Earnings Call: Bladex Reports Record-Breaking Q3 2023, Revises Full-Year Guidance

Bladex's CEO, Jorge Salas, announced a record-breaking Q3 2023 during the company's earnings call. The bank achieved a 4% YoY asset growth on the portfolio, 23% YoY growth in client deposits, and a record net income of $45.8 million. The bank's strategic initiatives, including client onboarding and higher corporate client participation, contributed to these results. Bladex's CFO, Annie Varela de Mendez, highlighted the bank's strong balance sheet, solid funding sources, and positive bottom-line trend. The bank also revised its full-year guidance.

Key takeaways from the call include:

• Net interest income for the quarter reached $60.5 million, a 51% increase YoY, and fee income increased by 77% YoY.
• The bank's asset quality remained sound, with 97% of the credit portfolio categorized as low risk.
• Bladex revised its full-year guidance, including a net interest margin expected to remain between 2.4% and 2.5%, substantial fee growth, and a return on equity between 14% and 15% by year-end.
• The bank reported $273 million in credits classified as Stage 2, which consist of credits in industries with anticipated downturns in their operating cycles.
• The bank is monitoring the Israel-Hamas conflict for potential implications in the Latin American region.
• The board is considering potential modifications to the dividend policy and will make decisions aligned with the bank's 2026 guidance and focus on maximizing total shareholder return.

During the call, Salas also discussed the implications of the Israel-Hamas conflict on the Latin American region. He noted that the conflict has led to an increase in commodity prices, particularly oil, which benefits oil exporters in South America but negatively impacts Central American and Caribbean economies that are importers of refined products. As a trade bank, Bladex finances both imports and exports, so an increase in commodity prices has historically been beneficial for the company.

Regarding the company's dividend policy, Salas stated that capital management, including dividends and potential buybacks, is an ongoing discussion at the board level. The board aims to maximize total shareholder return while also managing capital ratios and remaining strongly capitalized to maintain its investment grade.

Salas also mentioned that the company is currently working on its 2024 budget and will provide guidance on the results in the next call.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App