Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of November, 2024

Commission File Number 1-11414

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

Business Park Torre V, Ave. La Rotonda, Costa del Este

P.O. Box 0819-08730

Panama City, Republic of Panama

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

						FOREIGN TRADE BANK OF LATIN AMERICA, INC.
						(Registrant)
Date: November 7, 2024			By:			/s/ Ana Graciela de Méndez
			Name:			Ana Graciela de Méndez
			Title:			Chief Financial Officer

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Banco Latinoamericano

de Comercio Exterior, S.A.

and Subsidiaries

Unaudited condensed consolidated interim financial statements as of September 30, 2024, and for the three and nine months ended September 30, 2024 and 2023

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Banco Latinoamericano de Comercio Exterior, S.A.

and Subsidiaries

Contents

Unaudited condensed consolidated interim statement of financial position

Unaudited condensed consolidated interim statement of profit or loss

Unaudited condensed consolidated interim statement of comprehensive income

Unaudited condensed consolidated interim statement of changes in equity

Unaudited condensed consolidated interim statement of cash flows

Notes to the unaudited condensed consolidated interim financial statements

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Unaudited condensed consolidated interim statements of financial position

September 30, 2024

(In thousands of US dollars)

									September 30,						December 31,
									2024						2023
			Notes						(Unaudited)						(Audit)
Assets
Cash and due from banks			3,4,5						1,709,503						2,047,452
Investment securities, net			3,4,6						1,213,329						1,022,131
Loans, net			3,4,7						8,090,061						7,220,520
Customers' liabilities under acceptances			3,4						292,542						261,428
Derivative financial instruments - assets			3,4,10						71,487						157,267
Equipment and leasehold improvements, net									15,985						16,794
Intangible assets, net									3,086						2,605
Other assets			11						16,150						15,595
Total assets									11,412,143						10,743,792
Liabilities and Equity
Liabilities:
Demand deposits									622,932						510,195
Time deposits									5,015,987						3,897,954
			3,4,12						5,638,919						4,408,149
Interest payable									52,973						42,876
Total deposits									5,691,892						4,451,025
Securities sold under repurchase agreements			3,4,13						346,299						310,197
Borrowings and debt, net			3,4,14						3,571,404						4,351,988
Interest payable									40,040						49,217
Lease liabilities			3,15						15,867						16,707
Acceptances outstanding			3,4						292,542						261,428
Derivative financial instruments - liabilities			3,4,10						90,837						40,613
Allowance for losses on loan commitments and financial guarantee   contract			3,4						7,403						5,059
Other liabilities			16						46,039						53,734
Total liabilities									10,102,323						9,539,968
Equity:
Common stock									279,980						279,980
Treasury stock									(105,672)						(110,174)
Additional paid-in capital in excess of value assigned to common stock									122,472						122,046
Capital reserves			22						95,210						95,210
Regulatory reserves			22						145,117						136,019
Retained earnings									763,460						673,281
Other comprehensive income									9,253						7,462
Total equity									1,309,820						1,203,824
Total liabilities and equity									11,412,143						10,743,792

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Unaudited condensed consolidated interim statement of profit or loss

For the three and nine months ended September 30, 2024 and 2023

(In thousands of US dollars, except earnings per share data)

									Three months ended September 30,												Nine months ended September 30,
			Notes						2024						2023						2024						2023
Interest income:
Deposits									22,271						23,173						72,939						56,574
Investment securities									13,082						9,391						36,340						22,353
Loans									163,329						149,869						478,348						406,387
Total interest income			19						198,682						182,433						587,627						485,314
Interest expense:
Deposits									(79,370)						(60,740)						(225,912)						(151,340)
Securities sold under repurchase agreements			13						(3,119)						(2,847)						(9,275)						(7,412)
Borrowings and debt			14						(49,421)						(58,160)						(159,730)						(158,510)
Lease liabilities			15						(142)						(146)						(436)						(434)
Total interest expense			19						(132,052)						(121,893)						(395,353)						(317,696)
Net interest income									66,630						60,540						192,274						167,618
Other income (expense):
Fees and commissions, net			18						10,490						11,109						32,495						22,428
Gain (loss) on financial instruments, net			9						328						22						137						(1,911)
Other income, net									135						106						305						197
Total other income, net			19						10,953						11,237						32,937						20,714
Total revenues									77,583						71,777						225,211						188,332
Provision for credit losses			3,19						(3,548)						(6,488)						(13,261)						(17,510)
Operating expenses:
Salaries and other employee expenses									(14,177)						(14,183)						(37,608)						(33,782)
Depreciation of equipment and leasehold   improvements									(614)						(578)						(1,799)						(1,678)
Amortization of intangible assets									(279)						(217)						(753)						(594)
Other expenses									(5,972)						(4,558)						(17,407)						(14,995)
Total operating expenses			19						(21,042)						(19,536)						(57,567)						(51,049)
Profit for the period									52,993						45,753						154,383						119,773
Per share data:
Basic earnings per share (in US dollars)			17						1.44						1.25						4.20						3.28
Weighted average basic shares (in thousands of shares)			17						36,787						36,531						36,724						36,462

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Unaudited condensed consolidated interim statement of comprehensive income

For the three and nine months ended September 30, 2024

(In thousands of US dollars)

												Three months ended September 30,												Nine months ended September 30,
												2024						2023						2024						2023
Profit for the period												52,993						45,753						154,383						119,773
Other comprehensive income:
Items that are or may be reclassified subsequently to the consolidated statement of profit or loss:
Change in fair value on financial instruments, net of   hedging												9,102						(4,806)						656						(4,698)
Reclassification of gains (losses) on financial   instruments to profit or loss												786						119						1,135						(458)
Other comprehensive income (loss)												9,888						(4,687)						1,791						(5,156)
Total comprehensive income for the period												62,881						41,066						156,174						114,617

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Unaudited condensed consolidated interim statement of changes in equity

For the nine months ended September 30, 2024 and 2023

(In thousands of US dollars)

			Common stock						Treasury stock						Additional paid-in capital in excess of value assigned to common stock						Capital reserves						Regulatory reserves						Retained earnings						Other comprehensive income						Total equity
Balances at January 1, 2023			279,980						(114,097)						120,498						95,210						136,019						543,612						8,125						1,069,347
Profit for the period			—						—						—						—						—						119,773						—						119,773
Other comprehensive income			—						—						—						—						—						—						(5,156)						(5,156)
Issuance of restricted stock			—						1,148						(1,148)						—						—						—						—						—
Compensation cost - stock options and stock units plans			—						—						4,367						—						—						—						—						4,367
Exercised options and stock units vested			—						2,775						(2,775)						—						—						—						—						—
Dividends declared			—						—						—						—						—						(27,354)						—						(27,354)
Balances at September 30, 2023			279,980						(110,174)						120,942						95,210						136,019						636,031						2,969						1,160,977
Balances at January 1, 2024			279,980						(110,174)						122,046						95,210						136,019						673,281						7,462			—			1,203,824
Profit for the period			—						—						—						—						—						154,383						—						154,383
Other comprehensive income			—						—						—						—						—						—						1,791						1,791
Issuance of restricted stock			—						1,038						(1,038)						—						—						—						—						—
Compensation cost - stock options and stock units plans			—						—						4,928						—						—						—						—						4,928
Exercised options and stock units vested			—						3,464						(3,464)						—						—						—						—						—
Dynamic provision			—						—						—						—						9,098						(9,098)						—						—
Dividends declared			—						—						—						—						—						(55,107)						—						(55,107)
Balances at September 30, 2024			279,980						(105,672)						120,735						95,210						136,019						737,958						(635)						1,263,595

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Unaudited condensed consolidated interim statement of cash flows

For the nine months ended September 30, 2024

(In thousands of US dollars)

			Notes			2024						2023
Cash flows from operating activities
Profit for the period						154,383						119,773
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Depreciation of equipment and leasehold improvements						1,799						1,678
Amortization of intangible assets						753						594
Provision for credit losses			3			13,261						17,510
Net gain on sale of financial assets at FVOCI			9			(68)						—
Loss on sale of financial instruments at amortized cost			9			—						3,745
Compensation cost - share-based payment						4,928						4,366
Net changes in hedging position and foreign currency						(27,604)						41,588
Loss on disposal of equipment and leasehold improvements						51						1
Loss on derecognition of intangible assets						—						20
Realized gain on financial instruments at FVTPL			9			(51)						—
Interest income			19			(587,627)						(485,314)
Interest expense			19			395,353						317,696
Changes in operating assets and liabilities:
Pledged deposits						(40,700)						(49,846)
Loans						(899,374)						(122,691)
Other assets						(235)						(6,698)
Due to depositors						1,230,768						1,016,201
Other liabilities						(7,890)						6,190
Cash flows provided by operating activities						237,748						864,813
Interest received						567,660						465,433
Interest paid						(396,798)						(293,129)
Net cash provided by operating activities						408,610						1,037,117
Cash flows from investing activities:
Acquisition of equipment and leasehold improvements						(1,025)						(687)
Acquisition of intangible assets						(1,234)						(975)
Proceeds from the sale of securities at amortized cost						—						54,815
Proceeds from the redemption of securities at amortized cost						225,893						238,824
Proceeds from the redemption of securities at FVOCI						—						78,600
Purchases of securities at FVOCI						(86,449)						—
Purchases of securities at amortized cost						(327,841)						(370,129)
Net cash (used in) provided by investing activities						(190,656)						448
Cash flows from financing activities:
Increase (decrease) in securities sold under repurchase agreements						36,102						(104,878)
Net decrease in short-term borrowings and debt			14			(942,935)						(609,090)
Proceeds from long-term borrowings and debt			14			891,930						355,432
Payments of long-term borrowings and debt			14			(526,278)						(194,524)
Advance of funds for debt repayment			11			—						(102,892)
Payments of lease liabilities			15			(854)						(782)
Dividends paid						(54,568)						(27,267)
Net cash used in financing activities						(596,603)						(684,001)
(Decrease) increase net in cash and cash equivalents						(378,649)						353,564
Cash and cash equivalents at beginning of the period						1,987,068						1,190,936
Cash and cash equivalents at end of the period			5			1,608,419						1,544,500

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

1.Corporate information

Banco Latinoamericano de Comercio Exterior, S. A. (“Bladex Head Office” and together with its subsidiaries “Bladex” or the “Bank”), headquartered in Panama City, Republic of Panama, is a specialized multinational bank established to support the financing of foreign trade and economic integration in Latin America and the Caribbean (the “Region”). The Bank was the result of a proposal brought before the Assembly of Governors of Central Banks in the Region in May of 1975, which recommended the creation of a multinational organization to increase the foreign trade financing capacity of the Region. The Bank was organized in 1977, incorporated in 1978 as a corporation pursuant to the laws of the Republic of Panama, and initiated operations on January 2, 1979. Under a contract law signed in 1978 between the Republic of Panama and Bladex, the Bank was granted certain privileges by the Republic of Panama, including an exemption from payment of income taxes in Panama.

