Banco Latinoamericano De Comercio (BLX) AI Stock Analysis

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Banco Latinoamericano De Comercio

(NYSE:BLX)

Rating:76Outperform

Price Target:

$48.00

▲(5.75% Upside)

Banco Latinoamericano De Comercio's strong financial performance, particularly in revenue growth and profitability, combined with positive technical indicators and attractive valuation, drive a high overall score. The positive sentiment from the earnings call further supports confidence in the stock. However, high leverage and cash flow challenges present risks that need addressing.

Banco Latinoamericano De Comercio (BLX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.56B

Dividend Yield5.57%

Average Volume (3M)125.92K

Price to Earnings (P/E)7.5

Beta (1Y)0.70

Revenue Growth3.46%

EPS Growth12.88%

CountryUS

Employees175

SectorFinancial

Sector Strength72

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.73

Shares Outstanding28,736,597

10 Day Avg. Volume117,554

30 Day Avg. Volume125,918

Financial Highlights & Ratios

PEG Ratio0.28

Price to Book (P/B)0.98

Price to Sales (P/S)1.61

P/FCF Ratio-1.16

Enterprise Value/Market Cap2.24

Enterprise Value/Revenue4.32

Enterprise Value/Gross Profit12.73

Enterprise Value/Ebitda16.64

Forecast

1Y Price Target

$48.00

Price Target Upside5.75% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Banco Latinoamericano De Comercio Business Overview & Revenue Model

Company DescriptionBanco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral loans, structured and syndicated credits, and loan commitments; financial guarantee contracts, such as issued and confirmed letters of credit, and stand-by letters of credit; and guarantees covering commercial risk and other assets, as well as co-financing arrangements, underwriting of syndicated credit facilities, structured trade financing in the form of factoring and vendor financing, and financial leasing. The company also provides treasury solutions, including term deposits and private placements. It primarily serves financial institutions, corporations, and sovereigns and state-owned entities. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. Banco Latinoamericano de Comercio Exterior, S. A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

How the Company Makes MoneyBLX generates revenue through various financial services, primarily by charging interest on loans and financing solutions provided to businesses involved in international trade. The bank's key revenue streams include interest income from trade finance products, fees for transaction services, and commissions associated with advisory services. Additionally, BLX may engage in partnerships with private and public sector entities to broaden its service offerings and leverage additional funding sources, which can contribute to its earnings. The bank's focus on SMEs, coupled with its strategic initiatives to support regional economic development, helps it to maintain a steady flow of revenue.

Banco Latinoamericano De Comercio Earnings Call Summary

Earnings Call Date:Aug 04, 2025

(Q2-2025)

% Change Since: 13.45%|

Next Earnings Date:Nov 04, 2025

Earnings Call Sentiment Positive

The earnings call highlighted Bladex's strong financial performance, including record earnings, revenue growth, and fee income, alongside exceptional credit quality and robust deposit growth. Despite macroeconomic challenges and concerns about margin compression, the overall results and strategic initiatives, such as the successful syndicated transaction and efficiency improvements, indicate a positive outlook.

Q2-2025 Updates

Positive Updates

Record Earnings and Revenue Growth

Bladex delivered record earnings for the second quarter of 2025, driven by strong revenue growth and fee income. Net income reached a record of $64 million, up 24% from the first quarter and 28% from a year ago. Return on equity stood at 18.5%, the highest in over two decades.

Strong Commercial Portfolio Growth

The commercial portfolio grew to $10.8 billion, up 1% quarter-over-quarter and 18% year-over-year. Growth was broad-based, with strong momentum in Central America.

Exceptional Credit Quality

Credit quality remained exceptional with nonperforming loans close to 0 and over 97% of exposures classified as Stage 1. Provisions for credit losses totaled $5 million, primarily related to Stage 2 exposures.

Robust Deposit Growth

Deposits increased to $6.4 billion, 10% above the prior quarter and 23% higher than a year ago. Deposits now represent 62% of total funding, driven by strength in institutional and corporate deposits.

