4Q15 Earnings Results February 19, 2016 The information presented - PowerPoint PPT Presentation

4Q15 Earnings Results February 19, 2016

The information presented herein is based on reported un-audited results for the year ended December 31, 2015, which have been prepared following International Financial Reporting Standards (“ IFRS ”) in adherence to a mandate for licensed Banks supervised by the Superintendency of Banks of Panama, as the Bank completes its transition from its previous accounting standard, US-GAAP. The Bank has applied the provisions of IFRS 1 in presenting its financial results. The Bank ´ s transition date is January 1, 2014, for which it has prepared its opening consolidated statement of financial position under IFRS as of that date, with comparative information provided as of December 31, 2014 and December 31, 2015. 2

I. Transition to IFRS Main effects on Bladex’s Financial Statements • Basis of Consolidation: Previous GAAP established a variable interest entity (VIE) model and, for non-VIE, a voting interest model. IFRS defines, and focuses on control as the basis for consolidation regardless of the form of the investee, with the effect that Bladex’s former investment in the Bladex Asset Management Unit did not meet IFRS consolidation criteria. • Allowance for credit losses & impairment of investment securities: Under previous GAAP, allowances were based on an incurred credit loss model. Under IFRS, and with the early-adoption of the IFRS 9 standard, the determination of deterioration or improvement in the credit quality is based on forward-looking expected credit losses (over a 12-month period or life-time, depending on the stage of impairment). The expected credit loss model is applied to a broader range of debt instruments, including bonds. • Hedging Derivatives: Previous GAAP allowed certain methods to simplify the determination of the effectiveness of hedging relationships. Under IFRS, the level of ineffectiveness is determined for each transaction, and recorded in the consolidated statement of income. • Variable Compensation in Stock: Under previous GAAP, the straight-line attribution method was used to recognize the compensation cost of awards with vesting periods. Under IFRS, recognition follows an accelerated amortization pattern over the vesting period. • Foreign Exchange Gains or Losses and Cumulative Translation Differences: While recorded in Other Comprehensive Income under previous GAAP in the case of certain assets, IFRS prescribes recognition in the consolidated statement of income. Upon first-time adoption, IFRS 1 allows a reset of cumulative translation differences to zero as at the transition date. Overall transition effects fairly limited, mainly due to the Bank’s focused business model and short-dated book of business 3

III. Financial Performance Overview • Net Income of $104.0 million, up +2% YoY from higher revenues, lower expenses and non-core gains from the participation in investment funds, partially offset by higher provision and impairment loss for expected credit Year 2015 losses on loans and investment securities (+$6.5 million). • Business Net Income of $99.0 million (flat YoY). • +3% increase in average Commercial Portfolio to $7.1 billion. • $104.0 MM Net Income +3% increase in Net Interest Income on 4% growth in average loans balances, as lending rates and average funding costs remained stable. (+2% YoY) • Fee income from the letter of credit business and loan structuring activities rises to $19.2 million (+10% YoY). 7 syndicated/club deal transactions successfully executed in 2015. • Expenses drop -3% YoY, with Business Efficiency Ratio improving to 31%, Overall Efficiency Ratio to 30%. 11.0% ROAE • NIM at 1.84% (-4 bps YoY), mainly from higher average liquidity balances in the asset mix. 10.4% Business ROAE • Reserve coverage ratio increased 11 bps to 1.33% from 1.22% on higher expected credit losses. Non- performing loan ratio increased temporarily to 0.78% on isolated exposure in Oil & Gas sector, with reduction to 0.42% on pre-payments received subsequent to date of close. • Net Income of $23.2 million (-38%QoQ, -35% YoY), mainly from swing in results from particpation in investment funds, and provision for, and impairment loss from, expected credit losses on loans and investment securities, respectively. 4Q15 • Business Net Income of $25.3 million (-17% QoQ, -16% YoY). • Average Commercial Portfolio balances grew to $7.2 billion (+1%QoQ, -1%YoY). $23.2 MM Net Income • +2% QoQ increase in Net Interest Income on higher lending rates (+10 bps) and higher average loan balances (+2%). -2% YoY decrease attributable to increased average funding costs (+16 bps) on higher average funding (-38% QoQ, -35% YoY) tenors, with partial offset by increase in average loan balances (+1%) and lending rates (+10 bps). • Fee income & other income (-6% QoQ, +9% YoY). QoQ decrease attributable to lower fees from syndicated transactions, partially offset by higher net gain on sale of loans at amortized cost. YoY increase mainly attributable to commissions from Letters of Credit and contingency business. 9.5% ROAE • NIM at 1.90% (+7 bps QoQ, -2 bps YoY) due to higher average balances and lending rates, offsetting increased 10.4% Business ROAE average funding costs from higher average funding tenors and LIBOR rates. • Board declared $0.385 quarterly dividend per share. 4