The Bank operates under a general banking license issued by the National Banking Commission of Panama, predecessor of the Superintendence of Banks of Panama (the “SBP”).

In the Republic of Panama, banks are regulated by the SBP through Executive Decree No. 52 of April 30, 2008, which adopts the unique text of Law Decree No. 9 of February 26, 1998, modified by Law Decree No. 2 of February 22, 2008. Banks are also regulated by resolutions and agreements issued by this entity. The main aspects of this law and its regulations include: the authorization of banking licenses, minimum capital and liquidity requirements, consolidated supervision, procedures for management of credit, liquidity and market risks, measures to prevent money laundering, the financing of terrorism and related illicit activities, and procedures for banking intervention and liquidation, among others.

Bladex Head Office’s subsidiaries are the following:

-    Bladex Holdings Inc. is a wholly owned subsidiary, incorporated under the laws of the State of Delaware, United States of America (USA), on May 30, 2000. Bladex Holdings Inc. has ownership in Bladex Representaçao Ltda.

-    Bladex Representaçao Ltda, incorporated under the laws of Brazil on January 7, 2000, acts as the Bank’s representative office in Brazil. Bladex Representaçao Ltda. is 99.999% owned by Bladex Head Office and the remaining 0.001% is owned by Bladex Holdings Inc.

-    Bladex Development Corp. was incorporated under the laws of the Republic of Panama on June 5, 2014. Bladex Development Corp. is 100% owned by Bladex Head Office.

Bladex Head Office has an agency in New York City, USA (the “New York Agency”), which began operations on March 27, 1989. The New York Agency is principally engaged in financing transactions related to international trade, mostly the confirmation and financing of letters of credit for customers in the Region. The New York Agency also has authorization to book transactions through an International Banking Facility (“IBF”).

The Bank has representative offices in Buenos Aires, Argentina; in Mexico City, Mexico; and in Bogota, Colombia, and has a representative license in Lima, Peru.

These condensed consolidated interim financial statements were authorized for issue by the Board of Directors on October 22, 2024.

2.Basis of preparation of the consolidated financial statements

These condensed consolidated interim financial statements of Banco Latinoamericano de Comercio Exterior, S. A. and its subsidiaries have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) issued by the International Accounting Standards Board ("IASB").

As all the disclosures required by IFRS for annual period consolidated financial statements are not included herein, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2023, contained in the Bank’s annual audited consolidated financial statements. The condensed consolidated interim statements of profit or loss, other comprehensive income, changes in equity and cash flows for the periods presented are not necessarily indicative of results expected for any future period.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review

This note presents information about the Bank’s exposure to financial risks:

A. Credit risk

i.Credit quality analysis

The following tables set out information about the credit quality of financial assets measured at amortized cost, and debt instruments at FVOCI. Unless specifically indicated, for financial assets the amounts in the table represent the outstanding gross balances. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively.

Loans at amortized cost, outstanding balance:

			September 30, 2024
			PD Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.05-0.41						3,117,400						—						—						3,117,400
Grades 5 - 6			0.42-3.81						4,152,075						339,709						—						4,491,784
Grades 7 - 8			3.82-34.52						368,005						75,999						6,933						450,937
Grades 9 - 10			34.53-100						—						—						10,107						10,107
									7,637,480						415,708						17,040						8,070,228
Loss allowance									(41,915)						(17,515)						(12,450)						(71,880)
Total									7,595,565						398,193						4,590						7,998,348

			December 31, 2023
			PD Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.03 - 0.74						2,893,562						—						—						2,893,562
Grades 5 - 6			0.75 - 3.80						3,680,969						237,878						—						3,918,847
Grades 7 - 8			3.81 - 34.51						303,445						69,606						—						373,051
Grades 9 - 10			34.52 - 100						—						—						10,107						10,107
									6,877,976						307,484						10,107						7,195,567
Loss allowance									(34,778)						(17,734)						(6,898)						(59,410)
Total									6,843,198						289,750						3,209						7,136,157

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Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)

Loan commitments, financial guarantees issued and customers’ liabilities under acceptances:

			September 30, 2024
			12-month PD Ranges						Stage 1						Stage 2						Stage 3						Total
Commitments and contingencies
Grades 1 - 4			0.05-0.41						376,755						—						—						376,755
Grades 5 - 6			0.42-3.81						679,576						1,405						—						680,981
Grades 7 - 8			3.82-34.52						243,622						8,850						—						252,472
									1,299,953						10,255						—						1,310,208
Customers' liabilities under acceptances
Grades 1 - 4			0.05-0.41						211,493						—						—						211,493
Grades 5 - 6			0.42-3.81						3,405						—						—						3,405
Grades 7 - 8			3.82-34.52						77,644						—						—						77,644
									292,542						—						—						292,542
									1,592,495						10,255						—						1,602,750
Loss allowance									(7,139)						(264)						—						(7,403)
Total									1,585,356						9,991						—						1,595,347

			December 31, 2023
			12-month PD Ranges						Stage 1						Stage 2						Stage 3						Total
Commitments and contingencies
Grades 1 - 4			0.03 - 0.74						457,901						—						—						457,901
Grades 5 - 6			0.75 - 3.80						416,786						24,996						—						441,782
Grades 7 - 8			3.81 - 34.51						160,473						3,550						—						164,023
									1,035,160						28,546						—						1,063,706
Customers' liabilities under acceptances
Grades 1 - 4			0.03 - 0.74						163,438						—						—						163,438
Grades 5 - 6			0.75 - 3.80						2,009						—						—						2,009
Grades 7 - 8			3.81 - 34.51						95,981						—						—						95,981
									261,428						—						—						261,428
									1,296,588						28,546						—						1,325,134
Loss allowance									(3,905)						(1,154)			—			—						(5,059)
Total									1,292,683						27,392						—						1,320,075

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Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)

Securities at amortized cost:

			September 30, 2024
			12-month DP Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.05-0.41						1,010,981						—						—						1,010,981
Grades 5 - 6			0.42-3.81						71,658						19,253						—						90,911
									1,082,639						19,253						—						1,101,892
Loss allowance									(1,159)						(364)						—						(1,523)
Total									1,081,480						18,889						—						1,100,369

			December 31, 2023
			12-month PD Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.03 - 0.74						913,524						—						—						913,524
Grades 5 - 6			0.75 - 3.80						57,674						28,346						—						86,020
									971,198						28,346						—						999,544
Loss allowance									(1,230)						(402)						—						(1,632)
Total									969,968						27,944						—						997,912

Securities at FVOCI:

			September 30, 2024
			12-month PD Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.05-0.41						99,727						—						—						99,727
									99,727						—						—						99,727
Loss allowance									(23)						—						—						(23)
Total									99,704						—						—						99,704

			December 31, 2023
			12-month PD Ranges						Stage 1						Stage 2						Stage 3						Total
Grades 1 - 4			0.03 - 0.74						11,824						—						—						11,824
									11,824						—						—						11,824
Loss allowance									(1)						—						—						(1)
Total									11,823						—						—						11,823

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

The following table presents information of the current and past due balances of loans:

						September 30, 2024						December 31, 2023
Current						8,053,188						7,185,460
Overdue (1)						17,040						10,107
Total						8,070,228						7,195,567

(1) Overdue loans are classified in Stage 3.

The following table presents an analysis of counterparty credit exposures arising from derivative transactions. The Bank's derivative are generally collateralized by cash.

			September 30, 2024
			Notional value USD						Derivative financial instruments - fair value asset						Derivative financial instruments - fair value liabilities
Interest rate swaps			1,204,495						31,428						(1,207)
Cross-currency swaps			1,274,821						40,059						(89,630)
Total			2,479,316						71,487						(90,837)

			December 31, 2023
			Notional value USD						Derivative financial instruments - fair value asset						Derivative financial instruments - fair value liabilities
Interest rate swaps			987,394						11,358						(790)
Cross-currency swaps			1,678,042						145,909						(39,823)
Total			2,665,436						157,267						(40,613)

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

ii.Loss allowances

The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.

Loans at amortized cost:

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2023			34,778						17,734						6,898						59,410
Transfer to lifetime expected credit losses			(235)						(1,238)						1,473						—
Net effect of changes in allowance for expected credit losses			(580)						2,856						2,944						5,220
Financial instruments that have been derecognized during the period			(20,844)						(2,114)						—						(22,958)
New financial assets originated or purchased			28,796						277						—						29,073
Recoveries			—						—						1,135						1,135
Allowance for expected credit losses as of September 30, 2024			41,915						17,515						12,450						71,880

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2022			28,589						5,050						21,561						55,200
Transfer to lifetime expected credit losses			(752)						752						—						—
Net effect of changes in allowance for expected credit losses			(2,363)						11,195						6,481						15,313
Financial instruments that have been derecognized during the year			(17,950)						(879)						—						(18,829)
New financial assets originated or purchased			27,254						1,616						—						28,870
Write-offs			—						—						(21,144)						(21,144)
Allowance for expected credit losses as of December 31, 2023			34,778						17,734						6,898						59,410

13

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Loan commitments, financial guarantee contracts and customers’ liabilities under acceptances:

The allowance for expected credit losses on loan commitments and financial guarantee contracts reflects the Bank’s management estimate of expected credit losses of customers’ liabilities under acceptances and contingent liabilities such as: confirmed letters of credit, stand-by letters of credit, guarantees, and credit commitments.

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2023			3,905						1,154						—						5,059
Transfer to lifetime expected credit losses			(98)						98						—						—
Net effect of changes in reserve for expected credit losses			(46)						102						—						56
Financial instruments that have been derecognized during the period			(2,528)						(1,090)						—						(3,618)
New instruments originated or purchased			5,906						—						—						5,906
Allowance for expected credit losses as of September 30, 2024			7,139						264						—						7,403

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2022			3,605						23						—						3,628
Transfer to lifetime expected credit losses			(24)						24						—						—
Transfer to 12-month expected credit losses			22						(22)						—						—
Net effect of changes in reserve for expected credit losses			(58)						21						—						(37)
Financial instruments that have been derecognized during the year			(2,824)						—						—						(2,824)
New instruments originated or purchased			3,184						1,108						—						4,292
Allowance for expected credit losses as of December 31, 2023			3,905						1,154						—						5,059

14

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities at amortized cost:

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2023			1,230						402						—						1,632
Transfer to lifetime expected credit losses			(21)						21						—						—
Net effect of changes in allowance for expected credit losses			(77)						179						(331)						(229)
Financial instruments that have been derecognized during the year			(317)						(238)						—						(555)
New financial assets originated or purchased			344						—						—						344
Recoveries			—						—						331						331
Allowance for expected credit losses as of September 30, 2024			1,159						364						—						1,523

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2022			2,170						1,779						4,002						7,951
Transfer to lifetime expected credit losses			(46)						46						—						—
Net effect of changes in allowance for expected credit losses			(58)						547						1,252						1,741
Financial instruments that have been derecognized during the year			(1,074)						(218)						—						(1,292)
New financial assets originated or purchased			238						—						—						238
Write-offs			—						(1,752)						(5,254)						(7,006)
Allowance for expected credit losses as of December 31, 2023			1,230						402						—						1,632

Securities at FVOCI:

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2023			1						—						—						1
Net effect of changes in allowance for expected credit losses			1																		1
New financial assets originated or purchased			21						—						—						21
Allowance for expected credit losses as of September 30, 2024			23						—						—						23

15

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

			Stage 1						Stage 2						Stage 3						Total
Allowance for expected credit losses as of December 31, 2022			10						—						—						10
Financial instruments that have been derecognized during the year			(11)						—						—						(11)
New financial assets originated or purchased			2						—						—						2
Allowance for expected credit losses as of December 31, 2023			1						—						—						1

The loss allowance for losses for securities at FVOCI as of September 30, 2024 and December 31, 2023 for $23 thousand and $1 thousand, respectively are included in Other comprehensive income.

