Banco Latinoamericano de Comercio Exterior SA Q1 FY2026 earnings call

• Strong balance sheet growth: Commercial portfolio at $12B, deposits at $7.3B. • Profitability: Net income $56.4M, ROE 14.2%, Tier 1 ratio 17.9%. • Fee income: Up 24% YoY despite seasonality. • Strategy execution: Progress on letters of credit platform, onboarding correspondent banking clients. • Macro environment: Latin America resilient with healthy fundamentals, higher commodity prices beneficial.

Commercial portfolio reached $12 billion, up 8% QoQ and 13% YoY. Deposits closed at $7.3 billion, up 11% QoQ and 25% YoY. Net interest income totaled $70 million. Net interest margin at 2.34%. Net income for the quarter reached $56.4 million, return on equity was 14.2%, Tier 1 ratio closed at 17.9%. Fees and commissions reached $13.1 million, up 24% YoY. Operating expenses $22 million, efficiency ratio 26.5%.

• Reaffirmed full-year guidance. • Basel III Tier 1 ratio expected to gradually move towards 15%-16% range. • NIM guidance around 2.30% as mentioned.

• Competitive revenue environment. • Impact of rate cuts on NIM. • Potential impact of geopolitical and financial volatility on the region.

Q: What is your level of concern about the 70 bps sequential increase in Stage 2 loans in the quarter?

A: Not worried, Stage 2 increase reflects proactive risk management.

Q: Why are RWAs under Basel III down 2% QoQ when the commercial portfolio is up 8% QoQ?

A: Basel III is more risk-sensitive, lower risk-weighted asset intensity due to strong credit performance.

Q: How would NIM look excluding the effect of higher concentration of credit transactions closing toward end of quarter?

A: Expect growth in NIM from upcoming quarter.

Q: Are current pace for fee income growth sustainable?

A: Yes, momentum is good with fees becoming more structural.

Q: Any tailwinds or headwinds from conflict between US and Iran on oil and gas related portfolio?

A: Net-net more tailwind, current oil prices positive for portfolio.

Q: What could take 2026 ROE closer to 15% upper band?

A: Balance between higher-for-longer rates and margin pressures.

Q: Has the bank started looking at Venezuela as an opportunity for investment?

A: Actively assessing risks and opportunities, not included in projections yet.