Q2 2025 Banco Latinoamericano de Comercio Exterior SA Earnings Call
Annette van Hoorde: Good morning, ladies and gentlemen, and welcome to Bloomberg's second quarter 2025 earnings conference call. A slide presentation is accompanying today's webcast and is also available on the investor section of the company's website, www.bloodex.com. There will be an opportunity for you to ask questions at the end of today's presentation. Please note today's conference call is being recorded. As a reminder, all participants will be in a listen-only mode. I would now like to turn the call over to Mr. Jorge Salas, Chief Executive Officer. Sir, please go ahead.
Good morning, ladies and gentlemen, and welcome to Blade's second quarter 2025 earnings conference call.
A slight presentation is available on the company's webcast and can also be found in the Investor section of the company's website.
An opportunity for you to ask questions at the end of today's presentation.
Please note today's conference call is being recorded.
As a reminder, all participants will be in a listen-only mode.
Jorge Salas: Good morning, everyone, and thank you for joining us today to discuss Bloodx's results for the second quarter of 2025. I will begin with the highlights of our performance during the quarter, and then, as usual, Anette, our CFO, will walk you through the financials in more detail. After that, I will share a few thoughts on the macro environment and update you on the progress of Bloodx's transformation journey before we open the call for questions. The second quarter stands as one of the strongest quarters in our bank's history, not only because of the record bottom-line number, but perhaps more importantly, because of the earnings quality. Furthermore, it reaffirms the resilience and adaptability of our business model in the face of an increasingly complex macro environment and a particularly volatile trade environment.
I would now like to turn the call over to Mr. Jorge, Salas, chief executive officer, sir. Please go ahead.
Good morning everyone and thank you for joining us today to discuss blacks as results for the second quarter of 2025.
I will begin with a highlights of our performance during the quarter and then as usual Annette or CFO will walk you through the financials in more details after that.
I will share a few thoughts on the macro environment and update you on the progress of blacks, as transformation Journey, before we open the call for questions.
The second quarter stands as 1 of the strongest quarters in our bank's history.
Not only because of the record bottom line number. But perhaps more importantly, because of the earnings quality.
Jorge Salas: In the second quarter, we delivered record earnings, strong revenue growth propelled by fee income while maintaining pristine asset quality and robust capital levels. While the results include a meaningful contribution from a landmark structure transaction executing during the quarter, it is important to highlight that even without this transaction, the quarter would still have marked a record performance driven by well-diversified commercial activity and disciplined execution across all business lines. Our commercial portfolio grew to $10.8 billion. That is up 1% quarter over quarter and 18% year over year. Growth was broad-based with strong momentum in Central America. As I said, credit quality remained exceptional, with non-performing loans close to zero and over 97% of exposures classified as stage one. On the funding side, deposits increased to $6.4 billion, 10% above the prior quarter and 23% higher than a year ago. Deposits now represent 62% of our total funding.
Furthermore, it reaffirms the resilience and adaptability of our business model in the face of an increasingly complex, macro environment in a particularly volatile trade environment.
In the second quarter, we delivered record earnings. Strong revenue growth propelled my fee income while maintaining pristine asset quality and robust capital levels.
While the results include a meaningful contribution from a landmark structure transaction. Executing during the quarter, it is important to highlight that even without this transaction, the quarter would still have marked a record performance driven by well Diversified commercial activity and discipline execution across all business lines.
Our commercial portfolio grew to 10.8 billion dollars, that is up 1% quarter over quarter and 18% year-over-year.
Growth was broad-based with strong momentum in Central America.
As I said, credit quality remained exceptional, with non-performing loans close to zero and over 97% of exposures classified as Stage 1.
On the funding side, the deposits increased to $6.4 billion.
10% above the prior quarter in 23% higher than a year ago.
Jorge Salas: This is obviously key to keep our funding costs under control. The growth in deposits was driven by continued strength in our longstanding institutional deposit base, including central banks, our Class A shareholders, and a solid performance of our Janque CD program, as well as a sustained increase in corporate client deposits, which have grown more than 30% in the last 12 months. Net interest income totaled nearly $68 million, up 4% from the previous quarter and 8% versus last year. Our net interest margin stood at 2.36%, slightly above expectations. Fee income deserves a special mention. Fee income stood at $20 million for the quarter, up 88% quarter over quarter and 59% year over year. A significant part of this increase was due to the structured syndicated deal I mentioned before.
Deposits. Now represent 62% of our total funding. There's obviously key to keep our funding costs under control.
the growth in deposits was driven by continued strength in our long-standing institutional deposit base, including central banks, our classes shareholders
And a solid performance of our janky CD program, as well as a sustained increase in corporate client deposits, which have grown more than 30% in the last 12 months.
Net interest income totaled, nearly 68 million of 4% from the previous quarter and 8% versus last year.
Our net interest margins. Stood at 2.36% slightly above expectations.
C Income deserves a special mention.
Fee income stood at 20 million dollars for the quarter of 88%, quarter, over quarter and 59% year-over-year.
Jorge Salas: In such a distraction, Bloodx acted as global coordinator and mandated lead arranger alongside a global bank and a multilateral institution. For a $1.6 billion senior-secured syndicated facility for its tasselier, Suriname's national oil company and top contributor to the country's GDP. Suriname has been a Class A shareholder of Bloodx since 1997. The transaction received a strong reception from the market, attracting 18 financial institutions from all over the world. It is once again the proof of our ability to selectively execute high-impact deals that align with both our risk appetite and our mission. Bloodx has a longstanding track record of supporting state-owned enterprises in strategic sectors such as oil and gas, and tasselier with a strong fundamental and excellent governance is a company we've followed closely for many, many years.
A significant part of this increase was due to the structured syndicated deal. I mentioned before,
In such transactions, blacks acted, as Global coordinator and mandated leader Ranger alongside a global bank.
In a multilateral Institution.
For a 1.6 billion dollar, senior secured, syndicated facility for National oil company and top contributor to the country's GDP.
Suriname has been a Class, A shareholder of blacks since 1997.
The transaction received a strong reception from the market attracting 18 financial institutions from all over the world.
It is, once again, the proof of availability to selectively execute, high impact deals that align with both our risk appetite.
And our mission.
Black has a long-standing track record of supporting state-owned enterprises in strategic sectors, such as oil and gas in Stock Oily.
