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Banco Latinoamericano De Comercio (BLX)
NYSE:BLX
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Banco Latinoamericano De Comercio
(NYSE:BLX)
Rating:71Outperform
Price Target:
$46.00
▲(8.98%Upside)
Banco Latinoamericano De Comercio (BLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend Yield5.91%
Average Volume (3M)116.14K
Price to Earnings (P/E)7.5
Beta (1Y)0.62
Revenue Growth8.33%
EPS Growth13.48%
CountryUS
Employees175
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.40
Shares Outstanding28,736,597
10 Day Avg. Volume133,403
30 Day Avg. Volume116,144
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)1.10
Price to Sales (P/S)0.00
P/FCF Ratio-1.80
Enterprise Value/Market Cap2.72
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit14.68
Enterprise Value/Ebitda4.92
Forecast
1Y Price Target
$46.00Price Target Upside8.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Banco Latinoamericano De Comercio Business Overview & Revenue Model
Company DescriptionBanco Latinoamericano de Comercio Exterior, S.A. (BLX), commonly known as Bladex, is a multinational bank headquartered in Panama City, Panama. Established in 1979, Bladex specializes in supporting trade and economic integration across Latin America. The bank provides a range of financial solutions including trade finance, treasury services, and loans to financial institutions, corporations, and sovereign entities in the region.
How the Company Makes MoneyBladex generates revenue primarily through interest income from its lending activities, which include trade finance and loans to various clients across Latin America. Its key revenue streams include interest earned on loans and advances, fees related to trade finance services, and income from its treasury operations which involve managing the bank's liquidity and investment portfolio. Bladex also collaborates with financial institutions and corporations to facilitate trade-related transactions, contributing to additional fee-based income. Strategic partnerships with regional and international banks enhance its ability to provide comprehensive financial solutions, thereby bolstering its revenue generation capabilities.
Banco Latinoamericano De Comercio Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q4-2024)
| % Change Since: 8.82%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a record-breaking year for Banco Latinoamericano de Comercio Exterior, S.A., with significant growth in net income, commercial portfolio, and fee income, alongside robust risk management and strategic execution. However, there are concerns about the potential impact of US policies and net interest margin pressure, as well as increased expenses. Overall, the bank demonstrated strong performance and resilience but faces some challenges ahead.Q4-2024 Updates
Positive Updates
Record-Breaking Year
Banco Latinoamericano de Comercio Exterior, S.A. achieved a historic milestone with a commercial portfolio growth of 18%, reaching $10 billion, and deposits increasing by 23% for year-end closing balances. Net income reached an all-time high of $206 million, marking a 24% increase from the previous year, with a return on equity of 16.2%.
Strong Fee Income Growth
Fee income grew by 37% year-over-year, reaching $44 million for 2024, driven by strong performance in letters of credit and loan structuring fees.
Robust Risk Management
Non-performing loans remained minimal at just 0.2% of total exposure with robust reserve coverage, highlighting disciplined risk management practices.
Successful Strategic Plan Execution
The bank successfully concluded the first phase of its strategic plan, improving efficiency and expanding its client base by 70% and deposit base by 78%.
Strong Capital Position
The bank's tier one capital ratio was 15.5%, well within the defined target, and the board approved an increase in quarterly dividends.
Negative Updates
Potential Impact of US Policies
Concerns over the US immigration and trade policies under President Trump, particularly the impact of potential mass deportations on remittances and tariffs on trade with Mexico.
Net Interest Margin Pressure
The bank anticipates a contraction in the net interest margin to around 2.3% for 2025, influenced by a competitive market environment and potential Fed rate cuts.
Increased Expenses
Total expenses for 2024 increased by 11% year-over-year, driven by higher salary expenses and ongoing investments in technology and business initiatives.
