Foreign Trade Bank of Latin America Inc (BLX) 2022 Q4 法說會逐字稿

Good morning, everyone. And thanks for joining our third quarter 2022 earnings call. Before we begin our presentation, allow me to remind you that certain statements made during the course of this discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. For a description of these risks, please refer to our filings with the U.S. Securities and Exchange Commission and our earnings release.

大家，早安。感謝您加入我們 2022 年第三季度的財報電話會議。在我們開始介紹之前，請允許我提醒您，在本次討論過程中所做的某些陳述可能構成前瞻性陳述，這些陳述基於管理層當前的預期和信念，並受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果可能存在重大差異，包括可能超出公司控制範圍的因素。有關這些風險的描述，請參閱我們向美國證券交易委員會提交的文件和我們的收益發布。

Speaking on today's call is our CEO, Jorge Salas; and our CFO, Ana Mendez. Also joining us today are some of my colleagues from the executive team that will be available for the Q&A.

在今天的電話會議上發言的是我們的首席執行官豪爾赫·薩拉斯 (Jorge Salas)；以及我們的首席財務官 Ana Mendez。今天也加入我們的是我的一些執行團隊的同事，他們將參加問答環節。

With this, let me turn the call to Jorge. Please go ahead.

有了這個，讓我把電話轉給豪爾赫。請繼續。

(foreign language) Hello, everyone, and thank you for joining. Today, we will discuss our fourth quarter results and take the opportunity to summarize the progress on the execution of our first year of our 5-year strategic plan.

（外語）大家好，感謝你們的加入。今天，我們將討論我們的第四季度業績，並藉此機會總結我們 5 年戰略計劃第一年的執行進展情況。

Let me start by reviewing the highlights of 2022, and then I will turn the call to Ana, our CFO, who will explain the fourth quarter results in detail. Finally, I'll make some closing comments related to the outlook for 2023, how we're navigating the current environment and provide some guidance.

讓我先回顧一下 2022 年的亮點，然後我將把電話轉給我們的首席財務官安娜，她將詳細解釋第四季度的業績。最後，我將就 2023 年的展望、我們如何駕馭當前環境發表一些總結性評論，並提供一些指導。

Let me go straight to Slide 3, please. Amid geopolitical tensions, record-high inflation, and a global slowdown, Bladex delivered very strong results. In 2022, we managed to grow our loan book as much as 18% during the year, increased our margins and maintain a very robust asset quality. Our NII was up 71% year-on-year. Net interest margin increased almost 40 basis points.

請讓我直接轉到幻燈片 3。在地緣政治緊張局勢、創紀錄的高通脹和全球經濟放緩的情況下，Bladex 取得了非常強勁的業績。 2022 年，我們的貸款賬簿在這一年中增長了 18%，提高了利潤率並保持了非常穩健的資產質量。我們的 NII 同比增長 71%。淨息差增加近 40 個基點。

In fees, both syndication and Letter of Credits fees were up 8% year-on-year. The results, net income for the year is almost 50% higher than last year. Return on equity is almost 300 basis points higher than last year. And perhaps more importantly, the trend as we will see now is very positive. Behind these results, there is a renewed management team that is carefully executing a well-thought-out strategy designed to capitalize the strong upside potential of our unique business model while taking advantage of the current macro scenario.

在費用方面，銀團和信用證費用均同比增長 8%。結果，今年的淨收入比去年高出近 50%。股本回報率比去年高出近 300 個基點。也許更重要的是，我們現在看到的趨勢是非常積極的。在這些結果的背後，有一個新的管理團隊正在認真執行一項經過深思熟慮的戰略，旨在利用我們獨特的商業模式的強大上升潛力，同時利用當前的宏觀形勢。

Economic activity in Latin America exceeded our expectations and remained resilient last year. The region grew almost 4% and foreign trade flows reached a record high. The anticipated and decisive action of Latin American central banks, our Class A shareholders, allowed a gradual absorption of global shocks. There is no doubt that the economic activity in the region, together with tight credit markets and high commodity prices had a positive impact on Bladex's performance. Having said that, the main drivers of the solid financial results for 2022 were largely the product of the execution of our strategic plan.

拉丁美洲的經濟活動超出了我們的預期，並在去年保持了彈性。該地區增長近 4%，外貿流量創歷史新高。我們的 A 類股東拉丁美洲中央銀行的預期和果斷行動使全球衝擊得以逐漸吸收。毫無疑問，該地區的經濟活動以及緊縮的信貸市場和高商品價格對 Bladex 的業績產生了積極影響。話雖如此，2022 年穩健財務業績的主要驅動力主要是我們戰略計劃執行的結果。

Moving to Slide 4, let me give you a brief update on the progress of our strategic plan. As I mentioned during our Investor Day in November, Bladex has a clear opportunity to increase its profitability without changing the essence of its business model. Optimizing capital allocation, increasing cross-sell with fee-generating products, automating key processes, expanding our client deposit base, and growing our customer base without changing our credit risk appetite are some of the avenues for growth in the plan.

轉到幻燈片 4，讓我簡要介紹一下我們戰略計劃的進展情況。正如我在 11 月的投資者日期間提到的那樣，Bladex 有一個明顯的機會來提高其盈利能力，而無需改變其商業模式的本質。優化資本配置、增加收費產品的交叉銷售、自動化關鍵流程、擴大我們的客戶存款基礎以及在不改變我們的信用風險偏好的情況下擴大我們的客戶群是該計劃增長的一些途徑。

Our renewed commercial team now headed by Samuel Canineu, has been able to expand our client base by 29% thus far. All of our new clients have the same risk profile [that] our current client base, top-tier corporations in the region. Furthermore, 42% of the average growth in 2022 came precisely from clients that were added during the year. The commercial team was also able to capitalize on our single point of contact model and managed to increase product penetration by 15%. That is 15% of our customer base has now at least one additional product.

