Q2 2026 Banco Latinoamericano de Comercio Exterior SA Earnings Call

Speaker #1: Main ladies and gentlemen, and welcome to the Blood Dex Q2 2026 earnings conference call. A slight presentation is accompanied today's webcast and is also available on the Vaster section of the company's website.

Speaker #1: 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.

Speaker #1: As a reminder, all participants will be in listen-only mode. I would now like to turn the call over to Mr. Jorge Salas, Chief Executive Officer.

Speaker #1: Sir, please go ahead.

Speaker #2: Good morning, everyone, and thank you for joining us today to discuss Viaxis results for the second quarter of 2026. I will begin with a key highlight for the quarter, and then Annette, our CFO, will walk you through the financials in more detail.

Speaker #2: After that, I will come back and provide a quick update on our strategic execution, our view of the macro environment, and our outlook for the rest of the year.

Speaker #2: Finally, we will open the call for questions. Let me start with the headline: we are thrilled with our performance this quarter. Not only because we reached record levels across several areas of the business, but more importantly, because we're starting to see the strategy we share with you all at our investor day translate into tangible results.

Speaker #2: Good morning, ladies and gentlemen, and welcome to the BLADEX Q2 2026 earnings conference call. A live presentation is accompanying today's webcast and is also available in the Investor section of the company's website, www.bladex.com.

Operator 2: Good morning, ladies and gentlemen, and welcome to the Bladex Q2 2026 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.bladex.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 listen-only mode. I would now like to turn the call over to Mr. Jorge Salas, Chief Executive Officer. Sir, please go ahead.

Operator: Good morning, ladies and gentlemen, and welcome to the Bladex Q2 2026 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.bladex.com.

Speaker #2: We delivered strong commercial execution, further strengthened our funding base, and continue to broaden our revenue mix just like we anticipated. The commercial portfolio reached a record of 13 billion dollars, up 8% from March, 20% year over year, and 17% since year-end.

Operator: 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 listen-only mode. I would now like to turn the call over to Mr. Jorge Salas, Chief Executive Officer. Sir, please go ahead.

Speaker #2: There will be an opportunity for you to ask questions at the end of today's presentation. Please note that today's conference call is being recorded. As a reminder, all participants will be in listen-only mode.

Speaker #2: Both loans and contingencies also closed at new heights. This is exactly the kind of disciplined capital deployment we had in mind when we completed the 81 issuance last year.

Jorge L. Salas Taurel: Good morning, everyone, and thank you for joining us today to discuss Bladex's results for the Q2 2026. I will begin with the key highlights for the quarter, and then Annette, our CFO, will walk you through the financials in more detail. After that, I will come back and provide a quick update on our strategic execution, our view of the macro environment, and our outlook for the rest of the year. Finally, we will open the call for questions. Let me start with the headline. We are thrilled with our performance this quarter. Not only because we reached record levels across several areas of the business, but more importantly, because we're starting to see the strategy we share with you all at our Investor Day translate into tangible results.

Jorge Salas: Good morning, everyone, and thank you for joining us today to discuss Bladex's results for the Q2 2026. I will begin with the key highlights for the quarter, and then Annette, our CFO, will walk you through the financials in more detail. After that, I will come back and provide a quick update on our strategic execution, our view of the macro environment, and our outlook for the rest of the year.

Speaker #2: We're putting the capital work to support. Growth while maintaining a strong capital position. On the funding side, deposits reached a record of 7.9 billion dollars, 8% sequentially, and 20% since December.

Good morning, everyone, and thank you for joining us today to discuss BLADEx's results for the second quarter of 2026.

Jorge Salas: Finally, we will open the call for questions. Let me start with the headline. We are thrilled with our performance this quarter. Not only because we reached record levels across several areas of the business, but more importantly, because we're starting to see the strategy we share with you all at our Investor Day translate into tangible results.

Speaker #2: Funding kept pace with the expansion of the commercial portfolio and our diversified deposit base continues to provide a solid foundation for balance sheet growth.

I will begin with a key highlight for the quarter. And then Annette our CFO will walk you through the financials in more detail. After that, I will come back and provide a quick update on our strategic execution. Our view of the macro environment and our outlook for the rest of the year.

Finally, we will open the call for questions.

Let me start with the headline.

Speaker #2: Turning to revenues, net interest income reached another new high, increasing 4% for the first quarter, supported by higher average loan balances and disciplined balance sheet management.

Jorge L. Salas Taurel: We delivered strong commercial execution, further strengthened our funding base, and continued to broaden our revenue mix just like we anticipated. The commercial portfolio reached a record of $13 billion, up 8% from March, 20% year over year, and 17% since year end. Both loan and contingencies also closed at new heights. This is exactly the kind of disciplined capital deployment we had in mind when we completed the AT1 issuance last year. We're putting the capital work to support growth while maintaining a strong capital position. On the funding side, deposits reached a record of $7.9 billion, 8% sequentially and 20% since December. Funding kept pace with the expansion of the commercial portfolio, and our diversified deposit base continues to provide a solid foundation for balance sheet growth.

Jorge Salas: We delivered strong commercial execution, further strengthened our funding base, and continued to broaden our revenue mix just like we anticipated. The commercial portfolio reached a record of $13 billion, up 8% from March, 20% year over year, and 17% since year end. Both loan and contingencies also closed at new heights.

We are thrilled with our performance this quarter, not only because we reached record levels across several areas of the business, but more importantly because we're starting to see this strategy we shared with you all at our Investor Day translate into tangible results.

Speaker #2: At the same time, margins remain under pressure. Net interest margin declined by 10 basis points to 224%, mainly reflecting higher average liquidity and continued competitive pressures on spreads.

We delivered, strong commercial execution further, strengthened our funding base and continue to broaden our Revenue mix. Just like we anticipated

Speaker #2: This remains consistent with the environment we discussed during the first quarter call. Non-interest income is perhaps the biggest highlight of the quarter. It is also a fundamental part of the strategy presented at the investor day.

The commercial portfolio reached a record of $13 billion, up 8% from March, 20% year-over-year, and 17% year-end.

Jorge Salas: This is exactly the kind of disciplined capital deployment we had in mind when we completed the AT1 issuance last year. We're putting the capital work to support growth while maintaining a strong capital position. On the funding side, deposits reached a record of $7.9 billion, 8% sequentially and 20% since December. Funding kept pace with the expansion of the commercial portfolio, and our diversified deposit base continues to provide a solid foundation for balance sheet growth.

Contingencies also closed at new highs.

This is exactly the kind of disciplined capital deployment we had in mind when we completed the 181 issuance last year.

Speaker #2: The focus is to diversify the bank's revenue base which is particularly important when there is margin compression. This focus is clearly turning into visible results.

We're putting the capital work to support growth while maintaining a strong Capital position.

Speaker #2: Non-interest income reached a record of 25 million dollars for the quarter, up 86% from the first quarter, and represented 26% of total revenues in the quarter.

On the funding side, deposits reached a record of $7.9 billion, up 8% sequentially and 20% since December.

Jorge L. Salas Taurel: Turning to revenues, net interest income reached another new high, increasing 4% for Q1, supported by higher average loan balances and disciplined balance sheet management. At the same time, margins remained under pressure. Net interest margin declined by ten basis points to 2.24%, mainly reflecting higher average liquidity and continued competitive pressures on spreads. This remains consistent with the environment we discussed during the Q1 call. Non-interest income is perhaps the biggest highlight of the quarter. It is also a fundamental part of the strategy presented at the Investor Day. The focus is to diversify the bank's revenue base, which is particularly important when there is margin compression. This focus is clearly turning into visible results. Non-interest income reached a record of $25 million for the quarter, up 86% from Q1, and represented 26% of total revenues in the quarter.

Jorge Salas: Turning to revenues, net interest income reached another new high, increasing 4% for Q1, supported by higher average loan balances and disciplined balance sheet management. At the same time, margins remained under pressure. Net interest margin declined by ten basis points to 2.24%, mainly reflecting higher average liquidity and continued competitive pressures on spreads. This remains consistent with the environment we discussed during the Q1 call. Non-interest income is perhaps the biggest highlight of the quarter. It is also a fundamental part of the strategy presented at the Investor Day. The focus is to diversify the bank's revenue base, which is particularly important when there is margin compression. This focus is clearly turning into visible results. Non-interest income reached a record of $25 million for the quarter, up 86% from Q1, and represented 26% of total revenues in the quarter.

Funding kept pace with the expansion of the commercial portfolio in our Diversified deposit base continues to provide a solid foundation for balance sheet growth.

Speaker #2: This is meaningful progress in making our earnings less dependent on interest margins. Just a few years ago, non-interest income over total income was close to 15%.

Turning to revenues net interest income reached another new high, increasing 4% for the first quarter supported by higher average, loan balances, and discipline, balance sheet management.

Speaker #2: Our loan syndications team had one of the best quarters ever, and the client derivative business is also starting to gain traction in line with plans.

At the same time, margins remained under pressure.

Speaker #2: The pilot transactions continue to perform well, and our primarily linked to structured transactions of our clients. Annette will take you through the composition of non-interest income and the activity in this businesses in more detail in a few minutes.

Net interest margin declined by 10 basis points to 2.24%, mainly reflecting higher average liquidity and continued competitive pressures on spreads.

This remains consistent with the environment we discussed during the first quarter call.

Speaker #2: Expenses on the other hand increase as expected and we as we continue to execute our strategic initiatives. Revenues, however, grew faster than costs as a result, efficiency improved meaningfully, to 24.1% for the quarter.

Non-interest income is perhaps the biggest highlight of the quarter. It is also a fundamental part of the strategy presented to investors today.

The focus is to diversify the bank's rebates, which is particularly important when there's margin compression.

Speaker #2: Now, as we have said before, we do expect expenses to increase in the second half of the year, as we continue to execute the investment plan contemplated for 2026.

This focus is clearly turning into visible results.

Speaker #2: Provisions also increased during the quarter. Mainly as a result of the strong portfolio growth and our prudent approach to risk management. Overall, as the quality remains sound.

Jorge L. Salas Taurel: This is meaningful progress in making our earnings less dependent on interest margins. Just a few years ago, non-interest income over total income was close to 15%. Our loan syndications team had one of the best quarters ever, and the client derivative business is also starting to gain traction in line with plan. The pilot transactions continue to perform well and are primarily linked to structured transactions of our clients. Annette will take you through the composition of non-interest income and the activity in these businesses in more detail in a few minutes. Expenses, on the other hand, increased as expected and as we continue to execute our strategic initiatives. Revenues, however, grew faster than costs. As a result, efficiency improved meaningfully to 24.1% for the quarter.

Jorge Salas: This is meaningful progress in making our earnings less dependent on interest margins. Just a few years ago, non-interest income over total income was close to 15%. Our loan syndications team had one of the best quarters ever, and the client derivative business is also starting to gain traction in line with plan. The pilot transactions continue to perform well and are primarily linked to structured transactions of our clients. Annette will take you through the composition of non-interest income and the activity in these businesses in more detail in a few minutes. Expenses, on the other hand, increased as expected and as we continue to execute our strategic initiatives. Revenues, however, grew faster than costs. As a result, efficiency improved meaningfully to 24.1% for the quarter.

Non-interest income reached a record of 25.4 million for the quarter up, 86% from the first quarter and represented 26% of total revenues in the quarter.

This is meaningful progress in making our earnings less dependent on interest margins.

Speaker #2: Finally, net income reached a record of 66.5 million dollars, up 18% from the first quarter, which translate into our return on equity of 16.4%.

Just a few years ago, none interesting. Come over to total. Income was close to 15%.

Of the best quarters ever.

Speaker #2: Our Tier 1 capital ratio closed the quarter at 16.6%, still comfortably above our target and providing capacity to continue supporting disciplined growth. This was an all-around excellent quarter.

And the client derivative business is also starting to gain Traction in line with plan.

The pilot transactions continue to perform well and are primarily linked to structured transactions of our clients.

Speaker #2: We put capital to work, broadened our revenue base, and improved profitability and efficiency, despite continued pressure on margins. With that overview, let me now hand it over to Annette for a more detailed review of the financial results.

Annette will take you through the composition of non-interest income in the activity, in these businesses, in more detail in a few minutes.

Expenses, on the other hand, increased as expected, and we continue to execute our strategic initiatives.

Speaker #2: Annette, your turn.

Speaker #3: Thank you, Jorge, and good morning, everyone. The second quarter was another strong period for Vladex, with several key balance sheet and revenue metrics reaching new highs.

Jorge L. Salas Taurel: Now, as we have said before, we do expect expenses to increase in H2 of the year as we continue to execute the investment plan contemplated for 2026. Provisions also increased during the quarter, mainly as a result of the strong portfolio growth and our prudent approach to risk management. Overall, asset quality remains sound. Finally, net income reached a record of $66.5 million, up 18% from Q1, which translates into a return on equity of 16.4%. Our Tier 1 capital ratio closed the quarter at 16.6%, comfortably above our target and providing capacity to continue supporting disciplined growth. This was an all-around excellent quarter. We put capital to work, broadened our revenue base, and improved profitability and efficiency despite continued pressure on margins. With that overview, let me now hand it over to Annette for a more detailed review of the financial results.

Jorge Salas: Now, as we have said before, we do expect expenses to increase in H2 of the year as we continue to execute the investment plan contemplated for 2026. Provisions also increased during the quarter, mainly as a result of the strong portfolio growth and our prudent approach to risk management. Overall, asset quality remains sound. Finally, net income reached a record of $66.5 million, up 18% from Q1, which translates into a return on equity of 16.4%. Our Tier 1 capital ratio closed the quarter at 16.6%, comfortably above our target and providing capacity to continue supporting disciplined growth. This was an all-around excellent quarter. We put capital to work, broadened our revenue base, and improved profitability and efficiency despite continued pressure on margins. With that overview, let me now hand it over to Annette for a more detailed review of the financial results. Annette, your turn.

Speaker #3: Commercial activity and deposits continue to spend, net interest income increased, and fee generation was particularly strong. While asset quality and capital remain sound. Turning to our financial 66.5 million, up 18% from the first quarter.

Revenues, however, grew faster than costs. As a result, efficiency improved meaningfully to 24.1% for the quarter. Now, as we have said before, we do expect expenses to increase in the second half of the year, as we continue to execute the investment plan contemplated for—

Provisions also increased during the quarter, mainly as a result of the strong portfolio growth and our prudent approach to risk management.

Overall, the quality remains sound.

Speaker #3: Return on average assets was 2%, while adjusted return on equity improved to 16.4. For the first half of the year, net income total 122.8 million, resulting in a return on average assets of 1.9% and an adjusted return on equity of 15.3%.

Finally, net income, reached a record of 66.5 million up 18% from the first quarter, which translates into a return on Equity of 16.4%.

