Bladex Corporate Presentation
As of June 30, 2015
The Latin American Trade Finance Bank Bladex Corporate Presentation - - PowerPoint PPT Presentation
The Latin American Trade Finance Bank Bladex Corporate Presentation As of June 30, 2015 Disclaimer This presentation contains forward-looking statements. These statements are made under the safe harbor provisions established by the
As of June 30, 2015
“This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions established by the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. The forward-looking statements in this presentation reflect the expectations of the Bank’s management and are based on currently available data; however, actual experience with respect to these factors is subject to future events and uncertainties, which could materially impact the Bank’s expectations. A number of factors could cause actual performance and results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the anticipated growth of the Bank’s credit portfolio, including its trade finance portfolio; the continuation of the Bank’s preferred creditor status; the impact of increasing interest rates and of improving macroeconomic environment in the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit losses; the volatility of the Bank’s Treasury trading revenues; the Bank’s ability to achieve future growth and increase its number of clients, the Bank’s ability to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations; potential trading losses; existing and future governmental banking and tax regulations; the possibility of fraud; and the adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals.”
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The Latin America Trade Finance Bank Key Financial Highlights Remarkable Trajectory: + 35 years of Success
Bladex is the Latin American Trade Finance Bank, providing integrated financial solutions across Latin America’s foreign trade value chain First Latin American bank to be listed on the NYSE and to be rated Investment Grade (both in 1992) Currently rated Baa2 / BBB / BBB+, all with Stable outlook Class “A” shareholders (Central Banks or designees from 23 Latin America (“LatAm”) countries) provide substantial support and represent a direct link between the Bank and the governments
Multi-national DNA embedded in its ownership structure, management and culture
Current Credit Ratings
FY2014 YoY (%)
Net Income (mm): $106.9 +26% Net Interest Income (mm): $141.1 +15% Return on Average Equity: 12% 10%(2) Gross Loans (mm): $6,686 +9% Total Assets (mm): $8,025 +7% Total Deposits (mm): $2,507 +6% Market Capitalization (mm): $1,167(1) +8% Asset Quality (non-accruing loans
to commercial portfolio):
0.06% 0.05%(2)
1988 1992 2003 2005 2009 2014
Following incorporation in 1978, Bladex initiated its operations in 1979 and issued its first bond in the international capital markets Bladex is granted a license to operate as an agency by the New York State Banking Authorities Bladex is the First Latin American bank registered with the SEC for its IPO, establishing a full listing on the NYSE Bladex conducts a Common Stock Rights Offering, with stand-by commitments issued by a group of Class A shareholders and multilateral
Bladex launches its client diversification strategy into trade-oriented corporations; expansion of its suite of products and services Bladex initiates funding diversification strategy: increase in central bank deposits, local & international debt sales, syndicated loan facilities Bladex cooperates with the International Finance Corporation to establish the first critical commodities finance facility in Latin America
(1) As of December 31, 2014; (2) As of December 31, 2013 1979
Moody’s Fitch S&P
Date of Rating
May 2008 Date of Confirmation
Short-Term P-2 F2 A-2 Long-Term Baa2 BBB+ BBB Perspective Stable Stable Stable
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A unique shareholding structure
Class A shareholders provide substantial support to Bladex, representing a direct link between the Bank and the governments
deposits, a very reliable funding source Class A shareholders enjoy super-majority rights related to changes in the Bank’s Articles of Incorporation Class A shareholders can only sell shares to other class A shareholders, thus maintaining the essence of the existing shareholder structure and ensuring support from central banks
Shareholder Composition Board of Directors Composition
Class A – Central Banks or designees from 23 LatAm countries Class B – LatAm & international banks and financial institutions Class E – Public Float (NYSE listed)
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Out of 10 directors, 9 are independent and one represents the Bank’s management (CEO)
Business Value Proposition Strong Underlying Business Fundamentals Business Products & Services Multi-Pronged Business Segmentation
Global provider of natural resources with positive demographics Sustained growth and sound economic policies
Pan Regional Reach Product & Market Expertise Agility & Efficiency Client Focused
Trade Value Chain, Cross-border Finance, Supply-side & Distribution, both intra-regional and inter-regional
CLIENT BASE REGIONS COUNTRIES INDUSTRY SECTORS
Financial Institutions
countries
activity Corporations
