bladex corporate presentation 2q16 english

Bladex Corporate PresentationAs of June 30, 2016

Disclaimer

“This presentation contains forward-looking statements. These statements are made under the “safe harbor” provisions

established by the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks

and uncertainties. The forward-looking statements in this presentation reflect the expectations of the Bank’s management

and are based on currently available data; however, actual experience with respect to these factors is subject to future

events and uncertainties, which could materially impact the Bank’s expectations. A number of factors could cause actual

performance and results to differ materially from those contained in any forward-looking statement, including but not limited

to the following: the anticipated growth of the Bank’s credit portfolio, including its trade finance portfolio; the continuation of

the Bank’s preferred creditor status; the impact of increasing interest rates and of improving macroeconomic environment in

the Region on the Bank’s financial condition; the execution of the Bank’s strategies and initiatives, including its revenue

diversification strategy; the adequacy of the Bank’s allowance for credit losses; the need for additional provisions for credit

losses; the volatility of the Bank’s Treasury trading revenues; the Bank’s ability to achieve future growth and increase its

number of clients, the Bank’s ability to reduce its liquidity levels and increase its leverage; the Bank’s ability to maintain its

investment-grade credit ratings; the availability and mix of future sources of funding for the Bank’s lending operations;

potential trading losses; existing and future governmental banking and tax regulations; the possibility of fraud; and the

adequacy of the Bank’s sources of liquidity to replace large deposit withdrawals.”

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A Leading Franchise with a Solid Track Record

The Latin America Trade Finance Bank Key Financial Highlights

Remarkable Trajectory: + 36 years of Success

Bladex is the Latin American Trade Finance Bank, providing integrated financial solutions across Latin America’s foreign trade value chain

First Latin American bank to be listed on the NYSE and to be rated Investment Grade (both in 1992)

Currently rated Baa2 / BBB / BBB+, all with Stable outlook

Class “A” shareholders (Central Banks or designees from 23 Latin America (“LatAm”) countries) provide substantial support and represent a direct link between the Bank and the governments of Latin America

Multi-national DNA embedded in its regional presence, ownership structure, management and organizational culture

Current Credit Ratings

FY’15 YoY(%)

2Q’16 QoQ(%)

Net Profit (mm): $104.0 +2% $22.3 -5%

Net Interest Income (mm): $145.5 +3% $38.2 -3%

Return on Average Equity: 11.0% 9.1%

Gross Loans (mm): $6,692 +0.1% $6,520 0%

Total Assets (mm): $8,286 +3% $7,634 0%

Total Deposits (mm): $2,795 +12% $3,206 +4%

Market Capitalization (mm): $1,010 -13% $1,036 +10%

Non-performing loans to gross loan portfolio: 0.78% 1.30%

1988

1992

2003

2005

2009

2014

Following incorporation in 1978, Bladex initiated its operations in 1979 and issued its first bond in the international capital markets

Bladex is granted a license to operate as an agency by the New York State Banking Authorities

Bladex is the First Latin American bank registered with the SEC for its IPO, establishing a full listing on the NYSE

Bladex conducts a Common Stock Rights Offering, with stand-by commitments issued by a group of Class A shareholders and multilateral organizations

Bladex launches its client diversification strategy into trade-oriented corporations; expansion of its suite of products and services

Bladex initiates funding diversification strategy: increase in central bank deposits, local & international debt sales, syndicated loan facilities

Bladex cooperates with the International Finance Corporation to establish the first critical commodities finance facility in Latin America

1979 Moody’s Fitch S&P

Date of Rating Dec. 2007 Jul. 2012 May 2008

Date of Confirmation Nov. 2014 Jul. 2016 Jul. 2016

Date of Last Update Jul. 2016 Jul. 2016 Jul. 2016

Short-Term P-2 F2 A-2

Long-Term Baa2 BBB+ BBB

Perspective Stable Stable Stable

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Strong and Unique Shareholder Structure