我們新的商業團隊現在由 Samuel Canineu 領導，到目前為止，我們的客戶群已經擴大了 29%。我們所有的新客戶都具有與我們當前的客戶群（該地區的頂級公司）相同的風險狀況。此外，2022 年平均增長的 42% 恰好來自年內新增的客戶。商業團隊還能夠利用我們的單點聯繫模型，並將產品滲透率提高 15%。也就是說，我們 15% 的客戶群現在至少擁有一種額外的產品。

Moreover, we were able to increase our corporate deposit base, which together with a fixed rate medium-term funding that the bank has been securing since 2020 have been key to mitigate the impact of interest rate hikes on our cost of funds. All of this was possible not only because we added new bankers in key markets. It was possible because we also streamlined our new client onboarding processes, reducing new onboarding time by 43% and also redesign our key operational procedures to reduce inefficiency allowing for additional transactional volume, which has increased already 30% over the last year.

此外，我們能夠增加公司存款基礎，這與銀行自 2020 年以來一直確保的固定利率中期融資一起，是減輕加息對我們資金成本影響的關鍵。所有這一切之所以成為可能，不僅是因為我們在主要市場增加了新的銀行家。這是可能的，因為我們還簡化了我們的新客戶入職流程，將新入職時間減少了 43%，並且還重新設計了我們的關鍵運營程序以減少低效率，從而允許額外的交易量，這比去年增加了 30%。

I'm going to leave it here for now and turn the call to Annie, our CFO, who will walk you through our fourth quarter results in detail. Annie?

我暫時把它留在這裡，然後把電話轉給我們的首席財務官安妮，她將詳細介紹我們第四季度的業績。安妮？

Thanks, Jorge. Good morning, everyone. I am pleased to present our quarterly and annual results, starting on Slide 5. With a $31 million profit for the fourth quarter of 2022, reaching a total of $92 million for the year, denoting a 47% annual increase. In turn, annualized quarterly ROE has also been increasing, reaching a level of 11.6% in the fourth quarter, positioning the bank for sustained 2-digit ROE.

謝謝，豪爾赫。大家，早安。我很高興地展示我們的季度和年度業績，從幻燈片 5 開始。2022 年第四季度的利潤為 3100 萬美元，全年總計達到 9200 萬美元，年增長率為 47%。反過來，年化季度股本回報率也一直在上升，第四季度達到 11.6% 的水平，為該銀行持續的兩位數股本回報率奠定了基礎。

Actual ROE for the year 2022 reached close to 9%, up by 284 basis points from the previous year. In the next few slides, I will give you more color on the main drivers sustaining the positive trend that flow to the -- our bottom line and increase profitability.

2022年實際淨資產收益率接近9%，較上年提升284個基點。在接下來的幾張幻燈片中，我將為您提供更多關於維持積極趨勢的主要驅動因素的顏色 - 我們的底線和提高盈利能力。

Turning to Slide 6, total assets increased by 15% on an annual basis to $9.3 billion on the back of strong 18% growth in the loan portfolio, reaching $6.8 billion at year-end, including another $0.9 billion in contingencies, mainly consisting of the issuance and confirmation of Letters of Credits, Bladex's commercial portfolio closed at $7.7 billion, an 18% increase from the previous year. This strong growth in Bladex's core business reflects its focus on enhancing cross-selling and expanding the customer base while taking advantage of the macro environment in Latam with increased economic and trade flows activity.

轉到幻燈片 6，在貸款組合強勁增長 18% 的支持下，總資產每年增長 15% 至 93 億美元，年底達到 68 億美元，包括另外 9 億美元的或有事項，主要包括在信用證的發行和確認之後，Bladex 的商業投資組合收於 77 億美元，比上一年增長 18%。 Bladex 核心業務的強勁增長反映了其專注於加強交叉銷售和擴大客戶群，同時利用 Latam 經濟和貿易活動增加的宏觀環境。

The bank's commercial business is complemented by an investment portfolio, allowing for further diversification of exposures by country with a balance of over $1 billion at year-end. In addition, the bank's cash and due from banks mostly placed with the New Year Federal Reserve stood at 13% of total assets at year-end, following a prudent liquidity management under Basel III standards as required by Panama's banking regulator.

該銀行的商業業務得到投資組合的補充，允許按國家/地區進一步分散風險敞口，年末餘額超過 10 億美元。此外，按照巴拿馬銀行業監管機構的要求，根據巴塞爾協議 III 標准進行審慎的流動性管理，該銀行的現金和主要存放在新年聯儲的銀行存款佔總資產的 13%。

Turning to Slide 7, you can see the high turnover of our commercial portfolio, with maturities exceeding 60% of the total during the quarter and disbursement for a similar amount, allowing us to quickly pick up the trend in higher lending spreads, which we continue to experience for several quarters now, as we continue to focus on margin expansion through optimization of portfolio mix and risk-adjusted returns. Hence, the average lending spread over the market base rate, which has mostly [suffered] for the fourth quarter stood at 2.81%, denoting a 66 basis point increase from a year ago. The average duration of the portfolio remains short at close to 12 months with 72% maturing within the next year.