The following table provides a reconciliation between:

–Amounts shown in the previous tables reconciling opening and closing balances of loss allowance per class of financial instrument; and

–The provision for credit losses’ line item in the condensed consolidated interim statement of profit or loss.

September 30, 2024			Loans									Loan commitments and financial guarantee contracts						Securities												Total
			At amortized cost																		At amortized cost						FVOCI
Net effect of changes in allowance for expected credit losses			5,220												56						(229)						1						5,048
Financial instruments that have been derecognized during the period			(22,958)												(3,618)						(555)						—						(27,131)
New financial assets originated or purchased			29,073												5,906						344						21						35,344
Total			11,335												2,344						(440)						22						13,261

September 30, 2023			Loans									Loan commitments and financial guarantee contracts						Securities												Total
			At amortized cost																		At amortized cost						FVOCI
Net effect of changes in allowance for expected credit losses			8,594												46						1,596						—						10,236
Financial instruments that have been derecognized during the period			(15,353)												(2,752)						(1,044)						(10)						(19,159)
New financial assets originated or purchased			22,604												3,620						209						—						26,433
Total			15,845												914						761						(10)						17,510

16

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iii.Credit-impaired financial assets

Credit-impaired loans and advances are graded 8 to 10 in the Bank’s internal credit risk grading system.

The following table sets out a reconciliation of changes in the carrying amount of the allowance for credit losses for credit-impaired financial assets:

Loans at amortized cost:			September 30, 2024						December 31, 2023
Credit-impaired loans at beginning of period			6,898						21,561
Classified as credit-impaired during the period			1,473						—
Change in allowance for expected credit losses			2,832						6,181
Interest income			112						300
Write-offs			—						(21,144)
Recoveries			1,135						—
Credit-impaired loans at end of period			12,450						6,898

Securities at amortized cost:			September 30, 2024						December 31, 2023
Investments at amortized cost with credit impairment at beginning of period			—						4,002
Change in allowance for expected credit losses			(331)						1,249
Interest income			—						3
Write-offs			—						(5,254)
Recoveries			331						—
Credit-impaired for investments at amortized cost at end of period			—						—

17

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iv.Concentrations of credit risk

The Bank monitors concentrations of credit risk by sector, industry and country. An analysis of concentrations of credit risk from loans, loan commitments, financial guarantees and securities is as follows.

Concentration by sector and industry at amortized cost:

			Loans at amortized cost												Loan commitments, financial guarantee contracts and acceptances outstanding												Securities at amortized cost
			September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023
Carrying amount - principal			8,070,228						7,195,567						292,542						261,428						1,101,892						999,544
Amount committed/guaranteed			—						—						1,310,208						1,063,706						—						—
Concentration by sector
Corporations:
Private			3,961,584						3,192,357						817,840						727,379						640,522						582,877
State-owned			1,242,747						1,204,471						113,916						115,542						11,862						20,619
Financial institutions:
Private			2,368,348						2,248,150						126,504						97,381						340,636						311,870
State-owned			428,287						464,917						544,490						384,832						28,265						35,149
Sovereign			69,262						85,672						—						—						80,607						49,029
Total			8,070,228						7,195,567						1,602,750						1,325,134						1,101,892						999,544
Concentration by industry
Financial institutions			2,796,635						2,713,067						670,995						482,213						385,050						351,463
Manufacturing			2,121,372						1,702,514						492,356						464,433						381,356						346,140
Oil and petroleum derived products			1,336,128						1,330,526						115,095						106,518						87,874						95,144
Agricultural			351,425						239,498						35,467						22,546						—						—
Services			553,421						465,113						160,514						108,632						118,805						84,840
Mining			290,552						328,415						42,056						26,329						19,498						9,690
Sovereign			69,262						85,672						—						—						44,329						49,029
Other			551,433						330,762						86,267						114,463						64,980						63,238
Total			8,070,228						7,195,567						1,602,750						1,325,134						1,101,892						999,544

Concentration by sector and industry at fair value OCI:

									Securities FVOCI
																		September 30, 2024						December 31, 2023
Carrying amount - principal																		99,727						11,824
Concentration by sector
Financial institutions:
State-owned																		99,727						11,824
Total																		99,727						11,824
Concentration by industry
Financial institutions																		99,727						11,824
Total																		99,727						11,824

18

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Risk rating and concentration by country financial instruments at amortized cost:

			Loans at amortized cost												Commitments, financial guarantee contracts and acceptances outstanding												Securities at amortized cost
			September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023
Carrying amount - principal			8,070,228						7,195,567						292,542						261,428						1,101,892						999,544
Amount committed/guaranteed			—						—						1,310,208						1,063,706						—						—
Concentration by country
Argentina			89,649						52,264						49,794						—						—						—
Australia			—						—						—						—						9,777						4,803
Belgium			17,631						14,223						—						—						14,858						—
Bolivia			—						—						3,550						4,270						—						—
Brazil			1,153,640						1,008,633						212,135						83,932						23,930						31,009
Canada			17,256						22,599						25,723						24,996						35,310						38,508
Chile			438,947						454,885						40,783						16,423						27,594						79,495
China			15,000						15,000						—						—						—						—
Colombia			1,028,887						938,897						75,630						67,545						14,923						23,837
Costa Rica			356,112						284,709						48,431						51,895						7,998						7,988
Denmark			1,149						—						—						—						—						—
Dominican Republic			822,134						637,199						158,727						157,986						—						4,705
Ecuador			198,266						190,628						276,323						259,597						—						—
El Salvador			65,163						82,500						—						—						—						—
France			78,036						27,454						49,980						96,249						9,935						—
Germany			—						—						15,000						15,000						29,595						14,750
Guatemala			869,204						704,012						108,141						100,227						—						—
Honduras			220,362						221,672						1,425						975						—						—
Ireland			—						—						—						—						14,280						14,976
Israel			—						—						—						—						—						4,788
Italy			—						—						—						—						14,542						14,660
Jamaica			68,756						101,858						—						—						—						—
Japan			10,031						12,037						—						—						53,690						38,548
Korea			—						—						—						—						14,266						1,839
Luxembourg			—						89,833						—						—						—						—
Mexico			913,231						838,495						116,716						83,561						45,631						62,229
Netherlands			—						—						19,601						800						—						—
Norway			—						—						—						—						9,781						9,838
Panama			364,259						374,364						34,660						29,301						70,486						33,977
Paraguay			182,362						186,426						250						230						—						—
Peru			570,525						536,236						269,916						223,460						30,501						30,635
Puerto Rico			26,861						—						10,000						—						—						—
Singapore			262,807						145,807						25,302						7,057						—						—
Trinidad and Tobago			120,496						132,783						18,000						—						—						—
Sweden			—						—						—						—						13,550						—
United States of America			103,379						74,139						1,320						—						622,788						539,727
United Kingdom			36,404						37,314						—						—						38,457						43,232
Uruguay			39,681						11,600						41,343						101,630						—						—
Multilateral			—						—						—						—						—						—
Total			8,070,228						7,195,567						1,602,750						1,325,134						1,101,892						999,544

19

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Risk rating and concentration by country financial instruments at fair value OCI:

												Securities at FVOCI
																		September 30, 2024						December 31, 2023
Carrying amount - principal																		99,727						11,824
Concentration by country
Multilateral																		99,727						11,824
Total																		99,727						11,824

v.Offsetting financial assets and liabilities

The following tables include financial assets and liabilities that are offset in the condensed consolidated interim financial statement or subject to an enforceable master netting arrangement:

Derivative financial instruments – assets:

			September 30, 2024
			Gross amounts of assets						Gross amounts offset in the consolidated statement of financial position						Net amount of assets presented in the consolidated statement of financial position						Gross amounts not offset in the consolidated statement of financial position												Net amount
																					Financial instruments						Cash collateral received
Derivative financial instruments used for hedging			71,487						—						71,487						—						(33,250)						38,237
Total			71,487						—						71,487						—						(33,250)						38,237

			December 31, 2023
			Gross amounts of assets						Gross amounts offset in the consolidated statement of financial position						Net amount of assets presented in the consolidated statement of financial position						Gross amounts not offset in the consolidated statement of financial position												Net amount
																					Financial instruments						Cash collateral received
Derivative financial instruments used for hedging			157,267						—						157,267						—						(152,111)						5,156
Total			157,267						—						157,267						—						(152,111)						5,156

20

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities sold under repurchase agreements and derivative financial instruments – liabilities:

						September 30, 2024
						Gross amounts of liabilities						Gross amounts offset in the consolidated statement of financial position						Net amount of assets presented in the consolidated statement of financial position						Gross amounts not offset in the consolidated statement of financial position												Net amount
																								Financial instruments						Cash collateral received
Securities sold under repurchase agreements at amortized cost						(346,299)						—						(346,299)						371,088						1,851						26,640
Derivative financial instruments used for hedging at FVTPL						(90,837)						—						(90,837)						—						72,633						(18,204)
Total						(437,136)						—						(437,136)						371,088						74,484						8,436

						December 31, 2023
						Gross amounts of liabilities						Gross amounts offset in the consolidated statement of financial position						Net amount of assets presented in the consolidated statement of financial position						Gross amounts not offset in the consolidated statement of financial position												Net amount
																								Financial instruments						Cash collateral received
Securities sold under repurchase agreements at amortized cost						(310,197)						—						(310,197)						342,271						8,087						40,161
Derivative financial instruments used for hedging at FVTPL						(40,613)						—						(40,613)						—						34,297						(6,316)
Total						(350,810)						—						(350,810)						342,271						42,384						33,845

21

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

    

B.Liquidity risk

i.Exposure to liquidity risk

The key measure used by the Bank for managing liquidity risk is the ratio of net liquid assets to deposits from customers and funding with a a remaining tenor of 30 days. For this purpose, ‘net liquid assets’ include cash and cash equivalents which consist of deposits from banks and customers, as well as corporate debt securities with investment grade. The following table details the Bank's liquidity ratios:

			September 30, 2024						December 31, 2023
At the end of the period			196.57		%				205.80		%
Period average			192.12		%				177.20		%
Maximum of the period			335.28		%				357.00		%
Minimun of the period			107.20		%				111.50		%

The following table includes the Bank’s liquid assets by country risk:

			September 30, 2024																		December 31, 2023
(in millions of USD dollars)			Cash and due from banks						Securities FVOCI						Total						Cash and due from banks						Securities FVOCI						Total
United State of America			1,487						—						1,487						1,904						—						1,904
Other O.E.C.D countries			41						—						41						—						—						—
Latin America			5						—						5						7						—						7
Other countries			—						—						—						1						—						1
Multilateral			75						100						175						75						12						87
Total			1,608						100						1,708						1,987						12						1,999

The following table includes the Bank’s demand deposits from customers and its ratio to total deposits from customers:

			September 30, 2024						December 31, 2023
(in millions of USD dollars)
Demand and "overnight" deposits			1,026						748
Demand and "overnight" deposits to total deposits			18.19		%				17.00		%

The liquidity requirements resulting from the Bank’s demand deposits from customers is satisfied by the Bank’s liquid assets as follows:

			September 30, 2024						December 31, 2023
(in millions of USD dollars)
Total liquid assets			1,708						1,999
Total assets to total liabilities			30.29		%				45.40		%
Total liquid assets in the Federal    Reserve of the United States of America			74.76		%				94.30		%

22

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

Even though the average term of the Bank’s assets exceeds the average term of its liabilities, the associated liquidity risk is diminished by the short-term nature of a significant portion of the loan portfolio, since the Bank is primarily engaged in financing foreign trade.