Jorge Salas: While our loan book remains predominantly short-term, this facility, with a weighted average life of approximately five years, fits comfortably within our usual medium-term exposure limits and reflects our ability to support longer-dated, well-structured transactions when the risk return profile is attractive. But beyond this transaction, commercial activity remains strong, and our pipeline continues to be active and as strong as ever, particularly in the trade finance and structured lending. These dynamics give us the confidence in our ability to continue delivering recurring in high-quality fee income. Operating expenses were stable quarter over quarter, and our efficiency ratio improved to 23.1%, a 380 basis point gain versus the prior quarter, and comfortably within our full-year guidance. Finally, net income reached a record of $64 million, up over 24% from the first quarter and 28% from a year ago.
Is a company we followed closely for many many years.
while our loan book remain remains predominantly short-term,
This facility with a weighted average, life of approximately 5 years, fits comfortably within our usual, medium-term exposure limits and reflects our ability to support longer dated well, structured transactions. When the researcher in profile is attracted,
But beyond this transaction commercial activity remains strong in our pipeline continues to be active and as strong as ever particularly in the trade finance and structure Lending.
This Dynamics, give us the confidence in our ability to continue delivering recurring in high quality sea income.
Operating expenses were stable.
Quarter over quarter in our efficiency ratio improved to 23.1% a 380 basis point gained versus the prior quarter, and comfortably within our full year guidance.
Jorge Salas: Return on equity stood at 18.5%, the highest quarterly ROE in over two decades, a clear reflection of the strength and scalability of our business model. Capital levels remain...
Finally, net income, reached a record of 64 million up over 24% from the first quarter in 28% from a year ago.
Return on Equity stood at 18.5%, the highest quarterly Roe in over 2 decades. A clear reflection of the strength and scalability of our business model.
Capital levels.
Annette van Hoorde: Portfolio. Our total credit portfolio stood at $12.2 billion, up 18% year over year, reflecting sustained growth in commercial activity across the region. The commercial portfolio, which includes loans and contingencies, reached $10.8 billion, up 1% quarter over quarter and 18% year over year. Growth this quarter was primarily driven by our off-balance sheet business, which rose 11% quarter over quarter and 25% year over year, supported by higher demand across all segments that have credits, guarantees, and credit commitments. This helped us to deepen client engagement while preserving capital and enhancing risk-adjusted returns. The loan portfolio closed this quarter at $8.6 billion, up 16% year over year. While end-of-quarter balances were slightly below March levels, the average balances were higher than the ones in the first quarter, reflecting healthy origination. In a context of continued margin compression and elevated liquidity, we remain focused on sound underwriting and high-quality opportunities.
Portfolio.
Our total credit portfolio stood at 12.2 billion dollars of 18% year-over-year reflecting sustained growth in commercial activity across the region.
The commercial portfolio which includes loans and contingencies which 10.8 billion dollars of 1% quarter over quarter and 18% year-over-year.
Growth. This quarter was primarily driven by our off balance sheet business, which rose 11% quarter over quarter and 25% year-over-year.
Supported by higher demand across, all segments, that are credits guarantees and credit commitments.
This helped us deepen client engagement while preserving capital and enhancing risk-adjusted returns.
The loan portfolio closed this quarter at 8.6 billion dollars up 16% year-over-year.
While and of quarter, balances were slightly below March levels. The average balance is for higher than the ones in the first quarter.
Reflecting healthy origination.
Annette van Hoorde: Bloodx continued to grow its commercial portfolio by executing opportunities aligned with our strategic focus. High-value transactions, such as the tasselier financing facility and other syndicated deals, demonstrated the strength of our origination and distribution capabilities, helping to offset tighter pricing and ample market liquidity. Many of these transactions were in the works for several quarters, highlighting the depth of our pipeline and consistency in execution. Our commercial exposure remains well-diversified across sectors and geographies, with our main exposure in Brazil, Guatemala, and Mexico. This quarter, we also saw relative growth in Costa Rica, Paraguay, and Suriname. We continue to find opportunities across the region to strengthen client relationships, capitalize on market dislocations, and grow our presence in key markets.
In a context of continued margin compression and elevated liquidity, will remain focused on sound on the writing and high quality opportunities?
Blades. Continue to grow. Its commercial portfolio by executing opportunities aligned with our strategic Focus.
High value transactions such as stop. So financing facility and other syndicated deals demonstrated the strength of our origination and distribution capabilities.
Helping to upset tighter pricing and ample market liquidity.
Many of these transactions were in the works for several quarters. Highlighting the depth of our Pipeline and consistency in execution.
Our commercial exposure remains well diversified across sectors and geographies.
With our main exposure in Brazil, Guatemala and Mexico.
This quarter, we also saw relative growth in Costa Rica, Paraguay, and Sudan.
Annette van Hoorde: Looking ahead, we see strong momentum in the execution of medium-term and structured transactions, which offer higher margins and better capital efficiency, complemented by short-term transactions that keep us agile and responsive to our client needs. Turning now to the investment portfolio, balances increased 8% quarter over quarter and 20% year over year, reaching just over $1.3 billion. The portfolio is short in duration, with an average duration around two years, and remains concentrated in investment-grade non-LATAM issuers, providing liquidity and credit diversification. Most of these securities are held through our New York agency and are eligible for the Fed discount window, reinforcing our already strong liquidity position by providing contingent access to a lender of last resort. Lastly, total assets reached $12.7 billion, up 2% quarter over quarter and 16% year over year, reflecting both commercial momentum and our flexible balance sheet strategy.
We continue to find Opportunities across the region, to strengthen client relationships, capitalize on market, dislocations and grow our presence in key markets.
Looking ahead, we see strong momentum in the execution of medium-term structural transactions.
Which offer higher margins and better Capital efficiency.
Complemented by short-term transactions, that keep us agile and responsive to our client needs.
Turning now, to the Investment Portfolio, balances increase 8% quarter over quarter and 20% year-over-year.
Revenue over 1.3 billion dollars.
With an average duration around 2 years and remains concentrated in investment grade. Non latan issuers, providing liquidity and credit diversification.
Most of these Securities are held through our New York agency and are eligible for the FED. Discount window reinforcing our already strong liquidity position by providing contingent access to a lender of Last Resort.
Annette van Hoorde: We continue to grow with discipline, preserving capital, sustaining client activity, and reinforcing our balance sheet strength. Moving on to asset quality. Credit performance remains strong in the second quarter and continues to reflect our discipline and proactive approach to risk. As of June, non-performing loans or stage three totaled $19 million, or just 0.2% of total exposure, with a robust reserve coverage of five times, while stage two exposures remain stable at $240 million, or 2% of total credit portfolio. In turn, nearly 98% of our portfolio is classified as stage one, with no signs of deterioration or weakening credit strength. Provisions for credit losses totaled $5 million this quarter. Most of it was tied to strengthening reserves for exposures in higher-risk credit profiles, primarily related to stage two, rather than new permits or downgrades.