轉到幻燈片 7，您可以看到我們商業投資組合的高周轉率，本季度到期超過總數的 60%，並且支付了類似數額，使我們能夠迅速掌握貸款利差上升的趨勢，我們繼續現在經歷了幾個季度，因為我們繼續通過優化投資組合和風險調整後的回報來專注於擴大利潤率。因此，與市場基準利率的平均貸款利差（第四季度大部分 [受到影響]）為 2.81%，比一年前增加了 66 個基點。投資組合的平均期限仍然很短，接近 12 個月，其中 72% 將在明年到期。

As shown in Slide #8, our funding structure stayed well diversified. Deposits have historically represented an important and resilient source of funding throughout economic cycles while also being the most cost-effective one. As of December 31, 2022, deposits represented 40% of total funding, 45% of which came from our Central Banks, plus A shareholders, another 39% from our client banks and corporations and the remaining 16% relates to our Yankees CDs program.

如幻燈片 #8 所示，我們的資金結構保持多元化。從歷史上看，存款一直是整個經濟周期中重要且有彈性的資金來源，同時也是最具成本效益的資金來源。截至 2022 年 12 月 31 日，存款佔總資金的 40%，其中 45% 來自我們的中央銀行，加上 A 股股東，另外 39% 來自我們的客戶銀行和公司，其餘 16% 與我們的 Yankees CD 計劃有關。

Apart from deposits, Bladex's funding comes from several sources across the globe, including ample availability of bilateral credit lines from a wide range of correspondent banks and the continuous access to the debt capital markets as well as the global syndicated loan market.

除存款外，Bladex 的資金來自全球多個來源，包括大量代理銀行提供的大量雙邊信貸額度，以及持續進入債務資本市場和全球銀團貸款市場。

Turning to Slide 9, Bladex remains well capitalized, reaching a Basel III Tier 1 ratio of 15.3% and the [Panaminium] regulator's capital-adequacy ratio of 13.2% at year-end. During 2022, Bladex achieved a more efficient use of capital, having increased its loan portfolio at higher margins and returns. As we commented on our last quarterly call, we saw a deceleration in loan growth during the fourth quarter, having favored margin expansion of our balance sheet growth while remaining committed to a sound capital position, a pillar of our business model.

轉到幻燈片 9，Bladex 資本充足，年底達到 Basel III Tier 1 比率 15.3% 和 [Panaminium] 監管機構的資本充足率 13.2%。 2022 年期間，Bladex 以更高的利潤率和回報增加了貸款組合，實現了更有效的資本利用。正如我們在上一季度電話會議上評論的那樣，我們看到第四季度貸款增長放緩，這有利於我們資產負債表增長的利潤率擴張，同時繼續致力於穩健的資本狀況，這是我們商業模式的支柱。

In addition, the Board recently declared a dividend of $0.25 per share for the quarter, unchanged from preceding quarters and representing a payout of 29% of fourth quarter earnings.

此外，董事會最近宣布本季度派發每股 0.25 美元的股息，與前一季度持平，佔第四季度收益的 29%。

Turning now to Slide 10. We present the continued positive trends in net interest margin and spread, driving strong top-line performance. Net interest spread representing the rate differential between interest-earning assets and financial liabilities reached 1.63% in the fourth quarter '22, an increase of 20 basis points from the previous quarter and 37 basis points from a year ago, mainly on account of increased lending spread.

現在轉到幻燈片 10。我們展示了淨息差和利差的持續積極趨勢，推動了強勁的營收表現。 22年第四季度代表生息資產與金融負債利差的淨利差達到1.63%，環比擴大20個基點，同比擴大37個基點，主要是貸款增加所致傳播。

In turn, net interest margin, representing the yield of interest-earning assets, including the portion financed by the bank's equity reached 2.11% in 4Q '22, an increase of 34 basis points from the previous quarter and of 69 basis points year-on-year, supported by both higher net interest spreads and by the impact of increasing market rates on the overall yield of assets financed by the bank's equity.

反過來，淨息差，代表生息資產的收益率，包括銀行股權融資的部分，在 22 年第 4 季度達到 2.11%，環比上升 34 個基點，同比上升 69 個基點年，受到更高的淨利差和市場利率上升對銀行股權融資資產整體收益率的影響的支持。

Moving on to Slide 11, we can see that the overall impact of rate increases on assets and liabilities, supported by higher lending spreads and market grade, as I just stated, was the reason behind about half of the $61 million increase in net interest income for the year 2022. The other half is attributed to strong average credit growth, mainly on the loan portfolio, which increased by over $1.4 billion or 28% when compared to the year before, complemented by another $536 million growth in average credit investment portfolio accompanied by the related increase in financial liabilities and a continued prudent and proactive liquidity management.

轉到幻燈片 11，我們可以看到，正如我剛才所說，利率上升對資產和負債的總體影響，以及更高的貸款利差和市場評級，是淨利息收入增加 6100 萬美元的一半背後的原因2022 年的另一半歸因於強勁的平均信貸增長，主要是貸款組合，與前一年相比增加了超過 14 億美元或 28%，伴隨而來的平均信貸投資組合又增長了 5.36 億美元金融負債的相關增加以及持續審慎和積極的流動性管理。

On Slide 12, fee income from Letters of Credits has shown an increasing quarterly trend throughout 2022, resulting in a total of $14 million for the year, representing a 16% annual increase from the previous year. The other important component of fee generation for the bank relates to the structuring and syndication business. Given its transaction-based nature, its activity should be analyzed annually rather than on a quarterly basis. So for the year 2022, it also showed stronger results, increasing by 15% to a level close to $5 million.