The following table includes the carrying amount for the Bank’s loans and securities short-term portfolio with maturity within one year based on their original contractual term along with its average remaining term:

			September 30, 2024						December 31, 2023
(in millions of USD dollars)
Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year according to its original terms			5,088						4,087
Average term (days)			197						197

The following table includes the carrying amount for the Bank’s loans and securities medium term portfolio with maturity over one year based on their original contractual terms along with their average remaining term:

			September 30, 2024						December 31, 2023
(in millions of USD dollars)
Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms			4,184						4,119
Average term (days)			1402						1381

23

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

ii.Maturity analysis for financial liabilities and financial assets

The following table details the future undiscounted cash flows of financial assets and liabilities grouped by their remaining maturity with respect to the contractual maturity:

						September 30, 2024
						Up to 3 months						3 to 6 months						6 months to 1 year						1 to 5 years						More than 5 years						Gross inflows (outflows)						Carrying amount
Assets
Cash and due from banks						1,705,477						—						5,286						—						—						1,710,763						1,709,503
Securities, net						44,793						84,980						132,328						1,050,635						50,901						1,363,637						1,213,329
Loans, net						2,699,688						1,639,245						1,906,064						2,324,366						213,908						8,783,271						8,090,061
Derivative financial instruments - assets						21,404						892						23,681						18,767						6,743						71,487						71,487
Total						4,471,362						1,725,117						2,067,359						3,393,768						271,552						11,929,158						11,084,380
Liabilities
Deposits						(4,307,905)						(1,090,880)						(305,424)						(37,306)						—						(5,741,515)						(5,691,892)
Securities sold under repurchase agreements						(279,002)						—						—						(68,958)						—						(347,960)						(346,299)
Borrowings and debt						(672,344)						(263,550)						(843,129)						(1,699,943)						(100,544)						(3,579,510)						(3,571,404)
Interest payable - Borrowings and debt						(43,544)						(40,205)						(81,675)						(213,129)						(8,800)						(387,353)						(40,040)
Lease liabilities						(284)						(292)						(594)						(4,740)						(9,957)						(15,867)						(15,867)
Derivative financial instruments - liabilities						(4,427)						(1,664)						(329)						(70,600)						(13,817)						(90,837)						(90,837)
Total						(5,307,506)						(1,396,591)						(1,231,151)						(2,094,676)						(133,118)						(10,163,042)						(9,756,339)
Subtotal net position						(836,144)						328,526						836,208						1,299,092						138,434						1,766,116						1,328,041
Off-balance sheet contingencies
Confirmed letters of credit						248,452						134,737						26,453						—						—						409,642
Stand-by letters of credit and guarantees						94,550						186,147						198,820						42,610						—						522,127
Loans and letter of credit commitments						121,109						40,339						10,333						196,288						10,370						378,439
Total						464,111						361,223						235,606						238,898						10,370						1,310,208
Total net position						(1,300,255)						(32,697)						600,602						1,060,194						128,064						455,908

24

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)            

						December 31, 2023
						Up to 3 months						3 to 6 months						6 months to 1 year						1 to 5 years						More than 5 years						Gross inflows (outflows)						Carrying amount
Assets
Cash and due from banks						2,048,021						—						—						—						—						2,048,021						2,047,452
Securities, net						10,992						89,836						110,816						886,944						32,117						1,130,705						1,022,131
Loans, net						1,935,474						1,775,280						1,524,298						2,580,310						243,491						8,058,853						7,220,520
Derivative financial instruments - assets						2,510						5,783						54,983						90,516						3,473						157,265						157,267
Total						3,996,997						1,870,899						1,690,097						3,557,770						279,081						11,394,844						10,447,370
Liabilities
Deposits						(3,270,253)						(536,751)						(606,002)						(90,194)						—						(4,503,200)						(4,451,025)
Securities sold under repurchase agreements						(317,951)						—						—						—						—						(317,951)						(310,197)
Borrowings and debt						(775,691)						(675,928)						(896,342)						(1,963,189)						(54,126)						(4,365,276)						(4,351,988)
Interest payable - Borrowings and debt						(80,775)						(70,386)						(93,338)						(204,431)						(5,636)						(454,566)						(49,217)
Lease liabilities						(284)						(286)						(572)						(4,728)						(10,837)						(16,707)						(16,707)
Derivative financial instruments - liabilities						(17,188)						(1,994)						(7,849)						(11,661)						(2,034)						(40,726)						(40,613)
Total						(4,462,142)						(1,285,345)						(1,604,103)						(2,274,203)						(72,633)						(9,698,426)						(9,219,747)
Subtotal net position						(465,145)						585,554						85,994						1,283,567						206,448						1,696,418						1,227,623
Off-balance sheet contingencies
Confirmed letters of credit						264,603						64,100						345						16,560						—						345,608
Stand-by letters of credit and guarantees						196,775						79,659						199,192						15,000						—						490,626
Loans and letter of credit commitments						20,000						39,497						37,546						130,430						—						227,472
Total						481,378						183,256						237,082						161,990						—						1,063,706
Total net position						(946,523)						402,298						(151,088)						1,121,577						206,448						632,712

25

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

The amounts in the tables above have been compiled as follows:

Type of financial instrument						Basis on which amounts are compiled
Financial assets and liabilities						Undiscounted cash flows, which include estimated interest payments.
Issued financial guarantee contracts, and loan commitments						Earliest possible contractual maturity. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called.
Derivative financial assets and financial liabilities						Contractual undiscounted cash flows. The amounts shown are the gross nominal inflows and outflows for derivatives that simultaneously settle gross or net amounts.

Future undiscounted cash flow presented in the table above on some financial assets and financial liabilities vary materially from contractual cash flows. The principal difference is that the undiscounted future cash flows of floating rate assets and liabilities are calculated using projected market rates.

iii.Liquidity reserves

As part of the management of liquidity risk arising from financial liabilities, the Bank holds liquid assets comprising cash and cash equivalents.

The following table sets out the components of the Banks’s liquidity reserves:

			September 30, 2024												December 31, 2023
			Amount						Fair value						Amount						Fair value
Balances with Federal Reserve of the United States of America			1,276,957						1,276,957						1,884,204						1,884,204
Cash and balances with other bank (1)			331,462						331,462						102,864						102,864
Total Liquidity reserves			1,608,419						1,608,419						1,987,068						1,987,068

(1)Excludes pledged deposits.

iv.Financial assets available to support future funding

The following table sets out the Bank’s financial assets available to support future funding:

			September 30, 2024												December 31, 2023
			Guaranteed						Available as collateral						Guaranteed						Available as collateral
Cash and due from banks			101,084						1,608,419						60,384						1,987,068
Notional of investment securities			563,058						672,689						400,825						619,533
Loans at amortized cost			—						8,070,228						—						7,195,567
Total assets			664,142						10,351,336						461,209						9,802,168

26

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk

The Bank manages market risk by considering the consolidated financial situation of the Bank.

i.Interest rate risk

The table below details the Bank's exposure based on interest rate repricing/maturity date for the notional amount of the interest bearing financial assets and liabilities on interest-bearing financial assets and liabilities:

			September 30, 2024
			Up to 3 months						3 to 6 months						6 months to 1 year						1 to 5 years						More than 5 years						Without interest rate risk						Total
Assets
Cash and due from banks			1,696,309						—						5,000						—						—						8,194						1,709,503
Securities			43,871						83,440						126,988						914,326						32,994						—						1,201,619
Loans			4,601,420						1,885,905						1,187,664						334,758						60,481						—						8,070,228
Total			6,341,600			—			1,969,345			—			1,319,652			—			1,249,084			—			93,475			—			8,194						10,981,350
Liabilities
Demand deposits and time deposits			(4,369,115)						(954,284)						(287,556)						(27,825)						—						(139)						(5,638,919)
Securities sold under repurchase agreements			(310,742)						—						(35,557)						—						—						—						(346,299)
Borrowings and debt			(2,316,319)						(360,792)						(720,825)						(173,468)						—						—						(3,571,404)
Total			(6,996,176)			—			(1,315,076)			—			(1,043,938)			—			(201,293)			—			—			—			(139)						(9,556,622)
Net effect of derivative financial instruments held for interest risk management			(32,988)						(1,635)						22,974						(7,701)						—						—						(19,350)
Total interest rate sensitivity			(687,564)			—			652,634			—			298,688			—			1,040,090			—			93,475			—			8,055						1,405,378

27

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

			December 31, 2023
			Up to 3 months						3 to 6 months						6 months to 1 year						1 to 5 years						More than 5 years						Without interest rate risk						Total
Assets
Cash and due from banks			2,044,103						—						—						—						—						3,349						2,047,452
Securities			14,169						60,256						82,951						824,836						29,156						—						1,011,368
Loans			4,292,324						1,699,301						915,143						280,005						8,794						—						7,195,567
Total			6,350,596						1,759,557						998,094						1,104,841						37,950						3,349						10,254,387
Liabilities
Demand deposits and time deposits			(3,553,774)						(442,338)						(342,686)						(59,029)						—						(10,322)						(4,408,149)
Securities sold under repurchase agreements			(310,197)						—						—						—						—						—						(310,197)
Borrowings and debt			(2,653,379)						(381,795)						(483,731)						(818,947)						(14,136)						—						(4,351,988)
Total			(6,517,350)						(824,133)						(826,417)						(877,976)						(14,136)						(10,322)						(9,070,334)
Net effect of derivative financial instruments held for interest risk management			(3,485)						3,790						47,134						78,855						1,439						—						127,733
Total interest rate sensitivity			(170,239)						939,214						218,811						305,720						25,253						(6,973)						1,311,786

Interest rate sensitivity analysis affect reported equity in the following ways:

-    Retained earnings: increases or decreases in net interest income and in fair values of derivatives reported in profit or loss;

-    Fair value reserve: increases or decreases in fair values of financial assets at FVOCI reported directly in equity; and

-    Hedging reserve: increases or decreases in fair values of hedging instruments designated in qualifying cash flow hedge relationships.

