Shares of Banco Latinoamericano de Comercio Exterior SA (BLADEX) plummeted 12.80% in pre-market trading on Wednesday, following the release of the company's third-quarter earnings report. Despite reporting some positive growth metrics, investors seemed to focus on several concerning aspects of the financial results.
The bank reported a net income of $55.0 million for the third quarter, which represents a 4% increase year-over-year but a significant 14% decrease from the previous quarter. This quarter-over-quarter decline in profitability appears to have spooked investors. Additionally, non-interest income totaled $15.4 million, showing a 40% year-over-year increase but a substantial 31% decline compared to the previous quarter.
Further adding to investor concerns, BLADEX's net interest margin dropped to 2.32%, down by 23 basis points year-over-year. The bank's adjusted return on equity (ROE) for the third quarter was 15.1%, decreasing by 129 basis points compared to the same period last year. While the bank provided guidance for the full year 2025, including 10% to 12% growth in its commercial portfolio and ROE between 15% and 16%, the market's reaction suggests that investors were expecting stronger results or a more optimistic outlook.
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