Bladex: Mixed 2Q26; Fundamentals intact, but AT1 has run its course

Research evidence excerpt

Bladex: Mixed 2Q26; Fundamentals intact, but AT1 has run its course

J P M O R G A N Latin America Credit Research

29 July 2026

▼Neutral

Bladex Previous: Overweight

BLX

Mixed 2Q26; Fundamentals intact, but AT1 has run its

course

Bladex reported mixed 2Q26 results, in our view, supported by strong fee-based

revenues and NII expansion, even as NIM compressed further, reflecting persistent

competitive pressure on short-tenor lending spreads that management Latin America Corporate Research

acknowledged has proven more acute than originally anticipated. Asset quality Natalia Corfield AC

also deteriorated driven by a specific corporate case in Brazil, while capitalization (1-212) 834-9150

compressed sequentially as rapid RWA expansion and dividend payments natalia.corfield@jpmorgan.com

J.P. Morgan Securities LLC

outpaced core equity accretion. Looking ahead, the reaffirmation of full-year NIM

guidance offers some reassurance, and while certain metrics weakened this

quarter, the overall fundamental picture remains sound. In this context, we remain

comfortable with the credit, but move the BLX 7.5% AT1 back to Neutral from OW

on relative value grounds. See more details inside this report.

• Fast loan expansion. Bladex’s loan portfolio (including contingencies and

acceptances) continued to grow at a fast pace, reaching US$14.5 billion in

2Q26, up 7.3%qoq and 18.7%yoy with the corporate portfolio reaching US

$13.0 billion, up 8.2%qoq and 20.4%yoy. While this expansion was above the

bank’s 2026 loan growth guidance of 13%-15%, management acknowledged

on yesterday’s earnings call that further upside to guidance remain plausible.

Growth was broad-based across trade finance and medium-term lending, with

quarter-on-quarter expansion led by Panama and Argentina, and additional