | ||||
Disclosure of Fair value of financial instruments [Line Items] | ||||
Customers' liabilities under acceptances | 0 | 0 | ||
Investment properties | 3,214 | 3,494 | ||
Securities sold under repurchase agreements | 0 | 0 | ||
Borrowings and debt, net (3) | 0 | 0 | ||
Acceptance outstanding | $ 0 | $ 0 |
Fair value of financial instr_5
Fair value of financial instruments - Level 3 - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Fair value of financial instruments [Line Items] | ||
Balance at the beginning | $ 6,492 | $ 0 |
Additions | 7,183 | 8,750 |
Net changes in fair value | (2,976) | (2,258) |
Sales | (5,750) | 0 |
Balance at the end | 4,949 | 6,492 |
Loans | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Balance at the beginning | 0 | |
Balance at the end | 4,949 | 0 |
At fair value through profit or loss | Level 3 | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Sales | 5,800 | |
Balance at the end | 4,900 | |
At fair value through profit or loss | Debt instruments | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Balance at the beginning | 6,492 | 0 |
Additions | 1,433 | 8,750 |
Net changes in fair value | (2,175) | (2,258) |
Sales | (5,750) | 0 |
Balance at the end | 0 | 6,492 |
At fair value through profit or loss | Loans | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Balance at the beginning | 0 | 0 |
Additions | 5,750 | 0 |
Net changes in fair value | (801) | 0 |
Sales | 0 | 0 |
Balance at the end | $ 4,949 | $ 0 |
Fair value of financial instr_6
Fair value of financial instruments - Fair value measurement sensitivity to unobservable inputs (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Volatility | Minimum | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
A significant increase would result in a lower fair value | 3.128% | |
Volatility | Maximum | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
A significant increase would result in a lower fair value | 8.89% | |
Level 3 | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Description of sensitivity of fair value measurement to changes in unobservable inputs, assets | A significant increase in volatility would result in a lower fair value | |
Level 3 | Volatility | Minimum | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
A significant increase would result in a lower fair value | 10.00% | 12.97% |
Level 3 | Volatility | Maximum | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
A significant increase would result in a lower fair value | 20.00% | 27.50% |
Fair value of financial instr_7
Fair value of financial instruments - Effect of unobservable inputs on fair value measurement (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Positive Effect On Fair Value Measurements [Member] | |
Disclosure of Fair value of financial instruments [Line Items] | |
Change in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ (149) |
Negative Effect On Fair Value Measurements [Member] | |
Disclosure of Fair value of financial instruments [Line Items] | |
Change in fair value measurement due to change in one or more unobservable inputs to reflect reasonably possible alternative assumptions, assets | $ 154 |
Fair value of financial instr_8
Fair value of financial instruments - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Fair value of financial instruments [Line Items] | ||
Interest receivable Loans | $ 7 | |
Unearned interest and deferred fees | 0 | |
Lease liabilities excluded | 18,700,000 | $ 19,900,000 |
Loan Commitments | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Interest receivable Loans | 27,300,000 | 41,700,000 |
Allowance for loans losses | 41,100,000 | 99,300,000 |
Unearned interest and deferred fees | 5,800,000 | 12,100,000 |
Securities at amortized cost | ||
Disclosure of Fair value of financial instruments [Line Items] | ||
Interest receivable Loans | 1,900,000 | 800,000 |
Allowance for loans losses | $ 400,000 | $ 100,000 |
Cash and due from banks (Detail
Cash and due from banks (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and due from banks | ||||
Cash and due from banks | $ 4,331 | $ 8,078 | ||
Interest-bearing deposits in banks | 859,481 | 1,170,092 | ||
Total | 863,812 | 1,178,170 | ||
Less: | ||||
Pledged Deposits | 17,804 | 18,452 | ||
Total cash and due from banks | $ 846,008 | $ 1,159,718 | $ 1,706,192 | $ 618,807 |
Cash and due from banks - Break
Cash and due from banks - Breakdown of pledged deposits by country risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest-Bearing Deposits In Banks | ||
Short-term deposits, classified as cash equivalents | $ 859,481 | $ 1,170,092 |
Pledged deposits | ||
Other cash and cash equivalents | $ 17,804 | $ 18,452 |
Pledged Deposits Interest Rate Percentage | 0.09% | 1.55% |
Time deposits [Member] | ||
Interest-Bearing Deposits In Banks | ||
Short-term deposits, classified as cash equivalents | $ 110,000 | $ 20,000 |
Deposit Interest Rate Percentage | 0.00% | 0.00% |
Demand Deposit [Member] | ||
Interest-Bearing Deposits In Banks | ||
Short-term deposits, classified as cash equivalents | $ 749,481 | $ 1,150,092 |
Demand Deposit [Member] | Minimum | ||
Interest-Bearing Deposits In Banks | ||
Deposit Interest Rate Percentage | 0.03% | 1.55% |
Demand Deposit [Member] | Maximum | ||
Interest-Bearing Deposits In Banks | ||
Deposit Interest Rate Percentage | 3.08% | 5.10% |
NEW YORK | ||
Pledged deposits | ||
Other cash and cash equivalents | $ 10,000 | $ 3,500 |
NETHERLANDS | ||
Pledged deposits | ||
Other cash and cash equivalents | 334 | |
SPAIN | ||
Pledged deposits | ||
Other cash and cash equivalents | 18 | |
France | ||
Pledged deposits | ||
Other cash and cash equivalents | 50 | 1,770 |
Japan | ||
Pledged deposits | ||
Other cash and cash equivalents | 1,330 | 1,470 |
United Kingdom | ||
Pledged deposits | ||
Other cash and cash equivalents | 130 | |
Switzerland | ||
Pledged deposits | ||
Other cash and cash equivalents | 3,027 | 9,567 |
United State of America | ||
Pledged deposits | ||
Other cash and cash equivalents | 11,515 | $ 5,645 |
Mexico | ||
Pledged deposits | ||
Other cash and cash equivalents | 790 | |
Canada | ||
Pledged deposits | ||
Other cash and cash equivalents | $ 610 |
Securities and other financia_3
Securities and other financial assets, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized cost | $ 165,564 | $ 75,271 | |
With changes in other comprehensive income recyclable to profit and loss | (232,461) | (5,142) | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 1,889 | |
With changes in profit or loss | 4,949 | 6,492 | $ 0 |
Total securities and other financial assets, net | 398,025 | 88,794 | |
Balance - principal | |||
Amortized cost | 164,074 | 74,547 | |
With changes in other comprehensive income recyclable to profit and loss | 231,348 | 5,094 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 1,889 | |
With changes in profit or loss | 0 | 6,492 | |
Total securities and other financial assets, net | 395,422 | 88,022 | |
Interest [Member] | |||
Amortized cost | 1,985 | 837 | |
With changes in other comprehensive income recyclable to profit and loss | 1,156 | 48 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 0 | |
With changes in profit or loss | 0 | 0 | |
Total securities and other financial assets, net | 3,141 | 885 | |
Reserves [Member] | |||
Amortized cost | (495) | (113) | |
With changes in other comprehensive income recyclable to profit and loss | (43) | 0 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 0 | |
Total securities and other financial assets, net | $ (538) | $ (113) |
Securities and other financia_4
Securities and other financial assets, net (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortized cost | $ 165,564 | $ 75,271 | |
With changes in other comprehensive income recyclable to profit and loss | (232,461) | (5,142) | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 1,889 | |
With changes in profit or loss | 4,949 | 6,492 | $ 0 |
Total securities and other financial assets, net | 398,025 | 88,794 | |
Due within 1 year | |||
Amortized cost | 40,625 | 28,295 | |
With changes in other comprehensive income recyclable to profit and loss | 34,027 | 0 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 1,889 | |
With changes in profit or loss | 0 | 0 | |
Total securities and other financial assets, net | 74,652 | 30,184 | |
After 1 year but within 5 years | |||
Amortized cost | 123,449 | 46,252 | |
With changes in other comprehensive income recyclable to profit and loss | 197,321 | 5,094 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 0 | |
With changes in profit or loss | 0 | 0 | |
Total securities and other financial assets, net | 320,770 | 51,346 | |
After 5 years but within 10 years | |||
Amortized cost | 0 | 0 | |
With changes in other comprehensive income recyclable to profit and loss | 0 | 0 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 0 | |
With changes in profit or loss | 0 | 0 | |
Total securities and other financial assets, net | 0 | 0 | |
Non maturity | |||
Amortized cost | 0 | 0 | |
With changes in other comprehensive income recyclable to profit and loss | 0 | 0 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 0 | |
With changes in profit or loss | 0 | 6,492 | |
Total securities and other financial assets, net | 0 | 6,492 | |
Balance - principal | |||
Amortized cost | 164,074 | 74,547 | |
With changes in other comprehensive income recyclable to profit and loss | 231,348 | 5,094 | |
With changes in other comprehensive income non-recyclable to profit and loss | 0 | 1,889 | |
With changes in profit or loss | 0 | 6,492 | |
Total securities and other financial assets, net | $ 395,422 | $ 88,022 |
Securities and other financia_5
Securities and other financial assets, net (Details 2) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
IFRS Statement [Line Items] | ||
Securities pledged to secure repurchase transactions | $ 11,998 | $ 41,937 |
Securities sold under repurchase agreements | (10,663) | (40,530) |
Amortised cost | ||
IFRS Statement [Line Items] | ||
Securities pledged to secure repurchase transactions | 11,998 | 36,843 |
Securities sold under repurchase agreements | (10,663) | (35,647) |
Fair value | ||
IFRS Statement [Line Items] | ||
Securities pledged to secure repurchase transactions | 0 | 5,094 |
Securities sold under repurchase agreements | $ 0 | $ (4,883) |
Securities and other financia_6
Securities and other financial assets, net (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securities and other financial assets, net | |||
Realized gain on sale of securities | $ 266 | $ 194 | |
Realized loss on sale of securities | (80) | 0 | |
Net gain on sale of securities at FVOCI | $ 0 | $ 186 | $ 194 |
Securities and other financia_7
Securities and other financial assets, net (Details Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Securities and other financial assets, net | ||
Number of shares sold | 261,164 | 767,301 |
Cumulative fair value of the shares sold | $ 1,700 | $ 4,800 |
Cumulative loss recognized in OCI | $ 602 | $ 151 |
Loans (Details)
Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Loans at amortized cost | $ 5,892,997,000 | ||
Unearned interest and deferred fees | $ 0 | ||
Loans at fair value through profit or loss (1) | 4,949,000 | 6,492,000 | $ 0 |
Sales | (5,750,000) | 0 | |
Loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans at amortized cost | 4,911,397,000 | 5,892,997,000 | |
Interest receivable | 27,350,000 | 41,757,000 | |
