Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to Bladex First Quarter 2023 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available on the Investor section of the Company's website www.bladex.com. There'll be an opportunity for you to ask questions at the end of today's presentation. Please note that the conference call is being recorded.

As a reminder, all participants are in a listen-only mode.

turn over to Mr. like now the to call I'd Relations Carlos Investor Raad, the Officer. sir. go Please ahead, yours. is Line

Carlos Raad

Good morning, thanks call. everyone, and XXXX first earnings quarter for joining our

materially we current discussion number uncertainties Company's may remind including forward-looking may statements, to me differ, made Before a based of the beliefs constitute presentation, that on and be are actual certain subject management's during this and that results and that could statements to the of course which our begin expectations risks to you factors cause beyond allow are control.

risks, For a earnings description refer filings of and and these with Securities the our Exchange Commission please U.S. our release. to

some that Speaking for Jorge on joining and CEO, of today's will the from Q&A. our are Salas; my executive the be is Mendez. colleagues CFO, available team call our Ana today Also us

call turn Please let the ahead. this, to With Jorge. me go

Jorge Salas

Bladex, start level Ana, as share as more macro well Then Thank year. Later, the global I execution for of its open everyone. update will call scenario all I you, providing will on that, finally, metrics strategic overview results in questions. of results as discuss by CFO and the our the guidance detail. our effects high current assessments some for plan. good the Carlos, will will I on you and as our some key well of After on today your a we of an morning, will summary

X. Slide to on Moving

the provides So summary for a this quarter. of results our slide

reflection team performance last a than themselves. quarter few renewed the focus results profitability for quarter unit Both our XXXX in our of challenging growth. are of despite is had for commercial our emphasis. rather last environment our treasury anticipated Results The strong As that months. and this very speak the for a clear call, on results

model. Again, that of On the higher strong, same Net quarter basis XXX margin a for portfolio is essential of and Xx million, income for X.XX%. points income resulted the bank a was last the diversified only part the fee QX was All was XX.X%. XXXX. our over more remains as million, than net not period but this on interest top fees, year. essentially of guidance, was income business healthy which more loan interest the are year. $XX compared Quarterly robust in equity our of same our quarter was that, double Record letters of with last Consistent also pipeline. to a loan a credit at an book $XX return trade than quarter, but net with the flat for than particularly, period

the to slide, X, please. next on Slide Moving

quarter the potential the designed our result business Our upside strong model. is performance unique of strong capitalize carefully a executing this to on well-thought-out-strategy a of

briefly key our me year. you clients, KPIs are four new from of frontline share generation Let incremental for the metrics Onboarding and with fee that deposits business. our part credit of letters time,

new through to process. client onboarding continues commercial Our our team base our expand client streamlined

allowed us has add last onboarding We quarter. to which have new by time reduced X% already, XX% clients

change our and not customer have We not will profile.

challenging serve us We allowed spreads to region. has enhance only client our will base a in corporations in But and banks expanding top-tier more lending scenario. the macro

of additional shareholders As and grew XX% and grew part performance a Yankees you institutions CD the in Both an also our funding had of deposits clients, client left resilience quarter-on-quarter. times. see quarter, demonstration in deposits financial base the favorable slide, last the our including of during the bottom program corporate A challenging Class

of source our deposits clearly are funding. Importantly, most efficient cost

is only capture. XX% [planned potential funding, intends] total So still of upside there to to are the significant here represent extent they that

Fees of process close there the quarter-after-quarter. for letters new you this volume from below, streamlined steadily quarter-after-quarters. to also Behind fees to is increased million, graph $X credit keeps growth, the QX over as are see our were seeing designed from accommodate a in a growing Finally, upXX% unit year-ago. we

now, more it discuss I'm detail. let the here going results in and for Annie to leave