Our Tier 1 Capital ratio closed the quarter at 16.6%.

Speaker #3: Given the transactional nature of a structuring revenues, the quarterly contribution of non-interest income would naturally vary. Even so, based on our first half performance and expectations for the remainder of the year, we are reaffirming our full year adjusted ROE guidance of 14% to 15%.

Comfortably above our targets and providing capacity to continue supporting discipline growth.

This was an all-around excellent quarter.

We put Capital to work, broaden our Revenue base and improve profitability and efficiency. Despite continued pressure on margins.

Jorge L. Salas Taurel: Annette, your turn.

Speaker #3: Let me now walk you through the key drivers behind. These results beginning with the commercial portfolio. The commercial portfolio ended the quarter at 13 billion, up 8% from the first quarter and 20% year over year.

[Company Representative] (Bladex): Thank you, Jorge, and good morning, everyone. The Q2 was another strong period for Bladex, with several key balance sheet and revenue metrics reaching new highs. Commercial activity and deposits continued to expand, net interest income increased, and fee generation was particularly strong, while asset quality and capital remained sound. Turning to our financial performance, net income reached $66.5 million, up 18% from the Q1. Return on average assets was 2%, while adjusted return on equity improved to 16.4. For the H1 of the year, net income totaled $122.8 million, resulting in a return on average assets of 1.9% and an adjusted return on equity of 15.3%. Given the transactional nature of restructuring revenues, the quarterly contribution of non-interest income would naturally vary.

Annette van Hoorde: Thank you, Jorge, and good morning, everyone. The Q2 was another strong period for Bladex, with several key balance sheet and revenue metrics reaching new highs. Commercial activity and deposits continued to expand, net interest income increased, and fee generation was particularly strong, while asset quality and capital remained sound. Turning to our financial performance, net income reached $66.5 million, up 18% from the Q1. Return on average assets was 2%, while adjusted return on equity improved to 16.4. For the H1 of the year, net income totaled $122.8 million, resulting in a return on average assets of 1.9% and an adjusted return on equity of 15.3%. Given the transactional nature of restructuring revenues, the quarterly contribution of non-interest income would naturally vary.

With that overview, let me hand it over to Annette for a detailed review of the financial results. Annette, your turn.

Thank you, Jorge, and good morning, everyone. The second quarter was another strong period for Bladex, with several key balance sheet and revenue metrics reaching new highs.

Speaker #3: Growth was broad-based across loan and contingencies, reflecting continued execution across our core markets. Loan increased to 10.5 billion, up 8% from the first quarter and 22% year over year, while contingencies reached 2.3 billion, increasing 11% from the first quarter and 5% year over year.

Commercial activity and deposits continue to expand. Net interest income increased, and Q3 generation was particularly strong, while asset quality and capital remain sound.

Speaker #3: Importantly, average loan balances increased steadily throughout the quarter, providing the primary support for higher net interest income despite continued pressure on lending spreads. Commercial activity remained healthy across both trade finance and medium-term lending.

Turning to our financial performance, net income rates 66.5 million of 10% from the first quarter return on average assets was 2% while I looked at return on Equity improved to 16.4.

For the first half of the year, we made income totaling $122.8 million, resulting in a return on average assets of 1.9% and an adjusted return on equity of 15.3%.

Speaker #3: This quarter's strong growth was driven by a strategic industries and high-quality client relationships that support sustainable net interest income generation rather than by pursuing volume for its own sake.

[Company Representative] (Bladex): Even so, based on our H1 performance and expectations for the remainder of the year, we are reaffirming our full-year adjusted ROE guidance of 14% to 15%. Let me now walk you through the key drivers behind these results, beginning with the commercial portfolio. The commercial portfolio ended the Q2 at $13 billion, up 8% from the Q1 and 20% year over year. Growth was broad-based across loan and contingencies, reflecting continued execution across our core markets. Loan increased to $10.5 billion, up 8% from the Q1 and 22% year over year, while contingencies reached $2.3 billion, increasing 11% from the Q1 and 5% year over year. Importantly, average loan balances increased steadily throughout the Q2, providing the primary support for higher net interest income despite continued pressure on lending spreads. Commercial activity remained healthy across both trade finance and medium-term lending.

Annette van Hoorde: Even so, based on our H1 performance and expectations for the remainder of the year, we are reaffirming our full-year adjusted ROE guidance of 14% to 15%. Let me now walk you through the key drivers behind these results, beginning with the commercial portfolio. The commercial portfolio ended the Q2 at $13 billion, up 8% from the Q1 and 20% year over year. Growth was broad-based across loan and contingencies, reflecting continued execution across our core markets. Loan increased to $10.5 billion, up 8% from the Q1 and 22% year over year, while contingencies reached $2.3 billion, increasing 11% from the Q1 and 5% year over year. Importantly, average loan balances increased steadily throughout the Q2, providing the primary support for higher net interest income despite continued pressure on lending spreads. Commercial activity remained healthy across both trade finance and medium-term lending.

Given the transactional nature of a structuring revenues, the quarterly contribution of non-interest income would naturally vary.

Speaker #3: We also continue to originate medium-term transaction with attractive risk-adjusted returns, supporting a more balanced asset means and enhancing the quality of earnings over time.

Even So based on our first half performance and expectations for the remainder of the year, we are reaffirming our full year adjusted Arrow. Guidance of 14% to 15%

Speaker #3: At the same time, strong trade-related activity preserved the portfolio predominantly short-dated profile, with approximately 65% of the portfolio scheduled to mature within the next 12 months.

Let me now walk you through the key drivers behind this result in the commercial portfolio.

The commercial portfolio and the decoder at 13 billion of 8% from the first quarter and 20% year-over-year.

Speaker #3: Looking ahead, we expect portfolio growth to continue at a steady and disciplined pace, consistent with our long-term strategy. Quarter over quarter growth was led by Panama and Argentina, with additional contribution from Dominican Republic, Peru, and Brazil.

Growth was brought this across loan and contingencies, reflecting continued execution across our core markets.

Loan increased to 10.5 billion of 8% from the first quarter and 22% year-over-year while contingencies reached 2.3 billion increasing 11% from the first quarter and 5% year-over-year.

Speaker #3: The portfolio remained well-diversified across countries and industries, no single country accounted for more than 14% of total exposure. Financial institutions represented 27% of the portfolio, while corporate exposures continue to reflect the diversity of regional trade flows.

Important average loan balances increase, his steadily throughout the quarter, providing the primary support for higher net interest income despite continued pressure on lending spreads.

[Company Representative] (Bladex): This Q2's strong growth was driven by strategic industries and high-quality client relationships that support sustainable net interest income generation rather than by pursuing volume for its own sake. We also continue to originate medium-term transactions at attractive risk-adjusted returns, supporting a more balanced asset mix and enhancing the quality of earnings over time. At the same time, strong trade-related activity preserved the portfolio predominantly short-dated profile, with approximately 65% of the portfolio scheduled to mature within the next 12 months. Looking ahead, we expect portfolio growth to continue at a steady and disciplined pace, consistent with our long-term strategy. Quarter-over-quarter growth was led by Panama and Argentina, with additional contribution from Dominican Republic, Peru, and Brazil. The portfolio remained well-diversified across countries and industries. No single country accounted for more than 14% of total exposure.

Annette van Hoorde: This Q2's strong growth was driven by strategic industries and high-quality client relationships that support sustainable net interest income generation rather than by pursuing volume for its own sake. We also continue to originate medium-term transactions at attractive risk-adjusted returns, supporting a more balanced asset mix and enhancing the quality of earnings over time. At the same time, strong trade-related activity preserved the portfolio predominantly short-dated profile, with approximately 65% of the portfolio scheduled to mature within the next 12 months. Looking ahead, we expect portfolio growth to continue at a steady and disciplined pace, consistent with our long-term strategy. Quarter-over-quarter growth was led by Panama and Argentina, with additional contribution from Dominican Republic, Peru, and Brazil. The portfolio remained well-diversified across countries and industries. No single country accounted for more than 14% of total exposure.

Commercial activity, remain healthy, across both Freight, finance and medium-term lending.

Speaker #3: The commercial bond portfolio remained broadly stable at 226 million, given current market conditions we continue to prioritize lending opportunities over incremental investment purchases. This quarter demonstrates our ability to grow the portfolio while maintaining discipline underwriting, broad diversification, and prudent capital deployment.

These quarters. Strong growth was driven by a strategic industry and high quality client relationships. That support sustainable net interest income generation, rather than by pursuing volume for its own sake.

We also continue to originate mid-term transactions.

Attractive risk adjusted returns supporting a more balanced asset means and enhancing the quality of earnings over time.

Speaker #3: Turning now to liquidity and the treasury investment portfolio. At quarter end, liquidity assets total approximately 1.9 billion, representing 13.3% of total assets, and remaining well within regulatory requirements and our risk appetite.

At the same time, strong trade-related activity was preserved, with a portfolio of predominantly short-dated profile, approximately 65% of the portfolio scheduled to mature within the next 12 months.

Speaker #3: Our liquidity profile remains conservative, a significant portion is held at deferral reserve Bank of New York with the remainder primarily placed with high-quality financial institutions and multilateral organizations.

Our long-term strategy.

Quarter-over-quarter growth was led by Panama and Argentina, with additional contribution from the Dominican Republic, Peru, and Brazil.

Speaker #3: The treasury investment portfolio total 1.4 billion at quarter end, it remains highly investment-grade short in duration and broadly diversified outside Latin America. In addition to providing credit diversification, the portfolio serves as a source of contingent liquidity, as these securities are eligible to be placed through our New York agency at deferral reserve discount window.

The portfolio remained well Diversified across countries and industries.

[Company Representative] (Bladex): Financial institutions represented 27% of the portfolio, while corporate exposures continue to reflect the diversity of regional trade flows. The commercial bond portfolio remained broadly stable at $226 million. Given current market conditions, we continue to prioritize lending opportunities over incremental investment purchases. This Q2 demonstrates our ability to grow the portfolio while maintaining disciplined underwriting, broad diversification, and prudent capital deployment. Turning now to liquidity and the treasury investment portfolio. At Q2 end, liquidity assets total approximately $1.9 billion, representing 13.3% of total assets and remaining well within regulatory requirements and our risk appetite. Our liquidity profile remains conservative. A significant portion is held at the Federal Reserve Bank of New York, with the remainder primarily placed with high-quality financial institutions and multilateral organizations. The treasury investment portfolio totaled $1.4 billion at Q2 end. It remains highly investment-grade, short in duration, and broadly diversified outside Latin America.

Annette van Hoorde: Financial institutions represented 27% of the portfolio, while corporate exposures continue to reflect the diversity of regional trade flows. The commercial bond portfolio remained broadly stable at $226 million. Given current market conditions, we continue to prioritize lending opportunities over incremental investment purchases. This Q2 demonstrates our ability to grow the portfolio while maintaining disciplined underwriting, broad diversification, and prudent capital deployment. Turning now to liquidity and the treasury investment portfolio. At Q2 end, liquidity assets total approximately $1.9 billion, representing 13.3% of total assets and remaining well within regulatory requirements and our risk appetite. Our liquidity profile remains conservative. A significant portion is held at the Federal Reserve Bank of New York, with the remainder primarily placed with high-quality financial institutions and multilateral organizations. The treasury investment portfolio totaled $1.4 billion at Q2 end. It remains highly investment-grade, short in duration, and broadly diversified outside Latin America.

Accounted for more than 14% of total exposure.

Financial institutions represented 27% of the portfolio. While corporate exposures continue to reflect diversity of regional trade flows.

Speaker #3: Turning now to asset quality. Overall, credit quality remains sound, supported by discipline underwriting, broad portfolio diversification, and proactive credit risk management. At quarter end, 98.4% of total credit exposure, or 14.2 billion, remained in stage one.

The commercial Bond portfolio. Remained broadly stable at 226 million given current market conditions. We continue to prioritize lending opportunities over incremental investment purchases.

This quarter demonstrates, our ability to grow the portfolio, containing discipline on the writing.

But simplification and prudent capital deployment.

Turning now to liquidity and the Treasury Investment Portfolio.

Speaker #3: Stage two exposures declined to 1.1%, or 162 million, reflecting credit improvements repayments maturities and the migration of a previously identified exposure to stage three.

At quarter end, liquidity assets totaled approximately $1.9 billion, representing 13.3% of total assets and remaining well within regulatory requirements and our risk appetite.

Speaker #3: Stage three exposure increased to 0.5%, or 75 million, primarily reflecting the migration of that exposure, which had been under enhanced monitoring. As part of our proactive risk management approach, we reduced the overall exposure by selling the bilateral loan component.

Liquidity profile remains conservative. A significant portion is held at the Federal Reserve Bank of New York with the remainder. Primarily placed with high quality institutions and multilateral organizations.

Speaker #3: The remaining deferred payment letter of credit exposure was reclassified to stage three and remains prudently reserved. Importantly, this migration was limited to a single exposure and does not reflect a broader deterioration in the portfolio.

[Company Representative] (Bladex): In addition to providing credit diversification, the portfolio serves as a source of contingent liquidity as these securities are eligible to be pledged through our New York agency at the Federal Reserve discount window. Turning now to asset quality. Overall credit quality remains sound, supported by disciplined underwriting, broad portfolio diversification, and proactive credit risk management. At quarter end, 98.4% of total credit exposure, or $14.2 billion, remained in Stage 1. Stage 2 exposures declined to 1.1%, or $162 million, reflecting credit improvements, repayments, maturities, and the migration of our previously identified exposure to Stage 3. Stage 3 exposure increased to 0.5%, or $75 million, primarily reflecting the migration of that exposure which had been under enhanced monitoring. As part of our proactive risk management approach, we reduced the overall exposure by selling the bilateral loan component.

Annette van Hoorde: In addition to providing credit diversification, the portfolio serves as a source of contingent liquidity as these securities are eligible to be pledged through our New York agency at the Federal Reserve discount window. Turning now to asset quality. Overall credit quality remains sound, supported by disciplined underwriting, broad portfolio diversification, and proactive credit risk management. At quarter end, 98.4% of total credit exposure, or $14.2 billion, remained in Stage 1. Stage 2 exposures declined to 1.1%, or $162 million, reflecting credit improvements, repayments, maturities, and the migration of our previously identified exposure to Stage 3. Stage 3 exposure increased to 0.5%, or $75 million, primarily reflecting the migration of that exposure which had been under enhanced monitoring. As part of our proactive risk management approach, we reduced the overall exposure by selling the bilateral loan component.

The pressure investment portfolio totaled $1.4 billion at quarter-end. It remains highly investment grade, short in duration, and broadly diversified outside Latin America.