Loss allowances | (41,165,000) | (99,307,000) | |
Unearned interest and deferred fees | (5,884,000) | (12,114,000) | |
Loans at amortized cost, net | 4,891,698,000 | 5,823,333,000 | |
Loans at fair value through profit or loss (1) | 4,949,000 | 0 | |
Loans, net | 4,896,647,000 | 5,823,333,000 | |
At fair value through profit or loss | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans at amortized cost | 4,916,346,000 | ||
At fair value through profit or loss | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans at fair value through profit or loss (1) | 4,900,000 | ||
Sales | 5,800,000 | ||
At fair value through profit or loss | Loans | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans at fair value through profit or loss (1) | 4,949,000 | 0 | $ 0 |
Sales | $ 0 | $ 0 |
Loans (Details 1)
Loans (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Loans. | $ 4,896,647 | $ 5,823,333 |
Cost [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans. | 4,916,346 | 5,892,997 |
Fixed interest rate [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans. | 2,544,544 | 2,757,333 |
Floating interest rate [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Loans. | $ 2,371,802 | $ 3,135,664 |
Loans (Details Textual)
Loans (Details Textual) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed interest rate [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Percentage of loan portfolio at fixed interest rate maturing in not more than one hundred and eight days | 41.00% | 74.00% |
Annual interest rate [Member] | Minimum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest rate fluctuations of loans at amortized cost, financial assets | 0.43% | 1.20% |
Annual interest rate [Member] | Maximum | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest rate fluctuations of loans at amortized cost, financial assets | 9.70% | 13.93% |
Loans (Details 2)
Loans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Class A and B shareholder loans | $ 4,896,647 | $ 5,823,333 |
Class A and B shareholders | ||
Disclosure of detailed information about financial instruments [line items] | ||
Class A and B shareholder loans | $ 522,316 | $ 664,447 |
% Loans with class A and B shareholders over total loan portfolio | 11.00% | 11.00% |
% Class A and B stockholders with loans over number of class A and B stockholders | 12.00% | 11.00% |
Loans (Details 3)
Loans (Details 3) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loans | |
Gross carrying amount before modification | $ 8,829 |
Allowance loss before modification (1) | (1,796) |
Net amortized cost before modification | 7,033 |
Gross carrying amount after modification | 8,829 |
Allowance loss after modification | (1,802) |
Net amortized cost after modification | 7,027 |
Sale of the Stage 3 impaired loan and Stage 2 loan | 11,600 |
Increase in credit risk | 13,200 |
Write-off against reserves | $ 56,100 |
Loans (Details 4)
Loans (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans | |||
Assignments and Participations | $ 15,000 | $ 61,667 | |
Gains (losses) | $ 0 | $ 21 | $ (625) |
Loan commitments and financia_3
Loan commitments and financial guarantees contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of loans commitments and financial guarantees contracts [Line Items] | ||
Loan commitments and financial guarantee contracts | $ 564,898 | $ 493,372 |
Documentary letters of credit [Member] | ||
Disclosure of loans commitments and financial guarantees contracts [Line Items] | ||
Loan commitments and financial guarantee contracts | 216,782 | 169,320 |
Stand-by letters of credit and guarantees [Member] | ||
Disclosure of loans commitments and financial guarantees contracts [Line Items] | ||
Loan commitments and financial guarantee contracts | 210,497 | 255,481 |
Credit commitments [Member] | ||
Disclosure of loans commitments and financial guarantees contracts [Line Items] | ||
Loan commitments and financial guarantee contracts | $ 137,619 | $ 68,571 |
Loan commitments and financia_4
Loan commitments and financial guarantees contracts - Remaining maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan commitments and financial guarantee contracts | $ 564,898 | $ 493,372 |
Due within 1 year | ||
Loan commitments and financial guarantee contracts | 419,015 | 424,744 |
From 1 to 2 years | ||
Loan commitments and financial guarantee contracts | 75,883 | 8,628 |
From 2 to 5 years [member] | ||
Loan commitments and financial guarantee contracts | $ 70,000 | $ 60,000 |
Gain (loss) on financial inst_3
Gain (loss) on financial instruments, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (loss) on financial instruments, net | |||
Gain (loss) on derivative financial instruments and foreign currency exchange, net | $ (1,813) | $ 672 | $ (1,226) |
(Loss) gain on financial instruments at fair value through profit or loss | (2,175) | (2,258) | 648 |
Unrealized (loss) gain on financial instruments at fair value through profit or loss | (806) | 0 | 0 |
Realized gain on sale of securities at fair value through OCI | 0 | 186 | 194 |
Gain (loss) on sale of loans | 0 | 21 | (625) |
Loss on Financial Instruments | $ (4,794) | $ (1,379) | $ (1,009) |
Derivative financial instrume_3
Derivative financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | $ 783,017 | $ 965,673 |
Carrying amount of the hedging instrument, Asset | 27,778 | 11,157 |
Carrying amount of the hedging instrument, Liability | (9,211) | (14,675) |
Cross currency swaps | ||
Notional and carrying amount of the hedging instrument | ||
Carrying amount of the hedging instrument, Asset | 25,947 | 10,125 |
Carrying amount of the hedging instrument, Liability | (3,848) | (10,197) |
Foreign exchange forwards | ||
Notional and carrying amount of the hedging instrument | ||
Carrying amount of the hedging instrument, Asset | 0 | 625 |
Carrying amount of the hedging instrument, Liability | (3,589) | (2,575) |
Interest rate swaps | ||
Notional and carrying amount of the hedging instrument | ||
Carrying amount of the hedging instrument, Asset | 1,831 | 407 |
Carrying amount of the hedging instrument, Liability | (1,774) | (1,903) |
Fair value hedges | ||
Notional and carrying amount of the hedging instrument | ||
Carrying amount of the hedging instruments, Asset | 4,687 | 10,532 |
Carrying amount of the hedging instruments, Liability | (4,081) | (9,332) |
Fair value hedges | Interest rate risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 85,667 | 398,333 |
Carrying amount of the hedging instruments, Asset | 1,831 | 407 |
Carrying amount of the hedging instruments, Liability | (233) | (805) |
Fair value hedges | Interest rate and foreign exchange risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 344,489 | 346,844 |
Carrying amount of the hedging instruments, Asset | 2,856 | 10,125 |
Carrying amount of the hedging instruments, Liability | (3,848) | (8,527) |
Cash flow hedges | ||
Notional and carrying amount of the hedging instrument | ||
Carrying amount of the hedging instruments, Asset | 23,091 | 625 |
Carrying amount of the hedging instruments, Liability | (5,130) | (5,320) |
Cash flow hedges | Interest rate risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 60,000 | 123,000 |
Carrying amount of the hedging instruments, Asset | 0 | 0 |
Carrying amount of the hedging instruments, Liability | (1,541) | (1,098) |
Cash flow hedges | Interest rate and foreign exchange risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 221,508 | 23,025 |
Carrying amount of the hedging instruments, Asset | 23,091 | 0 |
Carrying amount of the hedging instruments, Liability | 0 | (1,670) |
Cash flow hedges | Foreign exchange risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 71,353 | 72,391 |
Carrying amount of the hedging instruments, Asset | 0 | 625 |
Carrying amount of the hedging instruments, Liability | $ (3,589) | (2,552) |
Foreign exchange forwards | Foreign exchange risk | ||
Notional and carrying amount of the hedging instrument | ||
Nominal Amount | 2,080 | |
Carrying amount of the hedging instruments, Asset | 0 | |
Carrying amount of the hedging instruments, Liability | $ (23) |
Derivative financial instrume_4
Derivative financial instruments (Details 1) - Fair value hedges - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 430,156 | 745,177 |
Carrying amount of the hedging instruments, Asset | $ 4,687 | $ 10,532 |
Carrying amount of the hedging instruments, Liability | (4,081) | (9,332) |
Change in fair value used for calculating hedge ineffectiveness | (2,092) | 11,731 |
Ineffectiveness recognised in profit or loss | (663) | (250) |
Carrying amount of hedged items,Asset | 19,739 | 24,927 |
Carrying amount of hedged items , liabilities | (411,625) | (717,704) |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | 296 | (1,198) |
Change in the fair value of the hedged item used to recognise ineffectiveness | 1,429 | (11,981) |
Interest rate risk | ||
Disclosure of detailed information about hedging relationships [line items | ||
Carrying amount of the hedging instruments, Asset | 1,831 | 407 |
Carrying amount of the hedging instruments, Liability | $ (233) | $ (805) |
Interest rate risk | Loans | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 10,667 | 13,333 |
Carrying amount of the hedging instruments, Asset | $ 0 | $ 0 |
Carrying amount of the hedging instruments, Liability | (132) | (166) |
Change in fair value used for calculating hedge ineffectiveness | 84 | (127) |
Ineffectiveness recognised in profit or loss | 1 | (9) |
Carrying amount of hedged items,Asset | 10,837 | 13,583 |
Carrying amount of hedged items , liabilities | 0 | 0 |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | 74 | 158 |
Change in the fair value of the hedged item used to recognise ineffectiveness | $ (83) | $ 118 |
Interest rate risk | Securities at FVOCI | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 5,000 | 5,000 |
Carrying amount of the hedging instruments, Asset | $ 0 | $ 0 |
Carrying amount of the hedging instruments, Liability | (101) | (45) |
Change in fair value used for calculating hedge ineffectiveness | (29) | (97) |
Ineffectiveness recognised in profit or loss | (20) | (17) |
Carrying amount of hedged items,Asset | 5,113 | 5,142 |
Carrying amount of hedged items , liabilities | 0 | 0 |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | 85 | 94 |
Change in the fair value of the hedged item used to recognise ineffectiveness | $ 9 | $ 80 |
Interest rate risk | Borrowings and debt | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 70,000 | 380,000 |
Carrying amount of the hedging instruments, Asset | $ 1,831 | $ 407 |
Carrying amount of the hedging instruments, Liability | 0 | (594) |
Change in fair value used for calculating hedge ineffectiveness | 199 | 5,203 |
Ineffectiveness recognised in profit or loss | (27) | (65) |
Carrying amount of hedged items,Asset | 0 | 0 |
Carrying amount of hedged items , liabilities | (71,937) | (381,587) |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | (292) | 18 |
Change in the fair value of the hedged item used to recognise ineffectiveness | (226) | (5,268) |
Interest rate and foreign exchange risk | ||
Disclosure of detailed information about hedging relationships [line items | ||
Carrying amount of the hedging instruments, Asset | 2,856 | 10,125 |
Carrying amount of the hedging instruments, Liability | $ (3,848) | $ (8,527) |
Interest rate and foreign exchange risk | Loans | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 4,075 | 6,430 |