Ana Mendez

Thanks, to everyone. morning Jorge. Good

our the So Slide discuss now starting underlying drivers let and me trends XXXX quarter first of X. results on

favorable of topline As U.S. continues of revenues in lending on annualized latter mentioned, in beginning $XX the positive benefit line to ROE. from continued since year. which interest quarter, continued rate reflect net a result position, a for we in This spreads the last the results million remarkable income growth of trend gap a increases dollar given trend Jorge and the rates XX.X% with market just solid resulting bottom reaching a

Let walk these explain loss and our better line items sheet balance through results. to you me now and profit

So let's assets a $X.X by Total stable billion, from at X. remained quarter-on-quarter X% turn to up Slide year-ago.

push in in flows. call the we to commodity trade generated due strong mentioned and we our As most the synergies with of prices last combined the XXXX, growth throughout loan incorporation of clients saw new by

increased lending XXXX, year-end balances and lower given entering a anticipated optimal and focused also the while into preserving while capital capital toward sound outlook macro returns challenging allocation more We on XXXX remaining position.

before. book country at costs and $XXX amortized million by no maturity exposures portfolio accounted As the is an lower for by investment end. for to allowing recognized $X.X were bank's billion or reaching quarter at mark-to-market are than end value the balance million securities total, ending held still in for lending X%, by previous of which business income in from an or diversification the by slightly X% portfolio balances of at Of balance XX% sheet with such, up The but complimented further year is $XXX quarter this quarter loan statement.

investment equity basis other liquid through representing in a at recognized are income at of securities $XXX,XXX quarter assets. end. The this approximately book value to points in portfolio of mark-to-market fair equity merely at its Nonetheless, is remaining million comprehensive mark-to-market $XX market and equivalent with for value XX its and value of bank's March its represents the XX the calculated X.X% XX% X.X% or

mostly prudent liquidity due Reserve management, in The towards Federal with at the assets quarter bank's the end cash of a denoting and placements deposits York experienced New financial of sector at of form particularly banks the the under XX% quarter-end, increased shake up. the stood volatility given the total of XX% and from

every spreads Moving our been allows case on XX% maturities total the you trend distinctive similar commercial portfolio trade model, the market over capturing X, to the billion lending to turnover of quickly in up the of has business both. about pick see repeats consistently our high upward quarter, disbursements to several trends, and rate with which quarters, last a which us the the for Slide representing of $X.X amounting amount. This can for quarter, and

a the average the and suffered XX stood denoting spread base XXXX, mostly over points from market So at basis X.XX%, rate points basis for the by increased of quarter. from lending first XX proceeding up year-ago and quarter

XX maturing remains commercial billion, year up within from mainly of close balance Aside the XX% year. by sheet the portfolio which credit to tied business at with to and a from portfolio level. from XX% annually billion loans, XX% increased letters last for to was off of includes closely trade total preceding X% the the $X.X the which duration months exposure, at quarter, X% Average related to short balance next by $X.X commercial portfolio activity, quarter preceding and above

as as December verified up quarter has bank base Jorge a the from by been the deposit recent to in turmoil given again commented. resiliency European on and a increased scenario funding sectors, billion, structure Bladex’s X, the the Continuing to levels of and financial U.S. of once in Slide just heightened the tested by during year-ago and up its $X.X XX% from XXXX XX% uncertainty,

resilient important of portion central their a funding economic Latin-American shareholders international an of coming represented A cycle. Deposits who have banks throughout source reserve from with share historically and A of Class which the place are Bladex. large

loan the and well and diversification been growing global placed program worldwide has from a syndicated lines debt market. correspondent Yankee bank our to continuous markets addition, availability from the as have Apart bilateral base. that as further CD deposit, capital ample access provide we In deposit banks to volume granularity credit many in in continue successfully of to has and

X. to now Slide Turning

adjusted capitalization through similar of mix year-end committed and end as remain over case Board sound in proceeding per well. quarters. dividend the as continuing capital of recently stood XXXX, loan position unchanged the levels was The declared at $X.XX optimization proceeding Our growth, quarter as a to risk a portfolio share, from to returns expansion margin quarter an at from we favor amount

