Foreign Trade Bank of Latin America Reports Strong 2025 Profit Growth, Bolsters Capital with $200M AT1 Issuance

summarizeSummary

FOREIGN TRADE BANK OF LATIN AMERICA, INC. reported a 10% increase in profit for 2025, driven by higher revenues and loan growth, and strengthened its capital base with a $200 million Additional Tier 1 note issuance, despite an increase in credit-impaired loans.

check_boxKey Events

• Strong Profit and EPS Growth

  Profit for the year increased by 10% to $226.9 million, with basic earnings per share rising 9.1% to $6.11 for the fiscal year ended December 31, 2025.

• Significant Revenue Expansion

  Total revenues grew by 12% to $339.6 million, driven by a 33% increase in fees and commissions from trade finance and structuring activities, and a 5% rise in net interest income.

• Capital Strengthening with AT1 Issuance

  The company issued $200 million in Additional Tier 1 (AT1) notes in September 2025, significantly boosting its Tier 1 capital ratio to 17.4% (from 15.5% in 2024) and Capital Adequacy Ratio to 15.5% (from 13.6% in 2024).

• Increased Dividends

  Cash dividends declared per share increased to $2.5625 for 2025, up from $2.125 in 2024.

auto_awesomeAnalysis

FOREIGN TRADE BANK OF LATIN AMERICA, INC. (Bladex) delivered a robust financial performance in 2025, with a 10% increase in profit and a 9.1% rise in basic earnings per share. This growth was primarily fueled by a 12% increase in total revenues, notably a 33% surge in fees and commissions from expanded trade finance and structuring activities. The company also significantly strengthened its capital position through a $200 million Additional Tier 1 (AT1) note issuance in September 2025, which boosted its Tier 1 capital ratio to 17.4% and Capital Adequacy Ratio to 15.5%. Additionally, the dividend per share increased to $2.5625. However, the report also highlighted a substantial 129% increase in credit-impaired loans and a 28% rise in impairment losses on financial instruments, indicating some deterioration in asset quality. The Return on Average Total Equity (ROAE) saw a slight decrease, and the Liquidity Coverage Ratio (LCR) also declined. The company acknowledged ongoing geopolitical and macroeconomic risks in the Latin American region, which could impact future performance. The change in auditor from KPMG in Panama to KPMG Cárdenas Dosal, S.C. was noted as a routine transition without disagreements.