In addition to providing credit diversification, the portfolio serves as a source of contingent liquidity, as these securities are eligible to be placed through our New York agency at the Federal Reserve discount window.

Speaker #3: Provisioning expense total 8.6 million, compared with 4.7 million in the first quarter, a stage one provisioning accounted for 6.4 million, primarily reflecting continued portfolio growth.

During now to asset quality.

Overall, credit quality remains sound, supported by disciplined underwriting, broad portfolio diversification, and proactive credit risk management.

Speaker #3: The remaining provision expense was largely associated with the specific exposure discussed earlier. As a result, cost of risk was 26 basis points compared with 14 basis points in the previous quarter.

At quarter-end, $988.4 million of total credit exposure, or $14.2 billion, remain in stage 1.

Speaker #3: The quarter also included 8.6 million in write-off related to two fully reserved commercial loans, because these write-offs were charged against existing allowances they had no additional impact on second quarter results.

Stage 2 exposures declined to 1.1%, or $162 million, reflecting credit improvements, repayments, maturities, and the migration of a previously identified exposure to Stage 3.

Speaker #3: We also recorded 1.1 million in recoveries, from previously written off loans. As a result, total reserve ended the quarter at 93.8 million, providing 1.25-time coverage of impaired credits.

Stage 3 exposure increased to 0.5%, or $75 million, primarily reflecting the migration of that extra, which has been under 10.

[Company Representative] (Bladex): The remaining deferred payment letter of credit exposure was reclassified to Stage 3 and remains currently reserved. Importantly, this migration was limited to a single exposure and does not reflect a broader deterioration in the portfolio. Provisioning expense totaled $8.6 million, compared with $4.7 million in Q1. Stage 1 provisioning accounted for $6.4 million, primarily reflecting continued portfolio growth. The remaining provision expense was largely associated with the specific exposure discussed earlier. As a result, cost of risk was 26 basis points, compared with 14 basis points in the previous quarter. The quarter also included $8.6 million in write-offs related to two fully reserved commercial loans. Because these write-offs were charged against existing allowances, they had no additional impact on Q2 results. We also recorded $1.6 million in recoveries from previously written-off loans.

Annette van Hoorde: The remaining deferred payment letter of credit exposure was reclassified to Stage 3 and remains currently reserved. Importantly, this migration was limited to a single exposure and does not reflect a broader deterioration in the portfolio. Provisioning expense totaled $8.6 million, compared with $4.7 million in Q1. Stage 1 provisioning accounted for $6.4 million, primarily reflecting continued portfolio growth. The remaining provision expense was largely associated with the specific exposure discussed earlier. As a result, cost of risk was 26 basis points, compared with 14 basis points in the previous quarter. The quarter also included $8.6 million in write-offs related to two fully reserved commercial loans. Because these write-offs were charged against existing allowances, they had no additional impact on Q2 results. We also recorded $1.6 million in recoveries from previously written-off loans.

As part of our proactive risk management approach, we reduce the overall exposure by selling the bilateral loan component.

Speaker #3: This actions reflect our proactive approach to credit risk management, identifying potential deterioration early, actively reducing exposure when appropriate and maintaining prudent reserve levels. Together with discipline underwriting and a well-diversified portfolio, they continue to support a sound asset quality profile.

The remaining deferred payment letter of credit. Exposure was reclassified to State Street and remains currently reserved.

Importantly, this migration was limited to a single borrower and does not reflect a broader deterioration in the portfolio.

Provisioning expense totaled $8.6 million compared with $4.7 million in the first quarter.

Speaker #3: Turning now to funding. Deposits remain one of the quarter's key strengths and continue to serve as a central pillar of our funding strategy. Deposit risk and new high of 7.9 billion at quarter end, increasing 8% from the first quarter and representing approximately 64% of total funding.

Stage 1 provisioning accounted for $6.4 million, primarily reflecting continued full-year growth.

The remaining provision expense was largely associated with the specific exposure discussed earlier.

As a result, cost of risk was 26 basis points, compared with 14 basis points in the previous quarter.

Speaker #3: Our deposit base remains well-diversified, central bank and class Asia holders accounted for 34% of deposits, while financial institutions represented 27%, corporations 23%, brokers 15%, and multilateral institutions 1%.

The quarter also included $8.6 million in write-offs related to two fully reserved commercial loans.

Because these write-offs were charged against existing allowances, they had no additional impact on second quarter results.

[Company Representative] (Bladex): As a result, total reserves ended the quarter at $93.8 million, providing 1.25 times coverage of impaired credits. These actions reflect our proactive approach to credit risk management, identifying potential deterioration early, actively reducing exposure when appropriate, and maintaining prudent reserve levels. Together with disciplined underwriting and a well-diversified portfolio, they continue to support a sound asset quality profile. Turning now to funding. Deposits remain one of the quarter's key strengths and continue to serve as a central pillar of our funding strategy. Deposits reached a new high of $7.9 billion at quarter end, increasing 8% from Q1 and representing approximately 64% of total funding. Our deposit base remains well-diversified. Central bank and Class A shareholders accounted for 34% of deposits, while financial institutions represented 23%, brokers 15%, and multilateral institutions 1%. Yankee CD balances also reached a new high, ending the quarter at nearly $2 billion.

Annette van Hoorde: As a result, total reserves ended the quarter at $93.8 million, providing 1.25 times coverage of impaired credits. These actions reflect our proactive approach to credit risk management, identifying potential deterioration early, actively reducing exposure when appropriate, and maintaining prudent reserve levels. Together with disciplined underwriting and a well-diversified portfolio, they continue to support a sound asset quality profile. Turning now to funding. Deposits remain one of the quarter's key strengths and continue to serve as a central pillar of our funding strategy. Deposits reached a new high of $7.9 billion at quarter end, increasing 8% from Q1 and representing approximately 64% of total funding. Our deposit base remains well-diversified. Central bank and Class A shareholders accounted for 34% of deposits, while financial institutions represented 23%, brokers 15%, and multilateral institutions 1%. Yankee CD balances also reached a new high, ending the quarter at nearly $2 billion.

We also recorded $1.1 million in recoveries from amounts previously written off.

Speaker #3: Jackie CD balances also reach a new high, ending the quarter at nearly 2 billion. Continued demand reflects the strength of our distribution platform across the Americas, Europe, and Asia.

As a result, total reserve ended the quarter at $93.8 million, providing 1.25 times coverage of impaired credits.

Speaker #3: During the quarter, we also introduced Green Jackie CDs with proceeds allocated to eligible green assets originated by our commercial team. This initiative further broadened our investor base while expanding our sustainable funding alternatives.

These actions reflect our proactive approach to credit risk management, identifying potential deterioration early, actively reducing exposure when appropriate, and maintaining proven reserve levels.

Speaker #3: Beyond deposits, we continue to selectively evaluate medium-term funding opportunities that enhance diversification, extend funding duration, and improve overall funding efficiency. Let me now turn to capital.

Together with discipline in the writing and a well-diversified portfolio, they continue to support a sound, test-quality profile.

turning now to funding,

Deposits remain one of the quarters, he says, and continue to serve as a central pillar of our funding strategy.

Speaker #3: The Basel III Tier I ratio ended the quarter at 16.6%, compared with 17.9% in the first quarter, and remains above our 15 to 16% operating range.

$9 billion at quarter-end, increasing 8% from the first quarter and representing approximately 64% of total funding.

Our means well Diversified.

Speaker #3: The regulatory capital adequacy ratio under Panama's framework stood at 14.3%, well above the regulatory minimum. The movement in Tier I reflects the continued deployment of capital to support commercial portfolio growth, particularly in medium-term transactions.

Central Bank and class as shareholders accounted for 34% of the profits while financial institutions represented 20%

23% brokers, 15% banks, and multilateral institutions 1%.

Speaker #3: This is consistent with the strategy we outlined following the 81 issuance and with our expectations that capital ratios would gradually move toward our operating range as we put the capital to work.

[Company Representative] (Bladex): Continued demand reflects the strength of our distribution platform across the Americas, Europe, and Asia. During the quarter, we also introduced Green Yankee CDs, with proceeds allocated to eligible green assets originated by our commercial team. This initiative further broadened our investor base while expanding our sustainable funding alternatives. Beyond deposits, we continue to selectively evaluate medium-term funding opportunities that enhance diversification, extend funding duration, and improve overall funding efficiency. Let me now turn to capital. The Basel III Tier 1 ratio ended the quarter at 16.6%, compared with 17.9% in Q1, and remains above our 15% to 16% operating range. The regulatory capital adequacy ratio under Panama's framework stood at 14.3%, well above the regulatory minimum. The movement in Tier 1 reflects the continued deployment of capital to support commercial portfolio growth, particularly in medium-term transactions.

Annette van Hoorde: Continued demand reflects the strength of our distribution platform across the Americas, Europe, and Asia. During the quarter, we also introduced Green Yankee CDs, with proceeds allocated to eligible green assets originated by our commercial team. This initiative further broadened our investor base while expanding our sustainable funding alternatives. Beyond deposits, we continue to selectively evaluate medium-term funding opportunities that enhance diversification, extend funding duration, and improve overall funding efficiency. Let me now turn to capital. The Basel III Tier 1 ratio ended the quarter at 16.6%, compared with 17.9% in Q1, and remains above our 15% to 16% operating range. The regulatory capital adequacy ratio under Panama's framework stood at 14.3%, well above the regulatory minimum. The movement in Tier 1 reflects the continued deployment of capital to support commercial portfolio growth, particularly in medium-term transactions.

January balances also reached a new high, ending the quarter at nearly $2 billion.

Continued demand reflect the strength of our distribution platform across the America, Europe and Asia.

Speaker #3: Our capital base continued to provide ample capacity to support future growth, absorb potential volatility, and maintain the financial flexibility expected by our stakeholders. Moving now to net interest income and margins.

During the quarter, we also introduced green Yankee cities. With proceeds allocated to legible green assets originated by our commercial team.

This initiative further broadens our investor base while expanding our sustainable funding alternatives.

Speaker #3: Net interest income increased to 73.3 million, up 4% from the first quarter. Higher average loan balances more than offset tighter lending spreads, allowing net interest income to grow despite continued pressure on margins.

Beyond deposits. We continue to selectively evaluate medium-term funding opportunities, that enhance the reservation and funding duration and improve overall, funding efficiency.

Let me now turn to Capital.

Speaker #3: Net interest margin was 2.24% during the quarter, down 10 basis points from the first quarter, while net interest spread declined to 1.64. The decline in name primarily reflects higher average liquidity and continued competitive pressure on short-term lending spreads, as abundant regional liquidity and strong demand for high-quality assets continue to affect pricing.

The Basel III Tier 1 ratio ended the quarter at 16.6%, compared with 17.9% in the first quarter, and remains above our 15% to 16% operating range.

The regulatory capital adequacy ratio under Panama's framework stood at 14.3%, well above the regulatory minimum.

Speaker #3: Against this backdrop, we remain disciplined in our approach to short-term lending, pursuing transactions at tighter spreads only where risk-adjusted returns remain attractive. This additional volumes generate incremental net interest income, while preserving the flexibility to reprice the portfolio as market conditions evolve.

[Company Representative] (Bladex): This is consistent with the strategy we outlined following the AT1 issue and with our expectations that capital ratios would gradually move toward our operating range as we put the capital to work. Our capital base continues to provide ample capacity to support future growth, absorb potential volatility, and maintain the financial flexibility expected by our stakeholders. Moving now to net interest income and margins. Net interest income increased to $73.3 million, up 4% from Q1. Higher average loan balances more than offset tighter lending spreads, allowing net interest income to grow despite continued pressure on margins. Net interest margin was 2.24% during the quarter, down seven basis points from Q1, while net interest spread declined to 1.64%.

Annette van Hoorde: This is consistent with the strategy we outlined following the AT1 issue and with our expectations that capital ratios would gradually move toward our operating range as we put the capital to work. Our capital base continues to provide ample capacity to support future growth, absorb potential volatility, and maintain the financial flexibility expected by our stakeholders. Moving now to net interest income and margins. Net interest income increased to $73.3 million, up 4% from Q1. Higher average loan balances more than offset tighter lending spreads, allowing net interest income to grow despite continued pressure on margins. Net interest margin was 2.24% during the quarter, down seven basis points from Q1, while net interest spread declined to 1.64%.

The movement in Tier 1 reflects the continued deployment of capital to support commercial portfolio growth, particularly in medium-term transactions.

This is consistent with this tragedy, we outlined following the 81 issuance and with our expectations that Capital ratios would gradually move toward our operating range as we put the capital to work.

Speaker #3: At the same time, medium-term origination with attractive risk-adjusted returns provided an additional earning contribution and held partially offset the pressure on short-term lending spreads.

Our capital base continues to provide support for future growth, absorb potential volatility, and maintain the financial flexibility expected by our stakeholders.

moving now to net interest incomes and margins

Speaker #3: On the funding side, continued deposit growth increased the contribution of lower cost funding to the balance sheet, partially offsetting the impact of tighter asset spreads.

Net interest income increased to $73.3 million, up 4% from the first quarter.

Speaker #3: At this time, we are maintaining our full year name guidance while continue to monitor competitive conditions for a folio repricing and funding cost closely.

Higher average loan balances more than offset tighter lending spreads, allowing net interest income to grow despite continued pressure on margins.

Speaker #3: Let me now turn to non-interest income, one of the key highlights of the quarter and an increasingly important contributor to our financial performance. Non-interest income excluding the impact of hedging derivatives reached 25.1 million, up 86% from the first quarter.

[Company Representative] (Bladex): The decline in NIM primarily reflects higher average liquidity and continued competitive pressure on short-term lending spreads, as abundant regional liquidity and strong demand for high-quality assets continue to affect pricing. Against this backdrop, we remain disciplined in our approach to short-term lending, pursuing transactions at tighter spreads only where risk-adjusted returns remain attractive. This approach helps generate incremental net interest income while preserving the flexibility to reprice the portfolio as market conditions evolve. At the same time, medium-term originations with attractive risk-adjusted returns provided an additional earning contribution and helped partially offset the pressure on short-term lending spreads. On the funding side, continued deposit growth increased the contribution of lower-cost funding to the balance sheet, partially offsetting the impact of tighter asset spreads. At this time, we are maintaining our full-year NIM guidance while continuing to monitor competitive conditions for portfolio repricing and funding costs closely.

Annette van Hoorde: The decline in NIM primarily reflects higher average liquidity and continued competitive pressure on short-term lending spreads, as abundant regional liquidity and strong demand for high-quality assets continue to affect pricing. Against this backdrop, we remain disciplined in our approach to short-term lending, pursuing transactions at tighter spreads only where risk-adjusted returns remain attractive. This approach helps generate incremental net interest income while preserving the flexibility to reprice the portfolio as market conditions evolve. At the same time, medium-term originations with attractive risk-adjusted returns provided an additional earning contribution and helped partially offset the pressure on short-term lending spreads. On the funding side, continued deposit growth increased the contribution of lower-cost funding to the balance sheet, partially offsetting the impact of tighter asset spreads. At this time, we are maintaining our full-year NIM guidance while continuing to monitor competitive conditions for portfolio repricing and funding costs closely.