Carrying amount of the hedging instruments, Asset | $ 356 | $ 276 |
Carrying amount of the hedging instruments, Liability | 0 | 0 |
Change in fair value used for calculating hedge ineffectiveness | 178 | (482) |
Ineffectiveness recognised in profit or loss | (149) | (214) |
Carrying amount of hedged items,Asset | 3,789 | 6,202 |
Carrying amount of hedged items , liabilities | 0 | 0 |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | (654) | (495) |
Change in the fair value of the hedged item used to recognise ineffectiveness | $ (327) | $ 268 |
Interest rate and foreign exchange risk | Borrowings and debt | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 340,414 | 340,414 |
Carrying amount of the hedging instruments, Asset | $ 2,500 | $ 9,849 |
Carrying amount of the hedging instruments, Liability | (3,848) | (8,527) |
Change in fair value used for calculating hedge ineffectiveness | (2,524) | 7,234 |
Ineffectiveness recognised in profit or loss | (468) | 55 |
Carrying amount of hedged items,Asset | 0 | 0 |
Carrying amount of hedged items , liabilities | (339,688) | (336,117) |
Accumulated amount of fair value hedge adjustments included in the carrying value of the hedged item | 1,083 | (973) |
Change in the fair value of the hedged item used to recognise ineffectiveness | $ 2,056 | $ (7,179) |
Derivative financial instrume_5
Derivative financial instruments (Details 2) - Fair value hedges - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedging instruments [line items] | ||
Total | $ 430,156 | $ 745,177 |
Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 85,667 | 350,000 |
From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 271,646 | 48,333 |
From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 72,843 | 346,844 |
Interest rate and foreign exchange risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 344,489 | 346,844 |
Interest rate and foreign exchange risk | Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | 0 |
Interest rate and foreign exchange risk | From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 271,646 | 0 |
Interest rate and foreign exchange risk | From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 72,843 | 346,844 |
Interest rate swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 85,667 | 398,333 |
Interest rate swaps | Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 85,667 | 350,000 |
Interest rate swaps | From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | 48,333 |
Interest rate swaps | From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | $ 0 | $ 0 |
Derivative financial Instrume_6
Derivative financial Instruments (Details 3) - Cash flow hedges - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 352,861 | 218,416 |
Carrying amount of the hedging instruments, Asset | $ 23,091 | $ 625 |
Carrying amount of the hedging instruments, Liability | (5,130) | (5,320) |
Change in fair value used for calculating hedge ineffectiveness | 19,471 | (4,089) |
Changes in the fair value of the hedging instrument recognised in OCI | 19,574 | (4,085) |
Ineffectiveness recognised in profit or loss | 103 | 4 |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | (3,699) | (6,576) |
Carrying amount of hedged items,Asset | 74,509 | 73,861 |
Carrying amount of hedged items , liabilities | (263,862) | (91,344) |
Change in the fair value of the hedged item used to recognise ineffectiveness | (19,574) | 4,085 |
Cash flow hedge reserve | 22 | 1,330 |
Interest rate risk | ||
Disclosure of detailed information about hedging relationships [line items | ||
Carrying amount of the hedging instruments, Asset | 0 | 0 |
Carrying amount of the hedging instruments, Liability | $ (1,541) | $ (1,098) |
Interest rate risk | Borrowings and debt | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 60,000 | 123,000 |
Carrying amount of the hedging instruments, Asset | $ 0 | $ 0 |
Carrying amount of the hedging instruments, Liability | (1,541) | (1,098) |
Change in fair value used for calculating hedge ineffectiveness | (443) | (1,459) |
Changes in the fair value of the hedging instrument recognised in OCI | (442) | (1,458) |
Ineffectiveness recognised in profit or loss | 1 | 1 |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | (75) | 39 |
Carrying amount of hedged items,Asset | 0 | 0 |
Carrying amount of hedged items , liabilities | (20,045) | (70,110) |
Change in the fair value of the hedged item used to recognise ineffectiveness | 442 | 1,458 |
Cash flow hedge reserve | 1,440 | 1,072 |
Interest rate and foreign exchange risk | ||
Disclosure of detailed information about hedging relationships [line items | ||
Carrying amount of the hedging instruments, Asset | 23,091 | 0 |
Carrying amount of the hedging instruments, Liability | $ 0 | $ (1,670) |
Interest rate and foreign exchange risk | Borrowings and debt | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 221,508 | 23,025 |
Carrying amount of the hedging instruments, Asset | $ 23,091 | $ 0 |
Carrying amount of the hedging instruments, Liability | 0 | (1,670) |
Change in fair value used for calculating hedge ineffectiveness | 23,380 | (284) |
Changes in the fair value of the hedging instrument recognised in OCI | 23,481 | (283) |
Ineffectiveness recognised in profit or loss | 101 | 1 |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | (1,697) | 0 |
Carrying amount of hedged items,Asset | 0 | 0 |
Carrying amount of hedged items , liabilities | (243,817) | (21,234) |
Change in the fair value of the hedged item used to recognise ineffectiveness | (23,481) | 283 |
Cash flow hedge reserve | (1,980) | (5) |
Foreign exchange risk | ||
Disclosure of detailed information about hedging relationships [line items | ||
Carrying amount of the hedging instruments, Asset | 0 | 625 |
Carrying amount of the hedging instruments, Liability | $ (3,589) | $ (2,552) |
Foreign exchange risk | Borrowings and debt | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 0 | |
Carrying amount of the hedging instruments, Asset | $ 0 | |
Carrying amount of the hedging instruments, Liability | 0 | |
Change in fair value used for calculating hedge ineffectiveness | 0 | |
Changes in the fair value of the hedging instrument recognised in OCI | 0 | |
Ineffectiveness recognised in profit or loss | 0 | |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | $ (5,545) | |
Foreign exchange risk | Loans at amortized cost | ||
Disclosure of detailed information about hedging relationships [line items | ||
Nominal amount | 71,353 | 72,391 |
Carrying amount of the hedging instruments, Asset | $ 0 | $ 625 |
Carrying amount of the hedging instruments, Liability | (3,589) | (2,552) |
Change in fair value used for calculating hedge ineffectiveness | (3,466) | (2,346) |
Changes in the fair value of the hedging instrument recognised in OCI | (3,465) | (2,344) |
Ineffectiveness recognised in profit or loss | 1 | 2 |
Amount removed from reserve of cash flow hedges and included in initial cost or other carrying amount of non-financial asset (liability) or firm commitment for which fair value hedge accounting is applied | (1,927) | (1,070) |
Carrying amount of hedged items,Asset | 74,509 | 73,861 |
Carrying amount of hedged items , liabilities | 0 | 0 |
Change in the fair value of the hedged item used to recognise ineffectiveness | 3,465 | 2,344 |
Cash flow hedge reserve | $ 562 | $ 263 |
Derivative financial Instrume_7
Derivative financial Instruments (Details 4) - Cash flow hedges - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Total | $ 352,861 | $ 218,416 |
Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 111,353 | 158,416 |
From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 40,000 | |
From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 217,854 | 20,000 |
More than 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 23,654 | |
Foreign exchange risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 71,353 | 72,391 |
Foreign exchange risk | Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 71,353 | 72,391 |
Foreign exchange risk | From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | |
Foreign exchange risk | From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | 0 |
Foreign exchange risk | More than 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | |
Interest rate and foreign exchange risk | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 221,508 | 23,025 |
Interest rate and foreign exchange risk | Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | 23,025 |
Interest rate and foreign exchange risk | From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 0 | |
Interest rate and foreign exchange risk | From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 197,854 | 0 |
Interest rate and foreign exchange risk | More than 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 23,654 | |
Interest rate swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 60,000 | 123,000 |
Interest rate swaps | Due within 1 year | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 40,000 | 63,000 |
Interest rate swaps | From 1 to 2 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 40,000 | |
Interest rate swaps | From 2 years to 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | 20,000 | $ 20,000 |
Interest rate swaps | More than 5 years | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Total | $ 0 |
Derivative financial Instrume_8
Derivative financial Instruments (Details 5) - Foreign exchange forwards - Foreign exchange risk $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of detailed information about hedging relationships [line items | |
Nominal amount | 2,080 |
Carrying amount of the hedging instruments, Asset | $ 0 |
Carrying amount of the hedging instruments, Liability | (23) |
Change in fair value used for calculating hedge ineffectiveness | (23) |
Changes in the fair value of the hedging instrument recognised in OCI | (23) |
Ineffectiveness recognised in profit or loss | 0 |
Amount reclassified from the hedge or loss | (78) |
Carrying amount of hedged items,Asset | 1,889 |
Carrying amount of hedged items , liabilities | 0 |
Change in the fair value of the hedged item used to recognise ineffectiveness | 23 |
Cash flow hedge reserve | $ 23 |
Derivative financial instrume_9
Derivative financial instruments (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative financial instruments | ||
Cost of hedging to be reclassified to profit or loss - Loans hedging | $ 508 | |
Description of duration of hedging, financial assets | 7 years |
Gain (loss) on non - financia_3
Gain (loss) on non - financial assets, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (loss) on non - financial assets, net | |||
Gain on sale of investment property | $ 0 | $ 500 | $ 0 |
Unrealized gain on investment property | 296 | 0 | 0 |
Impairment loss on other assets | 0 | 0 | (3,464) |
Impairment loss on investment property | 0 | 0 | (3,849) |
Write off on intangible assets | 0 | 0 | (2,705) |
Impairment losses on non-financial assets | $ 296 | $ 500 | $ (10,018) |
Gain (loss) on non - financia_4
Gain (loss) on non - financial assets, net (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (loss) on non - financial assets, net | |||
Profit on sale of investment property | $ 0 | $ 500 | $ 1,270 |
Equipment and leasehold impro_3
Equipment and leasehold improvements (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | $ 16,213 | $ 18,752 |
Equipment and leasehold improvements, net [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | 4,990 | 6,230 |