X. present turning and strong the to We interest sustained Now net performance. net topline Slide spread trend interest margin in driving positive

basis is our the points the XX to refer and an of spread, differential between from and which first me interest tend increased both point reflects differential quarter Q the last X.XX% positive short of sensitive in in based the assets rate and and stabilize. liabilities average basis NIS quarter increase will interest of decrease XX reaching XXXX, year. reflecting market which rate dated assets from between net and preceding gap rate first the increase This interest Let asset rate once spreads first lending to liabilities,

by points Q points of XXX income equity. XX of year, assets the by basis yield earning quarter last and impact by by on increase average overall market an representing divided interest basis supported Net margin in net X.XX% of spread interest financed higher interest from XXXX, interest reached increasing preceding first bank's and rates assets from of both net the the the

increases X. spread on can interest was lending the and driver that first We Slide Moving net of market rate assets increased on the liabilities supported as see of during the and quarter higher of XXXX. overall rates, impact just stated by to income

million. compensated the the liquidity $X.X reduction increased of average variations of a decrease net NII X% decline volume. to X% increased mainly while or lending on So was $XX for partly in in preceding with $XXX This NII million average balances offset the count $XXX average was million a of the or $X.X the of rates quarter. This higher respect X%, balances, accounting effect by in average somewhat million was a by funding volume result million of net by impact or

as of quarterly shown rated the LC clients several activity with an fee Jorge volumes, increase as XX, On for in letters have income increased mentioned. transactions credit seen Slide trend have business last the and in from quarters, we

The syndication other main for and business. the component relates generation the fee structuring to bank of

in but nature, part annually resolved quarter, XXXX. similar much Given of fees levers pipeline on analyzed this quarterly should a be should transactions first during than this have activity by than quarters, basis. that coming didn't We we also in its annual see seasonality, in bringing a do explained activity at rather been transaction-based

X. $XXX million As X shown million, classified exposure $XXX total year. for million under defined on total are by risk Stage an of which the another a $XXX experienced as robust, credits Stage $X.X still portfolio categorized quarter Slide performing. credits X come for XX, Stage from X last monitored has asset the from closely IFRS have as billion of down credit having or X.X% but amount XX% quality Accounting and as remains low-risk of in origination preceding consists increased since were that

or related securities of the charges mostly internally. increased proceeding total credits, that Stage from well on million, Finally, million, reserve the Total of credits the to of X.X% an provision total quarter Stage Xx quarter. Stage more Overall, for of coverage X as certain X represent to allocated credit nearly first of is investment an downgraded impaired than increase exposure as individually $XX for reserve XXXX balance allowances to unchanged $X.X were amounted to credits. a amount impaired total X

bank's see can XX% has efficiency, level solid by design. the a first XX, XXXX expenses in higher On reaching quarter as we of a the income below consistently cost positive growth revenue overcompensated Slide for to trend

account total of from were in first down usual the quarter, on administrative quarter is slower expenses during the the the preceding year. the first expenses, During pace of which quarter

salary expenses employee-related due stable and a strengthening Congruent execution increase with on during our on strategic present basis hand plan. XXXX. capabilities and remained higher new an other hires Bladex's our on base on Salaries as quarter-on-quarter delineated focus annual relatively the to in

to leave Jorge. and back the Thank now turn you. I here call it will

Jorge Salas

year. lower unclear, eventually to lower levels. end Annie. remains We of for We above anticipated target and rates, this interest the this point the turning towards slower transition that you, we a XXXX rates occur slightly of year Thank the and towards inflation scope still shift rates, timing anticipate but although growth, will in be recognized interest

in Our very business assets matched sharing short-term and banking although strong landscape. a with book model advantage provide liability identical similar, and duration essentially not by centers current characterized a the

proven As we beneficial able our or Annie to rate explained swiftly position be to sensitive particularly recently. be slightly sheet outlook depending before, has are balance the fact environment asset to on that the liability sensitive