Company Guidance
In the fourth quarter of 2024, Banco Latinoamericano de Comercio Exterior, S.A. delivered outstanding financial performance, reaching a net income of $206 million, a 24% increase from the previous year, and a return on equity of 16.2%. Key achievements included an 18% growth in the commercial portfolio to $10 billion and a 23% rise in year-end deposits, both surpassing guidance. The bank's tier one capital ratio remained strong at 15.5%, and the efficiency ratio was maintained below 27%. Net interest income rose by 11% to $259 million, driven by increased loan volumes and a stable net interest margin of 2.47%. Furthermore, fee income saw an unprecedented growth of 37%, with notable contributions from letters of credit and loan structuring fees. Looking ahead to 2025, the bank projects commercial portfolio growth of 10-12%, deposit growth of 15-17%, and aims to sustain an efficiency ratio around 27%, despite ongoing investments in IT platforms.Banco Latinoamericano De Comercio Financial Statement Overview
Summary
Strong revenue growth and profitability with robust net profit margins. However, high leverage typical of banks needs careful management, and negative free cash flow presents liquidity challenges.Income Statement
Banco Latinoamericano De Comercio shows a strong TTM revenue growth of 182.6% from the previous year's figures, driven by a significant increase in total revenue. The gross profit margin for TTM is 33.9%, and the net profit margin is 25.5%, indicating healthy profitability. EBIT and EBITDA margins are also robust at 26.5% and 25.9% respectively. The company’s income statement reflects strong financial health with an upward trend in revenue and profitability metrics.75
Positive
Balance Sheet
The balance sheet reveals a relatively high debt-to-equity ratio of 3.27, indicating considerable leverage, which is typical in the banking industry but may pose risks if not managed well. The return on equity (ROE) is strong at 15.1% for TTM, suggesting effective utilization of equity to generate profits. The equity ratio is 11.1%, which is low, reflecting the high leverage. Overall, the balance sheet shows a stable yet highly leveraged position.65
Positive
Cash Flow
The cash flow statement indicates ongoing challenges with negative free cash flow and operating cash flow in TTM. However, there is improvement from the prior year, as free cash flow grew by 29.9%. The operating cash flow to net income ratio is negative due to negative operating cash flow, reflecting potential liquidity strain. The company needs to address its cash flow issues to enhance financial stability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 809.44M | 810.60M | 683.41M | 330.75M | 155.74M | 188.18M |
| Gross Profit | 274.69M | 284.78M | 209.87M | 126.61M | 101.64M | 99.66M |
| EBITDA | 210.10M | 209.44M | 169.25M | 94.75M | 66.19M | 67.93M |
| Net Income | 206.34M | 205.87M | 166.16M | 92.04M | 62.70M | 63.59M |
Balance Sheet | ||||||
| Total Assets | 12.39B | 11.86B | 10.74B | 9.28B | 8.04B | 6.29B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00B | 2.06B | 1.99B | 1.24B | 1.25B | 863.81M |
| Total Debt | 4.48B | 4.58B | 4.68B | 6.63B | 3.75B | 1.99B |
| Total Liabilities | 11.02B | 10.52B | 9.54B | 8.21B | 7.05B | 5.25B |
| Stockholders Equity | 1.37B | 1.34B | 1.20B | 1.07B | 991.79M | 1.04B |
Cash Flow | ||||||
| Free Cash Flow | -792.18M | -1.13B | 248.65M | -772.37M | -872.52M | 1.25B |
| Operating Cash Flow | -790.13M | -1.13B | 250.75M | -769.65M | -871.71M | 1.25B |
| Investing Cash Flow | -162.24M | -180.02M | -12.77M | -166.66M | -446.08M | -319.90M |
| Financing Cash Flow | 1.06B | 1.14B | 964.22M | 916.25M | 1.58B | -1.24B |
Banco Latinoamericano De Comercio Technical Analysis
Positive
42.21
Price Trends
40.72
Positive
38.90
Positive
36.30
Positive
Market Momentum
0.27
Negative
61.25
Neutral
82.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLX, the sentiment is Positive. The current price of 42.21 is above the 20-day moving average (MA) of 41.39, above the 50-day MA of 40.72, and above the 200-day MA of 36.30, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLX.
Banco Latinoamericano De Comercio Risk Analysis
Banco Latinoamericano De Comercio disclosed 33 risk factors in its most recent earnings report. Banco Latinoamericano De Comercio reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Latinoamericano De Comercio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.24B | 9.81 | 17.21% | 3.28% | 0.94% | -8.61% | |
77 Outperform | $1.18B | 10.50 | 11.08% | 1.42% | 7.63% | -1.13% | |
76 Outperform | $1.99B | 10.72 | 15.46% | 2.69% | 7.61% | 6.82% | |
74 Outperform | $1.53B | 30.01 | 12.78% | ― | 16.62% | 18.72% | |
72 Outperform | $957.97M | 12.78 | 9.61% | 1.80% | -56.02% | -61.41% | |
71 Outperform | $1.48B | 7.55 | 15.82% | 5.91% | 8.33% | 13.48% | |
67 Neutral | $16.92B | 11.85 | 9.77% | 3.75% | 12.07% | -8.35% |
* Financial Sector Average
Performance Comparison
BLX
Banco Latinoamericano De Comercio
42.21
11.95
39.49%
OFG
OFG Bancorp
44.67
5.25
13.32%
PFBC
Preferred Bank
91.43
15.42
20.29%
SUPV
Grupo Supervielle SA
9.86
3.89
65.16%
BY
Byline Bancorp
27.95
2.22
8.63%
CCB
Coastal Financial
101.56
51.20
101.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.