Iñigo Vega Zabala's questions to Foreign Trade Bank of Latin America Inc (BLX) leadership • Q1 2025
Question
Iñigo Vega Zabala from Jefferies asked about the impressive 6.4% quarter-over-quarter growth in the commercial book, particularly the off-balance sheet portion, questioning its sustainability and the impact on capital given the high growth rate.
Answer
Executive Jorge Salas and Chief Commercial Officer Samuel Canineu addressed the growth. Salas reiterated the strategy to build fee income through low-capital-intensive letters of credit, noting recent growth was tied to Argentina's oil and gas sector. Canineu added that the off-balance sheet book is very short-term, allowing for volume adjustments to manage top-line performance. Salas concluded that while capital ratios might tighten temporarily, the bank is maintaining its long-term capital guidance.