Lastly total assets reach 12.7 billion dollars up 2% for our quarter and 16% year-over-year reflecting, both commercial momentum and our flexible balance sheet strategy.
We continue to grow with discipline preserving capital.
Sustaining client activity and reinforcing our balance sheet strength.
Moving on to asset quality.
Credit performance remains strong in the second quarter and continues to reflect our discipline and proactive approach to risk.
As of June, non-performing loans or stage 3, total of 19 million, or just 0.2% of total exposure.
With a robust reserved coverage of 5 times.
While stage 2, exposures remain stable at 240 million dollars.
Or 2% of total credit portfolios.
In turn, nearly 98% of our portfolio is classified as Stage 1, with no signs of deterioration or weakening credit strength.
Provisions for credit losses, total 5 million dollars. This quarter.
Most of it was tied to strengthening reserved for exposures in higher risk credit profiles.
Annette van Hoorde: Overall, the credit portfolio remains in solid shape, backed by strong client performance and no material credit events or emerging risks. Let's not turn to funding. Deposits reached $6.4 billion at quarter end, up 10% quarter over quarter and 23% year over year. Beyond the increase in absolute terms, deposits have also continued to grow in relative importance, now representing 62% of total funding compared to 57% last quarter. This tendency highlights the growing strength of our client relationships and the central role deposits play in our funding strategy. The strong performance was supported by steady growth in bank and corporate deposits. As Jorge mentioned, corporate deposits grew over 30% year over year, reflecting our ability to expand and diversify our funding base. In addition, Class A shareholder deposits, which remain a core pillar, accounted for 37% of total deposits at quarter end.
Primarily related to Stage 2, rather than new permits or downgrades.
Overall, the credit portfolio remains in solid tape.
Backed by strong client performance and no material credit events or emerging risks.
Let's not try to funding.
Deposits, reach. 6.4 billion dollars at Fort RN up. 10% quarter over quarter and 23% year-over-year.
On the increase in absolute terms deposits. Have also continued to grow in relative importance.
Now, representing 62% of total funding compared to 57% last quarter.
This tendency highlights the growing strength of our client relationships and the central role deposits play in our funding strategy.
This strong performance was supported by Steady growth in bank and corporate deposits.
As Jorge mentioned corporate deposit, grew over 30% year-over-year reflecting our ability to expand and diversify our funding base.
Annette van Hoorde: Our Janque CD program also continues to scale effectively. Balances reached $1.3 billion, representing 20% of total deposits, providing both granularity and duration to our deposit base. Outside deposits, short-term funding and repo balances remain stable, continuing to play a key role in supporting portfolio growth. Meanwhile, long-term funding totaled $2.5 billion, or 24% of total financial liabilities. We are pleased to share that this past July, as part of our funding diversification strategy, we issued a local bond in the Mexican market for 4,000 million Mexican pesos. The transaction was very well received and oversubscribed, confirming strong demand from local investors and reinforcing our position as a recurring issuer in Mexico. The proceeds were swapped to US dollars at very attractive levels, providing cost-efficient funding to support portfolio growth.
In addition to Class A sure holder deposits, which remain a core pillar account for 37% of total deposits at quarter end.
Our January CD program, also continues to scale, effectively.
Balance is reached 1.3 billion dollars representing 20% of total deposits, providing both granularity and duration to our deposit base.
Outside deposits short-term funding and repo balances remain stable continuing to play a key role in supporting portfolio growth.
Meanwhile, long-term funding totals $2.5 billion for 24% of total financial liabilities.
We are pleased to share that this past July as part of our funding diversification strategy. We issue a local bond in the Mexican market for 4,000 million Mexican pesos.
The transaction was very well received and overs subscribed.
Confirming strong demand from local investors and reinforcing our position as a recurring issuer in Mexico.
Annette van Hoorde: In short, we continue to develop a robust and stable funding base that is cost-effective, increasingly diversified, and aligned with the evolving requirements of our commercial strategy. In addition, at quarter end, liquid assets represented over 15% of total assets, providing a solid buffer and ample flexibility. We are building a funding base that gives us flexibility to support growth, respond to market shifts, and optimize our liability structure over time. Now, let's take a look at capital. Total equity reached $1.4 billion, up 3% quarter over quarter and 12% year over year, reflecting the strength of our earnings generation and retained capital. Our SPED1 ratio remains solid at 15%, while the total capital adequacy ratio improved to 13.9%, both in lines with internal targets and well above regulatory minimums.
He proceeds were swapped to US dollars at very attractive levels, providing cost-efficient funding to support portfolio growth.
In short, we continue to develop a robust and stable funding base. That is cost-effective increasingly Diversified and aligned with the evolving requirements of our commercial strategy.
In addition at quarter end liquid assets represented over 15% of total assets providing a solid buffer and ample flexibility.
We are building a funding base that give us flexibility to support growth, respond to Market shifts and optimize our liability structure over time.
Now, let's take a look at Capital.
Total equity reached $1.4 billion.
Reflecting the strength of our earnings generation and retained capital.
Our set 1 ratio remains solid at 15%, while the total Capital adequacy ratio improved to 13.9%.
Annette van Hoorde: This reflects a balanced approach between supporting portfolio growth and preserving capital strength, while reinforcing our firm commitment to maintaining an investment-grade profile. In line with this performance, the board approved a quarterly dividend of 62.05 cents per share, unchanged from the prior quarter. This reflects the consistency of our financial results and our confidence in the durability of the bank's earnings. Our capital position remains robust, allowing us to grow, return capital, and defend our credit ratings with confidence. Let's move now to the top line, starting with the net interest income. Net interest income totals $67.7 million, up 4% quarter over quarter and 8% year over year, driven by increasing average loan balances and disciplined pricing across the credit portfolio. Our net interest margin remains stable at 2.36%, and our net interest spread improved to 1.70%, up five basis points versus the first quarter.
Both in lines with internal targets and well above regulatory minimums.
This reflects a balanced approach between supporting portfolio, growth and preserving Capital strength.
while reinforcing our firm commitment to maintaining an investment grade profile,
In line with this performance before approved, a quarterly dividend of 62.5 cents per share on change from the prior quarter.
This reflects the consistency of our financial results and our confidence in the durability of the bank's earnings.
Our Capital position remains robust, allowing us to grow return capital and defend our credit ratings with confidence.