This sensitivity provides an analysis of changes in interest rates, considering the previous year´s interest rate volatility.

Additionally, the Bank measures the sensitivity of the equity value (EVE) following the methodology described by the Basel Committee on Banking Supervision, which measures the interest rate risk embedded in the equity value, which for interest rate risk purposes is defined as the difference between the net present value of assets less the net present value of liabilities due, based on the impact of a change in interest rates on such present values.

The following table presents the sensitivity analysis performed for the Bank:

    

			Change in interest rate						Effect on profit or loss						Effect on equity						Effect on equity value (EVE)
September 30, 2024			+50 bps						(866)						3,182						(17,874)
			-50 bps						648						(3,257)						18,173
December 31, 2023			+50 bps						1,669						3,881						(9,047)
			-50 bps						(1,786)						(2,861)						9,199

28

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

ii.     Foreign exchange risk

The following table presents the maximum exposure amount in foreign currency of the Bank’s carrying amount of total assets and liabilities, except for hedging relationships

			September 30, 2024
			Brazilian Real						European Euro						Japanese Yen						Colombian Peso						Mexican Peso						Other Currencies (1)						Total
Exchance rate			5.59						1.07						160.82						4,149.38						18.31
Assets
Cash and due from banks			27						266						2						35						2,285						11						2,626
Loans			—						29,688						—						—						267,938						—						297,626
Total Assets			27						29,954						2						35						270,223						11						300,252
Liabilities
Borrowings and debt			—						(29,614)						—						—						(269,799)						—						(299,413)
Total liabilities			—						(29,614)						—						—						(269,799)						—						(299,413)
Net currency position			27						340						2						35						424						11						839

			December 31, 2023
			Brazilian Real						European Euro						Japanese Yen						Colombian Peso						Mexican Peso						Other Currencies (1)						Total
Exchance rate			4.85						1.10						141.00						3,875.97						16.98
Assets
Cash and due from banks			10						387						45						35						1,314						14						1,805
Loans			—						30,360						—						—						304,529						—						334,889
Total Assets			10						30,747						45						35						305,843						14						336,694
Liabilities
Borrowings and debt			—						(30,360)						—						—						(305,631)						—						(335,991)
Total liabilities			—						(30,360)						—						—						(305,631)						—						(335,991)
Net currency position			10						387						45						35						212						14						703

(1)It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Costa Rican colones and Peruvian soles.

.

29

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments

A.Recurring fair value measurements

Financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy are described below:

			September 30, 2024
			Level 1						Level 2						Level 3						Total
Assets
Securities and other financial assets:
Securities at FVOCI - Corporate debt			—						101,219						—						101,219
Loans at FVOCI			—						—						—						—
Total securities and other financial assets			—						101,219						—						101,219
Derivative financial instruments - assets:
Interest rate swaps			—						31,428						—						31,428
Cross-currency swaps			—						40,059						—						40,059
Total derivative financial instrument assets			—						71,487						—						71,487
Total assets at fair value			—						172,706						—						172,706
Liabilities
Derivative financial instruments - liabilities:
Interest rate swaps			—						1,207						—						1,207
Cross-currency swaps			—						89,630						—						89,630
Total derivative financial instruments - liabilities			—						90,837						—						90,837
Total liabilities at fair value			—						90,837						—						90,837

			December 31, 2023
			Level 1						Level 2						Level 3						Total
Assets
Securities and other financial assets:
Securities at FVOCI - Corporate debt			—						11,865						—						11,865
Total securities and other financial assets			—						11,865						—						11,865
Derivative financial instruments - assets:
Interest rate swaps			—						11,358						—						11,358
Cross-currency swaps			—						145,909						—						145,909
Total derivative financial instrument assets			—						157,267						—						157,267
Total assets at fair value			—						169,132						—						169,132
Liabilities
Derivative financial instruments - liabilities:
Interest rate swaps			—						790						—						790
Cross-currency swaps			—						39,823						—						39,823
Total derivative financial instruments - liabilities			—						40,613						—						40,613
Total liabilities at fair value			—						40,613						—						40,613

30

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments (continued)

B.Non-recurring fair value measurements

The following table provides information on the carrying value and the estimated fair value of the Bank’s financial instruments that are not measured at fair value:

			September 30, 2024
			Carrying amount						Fair value						Level 1						Level 2						Level 3
Assets
Cash and deposits in banks			1,709,503						1,709,503						—						1,709,503						—
Securities at amortized cost (1)			1,112,110						1,121,773						—						1,121,773						—
Loans at amortized cost (2)			8,090,061						8,301,428						—						8,301,428						—
Customers' liabilities under acceptances			292,542						292,542						—						292,542						—
Liabilities
Deposits			5,691,892						5,691,892						—						5,691,892						—
Securities sold under repurchase agreements			346,299						346,299						—						346,299						—
Borrowings and debt, net			3,571,404						3,626,857						—						3,626,857						—
Acceptances outstanding			292,542						292,542						—						292,542						—

			December 31, 2023
			Carrying amount						Fair value						Level 1						Level 2						Level 3
Assets
Cash and deposits in banks			2,047,452						2,047,452						—						2,047,452						—
Securities at amortized cost (1)			1,010,266						997,341						—						997,341						—
Loans at amortized cost, net (2)			7,220,520						7,267,429						—						7,267,429						—
Customers' liabilities under acceptances			261,428						261,428						—						261,428						—
Liabilities
Deposits			4,451,025						4,451,025						—						4,451,025						—
Securities sold under repurchase agreements			310,197						310,197						—						310,197						—
Borrowings and debt, net			4,351,988						4,357,271						—						4,357,271						—
Acceptances outstanding			261,428						261,428						—						261,428						—

(1)As a September 30, 2024, securities at amortized cost is net of interest receivable of $11.7 million (2023: $12.4 million) and the allowance for expected credit losses of $1.5 million (2023: $1.6 million).

(2)As a September 30, 2024, loans at amortized cost is net of interest receivable of $118.5 million (2023: $109.1 million), the allowance for expected credit losses of $71.9 million (2023: $59.4 million) and unearned interest and deferred fees of $26.8 million (2023: $24.7 million).

31

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

5.Cash and due from banks

The following table presents the details of interest-bearing deposits in banks and restricted deposits:

			September 30, 2024						December 31, 2023
Demand Deposits (1)			1,612,903						1,969,102
Time deposits			96,600						78,350
Total cash and due from banks			1,709,503						2,047,452
Less time deposits with original maturity over 90 days and other restricted deposits (2)			101,084						60,384
Total cash and cash equivalents			1,608,419						1,987,068

The following table presents the pledged and restricted deposits classified by country risk:

			September 30, 2024						December 31, 2023
Canada			—						5,342
Chile			20,000						—
Germany			21,913						5,775
Japan			10,410						14,820
Panama			1,600						—
Switzerland			—						13,747
United States of America(2)			47,161						20,700
Total			101,084						60,384

(1) Demand deposits includes $1,277 millions at Federal Reserve of United States of America.

(2) As a September 30, 2024 includes restricted deposit of $25.0 million (2023: $18.0 million) with the New York State Department of Financial Services under March 1994 legislation and margin call deposits collateralizing derivative financial instrument transactions.

32

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

6.Investments securities

Securities are presented as follows:

September 30, 2024						Amortized cost						FVOCI(1)																		Total
Principal						1,101,892						99,727																		1,201,619
Interest receivable						11,741						1,492																		13,233
Loss allowance (1)						(1,523)						—																		(1,523)
						1,112,110						101,219																		1,213,329

December 31, 2023						Amortized cost						FVOCI(1)																		Total
Principal						999,544						11,824																		1,011,368
Interest receivable						12,354						41																		12,395
Loss allowance (1)						(1,632)						—																		(1,632)
						1,010,266						11,865																		1,022,131

(1)As of September 30, 2024 and December 31, 2023, the loss allowance for losses for securities at FVOCI for $23 thousand and $1 thousand, respectively are included in equity in the consolidated statement of financial position in the line Other comprehensive income.

Securities by contractual maturity are shown in the following table:

September 30, 2024						Amortized cost						FVOCI																		Total
Due within 1 year						224,225						30,075																		254,300
After 1 year but within 5 years						844,673						69,652																		914,325
After 5 years but within 10 years						32,994						—																		32,994
Balance - principal						1,101,892						99,727																		1,201,619

December 31, 2023						Amortized cost						FVOCI																		Total
Due within 1 year						157,376						—																		157,376
After 1 year but within 5 years						813,012						11,824																		824,836
After 5 years but within 10 years						29,156						—																		29,156
Balance - principal						999,544						11,824																		1,011,368

The following table includes the securities pledged to secure repurchase transactions (see note 13):

			September 30, 2024																		December 31, 2023
Securities pledged to secure repurchase transactions			371,088																		342,271
Securities sold under repurchase agreements			(346,299)																		(310,197)

As of December 31, 2023, sales were made for $63.5 million of investments at amortized cost classified as Stage 2 with a significant increase in their credit risk. These sales resulted in write-off against reserves of $7 million and losses on sale of $3.9 million attributable to market risk. These sales were made based on compliance with the Bank's strategy to manage the credit risk of its investment portfolio.

33

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

7.Loans

The following table presents the loan portfolio according to its classification and subsequent measurement:

September 30, 2024			Amortized cost						FVOCI						FVTPL						Total
Loans, outstanding balance			8,070,228						—						—						8,070,228
Interest receivable			118,488						—						—						118,488
Loss allowance			(71,880)						—						—						(71,880)
Unearned interest and deferred fees			(26,775)						—						—						(26,775)
Loans, net			8,090,061						—						—						8,090,061

December 31, 2023			Amortized cost						FVOCI						FVTPL						Total
Loans, outstanding balance			7,195,567						—						—						7,195,567
Interest receivable			109,082						—						—						109,082
Loss allowance			(59,410)						—						—						(59,410)
Unearned interest and deferred fees			(24,719)						—						—						(24,719)
Loans, net			7,220,520						—						—						7,220,520

The Bank sold financial instruments measured at FVTPL and FVOCI for $27 million and $20 million respectively, realizing a     gain of $51 thousand and $68 thousand respectively recognized in the line item gain (loss) on financial instruments, net.

The fixed and floating interest rate distribution of the loan portfolio is as follows:

			September 30, 2024						December 31, 2023
Fixed interest rate			4,878,583						3,828,485
Floating interest rates			3,191,645						3,367,082
Total			8,070,228						7,195,567

As of September 30, 2024, 71.45% (2023:71.00%) of the loan portfolio at fixed interest rates has remaining maturities of less than 180 days. Interest rates on loans ranges from 2.80% to 15.64% (2023:1.95% to16.10%).