A unique shareholding structureClass A shareholders provide substantial support to Bladex, representing a direct link between the Bank and the governments of Latin America – most of which have granted preferred creditor status to the Bank – and also constituting the main source of deposits, a very reliable funding source

Class A shareholders enjoy super-majority rights related to changes in the Bank’s Articles of Incorporation

Class A shareholders can only sell shares to other class A shareholders, thus maintaining the essence of the existing shareholder structure and ensuring support from central banks

Shareholder Composition Board of Directors Composition

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Out of 10 directors, 9 are independent and one represents the Bank’s management (CEO)

Class A – Central Banks or designees from 23 LatAm countries

Class B – LatAm & international banks and financial institutions

Class E – Public Float (NYSE listed)

Defined Value Proposition with Strong Business Fundamentals

Business Value Proposition Strong Underlying Business Fundamentals

Business Products & Services Multi-Pronged Business Segmentation

Global provider of natural resources with positive demographicsSustained growth and sound economic policies

Deep knowledge of Latin America

Core competency in trade finance

Support of Investment &

Regional Integration

EfficientMeasurement and

Management

In-depth knowledge of Latin America’s local marketsBacked by 23 Latin American governmentsVast correspondent banking network throughout LatAm & other regions of the world

Uniquely qualified staff with strong product expertise in Trade Value Chain, Cross-border Finance, Supply-side & Distribution, both intra-regional and inter-regional

Efficient organizational structureLEAN, client focused efficient organizational structureSingle point of contact, providing client-specific solutions, and focused on long-term relationships

Driver of progress, economic growth and

developmentSupporting

specialization in both primary and

manufacturing sectors

Enhancing LatAm’s role in global and regional value chainsGrowth of ‘Multi-latinas’ as drivers of business expansion

Supporting business integration boosted by free trade agreements

Bladex’s products and services are categorized into three main areas: i) Financial Intermediation Business, ii) Structuring and Syndications Business and iii) Treasury.

Financial Intermediation

Syndication and Structuring

Treasury

• Trade: Foreign trade products – short and medium term instruments that help drive the cross-border activity of corporations.

• Working Capital: Support to trade finance clients throughout the entire production cycle chain, across a wide range of primary, secondary and tertiary activity sectors. Structured Credit and lending facilities for short and medium-term financing of supply chain, materials & equipment, and inventories.

• Financial solutions designed to meet clients' needs. • Provides access to structured funding for a wide base of financial institutions and

companies in Latin America.

• Debt capital market and deposit products for investment and cash flow optimization. • Treasury services.

World-Class Standards in Corporate GovernanceEnterprise-Wide Risk Management

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Financial InstitutionsAmong top 10 in their respective marketsSignificant corporate banking activity / client base

CorporationsUS Dollar generation capacityGrowth oriented beyond domestic marketAmong top 10 in respective industriesTrack Record & Corporate Governance

Focus on Strategic Sectors for the RegionOil & Gas (upstream, integrated, and downstream), Agribusiness, Food processing, Manufacturing, well diversified in other sectors

Regional FocusMexicoCentral America and The CaribbeanBrazilSouth America

• Southern Cone (1)

• Andean Region (2)

(1) Includes Argentina, Chile, Paraguay and Uruguay.(2) Includes Bolivia, Colombia, Ecuador, Peruand Venezuela

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REGIONS

CLIENT BASE

INDUSTRYSECTORS

Leverage Proven Origination Capacity

LatAm GDP Growth

LatAm GDP Growth

LatAm Trade Flow GrowthLatAm Trade Flow Growth

Bladex Client Base GrowthBladex Client Base Growth

Valued Products & Services

Valued Products & Services

15%+ ROAEBladex

OriginationBladex

Origination

Active Portfolio

Management

Active Portfolio

Management

Improved Financial Margins

NIM ~ 1.8% - 2.0%

Stable Fees from Use of Capital

~ 15% – 20% of Core Net Revenues

Prudent Credit RiskManagementCost of Credit

~ 1.2% – 1.5%

Continued Focus on Efficiency

Efficiency Ratio< 30%

Sustainable Moderate Growth

~ 3% to 8%

Core Financial Intermediation(On-book Portfolio)