generation capacity
domestic market
respective industry sector
Focus on Strategic Sectors for the Region O&G, Agribusiness, Food processing, Manufacturing Driver of progress, economic growth and development Supporting specialization in both primary and manufacturing sectors Enhancing LatAm’s role in global and regional value chains Growth of ‘Multi-latinas’ as drivers of business expansion Supporting business integration boosted by free trade agreements
Pre-export and export finance Import financing Term loans and revolving credit facilities Letters of credit and guarantees Banker's acceptances
Trade Financing
Pre-export financing with contract assignment and
guarantees Vendor finance (factoring, reverse factoring and forfaiting) Financing guaranteed by ECAs and/or private insurance programs
Structured Trade Solutions
Medium- and long-term loans Acquisition finance Trade-related term loans Trade & non- trade revolving credit facilities Liability management Bridge loans
Syndications
Leasing Term loans Guarantees A/B financing with multilaterals Working capital loans
Financial Loans Trade Non-Trade
America and the Caribbean
Cone
Region
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Leverage Proven Origination Capacity
LatAm GDP Growth LatAm GDP Growth LatAm Trade Flow Growth LatAm Trade Flow Growth Bladex Client Base Growth Bladex Client Base Growth Valued Products & Services Valued Products & Services
Bladex Origination Bladex Origination Active Portfolio Management Active Portfolio Management
~ 2% NIM ~ 1.5% ROAA < 1.4% Cost of Credit < 30% Efficiency ~ 10% Growth
On-book Portfolio
> 13.5% Tier 1 BIII
Target Consistent Core Performance
Financial Institutions Structuring Partners Trade Services Distribution
Asset Distribution & Services
Fee Based Services Investors Other
Tap Additional Income Sources
12%+ ROAE 12%+ ROAE 3%+ ROAE 3%+ ROAE
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Develop Emerging Businesses
platform
distribution capabilities Risk sharing programs Secondary market transactions Securitization Platform
leasing capabilities Local vehicles (e.g. SOFOM in Mexico)
Contribute towards sustainable 15% ROAE
Build New Businesses
establish pipeline of new business activities in trade and regional integration, such as: Credit Insurance Capital Market transactions Structured Trade Finance Trade-related Services Factoring Trade Infrastructure Project Finance
Ensure Long Term Viability
Strengthen Core Business
through LEAN Processes, Structure & Organization
management Achieve sustainable & consistent return on equity Improve quality of earnings Achieve greater risk dispersion
Develop Guarantee and L/C Issuance Platform
Ensure sustainable 12% Core ROAE
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(*) Except for the Bank’s Chief Executive Officer (CEO), all other members of the Board of Directors are independent.
Board of Directors* CEO
Commercial Division Internal Audit
Risk Policy and Assessment Committee Finance & Business Committee Nomination and Compensation Committee Audit and Compliance Committee
Very high corporate governance
standards
Multiple regulators: FED, SEC,
NYSDFS, Superintendency of Banks
throughout the Region
Commercial Division
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Enterprise risk management &
externally certified internal audit function
Internal alignment of corporate
culture, measurement system and process management to
.
FIRST LINE OF DEFENSE Operating Management
enabling functions
THIRD LINE OF DEFENSE
Assurance
Finance Division
SECOND LINE OF DEFENSE
Monitoring
Corporate Services Risk Management Division
Reducing Risk within Improved Risk Profile in the Region Contributing to the Growth and Prosperity of Latin America
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Sustained Portfolio Growth Commercial Portfolio Composition Commercial Portfolio By Country Commercial Portfolio By Industry
As of June 30, 2015 As of June 30, 2015 As of June 30, 2015
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percentage points since 2011 to June 30, 2015
Non-Performing Loans Evolution
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(*) Original Currency: all non-USD denominated liabilities are hedged into US Dollars with the exception of most MXN issuances which fund assets in the same currency.
Funding Highlights
liquidity levels, even during crises
provide a resilient funding base. They represent 72% of the Bank’s total deposits as of June 30, 2015
funding sources on numerous relevant dimensions: client base, geography and currency
issuance programs in USD and other currencies
match a growing asset base with similar characteristics
Deposits by Type of Client Diversified Funding Sources
As of June 30, 2015 As of June 30, 2015
Funding Sources and Cost of Funds Funding by Currency (*)
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(US$ million) As of June 30, 2015
Liquidity Management Highlights Liquidity Placements Liquidity Coverage Ratio Liquidity Ratio
(US$ million)