Let's move now to the top line, starting with the net interest income.
Net, interest income total of 67.7 million up 4% for over a quarter and 8% year-over-year.
Driven by increasing average loan balances and discipline pricing across the credit portfolio.
Annette van Hoorde: These results confirm that our margins have now stabilized at target levels, even in the face of falling interest rates. While origination remains pressured by tighter pricing and high liquidity across the region, we have successfully turned our funding strategy and disciplined underwriting into solid and consistent earnings. Our growing and more diversified deposit base continues to lower our cost of funds and support margin stability. As a result, we remain confident in our full-year NIM guidance in the range of 2.30%, assuming no major changes in rate projections or portfolio mix. With spreads and NIM holding steady, we are proving that strong origination and proactive asset liability management can sustain earnings, even in challenging trade environments. Turning now to fee income. Non-interest income reached $19.9 million this quarter, nearly doubling from the prior quarter and making a record high for Bloodx.
Our net interest margin remains stable at 2.36% and our net interest spreads improved to 1.70% up 5 basis points versus the first quarter.
This results, confirmed that our margins have now stabilized at Target levels, even in the face of falling interest rates,
While origination remains pressure by tighter pricing and highly liquidity across the region. We have successfully turned our funding strategy, and discipline underwriting into solid and consistent earnings.
Our growing are more Diversified deposit base continues to lower our cost of funds and support marginal stability.
As a result, we remain confident in our full year, meme guidance. In the range of 2.30%.
Assuming no major changes in rate, projections or portfolio mix.
Which spreads and name holding steady. We are proving that strong origination and productive asset liability management can sustain earnings even in challenging rate environments.
Turning now to free income.
Non-interest income reached $19.9 million this quarter.
Annette van Hoorde: The standout performance was the closing of the transaction for Suriname's national oil company, Tasselier, a $1.6 billion syndicated loan in which Bloodx acted as a global book runner. This has been the largest syndicated facility ever arranged by Bloodx in 46 years of history. As a result, syndicated transactions and recurring fees from our role as admin agent contributed $10 million during the quarter, reinforcing the strength of our structuring and distribution franchise and our increased relevance in providing medium-term solutions. Credit commitment also added $2.8 million in fee income, demonstrating the importance of contingent lending within our product offering. That said, the record fee generation in the quarter wasn't solely driven by syndicated transactions. Recurring activity across the other business lines remains strong.
Nearly doubled in from the prior quarter and making a record high for blacks.
You stand out performance, was the closing of the transaction for 39, National Oil Company Stateline.
A 1.6 billion dollars indicated Loan in which blacks acted as a global bulk Runner.
This has been the largest syndicated facility ever arranged by blacks in 46 years of History.
As a result indicated transactions and recurring fees from our role. As admin agent contributed, 10 million dollars during the quarter.
Reinforcing the strength of our structuring and distribution franchise and our increased relevance in providing medium-term Solutions.
Credit commitments, also added 2.8 million in fee income.
Demonstrating the importance of contingent lending within our product offerings.
That said, the record for Generation in the quarter wasn't solid driven by syndicated transactions.
Annette van Hoorde: Fees from letters of credits rose to $7.8 million, up 17% quarter over quarter and 20% year over year, reflecting healthy volumes in our core trade finance flows. As we continue to roll out our new trade finance platform, we expect this revenue stream to grow further, supported by enhanced client experience and processing efficiency. While transactions like Tasselier are not frequent, our fee generation reflects the steady growth of our structure and higher value-added trade finance businesses. Record fees this quarter reflect more than one big deal. They validate the depth, strength, and reach of our multiline origination capabilities. Let's now turn to expenses and efficiency. Operating expenses totaled $20.8 million, essentially in line with both the previous quarter and our estimate for the period. This consistency reflects our disciplined approach to cost management as we advance in key strategic initiatives.
Recurrent activity across the other business lines, remain strong.
Please from letter of credits Rose to 7.8 million up, 17% quarter over quarter.
And 20% year-over-year.
In healthy volumes in our core trade Finance bills.
As we continue to roll out our new Trade Finance platform, we expect this revenue stream to grow further, supported by enhanced client experience and processing efficiency.
While transaction like are not frequent. Our fee, generation reflects the steady growth of our structure and higher value added trade, Finance businesses,
Record fees. This quarter reflect more than 1 big deal.
They validate the debt strength and reach of our multi-line, origination capabilities.
Let's now turn to expenses and efficiency.
Operating expenses total out 20.8 million essentially, in line with both the previous quarter and our estimate for the period.
Annette van Hoorde: During the quarter, we continue executing on our transformation agenda with a focus on technology and digital capabilities. This includes the deployment of our new trade finance platform, which is expected to be fully operational for the letter of credit products by the end of the third quarter. With the platform now live, we anticipate that the related depreciation expenses will begin to impact costs towards the end of the third quarter. That said, this will not impact our full-year efficiency guidance. Importantly, we expect this investment to enhance client experience and unlock incremental fee income over time. Aside from project-related costs, the underlying expense base remains stable, with no material increases in personnel or overhead costs. As a result, our efficiency ratio improved to 23.1%, well above our full-year target range.
Selects our discipline approach to cost management as we advance in key strategic initiatives.
During the quarter, we continued executing on our transformation agenda with a focus on technology and digital capabilities.
This include the deployment of our new trade, Finance platform.
Which is expected to be fully operational for the letter of credit products by the end of the third quarter.
With the platform now live, we anticipate that the related depreciation expenses will begin to impact costs towards the end of Q3.
That said,
this will not impact our full year efficiency guidance.
Importantly, we expect this investment to enhance client experience and unlock incremental income over time.
Aside from Project related costs. The underlying expense based remains stable with no material increases in Personnel or overhead costs.
Annette van Hoorde: While this quarter's result was supported by elevated fee income, we continue to expect efficiency to remain below 30%, even as we sustain investment in growth and modernization. We continue to manage expenses with a long-term mindset, balancing strategic investment with cost discipline to enable scalable and profitable growth. Let me close with a look at earnings and returns. Net income for the second quarter reached $64.2 million, up 24% from the first quarter and 28% year over year, driven by strong top-line performance, stable credit provisions, and disciplined cost management. This marks the highest quarterly operating income in the bank's history and reflects the strength of our commercial model, the scalability of our platform, and the disciplined execution of our strategy. Return on equity expanded to 18.5%, also a record high in the last two decades.
As a result, our efficiency ratio improved to 23.1% well above our full year, target range.