Solid CapitalizationA minimum of 13.5% Tier 1 Basel III Ratio

Target ConsistentCore Performance

FinancialInstitutions

Syndications & Structuring

Partners Trade Services

Distribution:

Asset Distribution & Services

Fee Based Services:

Investors Other

Tap Additional Income Sources

15%+ ROAE

12%+ ROAE12%+ ROAE

3%+ ROAE3%+

ROAE

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Financial Business Model targets sustainable, superior returns

• Our Financial Business Model is based on our proven origination capacity of well-diversified Latin American risk. With an adequate risk-return profile, together with solid operational efficiency and capitalization, the Bank aims to deliver a consistent return through its ROAEand to its shareholders from its core financial intermediation activities, commensurate with its cost of capital. The Bank’s efforts to enhanceits asset distribution and trade finance services, aim to increase its return target well above the Bank’s cost of capital.

Strategy Hones Strengths & Positions to Seize Growth Opportunities

Develop Emerging Businesses

• Develop robust syndication platform

• Expand diversified market distribution capabilities

Risk sharing programsSecondary market transactionsSecuritization Platform

• Expand vendor finance and leasing capabilities

Build New Businesses

• Explore adjacent markets & establish pipeline of new business activities in trade and regional integration, such as:

Credit InsuranceCapital Market transactionsStructured Trade FinanceTrade-related ServicesFactoringTrade Infrastructure Project Finance

Strengthen Core Business

• Improve Operating Efficiency through LEAN Processes, Structure & Organization

• Active credit portfolio management

Achieve sustainable & consistent return on equityImprove quality of earningsAchieve greater risk dispersion

• Expand Contingency BusinessDevelop Guarantee and L/C Issuance Platform

+

+

7Core ROAE = 12% ROAE = 15%

Adhering to World-Class Standards

(*) Except for the Bank’s Chief Executive Officer (CEO), allother members of the Board of Directors are independent.

Board of Directors*

CEO

Commercial Division

Internal Audit

Risk Policy and Assessment Committee

Finance & Business Committee

Nomination and Compensation

Committee

Audit and Compliance Committee

Very high corporate governance standards Multiple regulators: FED, SEC, NYSDFS, Superintendency of Banks of Panama, and other entities throughout the Region

Commercial Division

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Enterprise risk management & externally certified internal audit functionInternal alignment of corporate culture, measurement system and process management to optimize total shareholder return

.

FIRST LINE OF DEFENSE

Operating Management

-------------------------Front end &

enabling functions

THIRD LINE OF DEFENSE

Assurance-------------------------

Audit function

Finance Division

SECOND LINE OF DEFENSE

Monitoring -------------------------

Risk function

Corporate ServicesRisk Management Division

Commercial Strategy Focused on Diversification

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Sustained Portfolio Growth Commercial Portfolio Composition

Commercial Portfolio By Country Commercial Portfolio By Industry

As of June 30, 2016As of June 30, 2016

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Reduced exposure to Brazil by22 percentage points since 2005to June 30, 2016

As of June 30, 2016

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… and Focus on Asset Quality

Impaired Loans Evolution

Proven track record of strong asset quality, with significant risk mitigants: • Low-risk asset class, with short-dated exposures, and superior loss performance• US dollar based lending, no meaningful net FX exposures• Floating-rate lending and funding model minimizes interest rate risk exposure• Conservative loss reserve methodology (IFRS 9)• Pro-active loss prevention, and diligent recovery processes

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Low risk Business

Commercial Portfolio by Type of Transaction

• As of June 30, 2016, 74% of commercial portfolio had a remaining maturity term of 1 year, with average maturity of 129 days.

• Medium term commercial portfolio had a remaining maturity term of 2.4 years.

• Commercial portfolio - remaining maturity of 316 days.