As of June 30, 2015 Advanced liquidity management operating under Basel III framework, monitoring liquidity through Liquidity Coverage Ratio (“LCR”) and Net Stable Funding Ratio (“NSFR”) 30% Liquidity Ratio (Liquid Assets / Total Deposits) 1.12x NSFR 1.02x LCR (Basel III) Liquid balances mainly held in cash-equivalent deposits in A-1 / P-1 rated financial institutions or A-rated negotiable money market instruments, amounted to $960 million as of June 30, 2015 High-quality, short-term trade finance book, which serves as an alternate source of liquidity, with approximately $1 billion in loans maturing on a monthly basis
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Net Income Net Interest Income & Margin Fees and Other Income Efficiency Ratio
(US$ million) (US$ million) (US$ million, except percentages) (US$ million, except percentages)
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Total Assets Loan Portfolio Deposits Stockholder’s Equity
(US$ million) (US$ million) (US$ million) (US$ million)
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Return on Average Equity “ROAE” Return on Average Assets “ROAA”
Tier 1 Capital Ratio
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Risk Weighted Assets ($ million) Basel I Basel III
2011 $4,090 n.a. 2012 $4,609 n.a. 2013 $5,473 n.a. 2014 $6,027 $5,914 30-Jun-15 $6,233 $5,953
(In US$ million, except when indicated otherwise)
2011 2012 2013 2014 6M15 Business Net Income $66.3 $83.5 $89.4 $103.5 $48.8 Non-Core Income 16.9 9.5 (4.6) 3.4 0.3 Net Income attributable to Bladex stockholders 83.2 93.0 84.8 106.9 49.1 EPS (US$) $2.25 $2.46 $2.21 $2.76 $1.26 Return on Average Equity (ROAE) 11.4% 11.6% 10.0% 12.0% 10.6% Business ROAE 9.1% 10.4% 10.6% 11.6% 10.5% Return on Average Assets (ROAA) 1.5% 1.5% 1.2% 1.4% 1.3% Business ROAA 1.2% 1.4% 1.3% 1.4% 1.3% Net Interest Margin (NIM) 1.81% 1.70% 1.75% 1.87% 1.81% Net Interest Spread (NIS) 1.62% 1.44% 1.55% 1.71% 1.65% Loan Portfolio 4,960 5,716 6,148 6,686 6,920 Commercial Portfolio 5,354 5,953 6,630 7,187 7,411 Allowance for Credit Losses to Commercial Portfolio 1.82% 1.31% 1.18% 1.20% 1.23% Allowance for Credit Losses to Non-Accruing Loan Balances (x times) 3.0 0.0 25.0 21.4 4.4 Efficiency Ratio 36% 42% 41% 32% 33% Business Efficiency Ratio 39% 43% 37% 32% 33% Market Capitalization 596 822 1,081 1,167 1,254 Assets 6,360 6,756 7,471 8,025 8,308 Tier 1 Capital Ratio Basel I 18.6% 17.9% 15.9% 15.3% 15.4% Leverage (times) 8.4 8.2 8.7 8.8 8.7
(*) End-of-period balances.
Results Portfolio Quality (*) Performance Efficiency Scale & Capitalization (*)
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investors access to an entire continent with compelling long- term growth prospects
provides diversified exposure to emerging markets, but with well mitigated Credit Quality, Market, & Operational risks
shareholder return (“TSR”) … Attractive dividend yield (annual dividend yield over 5.0%) as a function of core business growth (target 40% - 50% payout ratio)
multiples
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Diversified Commercial Portfolio with Robust Asset Quality Defined Strategy to Achieve Sustainable Growth Diversified Funding & Conservative Liquidity Management Experienced Management and Conservative Risk Management Practices Compelling Returns sustained by Strong and Reliable Performance Metrics* Leading Franchise in LatAm with Solid Track Record and a Tailored Business Model Trade Finance Bank in Latin America with 35 years of Remarkable Success Investment Grade Profile with Strong and Unique Shareholding Structure Deep knowledge of Latin America with Core in Trade Finance Strategically positioned to capture growth opportunities Sustainable Portfolio Strategy focused on Diversification Strong Asset Quality Management and a Low Risk Core Business Focus Increased diversification of Regional and Global Funding Sources Advanced Liquidity Management
Net Income of $106.9 million as of December 2014 (+26% YoY) Return on Average Equity of 12% Solid 15.6% Tier 1 Capitalization Ratio (Basel III) Seasoned Senior Management with more than 45 years in C‐Suite roles World‐Class Standards in Corporate Governance, focused on Enterprise‐ Wide Risk Management
(*) As of December 2014
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PANAMA
HEAD OFFICE
Torre V, Business Park
Apartado 0819-08730 Panamá, República de Panamá Tel: (507) 210-8500
ARGENTINA
(1043AAP) Capital Federal Buenos Aires, Argentina Tel: (54-11) 4331-2535 Contact: Federico Pérez Sartori Email: fpsartori@bladex.com
BRAZIL
Rua Leopoldo Couto de Magalhäes Junior 110, 1º andar 04542-000, Sao Paulo, Brazil Tel: (55-11) 2198-9606 Contact: Roberto Kanegae Email: rkanegae@bladex.com
MEXICO
MEXICO D.F.
Rubén Darío 281, piso 15, Oficina #1501 Colonia Bosque de Chapultepec
Tel: (52-55) 5280-0822 Contact: Alejandro Barrientos Email: abarrientos@bladex.com
MONTERREY
Torre Avalanz, piso 20 oficina 2035 Batallón de San Patricio #109
García Nuevo León, C.P. 66260, México Tel: (52-81) 4780-2377 Contact: Alejandro Barrientos Email: abarrientos@bladex.com
PERU
Dean Valdivia 243 Piso 7, Oficina 701 San Isidro, Lima Tel: (511) 207-8800 Contact: Victor Mantilla Email: vmantilla@bladex.com
COLOMBIA
Calle 113 # 7-45 Edificio Teleport Business Park Torre B, Oficina 1008 Bogotá, Colombia Tel: (57-1) 214-3677 Contact: Camilo Alvarado Email: calvarado@bladex.com
UNITED STATES
NEW YORK AGENCY 370 Lexington Avenue, Suite 500 New York, NY 10017 Tel: (001) 212-754-9191
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