Net interest margin was 2.24% during the quarter, down several basis points from the first quarter. Meanwhile, net interest spread declined to 1.64%.

The declining name primarily reflects higher average liquidity and continued competitive pressure on short-term lending spreads, as abundant regional liquidity and strong demand for high-quality assets continue to affect pricing.

Speaker #3: Within this total, fees and commissions amounted to 23.3 million. Letter of credit and guarantees generated 9.5 million, supported by a stronger transaction volumes and increased trade finance activity.

Against this backdrop, we remain disciplined in our approach to short-term lending, pursuing transactions at tighter spreads only where risk-adjusted returns remain attractive.

Speaker #3: The quarter also benefited from the distribution of a letter of credit facility originated by our trade finance team. Credit commitments contributed 5.2 million, providing a stable and recurring source of income, primarily from credit finance transactions and medium-term committed facilities.

This generates incremental net interest income while preserving the flexibility to reprice the portfolio as market conditions evolve.

At the same time, medium-term trend origination with attractive risk-adjusted returns provided an additional earnings contribution and helped partially offset the pressure on short-term lending spreads.

Speaker #3: Structuring and distribution generated 7.9 million, in upfront structuring and syndication fees. During the quarter, the team completed seven transactions across six countries, supporting both financial institutions and corporate clients.

On the funding side, continued deposit growth increased the contribution of lower-cost funding to the balance sheet, partially offsetting the impact of tighter asset spreads.

Speaker #3: Year to date, Bladex has mobilized approximately 2.2 billion, while returning only 26% of that volume in our balance sheet, highlighting the capital-efficient nature of this business.

[Company Representative] (Bladex): Let me now turn to non-interest income, one of the key highlights of the quarter and an increasingly important contributor to our financial performance. Non-interest income, excluding the impact of hedging derivatives, reached $12 million, up 86% from Q1. Within this total, fees and commissions amounted to $23.3 million. Letters of credit and guarantees generated $9.5 million, supported by stronger transaction volumes and increased trade finance activity. The quarter also benefited from the distribution of a letter of credit facility originated by our trade finance team. Credit commitments contributed $5.2 million, providing a stable and recurring source of income, primarily from project finance transactions and medium-term committed facilities. Structuring and distribution generated $7.9 million in upfront structuring and syndication fees. During the quarter, the team completed seven transactions across six countries, supporting both financial institutions and corporate clients.

Annette van Hoorde: Let me now turn to non-interest income, one of the key highlights of the quarter and an increasingly important contributor to our financial performance. Non-interest income, excluding the impact of hedging derivatives, reached $12 million, up 86% from Q1. Within this total, fees and commissions amounted to $23.3 million. Letters of credit and guarantees generated $9.5 million, supported by stronger transaction volumes and increased trade finance activity. The quarter also benefited from the distribution of a letter of credit facility originated by our trade finance team. Credit commitments contributed $5.2 million, providing a stable and recurring source of income, primarily from project finance transactions and medium-term committed facilities. Structuring and distribution generated $7.9 million in upfront structuring and syndication fees. During the quarter, the team completed seven transactions across six countries, supporting both financial institutions and corporate clients.

At this time, we are maintaining our full-year named guidance. We will continue to monitor competitive conditions for a folio repricing and funding cost closely.

Let me now turn to non-interest income, one of the key highlights of the quarter and an increasingly important contributor to our financial performance.

Speaker #3: Client derivatives generated an additional 1.3 million. During the quarter. As Jorge mentioned, the pilot transactions continued to perform well, and our primarily linked to structured transactions for our clients.

Non-interest income excluding the impact of hedging derivatives which

Millions, or 86%, from the first quarter.

Speaker #3: These activity continues to progress in line with the strategy we presented at the investor day. As a result, non-interest income excluding hedging derivatives represented 25.4% of total revenues, reinforcing the diversification of our earnings and underscoring is increasingly meaningful contribution to profitability.

Within this total, fees and commissions amounted to $23.3 million.

Letters of credit and guarantees generated $9.5 million, supported by stronger transaction volumes and increased trade finance activity.

The quarter also benefited from the distribution of a letter of credit facility, originated by our Trade Finance team.

Speaker #3: Turning now to expenses and efficiency, operating expenses total 23.8 million, up 8% from the first quarter. For the first half, expenses remain aligned with our 2026 plan, while revenue growth outpaces expense growth.

Structuring and distribution generated $7.9 million in upfront structuring and syndication fees.

Speaker #3: This generated positive operating leverage and improved the efficiency ratio to 24.1% from 26.5% in the prior quarter. As Jorge noted, expense execution is seasonally weighted toward the second half of the year, as the strategic initiative moving to implementation.

[Company Representative] (Bladex): Year to date, approximately $2.2 billion, while retaining only 26% of that volume in our balance sheet, highlighting the capital efficient nature of this business. Client derivatives generated an additional $1.3 million this quarter. As Jorge mentioned, the pilot transactions continue to perform well and are primarily linked to structured transactions for our clients. This activity continues to progress in line with the strategy we presented at the Investor Day. As a result, net interest income, excluding hedging derivatives, represented 25.4% of total revenue, reinforcing the diversification of our earnings and underscoring its increasingly meaningful contribution to profitability. Turning now to expense efficiency. Operating expenses totaled $23.8 million, up 8% from Q1. For H1, expenses remain aligned with our 2026 plan, while revenue growth outpaced expense growth. This generated positive operating leverage and improved the efficiency ratio to 24.1%, from 26.5% the prior quarter.

Annette van Hoorde: Year to date, approximately $2.2 billion, while retaining only 26% of that volume in our balance sheet, highlighting the capital efficient nature of this business. Client derivatives generated an additional $1.3 million this quarter. As Jorge mentioned, the pilot transactions continue to perform well and are primarily linked to structured transactions for our clients. This activity continues to progress in line with the strategy we presented at the Investor Day. As a result, net interest income, excluding hedging derivatives, represented 25.4% of total revenue, reinforcing the diversification of our earnings and underscoring its increasingly meaningful contribution to profitability. Turning now to expense efficiency. Operating expenses totaled $23.8 million, up 8% from Q1. For H1, expenses remain aligned with our 2026 plan, while revenue growth outpaced expense growth. This generated positive operating leverage and improved the efficiency ratio to 24.1%, from 26.5% the prior quarter.

During the quarter, the team completed seven transactions across six countries, supporting both financial institutions and corporate clients.

Year to date.

Speaker #3: At this time, we continue to expect full year efficiency ratio to remain within our guidance range of 27% to 28%. As we invest, cost discipline remains a management priority.

approximately 2.2 billion, while returning, only 26% of that volume in our balance sheet, highlighting, the capital efficient nature of this business,

Speaker #3: We are allocating resources selectively with a clear focus on operating leverage and efficiency. In closing, the second quarter demonstrated a strong and balanced execution across the franchise, reinforcing our confidence in the full year outlook and in our ability to continue delivering discipline profitable growth while preserving the strength of our balance sheet.

Client derivatives generated an additional $1.3 million. As previously mentioned, the pilot transactions continue to perform well and are primarily linked to structured transactions for our clients.

This activity continues to progress in line with this strategy. As we presented at the Investor Day,

As a result, not including income from hedging, the EVAP represented 25.4% of total revenue, reinforcing the diversification of our earnings and underscoring its increasingly meaningful contribution to profitability.

Speaker #3: This concludes my review of the second quarter financial results. Jorge, back to you.

Speaker #1: Thank you, Annette. Let me just close with a few comments on strategy execution, the macro environment, and our outlook for the rest of the year.

Turning now to expenses, efficiency, and operating expenses totaled $23.8 million, up 8% for the first quarter.

Speaker #1: On strategy, the first half of the year provides a good view of how our 2030 plan is beginning to move from design into execution.

For the first half, expenses remain aligned with our 2026 plan, while revenue growth outpaced expense growth.

[Company Representative] (Bladex): As Jorge noted, expense execution is seasonally weighted toward the H2 of the year as the strategic initiatives move into implementation. At this time, we continue to expect full-year efficiency ratio to remain within our guidance range of 27% to 28%. As we invest, efficiency remains a management priority. We are allocating resources selectively with a clear focus on operating leverage and efficiency. In closing, the Q2 demonstrated a strong and balanced execution across the franchise, reinforcing our confidence in the full-year outlook and in our ability to continue delivering disciplined, profitable growth while preserving the strength of our balance sheet. This concludes my review of the Q2 financial results. Jorge, back to you.

Annette van Hoorde: As Jorge noted, expense execution is seasonally weighted toward the H2 of the year as the strategic initiatives move into implementation. At this time, we continue to expect full-year efficiency ratio to remain within our guidance range of 27% to 28%. As we invest, efficiency remains a management priority. We are allocating resources selectively with a clear focus on operating leverage and efficiency. In closing, the Q2 demonstrated a strong and balanced execution across the franchise, reinforcing our confidence in the full-year outlook and in our ability to continue delivering disciplined, profitable growth while preserving the strength of our balance sheet. This concludes my review of the Q2 financial results. Jorge, back to you.

This generated positive operating leverage and improved the efficiency ratio to 24.1%, from 26.5% quarter.

Speaker #1: The commercial growth and revenue diversification pillars are developing in line with the direction we share at the investor day. Annette has just taken you through the financial detail, so I will focus more on the next part of the build.

As Jorge noted, expense execution is seasonally weighted toward the second half of the year as a strategic initiative, moving to implementation.

Speaker #1: The transactional services pillar. Transactional services is a little different from the other two pillars. As I mentioned during our investor day back in March, this is a longer-term build because it's more intensive in terms of technology, controls, compliance, and general operational readiness before we're able to scale.

At this time, we continue to expect full-year efficiency ratio to remain within our guidance range of 27% to 28%.

As we invest, this is a management priority. We are allocating resources selectively, with a clear focus on operating leverage and efficiency.

Speaker #1: That said, the phase one of the new online banking platform is already in place, and we're gradually adding letters of credit clients. We're also very close to completing the onboarding of two additional corresponding banking clients.

In closing, overall, we demonstrated a strong and balanced execution across the franchise, reinforcing our confidence in the full-year outlook and in our ability to continue delivering disciplined, profitable growth while preserving the strength of our balance sheet.

Jorge L. Salas Taurel: Thank you, Annette. Let me just close with a few comments on strategy execution, the macro environment, and our outlook for the rest of the year. On strategy, the H1 of the year provides a good view of how our 2030 plan is beginning to move from design into execution. The commercial growth and revenue diversification pillars are developing in line with the direction we shared at the Investor Day. Annette has just taken you through financial build, so I will focus more on the next part of the build, the transactional services pillar. Transactional services is a little different from the other two pillars. As I mentioned during our Investor Day back in March, this is a longer-term build because it's more intensive in terms of technology, controls, compliance, and general operational readiness before we're able to scale.

Jorge Salas: Thank you, Annette. Let me just close with a few comments on strategy execution, the macro environment, and our outlook for the rest of the year. On strategy, the H1 of the year provides a good view of how our 2030 plan is beginning to move from design into execution. The commercial growth and revenue diversification pillars are developing in line with the direction we shared at the Investor Day. Annette has just taken you through financial build, so I will focus more on the next part of the build, the transactional services pillar. Transactional services is a little different from the other two pillars. As I mentioned during our Investor Day back in March, this is a longer-term build because it's more intensive in terms of technology, controls, compliance, and general operational readiness before we're able to scale.

This concludes my review of the second quarter financial results for Bladex. Back to you.

Thank you, Anette.

Speaker #1: In parallel, we remain focused on end-to-end process redesign and automation. The objective here is to make sure we scale this part of the business with the right controls and operating foundations from the beginning.

Let me just close with a few comments on strategy execution, the macro environment, and our outlook for the rest of the year.

Speaker #1: Now, turning onto the macro environment, the global economy continues to show resilience, but uncertainty undoubtedly remains high. Geopolitical trade tensions together with renewed inflation risks continue to create a challenging backdrop for economic activity and financial markets.

On strategy. The first half of the Year provides a good view of how our 2030 plan is beginning to move from design into execution,

The commercial revenue diversification pillars are developing in line with the direction we shared at the Investor Day.

Speaker #1: In the United States, inflation has shown signs of renewed pressure, while the labor market remains relatively strong. As a result, the Federal Reserve has adopted a more cautious tone with rates likely to remain stable for longer.

Annette has just taken you through, so I will focus more on the next part of the build—the transactional services pillar.

Transactional Services is a little different from the other two pillars.

Speaker #1: In Latin America, the electoral cycle was an important focus for markets during the quarter, particularly because presidential elections took place in Colombia and Peru.

Jorge L. Salas Taurel: That said, the phase one of the new online banking platform is already in place, and we're gradually adding letters of credit clients. We're also very close to completing the onboarding of two additional corresponding banking clients. In parallel, we remain focused on end-to-end process redesign and automation. The objective here is to make sure we scale this part of the business with the right controls and operating foundations from the beginning. Now turning onto the macro environment. The global economy continues to show resilience, but uncertainty undoubtedly remains high. Geopolitical trade tensions, together with renewed inflation risks, continue to create a challenging backdrop for economic activity and financial markets. In the United States, inflation has shown signs of renewed pressure, while the labor market remains relatively strong. As a result, the Federal Reserve has adopted a more cautious tone, with rates likely to remain stable for longer.

Jorge Salas: That said, the phase one of the new online banking platform is already in place, and we're gradually adding letters of credit clients. We're also very close to completing the onboarding of two additional corresponding banking clients. In parallel, we remain focused on end-to-end process redesign and automation. The objective here is to make sure we scale this part of the business with the right controls and operating foundations from the beginning. Now turning onto the macro environment. The global economy continues to show resilience, but uncertainty undoubtedly remains high. Geopolitical trade tensions, together with renewed inflation risks, continue to create a challenging backdrop for economic activity and financial markets. In the United States, inflation has shown signs of renewed pressure, while the labor market remains relatively strong. As a result, the Federal Reserve has adopted a more cautious tone, with rates likely to remain stable for longer.

As I mentioned during our investor day back in March, this is a longer-term build because it's more intensive in terms of technology, controls, compliance in general, and operational readiness before we're able to scale.

Speaker #1: The electoral results eased political uncertainty and boosted market confidence, but investors still concentrate on governance, fiscal performance, and policy direction. Overall, regional assets performed well during the quarter, supported by constructive investor sentiment and tighter credit spreads.