Right-of-use assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property, plant and equipment | $ 11,223 | $ 12,522 |
Equipment and leasehold impro_4
Equipment and leasehold improvements (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ 18,752 | ||
Ending Balance | 16,213 | $ 18,752 | |
Equipment and leasehold improvements, net [Member] | |||
Beginning Balance | 6,230 | 6,686 | |
Ending Balance | 4,990 | 6,230 | $ 6,686 |
IT equipment [member] | |||
Beginning Balance | 1,151 | 1,069 | |
Ending Balance | 796 | 1,151 | 1,069 |
Furniture and fixtures [member] | |||
Beginning Balance | 144 | 184 | |
Ending Balance | 76 | 144 | 184 |
Leasehold improvement [member] | |||
Beginning Balance | 3,504 | 3,840 | |
Ending Balance | 3,598 | 3,504 | 3,840 |
Other equipment [member] | |||
Beginning Balance | 1,431 | 1,593 | |
Ending Balance | 520 | 1,431 | 1,593 |
Cost [member] | |||
Beginning Balance | 16,068 | 15,590 | 15,469 |
Additions | 997 | 1,028 | 603 |
Disposals | (1,203) | (374) | (492) |
Reclassifications | 0 | ||
Effect of changes in exchange rates | (49) | (176) | |
Ending Balance | 15,813 | 16,068 | 15,590 |
Cost [member] | IT equipment [member] | |||
Beginning Balance | 4,905 | 4,338 | 4,170 |
Additions | 293 | 683 | 411 |
Disposals | (1,045) | (63) | (253) |
Reclassifications | 10 | ||
Effect of changes in exchange rates | (17) | (53) | |
Ending Balance | 4,136 | 4,905 | 4,338 |
Cost [member] | Furniture and fixtures [member] | |||
Beginning Balance | 1,771 | 1,899 | 1,984 |
Additions | 1 | 36 | 12 |
Disposals | (84) | (102) | (97) |
Reclassifications | 0 | ||
Effect of changes in exchange rates | (11) | (62) | |
Ending Balance | 1,677 | 1,771 | 1,899 |
Cost [member] | Leasehold improvement [member] | |||
Beginning Balance | 6,803 | 6,841 | 6,810 |
Additions | 671 | 185 | 111 |
Disposals | (26) | (176) | (80) |
Reclassifications | 0 | ||
Effect of changes in exchange rates | (20) | (47) | |
Ending Balance | 7,428 | 6,803 | 6,841 |
Cost [member] | Other equipment [member] | |||
Beginning Balance | 2,589 | 2,512 | 2,505 |
Additions | 32 | 124 | 69 |
Disposals | (48) | (33) | (62) |
Reclassifications | 0 | ||
Effect of changes in exchange rates | (1) | (14) | |
Ending Balance | 2,572 | 2,589 | 2,512 |
Accumulated amortization [member] | |||
Beginning Balance | 9,838 | 8,904 | 8,049 |
Amortization | 2,179 | 1,414 | 1,282 |
Disposals | (1,173) | (352) | (469) |
Reclassifications | 42 | ||
Effect of changes in exchange rates | (21) | (128) | |
Ending Balance | 10,823 | 9,838 | 8,904 |
Accumulated amortization [member] | IT equipment [member] | |||
Beginning Balance | 3,754 | 3,269 | 2,870 |
Amortization | 643 | 584 | 516 |
Disposals | (1,043) | (59) | (159) |
Reclassifications | 42 | ||
Effect of changes in exchange rates | (14) | (40) | |
Ending Balance | 3,340 | 3,754 | 3,269 |
Accumulated amortization [member] | Furniture and fixtures [member] | |||
Beginning Balance | 1,627 | 1,715 | 1,740 |
Amortization | 63 | 62 | 64 |
Disposals | (82) | (97) | (89) |
Reclassifications | 0 | ||
Effect of changes in exchange rates | (7) | (53) | |
Ending Balance | 1,601 | 1,627 | 1,715 |
Accumulated amortization [member] | Leasehold improvement [member] | |||
Beginning Balance | 3,299 | 3,001 | 2,648 |
Amortization | 553 | 508 | 480 |
Disposals | (8) | (175) | (127) |
Effect of changes in exchange rates | (14) | (35) | |
Ending Balance | 3,830 | 3,299 | 3,001 |
Accumulated amortization [member] | Other equipment [member] | |||
Beginning Balance | 1,158 | 919 | 791 |
Amortization | 920 | 260 | 222 |
Disposals | (40) | (21) | (94) |
Effect of changes in exchange rates | 14 | 0 | |
Ending Balance | $ 2,052 | $ 1,158 | $ 919 |
Equipment and leasehold impro_5
Equipment and leasehold improvements (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Main office space [Member] | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Lease term | 15 years | |
Representative office [Member] | Minimum | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Lease term | 3 years | |
Representative office [Member] | Maximum | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Lease term | 5 years | |
IFRS 16 [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | Buildings [member] | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Balance at Beginning | $ 12,522 | $ 17,435 |
Additions | 68 | 14 |
Depreciation of right-of-use assets | (1,128) | (1,440) |
Effect of changes in exchange rates | (34) | 7 |
Reclassification to investment property | 0 | (3,494) |
Decrease | (205) | 0 |
Balance at Ending | $ 11,223 | $ 12,522 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning Balance | $ 1,427 | $ 1,633 | |
Ending Balance | 1,984 | 1,427 | $ 1,633 |
Cost [member] | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning Balance | 14,401 | 13,905 | 17,172 |
Additions | 1,311 | 496 | 58 |
Disposals | (1) | (3,315) | |
Reclassifications | (10) | ||
Ending Balance | 15,711 | 14,401 | 13,905 |
Accumulated amortization [member] | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Beginning Balance | 12,974 | 12,272 | 11,747 |
Amortization | 753 | 702 | 1,176 |
Disposals | (609) | ||
Reclassifications | (42) | ||
Ending Balance | $ 13,727 | $ 12,974 | $ 12,272 |
Investment properties (Details)
Investment properties (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Reconciliation of changes in investment property [abstract] | |
Balance as of December 31, 2019 | $ 3,494 |
Amortization | (280) |
Balance as of December 31, 2020 | $ 3,214 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets | ||
Accounts receivable | $ 938 | $ 3,549 |
Prepaid expenses | 2,541 | 1,070 |
Prepaid fees and commissions | 486 | 1,110 |
Interest receivable - deposits | 8 | 26 |
IT projects under development | 218 | 521 |
Severance fund | 1,927 | 1,863 |
Other | 698 | 718 |
Other assets | $ 6,816 | $ 8,857 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | $ 3,138,900 | $ 2,888,336 |
Demand [Member] | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | 170,660 | 85,786 |
Up to 1 month [Member] | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | 1,127,120 | 1,285,949 |
From 1 month to 3 months [member] | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | 878,900 | 628,981 |
3 to 6 months | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | 544,860 | 593,431 |
6 months to 1 year | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | 365,879 | 289,189 |
From 1 to 2 years | ||
Disclosure of deposits from customers [Line Items] | ||
Deposits from customers | $ 51,481 | $ 5,000 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deposits | |||
Aggregate amounts of $100,000 or more | $ 3,138,684 | $ 2,888,043 | |
Aggregate amounts of deposits in the New York Agency | 657,851 | 240,003 | |
Interest expense on deposits made in the New York Agency | $ 5,035 | $ 6,277 | $ 5,937 |
Securities sold under repurch_2
Securities sold under repurchase agreements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securities sold under repurchase agreements | |||
Financing transactions under repurchase agreements | $ 10,663 | $ 40,530 | |
Interest expense related to financing transactions | $ 432 | $ 1,100 | $ 635 |
Borrowings and debt (Details)
Borrowings and debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-Term Borrowings | $ 331,585 | $ 1,573,663 |
Short-Term, Debt | 49,350 | 22,000 |
Short-Term, Lease Liabilities | 1,244 | 1,145 |
Long-term, Borrowings | 475,852 | 721,963 |
Long-term Debt | 1,109,484 | 800,770 |
Long-term, Lease Liabilities | 17,555 | 18,769 |
Borrowings and debt, net | 1,985,070 | 3,138,310 |
Borrowing and Debt Principal [Member] | ||
Short-Term Borrowings | 331,585 | 1,573,663 |
Short-Term, Debt | 49,350 | 22,000 |
Short-Term, Lease Liabilities | 1,244 | 1,145 |
Long-term, Borrowings | 477,010 | 723,419 |
Long-term Debt | 1,116,033 | 802,676 |
Long-term, Lease Liabilities | 17,555 | 18,769 |
Borrowings and debt, net | 1,992,777 | 3,141,672 |
Prepaid commissions [member] | ||
Short-Term Borrowings | 0 | 0 |
Short-Term, Debt | 0 | 0 |
Short-Term, Lease Liabilities | 0 | 0 |
Long-term, Borrowings | (1,158) | (1,456) |
Long-term Debt | (6,549) | (1,906) |
Long-term, Lease Liabilities | 0 | 0 |
Borrowings and debt, net | (7,707) | (3,362) |
Fixed interest rate [member] | ||
Short-Term Borrowings | 55,000 | 607,500 |
Short-Term, Debt | 0 | 22,000 |
Floating interest rate [member] | ||
Short-Term Borrowings | 276,585 | 966,163 |
Short-Term, Debt | $ 49,350 | $ 0 |
Borrowings and debt (Details 1)
Borrowings and debt (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Borrowings and debts | ||
Total short-term borrowings | $ 331,585 | $ 1,573,663 |
Total short-term debt | 49,350 | 22,000 |
Total short-term borrowings and debt | 380,935 | 1,595,663 |
US Dollar [Member] | ||
Borrowings and debts | ||
Total short-term borrowings and debt | 299,957 | 1,476,000 |
Mexican Peso [Member] | ||
Borrowings and debts | ||
Total short-term borrowings and debt | 80,978 | 119,663 |
Fixed interest rate [member] | ||
Borrowings and debts | ||
Total short-term borrowings | 55,000 | 607,500 |
Total short-term debt | $ 0 | $ 22,000 |
Fixed interest rate [member] | Mexican Peso [Member] | Short-term borrowings [member] | ||
Borrowings and debts | ||
Borrowing and debt | 0.00% | 8.08% |
Floating interest rate [member] | ||
Borrowings and debts | ||
Total short-term borrowings | $ 276,585 | $ 966,163 |
Total short-term debt | $ 49,350 | $ 0 |
Minimum | Fixed interest rate [member] | Short Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 0.45% | 2.07% |
Minimum | Floating interest rate [member] | Short Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 0.47% | 2.09% |
Minimum | Floating interest rate [member] | Short Term Borrowings And Debt [Member] | Mexican Peso [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 4.97% | 7.71% |
Maximum | Fixed interest rate [member] | Short Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 1.40% | 2.52% |
Maximum | Floating interest rate [member] | Short Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 1.65% | 2.35% |
Maximum | Floating interest rate [member] | Short Term Borrowings And Debt [Member] | Mexican Peso [Member] | ||
Borrowings and debts | ||
Borrowing and debt | 5.05% | 8.31% |
Borrowings and debt (Details 2)
Borrowings and debt (Details 2) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings | $ 477,010 | $ 723,419 |
Total long-term debt | 1,116,033 | 802,676 |
Total long-term borrowings and debt | 1,593,043 | 1,526,095 |
Less: Prepaid commission | (7,707) | (3,362) |
Total long-term borrowings and debt, net | 1,585,336 | 1,522,733 |
US Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings and debt | 910,296 | 1,097,611 |
Mexican Peso [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings and debt | 509,687 | 280,105 |
Euros Member [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings and debt | 101,469 | 59,465 |
Japanese Yen [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings and debt | 71,591 | 67,831 |
Australian Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings and debt | 0 | 21,083 |
Fixed interest rate [member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings | 68,190 | 65,435 |
Total long-term debt | $ 784,006 | $ 502,880 |
Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Euros Member [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Debt interest rate | 3.75% | |
Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Japanese Yen [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Debt interest rate | 0.52% | 0.52% |
Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Australian Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Debt interest rate | 0.00% | 3.33% |
Floating interest rate [member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Total long-term borrowings | $ 408,820 | $ 657,984 |
Total long-term debt | $ 332,027 | $ 299,796 |
Minimum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 2.04% | 2.56% |
Minimum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Mexican Peso [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowings, interest rate | 6.77% | 5.73% |
Minimum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Euros Member [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Debt interest rate | 0.90% | |
Minimum | Floating interest rate [member] | US Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 1.16% | 2.46% |
Minimum | Floating interest rate [member] | Mexican Peso [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 4.87% | 8.14% |
Maximum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | US Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 3.05% | 3.25% |
Maximum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Mexican Peso [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowings, interest rate | 9.09% | 9.09% |
Maximum | Fixed interest rate [member] | Long Term Borrowings And Debt [Member] | Euros Member [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Debt interest rate | 3.75% | |
Maximum | Floating interest rate [member] | US Dollar [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 1.85% | 3.36% |
Maximum | Floating interest rate [member] | Mexican Peso [Member] | ||
Disclosure of long-term borrowings [Line Items] | ||
Borrowing and debt interest rate | 5.74% | 9.13% |
Borrowings and debt (Details 3)
Borrowings and debt (Details 3) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | $ 1,593,043 | $ 1,526,095 |
2021 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 252,045 | |
2022 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 525,175 | |
2023 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 108,436 | |
2024 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 64,757 | |
More than 5 years | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 618,154 | |
2026 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | 12,238 | |
2027 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
long-term borrowings and debt | $ 12,238 |
Borrowings and debt (Details 4)
Borrowings and debt (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Borrowings and debt | |||
Balance as of January 1, | $ 3,138,310 | $ 3,518,446 | $ 2,211,567 |
Net (decrease) increase in short-term borrowings and debt | (1,212,023) | (428,611) | 950,259 |
Proceeds from long-term borrowings and debt | 827,732 | 371,536 | 609,017 |
Repayments of long-term borrowings and debt | (781,274) | (368,843) | (256,173) |
Payment of lease liabilities | (1,114) | (1,072) | 0 |
Recognition of lease liabilities | 20,979 | ||
Net Increase in lease liabilities | 48 | ||
Change in foreign currency | 15,853 | 20,044 | 1,903 |
Adjustment of fair value for hedge accounting relationship | 826 | 4,943 | 753 |
Other adjustments | (3,288) | 888 | 1,120 |
Balance as of December 31, | $ 1,985,070 | $ 3,138,310 | $ 3,518,446 |
Borrowings and debt (Details 5)
Borrowings and debt (Details 5) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Long term borrowings Terms [Line Items] | ||
Total undiscounted lease liabilities | $ 24,053 | $ 25,967 |
Short-term | 1,244 | 1,145 |
Long-term | 17,555 | 18,769 |
Lease liabilities included in the consolidated statement of financial position | 18,799 | 19,914 |
2021 | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
Total undiscounted lease liabilities | 2,058 | 2,005 |
After 1 year but within 5 years | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
Total undiscounted lease liabilities | 10,641 | 10,470 |
After 5 years but within 10 years | ||
Disclosure of Long term borrowings Terms [Line Items] | ||
Total undiscounted lease liabilities | $ 11,354 | $ 13,492 |
Borrowings and debt (Details 6)
Borrowings and debt (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Borrowings and debt | |||
Payments of lease liabilities | $ 1,114 | $ 1,072 | $ 0 |
Interest on lease liabilities | (862) | (912) | |
Income from sub-leasing right-of-use assets | $ 265 | $ 277 |
Borrowings and debt (Details Te
Borrowings and debt (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of short term borrowings [Line Items] | ||
Prepaid commissions | $ 7,707 | $ 3,362 |
Euro Medium Term Note Program [Member] | ||
Disclosure of short term borrowings [Line Items] | ||
Description Of Borrowings Terms | EMTN, which may be used to issue notes for up to $2.250 million, with maturities from 7 days up to a maximum of 30 years, at fixed or floating interest rates, or at discount, and in various currencies. | |
Maximum Borrowing Capacity | $ 2,250 | |
Euro Medium Term Note Program [Member] | Minimum | ||
Disclosure of short term borrowings [Line Items] | ||
Maturity term | 7 days | |
Euro Medium Term Note Program [Member] | Maximum | ||
Disclosure of short term borrowings [Line Items] | ||
Maturity term | 30 years | |
Certificados Bursatiles Program [Member] | ||
Disclosure of short term borrowings [Line Items] | ||
Description Of Borrowings Terms | Short-and Long-Term Notes ("Certificados Bursatiles") Program (the "Mexican Program") in the Mexican local market, registered with the Mexican National Registry of Securities administered by the National Banking and Securities Commission in Mexico ("CNBV", for its acronym in Spanish), for an authorized aggregate principal amount of 10 billion Mexican pesos with maturities from 1 day to 30 years | |
Aggregate principal amount | $ 10,000,000 | |
Certificados Bursatiles Program [Member] | Minimum | ||
Disclosure of short term borrowings [Line Items] | ||
Maturity term | 1 day | |
Certificados Bursatiles Program [Member] | Maximum | ||
Disclosure of short term borrowings [Line Items] | ||
Maturity term | 30 years |
Other liabilities (Details)
Other liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other liabilities | ||
Accruals and other accumulated expenses | $ 9,213 | $ 11,901 |
Accounts payable | 6,307 | 2,526 |
Others | 3,194 | 2,722 |
Total | $ 18,714 | $ 17,149 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share | |||
Profit for the year | $ 63,593 | $ 86,053 | $ 11,138 |
Basic earnings per share | $ 1.60 | $ 2.17 | $ 0.28 |
Diluted earnings per share | $ 1.60 | $ 2.17 | $ 0.28 |
Weighted average of common shares outstanding - applicable to basic EPS | 39,656 | 39,575 | 39,543 |
Effect of diluted securities: | |||
Stock options and restricted stock units plan | 0 | 0 | 0 |
Adjusted weighted average of common shares outstanding applicable to diluted EPS | 39,656 | 39,575 | 39,543 |
Capital and Reserves - Common s
Capital and Reserves - Common stock and additional paid-in capital (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of share capital, reserves and other equity interest [Line Items] | |||
Authorized | 280,000,000 | ||
Beginning Balance (in Shares) | 39,602,277 | 39,538,550 | 39,428,834 |
Conversions | 0 | 0 | 0 |
Repurchased common stock | (1) | 0 | (99,257) |
Restricted stock issued - directors | 63,000 | 57,000 | 57,000 |
Exercised stock options - compensation plans | 102,918 | ||
Restricted stock units - vested | 12,664 | 6,727 | 49,055 |
Ending Balance (in Shares) | 39,677,940 | 39,602,277 | 39,538,550 |
Class A shares [Member] | |||
Disclosure of share capital, reserves and other equity interest [Line Items] | |||
Authorized | 40,000,000 | ||
Beginning Balance (in Shares) | 6,342,189 | 6,342,189 | 6,342,189 |
Conversions | 0 | 0 | 0 |
Repurchased common stock | 0 | 0 | 0 |
Restricted stock issued - directors | 0 | 0 | 0 |
Exercised stock options - compensation plans | 0 | ||
Restricted stock units - vested | 0 | 0 | 0 |
Ending Balance (in Shares) | 6,342,189 | 6,342,189 | 6,342,189 |
Class B shares [Member] | |||
Disclosure of share capital, reserves and other equity interest [Line Items] | |||
Authorized | 40,000,000 | ||
Beginning Balance (in Shares) | 2,182,426 | 2,245,226 | 2,408,805 |
Conversions | (4,060) | (62,799) | (64,386) |
Repurchased common stock | (1) | (1) | (99,193) |
Restricted stock issued - directors | 0 | 0 | 0 |
Exercised stock options - compensation plans | 0 | ||
Restricted stock units - vested | 0 | 0 | 0 |
Ending Balance (in Shares) | 2,178,365 | 2,182,426 | 2,245,226 |
Class E shares [Member] | |||
Disclosure of share capital, reserves and other equity interest [Line Items] | |||
Authorized | 100,000,000 | ||
Beginning Balance (in Shares) | 31,077,662 | 30,951,135 | 30,677,840 |
Conversions | 4,060 | 62,799 | 64,386 |
Repurchased common stock | 0 | 1 | (64) |
Restricted stock issued - directors | 63,000 | 57,000 | 57,000 |
Exercised stock options - compensation plans | 102,918 | ||
Restricted stock units - vested | 12,664 | 6,727 | 49,055 |
Ending Balance (in Shares) | 31,157,386 | 31,077,662 | 30,951,135 |
Class F shares [Member] | |||
Disclosure of share capital, reserves and other equity interest [Line Items] | |||
Authorized | 100,000,000 | ||
Beginning Balance (in Shares) | 0 | 0 | 0 |
Conversions | 0 | 0 | 0 |
Repurchased common stock | 0 | 0 | 0 |
Restricted stock issued - directors | 0 | 0 | 0 |
Exercised stock options - compensation plans | 0 | ||
Restricted stock units - vested | 0 | 0 | 0 |
Ending Balance (in Shares) | 0 | 0 | 0 |
Capital and Reserves - Treasury
Capital and Reserves - Treasury stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance | $ 59,669 | ||
Beginning Balance (in Shares) | 39,602,277 | 39,538,550 | 39,428,834 |
Balance | $ 57,999 | $ 59,669 | |
Ending Balance (in Shares) | 39,677,940 | 39,602,277 | 39,538,550 |
Treasury stock [member] | |||
Balance | $ 59,669 | $ 61,076 | $ 63,248 |
Beginning Balance (in Shares) | 2,377,561 | 2,441,288 | 2,551,004 |
Repurchase of common stock | $ 2,442 | ||
Repurchase of common stock (in Shares) | 99,257 | ||
Restricted stock issued - directors | $ (1,391) | $ (1,259) | $ (1,259) |
Restricted stock issued - directors (in Shares) | (63,000) | (57,000) | (57,000) |
Exercised stock options - compensation plans | $ (2,272) | ||
Exercised stock options - compensation plans (in Shares) | (102,918) | ||
Restricted stock units - vested | $ (279) | $ (148) | $ (1,083) |
Restricted stock units - vested (in Shares) | (12,664) | (6,727) | (49,055) |
Balance | $ 57,999 | $ 59,669 | $ 61,076 |
Ending Balance (in Shares) | 2,301,897 | 2,377,561 | 2,441,288 |
Class A shares [Member] | Treasury stock [member] | |||
Balance | $ 10,708 | $ 10,708 | $ 10,708 |
Beginning Balance (in Shares) | 318,140 | 318,140 | 318,140 |
Repurchase of common stock | $ 0 | ||
Repurchase of common stock (in Shares) | 0 | ||
Restricted stock issued - directors | $ 0 | $ 0 | $ 0 |
Restricted stock issued - directors (in Shares) | 0 | 0 | 0 |
Exercised stock options - compensation plans | $ 0 | ||
Exercised stock options - compensation plans (in Shares) | 0 | ||
Restricted stock units - vested | $ 0 | $ 0 | $ 0 |
Restricted stock units - vested (in Shares) | 0 | 0 | 0 |
Balance | $ 10,708 | $ 10,708 | $ 10,708 |
Ending Balance (in Shares) | 318,140 | 318,140 | 318,140 |