The following table details information relating to loans granted to class A and B shareholders:

			September 30, 2024						December 31, 2023
Loans to class A and B shareholders			574,500						397,300
% Loans to class A and B shareholders over total loan portfolio			7		%				6		%
% Class A and B stockholders with loans over number of class A and B stockholders			13		%				10		%

34

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

8.Loan commitments and financial guarantee contracts

The Bank’s outstanding loan commitments and financial guarantee contracts are as follows:

			September 30, 2024						December 31, 2023
Documentary letters of credit			409,642						345,608
Stand-by letters of credit and guarantees - commercial risk			522,127						490,626
Commitments loans			364,561						227,472
Commitments letters of credit			13,878						—
Total			1,310,208						1,063,706

The remaining maturity profile of the Bank’s outstanding loan commitments and financial guarantee contracts is as follows:

			September 30, 2024						December 31, 2023
Up to 1 year			1,060,940						901,716
From 1 to 2 years			135,991						84,581
Over 2 to 5 years			102,907						77,409
More than 5 years			10,370						—
Total			1,310,208						1,063,706

    

9.Gain (loss) on financial instruments, net

The amounts that were recognized in profit or loss related to the results of financial instruments are detailed below:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Gain (loss) on derivative financial instruments and foreign currency exchange, net			198						(120)						7						(87)
Realized gain on financial instruments at FVTPL			51						720						51						1,921
Loss on sale of financial instruments at amortized cost			—						(578)						—						(3,745)
Realized gain on financial instruments at FVOCI			68						—						68						—
Others			11						—						11						—
Total			328						22						137						(1,911)

35

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10. Derivative financial instruments

The following table details quantitative information on the notional amounts and carrying amounts of the derivative instruments used for hedging by type of risk hedged and type of hedge:

			September 30, 2024
			Notional amount(2)						Carrying amount of hedging instruments
									Asset (1)						Liability (1)
Interest rate risk
Fair value hedges			1,204,495						31,428						(1,207)
Interest rate and foreign exchange risk
Fair value hedges			236,831						6,434						(823)
Cash flow hedges			1,037,990						33,625						(88,807)
			2,479,316						71,487						(90,837)

			December 31, 2023
			Notional amount(2)						Carrying amount of hedging instruments
									Asset (1)						Liability (1)
Interest rate risk
Fair value hedges			987,394						11,358						(790)
Interest rate and foreign exchange risk
Fair value hedges			374,654						38,088						(14,290)
Cash flow hedges			1,303,388						107,821						(25,533)
			2,665,436						157,267						(40,613)

(1)Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.

(2)At September 30, 2024 the notional amounts of derivative financial instruments include $1,041.2 million ($639.64 million at December 31, 2023) of interest rate swaps and cross currency interest rate swaps, which were designated in aggregate exposure hedges hedging underlying assets totaling $455.9 million ($307.8 million at December 31, 2023).

36

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges

The following table details the notional amounts and carrying amounts of derivative instruments used in fair value hedges by type of risk and hedged item, along with the changes during the years used to determine and recognize the ineffectiveness of the hedge:

			September 30, 2024
			Notional amount						Carrying amount of hedging instruments												Changes in fair value used to calculate hedge ineffectiveness (2)						Ineffectiveness recognized in profit or loss (2)
									Asset (1)						Liability (1)
Interest rate risk
Deposits			265,000						9,962						(24)						(411)						(40)
Repurchase agreements			68,985						1,038						—						665						(91)
Borrowings and debt			870,510						20,428						(1,183)						10,202						(344)
Interest rate and foreign exchange risk
Borrowings and debt			236,831						6,434						(823)						(26,796)						630
Total			1,441,326						37,862						(2,030)						(16,340)						155

			December 31, 2023
			Notional amount						Carrying amount of hedging instruments												Changes in fair value used to calculate hedge ineffectiveness (2)						Ineffectiveness recognized in profit or loss (2)
									Asset (1)						Liability (1)
Interest rate risk
Loans			10,000						—						(519)						(113)						7
Securities at amortized cost			10,000						101						—						(109)						144
Deposits
Borrowings and debt			660,394						7,693						(271)						5,152						176
Interest rate and foreign exchange risk
Borrowings and debt			374,654						38,088						(14,290)						36,710						2,908
Total			1,362,048						49,446						(15,080)						42,240						3,247

(1)Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.

(2)Included in the consolidated statement of profit or loss under the line Gain (loss) on financial instruments, net.

37

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the notional amounts and carrying amounts of the fair value hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:

			September 30, 2024
			Carrying amount of hedged items												Line in the consolidated statement of financial position that includes the carrying amount of the hedged items						Accumulated amount of fair value hedge adjustments included in the carrying amount of the hedged items						Changes in fair value of the hedged items used to calculate hedge ineffectiveness(1)
			Asset						Liability
Interest rate risk
Deposits			—						(275,800)						Demand Deposits						(101)						371
Repurchase agreements			—						(70,559)												(712)						(756)
Borrowings and debt			—						(356,265)						Borrowings and debt, net						(1,186)						(10,546)
Interest rate and foreign exchange risk
Borrowings and debt			—						(243,670)						Borrowings and debt, net						(17,670)						27,426
Total			—						(946,294)												(19,669)						16,495

			December 31, 2023
			Carrying amount of hedged items												Line in the consolidated statement of financial position that includes the carrying amount of the hedged items						Accumulated amount of fair value hedge adjustments included in the carrying amount of the hedged items						Changes in fair value of the hedged items used to calculate hedge ineffectiveness(1)
			Asset						Liability
Interest rate risk
Loans			10,664						—						Loans, net						(136)						120
Securities at amortized cost			10,055						—						Securities, net						26						253
Borrowings and debt			—						(344,605)						Borrowings and debt, net						(1,626)						(4,976)
Interest rate and foreign exchange risk
Borrowings and debt			—						(402,377)						Borrowings and debt, net						(21,737)						(33,801)
Total			20,719						(983,924)												(24,061)						(38,992)

(1)Included in the consolidated statement of profit or loss under the line Gain (loss) on financial instruments, net.

38

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the maturity of the notional amount for the derivative instruments used in fair value hedges:

			September 30, 2024
			Interest rate swaps						Cross currency swaps						Total
Less than 1 year			336,263						84,647						420,910
Over 1 to 2 years			328,268						—						328,268
Over 2 to 5 years			437,309						142,059						579,368
More than 5 years			102,655						10,125						112,780
Total			1,204,495						236,831						1,441,326

			December 31, 2023
			Interest rate swaps						Cross currency swaps						Total
Less than 1 year			434,420						235,973						670,393
Over 1 to 2 years			50,263						—						50,263
Over 2 to 5 years			476,311						128,556						604,867
More than 5 years			26,400						10,125						36,525
Total			987,394						374,654						1,362,048

39

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

A.Fair value hedges (continued)

The following table details the ineffectiveness recognized in profit or loss for the derivative instruments used in fair value hedges:

			Three months ended September 30, 2024																		Nine months ended September 30, 2024
			Current						Overdue						Total						Current						Overdue						Total
Ineffectiveness recognized in profit or loss
Interest rate risk
Loans			(3)						(26)						(29)						—						(26)						(26)
Securities at amortized cost			—						—						—						—						(82)						(82)
Deposits			(40)						—						(40)						(40)						(1)						(41)
Repurchase agreements			(86)						—						(86)						(91)						—						(91)
Borrowings and debt			(771)						—						(771)						(344)						4						(340)
Interest rate and foreign exchange risk
Loans			(1)						29						28						—						29						29
Borrowings and debt			721						1						722						630						72						702
Total			(180)						4						(176)						155						(4)						151

			Three months ended September 30, 2023																		Nine months ended September 30, 2023
			Current						Overdue						Total						Current						Overdue						Total
Ineffectiveness recognized in profit or loss
Interest rate risk
Loans			2						7						9						5						7						12
Securities at amortized cost			38						—						38						107						—						107
Deposits			(9)						—						(9)						(7)						—						(7)
Borrowings and debt			(59)						—						(59)						2						—						2
Interest rate and foreign exchange risk
Loans			—						—						—						—						(26)						(26)
Borrowings and debt			591						—						591						1,296						—						1,296
Total			563						7						570						1,403						(19)						1,384

40

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedges

The following table details the notional amounts and carrying amounts of derivative instruments used in cash flow hedges by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:

			September 30, 2024
									Carrying amount of hedging instruments												Change in fair value used for calculating hedge ineffectiveness						Changes in the fair value of the hedging instruments recognized in OCI (2)						Ineffectiveness recognized in profit or loss (3)						Amount reclassified from the hedge reserve to profit or loss (3)
			Notional amount						Asset (1)						Liability (1)
Interest rate and foreign exchange risk
Loans			10,738						—						(329)						(379)						(356)						23						2
Borrowings and debt			1,027,252						33,625						(88,478)						(139,566)						(139,504)						62						107
Total			1,037,990						33,625						(88,807)						(139,945)						(139,860)						85						109

			December 31, 2023
									Carrying amount of hedging instruments												Change in fair value used for calculating hedge ineffectiveness						Changes in the fair value of the hedging instruments recognized in OCI (2)						Ineffectiveness recognized in profit or loss (3)						Amount reclassified from the hedge reserve to profit or loss (3)
			Notional amount						Asset (1)						Liability (1)
Interest rate and foreign exchange risk
Borrowings and debt			1,303,388						107,821						(25,533)						65,005						65,286						281						(682)
Foreign exchange risk
Deposits			—						—						—						—						—						—						57
Borrowings and debt			—						—						—						—						—						—						142
Total			1,303,388						107,821						(25,533)						65,005						65,286						281						(483)

(1) Included in the consolidated statement of financial position under the line Derivative financial instruments - assets or liabilities.

(2) Included in equity in the consolidated statement of financial position under the line Other comprehensive income (loss).

(3) Hedge ineffectiveness attributable to matured hedges included in the consolidated statement of profit or loss in the line Gain (loss) on financial instruments, net.

(4) Hedging reserve attributable to expired hedges reclassified to the consolidated statement of profit or loss in the line Gain (loss) on financial instruments, net.