That said, the Phase 1 of the new online banking platform is already in place, and we're gradually adding Letters of Credit clients.

We're also very close to completing the onboarding of two additional correspondent banking clients.

In parallel, we remain focused on end-to-end process redesign and automation.

Speaker #1: Looking ahead, our view for the rest of the year remains broadly unchanged. We are encouraged by our execution during the first half of the year, and remain on track on the key priorities we established for 2026.

The objective here is to make sure we scale this part of the business and operating foundations from the beginning.

Speaker #1: At the same time, we are realistic about the environment. Margin pressure has been stronger than we originally expected, mainly due to tight spreads abundant liquidity and strong competition for high-quality assets in the region.

Speaker #1: We are managing the pressure through disciplined portfolio growth, funding execution, a broader revenue mix, and control. Given this context, we're ready to rate our full year guidance.

Now, turning to the macro environment, the global economy continues to show resilience, but uncertainty on that front remains high. Geopolitical trade tensions, together with renewed inflation risks, continue to create a challenging environment for economic activity and financial markets in the United States. Inflation has shown signs of renewed pressure, while the labor market remains relatively strong.

Jorge L. Salas Taurel: In Latin America, the electoral cycle was an important focus for markets during the quarter, particularly because presidential elections took place in Colombia and Peru. The electoral results eased political uncertainty and boosted market confidence, but investors still concentrate on governance, fiscal performance, and policy direction. Overall, regional assets performed well during the quarter, supported by constructive investor sentiment and tighter credit spreads. Looking ahead, our view for the rest of the year remains broadly unchanged. We are encouraged by our execution during the H1 of the year and remain on track on the key priorities we established for 2026. At the same time, we are realistic about the environment. Margin pressure has been stronger than we originally expected, mainly due to tight spreads, abundant liquidity, and strong competition for high-quality assets in the region.

Jorge Salas: In Latin America, the electoral cycle was an important focus for markets during the quarter, particularly because presidential elections took place in Colombia and Peru. The electoral results eased political uncertainty and boosted market confidence, but investors still concentrate on governance, fiscal performance, and policy direction. Overall, regional assets performed well during the quarter, supported by constructive investor sentiment and tighter credit spreads. Looking ahead, our view for the rest of the year remains broadly unchanged. We are encouraged by our execution during the H1 of the year and remain on track on the key priorities we established for 2026. At the same time, we are realistic about the environment. Margin pressure has been stronger than we originally expected, mainly due to tight spreads, abundant liquidity, and strong competition for high-quality assets in the region.

As a result, the Federal Reserve has adopted a more cautious tone with rates, likely to remain stable for longer.

Speaker #1: We will continue to manage the business with discipline, maintaining our focus on risks, returns, and the quality and sustainability of our earnings. That concludes our review for the second quarter.

Columbia and Peru.

Speaker #1: Operator, you can now open the line for questions.

The electoral results resulted in political uncertainty and boosted market confidence, but investors still concentrate on governance, fiscal performance, and policy direction.

Speaker #2: Thank you very much for the presentation. We will now begin the Q&A session for the investors and analysts. If you wish to ask a question, please click on raise hand.

Overall, regional assets performed well during the quarter, supported by constructive industrial sentiment and tighter credit spreads.

Speaker #2: If you have a question that has already been answered, you can leave the queue by clicking on put hand down. There is also the possibility to ask your question through the Q&A icon at the bottom of the screen.

Looking ahead, our focus for the rest of the year remains broadly unchanged. We are encouraged by our execution during the first half of the year and remain on track with the key priorities we established for 2026.

Speaker #2: You may select your you may select the icon and type your question with a name and company. Written questions that not are not addressed addressed during the earnings call will be returned by the investor relations team.

Jorge L. Salas Taurel: We are managing the pressure through disciplined portfolio growth, funding execution, a broader revenue mix, and continued cost control. Given this context, we reiterate our full-year guidance. We will continue to manage the business with discipline, maintaining our focus on risks, returns, and the quality and sustainability of our earnings. That concludes our review for Q2. Operator, you can now open the line for questions.

Jorge Salas: We are managing the pressure through disciplined portfolio growth, funding execution, a broader revenue mix, and continued cost control. Given this context, we reiterate our full-year guidance. We will continue to manage the business with discipline, maintaining our focus on risks, returns, and the quality and sustainability of our earnings. That concludes our review for Q2. Operator, you can now open the line for questions.

At the same time, we are realistic about the environment. Margin pressure has been stronger than we originally expected, mainly due to tight spreads, abundant liquidity, and strong competition for high-quality assets in the region.

Speaker #2: Our first question comes from Ricardo Bitcherpigel by with GP BTG Pactual. Sir, your microphone is open.

We are managing the pressure through disciplined portfolio growth, funding execution, a broader revenue mix, and continued cost control.

Speaker #3: Good morning, everyone, and thank you for the opportunity of making questions. I have two here on my side. So you comment that the competitive environment became more a little more intense on the second half, second quarter of the year, pressuring spreads.

Given this context, we reiterate our full-year guidance.

Speaker #3: And I wanted to understand whether you continue to see this trend and if your appetite to continue growing has changed in any way for the second half of the year, particularly as you have guidance now implies a sharp decelerations for the second half.

We will continue to manage the business with discipline, maintaining our focus on risks, returns, and the quality and sustainability of our earnings.

That concludes our review for the second quarter, operator. You can now open the line for questions.

Operator: Thank you very much for the presentation. We will now begin the Q&A session for the investors and analysts. If you wish to ask a question, please click on raise hand. If your question has already been answered, you can leave the queue by clicking on put hand down. There is 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. Questions that are not addressed during the earnings call will be returned by the investor relations team. Our first question comes from Ricardo Buchpiguel with BTG Pactual. Sir, your microphone is open.

Operator: Thank you very much for the presentation. We will now begin the Q&A session for the investors and analysts. If you wish to ask a question, please click on raise hand. If your question has already been answered, you can leave the queue by clicking on put hand down. There is 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. Questions that are not addressed during the earnings call will be returned by the investor relations team. Our first question comes from Ricardo Buchpiguel with BTG Pactual. Sir, your microphone is open.

Speaker #3: And also, in a way, related to this, I wanted to check if you consider the opportunity that credit might bring to improve private relationship and increase non-interest income penetration when you are deciding how much you want to grow per client.

Thank you very much for the presentation. We will now begin the Q&A session for the investors and analysts.

If you wish to ask a question, please click on 'Raise Hand.' If your question has already been answered, you can leave the queue by clicking on 'Put Hand Down.'

Speaker #3: And finally, I just wanted to ask about asset quality. The coverage ratio is now closer to 120%. Historically, low level when you compare the numbers since 2020.

There is also the possibility to ask your question through the Q&A icon at the bottom of the screen.

You may set, you may select the icon, and type your question with your name and company.

Speaker #3: So I wanted to understand if it makes sense to expect some some pickup in provisions versus where you haven't seen in the last few quarters.

Questions that are not addressed during the earnings call will be returned by the investor relations team.

Speaker #3: Or perhaps only the NPL formation going down would would improve the coverage ratio in the coming quarters. Thank you.

Our first question comes from Ricardo Berbel with GP BTG Pactual.

Sir, your microphone is open.

Ricardo Buchpiguel: Good morning, everyone. Thank you for the opportunity of making questions. I have two here on my side. You comment that the competitive environment became a little more intense on the H2, Q2 of the year, pressuring spreads. I wanted to understand whether you continue to see this trend and if your appetite to continue growing has changed in any way for the H2 of the year, particularly as your guidance now implies a sharp deceleration for the H2. Also in a way related to this, I wanted to check if you consider the opportunity that that client might bring to improve client relationship and increase non-interest income penetration when you are deciding how much you want to grow per client. Finally, I just wanted to ask about asset quality.

Ricardo Buchpiguel: Good morning, everyone. Thank you for the opportunity of making questions. I have two here on my side. You comment that the competitive environment became a little more intense on the H2, Q2 of the year, pressuring spreads. I wanted to understand whether you continue to see this trend and if your appetite to continue growing has changed in any way for the H2 of the year, particularly as your guidance now implies a sharp deceleration for the H2. Also in a way related to this, I wanted to check if you consider the opportunity that that client might bring to improve client relationship and increase non-interest income penetration when you are deciding how much you want to grow per client. Finally, I just wanted to ask about asset quality.

Speaker #1: Thank you, Ricardo. I'm going to tackle the margins questions, and then Annette will tackle the the asset quality question. Yes. I mean, as you said, the margin pressure was was strong stronger than than we initially expected.

Good morning, everyone, and thank you for the opportunity to ask questions. I have two here on my side. You commented that the competitive environment became a little more intense in the second half, second quarter of the year, pressuring spreads.

Speaker #1: I mean, that's there is no change in appetite. You know, and given our business model and given that we maintain around almost 70% of our commercial book maturing in less than a year, you know, times like this of excess liquidity, you know, put more pressure on Bladex than versus the average bank.

And uh, I wanted to understand whether you continue to see this trend and uh, uh, if your appetite to continue growing has changed in any way. Uh, for the second half the particularly as you your guidance now implies a a sharp facility for the second half.

Speaker #1: Now, on the other hand, the strategic plan was designed exactly to navigate this kind of environment. We have seen you know, we've been quite successful, I think, in containing much of the compression of the short-term deals through the execution of our of our core strategy.

Ricardo Buchpiguel: The coverage ratio now closer to 120%, historically low level when you compare it to the numbers since 2020. I wanted to understand if it makes sense to expect some pickup in provisions versus what we have been seeing in the last few quarters. Perhaps only the NPL formation going downward will improve the coverage ratio in the coming quarters. Thank you.

Ricardo Buchpiguel: The coverage ratio now closer to 120%, historically low level when you compare it to the numbers since 2020. I wanted to understand if it makes sense to expect some pickup in provisions versus what we have been seeing in the last few quarters. Perhaps only the NPL formation going downward will improve the coverage ratio in the coming quarters. Thank you.

Speaker #1: I mean, more more structured products such as supply chain finance, factoring, account receivable financing, commercial prepayments, you know, among others. The proportion of such deals will keep increasing and we expect to continue growing in alleviate the periods of margin pressures like the one we have now.

And also in a way related to this, I wanted to check if you consider the opportunity that that prior might bring to improve private relationship and increase not an interesting component when you're deciding how much you want to grow uh, per client. And and finally, I just wanted to ask about as quality uh the coverage ratio. Now closer to uh uh 120%, I start really low level when you compare the numbers since 2020. So I want to show you understand if it makes sense to expect some some pick up in Provisions versus uh, where you haven't seen in the last few quarters. Uh, or perhaps only the NBL formation going down with uh, with with improved the the coverage ratio in in the coming quarters. Thank you.

Jorge L. Salas Taurel: Thank you, Ricardo. I'm going to tackle the margins questions, Annette will tackle the asset quality question. Yes. As you said, the margin pressure was stronger than we initially expected. There is no change in appetite. Given our business model and given that we maintain around almost 70% of our commercial book maturing this year, times like this of excess liquidity put more pressure on Bladex versus the average bank. On the other hand, the strategic plan was designed exactly to navigate this kind of environment. We've been quite successful, I think, in containing much of the compression of the short-term deals through the execution of our core strategy. More structured products such as supply chain finance, factoring, accounts receivable financing, commercial prepayments, among others.

Jorge Salas: Thank you, Ricardo. I'm going to tackle the margins questions, Annette will tackle the asset quality question. Yes. As you said, the margin pressure was stronger than we initially expected. There is no change in appetite. Given our business model and given that we maintain around almost 70% of our commercial book maturing this year, times like this of excess liquidity put more pressure on Bladex versus the average bank. On the other hand, the strategic plan was designed exactly to navigate this kind of environment. We've been quite successful, I think, in containing much of the compression of the short-term deals through the execution of our core strategy. More structured products such as supply chain finance, factoring, accounts receivable financing, commercial prepayments, among others.

Uh, thank you Ricardo. Um, I'm going to tackle the margins uh uh questions. And then Anette will tackle the uh,

Um, as a quality question, um,

Speaker #1: Same is happening with the medium-term transactions. I mean, these are are syndicated and are product finance deals. They come with a pickup on on spread and also with with more fees.

Yes. I mean, as you said, the margin pressure was, was strong stronger than than we initially, uh, expected. I mean, that's there is no change in appetite. Uh,

Speaker #1: I mean, finally, the on the funding side, I mean, that that's also helping us contain the the the NIM since we're, you know, gathering more and more deposits has grown as the percentage of the funding base.

You know, and given our business model, and given that we maintain around almost 70% of our commercial book maturing through the year,

You know, times like this of excess liquidity,

you know, put more pressure on Bladex versus the average bank. Now, on the other hand,

Speaker #1: I mean, needless to say, as as we scale the transactional deposits platform, the contribution of operational deposits to a lower cost of funds will be increasingly meaningful, as I said before, but that should come in the in the latter part of the of the plan.

The Strategic Plan was designed exactly to navigate this kind of environment. Uh,

We have seen, you know, we've been quite successful, I think.

Speaker #1: So in, you know, all in all, there is more pressure on margins that we had expected. We do not will not change the appetite.

Speaker #1: But again, the repricing should should help when conditions change. Annette, you want to do I don't know if that answers your question. Ricardo.

Jorge L. Salas Taurel: The proportion of such deals will keep increasing, we expect to continue growing and alleviate the periods of margin pressures like the one we have now. Same is happening with the medium-term transactions. These are syndicated in our private finance deals. They come with a pickup on spread and also with more fees. Finally, on the funding side, that's also helping us maintain the NIM since we're gathering more and more deposits has grown as a percentage of the funding base. Needless to say, as we scale the transactional deposits platform, the contribution of operational deposits to a lower cost of funds will be increasingly meaningful, as I said before, but that should come in the latter part of the plan. All in all, there is more pressure on margins than we expected. We will not change the appetite. Again, the repricing should help when conditions change.

Jorge Salas: The proportion of such deals will keep increasing, we expect to continue growing and alleviate the periods of margin pressures like the one we have now. Same is happening with the medium-term transactions. These are syndicated in our private finance deals. They come with a pickup on spread and also with more fees. Finally, on the funding side, that's also helping us maintain the NIM since we're gathering more and more deposits has grown as a percentage of the funding base. Needless to say, as we scale the transactional deposits platform, the contribution of operational deposits to a lower cost of funds will be increasingly meaningful, as I said before, but that should come in the latter part of the plan. All in all, there is more pressure on margins than we expected. We will not change the appetite. Again, the repricing should help when conditions change. Annette, I don't know if that answers your question, Ricardo.

Seeing, uh, commercial prepayments, you know, among others.

The proportion of such deals,

Will keep increasing, and we expect.