Class B shares [Member] | Treasury stock [member] | |||
Balance | $ 18,711 | $ 18,711 | $ 16,270 |
Beginning Balance (in Shares) | 689,367 | 689,367 | 590,174 |
Repurchase of common stock | $ 2,441 | ||
Repurchase of common stock (in Shares) | 99,193 | ||
Restricted stock issued - directors | $ 0 | $ 0 | $ 0 |
Restricted stock issued - directors (in Shares) | 0 | 0 | 0 |
Exercised stock options - compensation plans | $ 0 | ||
Exercised stock options - compensation plans (in Shares) | 0 | ||
Restricted stock units - vested | $ 0 | $ 0 | $ 0 |
Restricted stock units - vested (in Shares) | 0 | 0 | 0 |
Balance | $ 18,711 | $ 18,711 | $ 18,711 |
Ending Balance (in Shares) | 689,367 | 689,367 | 689,367 |
Class E shares [Member] | Treasury stock [member] | |||
Balance | $ 30,250 | $ 31,657 | $ 36,270 |
Beginning Balance (in Shares) | 1,370,054 | 1,433,781 | 1,642,690 |
Repurchase of common stock | $ 1 | ||
Repurchase of common stock (in Shares) | 64 | ||
Restricted stock issued - directors | $ (1,391) | $ (1,259) | $ (1,259) |
Restricted stock issued - directors (in Shares) | (63,000) | (57,000) | (57,000) |
Exercised stock options - compensation plans | $ (2,272) | ||
Exercised stock options - compensation plans (in Shares) | (102,918) | ||
Restricted stock units - vested | $ (279) | $ (148) | $ (1,083) |
Restricted stock units - vested (in Shares) | (12,664) | (6,727) | (49,055) |
Balance | $ 28,580 | $ 30,250 | $ 31,657 |
Ending Balance (in Shares) | 1,294,390 | 1,370,054 | 1,433,781 |
Other comprehensive income (Det
Other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Beginning Balance | $ (1,818) | $ 420 | $ 1,963 |
change in fair value of debt instruments net of hedging | 2,265 | (2,694) | 2,667 |
Change in fair value on equity instruments at FVOCI, net of hedging | 546 | 491 | (1,224) |
Reclassification of gains (losses) on financial instruments included in profit or loss (1) | (425) | 261 | (1,704) |
Exchange difference in conversion of foreign operating currency | (360) | (296) | (1,282) |
Other comprehensive income (loss) for the year | 2,026 | (2,238) | (1,543) |
Ending Balance | 208 | (1,818) | 420 |
Financial instruments FVH | |||
Beginning Balance | (613) | (1,265) | 303 |
change in fair value of debt instruments net of hedging | 264 | 4 | (174) |
Change in fair value on equity instruments at FVOCI, net of hedging | 546 | 491 | (1,224) |
Reclassification of gains (losses) on financial instruments included in profit or loss (1) | (56) | 157 | (170) |
Exchange difference in conversion of foreign operating currency | 0 | 0 | 0 |
Other comprehensive income (loss) for the year | 754 | 652 | (1,568) |
Ending Balance | 141 | (613) | (1,265) |
Financial instruments CFH | |||
Beginning Balance | (1,117) | 1,477 | 170 |
change in fair value of debt instruments net of hedging | 2,001 | (2,698) | 2,841 |
Change in fair value on equity instruments at FVOCI, net of hedging | 0 | 0 | 0 |
Reclassification of gains (losses) on financial instruments included in profit or loss (1) | (369) | 104 | (1,534) |
Exchange difference in conversion of foreign operating currency | 0 | 0 | 0 |
Other comprehensive income (loss) for the year | 1,632 | (2,594) | 1,307 |
Ending Balance | 515 | (1,117) | 1,477 |
Exchange difference in conversion of foreign operating currency | |||
Beginning Balance | (88) | 208 | 1,490 |
change in fair value of debt instruments net of hedging | 0 | 0 | 0 |
Change in fair value on equity instruments at FVOCI, net of hedging | 0 | 0 | 0 |
Exchange difference in conversion of foreign operating currency | (360) | (296) | (1,282) |
Other comprehensive income (loss) for the year | (360) | (296) | (1,282) |
Ending Balance | $ (448) | $ (88) | $ 208 |
Other comprehensive income (D_2
Other comprehensive income (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Accumulated other comprehensive income loss [Line Items] | |||
Realized gains (losses) on financial assets measured at fair value through other comprehensive income | $ 232,461 | $ 5,142 | |
Interest expense - borrowings and deposits | (62,723) | (96,732) | $ (85,601) |
Financial instruments FVH | |||
Disclosure of Accumulated other comprehensive income loss [Line Items] | |||
Realized gains (losses) on securities at FVOCI | (56) | 157 | 87 |
Financial instruments CFH | |||
Disclosure of Accumulated other comprehensive income loss [Line Items] | |||
Realized gains (losses) on financial assets measured at fair value through other comprehensive income | (2,762) | (5,008) | (5,678) |
Interest income - loans at amortized cost | (2,337) | (3,261) | (2,502) |
Interest expense - borrowings and deposits | 0 | (1,733) | (1,650) |
Net gain (loss) on foreign currency exchange | (369) | (61) | (1,530) |
Net gain (loss) on interest rate swaps | 0 | 56 | 4 |
Net gain (loss) on cross-currency swaps | $ 0 | $ (9) | $ 0 |
Fee and commission income (Deta
Fee and commission income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fee and commission income (expense) | $ 10,418 | $ 15,647 | $ 17,185 |
Issuance And Confirmation [Member] | |||
Fee and commission income (expense) | 9,490 | 9,693 | 11,019 |
Negotiation And Acceptance [Member] | |||
Fee and commission income (expense) | 183 | 399 | 379 |
Amendment [Member] | |||
Fee and commission income (expense) | 688 | 605 | 869 |
Structuring [Member] | |||
Fee and commission income (expense) | 603 | 5,622 | 4,950 |
Other [Member] | |||
Fee and commission income (expense) | (546) | (672) | (32) |
Syndicated loans [Member] | |||
Fee and commission income (expense) | 603 | 5,622 | 4,950 |
Syndicated loans [Member] | Issuance And Confirmation [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Syndicated loans [Member] | Negotiation And Acceptance [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Syndicated loans [Member] | Amendment [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Syndicated loans [Member] | Structuring [Member] | |||
Fee and commission income (expense) | 603 | 5,622 | 4,950 |
Syndicated loans [Member] | Other [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Documentary and stand-by Letters of Credit [Member] | |||
Fee and commission income (expense) | 9,000 | 9,506 | 10,767 |
Documentary and stand-by Letters of Credit [Member] | Issuance And Confirmation [Member] | |||
Fee and commission income (expense) | 8,090 | 8,381 | 9,281 |
Documentary and stand-by Letters of Credit [Member] | Negotiation And Acceptance [Member] | |||
Fee and commission income (expense) | 183 | 399 | 379 |
Documentary and stand-by Letters of Credit [Member] | Amendment [Member] | |||
Fee and commission income (expense) | 688 | 632 | 1,020 |
Documentary and stand-by Letters of Credit [Member] | Structuring [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Documentary and stand-by Letters of Credit [Member] | Other [Member] | |||
Fee and commission income (expense) | 39 | 94 | 87 |
Other [Member] | |||
Fee and commission income (expense) | 815 | 519 | 1,468 |
Other [Member] | Issuance And Confirmation [Member] | |||
Fee and commission income (expense) | 1,400 | 1,312 | 1,738 |
Other [Member] | Negotiation And Acceptance [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Other [Member] | Amendment [Member] | |||
Fee and commission income (expense) | 0 | (27) | (151) |
Other [Member] | Structuring [Member] | |||
Fee and commission income (expense) | 0 | 0 | 0 |
Other [Member] | Other [Member] | |||
Fee and commission income (expense) | $ (584) | $ (766) | $ (119) |
Fee and commission income (De_2
Fee and commission income (Details 2) $ in Thousands | Dec. 31, 2020USD ($) |
Ordinary income expected to be recognized on the contracts | $ 3,041 |
Due within 1 year | |
Ordinary income expected to be recognized on the contracts | 1,917 |
1 to 2 years | |
Ordinary income expected to be recognized on the contracts | 361 |
More than 2 years | |
Ordinary income expected to be recognized on the contracts | $ 763 |
Business segment information (D
Business segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Reporting Segment [Line Items] | |||
Interest income | $ 180,973 | $ 273,682 | $ 258,490 |
Interest expense | (88,523) | (164,167) | (148,747) |
Inter-segment net interest income | 0 | 0 | 0 |
Net interest income | 92,450 | 109,515 | 109,743 |
Other income (expense), net | 6,707 | 17,142 | 17,846 |
Total income | 99,157 | 126,657 | 127,589 |
Reversal of (provision for) credit losses | 1,464 | (430) | (57,515) |
Gain (loss) on non-financial assets, net | (296) | (500) | 5,967 |
Operating expenses | (37,324) | (40,674) | (48,918) |
Segment profit (loss) | 63,593 | 86,053 | 11,138 |
Segment assets | 6,288,898 | 7,249,666 | 7,609,185 |
Segment liabilities | 5,250,978 | 6,233,499 | 6,615,595 |
Reportable segments [member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Segment profit (loss) | 63,593 | 86,053 | 15,189 |
Segment assets | 6,282,090 | 7,240,835 | 7,592,492 |
Segment liabilities | 5,232,264 | 6,216,350 | 6,601,980 |
Commercial [Member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Interest income | 172,548 | 253,462 | 239,976 |
Interest expense | (690) | (730) | 0 |
Inter-segment net interest income | (83,937) | (144,334) | (130,195) |
Net interest income | 87,921 | 108,398 | 109,781 |
Other income (expense), net | 8,597 | 15,577 | 18,002 |
Total income | 96,518 | 123,975 | 127,783 |
Reversal of (provision for) credit losses | 1,889 | (744) | (57,621) |
Gain (loss) on non-financial assets, net | (296) | (500) | 5,967 |
Operating expenses | (28,021) | (31,183) | (37,436) |
Commercial [Member] | Reportable segments [member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Segment profit (loss) | 70,682 | 92,548 | 26,759 |
Segment assets | 4,989,009 | 5,967,157 | 5,734,159 |
Segment liabilities | 92,309 | 134,657 | 12,985 |
Treasury [Member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Interest income | 8,425 | 20,220 | 18,514 |
Interest expense | (87,833) | (163,437) | (148,747) |
Inter-segment net interest income | 83,937 | 144,334 | 130,195 |
Net interest income | 4,529 | 1,117 | (38) |
Other income (expense), net | (1,890) | 1,565 | (156) |
Total income | 2,639 | 2,682 | (194) |
Reversal of (provision for) credit losses | (425) | 314 | 106 |
Gain (loss) on non-financial assets, net | 0 | 0 | 0 |
Operating expenses | (9,303) | (9,491) | (11,482) |
Treasury [Member] | Reportable segments [member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Segment profit (loss) | (7,089) | (6,495) | (11,570) |
Segment assets | 1,293,081 | 1,273,678 | 1,858,333 |
Segment liabilities | $ 5,139,955 | $ 6,081,693 | $ 6,588,995 |
Business segment information _2
Business segment information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Reporting Segment [Line Items] | |||
profit for the year | $ 63,593 | $ 86,053 | $ 11,138 |
Impairment loss on non-financial assets | (296) | (500) | 5,967 |
Assets | 6,288,898 | 7,249,666 | 7,609,185 |
Other assets - unallocated | 6,816 | 8,857 | |
Liabilities | 5,250,978 | 6,233,499 | 6,615,595 |
Other liabilities - unallocated | 18,714 | 17,149 | |
Reportable segments [member] | |||
Disclosure of Reporting Segment [Line Items] | |||
profit for the year | 63,593 | 86,053 | 15,189 |
Assets | 6,282,090 | 7,240,835 | 7,592,492 |
Liabilities | 5,232,264 | 6,216,350 | 6,601,980 |
Unallocated amounts [member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Impairment loss on non-financial assets | 0 | 0 | (4,051) |
Other assets - unallocated | 6,808 | 8,831 | 16,693 |