Key Financial Metrics (In US$ million, except percentages) 2015 2014 YoY 4Q15 3Q15 4Q14 QoQ YoY Business Net Income $99.0 $99.7 -1% $25.3 $30.3 $30.2 -17% -16% -129% Non-Core Income 5.0 2.7 87% (2.0) 7.1 5.5 n.m. Results Net Income -38% $104.0 $102.4 2% $23.2 $37.4 $35.7 -35% EPS (US$) $2.67 $2.65 1% $0.60 $0.96 $0.92 -38% -35% Return on Average Equity (ROAE) 11.0% 11.5% -4% 9.5% 15.5% 15.5% -39% -38% Business Return on Average Equity ("Business ROAE") 10.4% 11.2% -7% 10.4% 12.6% 13.1% -18% -21% Return on Average Assets (ROAA) 1.32% 1.35% -3% 1.17% 1.85% 1.77% -37% -34% Performance Busines Return on Assets ("Business ROAA") 1.25% 1.32% -5% 1.27% 1.50% 1.50% -15% -15% Net Interest Margin ("NIM") 1.84% 1.88% -2% 1.90% 1.83% 1.92% 4% -1% Net Interest Spread ("NIS") 1.68% 1.72% 1.72% 1.67% 1.77% 3% -2% -3% Loan Portfolio 6,692 6,686 0% 6,692 6,759 6,686 -1% 0% Portfolio Quality (*) Commercial Portfolio 7,155 7,187 0% 7,155 7,124 7,187 0% 0% Reserve for expected Credit Losses to Commercial Portfolio 1.33% 1.22% 9% 1.33% 1.38% 1.22% -4% 9% Total Reserve for expected credit losses to Non-Performing Loans (x times) 1.8 21.7 1.8 4.8 21.7 Efficiency Ratio 30% 32% -7% 30% 25% 29% 21% 5% Efficiency Business Efficiency Ratio 31% 32% -6% 29% 29% 32% 0% -11% Market Capitalization 1,010 1,167 -13% 1,010 902 1,167 12% -13% Scale & Assets 8,286 8,022 3% 8,286 7,988 8,022 4% 3% Capitalization (*) Tier 1 Capital Ratio Basel III 16.1% 15.5% 4% 16.1% 15.1% 15.5% 6% 4% Leverage (times) 8.5 8.8 -3% 8.5 8.3 8.8 3% -3% "n.m.": not meaningful. (*) End-of-period balances. (In US$ million) 2015 2014 4Q15 3Q15 4Q14 Reconciliation of Business Net Income: Business Net Income $99.0 $99.7 $25.3 $30.3 $30.2 Non-Core Income (1) : Gain (loss) per financial instrument at fair value through profit or loss 5.0 2.7 (2.0) 7.1 5.5 $5.0 $2.7 Total Non-Core Income: ($2.0) $7.1 $5.5 $104.0 $102.4 $23.2 $37.4 $35.7 Net Income (1) Non-Core Income includes the net results from the participations of the investment funds recorded in the “gain (loss) per financial instrumen t at fair value through profit or loss” line item. The Feeder Fund is not consolidated in the Bank’s financial statements as a result of the evaluation of con tro l as per IFRS 10 “Consolidated Financial 5 Statements” according to which the existing rights do not give the Bank ability to direct the relevant activities of the fund .

Net Income Evolution & Quality of Earnings • Net Income growth +2% (+$1.6 million). • Business Net Income growth flat YoY, excludes results from participation in investment funds. • Higher Net Interest Income (+3%) mainly from higher average loan portfolio balances (4%). • Higher impact of provision for credit losses on loans and contingencies and for impairment loss from expected credit losses on investment securities due to change in risk profile and mix of commercial portfolio. • Fees & other income +2% YoY with higher fee income from the L/C and contingency business and loan structuring and syndication activities. 6

Net Income Evolution & Quality of Earnings • 4Q15 Net Income of $23.2 million, -$14.1 million or -38% QoQ. • Business Net Income of $25.3 million. • Higher expected credit losses on loans and impairment loss on investment securities (-$5.5 million). • Non-core items swing (-$9.1 million) due to negative results from participation in investment funds • Net Income variation of -$12.5 million or -35% YoY. • Business Net Income down -$5.0 million on provision for expected credit losses & impairment loss from expected credit losses on investment securities, offsetting effects of higher fees and other income, and lower operating expenses. • -$7.5 million YoY swing in non-core income from results from participation in investment funds. 7