Speaker #3: Oh, that's that's that's that's very clear. I just wanted to understand if you are not changing the credit appetite, why not increase the the portfolio guidance, right?

To continue growing and alleviate the periods of margin pressures, like the one we have now.

Speaker #3: You're already growing around 20% this year. Not sure. I understand that the portfolio has has short duration, but I just wanted to understand the idea here.

Uh, the same is happening with the medium-term transactions. I mean, these are syndicated in our product Finance Deals. They come with a pickup on spread, and also with...

With uh, more fees.

I mean, finally, on the funding side,

Speaker #1: Yeah, good point. I mean, we're retaining the guidance until we have better visibility on on the second half of the year. I mean, there might be upside here.

I mean, that's also helping us.

Uh, the name, since we're gathering more and more deposits, has grown as a percentage of the funding base.

Speaker #1: But rest assured, we will not chase volume just simply to to raise the number.

I mean, needless to say, as we scale the transactional deposits platform, the contribution—

Speaker #3: Perfect. Thank you.

Speaker #2: Our next question.

Speaker #4: Thank you.

Speaker #2: Our next question.

Speaker #1: Wait a second. We need to answer on on credit quality.

The contribution of operational deposits to a lower cost of funds will be increasingly meaningful, as I said before. But that should come in the latter part of the plan.

Speaker #4: Hi, Ricardo. As we mentioned in the call, credit quality remains very sound in the portfolio. Only 98% of the total credit exposure, it's I'm sorry, stage one still represents 98% of total exposure with extremely healthy portfolio.

So, all in all, there is more pressure on margins than we expected. We do not, and will not, change the appetite.

But again, the repricing should help when conditions change.

Jorge L. Salas Taurel: Annette, I don't know if that answers your question, Ricardo.

Ricardo Buchpiguel: That's very clear. I just wanted to understand, if you're not changing appetite, why not increase the portfolio guidance, right? You're already growing around 20% this year. I'm not sure. I understand that the portfolio has short duration.

Ricardo Buchpiguel: That's very clear. I just wanted to understand, if you're not changing appetite, why not increase the portfolio guidance, right? You're already growing around 20% this year. I'm not sure. I understand that the portfolio has short duration.

Speaker #4: And in stage two, we can see our proactive credit risk management declining the stage two exposure to 1.1% of our credit portfolio. This decrease was mainly due to credit improvement that we saw in this stage, repayments and maturities.

Speaker #4: And as we mentioned, we moved one single exposure from stage two to a stage three. This exposure corresponds to a single client in the petrochemical sector in Brazil that we already mentioned in in prior calls.

Jorge L. Salas Taurel: Yeah

Jorge Salas: Yeah

Ricardo Buchpiguel: understand the idea here.

Ricardo Buchpiguel: understand the idea here.

Jorge L. Salas Taurel: Yeah, good point. We're retaining the guidance until we have better visibility on the H2 of the year. There might be upside here. Rest assured, we will not chase volume just simply to raise the number.

Jorge Salas: Yeah, good point. We're retaining the guidance until we have better visibility on the H2 of the year. There might be upside here. Rest assured, we will not chase volume just simply to raise the number.

And that you want to do. I don't know if that answers your question. Uh, Ricardo. Oh, that's that's, that's, that's very clear. I I just want to try to understand uh, if you are not um, why not increase the the the portfolio? Um uh guidance right? You're already growing around 20% this year. Uh, not sure, I understand that the portfolio has has has short duration, but I just want to understand that the idea here

Yeah, good point. I mean, we're retaining the guidance until we have better visibility on the second half of the year.

Speaker #4: And this movement made the stage three increase to 0.5% of the portfolio. As we mentioned in the call in the call, this was only a single client and this client had the exposure to this client had two two facilities, one that is was a bilateral loan, which was reduced during the quarter, and the remainder which was a deferred payment letter credit was moved to stage three and remains very well reserved.

I mean, there might be upside here. Uh,

But rest assured, we will not chase volume just to raise the number.

Operator: Perfect. Thank you. Our next question.

Ricardo Buchpiguel: Perfect. Thank you.

Perfect, thank you.

Operator: Our next question.

Jorge L. Salas Taurel: Wait a second.

Jorge Salas: Wait a second.

Operator: Our next question comes from.

Operator: Our next question comes from.

Our next question.

Jorge L. Salas Taurel: We need to answer on credit quality.

Jorge Salas: We need to answer on credit quality.

[Company Representative] (Bladex): Hi, Ricardo. As we mentioned in the call, credit quality remains very sound in the portfolio. Stage 1 still represents 98% of total exposure, with extremely healthy portfolio. In Stage 2, we can see our proactive credit risk management declining the Stage 2 exposure to 1.1% of our credit portfolio. This decrease was mainly due to credit improvement that we saw in the stage, repayments, and maturities. As we mentioned, we moved one single exposure from Stage 2 to a Stage 3. This exposure corresponds to a single client in the petrochemical sector in Brazil that we already mentioned in prior calls. This movement made the Stage 3 increase to 0.5% of the portfolio. As we mentioned in the call, this was only a single client, and the exposure to this client had two facilities.

Annette van Hoorde: Hi, Ricardo. As we mentioned in the call, credit quality remains very sound in the portfolio. Stage 1 still represents 98% of total exposure, with extremely healthy portfolio. In Stage 2, we can see our proactive credit risk management declining the Stage 2 exposure to 1.1% of our credit portfolio. This decrease was mainly due to credit improvement that we saw in the stage, repayments, and maturities. As we mentioned, we moved one single exposure from Stage 2 to a Stage 3. This exposure corresponds to a single client in the petrochemical sector in Brazil that we already mentioned in prior calls. This movement made the Stage 3 increase to 0.5% of the portfolio. As we mentioned in the call, this was only a single client, and the exposure to this client had two facilities.

Our next question comes from... Okay, we need to answer on credit quality.

um,

Speaker #4: As a result, we increased provisions 8.6 million this quarter, most of this around 6.4 million was due to the growth of the portfolio. And total reserve increased to 93 million.

As we mentioned in the call, credit quality remains very sound in the portfolio. Nearly 98% of the total credit exposure—I'm sorry.

Speaker #4: And looking ahead, we do not expect non-performing loans to increase from current levels. And we estimate that the coverage will move from the current 1.25 to around 1.5 to 1.6 towards the end of the year.

This still represents 98% of our total exposure, with an extremely healthy portfolio.

Speaker #3: Super helpful. Thank you both.

Speaker #2: Our next question comes from Andres Soto with Santander. Sir, your microphone is open.

And um in a stage 2, we can see our proactive credit risk management declining, the stage 2 exposure to 1.1% of our credit portfolio. This discrete was mainly due to credit Improvement that we saw in the page repaints activities. And as we mentioned, we move 1 single exposure from stage 2 to a stage 3. This exposure corresponds to a single client in the prochemical sector in Brazil that we already mentioned in in Prior calls.

And this movement made the Stage 3 increase to 0.5% of the portfolio.

Speaker #5: Good morning, Jorge. Annette, thanks for the presentation. I have a few questions if if you guys are okay. I prefer to go one by one.

[Company Representative] (Bladex): One that was a bilateral loan, which was reduced during the quarter, and the remainder was a deferred payment letter of credit, was moved to Stage 3 and remains very well reserved. As a result, we increased provisions, $8.6 million this quarter. Most of this, around $6.4 million, was due to the growth of the portfolio and total reserve increased to $93 million. Looking ahead, we do not expect non-performing loans to increase from the current levels, and we estimate that the coverage will move from the current 1.25 to around 1.5 to 1.6 towards the end of the year.

Annette van Hoorde: One that was a bilateral loan, which was reduced during the quarter, and the remainder was a deferred payment letter of credit, was moved to Stage 3 and remains very well reserved. As a result, we increased provisions, $8.6 million this quarter. Most of this, around $6.4 million, was due to the growth of the portfolio and total reserve increased to $93 million. Looking ahead, we do not expect non-performing loans to increase from the current levels, and we estimate that the coverage will move from the current 1.25 to around 1.5 to 1.6 towards the end of the year.

As we mentioned in the call in the call um this was only a single client and this client had a disclosure to this client. I had 2 2 facilities 1 that is what bilateral loan which was reduced.

Speaker #5: The first one is on loan growth. We saw a significant acceleration in commercial loan growth despite competitive pressures. How much of this growth is reflect is reflecting structural gains from new businesses such as product finance, structural lending, or is increase market activity in the countries where where you guys operate?

During the quarter, the remainder was a deferred payment. Our credit was moved to Stage 3 and remains very well reserved.

As a result, we increased provisions by $8.6 million this quarter. Most of this, around $6.4 million, was due to the growth of the portfolio.

Speaker #5: And as you look into 20 second half of 2026, do you see room for for this robust growth to to remain for the rest of the year?

And a total reserve in crypto of $93 million. And looking ahead, we do not expect non-performing loans to increase.

Speaker #1: Yes. Gracias, Andres. On loan growth, I mean, I would say the it split like evenly between our typical short-term lending. Some of it with structured, you know, deals.

from current levels, and we estimate that the coverage will move from the current 1.25 to around 1.5 to 1.6, uh, towards the end of the—

Operator: Our next question comes from Andrés Soto with Santander. Sir, your microphone is open.

Operator: Our next question comes from Andrés Soto with Santander. Sir, your microphone is open.

Our next question comes from Andrés Soto with Santander. Sir, your microphone is open.

Speaker #1: And and and part of it around half was also long-term type deals, mainly syndications. But also some product finance deals. In Panama, in Argentina, in the Dominican Republic.

Andrés Soto: Good morning, Jorge and Annette. Thank you for the presentation. I have a quick question, if you guys are okay to go one by one. The first one is on loan growth. We saw a significant acceleration in commercial loan growth despite competitive pressures. How much of this growth is reflecting structural gains from new businesses such as breakthroughs and structural lending increase market activity in the countries where you guys operate? As you look into H2 2026, do you see room for this robust growth to remain for the rest of the year?

Andrés Soto: Good morning, Jorge and Annette. Thank you for the presentation. I have a quick question, if you guys are okay to go one by one. The first one is on loan growth. We saw a significant acceleration in commercial loan growth despite competitive pressures. How much of this growth is reflecting structural gains from new businesses such as breakthroughs and structural lending increase market activity in the countries where you guys operate? As you look into H2 2026, do you see room for this robust growth to remain for the rest of the year?

Speaker #1: So as I said before, there might be upside and our guidance of of loan growth, but we're not ready to to say that yet.

Speaker #5: Understood. And my second question is on the on the fee income. This quarter, which saw another record level can you please help us distinguish how much of this performance can be considered recurring versus one-offs which I believe were a few over the quarter?

Speaker #1: Yeah. So there there are three types of fee income here. The syndication deals, this I mean, that we don't want to, you know, necessarily extrapolate for the rest of the year.

I have a quick question. If, if you guys, okay, to go 1 by 1. The first 1 is, uh, on Long grow. Um, we saw a significant acceleration in in commercial long growth despite, uh, competitive pressures. Uh, how much of this growth is reflect is reflecting, uh, structural, uh, gains from a new businesses. Uh, such as, uh, break structural Lane, what is, uh, increase, uh, Market activity, uh, in the countries, where, where you guys operate and as you look into 20, second half of 2026. Uh, do you see room for for these uh, robust growth to to remain, uh, for the rest of the year?

Jorge L. Salas Taurel: Yes. Gracias, Andrés. On loan growth, I would say that it split evenly between our typical short-term lending, some of it with structured deals, and part of it, around half, was also long-term type deals. Mainly syndications, but also some project finance deals in Panama, in Argentina, and the Dominican Republic. As I said before, there might be an upside in our guidance of loan growth, but we're not ready to say that yet.

Jorge Salas: Yes. Gracias, Andrés. On loan growth, I would say that it split evenly between our typical short-term lending, some of it with structured deals, and part of it, around half, was also long-term type deals. Mainly syndications, but also some project finance deals in Panama, in Argentina, and the Dominican Republic. As I said before, there might be an upside in our guidance of loan growth, but we're not ready to say that yet.

Speaker #1: We had some deals that were expected to close on the first quarter that that turned into the second quarter. So I mean, there's it's hard to predict on the on the syndication deals.

Yes. On on, on, on growth. I mean, I would say it, it split like evenly between

our typical, uh, short-term, uh, uh, lending some of it, uh, with, uh,

Speaker #1: On the other hand, the letters of credit has been steadily growing and progressing. According to plan. And we're also starting to see as I mentioned during the call, the the derivatives which is starting to gain traction.

Speaker #1: So short answer is on the on the syndications, it's it's it's hard to predict we have a good pipeline, but, you know, deals move around between between quarters.

Structured uh, you know, deals and and and part of it around half was also uh uh long-term uh type deals, uh, mainly these indications, but also some uh, product Finance deals in Panama and Argentina and the Dominican Republic. So they said before, there might be a upside in our guidance of of loan growth, but we're not ready to to say that yet.

Andrés Soto: Understood. My second question is on the fee income this quarter, which show another record level. Can you please help us distinguish how much of this performance can be considered recurring versus one-offs, which I believe were a few over the quarter?

Andrés Soto: Understood. My second question is on the fee income this quarter, which show another record level. Can you please help us distinguish how much of this performance can be considered recurring versus one-offs, which I believe were a few over the quarter?

Speaker #1: But the rest is is I'll say it's more structural steady steady growth. In any case, this was an exceptional quarter in terms of fees.

Understood uh my my second question is on the on the fee income uh this quarter which uh, show another record level. Um,

Speaker #1: And for your projections, I do not advise to to simply multiply for the rest the rest of the year because of the syndication part.

Can you please help us distinguish how much of this performance can be considered recurring versus, um, one-off, um, which I believe were a few, uh, over the quarter?

Jorge L. Salas Taurel: There are three types of fee income here. The syndication deals that we don't want to necessarily extrapolate for the rest of the year. We had some deals that were expected to close on Q1 that turned into Q2. It's hard to predict on the syndication deals. On the other hand, the letters of credit have been steadily growing and progressing according to plan. We're also starting to see, as I mentioned during the call, the derivatives, which is starting to gain traction. Short answer is, on the syndications, it's hard to predict. We have a good pipeline, but deals move around between quarters. The rest is, I would say, it's more structural, steady growth. In any case, this was an exceptional quarter in terms of fees.

Jorge Salas: There are three types of fee income here. The syndication deals that we don't want to necessarily extrapolate for the rest of the year. We had some deals that were expected to close on Q1 that turned into Q2. It's hard to predict on the syndication deals. On the other hand, the letters of credit have been steadily growing and progressing according to plan. We're also starting to see, as I mentioned during the call, the derivatives, which is starting to gain traction. Short answer is, on the syndications, it's hard to predict. We have a good pipeline, but deals move around between quarters. The rest is, I would say, it's more structural, steady growth. In any case, this was an exceptional quarter in terms of fees. For your projections, I do not advise to simply multiply for the rest of the year because of the syndication. That's pretty clear. Thank you.