Other liabilities - unallocated | $ 18,714 | $ 17,149 | $ 13,615 |
Business segment information _3
Business segment information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | $ 99,157 | $ 126,657 | $ 127,589 | |
Non-current assets | [1] | 21,411 | 23,673 | 8,319 |
Panama | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 7,580 | 8,649 | 13,913 | |
Non-current assets | [1] | 19,888 | 20,976 | 6,520 |
Mexico | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 14,480 | 18,757 | 14,577 | |
Non-current assets | [1] | 535 | 1,510 | 1,495 |
Colombia | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 13,462 | 10,348 | 15,440 | |
Non-current assets | [1] | 56 | 55 | 7 |
Brazil | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 7,054 | 13,122 | 17,887 | |
Non-current assets | [1] | 129 | 222 | 126 |
Costa Rica | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 7,142 | 10,702 | 11,115 | |
Non-current assets | [1] | 0 | 0 | 0 |
Ecuador | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 9,242 | 13,640 | 10,414 | |
Non-current assets | [1] | 0 | 0 | 0 |
ARGENTINA | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 8,163 | 14,889 | 9,959 | |
Non-current assets | [1] | 212 | 185 | 37 |
Other [Member] | ||||
Disclosure of Reporting Segment [Line Items] | ||||
Revenue | 32,034 | 36,550 | 34,284 | |
Non-current assets | [1] | $ 591 | $ 725 | $ 134 |
[1] | Includes equipment and lesehold improvements, intangibles and investment properties |
Business segment information _4
Business segment information (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure of Reporting Segment [Line Items] | |||
Lease liabilities | $ 18,799 | $ 19,914 | |
Description of Percentage of Revenue that either of the segments had Exceeded | As of December 31, 2020, 2019, and 2018, respectively, the Bank has no customer, either individually or as group of companies, that represents more than 10% of total revenues | ||
IFRS 16 [Member] | |||
Disclosure of Reporting Segment [Line Items] | |||
Right of use assets | $ 17,400 | ||
Lease liabilities | $ 20,900 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Loans, net | $ 4,896,647 | $ 5,823,333 | |
Total asset | 6,288,898 | 7,249,666 | $ 7,609,185 |
Liabilities | |||
Time deposits | 2,968,240 | 2,802,550 | |
Total liabilities | 5,250,978 | 6,233,499 | $ 6,615,595 |
Related parties [member] | |||
Assets | |||
Demand deposits | 3,269 | 3,812 | |
Loans, net | 22,499 | 49,101 | |
Total asset | 25,768 | 52,913 | |
Liabilities | |||
Time deposits | 240,000 | 120,000 | |
Total liabilities | 240,000 | 120,000 | |
Stand-by letters of credit | 28,300 | 20,000 | |
Loss allowance | (60) | (49) | |
Total contingencies | $ 28,240 | $ 19,951 |
Related party transactions (D_2
Related party transactions (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income | |||
Loans | $ 172,548 | $ 253,462 | $ 239,976 |
Total interest income | 180,973 | 273,682 | 258,490 |
Interest expense | |||
Deposits | (25,800) | (67,435) | (63,146) |
Borrowings and debt | (62,723) | (96,732) | (85,601) |
Total interest expense | (88,523) | (164,167) | (148,747) |
Net interest income (expense) | 92,450 | 109,515 | 109,743 |
Other income (expense) | |||
Fees and commissions, net | 10,418 | 15,647 | 17,185 |
Total other income, net | 6,707 | 17,142 | 17,846 |
Operating expenses | |||
Depreciation of equipment and leasehold improvements | (3,587) | (2,854) | (1,282) |
Other expenses | (11,522) | (12,939) | (18,471) |
Total operating expenses | (37,324) | (40,674) | (48,918) |
Net income from related parties | 63,593 | 86,053 | 11,138 |
Related parties [member] | |||
Interest income | |||
Loans | 1,390 | 2,837 | 2,751 |
Total interest income | 1,390 | 2,837 | 2,751 |
Interest expense | |||
Deposits | (2,961) | (3,927) | (984) |
Borrowings and debt | (645) | ||
Total interest expense | (2,961) | (4,572) | (984) |
Net interest income (expense) | (1,571) | (1,735) | 1,767 |
Other income (expense) | |||
Fees and commissions, net | 420 | 132 | 1 |
(Loss) gain on financial instruments, net | 0 | (41) | 41 |
Other income, net | 0 | 0 | 1 |
Total other income, net | 420 | 91 | 43 |
Operating expenses | |||
Depreciation of equipment and leasehold improvements | 0 | (899) | 0 |
Other expenses | 0 | (409) | (2,287) |
Total operating expenses | 0 | (1,308) | (2,287) |
Net income from related parties | $ (1,151) | $ (2,952) | $ (477) |
Related party transactions (D_3
Related party transactions (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions | |||
Compensation costs paid to directors | $ 2,033 | $ 2,289 | $ 2,331 |
Compensation costs paid to executives | $ 5,448 | $ 3,244 | $ 4,943 |
Salaries and other employee e_3
Salaries and other employee expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Salaries and other employee expenses | |||
Wages and salaries | $ 13,717 | $ 13,232 | $ 18,487 |
Payroll taxes | 1,722 | 1,721 | 2,120 |
Personnel benefits | 5,383 | 8,867 | 6,732 |
Share-based payments | 640 | 359 | 650 |
Total | $ 21,462 | $ 24,179 | $ 27,989 |
Salaries and other employee e_4
Salaries and other employee expenses (Details 1) - Restricted Stocks [Member] - Directors [Member] | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Disclosure Of Sharebased Payment Arrangements [Line Items] | |||
Number of Shares, Outstanding at Beginning | 109,350 | 103,650 | 91,950 |
Number of Shares, Granted | 63,000 | 57,000 | 57,000 |
Number of Shares, Vested | (40,200) | (51,300) | (45,300) |
Number of Shares, Outstanding at End | 132,150 | 109,350 | 103,650 |
Number of Shares, Expected to vest | 132,150 | ||
Weighted average grand date fair value Outstanding at beginning | $ / shares | $ 25.44 | $ 27.82 | $ 27.40 |
Weighted average grand date fair value, Granted | $ / shares | 11.54 | 22.68 | 28.70 |
Weighted average grand date fair value, Vested | $ / shares | 26.26 | 27.19 | 28.07 |
Weighted average grand date fair value, Outstanding at End | $ / shares | $ 18.56 | $ 25.44 | $ 27.82 |
Salaries and other employee e_5
Salaries and other employee expenses (Details 2) - Restricted Stocks [Member] | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Disclosure Of Sharebased Payment Arrangements [Line Items] | |||
Aggregate Intrinsic value, Outstanding | $ 15.71 | ||
Aggregate Intrinsic value, Expected to vest | $ 15.71 | ||
Key management personnel of entity or parent [member] | |||
Disclosure Of Sharebased Payment Arrangements [Line Items] | |||
Number of Shares, Outstanding at Beginning | 42,178 | 25,162 | 50,805 |
Number of Shares, Granted | 51,829 | 23,743 | 23,412 |
Number of Shares, Vested | (12,664) | (6,727) | (49,055) |
Number of Shares, Outstanding at End | 81,343 | 42,178 | 25,162 |
Number of Shares, Expected to vest | 81,343 | ||
Weighted average grand date fair value Outstanding at beginning | $ / shares | $ 19.27 | $ 24.86 | $ 21.07 |
Weighted average grand date fair value, Granted | $ / shares | 17.41 | 14.95 | 24.80 |
Weighted average grand date fair value, Vested | $ / shares | 20.24 | 24.92 | 20.90 |
Weighted average grand date fair value, Outstanding at End | $ / shares | $ 17.93 | $ 19.27 | $ 24.86 |
Weighted average remaining contractual term, Outstanding | 2 years 7 months 2 days | ||
Weighted average grand date fair value, Expected to vest | $ / shares | $ 17.93 | ||
Weighted average remaining contractual term, Expected to vest | 2 years 7 months 6 days |
Salaries and other employee e_6
Salaries and other employee expenses (Details 3) - Stock options [Member] | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | |
Disclosure Of Sharebased Payment Arrangements [Line Items] | |||
Number of Share Options Outstanding at Beginning | 142,410 | 142,410 | 273,643 |
Number of share options Granted | 0 | ||
Number of share options Forfeited | (28,315) | ||
Number of share options Exercised | 0 | 0 | (102,918) |
Number of Share Options Outstanding at End | 142,410 | 142,410 | 142,410 |
Number of share options Exercisable | 142,410 | ||
Number of share options Expected to vest | shares | 0 | ||
Weighted average exercise price, Outstanding at Beginning | $ / shares | $ 29.25 | $ 29.25 | $ 27.48 |
Weighted average exercise price, Granted | $ / shares | 0 | ||
Weighted average exercise price, Forfeited | $ / shares | 29.25 | ||
Weighted average exercise price, Exercised | $ / shares | 24.55 | ||
Weighted average exercise price, Exercisable | $ / shares | 29.25 | ||
Weighted average exercise price, Outstanding at End | $ / shares | $ 29.25 | $ 29.25 | $ 29.25 |
Weighted average exercise price, Exercisable, Expected to vest | $ / shares | $ 0 | ||
Weighted Average Remaining Contractual Term of Outstanding | P1Y1M10D | ||
Weighted average remaining contractual term, Exercisable | P1Y1M10D | ||
Aggregate Intrinsic value, Outstanding at End | $ 0 | ||
Aggregate Intrinsic value, Exercisable | 0 | ||
Aggregate Intrinsic value, Expected to vest | $ 0 |
Salaries and other employee e_7
Salaries and other employee expenses (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2008 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Restricted shares, charged against income | $ 306,000 | $ 570,000 | $ 739,000 | |
Restricted shares to Directors | 1,100,000 | 1,400,000 | 1,500,000 | |
Cost pending amortization | $ 699,000 | |||
Duration of amortization of restricted cash | 2 years 3 months 29 days | |||
Vested shares, Fair value | $ 1,100,000 | 1,400,000 | 1,300,000 | |
Amortization cost, Restricted shares | 640,000 | 359,000 | 503,000 | |
Balance outstanding, Restricted shares | 583,000 | |||
Weighted average fair value at measurement date, share options vested | $ 256,000 | 168,000 | 1,000,000 | |
Expiration period | 7 years | |||
Exercise rate of outstanding share options | 25.00% | |||
Amortization cost charged against income | $ 14,000 | |||
Intrinsic value, exercised options | 406,000 | |||
Exercise price, share options granted | 2,500,000 | |||
Wages and salaries | $ 13,717,000 | $ 13,232,000 | $ 18,487,000 | |
Restricted Shares Amortization Over the Year | 3.1 years | |||
Class E shares [Member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Description of lapse of restriction on shares | Restricted stock loses their restriction from the year following the anniversary date, as follows: 35% in the first and second years, and 30% in the third year. | |||
Percentage of vesting of restricted share | 25.00% | |||
Number of shares issued | 57,000 | 57,000 | ||
Number of Shares, Granted | 63,000 | |||
Key management personnel of entity or parent [member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Value of granted restricted share options | $ 902,000 | $ 355,000 | $ 581,000 | |
Wages and salaries | 75,000 | 87,000 | 102,000 | |
Maximum | Key management personnel of entity or parent [member] | Class E shares [Member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Number Of Shares To Be Granted | 3,000,000 | |||
Restricted Stocks [Member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Fair value, Restricted shares granted | $ 727,000 | $ 1,300,000 | $ 1,600,000 | |
Restricted Stocks [Member] | Key management personnel of entity or parent [member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Number of Shares, Granted | 51,829 | 23,743 | 23,412 | |
share-based payment arrangements, Tranche two [Member] | Restricted Stocks [Member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Percent of award vesting rights for share-based payment arrangement | 35.00% | |||
share-based payment arrangements, Tranche three [Member] | Restricted Stocks [Member] | ||||