在幻燈片 12 中，信用證手續費收入在整個 2022 年呈季度增長趨勢，全年總計 1400 萬美元，比上一年增長 16%。銀行產生費用的另一個重要組成部分與結構化和銀團業務有關。鑑於其基於交易的性質，其活動應該每年而不是每季度進行分析。因此，對於 2022 年，它也顯示出更強勁的結果，增長了 15%，達到接近 500 萬美元的水平。

As shown on Slide 13, Bladex maintains sound asset quality levels. Low-risk Stage 1 exposure accounted for 98% of the total credit portfolio at $8.5 billion at year-end. Accounting for another 1.7% were credits classified as Stage 2 for a total of $147 million, representing closely monitored credits, which have experienced increased risk since origination but are still performing. Finally, Stage 3 or impaired credits represent merely 0.4% of total exposure for a total of $35 million at year-end 2022, as we classified new credits for a total of $25 million as impaired during the fourth quarter.

如幻燈片 13 所示，Bladex 保持良好的資產質量水平。到年底，低風險的第一階段敞口占信貸組合總額的 98%，為 85 億美元。佔另外 1.7% 的是總計 1.47 億美元的第 2 階段信貸，代表受到密切監控的信貸，這些信貸自發起以來風險增加但仍在執行。最後，由於我們在第四季度將總計 2500 萬美元的新信貸分類為減值，因此第 3 階段或受損信貸僅佔 2022 年底總風險敞口的 0.4%，總計 3500 萬美元。

Overall, total reserve coverage is about 2x the balance of impaired credit. Total credit provision charges for 2022 amounted to $19.5 million related to increased individually allocated allowances to Stage 3 credit as well as to an increase of Stage 1 collective reserves on credit portfolio growth during 2022.

總體而言，總準備金覆蓋率約為受損信貸餘額的 2 倍。 2022 年的信貸準備金總額為 1950 萬美元，這與增加對第 3 階段信貸的個人分配配額以及 2022 年信貸組合增長的第 1 階段集體準備金的增加有關。

On Slide 14, we can see a positive trend in the bank's efficiency as solid revenue growth has consistently overcompensated higher expenses by design. For the year 2022, the cost-to-income efficiency ratio stood at 33% compared to 38% in the previous 2 years with a focus on strengthening Bladex's execution capabilities, expense increases mainly reflect a higher salary base on new hires and a new performance-based variable compensation structure, along with other expenses related to strategic initiatives to improve processes and technology.

在幻燈片 14 上，我們可以看到銀行效率的積極趨勢，因為穩定的收入增長一直在設計上過度補償較高的支出。 2022 年，成本收入效率比為 33%，而前兩年為 38%基於可變薪酬結構，以及與改進流程和技術的戰略舉措相關的其他費用。

Let me leave it here and turn the call back to Jorge for his final remarks. Thank you.

讓我把它留在這裡，然後將電話轉回 Jorge 以聽取他的最後評論。謝謝。

Thank you very much, Annie. The macroeconomic and the financial outlook for Latin America is far from being settled [in balance]. We see 2023 as a year of transition, transition towards slower growth, transition towards lower interest rates, and transition towards a slightly lower inflation rate, but still above the target. Clearly, inflation is likely to be more persistent than many expected, not so long ago. The space and timing for turning point in interest rate is the big question mark.

非常感謝你，安妮。拉丁美洲的宏觀經濟和金融前景遠未得到解決[平衡]。我們認為 2023 年是過渡的一年，向更慢的增長過渡，向較低的利率過渡，向略低的通脹率過渡，但仍高於目標。顯然，通脹可能比許多人不久前的預期更持久。利率拐點的空間和時機是個大問號。

Our expectation is that this will happen towards the end of 2023. Key for the region and for Bladex is the fact that foreign trade flows that are currently at record levels will grow an additional 2%, reaching almost $3 trillion by the end of 2023. That is 37% higher than pre-pandemic 2019 levels. There is no doubt that the surge in commodity prices, exacerbated by the Russian invasion of Ukraine is the main driver of this positive trade shock for Latin America and particularly for South America. Having said that, while commodity price increases are favorable, clearly, mediocre GDP growth and high inflation is not favorable for the region. In this context, during 2023, we will focus more on profitability and less on growth.

我們預計這將在 2023 年底前發生。對於該地區和 Bladex 來說，關鍵是目前處於創紀錄水平的外貿流量將再增長 2%，到 2023 年底達到近 3 萬億美元。這比 2019 年大流行前的水平高出 37%。毫無疑問，大宗商品價格飆升，加上俄羅斯入侵烏克蘭，是拉美尤其是南美貿易積極衝擊的主要推動力。話雖如此，雖然大宗商品價格上漲是有利的，但顯然，平庸的 GDP 增長和高通脹對該地區不利。在這種背景下，在 2023 年期間，我們將更多地關注盈利能力，而不是增長。

Moving on to Slide 17. Let me mention a few words on management's focus for the year. Unlike last year, we grew 18%, in 2023, we aim at single-digit growth, 3% to 4%, consistent with the macro trend. We plan to maintain disciplined credit underwriting standards as the current high-interest rate environment posted clear risks, particularly for over-leveraged companies, especially if we couple that with the demand shock.

轉到幻燈片 17。讓我談談今年管理層的重點。與去年不同，我們增長了 18%，2023 年，我們的目標是個位數增長，3% 到 4%，與宏觀趨勢一致。我們計劃維持嚴格的信貸承保標準，因為當前的高利率環境帶來了明顯的風險，特別是對於過度槓桿化的公司而言，尤其是如果我們將其與需求衝擊結合起來的話。

Thirdly, as Annie mentioned earlier, we see a positive trend in margins going forward. The bank is currently positioned as asset sensitive in anticipation of additional interest rate hikes. Moreover, our frontline and our treasury units are focused not only in optimizing risk-reward lending spreads but also are making sure that we keep growing our deposit base, which is clearly our most cost-efficient funding source.

