Foreign Trade Bank of Latin America, Inc. Files 20-F for Fiscal Year 2023

TL;DR

<b>Foreign Trade Bank of Latin America, Inc. submitted its 2023 annual 20-F report detailing financial data and historical company information.</b>

AI Summary

FOREIGN TRADE BANK OF LATIN AMERICA, INC. (BLX) filed a Foreign Annual Report (20-F) with the SEC on April 25, 2024. The company filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's former name was Latin American Export Bank, with a name change effective August 29, 1994. The filing includes data related to various share classes (A1, B1, E, F) as of December 31, 2023. The report details capital reserves, statutory reserves, retained earnings, and accumulated other comprehensive income for fiscal years 2020-2023.

Why It Matters

For investors and stakeholders tracking FOREIGN TRADE BANK OF LATIN AMERICA, INC., this filing contains several important signals. This 20-F filing provides a comprehensive overview of the company's financial position and operational details for the fiscal year 2023, crucial for investors and analysts tracking the bank's performance. The inclusion of historical data from 2020 to 2023 allows for trend analysis and comparison of the bank's financial health and capital structure over time.

Risk Assessment

Risk Level: low — FOREIGN TRADE BANK OF LATIN AMERICA, INC. shows low risk based on this filing. The filing is a standard annual report and does not contain immediate red flags, indicating a routine disclosure process.

Analyst Insight

Review the detailed financial statements and capital reserve breakdowns within the 20-F to assess the bank's financial stability and growth trends.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 1994-08-29 — Date of Name Change (Historical Information)
• 2023-01-01 — Reporting Period Start Date (Fiscal Year 2023)
• 2023-12-31 — Reporting Period End Date (Fiscal Year 2023)

Key Players & Entities

• FOREIGN TRADE BANK OF LATIN AMERICA, INC. (company) — Filer
• LATIN AMERICAN EXPORT BANK (company) — Former Company Name
• BLX (company) — Ticker Symbol

FAQ

Industry Context

The company operates in the commercial banking sector, as indicated by its SIC code 6029 (Commercial Banks, NEC).

Regulatory Implications

The filing is a Form 20-F, which is an annual report required by the U.S. Securities and Exchange Commission (SEC) for foreign private issuers.

What Investors Should Do

1. Analyze the detailed financial statements and disclosures in the 20-F for fiscal year 2023.
2. Compare the 2023 financial data with previous years (2020-2022) to identify trends in capital reserves and retained earnings.
3. Note the historical information regarding the company's former name and name change date.

Key Dates

• 2024-04-25: Filing Date — Submission of the 2023 annual report
• 2023-12-31: Fiscal Year End — Period covered by the report
• 1994-08-29: Company Name Change — Historical corporate event

Year-Over-Year Comparison

This filing represents the annual 20-F report for the fiscal year 2023, following previous filings for prior fiscal years.

Filing Documents

• blx-20231231.htm (20-F) — 8514KB
• blx20231231-ex81.htm (EX-8.1) — 4KB
• blx20231231-ex121.htm (EX-12.1) — 10KB
• blx20231231-ex122.htm (EX-12.2) — 10KB
• blx20231231-ex131.htm (EX-13.1) — 4KB
• blx20231231-ex132.htm (EX-13.2) — 4KB
• blx20231231-ex971.htm (EX-97.1) — 23KB
• blx-20231231_g1.jpg (GRAPHIC) — 11KB
• blx-20231231_g2.jpg (GRAPHIC) — 6KB
• 0001628280-24-018245.txt (&nbsp;) — 32769KB
• blx-20231231.xsd (EX-101.SCH) — 206KB
• blx-20231231_cal.xml (EX-101.CAL) — 130KB
• blx-20231231_def.xml (EX-101.DEF) — 851KB
• blx-20231231_lab.xml (EX-101.LAB) — 1294KB
• blx-20231231_pre.xml (EX-101.PRE) — 1158KB
• blx-20231231_htm.xml (XML) — 8311KB

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 9

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 9

Key Information

Item 3. Key Information 9 A. [Reserved ] 9 B. Capitalization and Indebtedness 9 C. Reasons for the Offer and Use of Proceeds 9 D. Risk Factors 9

Information on the Company

Item 4. Information on the Company 26 A. History and Development of the Company 26 B. Business Overview 27 C. Organizational Structure 52 D. Property, Plant and Equipment 52

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 52

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 52 A. Operating Results 54 B. Liquidity and Capital Resources 71 C. Research and Development, Patents and Licenses, etc. 83 D. Trend Information 84 E. Critical Accounting Estimates 86

Directors, Executive Officers and Employees

Item 6. Directors, Executive Officers and Employees 87 A. Directors and Executive Officers 87 B. Compensation 93 C. Board Practices 97 D. Employees 101 E. Share Ownership 101 F. Disclosure of a registrant's action to recover erroneously awarded compensation 101

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 102 A. Major Shareholders 102 B. Related Party Transactions 104 C. Interests of Experts and Counsel 104

Financial Information

Item 8. Financial Information 104 A. Consolidated Statements and Other Financial Information 104 B. Significant Changes 105

