William Hayes's questions to Foreign Trade Bank of Latin America Inc (BLX) leadership • Q3 2024
Question
William Hayes asked why the strong results have not moved the stock price and questioned the conservative 35% dividend payout ratio, asking when the company intends to increase it, especially given the focus on less capital-intensive non-interest income growth.
Answer
CEO Jorge Salas stated that dividend policy is an ongoing quarterly discussion for the Board, focused on balancing total shareholder value between stock appreciation and dividend yield. CFO Ana de Mendez added that it's a balance between funding profitable growth and returning capital. Given the strong 16% ROE, she noted the Board currently views the dividend level as appropriate, but confirmed it is a recurring quarterly discussion.