Speaker #5: That's pretty clear.

Speaker #3: Okay. Can you hear me? Can I just complement? You guys hear me?

Speaker #1: Oh, Sam. Okay. Go ahead, Sam.

Speaker #3: Yes. Andres, this is Samuel Canineo, the Chief Commercial Officer. Just I just want to complement that. If you look just to put what you're asking perspective, just one year ago, when we announced second quarter of 2025, then we have we had the statuary deal in Suriname that was, let's say, a large historical one-off.

So there are three types of fee income here—the syndication deals, this. I mean, we don't want to, uh, you know, necessarily extrapolate for the rest of the year. We had some deals that were expected to close in the first quarter that turned into the second quarter.

Speaker #3: As as much as we can as Jorge refer to not multiply the the revenues, the the structuring fees for syndicated deals by four, I think the fact that to this year, second quarter, or if we add the first semester of this year, we are in total fees and in in structuring fees equal or above last year without depending on one single deal.

So, I mean there's uh it's hard to predict on the on the uh syndication deals. On the other hand, the letters of credit has been steadily, uh, growing and progressing. Uh, according to plan, we're also starting to see as I mentioned during the call the, uh,

Speaker #3: And now this this quarter we actually had seven deals, which was a record within a quarter. It it I'm not saying that it's not it's it's again to be multiplied, but shows a direction a direction of a dependence dependency on less individual transactions.

Uh, the derivatives, uh, which is starting to gain traction. So, a short answer is on the, on the syndications. It's, it's, it's hard to predict we have a good pipeline but, you know, deals move around between between quarters. Uh, but the rest is, is I'll say small. Structural, uh, steady growth, uh, in any case this was an exceptional.

Jorge L. Salas Taurel: For your projections, I do not advise to simply multiply for the rest of the year because of the syndication. That's pretty clear. Thank you.

Speaker #3: Of course, there were exceptional transactions this quarter. For example, the acquisition of Banismo in Panama which we were one of the co-lenders and that that is representative transactions transaction.

Water in terms of fees. Uh, and for your projections, I do not advise to to, uh, uh, simply multiply, uh, uh, for the rest, the rest, uh, of the year because of the syndication part.

Andrés Soto: Jorge, can you hear me? Can I just complement? You guys hear me?

Samuel Canineu: Jorge, can you hear me? Can I just complement? You guys hear me?

That's very clear. All right. Uh, can you hear me?

Can I just compliment?

Jorge L. Salas Taurel: Sorry. Okay, go ahead.

Jorge Salas: Sorry. Okay, go ahead.

You guys hear me?

Samuel Canineu: Yes. Andrés, this is Samuel Canineu, the Chief Commercial Officer. I just want to complement that if you look, just to put what you asked in perspective, just one year ago when we announced Q2 2025, we had the Staatsolie deal in Suriname that was, let's say, a large historical one-off. As much as we can, as Jorge referred to, not multiply the revenues, the structuring for syndicated deals by four, I think the fact that this year, Q2, or if we add the H1 of this year, we are, in total fees and in structuring fees, equal or above last year without depending on one single deal. Now this quarter, we actually had seven deals, which was a record within a quarter. I am not saying that this is, again, to be multiplied, shows a direction of dependency on less individual transactions.

Samuel Canineu: Yes. Andrés, this is Samuel Canineu, the Chief Commercial Officer. I just want to complement that if you look, just to put what you asked in perspective, just one year ago when we announced Q2 2025, we had the Staatsolie deal in Suriname that was, let's say, a large historical one-off. As much as we can, as Jorge referred to, not multiply the revenues, the structuring for syndicated deals by four, I think the fact that this year, Q2, or if we add the H1 of this year, we are, in total fees and in structuring fees, equal or above last year without depending on one single deal. Now this quarter, we actually had seven deals, which was a record within a quarter. I am not saying that this is, again, to be multiplied, shows a direction of dependency on less individual transactions.

Speaker #3: But I think the the most important in that business is that there is the direction is that we have with a bigger balance sheet, with more products, with, you know, closer to our clients, being ready to access for episodic transactions such as the acquisitions, for example, are the ones that require certain funds.

Oh, okay. Go ahead.

Speaker #3: We should be more in in a better position to continue to grow that that we have presenting in the last few years. Sorry, back to you.

Address. This is Samuel. Can you know the chief commercial officer? Just I just want to compliment that if you look just to put what you're asking perspective, just 1 year ago when we announced second quarter of 2025, then we have, we have the stat video. Insert number that was, let's say a, a large historical 1 off.

Speaker #1: Thank you.

Speaker #5: Well, thank you, Sam. It was very very helpful and congratulations to you on on impressive commercial results. And my last set of questions is related to to the strategic plan.

Speaker #5: On on transaction banking, you guys mentioned that the first phase of the online banking platform is already operational and that you're close to onboarding two additional correspondent banking clients.

Speaker #5: At what point should investors expect to see these to be reflected in terms of improved funding cost in your numbers?

As as as much as we can as hard to not multiply, uh, uh, the the revenues that the structuring for indicated deals by 4. I think the fact that to this year second quarter, or if we had the first semester of this year, we are uh, in total fees and in in structuring fees, equal, or above last year, without depending on 1 single deal. And now this this quarter, we had actually had 7 deals which was a record within a quarter. It it, I'm not saying that this is not. It's it's again to be multiplied. That shows a direction. A direction of

Samuel Canineu: Of course, there were exceptional transactions this quarter. For example, the acquisition of Banistmo in Panama, which we were one of the co-lenders, and that is a representative transaction. I think the most important in that business is the direction, is that we have with bigger balance sheet, with more products, with closer to our clients, being ready to act fast for exotic transactions such as the acquisitions, for example, or the ones that require certainty of funds. We should be more in a better position to continue to grow that we have presenting in the last few years.

Samuel Canineu: Of course, there were exceptional transactions this quarter. For example, the acquisition of Banistmo in Panama, which we were one of the co-lenders, and that is a representative transaction. I think the most important in that business is the direction, is that we have with bigger balance sheet, with more products, with closer to our clients, being ready to act fast for exotic transactions such as the acquisitions, for example, or the ones that require certainty of funds. We should be more in a better position to continue to grow that we have presenting in the last few years.

Speaker #1: Yes. Thank you for that question. It will be in this in the second in the second part of of the plan, Andres. So so we're still building capabilities.

Speaker #1: We have one correspondent bank working with us. Two will join this year. Between five and ten will join next year. But the meaningful contribution on cost of funds you'll see in the second part of the plan.

Speaker #1: That means years four and five, you'll have meaningful contribution.

Transactions such as the Acquisitions. For example, are the ones that require certificate of funds, which should be more in in a better position to continue to grow, uh, that that we have presenting, uh, in the last few years.

Speaker #5: Thank you, Jorge. And, you know, we are ready four months after the investor day. Where will you say execution is running ahead of your original expectations and where it has proven more challenging so far?

Andrés Soto: Thank you.

Jorge Salas: Thank you.

Andrés Soto: Thank you, Sam. It was very helpful, and congratulations to you on impressive commercial results. My last set of questions is related to the strategic plan. On transaction banking, you guys mentioned that the first phase of the online banking platform is already operational and that you are close to onboarding two additional correspondent banking clients. At what point should investors expect to see these to be reflected in terms of improved funding cost in your numbers?

Andrés Soto: Thank you, Sam. It was very helpful, and congratulations to you on impressive commercial results. My last set of questions is related to the strategic plan. On transaction banking, you guys mentioned that the first phase of the online banking platform is already operational and that you are close to onboarding two additional correspondent banking clients. At what point should investors expect to see these to be reflected in terms of improved funding cost in your numbers?

Thank you, thank you so much. It was very, very helpful, and congratulations to you on your impressive commercial results.

Um, and my last set of questions is related to the strategic plan. Um,

Speaker #1: Yeah. Yeah. It's been just four months. We are right on track. We're expecting to complete the the the treasury platform by the end of this year, the first part, and then the second part, you know, first half of next year.

Speaker #1: Online banking is on track. Compliance and monitoring systems are also on track. Today, I cannot say we are ahead, nor behind in any of this initiatives related to the transactional services pillar.

On on transaction banking, uh, you guys mentioned that the first phase of the online banking platform is already operational and that you're close to, um, boarding, 2 additional correspondent banking clients, at what point should investors, uh, expect to see, uh, these uh, to be reflected in terms of, um, uh, improved, uh, funding cost, uh, in your numbers.

Jorge L. Salas Taurel: Yes. Thank you for that question. It will be in the second part of the plan, Andrés. We're still building capabilities. We have one correspondent bank working with us. Two will join this year. Between five and 10 will join here. The meaningful contribution on cost of funds, you'll see in the second part of the plan. That means years four and five, you'll have meaningful contribution.

Jorge Salas: Yes. Thank you for that question. It will be in the second part of the plan, Andrés. We're still building capabilities. We have one correspondent bank working with us. Two will join this year. Between five and 10 will join here. The meaningful contribution on cost of funds, you'll see in the second part of the plan. That means years four and five, you'll have meaningful contribution.

Speaker #1: Right on track.

Speaker #5: Sounds good. Thank you so much, Jorge.

Speaker #1: Thank you.

Speaker #2: Our next question comes from Ricardo Bris with Matisan. Happy to see increased exposure to Argentina and more recently and El Salvador. Can you provide more color in the nature of exposure in these two countries?

Yes, thank you for that question. Um, it will be in the, in the second, in the second part of, of the plan Andre so. So we're still building, uh, capabilities. We have 1, corresponding Bank, uh, uh, working with us 2 will join, uh, this year, uh, between 5 and 10, will join here, but the meaningful contribution on cost of funds, you'll see in the second part of the plan. That means, uh, years, uh, uh, 4 and 5. You'll have uh, uh,

Meaningful contribution.

Andrés Soto: Thank you, Jorge. We are already four months after the investor day. Where would you say the execution is running ahead of your original expectations, and where it has proven more challenging so far?

Andrés Soto: Thank you, Jorge. We are already four months after the investor day. Where would you say the execution is running ahead of your original expectations, and where it has proven more challenging so far?

Speaker #2: Is this mailing loads to banks and corporates? In a related note, show we expect to see some exposure in Venezuela in the next few quarters?

Jorge L. Salas Taurel: It's been just four months. We are right on track. We're expecting to complete the treasury platform by the end of this year, the first part. Then the second part, H1 of next year. Online banking is on track. Compliance and monitoring systems are also on track. Today, I cannot say we are ahead nor behind in any of these initiatives related to the transactional services pillar. Right on track.

Thank you, Jorge. And, uh, you know, we are really four months, uh, after the investor. Uh, where would you say the execution is running ahead of your original expectations, and where has it proven more challenging so far?

Jorge Salas: It's been just four months. We are right on track. We're expecting to complete the treasury platform by the end of this year, the first part. Then the second part, H1 of next year. Online banking is on track. Compliance and monitoring systems are also on track. Today, I cannot say we are ahead nor behind in any of these initiatives related to the transactional services pillar. Right on track.

Speaker #2: Thank you and congratulations on the continued solid performance.

Speaker #1: Yes. Thank you for your question. Yes. Argentina was mainly oil and gas sector and some of it is short-term imports you know, of gas in in their winter period.

No. Yeah, it's been just 4 months. We are right on track. Uh, we're expecting to complete the, uh, the, the treasury, uh, platform by the end of this year, the first part, and then the second part, uh, uh, you know, first half of next year, um,

Speaker #1: Salvador is mainly short-term financial sector related. Everything within our natural you know, course course of business. Regarding Venezuela, I'm going to say our position remains you know, unchanged.

Online banking is on track; compliance and monitoring systems are also on track today. I cannot say we are ahead nor behind in any of these initiatives related to the transactional services pillar.

Right on track.

Andrés Soto: Sounds good. Thank you so much, Jorge.

Andrés Soto: Sounds good. Thank you so much, Jorge.

Speaker #1: Venezuela might represent an upside scenario over time, but it's not included anywhere in our current projections and and our our exposure today is is zero.

Sounds good.

Jorge L. Salas Taurel: Thank you.

Jorge Salas: Thank you.

Thank you so much for him.

Thank you.

Operator: Our next question comes from Ricardo Briz with Madison. Happy to see increased exposure to Argentina and more recently in El Salvador. Can you provide more color in the nature of exposure in these two countries? Is this mainly loans to banks and corporates? In a related note, should we expect to see some exposure in Venezuela in the next few quarters? Thank you, and congratulations on the continued solid performance.

Operator: Our next question comes from Ricardo Briz with Madison. Happy to see increased exposure to Argentina and more recently in El Salvador. Can you provide more color in the nature of exposure in these two countries? Is this mainly loans to banks and corporates? In a related note, should we expect to see some exposure in Venezuela in the next few quarters? Thank you, and congratulations on the continued solid performance.

Speaker #1: We know the market. It was at some point relevant for blacks approximately 5 percent of our total portfolio a few years ago. And we are continuing to assess the you know, the appropriate timing and and risk return conditions.

Our next question comes from Harlow Breeze with Matis.

Happy to see increased exposure to Argentina, and more recently, to El Salvador. Can you provide more color on the nature of the exposure in these two countries?

Is this, uh, mailing loans to banks and corporates?

Speaker #1: If we reenter, or I'm going to say when we reenter, it will be gradual selective you know, and always consistent with our you know, credit legal and compliance framework.

In our related note, should we expect to see some exposure in Venezuela in the next few quarters? Thank you, and congratulations on the continued solid performance.

Jorge L. Salas Taurel: Yes, thank you for your question. Yes, Argentina was mainly oil and gas sector, and some of it is short-term imports of gas in their winter period. Salvador is mainly a short-term financial sector related. Everything within our natural course of business. Regarding Venezuela, I'm going to say our position remains unchanged. Venezuela might represent an upside scenario over time, but it's not included anywhere in our current projections. Our exposure today is zero. We know the market. It was at some point relevant for Bladex, approximately 5% of our total portfolio a few years ago. We are continuing to assess the appropriate timing and risk-return conditions. If we reenter, or I'm going to say when we reenter, it will be gradual, selective, and always consistent with our credit, legal, and compliance framework.

Jorge Salas: Yes, thank you for your question. Yes, Argentina was mainly oil and gas sector, and some of it is short-term imports of gas in their winter period. Salvador is mainly a short-term financial sector related. Everything within our natural course of business. Regarding Venezuela, I'm going to say our position remains unchanged. Venezuela might represent an upside scenario over time, but it's not included anywhere in our current projections. Our exposure today is zero. We know the market. It was at some point relevant for Bladex, approximately 5% of our total portfolio a few years ago. We are continuing to assess the appropriate timing and risk-return conditions. If we reenter, or I'm going to say when we reenter, it will be gradual, selective, and always consistent with our credit, legal, and compliance framework.

