Banco Latinoamericano Posts Record $227M Net Income, Driven by 54% Surge in Noninterest Income

Date of Call: Feb 13, 2026

Guidance:

• Commercial portfolio growth between 13% and 15%.
• Average deposit growth at a similar pace (13%-15%).
• Net interest margin around 2.3%.
• Efficiency ratio in the 28% area.
• ROE between 14% and 15%.
• Tier 1 capital in the 15% to 16% range.

Business Commentary:

Record Financial Performance:

• Banco Latinoamericano de Comercio Exterior, S.A. reported record net income of $227 million for 2025, up 10% year-over-year, with an adjusted return on equity of 15.8%.
• The growth was driven by sustained commercial portfolio growth, strong revenue generation from both net interest and fee income, disciplined cost management, and a strong capital position.

Portfolio and Funding Growth:

• The company's commercial portfolio grew by 11.5% year-over-year, with a 22% increase in deposits, now representing more than 60% of total funding.
• This growth was driven by a solid expansion in the loan book and an increase in the contingent portfolio, particularly in Guatemala, Colombia, Mexico, the Dominican Republic, and Argentina.

Noninterest Income Diversification:

• Noninterest income set a new record, growing 54% year-over-year, now representing 20% of total revenues.
• This was driven by strong performance in letters of credit and syndication fees, with the latter increasing more than 70%.

Liquidity and Capital Management:

• The investment portfolio increased by 19% year-over-year to $1.4 billion, with a strong liquidity position of $1.9 billion, representing 15% of total assets.
• This was achieved through conservative risk management and a diversified funding strategy, including a successful AT1 issuance to strengthen the capital structure.

Strategic Growth and Market Positioning:

• The bank is positioned to continue expanding its loan book with a focus on geographic and sector diversification, maintaining a resilient credit risk profile.
• This strategy is supported by a capital-aware approach to growth and ongoing investments in IT platforms to scale fee-based income.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted 'record results year after year,' 'strong and consistent profitability,' and achieving 2025 goals 'a year ahead of schedule.' The tone is confident about strategic execution: 'We enter 2026 with strong capital buffers, a solid transaction pipeline...'

Q&A:

• Question from Ricardo Buchpiguel (Banco BTG Pactual S.A., Research Division): First, I just wanted to clarify if the ROE guidance is for the accounting or the adjusted figure?... what is reasonable for us to expect in terms of noninterest income with these moving parts for 2026?... if you can provide more color on how much the duration of the portfolio increased in Q4? And how much that contributed for a higher NIM during the period?
  Response: ROE guidance is adjusted (excludes AT1 issuance). Fee income for 2026 expected to be similar to 2025, around 18%-20% of total revenues. Q4 NIM benefited from medium-term transactions, efficient liquidity levels, and higher average deposit balances; 2026 NIM guidance of 2.3% factors in rate cuts but is supported by deposit growth and active management.

• Question from Danele Miranda de Abiega (Santander Investment Securities Inc., Research Division): The first 1 is regarding the 13% to 15% portfolio growth guidance. How much of this is driven by overall market growth? And how much is market share gains?... a quick follow-up on NIM. I understand there were extraordinary factors helping NIM in the fourth quarter, and your 2026 guidance shows stability, but more on a medium-term sense, is that 2.3% NIM through the cycle margin? Or should we expect it to normalize more in the 2028?
  Response: Growth is not measured by market share; it is balanced across countries like Guatemala and Argentina, with opportunities in underexposed markets like Argentina's Vaca Muerta. Margin pressure is acknowledged, but structural strategy on value-added transactions and capital allows defense; 2.3% NIM guidance for 2026 is specific, not necessarily a through-the-cycle figure.

• Question from Daniel Mora (CrediCorp Capital, Research Division): I would like to understand what will be those countries or regions that should drive the growth of 13%, 15% amid favorable cycle for emerging markets?... what will be those countries in which you anticipate reducing the exposure, or in which you see high competitive pressures?
  Response: Growth is expected to be well-balanced, with no specific dominant countries beyond Guatemala and Argentina. Colombia and Brazil are monitored for potential opportunities or competitive pressures due to macro concerns, but the short-duration portfolio allows constant reshuffling; secondary loan market opportunities in these countries could also drive growth.