Record Fee Income

Fee income stood at $20 million for the quarter, up 88% quarter-over-quarter and 59% year-over-year. A significant part of this increase was due to the structured syndicated deal for Staatsolie.

Successful Syndicated Transaction

Bladex acted as global coordinator for a $1.6 billion senior secured syndicated facility for Staatsolie, Suriname's national oil company, reinforcing the bank's ability to execute high-impact deals.

Efficiency Improvements

Operating expenses were stable, and the efficiency ratio improved to 23.1%, a 380 basis point gain versus the prior quarter.

Negative Updates

Macroeconomic Challenges

The global environment remains complex with trade tensions, shifting policy priorities, and geopolitical risks, including a renewed conflict between Iran and Israel contributing to a spike in oil prices.

Margin Compression Concerns

While net interest margin stood at 2.36%, there is ongoing pressure due to tighter pricing and high liquidity across the region, with concerns about spread tightening in the coming quarters.

Company Guidance

In Bladex's Second Quarter 2025 Earnings Conference Call, the company reported record-breaking results with a net income of $64 million, marking a 24% increase from the previous quarter and a 28% rise year-over-year. The commercial portfolio grew to $10.8 billion, reflecting a 1% quarter-over-quarter and 18% year-over-year increase. Fee income reached $20 million, a significant 88% increase from the prior quarter and 59% from the previous year, largely driven by a landmark $1.6 billion syndicated loan transaction. Deposits grew to $6.4 billion, up 10% from the last quarter and 23% from the previous year, now comprising 62% of total funding. The net interest margin was slightly above expectations at 2.36%, with net interest income totaling nearly $68 million, up 4% quarter-over-quarter and 8% year-over-year. The company's efficiency ratio improved to 23.1%, reflecting a 380 basis point gain from the prior quarter. Return on equity reached 18.5%, the highest in over two decades. The guidance for the full year remains positive, with expectations to be at the upper end of the ROE guidance and below the efficiency ratio guidance.

Banco Latinoamericano De Comercio Financial Statement Overview

Summary

Banco Latinoamericano De Comercio exhibits strong revenue growth and profitability, with a robust net profit margin of 25.5%. However, the high leverage indicated by a debt-to-equity ratio of 3.27 and cash flow challenges, including negative free cash flow, pose risks to financial stability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Neutral

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.

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

Technical Analysis Sentiment

Positive

Last Price45.39

Price Trends

50DMA

41.72

Positive

100DMA

39.86

Positive

200DMA

37.47

Positive

Market Momentum

MACD

1.17

Negative

RSI

65.44

Neutral

STOCH

52.90

Neutral

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 45.39 is above the 20-day moving average (MA) of 42.57, above the 50-day MA of 41.72, and above the 200-day MA of 37.47, indicating a bullish trend. The MACD of 1.17 indicates Negative momentum. The RSI at 65.44 is Neutral, neither overbought nor oversold. The STOCH value of 52.90 is Neutral, 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 (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFBC	79 Outperform	$1.22B	9.56	17.20%	3.24%	-2.96%	-6.62%
OFG	78 Outperform	$1.91B	10.13	15.20%	2.56%	4.15%	4.39%
BY	77 Outperform	$1.28B	10.41	10.69%	1.41%	2.23%	-1.13%
BLX	76 Outperform	$1.56B	7.47	16.45%	5.57%	3.46%	12.88%
SUPV	69 Neutral	$869.27M	12.87	8.59%	1.99%	-54.72%	-64.02%
CCB	69 Neutral	$1.57B	31.90	12.23%	―	9.22%	18.60%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%

* Financial Sector Average

Performance Comparison

BLX

Banco Latinoamericano De Comercio

45.39

16.87

59.15%

OFG

OFG Bancorp

42.75

-1.05

-2.40%

PFBC

Preferred Bank

90.82

11.42

14.38%

SUPV

Grupo Supervielle SA

9.24

2.37

34.50%

Byline Bancorp

27.55

0.20

0.73%

CCB

Coastal Financial

104.61

51.56

97.19%

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.Date of analysis: Aug 11, 2025