The Offer and Listing

Item 9. The Offer and Listing 105 A. Offer and Listing Details 105 B. Plan of Distribution 106 C. Markets 106 D. Selling Shareholders 106 E. Dilution 106 2 Table of Contents F. Expenses of the Issue 106

Additional Information

Item 10. Additional Information 106 A. Share Capital 106 B. Memorandum and Articles of Association 106 C. Material Contracts 108 D. Exchange Controls 108 E. Taxation 108 F. Dividends and Paying Agents 112 G. Statement by Experts 112 H. Documents on Display 112 I. Subsidiary Information 113 J. Annual Report to Security Holders 113

Quantitative and Qualitative Disclosure About Market Risk

Item 11. Quantitative and Qualitative Disclosure About Market Risk 113

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 118 PART II 119

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 119

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 119

Controls and Procedures

Item 15. Controls and Procedures 119

[Reserved]

Item 16. [Reserved] 121

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 121

Code of Ethics

Item 16B. Code of Ethics 121

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services 121

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 122

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 122

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant 122

Corporate Governance

Item 16G. Corporate Governance 122

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 122

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 123

Insider Trading Policies

Item 16J. Insider Trading Policies 123

K . Cybersecurity

Item 16 K . Cybersecurity 123 PART III 124

Financial Statements

Item 17. Financial Statements 124

Financial Statements

Item 18. Financial Statements 124

Exhibits

Item 19. Exhibits 125 3 Table of Contents In this Annual Report on Form 20-F, or this Annual Report, references to the "Bank" or "Bladex" are to Banco Latinoamericano de Comercio Exterior, S.A., a specialized multinational bank incorporated under the laws of the Republic of Panama ("Panama"), and its consolidated subsidiaries described in Item 4.A "Information on the Company – History and Development of the Company." References to Bladex's consolidated financial statements (the "Consolidated Financial Statements") are to the financial statements of Banco Lationoamericano de Comercio Exterior, S.A., and its subsidiaries, with all intercompany balances and transactions having been eliminated for consolidating purposes. References to "Bladex Head Office" are to Banco Latinoamericano de Comercio Exterior, S.A. in its individual capacity. References to Bladex's loan portfolio (the "Loan Portfolio") are to the Bank's loans at amortized cost, gross of interest receivable, allowance for loan losses, unearned interest and deferred fees. References to Bladex's commercial portfolio (the "Commercial Portfolio") are to the Bank's Loan Portfolio plus customers' liabilities under acceptances, and loan commitments and financial guarantee contracts, such as confirmed and stand-by letters of credit, and guarantees covering commercial risk. References to Bladex's credit portfolio (the "Credit Portfolio") are to the Bank's Commercial Portfolio plus Bladex's investment portfolio (the "Investment Portfolio") consisting of securities at fair value through other comprehensive income ("FVOCI") and securities at amortized cost, gross of interest receivable and the allowance for expected credit losses. References to "U.S. dollars" or "

Forward-Looking Statements

Forward-Looking Statements In addition to historical information, this Annual Report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements may appear throughout this Annual Report. The Bank uses words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will," "should," "estimate," "potential," "project" and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning the Bank's expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those discussed in any such statement. Factors or events that could cause actual results to differ materially from these forward-looking statements include the risks described in the section titled "Risk Factors." Factors or events that could cause the Bank's actual results to differ may emerge from time to time, and it is not possible for the Bank to predict all such factors or results. The Bank undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law or regulation. Forward-looking statements include statements regarding: changes in general economic conditions in North America, Central America, South America and the jurisdictions in which the Bank or its customers operate, such as new, continuing or deepening recessions, persistent inflationary pressures, fluctuations in employment, disruption of supply chains, sanctions and trade embargos and its impact on commoditie

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not required in this Annual Report.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not required in this Annual Report.

Key Information

Item 3. Key Information A. Reserved B. Capitalization and Indebtedness Not required in this Annual Report. C. Reasons for the Offer and Use of Proceeds Not required in this Annual Report. D. Risk Factors The Bank's business, results of operations, financial conditions and cash flows are subject to, and could be materially adversely affected by, various risks and uncertainties, including, without limitation, those set forth below, any one of which could cause the Bank's actual results to vary materially from recent results or anticipated future results. Investors should consider, among other things, all of the information set out in this Annual Report and particularly the risk factors with respect to Bladex and the Region in which Bladex operates. In general, investing in financial instruments of issuers in emerging market countries such as Panama involves a higher degree of risk than investing in financial instruments of U.S. and European issuers. Additional risks and uncertainties not presently known to the Bank or that its management currently deems immaterial may also impair the Bank's business operations. Risks Relating to the Bank's Business Performance in the financial services industry is affected by market conditions, fiscal, monetary and regulatory policies and the macroeconomic climate. The Bank's business is materially affected by market and macroeconomic conditions in the countries in which it operates and globally. A market downturn and weak macroeconomic conditions can be precipitated by a number of factors, including geopolitical events, such as international armed conflicts, war, or acts of terrorism, the imposition of sanctions, global trade or global supply chain disruptions, including energy shortages and food insecurity, changes in monetary or fiscal policy, changes in trade policies or international trade disputes, significant inflationary or deflationary price changes, disruptions in one or more concentrated economic sectors, the

View Full Filing

View this 20-F filing on SEC EDGAR