While these quarters resolved was supported by elevated fee income. We continue to expect efficiency to remain below 30%, even as we sustained investment in growth and modernization.
We continue to manage expenses with a long-term mindset, balancing strategic investment with cost discipline to enable scalable and profitable growth.
Let me close with a look at earnings and returns.
Net income for the second quarter with 64.2 million of 24% from the first quarter and 28% year-over-year.
By strong Topline performance, stable credit provisions and discipline cost management.
This marks the highest quarterly operating income in the bank's history, and reflects the strength of our commercial model, scalability of our platform, and the discipline execution of our strategy.
Annette van Hoorde: To put this in perspective, even after normalizing for the extraordinary fee from the Tasselier transaction, ROE would have remained well within our guidance range, demonstrating the strength of our underlying profitability. This performance reflects a combination of solid revenue growth, fee diversification, a more efficient funding base, and a strong cost control, all achieved without compromising our risk standards. In conclusion, even excluding the significant fee income from the Tasselier transaction, our core earnings would still rank among the strongest in recent years. This reinforces that our profitability is not driven by one-off transactions, but by a disciplined strategy that continues to deliver attractive and sustainable returns for our shareholders. With that, I will now turn the call back to Jorge for closing remarks. Thank you all.
Return on equity expanded to 18.5%, our record high in the last two decades.
to put this in perspective, even after normalizing, for the extraordinary fee, from the stately transaction Roe would have remained well, within our guidance range
Demonstrating the strength of our underlying profitability.
This first performance reflects a combination of solid revenue growth.
Be the recipient a more efficient funding based and a strong cost control all achieve without compromising our risk standards.
In conclusion, even excluding the significant fee income from the stats solely transaction. Our core earnings would still rank among the strongest in recent years.
This reinforces that our profitability is not driven by one-off transactions, but by a disciplined strategy that continues to deliver attractive and sustainable returns for our shareholders.
Jorge Salas: Thank you very much, Anette. Very clear. Great job. Turning now to the macro backdrop, the global environment remains complex. Trade tensions and shifting policy priorities continue to fuel market volatility and uncertainty. Geopolitical risks have also intensified, with a renewed conflict between Iran and Israel contributing to a spike in oil prices. Governments are shifting towards more protectionist policies. That said, their actual impact so far has been lower than initially expected. In Latin America, the picture remains broadly resilient. Consumption continues to drive growth, while investment lags. The IMF expects regional growth to ease slightly in 2025, mainly due to slower activity in Brazil and Mexico. In contrast, several economies such as Colombia, Chile, Panama, Costa Rica, and Guatemala are expected to accelerate their growth trajectory in the second half of this year. Fiscal vulnerabilities remain a key risk in a high-interest rate environment.
With that, I will now turn the call back to for closing remarks. Thank you all.
Thank you very much and Ed very clear. Great job.
Turning now to the macro backdrop.
The global environment remains complex, great tensions and shifting policy priorities continue to fuel Market, volatility and uncertainty.
Geopolitical risks have also intensified with the renewed conflict between Iran and Israel contributing to spike in oil prices.
Governments are shifting towards more protectionist policies that said they're actually impacts so far has been lower than initially expected.
In Latin America, the picture remains broadly resilient; consumption continues to drive growth, while investment lacks.
The IMF expects regional growth to eat slightly in 2025 mainly due to slower activity in Brazil and Mexico.
In contrast, several economies such as Colombia Chile Panama, Costa Rica and Guatemala.
Are expected to accept accelerate their growth trajectory in the second half of this year.
Jorge Salas: That said, trade shifts and low regional tariffs offer new opportunities for Latin America, particularly in manufacturing and exports. Also, remittance flows remain stronger than anticipated, with many countries still seeing double-digit growth here. In general, Latin America's fundamentals remain solid. In this context, as a regionally focused institution, Bloodx is well-positioned to support clients navigating this environment through disciplined credit institutions and deep experience in cross-border flows. We remain cautious and, at the same time, constantly evaluating opportunities with an attractive risk-reward balance. Let me now quickly update you on the execution of our strategic plan. Exactly one year ago, we announced our partnership with CGI, a global leader in trade finance technology. The plan was to implement a new digital platform to modernize our trade operations, particularly our management of letters of credit and working capital solutions.
Fiscal vulnerabilities, remain a key risk in a high interest rate environment.
That said, trade shifts in low regional tariffs offer new opportunities for Latin America, particularly in manufacturing and exports.
Also, remittance flows.
Remain stronger than anticipated with many countries, still seeing double digit growth here.
Latin America's fundamentals, remain solid.
In this context. As originally focused institution blacks is well, positioned to support clients, navigating this environment.
Through discipline credit institutions and deep experience in cross-border flows.
We remain cautious and at the same time, constantly evaluating opportunities with an attractive risk-reward balance.
Let Me Now quickly update you on the execution of our strategic plan.
Exactly 1 year ago, we announced our partnership with CGI.
A global leader in trade finance and technology.
Jorge Salas: At the time, we shared our intentions to roll out this solution within a 12-month timeline. Today, I'm proud to report that we have delivered exactly as promised. 12 months later, with flawless execution and no delays, the platform is fully up and running. This was a complex and very demanding IT project that was run by our project management office. The project involved more than 50 professionals across the organization, working in close collaboration with our vendor. Final testing was successfully completed during the second quarter of this year. We rolled out the platform to a group of pilot clients in July, and today, we're operating entirely on the new system. I want to recognize the dedication and professionalism of the entire team. But this is not just a system upgrade.
The plan was to implement a new digital platform to modernize our trade operations. Particularly our management of letters of credit and working Capital Solutions.
At the time, we share our intentions to roll out this solution within a 12-month timeline.
Today I'm proud to report that we have delivered exactly as promised.
12 months later with flawless execution and no delays. The platform is fully up and running.
This was a complex and very demanding, IT project that was run by our project management office.
The project involved more than 50 professionals across the organization working in close collaboration with our vendor.
Final testing.
Was successfully completed during the second quarter of this year.
We rolled out the platform to a group of pilot clients in July, and today, we're operating entirely on the new system.
I want to recognize the dedication and professionalism of the entire team.
Jorge Salas: It marks the beginning of a new era for Bloodx in the digital transformation of its trade finance operations. Our new trade platform significantly enhances our efficiency, our security, and the client experience, and reinforces our commitment to offering world-class solutions to our clients across the region. We are now entering a transition phase where new trade operations are already being processed through the new platform, while existing transactions will naturally run their course in the legacy system. As this transition occurs, we expect the platform to reach full operational capacity over the next 18 months, gradually becoming the backbone of our trade finance offering. Before we move to a Q&A, let me close by saying that we are pleased with how the year overall is unfolding.
