Banco Latinoamericano de Comercio Exterior SA Q3 FY2024 earnings call

• Balance sheet growth: Commercial portfolio and deposits at record levels, with deposits growing 34% Y/Y. - P&L performance: Record net income despite competitive lending environment; noninterest income up 45% YTD. - Strategic plan: Transitioning from optimization to expansion phase; implementing trade finance platform with CGI (30% of work done, to be up and running in H2 next year); treasury platform vendor selection in final stages, with joint press release expected soon.

On the balance sheet, the commercial portfolio reached $9.7 billion, a quarter-on-quarter growth of 5% and year-on-year growth of 17%. Deposits reached a new record of $5.6 billion, growing 34% in the last 12 months, with corporate client deposits nearly doubling. On the P&L side, net income for the quarter was $53 million, a 16% increase compared to the same period last year, resulting in a return on equity of 16.4%. Total noninterest income for the first three quarters was up 45% compared to the same period last year. Letters of credit business had a record performance, generating $7 million in the last three months, growing 8% Q-on-Q and 12% year-on-year. Syndication fees decreased slightly but had a strong pipeline. Expenses increased in line with strategic plan investments, with an efficiency ratio of 27%.

• Commercial portfolio expected to grow close to 14%. - Deposits expected to have 30% average growth for the year (exceeding initial 12%-14% forecast). - Efficiency ratio expected to end the year at approximately 26%. - ROE guidance revised upward to 15%-16% from the initial 14%-15%.

• Competitive lending environment due to increased dollar liquidity and lower local interest rates. - Potential impact of U.S. elections on remittances, trade flows, inflation, and interest rates.

Q: Regarding Brazil spreads and U.S. election impact A: Jorge and Samuel addressed Brazil spreads being compressed due to market competition but growth driven by new strategy, and discussed U.S. election effects on remittances, trade flows, etc.

Q: NIM sensitivity to interest rates A: Annie and Jorge discussed NIM sensitivity to interest rates (100 bps movement impacts NIM and ROE) and non-interest income target to climb to 18% by end of 2026 Q: Loan growth and capital management A: Jorge and Samuel talked about loan growth in Brazil, Guatemala, Dominican Republic, and focus on quality vs quantity with pricing discipline and efficient capital use Q: Dividend payout A: Jorge and Annie discussed dividend policy as an ongoing Board decision balancing growth and returning capital