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Commercial Portfolio by Term

• Bladex’s portfolio is composed primarily of tradeassets, low-risk class, with short-dated exposures, andsuperior loss performance.

Diversified Regional and Global Funding Sources….

(*) Original Currency: all non-USD denominated liabilities are hedged into US Dollars with the exception of most MXN issuances which fund assets in the same currency.

Funding Highlights

• Proven capacity to secure funding and maintain high liquidity levels, even during crises

• Deposits from central banks shareholders or designees provide a resilient funding base. They represent 70% of the Bank’s total deposits as of June 30, 2016.

• Focus on increased diversification of global and regional funding sources on numerous relevant dimensions: client base, geography and currency

• Broad access to debt capital markets through public and private debt issuance programs in USD and other currencies, and international syndications

• Increased focus in medium and long-term funding to match a growing asset base with similar characteristics and consolidate the funding base stability maintaining competitive funding costs

Deposits by Type of Client Diversified Funding Sources

As of June 30, 2016 As of June 30, 2016

Funding Sources and Cost of Funds

Funding by Currency (*)

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(US$ million)

As of June 30, 2016

…with Conservative Liquidity Management

Liquidity Management Highlights Liquidity Placements

Liquidity Coverage RatioLiquidity Ratio(US$ million)

As of June 30, 2016Advanced liquidity management operating under Basel III framework, monitoring liquidity through Liquidity Coverage Ratio(“LCR”) and Net Stable Funding Ratio (“NSFR”)

1.12x NSFR1.13x LCR (Basel III)

Liquid balances mainly held in cash-equivalent deposits in A-1 / P-1 rated financial institutions or A-rated negotiable money market instruments. High-quality, short-term trade finance book, which serves as an alternate source of liquidity, with approximately $1 billion in loans maturing on a monthly basis

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Expanding Earnings Capacity & Profitability...

Net Profit Net Interest Income & Margin

Fees and Other Income Efficiency Ratio

Financial Information corresponding to the year 2014-2015 were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB.The financial information corresponding to the years 2011-2013 follow the previous accounting standard, US-GAAP. Bladex completed its transition process to IFRSfrom US-GAAP in 2015.

(US$ million, except percentages)

(US$ million) (US$ million, except percentages)

(US$ million)

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… Supported by Strong Balance Sheet…

Total Assets Loan Portfolio

Deposits Stockholder’s Equity

(US$ million) (US$ million)

(US$ million) (US$ million)


Return on Average Equity “ROAE” Return on Average Assets “ROAA”

…and Solid Performance

Tier 1 Capital Ratio

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Risk Weighted Assets – Basel III(US$ million)

2011 n.a.

2012 n.a.

2013 n.a.

2014 $5,914

2015 $6,104

30-Jun-16 $6,363n.a. means not available


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Key Financial Metrics

17Financial Information corresponding to the year 2014-2015 were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by IASB.The financial information corresponding to the years 2011-2013 follow the previous accounting standard, US-GAAP. Bladex completed its transition process toIFRS from US-GAAP in 2015.

(In US$ million, except percentages) 2011 2012 2013 2014 2015 6M16

Total Income $138.8 $137.4 $133.7 $167.6 $173.9 $81.4Business Profit $66.3 $83.5 $89.4 $99.7 $99.0 $50.2Non-Core Items 16.9 9.5 (4.6) 2.7 5.0 (4.4) Net Profit $83.2 $93.0 $84.8 $102.4 $104.0 $45.7 EPS (US$) $2.25 $2.46 $2.21 $2.65 $2.67 $1.17

Return on Average Equity (ROAE) 11.4% 11.6% 10.0% 11.5% 11.0% 9.4%Business Return on Average Equity ("Business ROAE") 9.1% 10.4% 10.6% 11.2% 10.4% 10.3%Return on Average Assets (ROAA) 1.5% 1.5% 1.2% 1.4% 1.3% 1.2%Busines Return on Assets ("Business ROAA") 1.2% 1.4% 1.3% 1.3% 1.3% 1.3%Net Interest Margin ("NIM") 1.81% 1.70% 1.75% 1.88% 1.84% 2.06%Net Interest Spread ("NIS") 1.62% 1.44% 1.55% 1.72% 1.68% 1.84%