But this is not just a system. Upgrade
It marks the beginning of a new era for blacks in the digital transformation of its trade Finance operations.
Our new trade platform significantly, enhances our efficiency, our security and the client experience and reinforces our commitment to offering world-class solutions to our clients across the region.
We are now entering a transition phase where new trade operations are already being processed through the new platform. While existing transactions will naturally run their course in the Legacy system.
Assist transition occurs, we expect the platform to reach full operational capacity over the next 18 months. Gradually becoming the backbone of our trade Finance offerings.
Before we move to a Q&A, let me close by saying that we are pleased with how the year.
Jorge Salas: Our results for the first half of the year give us confidence to reaffirm our full-year guidance, and we remain optimistic about the outlook for the second half. The fundamentals across the region remain constructive. Our pipeline is stronger than ever. Bloodx is well-positioned to continue delivering solid, consistent results. With that, let's now open the line for questions.
overall is unfolding.
Our results for the first half of the Year gives us confidence to reaffirm our full year guidance. And we remain optimistic about the outlook for the second half.
The fundamentals of the region remain constructive, our pipeline is stronger than ever.
Black is well positioned to continue delivering solid consistent results.
With that, let's now open the line for questions.
Annette van Hoorde: Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on "Raise Hand." If your question has already been taken, you can leave the queue by clicking on "Put Hand Down." There's also the possibility to ask your question through the Q&A icon at the bottom of the screen. You may select the icon and type your question with your name and company. Written questions that are not addressed during the earrings call will be returned by the Investor Relations team. Our first question comes from Ricardo Bushpigel with BTG. You can open your microphone.
Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on raise hand. If your question has already been taken, you can leave the queue by clicking on put hand down.
There's also the possibility to ask your question through the Q&A icon at the bottom of the screen.
You may select the icon and type your question with your name and company.
Written questions that are not addressed. During the earrings, call will be returned by the investor relations team.
Our first question comes from Hikaru bush, pigou with btg.
Ricardo Buchpiguel: Hi, everyone, and congrats on the solid quarter. I have two questions here on my side. This was a particularly strong quarter for syndication fees, as you mentioned. So it would be interesting to hear exactly what drove this strong performance in this line, if there is something in terms of market conditions that helped a little bit in this quarter, and what should we expect going forward, especially because considering the second half of the year is usually a bit stronger in the syndication line. And for my second question, back in Q1 conference call, you guys mentioned that you were already expecting some widening of spreads following Trump's liberation day, and we did see that in future results, right?
You can open your microphone.
Hi everyone and congrats on the solid quarter. I have 2 questions here on my side, this was a particular strong quarter for the education fees as you mentioned. Uh, so it'll be interesting to hear exactly what drove, this strong performance. In this line. If there is something in terms of market conditions that helped a little bit, uh, in this quarter. And why should we expect going forward? Especially because, considering, uh, the second half of the year is usually a bit stronger in the, the syndication line.
Ricardo Buchpiguel: But since then, markets have come down quite a bit, and I would like to hear your take on how you're seeing the competitive environment now, especially with more active capital markets towards the second half of the year, and whether we should see or expect a spread tightening in the coming quarters, pressing a little bit more of NIM. Thank you very much.
Jorge Salas: Thank you, Ricardo, for your question. A few things here. I'm going to answer the first question and then turn it over to Sam, our Chief Commercial Officer, to answer the spreads question. But as far as the results and how sustainable they are, the record results include, as we said, this one-off transaction that had exceptional syndication and structuring fees. But as I said before, even if you exclude that transaction, we would have had a record quarter anyways. I think the ROE would have been close to 17% even without that transaction.
Teacher results, right? But since that markets, have come down quite a bit and I would like to hear your your take on how you're seeing the the competitive environment. Now, especially, uh, with more active Capital markets, uh, towards the second half of the year. And whether we should see or expect, uh, uh, spread tightening in the, the coming quarters pressing a little bit more of me. Thank you very much.
Thank you. Uh, Ricardo for your question.
A few things here. Uh, I'm going to answer the first question and then, uh,
I'll turn it over to Sam, Chief Commercial Officer, to answer the questions regarding the spreads. As far as the results and how sustainable they are, we are witnessing record results.
Include us as we said, uh, this one after transaction.
Jorge Salas: Now, if you zoom out and look at this bank over the last three and a half years, what you see is a systematic increase in fee income, not only in nominal terms, but also as a percentage of total income, which is exactly what it was exactly the idea and will continue to be the idea. Remember that you have a bank, Ricardo, that has essentially a matchbook and will continue to have a matchbook, and that has floating rates on both sides of the balance sheet. So the whole idea of this plan is to make our results less dependent on market rates. So fees is basically the name of the game. In our case, as a trade bank, the letter of credit fees are essential, and that's why we have invested in this platform that's going to start scaling soon.
That had exceptional uh, syndication and structuring fees. Uh, but as I said before, even if you include that exclude, that transaction we would have had a, a record quarter anyway, which I think the Roa would have been close to 17% even without that transaction.
now, if if you zoom out uh and look at this bank over the last 3 and a half years,
what you see is a systematic increase in income, not only in nominal terms, but also as a percentage of total length,
which is exactly the idea, and we'll continue to be.
Uh, the idea, remember that you have a bank, uh, Ricardo, that...
Has essentially a matchbook and will continue to have a matchbook.
Uh, and I have
floating rates.
On both sides of the balance sheet. So so the whole idea of this plan is to make a results less dependent.
On on Marketplace.
So-and-so fees are basically the name of the game in our case as a trade bank.
Jorge Salas: So in other words, I'm not ready to give you exact guidance for 2026. I mean, it will depend on market rates, among other things. What I can tell you is that we see we still see substantial potential in basically all of our business lines as we keep scaling the bank in the future. Sam, do you want to tackle the spreads question?
Uh the letter of credit piece are essential and that's why we have invested in this in this platform that that's going to start scaling soon.
Uh so in other words, I'm not ready to give you exact guidance for for 2026. I mean, it will depend on on on Market rates among other things, but I can tell you is,
That we see, we still see substantial potential.