tends general, in have limited in, One, any operate they main minimal of we deposits, region believe much and substantial banks. be duration banks banks their in region the three if shorter of the those exposure of we Latin-American be local level the course, U.S. contagious regional of as should have far to As banks, to portfolio U.S. reasons. securities risk for retail for than

in and outperformed forecast financial and these see growth still expectations inflation remain the growth and financial trade growth U.S. the for prices, due countries Despite macroeconomic to headwinds, downwards like remaining is for the below decreasing, peak far a been overall above balanced but from target foreign revised XXXX trend and still challenges. outlook despite have GDP economic uncertainty. We Latin-American levels challenging being Latin-American transition economies we from just levels, stable. rates see XXXX, In commodity But lower global global robust. The conditions, to

also the credit their increased exposure core our reasons. Two, has less dollar a essentially trade denominated the the LATAM for domestic demand for cases in lender, for trade substantial the global high us region of levels, above demand those we Although challenging a increased limiting denominated from current financing standpoint, for opportunities U.S. see and with our we in interest finance the One, than for larger in or fact significantly Bladex are institutions competitions particularly increased rates context clients. provides dollar most and times risk volatility, in several that living in business.

relaxing context keep standards. our opportunities advantage will provides the taking that We underwriting credit of without this

by to is to that in XX% a higher already anticipate the recent we are particularly we that to interest last our between updating ROE the original are our from guidance new Now net range XX% guidance, of range XX% fact higher X.X%. XX% to performance be XXXX closer given our Today, and margin that range and an year-end. we

investments prioritizing of and our closing, enhancing strategic by profitability committed optimistic we operational to and strategic remain are In this efficiency, we year plan. execution the about

and here the call it questions. for leave to Thank going I'm Operator? you. now open

Operator

of Thank very part We'll be the Instructions] Q&A you the moving much for call. now [Operator presentation. to the Okay.

few The first questions a read first. question, we'll text

Bladex? this Patrick a increasing back first behind individual your Mr. normal in The from the what Great question dividend And congratulations. a results, environment? for Is of a interest new lower my investor. level profitability Brown, is policy pre-pandemic to not it is second Is question, rate rationale sustainable the levels?

Jorge Salas

two for you Hi. your Thank questions.

Going with the first one first.

over all incremental our back in in and November, into yield As our opportunities I business in of the without will we've that our we in more is Two, that that We've on and strategic other heavy this detailed great them changing these be funding, you of increasing mainly funding year reporting the the and webcast website, as essence source efficient most re-engineering five results changing our penetration our efficiency, quarter been yielded our and base that. is on – we've systematically. and and sources. reporting already cross-sell one, are major processes as we've some been mix on said Investor operational to tap And remind to opposed plan key seeing Day our and deposits have that our Three, outside for over last designed well. this to we're and customer model. profitability deposits been our growing – opportunities

credit Investor think of solutions opportunities income. assure will Day. the That's supply be adding solutions as we one goes of our unit all sheet risk advantage supply and active finance be as plain ROEs as our in an in balance mid-teens will – with fee to together vanilla additional and communicated This increase margins the solutions the structured we of sustainable We and generate that in this is Four us reporting clients. treasury reach project by. our will trade more products. to probably over important without arbitrage chain client that of take our the chain we'll long platform basically fifth And we that year our incremental enable finance turning this management that run is most then time important on to

was – I was it Second think think questions, regarding two right? question I

Operator

second the to levels? is Now increasing behind what dividend rationale your not pre-pandemic the question, policy

Jorge Salas

Yes. guidance the in the in in the Consistent region, I that as growth is Good mode. headwinds bank year the be mistake in growth moderate, as mode. Investor well. clearly This gave, is growth given will said Day, no question with but make the bank the we

our capital We we between XX% are rating ratio we currently the and capitalized XX%. operating of end at feel operate means. any This the we by and in was the we that region our will risk not need is ratio guidance capital operate investment remain to that strongly lower grade and

the discussions depending potential at long-term always with issuing as exceptional I the that, on conditions, has, are level that XX extraordinary and Board even on type discussed Alternatives a capital in view. hybrid on buybacks on ongoing conditions. said Board additional depending management have case its we always Having include returns say market instruments capital marketing dividends management

that the is being all discussed level. at So Board

Operator

very Okay. Jeffrey next is plan. text Thank from Jeffrey Otto from We'll your question. to proceeding business question Yes. execution on continued of This your much. the Otto Mr. CPA. you be Congratulations

appreciate a As Thank your I investor, work. truly long-term you.

