In 2025, fees increased by 20% year-on-year with a record year for the syndication team, closing 13 transactions across 11 countries totaling over $5 billion. Operating costs grew according to plan, resulting in a record net income of $227 million, up 10% year-over-year, and a return on equity of 15.4%.
Bladex saw a record year with net income of $227 million and an adjusted return on equity of 15.8%. The bank delivered strong and consistent profitability driven by commercial portfolio growth, solid revenue generation, cost management, and a strong capital position. Despite rate cuts, net income increased year-over-year, with returns remaining stable.
Full year adjusted ROE was 15.8%, compared to 16.2% in 2024, with fourth quarter adjusted ROE at 14.2%. Returns were influenced by rate cuts and higher capital base, impacting profitability. Despite this, core earning power of the balance sheet remained intact, showing stable underlying operating performance and asset profitability.
Bladex’s total credit portfolio reached $12.6 billion in 2025, growing 12% year-over-year with loan growth of roughly $800 million. The growth was achieved without compromising sector or geographic diversification, supported by a 9% expansion in the client base. Loan balances increased by 5% in the fourth quarter, driven by longer-tenor transactions.
The investment portfolio totaled $1.4 billion at year-end, representing a 19% increase year-over-year in line with balance sheet growth and liquidity objectives. The bank is well positioned to continue expanding the loan book in 2026 while maintaining a prudent risk management approach for sustainable profitability. The portfolio is managed with about 91% investment-grade exposure and is held in New York with securities eligible as collateral at the Feral Reserve. Liquidity closed at $1.9 billion, 15% of total assets. Asset quality is strong with Stage 1 exposures at 98.2% and Stage 2 at 1.5%. Stage 3 exposures are limited at 0.3%. Total allowance for credit losses is $107 million, representing 276% of impaired credits.
Funding strategy focuses on balance sheet growth, funding stability, and optimizing cost of funds. Deposits make up 62% of total funding, with Class A shareholders representing 35% of total deposits. Deposits from financial institutions increased to 27%, while corporate deposits remain stable at 24%. The bank’s deposit offering includes demand deposits, time deposits, and Yankee CDs, with Yankee CDs making up 23% of total deposits.
The bank executed transactions to expand funding capabilities, including issuing a foreign currency bond in Panama and a 3-year global syndicated loan involving Middle Eastern banks. Deposit growth is expected to continue in 2026, with initiatives to attract stable transactional balances underway to improve cost of funds. Capital deployment has begun, with a Tier 1 ratio of 17.4% and a Panama regulatory capital adequacy ratio of 15.5%, above the required minimum. Bladex has increased its quarterly cash dividend to $0.6875 per share, a 46% payout of fourth quarter earnings. The bank enters 2026 with strong capital buffers, a solid transaction pipeline, and flexibility to support balance sheet growth while maintaining prudent capital management and regulatory compliance.
Despite a challenging rate environment in 2025, Bladex saw growth in net interest income and maintained margin resilience. Net interest income increased by 5% year-over-year, with a net interest margin of 2.36% for the year. Active balance sheet management helped absorb headwinds and support a strong margin in the fourth quarter.
Noninterest income reached $68.4 million in 2025, representing close to 19% of total revenues. Fees and commissions from trade finance activities were a significant driver of noninterest income, generating $59 million. Loan structuring and distribution, as well as credit commitment fees, also contributed to the bank’s fee income.
Bladex’s operating expenses for 2025 totaled $90.6 million, a 13% increase year-over-year. This increase reflects investments in technology, digital capabilities, and business initiatives. The bank expects revenue growth to absorb incremental expenses over time and aims to maintain cost discipline while investing selectively in strategic initiatives and capabilities in 2026. Global trade remained resilient in 2025 despite heightened uncertainty, with trade flows holding up better than expected due to supply chain adjustments and policy changes. The United States is projected to experience a soft landing with gradual easing, including 2 additional rate cuts in 2026. Latin America remained insulated from global trade tensions, with improved international flows and strong fundamentals.
Bladex has achieved all goals set for 2026 a year ahead of schedule, reflecting a focus on execution. The bank plans to transition towards a more transactional trade banking platform for Latin America by expanding fee-based products and capturing trade flows across the region. Bladex expects 2026 to be a transition year with continued growth and investment in strategic capabilities.
For 2026, Bladex forecasts commercial portfolio growth of 13-15%, similar growth in average deposits, a net interest margin around 2.3%, and an efficiency ratio in the 28% area. The bank aims for an ROE between 14-15% and Tier 1 capital in the 15-16% range. Despite a competitive environment, Bladex plans to focus on profitable growth, price discipline, and prudent risk management.
Questions from analysts during a call focused on Bladex’s guidance for 2026, including clarification on adjusted ROE figures and expectations for noninterest income. The bank anticipates fee income levels similar to 2025, with a focus on transitioning to a scalable business model. Duration of the portfolio and its impact on net interest margin, particularly in the fourth quarter, were also discussed as potential tailwinds for Bladex. In 2025, factors impacting record NIM included medium-term transactions, efficient liquidity, and increased deposit balances. For 2026, NIM guidance of 2.30% factors in rate dynamics and disciplined pricing. Bladex’s growth in 2025 was well-balanced, with opportunities in countries like Guatemala. Margins face pressure, but disciplined strategy will be key to maintaining margins while growing credit book. Bladex discusses maintaining net interest income and executing strategy in the short and medium term, focusing on stability in margins in working capital solutions and project finance. They anticipate loan growth in countries like Guatemala and Argentina, while monitoring Colombia and Brazil for potential risks. The company plans to capitalize on opportunities in the secondary loan market amid market fluctuations. They also mention their upcoming Investor Day on March 24, highlighting their shift towards a more transactional trade banking platform.
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The transcript provides insights into Bladex’s financial performance in Q4 2025. Investors can gain valuable information about the company’s earnings, outlook, and strategic direction. It is essential to listen to the call and review SEC filings for a comprehensive understanding of Bladex’s financial health and future prospects.
The Motley Fool’s transcript of Bladex’s Q4 2025 earnings call offers investors a detailed analysis of the company’s performance. With a focus on Banco Latinoamericano De Comercio Exterior, S. A., readers can make informed decisions about their investments. It is crucial to conduct further research and due diligence before making any financial decisions based on this transcript.
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