And basically all of our business lines. Uh as we as we keep uh scaling scaling, the banks uh in the future.
um,
Samuel Canineu: Yes. Well, in terms of market conditions, I think the market continues to be pretty liquid and competitive. But this has been, I would say, business as usual for us this year, and yet we continue to grow profitably. Now, we see more margin pressure, definitely on the FI lending market. And we so far have been able to compensate with higher spreads on the structured trade and working capital business as we continue to roll out new solutions. I think we'll see more stabilization on the short-term margins. And for the rest of the year, we don't expect major changes. I think there could be maybe some upside in case of, you know, the trade wars continue. But so far, we haven't seen such trade wars affecting so much the margins.
Sam. Do you want to tackle the spreads question?
um, well, uh
in terms of market conditions, I think the market continues to be pretty liquid and competitive
but this this has been I'll say business as usual for us this year and yet we continue to grow profitably. Now we see more margin pressure, definitely only a file ending Market
and, and we so far, have been able to compensate with the higher spreads, on the structure trade and working capital business, as we continue to roll out new Solutions,
um,
I think I see more stabilization on the for short-term margins.
Uh, and the, for the rest of the year, we don't expect, uh, major changes. I think there could be maybe some upside in case of um, you know, the the the trade Wars continue. But, uh, so far we haven't seen such, uh, trade Wars affecting so much. Uh, the margins
Ricardo Buchpiguel: Oh, very, very clear. And with data you guys mentioned, it would make sense to expect you guys approaching closer to the top end of the guidance, or even surprising a little bit the top end of the guidance in terms of ROE, given that you already delivered a lot in the first half of the year. And right now, the guidance is implying like a big deceleration in terms of bottom line.
Jorge Salas: Yes, for sure. We're going to be very close to the guidance, but at some we're going to be closer to the upper end of our guidance. Remember that the amortization of the platforms will start in the second quarter, but it seems like you're going to be today, what I can say is it seems like we're going to be slightly above our guidance. Yes.
No, very, very clear. And with, with data you, you guys mentioned, it would make sense to expect um, you guys approaching closer to the top end of the guidance or even surprised surprising a little bit. The top end of the guidance in terms of Roe, uh, given that you already deliver a lot in, in the, in the the first half of the year and right now, the guys is implying like a big uh deceleration in terms of of bottom line.
Yes. For sure. It it it we're going to be uh very close to to the guidance but if if someone were going to be closer to the upper end of our guidance, remember that the uh,
The amortization of the platforms will start in the second quarter, but it seems like you're going to be... uh, today. What I can say is, since we're going to be...
Uh, slightly above our guidance.
Yes.
Ricardo Buchpiguel: Very clear. Thank you.
Very clear. Thank you.
Annette van Hoorde: Our next question comes from Santiago Martinez with Credit Corp. You can open your microphone.
All right. The next question comes from Santiago Martinez with Credit Corp.
Ricardo Buchpiguel: Hi, everyone. Congratulations for these results. I have two questions on my side. The second one, the first one, sorry, is regarding if we should observe an increase in fees and letters of credit in the coming quarters due to the new platform of letters of credit, and how much this could increase in terms of fees and profitability. And the second question is, how do you perceive the current uncertainty in global trade as it impacted loan demand in different sectors and countries? Thank you.
Hi everyone. Congratulations for these results.
Um, I have 2 questions on my site, uh, the second 1, the first 1, sorry, um, is regarding if we, if we should observe an increase in fees and letters of credits, in the upcoming quarters due to the new platform of letter of credit.
And how much could this increase in terms of fees and profitability?
On the on the second question is um, how do you perceive that the current uncertainity in global trade?
As it impacted loan demand in different sectors and countries.
Thank you.
Jorge Salas: Thank you, Santiago. Good question. As far as the letters of credit and the new trade platform, I mean, the point here is that there's a big upside in processing smaller transactions with better margins. And that will be from both existing clients and also new clients. I mean, the new platform will allow us to do that in a cost-efficient manner with much better service with a new digital client interface, but also reducing operational risk. So over the medium term, you're going to see a significant increase in transactional volume and better margins. We do anticipate a reduction in the average ticket size, but the overall strategy is focused on scaling the business through higher transaction throughput. The platform is now live, and we anticipate, as I said, the depreciation expenses to start impacting the cost now.
Thank you, Santiago good question. Uh, as far as the uh, letters of credit and and the new uh trade platform.
I mean, the point here is that there's a big upside.
In processing. Smaller transactions with better markets.
And that will be from both existing clients.
And also new clients. I mean, the new platform will allow us to do that in, in a cost-efficient manner, uh, with much better service with a new, uh, digital client interface. But also
Uh, reducing uh, operational risk. So, so over the medium-term, you're going to see uh,
We have seen a significant increase in transactional volume, and we do anticipate better markets. However, we do anticipate a reduction in the average ticket size.
Jorge Salas: But LCs are very, very profitable, especially given its low capital consumption. And this is for sure an important strategic investment, but we expect it to pay off within 18 months. So it's going to be a very straightforward business case. You want to tackle the second one, Sam?
But the overall strategy is focused on scaling the business through higher uh transaction. Throughput. Uh the the platform is is now live. And, and we anticipate, as I said, uh, uh, the depreciation uh, expenses to to start impacting the cost now. Uh, but
Uh, yeah, LCS are very, very profitable. This is especially given its low capital consumption, and this is for sure an important strategic investment. We expect it to pay off within 18 months, so it's going to be...
It's it's a very uh, straightforward business case.
Samuel Canineu: Yeah, I think it's pretty straightforward. So far, we have not seen so much affection in volume, given the volume of pricing, given the new tariffs. I think, I mean, we're speaking with our clients on a daily basis about that. I think the important thing everybody is preparing and preparing to reroute their, I mean, the region will continue to export, and if not to the US, to other regions, most of what comes from it is commodities, and commodities can be, let's say, it's easier to reroute them. And the demand, I would say, at least in the short term, the demand for financing such exports should be there. I think on the long term, then yes, I think it's something that we're evaluating and also preparing for. But we don't know how it's going to be.
You want to talk about the second 1, Sam?
Yeah, I think it's pretty straightforward so far. We have not seen so much affection, uh, uh in volume um given the volume of pricing, uh, given the the the new tariffs.
I think, I mean, we, we, we're speaking with our clients, um, on a daily basis about that, I think, uh, the important thing everybody is is is preparing and preparing to reroute their their I mean the the region will continue to export and if not to the US to to other regions most of what it comes from, it is Commodities and commodities can be, let's say it's easier to to reroute them.
Uh, and the demands. Uh, I would say at least on the short term, the demand for financing in such exports will will should be there. I think on the long uh on the long term. Then yes, I think it's it's it's something that we're evaluating and also preparing for it, but uh, we we don't know how it's going to be.