第三，正如安妮之前提到的，我們看到未來利潤率呈積極趨勢。由於預期會進一步加息，該銀行目前被定位為資產敏感型。此外，我們的前線和財務部門不僅專注於優化風險回報貸款利差，而且還確保我們不斷擴大存款基礎，這顯然是我們最具成本效益的資金來源。

Lastly, we are convinced that we need to keep making progress on process redesign and automation and enhancing our product offering. As I mentioned before, changes made in key processes are already yielding good results. We're working hard to complement our product offering with treasury and structured trade and working capital solutions. This will not only strengthen client relationships but also favor our profitability going forward.

最後，我們堅信我們需要在流程重新設計和自動化方面不斷取得進展，並增強我們的產品供應。正如我之前提到的，關鍵流程的改變已經產生了良好的效果。我們正在努力通過資金和結構性貿易和營運資金解決方案來補充我們的產品。這不僅會加強客戶關係，而且有利於我們未來的盈利能力。

Moving on to the last slide, Slide 18. Let me share some guidance for the year. We expect the core equity ratio to be strengthened. We are forecasting a range between 15% and 16% as our growth will be moderate and even more profitable than last year. We expect our net interest margin for this year to be above 2022 levels between 2.1% and 2.4%. Net interest margin for Q4 stood at 2.1%, and that figure still does not incorporate the full impact of higher market rates.

轉到最後一張幻燈片，第 18 張幻燈片。讓我分享一些今年的指導。我們預計核心權益比率將得到加強。我們預測的範圍在 15% 到 16% 之間，因為我們的增長將是溫和的，甚至比去年更有利可圖。我們預計今年的淨息差將高於 2022 年的水平，介於 2.1% 和 2.4% 之間。第 4 季度的淨息差為 2.1%，該數字仍未包含較高市場利率的全部影響。

Fees will continue to grow between 8% and 10%, mostly from Letters of Credits, but also from our syndication desk. Our efficiency target will be around 2022 levels, that means 33% as we expect that higher revenues will continue to offset investments in process improvements and technology.

費用將繼續增長 8% 到 10%，主要來自信用證，但也來自我們的銀團服務台。我們的效率目標將在 2022 年左右，這意味著 33%，因為我們預計更高的收入將繼續抵消對流程改進和技術的投資。

Last but not least, our return on equity will likely be in the low double digits, in line with the longer-term guidance that we shared during the Investor Day last November. By the way, the full webcast is available in the IR section of our website.

最後但同樣重要的是，我們的股本回報率可能會處於低兩位數，這與我們在去年 11 月的投資者日分享的長期指導一致。順便說一句，完整的網絡廣播可在我們網站的 IR 部分獲得。

I'm going to leave it here for now and open the call for questions. Operator?

我暫時把它留在這裡並打開問題電話。操作員？

Thank you very much for the presentation. We will now be moving to the Q&A part of the call. (Operator Instructions) We'll now give a minute or so for the questions to come in. Okay, we'll start with the first text question from [Patrick Brown].

非常感謝您的介紹。我們現在將進入電話會議的問答部分。 （操作員說明）現在我們將花一分鐘左右的時間讓問題進來。好的，我們將從 [Patrick Brown] 的第一個文本問題開始。

First of all, excellent results and congratulations, I have two questions. My first question is, given the recent supply chain disruptions and particularly with China, there's a lot of talk that Mexico has benefited from nearshoring. What are you seeing on the ground? Has this represented any opportunity for Bladex?

首先，非常好的結果和祝賀，我有兩個問題。我的第一個問題是，鑑於最近供應鏈中斷，尤其是與中國的供應鏈中斷，有很多人說墨西哥從近岸外包中受益。你在地上看到了什麼？這是否代表了 Bladex 的任何機會？

And then the second question, revenue growth during 2022 has helped to compensate the material increase in expenses, but part of this revenue growth is due to markets. How are you preparing the bank for a potentially lower market scenario to sustain the current cost-to-income ratio?

然後是第二個問題，2022 年的收入增長幫助補償了支出的實質性增長，但這種收入增長的部分原因是市場。您如何讓銀行為可能較低的市場情景做好準備，以維持當前的成本收入比？

Thank you, Mr. Brown, for your question. Let me start tackling the second question first. As we have mentioned, the main objective of our strategic plan is to make sure that the bank has sustainable returns. As we stated at Investor Day, the target is mid-teens returns by 2026, and we're clearly on track, as you can see. Bladex share of wallet with most clients is improving, but there's still clearly a big upside ahead. But our product offering is also limited. And as I said, we're working hard on that. We are developing new products that will generate additional spreads and fees and that will compensate for sure, for a potential decrease in rates. This includes scaling our Letter of Credits business, project finance fees, revenues from treasury products, expanding our deposit base. That will, for sure, compensate a decrease in rates.