Speaker #2: Our next question comes from Juan Soto with Bank Colombia. How sensitive is the current credit portfolio to a petition's low down in Latin America trade activity or commodity prices?

Yes, thank you for your question. Uh, yes, Argentina was mainly, uh, oil and gas, uh, sector and some of it is short-term imports.

Speaker #2: Operating expenses increased 14 years over a year due to investment in technology, modernization, and personnel. When should investors expect these investments to translate into a treasurable effective gains?

Uh, you know, of gas in their winter period. Uh, Salvador is mainly a short-term, uh, financial sector related—uh, everything within our—

Uh, natural, uh, you know, course of business regarding Venezuela. I'm going to say our position remains, you know, unchanged, uh,

Venezuela might represent an upside scenario over time.

Speaker #1: Okay. So I'm going to tackle the first part of the commodities in Latin America. And Annette, you'll tackle the the expenses part. I mean, we've we've seen volatility in the in the in the oil commodity.

Uh, but it's not included anywhere in our current projections and and our our exposure. Today is zero. Uh, we know the market, uh it was at some point relevant uh for blacks approximately 5% of our total portfolio a few years ago, uh, and we are continuing to assess the, you know, the appropriate timing. Uh,

And, and which returned conditions?

Speaker #1: That's that's the main commodity that that is represents part of our our significant part of our portfolio. The net effect of higher oil prices is generally positive.

Uh, if we reenter—uh, or I'm—I'm going to say when we reenter, it will be gradual, uh, selective, you know, and always consistent with our, uh, you know, credit, legal, and compliance framework.

Speaker #1: For blacks, you know, our longer-term exposure is concentrated in competitive low-cost producers. Where high prices can, you know, strengthen the the cash flows. And reduce credit risk.

Operator: Our next question comes from Juan Soto with Bancolombia. How sensitive is the current credit portfolio to a potential slowdown in Latin America trade activity or commodity prices? Operating expenses increased 14% year-over-year due to investment in technology and personnel. When should investors expect these investments to translate into measurable effective gains?

Operator: Our next question comes from Juan Soto with Bancolombia. How sensitive is the current credit portfolio to a potential slowdown in Latin America trade activity or commodity prices? Operating expenses increased 14% year-over-year due to investment in technology and personnel. When should investors expect these investments to translate into measurable effective gains?

Our next question comes from.

Juan Soto is Bank Columbia.

Speaker #1: While the cargo values can increase, demand and short-term trade financing. So it's overall positive. There are offsets of course, you know, importers may face, you know, higher working capital needs, inflation, and profitability pressure, and severe volatility.

How sensitive is the current credit portfolio to a potential slowdown in Latin America, trade activity, or commodity prices?

Expenses in increases. Um,

14 years over a year, due to the investment in technology.

And personal.

Speaker #1: You know, can tighten the financial the financial conditions. You know, however many many importer exposures are you know, the strong national oil companies that are our clients and have been our clients for decades.

When should investors expect these investments to translate into measurable, effective gains?

Jorge L. Salas Taurel: Hey, Juan, I'm going to talk about the first part of the in Latin America, and Annette, you'll tackle the expenses part. We've seen volatility in the oil commodity. That's the main commodity that represents a significant part of our portfolio. The net effect of higher oil prices is generally positive for Bladex. Our long-term portfolio is concentrated in competitive low-cost producers where high prices can strengthen the cash flows and reduce credit risk, while the cargo values can increase demand and short-term trade financing. It's overall positive. There are offsets. Importers may face higher working capital needs, inflation, and profitability pressure, and severe volatility can tighten the financial conditions. However, many importer exposures are the strong national oil companies that are our clients and have been our clients for decades. The short-term tenor of the portfolio allows us to reprice quickly and reposition if needed.

Jorge Salas: Hey, Juan, I'm going to talk about the first part of the in Latin America, and Annette, you'll tackle the expenses part. We've seen volatility in the oil commodity. That's the main commodity that represents a significant part of our portfolio. The net effect of higher oil prices is generally positive for Bladex. Our long-term portfolio is concentrated in competitive low-cost producers where high prices can strengthen the cash flows and reduce credit risk, while the cargo values can increase demand and short-term trade financing. It's overall positive. There are offsets. Importers may face higher working capital needs, inflation, and profitability pressure, and severe volatility can tighten the financial conditions. However, many importer exposures are the strong national oil companies that are our clients and have been our clients for decades. The short-term tenor of the portfolio allows us to reprice quickly and reposition if needed.

Okay. So I'm going to talk a little about the first part, uh, of the, uh, in Latin America. And, uh, and you tackle the, uh,

Speaker #1: And and the short-term you know, tenor of of the portfolio allows us to to reprice quickly and reposition you know, if needed. So, you know, overall, this is more of a tailwind than a headwind.

The expenses part. Um, I mean,

we we've seen, uh,

volatility in, in the, in the oil, uh,

Commodity—that's, that's the main commodity that, uh,

Speaker #1: And and that's that's the way we see it. We're we're not seeing any slowdown in in the region on the contrary. We're seeing a more and more activity partially because of the you know, shift to the right of very important countries in the region.

That represents, uh, part of our—our significant part of our portfolio. Uh, the net effect of higher oil prices is generally positive, uh, for Bladex.

You know, our long-term transport is concentrated in.

Speaker #1: Annette, you want to tackle the second one?

Competitive low-cost producers, where high prices can, you know, strengthen the cash flows and reduce credit risk.

Speaker #3: Yeah. Regarding your operating expenses questions, I think we can say that we are already seeing tangible efficiency gains from the investment that we have done since the beginning of the the initial strategic plan.

Speaker #3: We have been investing in technology. We have been investing in people. And as you can see, we have bigger teams in the commercial area that are able to originate more sophisticated transactions to make sure the revenues from fee income remains steadily increasing as part of our main components of profitability.

Uh, well, the cargo values can increase demand and short-term trade financing. So it's overall positive, their offsets, uh, of course, you know, importers May face, you know, higher working capital needs in and profitability pressure and severe volatility. You know, can tighten uh, the financial, the financial conditions.

You know, how many important exposures?

Speaker #3: And also, investment in technology, we are already seeing the impact in depreciation expense of the trade platform that was implemented last year. And that is already providing additional income to the bank.

Jorge L. Salas Taurel: Overall, this is more of a tailwind than a headwind, and that's the way we see it. We're not seeing any slowdown in the region. On the contrary, we're seeing more and more activity, partially because of the shift to the right of very important countries in the region. Annette, do you want to tackle the second one?

Jorge Salas: Overall, this is more of a tailwind than a headwind, and that's the way we see it. We're not seeing any slowdown in the region. On the contrary, we're seeing more and more activity, partially because of the shift to the right of very important countries in the region. Annette, do you want to tackle the second one?

Uh, are, you know, the strong National oil companies that are our clients, uh, and have been our clients for decades and, and the short-term, you know, tenor of of the portfolio allows us to to reprise quickly, uh, and reposition, uh, you know if needed. So, you know, overall uh this is more of a Tailwind.

Speaker #3: As you can see, the the trade finance the letter of credit income that we see in the balance sheet is increasing organically in a sustained manner.

Speaker #3: And also allow us to pursue other type of transactions like the one that we did this quarter, which was the structuring of a letter of credit facility that supported part of a project finance transactions that we closed this quarter.

Than a headwind. Uh, and and that's that's the way we see it. We're, we're not seeing any slowdown, uh, uh, uh, in in, in the region. On the contrary we're seeing a more and more activity uh, partially because of the, you know, shift to the right of uh uh very important uh countries in the region.

[Company Representative] (Bladex): Yeah. Juan, regarding your operating expenses questions, I think we can say that we are already seeing tangible efficiency gains from the investment that we have done since the beginning of the initial strategic plan. We have been investing in technology, we have been investing in people. As you can see, we have bigger teams in the commercial area that are able to originate more sophisticated transactions to make sure the revenue from fee income remains steadily increasing as part of our main components of profitability. Also investment in technology. We are already seeing the impact in the depreciation expense of the trade platform that was implemented last year, and that is already bringing additional income to the bank.

Annette van Hoorde: Yeah. Juan, regarding your operating expenses questions, I think we can say that we are already seeing tangible efficiency gains from the investment that we have done since the beginning of the initial strategic plan. We have been investing in technology, we have been investing in people. As you can see, we have bigger teams in the commercial area that are able to originate more sophisticated transactions to make sure the revenue from fee income remains steadily increasing as part of our main components of profitability. Also investment in technology. We are already seeing the impact in the depreciation expense of the trade platform that was implemented last year, and that is already bringing additional income to the bank.

Speaker #3: So the we are already seeing tangible gains our efficiency ratios are still very attractive. I mean, what we're making sure is that what we keep investing in our strategic initiatives and making sure that the return on these are able to to come to to the balance sheet in a short term.

And then, you want to tackle the second one regarding your operating expenses questions. I think we can say that we are already seeing tangible efficiency gains.

Speaker #1: Yeah. Point. I mean, the the investment plan, it's it's designed throughout the plan so that the efficiency ratio is always you know, between the 27 and 29 percent ratio.

From the investment that we have done since the beginning of the the initial strategic plan, we have been investing in technology. We have been investing in people and as you can see, we have bigger teams in the commercial area that are able to originate more sophisticated transactions.

to make sure the revenue from fee income remains steadily increasing as part of our

Speaker #1: So we're you're not going to see a spike in efficiency you know, over 30 percent throughout the plan.

[Company Representative] (Bladex): As you can see, the trade finance, the letter of credit income that we see in the balance sheet is increasing organically in a sustained manner and also allow us to pursue other type of transactions like the one that we did this quarter, which was the structuring of a letter of credit facility that supported part of a project finance transaction that we closed this quarter. We are already seeing tangible gains. Our efficiency ratios are still very attractive. What we're making sure is that we keep investing in our strategic initiatives and making sure that the return on these are able to come through the balance sheet in a short term.

Annette van Hoorde: As you can see, the trade finance, the letter of credit income that we see in the balance sheet is increasing organically in a sustained manner and also allow us to pursue other type of transactions like the one that we did this quarter, which was the structuring of a letter of credit facility that supported part of a project finance transaction that we closed this quarter. We are already seeing tangible gains. Our efficiency ratios are still very attractive. What we're making sure is that we keep investing in our strategic initiatives and making sure that the return on these are able to come through the balance sheet in a short term.

Speaker #3: But just to add to that, and as we share in the investor days, we do expect efficiency ratio as we said in this call to be between 27 and 28 percent towards the end of the year.

Speaker #3: And the year 26 and 27 during the execution and strategic plan is going to have increasing efficiency ratio. And then towards the second half of the strategic plan, as Jorge mentioned, when we're going to see the most impact from the operating deposits then that efficiency ratio will decrease towards 25 to 26 percent.

The main components of the profitability and also investment in technology—we are already seeing the impact in the depreciation expense of the trade platform that was implemented last year, and that is already generating additional income to the bank. As you can see, the trade finance, the letter of credit income that we see in the balance sheet, is increasing organically and in a sustained manner. It is also allowing us to pursue other types of transactions, like the one that we did this quarter, which was the structuring of a letter of credit facility that supported part of a project finance transaction that will close this quarter. So we are already seeing tangible...

Speaker #2: Okay. Thank you very much. That's all the questions we have for today. I'll pass the line back to the Bloodex team for their concluded remarks.

Our efficiency ratios are still very attractive. I mean, what we're making sure is that we keep investing in our certificate initiative and making sure that the return on this is able to come to—

Jorge L. Salas Taurel: Yeah, just to that point, the investments plan, it's designed throughout the plan so that the efficiency ratio is always between 27% and 29%. You're not going to see a spike in efficiency over 30% throughout the plan.

Jorge Salas: Yeah, just to that point, the investments plan, it's designed throughout the plan so that the efficiency ratio is always between 27% and 29%. You're not going to see a spike in efficiency over 30% throughout the plan.

The balance sheet in the short term.

No.

Speaker #1: Yes. Thank you. Thank you all. As I said, this was a this was an excellent quarter. With record results, but more importantly, we are you know, excited to keep seeing strategy turn into tangible results.

Point. I mean that the investment plan,

It's, it's the sign, uh, throughout the plan.

Speaker #1: Thank you all for through participation. And have a good day. Goodbye now.

[Company Representative] (Bladex): Just to add to that, and as we shared in the investor days, we do expect efficiency ratio, as we said in this call, to be between 27% and 28% towards the end of the year. The year 2026 and 2027 during the execution of strategic plan is going to have increasing efficiency ratio. Towards the second half of the strategic plan, as Jorge mentioned, when we're going to see effects from the operating deposits, that efficiency ratio will decrease towards 25% to 26%.

Annette van Hoorde: Just to add to that, and as we shared in the investor days, we do expect efficiency ratio, as we said in this call, to be between 27% and 28% towards the end of the year. The year 2026 and 2027 during the execution of strategic plan is going to have increasing efficiency ratio. Towards the second half of the strategic plan, as Jorge mentioned, when we're going to see effects from the operating deposits, that efficiency ratio will decrease towards 25% to 26%.

Uh, so the efficiency ratio is always, uh, you know, between 27 and 29. Uh, so you're not going to see a spike in efficiency, uh, you know, over 30% throughout the plan.

But just to add to that—and as we share, invest,

is going to have an increase in deficiency ratio. And then towards the

In the second half of the strategic plan, as he mentioned earlier, when we're going to move back from the operating deposits, then that efficiency ratio will decrease towards 25 to 26%.

Operator: Okay. Thank you very much. That's all the questions we have for today. I'll pass the line back to the Bladex team for their concluding remarks.

Operator: Okay. Thank you very much. That's all the questions we have for today. I'll pass the line back to the Bladex team for their concluding remarks.

Okay, thank you very much. That’s all the questions we have for today. I’ll pass the line back to the Bladex team for their concluding remarks.

Jorge L. Salas Taurel: Thank you all. As I said, this was an excellent quarter with record results. More importantly, we are excited to keep seeing strategy turn into tangible results. Thank you all for your participation, and have a good day. Goodbye now.

Jorge Salas: Thank you all. As I said, this was an excellent quarter with record results. More importantly, we are excited to keep seeing strategy turn into tangible results. Thank you all for your participation, and have a good day. Goodbye now.

Goodbye now.

Operator: This concludes today's conference call. You may now disconnect.

Operator: This concludes today's conference call. You may now disconnect.

This concludes today's conference call. You may now disconnect.