Banco Latinoamericano de ercio Exterior(BLX) - 2023 Q1 - Quarterly Report

Financial Performance - Net interest income for the three months ended March 31, 2023, was $52,620, an increase of 104.5% compared to $25,721 for the same period in 2022[8] - Total revenues for the first quarter of 2023 were $59,175, up 95.8% from $30,252 in the first quarter of 2022[8] - Profit for the period for Q1 2023 was $36,954, representing a significant increase from $11,119 in Q1 2022[8] - Basic and diluted earnings per share for Q1 2023 were both $1.02, compared to $0.31 in Q1 2022[8] - Total comprehensive income for the period was $33.760 million in Q1 2023, compared to $21.416 million in Q1 2022, marking a 57.5% increase[129] - Total profit for the period increased to $36.954 million in Q1 2023, compared to $11.119 million in Q1 2022, representing a growth of 232.5%[129] Assets and Liabilities - Total assets as of March 31, 2023, were $9,248,641, a decrease of 0.38% from $9,283,910 as of December 31, 2022[5] - Total liabilities decreased to $8,153,108 as of March 31, 2023, from $8,214,563 as of December 31, 2022, a reduction of 0.74%[5] - Total equity increased to $1,095,533 as of March 31, 2023, from $1,069,347 as of December 31, 2022, an increase of 2.44%[5] - The bank's total liabilities increased to $8,391,935 thousand as of March 31, 2023, from $7,983,409 thousand at the end of 2022, reflecting a rise of approximately 5.1%[160] Loans and Credit - Interest income from loans for Q1 2023 was $122,596, a substantial increase from $40,208 in Q1 2022[8] - Total loans at amortized cost amounted to $6,707,820,000, with a loss allowance of $55,200,000[40] - The total current loans at amortized cost as of March 31, 2023, was $6,655,268 million, compared to $6,763,020 million as of December 31, 2022[74] - The loss allowance for Stage 1 loans was $29,298 million, while Stage 2 and Stage 3 loans had allowances of $4,108 million and $25,865 million, respectively[65] - Credit-impaired loans increased to $25,865 thousand as of March 31, 2023, up from $21,561 thousand at the end of December 2022[86] Deposits and Funding - The bank's demand deposits rose significantly to $503,341 as of March 31, 2023, from $233,757 as of December 31, 2022, an increase of 115.5%[5] - Total deposits rose to $3,568,739,000 as of March 31, 2023, compared to $3,190,716,000 as of December 31, 2022, marking an increase of 11.8%[137] - The aggregate amount of deposits in the New York Agency increased to $725,117,000 as of March 31, 2023, compared to $526,474,000 as of December 31, 2022, a growth of 37.7%[137] Cash Flow and Liquidity - Net cash provided by operating activities was $518,211,000 in Q1 2023, a turnaround from a cash used of $481,213,000 in Q1 2022[32] - The bank's cash and cash equivalents at the end of the period were $1,264,524,000, up from $610,412,000 in the previous year[32] - Total liquid assets reached $1.303 billion as of March 31, 2023, up from $1.269 billion as of December 31, 2022, indicating a 2.67% increase[124] - The liquidity ratio at the end of March 31, 2023, was 195.85%, compared to 167.46% at the end of December 31, 2022[96] Derivative Financial Instruments - The bank's derivative financial instruments had a total notional value of $1,733,454,000, with fair value assets of $68,159,000 and liabilities of $33,761,000[48] - The nominal amount of derivative instruments used in fair value hedges totaled $555,093,000 as of March 31, 2023, compared to $546,504,000 as of December 31, 2022[145] - The total nominal amount for cash flow hedges was $990,431,000 as of March 31, 2023, with a carrying hedging asset of $105,334,000[146] Credit Losses and Provisions - As of March 31, 2023, the allowance for expected credit losses totaled $3,461 million, a decrease from $3,628 million as of December 31, 2022[52] - The net effect of changes in the reserve for expected credit losses was a reduction of $428 million during the period[52] - The total expected credit losses for Stage 1 loans as of March 31, 2023, was $6,578,105 million[65] Market and Operational Insights - The bank's representative offices are located in Buenos Aires, Mexico City, and Bogota, with a representative license in Lima, Peru, indicating ongoing market expansion efforts[36] - The bank maintained compliance with all borrowing agreements and covenants as of March 31, 2023[140] - The bank's exposure to foreign exchange risk included significant amounts in various currencies, with total assets in other currencies at $341,654 thousand[191]