布朗先生，謝謝你的提問。讓我先開始解決第二個問題。正如我們所提到的，我們戰略計劃的主要目標是確保銀行獲得可持續的回報。正如我們在投資者日所說，目標是到 2026 年實現十幾歲中期的回報，正如您所見，我們顯然走上了正軌。大多數客戶的 Bladex 錢包份額正在提高，但顯然仍有很大的上升空間。但我們的產品供應也有限。正如我所說，我們正在為此努力。我們正在開發新產品，這些產品將產生額外的點差和費用，並且肯定會補償利率的潛在下降。這包括擴大我們的信用證業務、項目融資費用、資金產品收入、擴大我們的存款基礎。這肯定會彌補利率的下降。

As we make progress and the bank gains scale, we will, for sure, maintain our efficiency and potentially improve it. I have to say having said all this, that we do not see pre-pandemic interest rate levels in the near future, for sure, not at 0% where we -- that was when everything started.

隨著我們的進步和銀行規模的擴大，我們肯定會保持我們的效率並有可能提高它。我不得不說，說了這麼多，我們在不久的將來不會看到大流行前的利率水平，當然，不會在我們的 0%——那是一切開始的時候。

In regards to the second question about nearshoring, the short answer is yes. We are starting to see some business opportunities that we believe are the result of the first phases of nearshoring, particularly in Mexico, we're seeing companies developing industrial parts, mainly in the automotive and telecommunications. As a matter of fact, I saw today an announcement that Tesla is considering opening manufacturing production in Mexico. Nearshoring, for sure, will strongly benefit the large Latam conglomerates that are clients -- most of them are clients of us. Many of those clients are asking for capital for their investments. So the short answer is yes, this should ultimately lead to increased trade flows between the U.S. and Mexico, and that's the core of our business. So inevitably, will benefit Bladex in the long run.

關於近岸外包的第二個問題，簡短的回答是肯定的。我們開始看到一些我們認為是近岸外包第一階段的結果的商機，特別是在墨西哥，我們看到公司開發工業零件，主要是汽車和電信。事實上，我今天看到了一份公告，稱特斯拉正在考慮在墨西哥開設製造工廠。可以肯定的是，近岸外包將大大有利於作為客戶的大型 Latam 企業集團——他們中的大多數是我們的客戶。其中許多客戶都在為他們的投資尋求資金。所以簡短的回答是肯定的，這最終會導緻美國和墨西哥之間的貿易流量增加，這是我們業務的核心。因此，從長遠來看，Bladex 不可避免地會受益。

Okay. Our next question comes from Mr. [Ricardo Vallarino], Individual Investor. You commented on the Investor Day that you set a target size for a commercial portfolio of $10 billion to $11 billion for the year 2026. Recently, you have commented that you expect portfolio growth to slow down to 2023. Can you give us a road map on how you see Bladex reaching the Investor Day target?

好的。我們的下一個問題來自個人投資者 [Ricardo Vallarino] 先生。您在投資者日評論說，您為 2026 年的商業投資組合設定了 100 億至 110 億美元的目標規模。最近，您評論說您預計投資組合增長將放緩至 2023 年。您能給我們一張路線圖嗎您如何看待 Bladex 達到投資者日目標？

Yes. Thank you for your question. The pace of our growth is dependent in large part because of the dynamics of the region. So we grew more than expected the first year and then we're slowing down a little bit this year, basically because of the headwinds of the -- and the economics of the region that we're seeing now. So the 11 -- the $10 billion to $11 billion target on our commercial portfolio is -- we're well on track and in the pace. Again, the pace of the growth will depend largely in the dynamics of the region, but also to the extent that we have additional products and a larger customer base as we are getting now.

是的。謝謝你的問題。我們的增長速度在很大程度上取決於該地區的動態。所以我們第一年的增長超過預期，然後今年我們放緩了一點，主要是因為我們現在看到的該地區的逆風和經濟。所以 11 - 我們商業投資組合的 100 億至 110 億美元目標是 - 我們正在步入正軌並保持步伐。同樣，增長的速度將在很大程度上取決於該地區的動態，但也取決於我們現在擁有更多產品和更大客戶群的程度。

Thank you very much for that answer. The next question is also a text question. This is from Mr. [Jeffery Otto] from Jeffery Otto CPA. Congratulations on your fourth quarter and full year 2022 results. I had high expectations and you have exceeded them. I do have a concern about your NPLs. In the fourth quarter, they grew from $11 million to $35 million with the bank largely involved in trade finance, generally, short-term. I would like to have some color on this. Is this a result of the bank's changing lending criteria, [a mistaken] oversight on the company, industry or country lending activity? Is this a level we should expect to see with the volume in the bank is doing?

非常感謝您的回答。下一個問題也是文本問題。這是來自 Jeffery Otto CPA 的 [Jeffery Otto] 先生。祝賀您取得了 2022 年第四季度和全年的業績。我有很高的期望，而你已經超出了他們。我確實擔心你們的不良貸款。在第四季度，他們從 1100 萬美元增長到 3500 萬美元，銀行主要參與貿易融資，通常是短期的。我想對此有一些顏色。這是銀行不斷變化的貸款標準、對公司、行業或國家貸款活動的[錯誤]監督的結果嗎？這是我們應該期望看到的銀行交易量水平嗎？

Thank you for your question. First of all, credit underwriting standards have not changed and will not change. We will remain very conservative. We did have an uptick on NPLs, and it's mainly due to one exposure in particular. It's a nonbanking financial institution in Mexico that represents less than 0.3% of our loan book, and it's largely reserved by the end of 2022. We have materially increased the coverage after the company announced (inaudible) in Mexico last November. So we're really not concerned about our exposures in nonbank financial institutions. That is one-off case in Mexico and our nonbank financial institutions do not represent more than 3% of our portfolio, and it's mainly regulated companies or affiliates of financial institutions, and it's mainly in [Chile]. So we are not concerned and not changing our (technical difficulty).