41

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedges (continued)

The following table details the carrying amounts of the cash flow hedged items by type of risk and hedged item, along with the changes during the period used to determine and recognize the ineffectiveness of the hedge:

			September 30, 2024
			Carrying amount of hedged items												Line in the consolidated statement of financial position that includes the carrying amount of the hedged items						Changes in the fair value of the hedged items used to calculate the hedge ineffectiveness						Cash flow hedge reserve
			Asset						Liability
Interest rate and foreign exchange risk
Loans			11,298						—												379						27
Borrowings and debt			—						(991,770)						Borrowings and debt, net						139,566						(8,076)
Total			11,298						(991,770)												139,945						(8,049)

			December 31, 2023
			Carrying amount of hedged items												Line in the consolidated statement of financial position that includes the carrying amount of the hedged items						Changes in the fair value of the hedged items used to calculate the hedge ineffectiveness						Cash flow hedge reserve
			Asset						Liability
Interest rate and foreign exchange risk
Borrowings and debt			—						(1,398,323)						Borrowings and debt, net						(65,005)						(7,458)
Total			—						(1,398,323)												(65,005)						(7,458)

42

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

10.Derivative financial instruments (continued)

B.Cash flow hedge (continued)

The following table details the maturity of the derivative instruments used in cash flow hedges:

						September 30, 2024
						Foreign exchange forward contracts						Interest rate swaps						Cross currency swaps						Total
Less than 1 year						—						—						372,148						372,148
Over 1 to 2 years						—						—						315,069						315,069
Over 2 to 5 years						—						—						248,118						248,118
More than 5 years						—						—						102,655						102,655
Total						—						—						1,037,990						1,037,990

						December 31, 2023
						Foreign exchange forward contracts						Interest rate swaps						Cross currency swaps						Total
Less than 1 year						—						—						643,464						643,464
Over 1 to 2 years						—						—						206,496						206,496
Over 2 to 5 years						—						—						409,742						409,742
More than 5 years						—						—						43,686						43,686
Total						—						—						1,303,388						1,303,388

The following table details the ineffectiveness recognized in profit or loss for the derivative instruments used in cash flow hedges:

			Three months ended September 30, 2024																		Nine months ended September 30, 2024
			Current						Overdue						Total						Current						Overdue						Total
Ineffectiveness recognized in profit or loss
Interest rate and foreign exchange risk
Loans			36						2						38						23						2						25
Borrowings and debt			53						94						147						62						107						169
Total			89						96						185						85						109						194

			Three months ended September 30, 2023																		Nine months ended September 30, 2023
			Current						Overdue						Total						Current						Overdue						Total
Ineffectiveness recognized in profit or loss
Interest rate and foreign exchange risk
Borrowings and debt			(77)						10						(67)						249						(682)						(433)
Total			(57)						22						(35)						303						(535)						(232)

43

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

11.Other assets

Following is a summary of other assets:

			September 30, 2024						December 31, 2023
Accounts receivable financial instruments			3,329						4,844
Prepaid expenses			2,027						2,174
Prepaid fees and commissions			534						451
Interest receivable - deposits			1,922						1,603
IT projects under development			2,916						1,802
Improvement project under development			1,030						396
Severance fund			2,398						2,169
Other			1,994						2,156
Total			16,150						15,595

12. Deposits

The remaining and contractual maturity profile of the Bank's deposits, excluding interest payable, is as follows:

			Remaining term												Original contractual
			September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023
Demand			622,932						510,195						622,932						510,195
Up to 1 month			2,440,506						2,026,454						1,790,457						1,336,379
From 1 month to 3 months			1,197,629						704,765						767,861						758,728
From 3 month to 6 months			1,056,614						517,359						1,336,953						675,106
From 6 month to 1 year			288,382						570,033						952,261						892,221
From 1 year to 2 years			26,916						77,843						146,408						216,430
From 2 years to 5 years			5,940						1,500						22,047						19,090
Total			5,638,919						4,408,149						5,638,919						4,408,149

The following table presents additional information regarding the Bank’s deposits:

			September 30, 2024						December 31, 2023
Aggregate amount of $100,000 or more			5,638,276						4,407,608
Aggregate amount of deposits in the New York Agency			1,668,262						1,250,524

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Interest expense on deposits made in the New York Agency			23,034						15,192						66,395						34,840

44

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

13.Securities sold under repurchase agreements

The following table details the financing under repurchase agreement:

						September 30, 2024						December 31, 2023
Financing transactions under repurchase agreements						346,299						310,197

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Interest expense on financing contracts under repurchase agreement			3,119						2,847						9,275						7,412

Financing contracts under repurchase agreements generate interest range from 5.06% to 5.65% (2023: 2.27% to 6.05%) with several maturities up to July 22, 2026.

14. Borrowings and debt

Some borrowing agreements include various events of default and covenants relating to minimum capital adequacy ratios, incurrence of additional liens, and asset sales, as well as other customary covenants, representations and warranties. As of September 30, 2024, the Bank was in compliance with all those covenants.

     Carrying amount of borrowings and debt is detailed as follows:

			September 30, 2024
			Short-Term												Long-term
			Borrowings						Debt						Borrowings						Debt						Total
Principal			775,199						835						824,035						1,980,948						3,581,017
Transaction costs			(16)						(1)						(4,217)						(5,379)						(9,613)
			775,183						834						819,818						1,975,569						3,571,404

			December 31, 2023
			Short-Term												Long-term
			Borrowings						Debt						Borrowings						Debt						Total
Principal			1,638,306						86,601						537,775						2,097,820						4,360,502
Transaction costs			(262)						(40)						(1,904)						(6,308)						(8,514)
			1,638,044						86,561						535,871						2,091,512						4,351,988

45

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Short-term borrowings and debt

The breakdown of short-term (original maturity of less than one year, excluding lease liabilities) borrowings and debt, along with contractual interest rates, is as follows:

			September 30, 2024						December 31, 2023
Short-term borrowings:
At fixed interest rates			607,033						732,336
At floating interest rates			168,166						905,970
Principal			775,199						1,638,306
Less: Transaction costs			(16)						(262)
Total short-term borrowings, net			775,183						1,638,044
Short-term debt:
At fixed interest rates			835						1,536
At floating interest rates			—						85,065
Principal			835						86,601
Less: Transaction costs			(1)						(40)
Total short-term debt, net			834						86,561
Total short-term borrowings and debt			776,017						1,724,605
Range of fixed interest rates on borrowings and debt in U.S. dollars			4.64% a 5.95%						5.44% to 6.50%
Range of floating interest rates on borrowings in U.S. dollars			5.15% a 5.47%						6.08% to 6.33%
Range of fixed interest rates on borrowings in Mexican pesos			11.22		%				0.00		%
Range of floating interest rates on borrowings and debt in Mexican pesos			11.28% a 11.34%						11.77% to 12.65%
Range of fixed interest rates on borrowings in Euro			4.3		%				—		%
Range of floating interest rates on borrowings in Euro			4.2		%				4.51% to 4.69%

The outstanding balances of short-term borrowings and debt by currency, excluding prepaid commissions, are as follows:

			September 30, 2024						December 31, 2023
US dollar			699,633						1,084,872
Mexican peso			46,787						576,527
Euros			29,614						63,508
Carrying amount - principal			776,034						1,724,907

    

46

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Long-term borrowings and debt

The breakdown of long-term borrowings and debt (original maturity of more than one year), along with contractual interest rates, plus prepaid commissions are as follows:

			September 30, 2024						December 31, 2023
Long-term borrowings:
At fixed interest rates with due dates August 2027			50,743						—
At floating interest rates with due dates from March 2026 to June 2027			773,292						537,775
Principal			824,035						537,775
Less: Transaction costs			(4,217)						(1,904)
Total long-term borrowings, net			819,818						535,871
Long-term debt:
At fixed interest rates with due dates from October 2024 to November 2034			1,340,164						1,456,290
At floating interest rates with due dates from November 2024 to August 2028			640,784						641,530
Principal			1,980,948						2,097,820
Less: Transaction costs			(5,379)						(6,308)
Total long-term debt, net			1,975,569						2,091,512
Total long-term borrowings and debt, net			2,795,387						2,627,383
Range of fixed interest rates on borrowings and debt in U.S. dollars			2.38% a 6.15%						1.35% a 6.15%
Range of floating interest rates on borrowings and debt in U.S. dollars			5.44% a 6.83%						6.32% a 7.31%
Range of fixed interest rates on borrowings and debt in Mexican pesos			6.5% a 10.78%						6.5% a 10.78%
Range of floating interest rates on borrowings and debt in Mexican pesos			11.14% a 11.49%						11.70% a 11.95%
Range of fixed interest rates on debt in Japanese yens			0.73% a 1.35%						0.4% a 1.35%
Range of fixed interest rates on debt in Euros			0.9		%				0.90% a 3.75%
Range of fixed interest rates on debt in Australian dollars			6.81		%				1.41% a 6.81%
Range of fixed interest rates on debt in Sterling pounds			1.50		%				1.50		%
Range of fixed interest rates on debt in Swiss francs			0.35		%				0.35		%
Range of fixed interest rates on debt in Peruvian sol			7.00		%				0.00		%

47

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

14.Borrowings and debt (continued)

Long-term borrowings and debt (continued)

The outstanding balances of long-term borrowings and debt by currency, excluding prepaid commissions, are as follows:

			September 30, 2024						December 31, 2023
US dollar			1,365,270						1,149,021
Mexican peso			1,256,243						1,241,023
Japanese yen			97,399						113,642
Euro			33,399						88,018
Peruvian sol			25,388						—
Swiss franc			11,818						11,889
Australian dollar			10,519						27,286
Sterling pound			4,947						4,716
Carrying amount - principal			2,804,983						2,635,595

Future payments of long-term borrowings and debt outstanding as of September 30, 2024, are as follows:

			Outstanding
2024			336,712
2025			672,342
2026			631,332
2027			890,379
2028			100,299
2029			163,400
2034			10,519
Carrying amount - principal			2,804,983

The following table presents the reconciliation of movements of borrowings and debt arising from financing activities, as presented in the condensed consolidated interim statement of cash flows:

			2024						2023
Balance as of January 1,			4,351,988						4,416,511
Net decrease in short-term borrowings and debt			(942,934)						(609,090)
Proceeds from long-term borrowings and debt			891,930						355,432
Payments of long-term borrowings and debt			(526,278)						(194,524)
Change in foreign currency rates			(208,484)						89,752
Fair value adjustment due to hedge accounting relationship			4,656						(8,025)
Other adjustments			526						1,360
Balance as of September 30,			3,571,404						4,051,416

The reconciliation of the movements of the equity accounts that are part of the financing activities are presented in the condensed consolidated interim statement of changes in equity.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

15. Lease liabilities

Maturity analysis of contractual undiscounted cash flows of the lease liabilities is detailed below:

			September 30, 2024						December 31, 2023
Due within 1 year			1,711						1,717
After 1 year but within 5 years			6,653						6,540
After 5 years but within 10 years			10,989						12,368
Total undiscounted lease liabilities			19,353						20,625
Short-term			1,171						1,143
Long-term			14,696						15,564
Lease liabilities included in the condensed consolidated interim statement of financial position			15,867						16,707

Amounts recognized in the condensed consolidated interim statement of cash flows:

			September 30,
			2024						2023
Payments of lease liabilities			854						782

Amounts recognized in condensed consolidated interim statement of profit or loss:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Interest on lease liabilities			(142)						(146)						(436)						(434)

16. Other liabilities

Following is a summary of other liabilities:

			September 30, 2024						December 31, 2023
Accruals and other accumulated expenses			27,763						24,120
Funds received for debt repayment			—						14,735
Accounts payable			4,796						5,143
Unearned commissions			8,773						9,652
Other			4,707						84
Total			46,039						53,734