rate little insight us existing it the and approximate leveraged and against rates would you your cost of your in environment? the be XXXX would margin, prior in and up you interest bit XXXX, between increase more to timing as net lower capturing difference of and funds a late cost today's maturities of Could debt cost funds. interest the please in give XXXX, Regarding

Jorge Salas

Head it turn well. tackle good want you much. related funds, Capital and That's funding our it's since I'm very to do Treasury and you as Markets. of to question to Eduardo, that? Eduardo so to And of a Thank Vivone, going cost

Eduardo Vivone

you, Jorge. Yes. Thank

contractual couple maintains are maturities [indiscernible] will place for to said already markets monitor base. that funding Mexican maturities matched book may seize to bank provide the robust significant and of bank further practically our to in and XXXX bond any continue a terms The capital markets new XXXX. our in of reinforce Having U.S. will late and that the take this that, opportunities first

I has As in considering spread, say of of balance regard are environment. part funding level of reflection your the face in would current to current cost average market in cost the short the question, of bank the that the was sheet our our believe terms standard of to funds, which I good a second the

narrow expected interest of know. $X a I low beyond benefit said took XXXX, As hope gap, faster of very interest bank there's in fixed rates XX than bank a their the maintains advantage next rate environment term of anything fixed approximately than The more gap, this If have your questions. gap, interest rate months. low liabilities. medium rate answered into resulted the reach average let that today of is regard to cost in liabilities positive to XXXX, points replace allowing I assets that, else, [indiscernible] as to that please billion rate basis peak. reprised have transactions XX the Having as me

Operator

very much. you Thank Okay.

will take the now Please We voice question ahead, sir. [indiscernible]. go from

open. line Your is

Unidentified Analyst

Good Hi. and positive net say. would I on has been question a got morning, I Ana. margins, a which Jorge surprise, interest

full-year. like guiding You the between for X.X were X and

but there's pieces. on the lending there's about I the interest rates the about is interest the the in you How can you in from the this Now you. X%, good, sort the uncertainty. will means need is rates the next states need know in we and that environment, the there the you I living cycle How I the a to target X.X return there go spread, aside year? especially margins instead states? us risk is which there and on aside of rate during But the moving the few of optimization of do on if how do XX, and spread guess net rest lending XX, lot interest I think more margins know very equity plan XX. than to XX said, think to are [data] already, which some looks Thank do give I market the have. quarters? you interest spread color appetite, expect is of

Jorge Salas

Thank you, [Ngo].

clearly are lender. we So dollar a denominated

assets our of floating. All are and most liabilities, them of

we're do give about So spreads. our we're the base at then want when short-term Annie, rate – to we and seeing it spreads about levels going in year And you effect region. of probably in the – answer on do looking can affect turn think to view going a we them. a for more to direct I'm rates in what U.S. how interest turn of tackle? to detailed Annie and at perhaps more Samuel spreads, talk the terms I'm this when of

Ana Mendez

you last beyond bank is XX just of that's we mentioned in of before, our even but basis XXXX that day. portion. and place we terms to are Ngo. just And margin towards as year. differential And Jorge a Eduardo amounts know increases the about out beginning rates – effect they several Thank to points, interest the had impact a big the saw interest quarter. margin. this the laddered, peak today XXXX Good Yes. that reprise in mentioned, position mentioned late which to that have yes, U.S. that you, of an live have with debt of rate, amount actually And dollar positive Like in the we I that impact, quarters. going increasing an next that seen Eduardo rates said and did are interest over important net We net they fixed continuously a like like interest at

