Banco Latinoamericano de ercio Exterior(BLX) - 2023 Q3 - Quarterly Report

Financial Performance - Total interest income for Q3 2023 reached $182,433,000, a 96.8% increase from $92,666,000 in Q3 2022[15] - Net interest income for the nine months ended September 30, 2023, was $167,618,000, up 69.9% from $98,578,000 in the same period of 2022[15] - Basic earnings per share for Q3 2023 were $1.25, compared to $0.74 in Q3 2022, reflecting a 68.9% increase[15] - Total revenues for the nine months ended September 30, 2023, amounted to $188,332,000, a 65.9% increase from $113,487,000 in the same period of 2022[15] - The profit for the three months ended September 30, 2023, was $45,753 thousand, compared to $26,874 thousand for the same period in 2022, representing a year-over-year increase of 70%[37] - The profit for the period for the nine months ended September 30, 2023, was $119,773 thousand, significantly higher than $61,015 thousand for the same period in 2022, marking an increase of 96%[38] - The total comprehensive income for the nine months ended September 30, 2023, was $114,617 thousand, up from $82,450 thousand in the same period of 2022, indicating a growth of 39%[37] Credit Quality and Risk - Provision for credit losses for Q3 2023 was $6,488,000, compared to $4,824,000 in Q3 2022, indicating an increase in credit risk[15] - The allowance for expected credit losses on loan commitments and financial guarantee contracts reflects management's estimate of expected credit losses, which is crucial for assessing credit risk[34] - The loss allowance for expected credit losses as of September 30, 2023, was $49,901 thousand, compared to $55,200 thousand as of December 31, 2022, indicating a decrease of approximately 9.4%[54] - Credit-impaired loans at the end of the period were $6,863 thousand, down from $21,561 thousand at the beginning of the period, reflecting a significant reduction[64] - The total allowance for expected credit losses as of September 30, 2023, included $32,760 thousand for Stage 1, $10,278 thousand for Stage 2, and $6,863 thousand for Stage 3[73] Asset and Liability Management - The bank's total assets as of September 30, 2023, were $1,340,329,000, reflecting a strong asset base[29] - The total equity as of September 30, 2023, was $1,160,977 thousand, an increase from $1,048,924 thousand at the end of September 2022, reflecting a growth of approximately 11%[38] - Total liabilities were $9,129,603,000, with deposits constituting $4,295,414,000[116] - The total amount of customers' liabilities under acceptances was $163,345 thousand, indicating stable customer engagement[48] - The bank's total liquid assets were $1,545 million as of September 30, 2023, compared to $1,269 million on December 31, 2022, showing an increase of 21.69%[101] Loan Portfolio - As of September 30, 2023, total loans at amortized cost amounted to $6,899,588 thousand, with $6,650,826 thousand classified as current and $10,107 thousand as past due[32] - The total loans at amortized cost as of September 30, 2023, reached $6,899,588 thousand, an increase from $6,763,020 thousand as of December 31, 2022, representing a growth of approximately 2.01%[68] - The total amount committed or guaranteed in loan and financial contracts reached $1,078,890 thousand as of September 30, 2023, compared to $779,374 thousand at the end of 2022, indicating a significant increase of 38.41%[86] - The amount of loans in Brazil as of September 30, 2023, was $955,732 thousand, a slight decrease from $980,205 thousand as of December 31, 2022, reflecting a decline of about 2.49%[68] - The total amount of loans in Colombia as of September 30, 2023, was $966,364 thousand, an increase from $702,409 thousand as of December 31, 2022, representing a growth of approximately 37.56%[68] Derivative Financial Instruments - The notional value of derivative financial instruments as of September 30, 2023, was $2,038,311 thousand, with fair value assets of $107,818 thousand and liabilities of $(71,025) thousand[32] - The total carrying amount of derivative financial instruments was $107,818,000 in assets and $71,025,000 in liabilities[116] - The nominal amount of derivative financial instruments as of September 30, 2023, was $2,038,311 thousand, with a carrying amount of assets at $107,818 thousand and liabilities at $71,025 thousand[190] - The total nominal amount of interest rate swaps as of September 30, 2023, is $562,638,000, while cross currency swaps total $272,214,000, leading to an overall total of $834,852,000[196] Interest Rate Sensitivity - The bank's exposure to interest rate changes indicated that a +50 bps change would affect profit by $2,412,000 and equity by -$6,682,000 as of September 30, 2023[113] - The total interest rate sensitivity was reported at $1,129,675 thousand, indicating the bank's exposure to interest rate fluctuations[145] Liquidity Management - The liquidity ratio at the end of the period was 161.22% as of September 30, 2023, down from 167.46% at the end of 2022[100] - Demand and "overnight" deposits increased to $883 million as of September 30, 2023, up from $583 million at the end of 2022, representing a growth of 51.55%[92] - The bank's unrestricted deposits with the Federal Reserve increased to $1,409,929 thousand from $1,144,896 thousand as of December 31, 2022[156]