Ricardo Buchpiguel: Thank you so much. And just to make a sum: considering the record fee income and the expected pipeline in syndication fees for the upcoming quarters, can we still consider net fees at current levels, or how sustainable is this in these quarters in terms of fees?
Thank you so much and just to, to make a some, um, considering that the records being income and expected pipeline in syndication fees for the upcoming quarters, can we still consider net fees at current levels, or how sustainable is this in? In in in in these quarters in terms of of fish?
Jorge Salas: So in terms of, so you have basically two fees. You have a syndication fee. You have that one-off transaction that is very meaningful. We do have a very strong pipeline, as I said, in syndications. I would say stronger than ever, but perhaps not with transactions not as big as this $1.6 billion transaction, but steady and healthy pipeline. And as far as the letters of credit fees, I mean, you've seen, I mean, they're up 20% from last year. And as the platform starts rolling out and including new clients from different segments, then you will see a sustained increase in LL letters of credit fees as well.
So in terms, in terms of, uh, so you are basically 2 feet, you have a syndication fees, H you have that 1 of transaction that is very meaningful. Uh, we do have a very strong pipeline as I said, in in indications, I will say stronger than ever. Uh, uh, perhaps not with transactions, not as big as this 1.6 billion dollar transaction. But, but steady and healthy Pipeline. And as far as the letters of credit fees, I mean, you you've seen, I mean, there are up 20% from last year, uh, and as the platform, um, uh, starts, uh, rolling out. And, and when including new clients, uh, from different segments, then you will see uh, sustained uh, increasing in in LL layers of code fees as well.
Ricardo Buchpiguel: Thank you so much.
Thank you so much.
Speaker 7: Our next question comes in written form by Jeffrey Otto, and it's the following: Congratulations on the continuous execution of your growth plan. Expanding into factory, accounts receivable financing has been mentioned by Bloodx in the past. It will seem to be a natural niche for Bloodx. Is the bank making an effort to expand in this space? And if so, do you expect this to become a meaningful profit center?
Our next question comes in reading form by Jeffrey Oto, and it's the following.
Congratulations, and the continuous execution of your growth plan, extending into factoring accounts. Receivable financing has been mentioned by bloodx in the past.
It will seem to be a natural Niche for blood X.
Jorge Salas: Yes, let me, yeah, very good question. Factoring is obviously an essential part of our working capital solutions strategy. It is a natural fit. Sam, I don't know if you want to give some color on that. We've done some, we've made some progress already there.
If the bank making an effort to expand in this space and if so, do you expect this to become a meaningful profit Center?
Yes, let me. Yeah. Good. Very good question. Factoring is obviously an essential part of our
Working Capital Solutions uh, strategy. Um, it's it is a natural fit. Um, some I don't want I don't know if you want to give some some color on on, but we've done some uh,
Samuel Canineu: Yeah, we have been putting a lot of resources to grow the business, not only through single invoice discounting, but also portfolio solutions as securitization and other forms of portfolio discounts. This is a growing business for us, and we see ample room for growth in the many countries that we operate. This is a common need from our clients, let's say the sell side of their accounts, short-term working capital. And yes, there is definitely focus to grow that in the short and the medium run.
Uh, We've made some progress already there. Yeah, we we haven't been putting a lot of resources to grow the business. Not only through single invoice discounting but also portfolio solutions. That cert security, security and other forms of portfolio discounts. This is a growing business for us and we see info room for growth in in, in the many countries that we operate. This is a common uh, uh, need from our clients. Uh, let's say the, the sales side of their
uh, the, the, the sales side of their, um, accounts, uh, short-term working capital, uh, and yes there is, uh, definitely, um,
Jorge Salas: Not only, I would say, I would add only not only international factoring, but also potentially in local currency as long as we don't run any FX risk, and there's some ways to hedge that. But there are some markets where the regulation favors the factoring. Yeah, I think the factoring. So we're looking into that, yes.
focus on to grow that in the in the short and the medium 1, not only in, I would say I would add only not only International factoring, but also potentially uh, in in, in, in local currency, as long as we don't, uh, run any effects rates in, there are some ways to Edge that, uh, but there are some markets where, uh, uh, the regulation favors, uh, uh, the, um,
The platform. Yeah, yeah, I think big factoring. So we're looking into that. Yes.
Annette van Hoorde: Our next question comes from Ricardo Valerino. Congratulations once again on a magnificent quarter, both ROE and the efficiency ratio at record levels. How should we see these two in the near and mid-term outlook?
Our next question comes from Hico Valerino.
Congratulations, once again on a magnificent quarter, both Roe, and the efficiency ratio at a record levels.
How should we see these two in the near and mid-term outlook?
Jorge Salas: Thank you, Ricardo. I think we tackled that question before. These are record results. They are impacted by this one-off transaction. They would have been record results anyway, even without accounting for that transaction. As far as the guidance for the year, we expect for sure to be below, I mean, better than the efficiency guidance, and for sure in the upper end of our ROE and bottom line results. As far as going forward, we depend on market rates, but the whole idea of the plan is to make, again, this bank less dependent on market rates. So we're very promising.
Thank you, uh, Ricardo. I think we, I think we tackled that question. Uh, before these are these are record results. Uh, they are impacted, but this 1 of transactions, they would have been recorded results. Anyway, uh, even without accounting for that, uh, transactions. Um, as far as the guidance,
For the year. Uh, we expect, uh, for sure, to be uh, uh below. I mean better than uh, the efficiency um, uh guidance uh, and for sure in the upper in the upper end of our uh, Roe and bottom line, uh uh results. Uh, as far as, uh, going forward will depend on, on Market rates. Uh,
But the whole idea of the plan is to make again, this Bank Less dependent on uh, Market rates. So we're very promising.
Annette van Hoorde: Okay. Thank you very much. That's all the questions we have for today. I'll pass the line back to the Bloodx team for their concluding remarks.
Jorge Salas: Well, thank you. Thank you, everybody, for the questions. Again, we see substantial potential in all of our business lines, and we look forward to having you in the next call. Thank you so much.
Okay, thank you very much. That's all the questions we have for today. I'll pass the line back to the BLOOD X team for their concluding remarks.
Annette van Hoorde: This concludes Bloodx's call. You may now disconnect and have a nice day.
Well, thank you. Thank you everybody for for uh the questions. Again, we see uh substantial potential in in all of our business lines. Uh and we look forward to having you in the next call.
Thank you so much.
This concludes Splat X call, you may now disconnect and have a nice day.
Speaker 7: Goodbye.