Loan Portfolio 4,960 5,716 6,148 6,686 6,692 6,520 Commercial Portfolio 5,354 5,953 6,630 7,187 7,155 6,767 Allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to Commercial Portfolio (%) 1.82% 1.31% 1.18% 1.22% 1.33% 1.60%Non-Performing Loans to gross Loan Portfolio (%) 0.65% 0.00% 0.05% 0.06% 0.78% 1.30%Allowance for expected credit losses on loans at amortized cost and off-balance sheet credit risk to Non-Performing Loans (x times) 3.0 0.0 25.0 21.7 1.8 1.3

Efficiency Ratio 36% 42% 41% 32% 30% 28%Business Efficiency Ratio 39% 43% 37% 32% 31% 26%

Market Capitalization 596 822 1,081 1,167 1,010 1,036Total assets 6,360 6,756 7,471 8,022 8,286 7,634 Tier 1 Capital Ratio Basel III (Basilea I for years 2012-2013) 18.6% 17.9% 15.9% 15.5% 16.1% 15.6%Leverage 8.4 8.2 8.7 8.8 8.5 7.7

Performance

Efficiency

Scale & Capitalization (*)

Portfolio Quality (*)

Results

Bladex Value Proposition to Shareholders

• Bladex offers investors access to an entire continent with compelling long-term growth prospects

• Business model provides diversified exposure to emerging markets, but with well mitigated Credit Quality, Market, & Operational risks

• Committed to total shareholder return (“TSR”) … Attractive dividend yield (annual dividend yield over 5.0%) as a function of core business growth (target 40% - 50% payout ratio)

• Attractive valuation multiples

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Dividends per Share

BLX Stock Price and Volume Evolution

Diversified Commercial Portfolio with Robust Asset Quality

Defined Strategy to Achieve Sustainable Growth

Diversified Funding & Conservative Liquidity

Management

Experienced Management and Conservative Risk Management

Practices

Compelling Returns sustained by Strong and Reliable Performance Metrics

Leading Franchise in LatAm with Solid Track Record

Trade Finance Bank in Latin America with more than 35 years of Remarkable SuccessInvestment Grade Profile with Strong and Unique Shareholding Structure Deep knowledge of Latin America

with Core in Trade FinanceStrategically positioned to capture growth opportunities

Sustainable Portfolio Strategy focused on DiversificationStrong Asset Quality Management and a Low Risk Core Business Focus

Increased diversification of Regional and Global Funding SourcesAdvanced Liquidity Management operating under Basel III Framework

Profit for 2015 of $104.0 million(+2% YoY), and $45.7 million for 6M16. Return on Average Equity of 9.4%for 6M16.Solid 15.6% Tier 1 Capitalization Ratio (Basel III) as of June 30, 2016.

Seasoned Senior Management with ample experience in C‐Suite rolesWorld‐Class Standards in Corporate Governance, focused on Enterprise‐Wide Risk Management

Investment Highlights

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PANAMAHEAD OFFICETorre V, Business ParkAve. La Rotonda, Costa del EsteApartado 0819-08730Panamá, República de PanamáTel: (507) 210-8500

ARGENTINAAv. Corrientes 222 –P.18º(1043AAP) Capital FederalBuenos Aires, ArgentinaTel: (54-11) 4331-2535Contact: Federico Pérez SartoriEmail: [email protected]

BRAZILRua Leopoldo Couto de MagalhäesJunior 110, 1º andar04542-000, Sao Paulo, BrazilTel: (55-11) 2198-9606Contact: Roberto KanegaeEmail: [email protected]

MEXICOMEXICO D.F.Rubén Darío 281, piso 15, Oficina #1501Colonia Bosque de ChapultepecCP. 11580, México D.F.Tel: (52-55) 5280-0822Contact: Alejandro BarrientosEmail: [email protected]