Disclosure Of Sharebased Payment Arrangements [Line Items] | ||||
Percent of award vesting rights for share-based payment arrangement | 30.00% |
Other expenses (Details)
Other expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other expenses | |||
Administrative | $ 4,142 | $ 5,560 | $ 6,391 |
Professional services | 3,316 | 3,487 | 4,293 |
Maintenance and repairs | 2,081 | 1,770 | 2,912 |
Regulatory Fees | 964 | 994 | 1,246 |
Rental - office and equipment | 575 | 658 | 2,913 |
Advertising and marketing | 100 | 290 | 337 |
Other | 344 | 180 | 379 |
Total | $ 11,522 | $ 12,939 | $ 18,471 |
Applicable laws and regulatio_3
Applicable laws and regulations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash [abstract] | ||
Capital funds | $ 1,048,182 | $ 1,026,125 |
Risk-weighted assets | $ 5,187,054 | $ 5,937,648 |
Capital adequacy index | 20.21% | 17.28% |
Applicable laws and regulatio_4
Applicable laws and regulations (Details 1) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cash [abstract] | ||
Ordinary capital | $ 912,164 | $ 890,106 |
Non-risk weighted asset | $ 6,479,416 | $ 7,323,187 |
Leverage Ratio | 14.08% | 12.15% |
Applicable laws and regulatio_5
Applicable laws and regulations (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Corporation Loan | $ 8,829 | |
Total loans | $ 5,892,997,000 | |
Securities at amortized cost | ||
Corporation Loan | 4,911,397,000 | 5,892,997,000 |
Loans and advances to banks | 2,708,262,000 | 3,282,477,000 |
At fair value through profit or loss | ||
Total loans | 4,916,346,000 | |
Normal [Member] | Securities at amortized cost | ||
Corporation Loan | 4,891,523,000 | 5,817,557,000 |
Loans and advances to banks | 2,708,262,000 | 3,282,477,000 |
Normal [Member] | At fair value through profit or loss | ||
Total loans | 4,896,472,000 | |
Special mention loans | ||
Total loans | 10,900,000 | |
Special mention loans | Securities at amortized cost | ||
Corporation Loan | 9,281,000 | 13,595,000 |
Loans and advances to banks | 0 | 0 |
Special mention loans | At fair value through profit or loss | ||
Total loans | 9,281,000 | |
Substandards [Member] | Securities at amortized cost | ||
Corporation Loan | 10,593,000 | 0 |
Loans and advances to banks | 0 | 0 |
Substandards [Member] | At fair value through profit or loss | ||
Total loans | 10,593,000 | |
Doubtful [Member] | Securities at amortized cost | ||
Corporation Loan | 0 | 0 |
Loans and advances to banks | 0 | 0 |
Doubtful [Member] | At fair value through profit or loss | ||
Total loans | 0 | |
Unrecoverable [Member] | Securities at amortized cost | ||
Corporation Loan | 0 | 61,845,000 |
Loans and advances to banks | 0 | 0 |
Unrecoverable [Member] | At fair value through profit or loss | ||
Total loans | 0 | |
Securities at FVOCI - Corporate debt | Securities at amortized cost | ||
Corporation Loan | 2,167,720,000 | 2,563,299,000 |
Securities at FVOCI - Corporate debt | Normal [Member] | Securities at amortized cost | ||
Corporation Loan | 2,147,846,000 | 2,487,859,000 |
Securities at FVOCI - Corporate debt | Special mention loans | Securities at amortized cost | ||
Corporation Loan | 9,281,000 | 13,595,000 |
Securities at FVOCI - Corporate debt | Substandards [Member] | Securities at amortized cost | ||
Corporation Loan | 10,593,000 | 0 |
Securities at FVOCI - Corporate debt | Doubtful [Member] | Securities at amortized cost | ||
Corporation Loan | 0 | 0 |
Securities at FVOCI - Corporate debt | Unrecoverable [Member] | Securities at amortized cost | ||
Corporation Loan | 0 | 61,845,000 |
Private banks [Member] | Securities at amortized cost | ||
Loans and advances to banks | 2,231,742,000 | 2,692,787,000 |
Private banks [Member] | At fair value through profit or loss | ||
Total loans | 4,949,000 | |
Private banks [Member] | Normal [Member] | Securities at amortized cost | ||
Loans and advances to banks | 2,231,742,000 | 2,692,787,000 |
Private banks [Member] | Normal [Member] | At fair value through profit or loss | ||
Total loans | 4,949,000 | |
Private banks [Member] | Special mention loans | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Private banks [Member] | Special mention loans | At fair value through profit or loss | ||
Total loans | 0 | |
Private banks [Member] | Substandards [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Private banks [Member] | Substandards [Member] | At fair value through profit or loss | ||
Total loans | 0 | |
Private banks [Member] | Doubtful [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Private banks [Member] | Doubtful [Member] | At fair value through profit or loss | ||
Total loans | 0 | |
Private banks [Member] | Unrecoverable [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Private banks [Member] | Unrecoverable [Member] | At fair value through profit or loss | ||
Total loans | 0 | |
Stateowned [Member] | Securities at amortized cost | ||
Loans and advances to banks | 476,520,000 | 589,690,000 |
Stateowned [Member] | Normal [Member] | Securities at amortized cost | ||
Loans and advances to banks | 476,520,000 | 589,690,000 |
Stateowned [Member] | Special mention loans | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Stateowned [Member] | Substandards [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Stateowned [Member] | Doubtful [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Stateowned [Member] | Unrecoverable [Member] | Securities at amortized cost | ||
Loans and advances to banks | 0 | 0 |
Sovereign [Member] | Securities at amortized cost | ||
Sovereign loans | 35,415,000 | 47,221,000 |
Sovereign [Member] | Normal [Member] | Securities at amortized cost | ||
Sovereign loans | 35,415,000 | 47,221,000 |
Sovereign [Member] | Special mention loans | Securities at amortized cost | ||
Sovereign loans | 0 | 0 |
Sovereign [Member] | Substandards [Member] | Securities at amortized cost | ||
Sovereign loans | 0 | 0 |
Sovereign [Member] | Doubtful [Member] | Securities at amortized cost | ||
Sovereign loans | 0 | 0 |
Sovereign [Member] | Unrecoverable [Member] | Securities at amortized cost | ||
Sovereign loans | 0 | 0 |
Allowance For Loan Losses IFRS [Member] | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | 41,165,000 | 99,307,000 |
Allowance For Loan Losses IFRS [Member] | Normal [Member] | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | 34,720,000 | 42,396,000 |
Allowance For Loan Losses IFRS [Member] | Special mention loans | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | 1,857,000 | 2,338,000 |
Allowance For Loan Losses IFRS [Member] | Substandards [Member] | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | 4,588,000 | 0 |
Allowance For Loan Losses IFRS [Member] | Doubtful [Member] | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | 0 | 0 |
Allowance For Loan Losses IFRS [Member] | Unrecoverable [Member] | Securities at amortized cost | ||
Total Allowance for loan losses IFRS | $ 0 | $ 54,573,000 |
Applicable laws and regulatio_6
Applicable laws and regulations (Details 3) - Financial assets impaired [member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Impaired loans | $ 10,593 | $ 61,845 |
Normal [Member] | ||
Impaired loans | 0 | 0 |
Special mention loans | ||
Impaired loans | 0 | 0 |
Substandards [Member] | ||
Impaired loans | 10,593 | 0 |
Doubtful [Member] | ||
Impaired loans | 0 | 0 |
Unrecoverable [Member] | ||
Impaired loans | $ 0 | $ 61,845 |
Applicable laws and regulatio_7
Applicable laws and regulations (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Non-accruing loans: | ||
Total non-accruing loans | $ 10,593 | $ 61,845 |
Interest that would be reversed if the loans had been classified as non-accruing loans | 351 | 1,379 |
Income from collected interest on non-accruing loans | 0 | 631 |
Securities at FVOCI - Corporate debt | ||
Non-accruing loans: | ||
Total non-accruing loans | $ 10,593 | $ 61,845 |
Applicable laws and regulatio_8
Applicable laws and regulations (Details 8) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Corporate | $ 8,829 |
(-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount | 0 |
(+) Interest receivable | 7 |
(-) Unearned interest and deferred fees | 0 |
Allowance IFRS 9 | 1,767 |
Collective allowance (complement to 1.5%) | 0 |
Regulatory reserve (complement to 3%)* | 0 |
Total allowance and reserves | 1,767 |
Special mention loans | |
Total loan portfolio subject to provisions Rule No. 9-2020 | 8,836 |
Stage 3 | |
Corporate | 0 |
(-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount | 0 |
(+) Interest receivable | 0 |
(-) Unearned interest and deferred fees | 0 |
Allowance IFRS 9 | 0 |
Collective allowance (complement to 1.5%) | 0 |
Regulatory reserve (complement to 3%)* | 0 |
Total allowance and reserves | 0 |
Stage 3 | Special mention loans | |
Total loan portfolio subject to provisions Rule No. 9-2020 | 0 |
Stage 1 | |
Corporate | 0 |
(-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount | 0 |
(+) Interest receivable | 0 |
(-) Unearned interest and deferred fees | 0 |
Allowance IFRS 9 | 0 |
Collective allowance (complement to 1.5%) | 0 |
Regulatory reserve (complement to 3%)* | 0 |
Total allowance and reserves | 0 |
Stage 1 | Special mention loans | |
Total loan portfolio subject to provisions Rule No. 9-2020 | 0 |
Stage 2 | Stage 2 | |
Corporate | 8,829 |
(-) Modified loans secured by pledged deposits in the same bank up to the guaranteed amount | 0 |
(+) Interest receivable | 7 |
(-) Unearned interest and deferred fees | 0 |
Allowance IFRS 9 | 1,767 |
Collective allowance (complement to 1.5%) | 0 |
Regulatory reserve (complement to 3%)* | 0 |
Total allowance and reserves | 0 |
Stage 2 | Stage 2 | Special mention loans | |
Total loan portfolio subject to provisions Rule No. 9-2020 | $ 8,836 |
Applicable laws and regulatio_9
Applicable laws and regulations (Details 6) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statutory reserve | $ 136,019 | $ 136,019 |
Dynamic Provision [Member] | ||
Statutory reserve | 136,019 | 136,019 |
Regulatory Credit Reserve [Member] | ||
Statutory reserve | $ 0 | $ 0 |
Applicable laws and regulati_10
Applicable laws and regulations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans, Default Period | 30 days | |
Loans at amortized cost | $ 5,892,997 | |
Minimum | ||
Percentage of Capital Adequacy Index | 8.00% | |
Percentage of Ordinary Primary Capital | 4.50% | |
Percentage of Primary Capital | 6.00% | |
Minimum | Ratio [Member] | ||
Percentage of Liquid Assets | 30.00% | |
Normal [Member] | ||
Percentage of Reserve For Credit Losses | 0.00% | |
Special mention loans | ||
Percentage of Reserve For Credit Losses | 20.00% | |
Substandards [Member] | ||
Percentage of Reserve For Credit Losses | 50.00% | |
Doubtful [Member] | ||
Percentage of Reserve For Credit Losses | 80.00% | |
Unrecoverable [Member] | ||
Percentage of Reserve For Credit Losses | 100.00% | |
Special mention loans | ||
Loans at amortized cost | $ 10,900 | |
Superintendence of Banks of Panama [Member] | ||
Percentage of Liquidity Coverage Ratio | 249.00% | 131.00% |
Maturity of Deposits in Overseas up | 186 days | |
Percentage of Liquidity Index | 79.99% | 100.36% |
Provisions and Credit Reserves | $ 136,000 | $ 136,000 |
Superintendence of Banks of Panama [Member] | Minimum | ||
Percentage of Liquidity Coverage Ratio | 65.00% | 50.00% |
Subsequent events (Details Text
Subsequent events (Details Textual) | Dec. 31, 2020USD ($) |
Subsequent events | |
Dividend payables | $ 0.25 |