we that the As going rate to to as now. spread off, base going terms the pickup costs, terms that time as differentials start level of of And but Sam, some have the to take maturities well of in in funding the the word rates I'm of we because interest give it'll also forward. see should the debt

half quarter liability and happens on more it that's side. loan of or remember You our a we have of turnover lot maturing book book every of book half that also about have even the to a the our than of

our rates spreads Like we do up we definitely in trends any cost. rates spreads. and to in funding said, able are So our market both or Eduardo in our pick base see stable

seen any little haven't Europe. bit can lending in our there spreads, we now And which We financial several to the of commodity U.S. over in in Sam, please. year. recent word Sam, even the the quarters about with also turmoils saw recently the now, the a increase particularly I the boom increase sector and talk importantly last last of prices give

Samuel Canineu

Sure.

first of – think prediction we short because tenor our to very and at it look all, when our and I it's when given spread we've Annie upwards look downwards to any to everything we make say very the less let's for of can touched even seen fast model, little of book change book, and can on doing point, opportunities, term at depending is this say, in loan the increasing about hard on, as that condition. about medium cost the conditions the is subject strategy a I that on recurrency be book. market we've – What been short-term in changes back our increasing bit course, our market business creating

added up that we the new to changes, has I spread we lower as conditions, have in But now of prices have commodities. model market still because a the our to region well environment, the lot lower were because economic say the as of capturing year choose level would clients able particularly would the the quarter sustain business of all We this from. – across increasing say to the margins course more our model, and the now demand I a of do just we commodity just and price. have clients of improvement of of we saw first with reached business to

next to look as credit going very when aware profile the desired. because in more take going country. I of we're on, than on what's we're much We're upside not increasing quarters, as and risks see I I our changing think, think, I don't margins not

so and I we sustain have from we far, achieving think current doing the So a so expect the change that and have job objective materially been is been the to And good don't I spread challenge that. far. to

Jorge Salas

of answers we – the would sensitive stress another. or in the rates and that the only in nature question, to the Hope see given Ngo. repricing asset bank, liability sensitive of this pivoting your the slightly shift I case from to one ability way short-term

Unidentified Analyst

clear. you very Thank Super much.

Jorge Salas

you. Thank

Operator

Thank Okay. you very much.

go is ahead, a voice ma'am. question Andrea Atuesta Please next from question Bancolombia. Our from

line is open. Your

Andrea Atuesta

Hello, for into I of my you just the please at account and XXXX. of taking question. guidance of question good [indiscernible] taking the And and new Thank guidance these in that know of we if indicators positive very year? I to end also recovery beginning want the the have thank to much. by the trends your America. one contemplate watch the Can you the are of the beginning results main morning, repeat you dynamics international the trade Latin

Jorge Salas

growth expect slowing X.X% going for year to IMF. I'm you, the last be down. according of will Latin we to two XXXX more growth, GDP in first. GDP the America for question. part for order X% by your Andrea Thank start the This

the slowdown a – see we in So region. slowdown GDP growth

and grow the On this X% imports year year. the other hand, estimated almost is plus next exports to region, X% trade for

had a $X far highs, that in record and trade as that XXXX XX% I higher region we levels in higher say trade pre-pandemic. America trillion, we what are must So and than at had as what than XXXX Latin not was almost in almost XX%

driver So its trade levels a end our – record very for is important growing year. this and us

year, we is Efficiency between and XX% done X.X% far traditionally, and fees. at and and what anticipated we're between margin we They we And that of better as XX% interest in than and credit before, remain we're net the end XX%. is in quarter, saying what the between our Fees mentioned, between it's have our ROE growing our results X.X%. mentioned originally XXXX, your like our XX% for answers even that especially and increase giving the between and we as XX% for questions? you that's And did questions. higher have includes capital more will range. revenues. seeing change our additional letters but guidance As was our because XX%, now – already improving, any Annie the still with than X% line mentioned I current. first XX%. of year, syndication initially guidance. It as Do said Hope We're for of and that

Operator

setting you these of to be how see to and the text individual really jumped now question out your net for on Vallarino, XX.X% interest record X.XX%. things We'll from Congratulations the you investor. Two an spread plan? much. Thank efficiency rest Could two that Mr. ratio moving very on me strategic Ricardo of excellent elaborate were of behaving you quarter.