MONTERREYTorre Avalanz, piso 20 oficina 2035Batallón de San Patricio #109Col. Valle Oriente, San Pedro, Garza GarcíaNuevo León, C.P. 66260, MéxicoTel: (52-81) 4780-2377Contact: Alejandro BarrientosEmail: [email protected]

PERUDean Valdivia 243Piso 7, Oficina 701San Isidro, LimaTel: (511) 207-8800Contact: Victor MantillaEmail: [email protected]

COLOMBIACalle 113 # 7-45Edificio Teleport Business ParkTorre B, Oficina 1008Bogotá, ColombiaTel: (57-1) 214-3677Contact: Camilo AlvaradoEmail: [email protected]

UNITED STATESNEW YORK AGENCY 10 Bank Street, Suite 1220White Plains, NY 10606Tel: (001) 914-328-6640Contacto: Pierre DulinEmail: [email protected]

Regional Presence in Latin America

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Balance Sheet

Financial Information corresponding to the year 2014-2015 were prepared in accordance with International Financial Reporting Standards (IFRS) asissued by IASB. Bladex completed its transition process to IFRS from US-GAAP in 2015.

(In US$ million) 31-Dec-2014 31-Dec-2015 30-Jun-2016AssetsCash and cash equivalents $781 $1,300 $945Financial instruments:

At fair value through profit or loss 58 53 0At fair value through OCI 339 142 75Securities at amortized cost, net 55 108 104

Loans at amortized cost 6,686 6,692 6,520Allowance for expected credit losses (78) (90) (102) Unearned interest & deferred fees (9) (9) (9)

Loans at amortized cost, net 6,600 6,592 6,410At fair value - derivative financial instruments used for hedging - receivable 12 7 22Other assets 178 83 78 Total assets $8,022 $8,286 $7,634

Liabilities and stockholders' equityTotal deposits $2,507 $2,795 $3,206At fair value - derivative financial instruments used for hedging - payable 40 30 36Securities sold under repurchase agreements 301 114 93Short-term borrowings and debt 2,693 2,430 1,217Long-term borrowings and debt, net 1,400 1,882 2,047Allowance for expected credit losses on off-balance sheet credit risk 10 5 6Other liabilities 162 57 36Total stockholders' equity 911 972 992 Total liabilities and stockholders' equity $8,022 $8,286 $7,634

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Profit and Loss

23Financial Information corresponding to the year 2014-2015 were prepared in accordance with International Financial Reporting Standards(IFRS) as issued by IASB. Bladex completed its transition process to IFRS from US-GAAP in 2015.

2014 2015 6M16

Interest income $212,898 $220,312 $121,631Interest expense 71,562 74,833 43,927 Net Interest Income 141,336 145,479 77,704

Other incomeFees and commissions, net 17,502 19,200 6,807 Derivate financial instruments and foreign currency exchange 208 (23) (339) Gain (loss) per financial instrument at fair value through profit or loss 2,361 5,731 (3,767) Gain (loss) per financial instrument at fair value through OCI 1,871 363 (315) Gain on sale of loans at amortized cost 2,546 1,505 403 Other income, net 1,786 1,603 907

Net other income 26,274 28,379 3,696

Total Income 167,610 173,858 81,400

ExpensesImpairment loss from expected credit losses on loans at amortized cost 6,782 17,248 12,109 Impairment loss from expected credit losses on investment securities 1,030 5,290 486 Impairment (gain) loss from expected credit losses on off-balance sheet financial instrument 3,819 (4,448) 666 Salaries and other employee expenses 31,566 30,435 12,778 Depreciation of equipment and leasehold improvements 1,545 1,371 663 Amortization of intangible assets 942 596 203 Professional services 5,177 4,621 1,324 Maintenance and repairs 1,544 1,635 873 Other expenses 12,839 13,126 6,588

Total Expenses 65,243 69,874 35,690

Profit for the Period $102,366 $103,984 $45,710