謝謝你的問題。首先，信用承銷標準沒有變，也不會變。我們將保持非常保守。我們的不良貸款確實有所增加，這主要是由於一項風險敞口。這是墨西哥的一家非銀行金融機構，在我們的貸款賬簿中所佔比例不到 0.3%，而且大部分都保留到 2022 年底。該公司去年 11 月在墨西哥宣布（聽不清）後，我們大幅增加了覆蓋範圍。所以我們真的不擔心我們在非銀行金融機構的風險敞口。這是墨西哥的一次性案例，我們的非銀行金融機構占我們投資組合的比例不超過 3%，主要是受監管的公司或金融機構的附屬機構，而且主要在 [智利]。所以我們不關心也不改變我們的（技術難度）。

Okay. Our next question comes from Andrea Atuesta from Bancolombia. I would like to have more color about what you are expecting in NIM and profitability in the rates begin to decrease, but the expenses are stable. What will the strategy to maintain solid margins be?

好的。我們的下一個問題來自 Bancolombia 的 Andrea Atuesta。我想對您對 NIM 的期望有更多的了解，利率的盈利能力開始下降，但費用穩定。保持穩定利潤率的策略是什麼？

Let me turn the call to -- that question to Annie, do you want to comment on rates?

讓我把電話轉到——安妮的問題，你想評論費率嗎？

Sure. Thank you. Yes, our expectations of what (technical difficulty) mentioned with respect to the NIM, what we see is we still have to see all the repricing of interest rate increases in our assets and liabilities. So in the very short term, we expect net interest margin to continue expanding. Jorge mentioned, between 2.2%, 2.4%. That depends on future Fed actions and the repricing that we see in our balance sheet. After rate increases halt, they come to a stop, like Jorge just mentioned in the previous answer, we are in the process of developing new structured products and tailor-based solutions that will enhance spreads, and that's precisely what our 5-year plan is about. So we do expect that to be able to compensate rate increases.

當然。謝謝。是的，我們對 NIM 提到的（技術困難）的預期，我們看到的是我們仍然必須看到我們的資產和負債的所有加息重新定價。因此，在短期內，我們預計淨息差將繼續擴大。 Jorge 提到，在 2.2% 和 2.4% 之間。這取決於美聯儲未來的行動以及我們在資產負債表中看到的重新定價。加息停止後，它們就會停止，就像 Jorge 剛才在之前的回答中提到的那樣，我們正在開發新的結構化產品和量身定制的解決方案，以提高利差，而這正是我們的 5 年計劃關於。因此，我們確實希望能夠補償利率上漲。

And also, as Jorge mentioned, we do not anticipate that interest rates are going to go back to 0% that we saw at the beginning of the pandemic. So more normalized interest rate of around 2.5% to 3%, say, the (inaudible) rates should remain constant. So in our projections for ROE target of mid-teens, that is definitely contemplated. So margin expansion, new fee-generating products and interest rates that in a normalized level should be about 2.5%.

而且，正如豪爾赫所提到的，我們預計利率不會回到大流行開始時的 0%。因此，更正常化的利率約為 2.5% 至 3%，也就是說，（聽不清）利率應該保持不變。因此，在我們對青少年中期 ROE 目標的預測中，這絕對是可以考慮的。因此，保證金擴張、新的收費產品和正常水平的利率應該在 2.5% 左右。

I think Sam, our Chief Commercial Officer wants to say a few words about that, too.

我想我們的首席商務官山姆也想就此說幾句話。

Yes. I'd just like to reinforce that even though it might not be so noticeable within the numbers, but a big part of the increase in profitability that we faced -- we've been facing quarter after quarter comes from, well, I would say, this new layer of business that Bladex has been building. That is a core part of our new strategy that comes from -- if you heard our Investor Day, there are various types of arbitrage that we've been doing, both in terms of clients, financing in different countries, as well as all the structured trade finance part, supply chain finance, receivable discounts and this -- and that layer of business, have been increasing quarter after quarter, and that comes with a higher margin. Same as new clients -- new clients that we've been onboarding and I think you have the numbers for last year. We did increase that substantially. And we continue to build that new layer of business and to build more optionality with everything that we do. So we're not dependent on, let's say, the legacy business or the business -- the business as usual that we've always been doing. I think that is building well, and I think we're right on course with what we -- the plan that we presented last year. Thank you. Okay. Thank you very much. We have a follow-up question from Andrea. How do you expect commissions and fees to behave in 2023 for syndication and Letter of Credits business? What is your expectation of growth on this front?

是的。我只是想強調一下，儘管它在數字中可能並不那麼引人注目，但我們面臨的盈利能力增長的很大一部分 - 我們一直面臨一個又一個季度來自，好吧，我會說，這是 Bladex 一直在構建的新業務層。這是我們新戰略的核心部分——如果你聽說過我們的投資者日，我們一直在進行各種類型的套利，包括客戶、不同國家的融資，以及所有結構性貿易融資部分、供應鏈融資、應收賬款折扣以及這一層業務一直在逐季增長，而且利潤率更高。與新客戶一樣——我們一直在招募的新客戶，我想你有去年的數字。我們確實大幅增加了。我們將繼續構建新的業務層，並通過我們所做的一切來構建更多的可選性。因此，我們不依賴於，比方說，傳統業務或業務——我們一直在做的一切照舊。我認為這進展順利，而且我認為我們在我們去年提出的計劃方面是正確的。謝謝。好的。非常感謝。 Andrea 提出了後續問題。您預計 2023 年銀團和信用證業務的佣金和費用將如何表現？您對這方面的增長有何期望？

[Close] to business because they have -- they are very different in nature. The Letters of Credits business, again, is part of the strategy that we've been doing, first of all, adding new clients that are specifically doing more this type of business. So -- a lot of the clients that we onboarded last year, there were clients specifically for the Letter of Credits business as well as we've been focusing on cross-selling letters of private business to clients that are only (inaudible), and we've been more and more successful on that. So I think the direction for that business, in particular, is to continue to grow. Of course, we depend on the market, [since] Letters of Credits is very tied to trade in the region and if the trade flows reduce, of course, the business suffers. But that should be compensated (technical difficulty) new or more clients that we are adding both in existing clients in terms of cross-sell as well as new clients.