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

17. Earnings per share

The following table presents a reconciliation of profit and share data used in the basic earnings per share (“EPS”) computations for the dates indicated:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
(Thousands of U.S. dollars)
Profit for the period			52,993						45,753						154,383						119,773
(U.S. dollars)
Basic earnings per share			1.44						1.25						4.20						3.28
(Thousands of shares)
Weighted average of common shares outstanding applicable to basic EPS			36,787						36,531						36,724						36,462

18.Fee and commission income

Fee and commission income from contracts with customers broken down by main types of services, are detailed as follows:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Structuring services			1,473						2,740						6,494						3,924
Letters of credit and guarantees			7,072						6,333						19,602						15,593
Commitments of credit			2,145						2,268						6,126						3,512
Fees and commission income			86						—						956						—
Total fee and commission income			10,776						11,341						33,178						23,029
Fess and commission expense			(286)						(232)						(683)						(601)
Total			10,490						11,109						32,495						22,428

The following table provides information on the ordinary income that is expected to be recognized on the existing contracts:

			September 30, 2024
Up to 1 year			4,473
From 1 to 2 years			2,164
More than 2 years			232
Total			6,869

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

19.Business segment information

        The following table provides certain information regarding the Bank’s operations by segment:

			Three months ended September 30, 2024																		Nine months ended September 30, 2024
			Commercial						Treasury						Total						Commercial						Treasury						Total
Interest income			163,329						35,353						198,682						478,348						109,279						587,627
Interest expense			(114)						(131,938)						(132,052)						(349)						(395,004)						(395,353)
Inter-segment net interest income			(103,974)						103,974						—						(306,454)						306,454						—
Net interest income			59,241						7,389						66,630						171,545						20,729						192,274
Other income (expense), net			10,817						136						10,953						33,268						(331)						32,937
Total revenues			70,058						7,525						77,583						204,813						20,398						225,211
Provision for credit losses			(3,365)						(183)						(3,548)						(13,679)						418						(13,261)
Operating expenses			(16,934)						(4,108)						(21,042)						(46,173)						(11,394)						(57,567)
Segment profit			49,759						3,234						52,993						144,961						9,422						154,383
Segment assets																					8,399,113						2,998,801						11,397,914
Segment liabilities																					312,640						9,743,644						10,056,284

			Three months ended September 30, 2023																		Nine months ended September 30, 2023
			Commercial						Treasury						Total						Commercial						Treasury						Total
Interest income			149,869						32,564						182,433						406,387						78,927						485,314
Interest expense			(117)						(121,776)						(121,893)						(347)						(317,349)						(317,696)
Inter-segment net interest income			(97,351)						97,351						—						(260,592)						260,592						—
Net interest income			52,401						8,139						60,540						145,448						22,170						167,618
Other income (expense), net			11,399						(162)						11,237						23,120						(2,406)						20,714
Total income			63,800						7,977						71,777						168,568						19,764						188,332
Provision for credit losses			(6,506)						18						(6,488)						(16,760)						(750)						(17,510)
Operating expenses			(16,081)						(3,455)						(19,536)						(40,213)						(10,836)						(51,049)
Segment profit			41,213						4,540						45,753						111,595						8,178						119,773
Segment assets																					7,210,518						2,767,831						9,978,349
Segment liabilities																					283,714						8,616,813						8,900,527

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

19.Business segment information (continued)

The following table shows the reconciliation of information by business segments:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Profit for the period			52,993						45,753						154,383						119,773
Assets:
Assets from reportable segments															11,397,914						9,978,349
Other assets - unallocated															14,229						116,241
Total															11,412,143						10,094,590
Liabilities:
Liabilities from reportable segments															10,056,284						8,900,527
Other liabilities - unallocated															46,039						33,086
Total															10,102,323						8,933,613

20.Related party transactions

The detail of the assets and liabilities with related private corporations and financial institutions is as follows:

			September 30, 2024						December 31, 2023
Assets:
Demand deposits			2,182						2,263
Loans, net			157,526						61,440
Securities at amortized cost			20,900						14,373
Total			180,608						78,076
Liabilities:
Time deposits			594,091						319,344
Contingencies:
Stand-by letters of credit			150						150

52

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

20.Related party transactions (continued)

The detail of income and expenses with related parties is as follows:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Interest income:
Loans			2,438						1,133						7,592						3,143
Securities at amortized cost			195						109						582						220
Total			2,633						1,242						8,174						3,363
Interest expense:
Deposits			(9,184)						(3,682)						(27,138)						(8,409)
Net interest income (expenses)			(6,551)						(2,440)						(18,964)						(5,046)
Other income (expense):
Fees and commissions, net			—						279						1						536
Net income from related parties			(6,551)						(2,161)						(18,963)						(4,510)

The total compensation paid to directors and the executives as representatives of the Bank amounted to:

			Three months ended September 30,												Nine months ended September 30,
			2024						2023						2024						2023
Expenses:
Compensation costs to directors			579						461						1,440						1,240
Compensation costs to executives			1,737						1,471						9,343						6,795

Compensation costs of Bank´s directors and executives include annual cash retainers and the cost of granted restricted stock and restricted stock units, as detailed in the Stock Incentive Plan.

21.Litigation

Bladex is not engaged in any litigation that is significant to the Bank’s business or, to the best of the knowledge of Bank’s management, that is likely to have an adverse effect on its business, consolidated financial position or consolidated financial performance.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22. Applicable laws and regulations

Liquidity index

Rule No. 2-2018 issued by the Superintendence of Banks of Panama (SBP) establishes, as of September 30, 2024, and December 31, 2023, the minimum LCR to be reported to the SBP was 100%. The Bank´s LCR as of September 30, 2024, and December 31, 2023 was 196.6% and 205.8%, respectively.

Rule No. 4-2008 issued by the SBP, establishes that every general license or international license bank must always maintain, a minimum balance of liquid assets equivalent to 30% of the gross total of its deposits in the Republic of Panama or overseas up to 186 days, counted from the reporting date.

The liquidity index reported by the Bank to the regulator as of September 30, 2024 and December 31, 2023 was 48.7% and 93.4%, respectively.

Capital adequacy

The Banking Law in the Republic of Panama and Rules No. 01-2015, 03-2016 and 05-2023. The information corresponding to the total capital adequacy index is as follows:

			September 30, 2024						December 31, 2023
Capital funds			1,311,670						1,206,753
Risk-weighted assets			9,572,371						8,898,408
Capital adequacy index			13.7%						13.6%

    

Leverage ratio

The table below presents the Bank´s leverage ratio in compliance with Article No.17 of Rule No. 1-2015:

			September 30, 2024						December 31, 2023
Ordinary capital			1,166,553						1,070,734
Non-risk-weighted assets			11,712,976						10,994,085
Leverage ratio			10.0%						9.7%

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)

Specific provisions

Based on the classification of risks, collateral and in compliance with SBP Rule No. 4-2013, the Bank classified the loan portfolio as follows:

			September 30, 2024
			Normal						Special mention						Substandard						Doubtful						Unrecoverable						Total
Loans at amortized cost
Corporations			5,138,165						49,126						6,933						—						10,107						5,204,331
Financial institutions:
Private			2,368,348						—						—						—						—						2,368,348
State-owned			428,287						—						—						—						—						428,287
			2,796,635						—						—						—						—						2,796,635
Sovereign			69,262						—						—						—						—						69,262
Total			8,004,062						49,126						6,933						—						10,107						8,070,228
Specific provision			—						9,825						3,466						—						5,592						18,883
Allowance for loan
losses under IFRS (1):			47,853						11,577						5,444						—						7,006						71,880

			December 31, 2023
			Normal						Special mention						Substandard						Doubtful						Unrecoverable						Total
Loans at amortized cost
Corporations			4,354,378						32,342						—						—						10,107						4,396,827
Financial institutions:
Private			2,248,150						—						—						—						—						2,248,150
State-owned			464,918						—						—						—						—						464,918
			2,713,068						—						—						—						—						2,713,068
Sovereign			85,672						—						—						—						—						85,672
Total loans			7,153,118						32,342						—						—						10,107						7,195,567
Specific provision			—						6,470						—						—						5,652						12,122
Allowance for loan
losses under IFRS (1):			45,958						6,554						—						—						6,898						59,410

(1) As of September 30, 2024, and December 31, 2023, there is no excess in the specific provision calculated in accordance with Rule No. 8-2014 of the SBP, over the provision calculated in accordance with IFRS.

As of September 30, 2024, and December 31, 2023, the restructured loans are for $63.6 million and $40.5 million respectively.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)

Below is the classification of the loan portfolio by maturity profile based on Rule No. 4-2013 and modified by Rule No. 8-2014:

						September 30, 2024
Loans at amortized cost						Current						Past due						Delinquent						Total
Corporations						5,187,291						—						17,040						5,204,331
Financial institutions:
Private						2,368,348						—						—						2,368,348
State-owned						428,287						—						—						428,287
						2,796,635						—						—						2,796,635
Sovereign						69,262						—						—						69,262
Total						8,053,188						—						17,040						8,070,228

						December 31, 2023
Loans at amortized cost						Current						Past due						Delinquent						Total
Corporations						4,386,720						—						10,107						4,396,827
Financial institutions:
Private						2,248,150						—						—						2,248,150
State-owned						464,918						—						—						464,918
						2,713,068						—						—						2,713,068
Sovereign						85,672						—						—						85,672
Total						7,185,460						—						10,107						7,195,567

In accordance with Rule No. 4-2013, as amended by Rule No. 8-2014, non-accruing loans are presented by category as follows:    

			September 30, 2024
			Normal						Special mention						Substandard						Doubtful						Unrecoverable						Total
Loans at amortized cost
Impaired loans			—						—						6,933						—						10,107						17,040
Total			—						—						6,933						—						10,107						17,040

			December 31, 2023
			Normal						Special mention						Substandard						Doubtful						Unrecoverable						Total
Loans at amortized cost
Impaired loans			—						—						—						—						10,107						10,107
Total			—						—						—						—						10,107						10,107

			September 30, 2024						December 31, 2023
Non-accruing loans:
Private corporations			17,040						10,107
Interest that would be reversed if the loans had been classified as non-accruing loans			441						328

As of September 30, 2024, and December 31, 2023, there was no interest income collected on loans in non-accrual status.

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Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited condensed consolidated interim financial statements

(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

22.Applicable laws and regulations (continued)

Credit risk coverage - dynamic provision

As of September 30, 2024, and December 31, 2023, the total amount of the dynamic provision calculated according to the guidelines of Rule No. 4-2013 of the SBP is $145 million and $136 million respectively, appropriated from retained earnings for purposes of compliance with local regulatory requirements. This allocation is restricted for dividend distribution purposes.

Capital reserve

In addition to capital reserves required by regulations, the Bank maintains a capital reserve of $95.2 million, which was voluntarily established. Pursuant to Article No. 69 of the Banking Law, reduction of capital reserves requires prior approval of SBP

23.Subsequent events

The Bank announced a quarterly cash dividend of $0.50 US dollar cents per share corresponding to the third quarter of 2024. The cash dividend was approved by the Board of Directors on October 22, 2024 and it was payable on November 26, 2024 to the Bank’s stockholders as of November 8, 2024 record date.

    

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