Jorge Salas

plan touched think achieved of spread more the there, advantage course, efficient we is now, of while that the a are to have take Ricardo we before. I capital is designed level. they The on way

that solutions, and headwinds increased we're have where income have treasury in improving. type the that's that Cross-sell were on mentioned to products, is But also the is compensate now, for see what we should finance and going chain and the to going what base. real plan on to future. you're working additional margins fee key and is, customer our supply also I trade structure, before additional finance, We regarding

will we we we that a ROEs executing we XXXX. thought by we – sustainable do are in are confident that achieve do our and mid-teens So see as manner plan we believe

Operator

for much very you Thank the answer.

Marrone go next ahead, is Jim voice sir. Please a question Our Mr. from Research. question Singular from

Your open. line is

detected line. Singular once Research, Jim your from question Just from we again, Marrone

ahead. open. is line go Your Please

Jim Marrone

call. for Yes. Thank taking you my

again, it upon if touched reiterate. could have but may just you You

the a You book. in managing did job great

of books, just your well hearing and sensitivities explained if but to and rates, Bladex risk regards you color terms risk clients what provide perhaps default perhaps higher rate your with and impact assets liabilities, to the a your from both on the your higher terms increased of the interest of in provisions. credit going inflation forward in little bit approach you could are client's of You've

If as bit could you in to approach Thank handling of their clients provide you're a just from color of terms on well book? your the hearing as you. little what books,

Jorge Salas

clients will credit provisions the for turn to a are Head a in over-leveraged is level shift countries we there's our Unit, it sustaining case that need our have doubt exposures no are in leveraged say we our just me for our that. interest different region. I'll sectors. And on news rates plan, things that that couple it Let Canineu. that to the Good and in that and mean level in this Sam Commercial of account to I of effect accounts of less ability clients different have and then

local as is we capital banks. are far than markets, also banks that's more in let U.S. true see But As our where interest capital rates I'm of and or seeing recently. going clients markets And our that perhaps competitions some accessing Sam. to even other international we even the

Samuel Canineu

the we're is Sure. our of rest the I is Well, what, which good the say, environment model, there the current think about the country think a over news present Yes. there's right business facing globe always I is let's that years, in facing now.

the average exit nothing well as the there's our client in operate. on And moment we of countries is enter, we we for criteria So book. new as life moment selection of how sectors, this our part the that

see said, the that now, environment course, combination region, interest rates. recessionary we high the with of So of and right in

like certain more, sector among not seeing suffering an retail are exposure that that and this there sectors, course others to are issue. really we have we're therefore, sectors Of no

particularly debt interest stress stress ratios. we we I cover lot, lot a think ratios medium-term, as we well a go leverage to when as

long-term book healthy and environment all permanent So whatever clients financing, our is a problem. without current of is financing very our the sustain more, or should let's say

brings with course, market because I'd us drop can this when loans that's we healthy also we like that now, banks worry will focus portfolio, and – see have and from to that the focus about that in I to an to the lot seen think, concerns add ability of right liquidity on companies more seen companies over in of that a a the also – step problem really gives have great banks good clients. have on opportunity in

this Thank is, not So I again, for positive us. think you.

Operator

back you have Okay. That's timed their for very to all Thank the I'll the line for Bladex you. remarks. team Thank pass questions much. concluding the today. we

Jorge Salas

just I everybody thank for to good your want questions. very

the confident continue we this you very plan, and much. and about execution going positive are the trend forward. are optimistic of We future that our Thank will

Operator

all goodbye. you very lines. This call. much. closing the We'll much very concludes you now Thank Thank be conference and today's

Banco Latinoamericano de Comercio Exterior, S. A. (BLX) 19 Apr 232023 Q1 Earnings call transcript