[接近] 業務，因為它們在本質上非常不同。同樣，信用證業務是我們一直在做的戰略的一部分，首先是增加專門從事更多此類業務的新客戶。所以 - 我們去年加入的很多客戶，有專門針對信用證業務的客戶，我們一直專注於向僅（聽不清）的客戶交叉銷售私人業務的信函，並且我們在這方面越來越成功。因此，我認為該業務的方向尤其是繼續增長。當然，我們依賴於市場，[因為] 信用證與該地區的貿易密切相關，如果貿易流量減少，業務當然會受到影響。但這應該補償（技術難度）我們在現有客戶中增加的新客戶或更多客戶，包括交叉銷售和新客戶。

So for the syndication business, that is a completely different business. And that is a business that is really to grow the business more substantially. It takes time. Bladex as we have a quite strong captive base of investors that come along with us in the most transactions that we do, but we're also very careful on what we sell to the market. So it's a business that we are -- we have not been more aggressive. We are -- we continue to do as we did in the past, creating solutions to clients that are willing to pay an extra fee for us to fundraise for them. That also is a business tied to M&A activity when they require certainty of funds. And we do -- I mean, the market has been slower this year. What we added that is new is the project finance business that should also generate more structure restructuring fees. So I expect this year to be very much in line with last year, hopefully, looking to increase that number because we think we can increase the number, but we depend on market conditions for the syndication business.

所以對於聯合業務來說，這是一個完全不同的業務。這是一項真正使業務更大幅度增長的業務。這需要時間。 Bladex 因為我們擁有相當強大的投資者基礎，他們在我們進行的大多數交易中都與我們同行，但我們對向市場出售的產品也非常謹慎。所以這是我們的業務 - 我們並沒有更具侵略性。我們 - 我們繼續像過去那樣做，為願意支付額外費用讓我們為他們籌款的客戶創造解決方案。當需要資金的確定性時，這也是與併購活動相關的業務。我們確實 - 我的意思是，今年市場放緩。我們補充說，新的項目融資業務也應該會產生更多的結構重組費用。所以我預計今年與去年非常一致，希望能增加這個數字，因為我們認為我們可以增加這個數字，但我們取決於聯合業務的市場條件。

Okay. Our next question comes from [Michael Rockman from GBR Consulting]. How is the management and the Board of Directors thinking about capital allocation with dividend being more than 3x covered and the stock at a substantial discount to book value?

好的。我們的下一個問題來自 [GBR Consulting 的 Michael Rockman]。管理層和董事會如何考慮股息超過 3 倍且股票賬面價值大幅折讓的資本分配？

Thank you for your question, Michael. Capital allocation dividends and all the alternatives -- I mean, including buybacks, potential hybrid instruments, that's an ongoing discussion at the board level. We just reported a 15.3% common equity Tier 1 ratio, which is at the lower end of the range that we have established. We want to operate the bank with, ranges between 15% and 16%. As I mentioned, we are committed to some capital position. It's a pillar of our business model, and it's a pillar of our investment grade rating. I can say we're focused on optimizing the bank's capital allocation to support the growth of our long-term 5-year plan that will take the bank to between 10 and $11 billion commercial portfolio. So it's -- we're focused on the long-term target more than the short-term.

謝謝你的問題，邁克爾。資本分配股息和所有替代方案——我的意思是，包括回購、潛在的混合工具，這是董事會層面正在進行的討論。我們剛剛報告了 15.3% 的普通股一級比率，處於我們確定的範圍的下限。我們希望以 15% 到 16% 的比例經營銀行。正如我提到的，我們致力於一些資本狀況。這是我們商業模式的支柱，也是我們投資等級評級的支柱。我可以說我們專注於優化銀行的資本配置，以支持我們的長期 5 年計劃的增長，該計劃將使銀行的商業投資組合達到 10 至 110 億美元。所以它 - 我們更關注長期目標而不是短期目標。

Okay. Thank you very much. I'm seeing no further questions at this point. I will now be passing the line back to the management team for the concluding remarks.

好的。非常感謝。我現在沒有看到其他問題。我現在將把線路傳回給管理團隊以作總結髮言。

No, I just want to thank you for your questions and everybody for joining this call. As I mentioned before, we see 2023 as a year of transition in the region. We are committed to profitability and perhaps not-so-aggressive growth this year. Underwriting standards will not change, and we'll focus on profitability going forward. That's what I have to say for now. And thank you, everybody, for connecting.

不，我只是想感謝你提出的問題，感謝大家加入這個電話會議。正如我之前提到的，我們認為 2023 年是該地區轉型的一年。我們致力於盈利，今年可能不會那麼激進。承保標準不會改變，我們將專注於未來的盈利能力。這就是我現在要說的。謝謝大家的聯繫。

Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you, and have a great day. Goodbye.

非常感謝。今天的電話會議到此結束。我們現在將關閉所有線路。謝謝你，祝你有美好的一天。再見。