UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2025

Commission File Number 1-11414

BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A.

(Exact name of Registrant as specified in its Charter)

FOREIGN TRADE BANK OF LATIN AMERICA, INC.

(Translation of Registrant’s name into English)

Business Park Torre V, Ave. La Rotonda, Costa del Este

P.O. Box 0819-08730

Panama City, Republic of Panama

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		FOREIGN TRADE BANK OF LATIN AMERICA, INC.
		(Registrant)

Date: August 6, 2025	By:	/s/ Annette van Hoorde de Solís
	Name:	Annette van Hoorde de Solís
	Title:	Chief Financial Officer

Banco Latinoamericano

de Comercio Exterior, S.A.

and Subsidiaries

Unaudited interim condensed consolidated financial statements as of June 30, 2025, and for the three and six months ended June 30, 2025 and 2024

Banco Latinoamericano de Comercio Exterior, S.A.

and Subsidiaries

Contents

Condensed consolidated statement of financial position

Condensed consolidated statement of profit or loss

Condensed consolidated statement of comprehensive income

Condensed consolidated statement of changes in equity

Condensed consolidated statement of cash flows

Notes to the unaudited interim condensed consolidated financial statements

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Condensed consolidated statements of financial position

June 30, 2025 and December 31, 2024

(In thousands of US dollars)


		June 30,	December 31,
		2025	2024
	Notes	(Unaudited)	(Audit)
Assets

Cash and due from banks	3,4,5	1,997,581	1,965,145

Investment securities	3,4,6	1,377,813	1,201,930

Loans	3,4,7	8,583,899	8,383,829

Customers' liabilities under acceptances	3,4	602,232	245,065
Trading derivative financial instruments - assets	3,4,10	2,189	—
Hedging derivative financial instruments - assets	3,4,10	63,713	22,315
Equipment, leases and leasehold improvements, net		19,417	19,676
Intangibles assets		3,462	3,663

Other assets	11	23,901	17,050
Total assets		12,674,207	11,858,673

Liabilities and Equity
Liabilities:
Customer deposits	3,4,12	6,491,382	5,461,901

Securities sold under repurchase agreements	3,4,13	196,562	212,931
Borrowings and debt, net	3,4,14	3,779,353	4,352,316
Interest payable		44,581	37,508

Lease liabilities	3,15	18,713	19,232
Acceptances outstanding	3,4	602,232	245,065
Trading derivative financial instruments - liabilities	3,4,10	191	—
Hedging derivative financial instruments - liabilities	3,4,10	69,217	141,705
Allowance for losses on loan commitments and financial guarantee contract	3,4	11,877	5,375
Other liabilities	16	44,619	45,431
Total liabilities		11,258,727	10,521,464

Equity:
Common stock		279,980	279,980
Treasury stock		(97,578)	(105,601)
Additional paid-in capital in excess of value assigned to common stock		120,854	124,970
Capital reserves	22	95,210	95,210
Regulatory reserves	22	149,665	149,666
Retained earnings		861,430	792,005
Other comprehensive income		5,919	979
Total equity		1,415,480	1,337,209
Total liabilities and equity		12,674,207	11,858,673

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Condensed consolidated statement of profit or loss

For the three and six months ended June 30, 2025 and 2024

(In thousands of US dollars, except earnings per share data)


		(Unaudited)
		Three months ended June 30,		Six months ended June 30,
	Notes	2025	2024	2025	2024
Interest income:
Deposits		18,845	25,642	35,693	50,668
Investment securities		16,171	12,630	30,481	23,258
Loans		159,415	157,101	317,677	315,019
Total interest income	19	194,431	195,373	383,851	388,945
Interest expense:
Deposits		(74,507)	(76,808)	(142,385)	(146,542)
Securities sold under repurchase agreements	13	(2,860)	(3,592)	(5,261)	(6,156)
Borrowings and debt	14	(49,146)	(52,069)	(102,849)	(110,309)
Lease liabilities	15	(179)	(145)	(361)	(294)
Total interest expense	19	(126,692)	(132,614)	(250,856)	(263,301)

Net interest income		67,739	62,759	132,995	125,644

Other income (expense):
Fees and commissions, net	18	19,912	12,533	30,495	22,005
Gain (loss) on financial instruments, net	9	2,161	(351)	4,145	(191)
Other income, net		230	99	356	170
Total other income, net	19	22,303	12,281	34,996	21,984

Total revenues		90,042	75,040	167,991	147,628

Provision for credit losses	3,19	(5,019)	(6,684)	(10,235)	(9,713)


Operating expenses:
Salaries and other employee expenses		(12,384)	(11,761)	(26,322)	(23,431)
Depreciation and amortization of equipment, leases and leasehold improvements		(721)	(591)	(1,414)	(1,185)
Amortization of intangible assets		(348)	(250)	(674)	(474)
Other expenses		(7,386)	(5,632)	(13,430)	(11,435)
Total operating expenses	19	(20,839)	(18,234)	(41,840)	(36,525)
Profit for the period		64,184	50,122	115,916	101,390

Per share data:
Basic earnings per share (in US dollars)	17	1.73	1.36	3.13	2.76

Weighted average basic shares (in thousands of shares)	17	37,203	36,775	37,072	36,692

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Condensed consolidated statement of comprehensive income

For the three and six months ended June 30, 2025 and 2024

(In thousands of US dollars)


	(Unaudited)
	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Profit for the period	64,184	50,122	115,916	101,390

Other comprehensive income:
Items that will not be reclassified subsequently to the consolidated statement of profit or loss:


Change in fair value on financial instruments, net of hedging	3,164	(7,918)	6,296	(8,446)
Reclassification of (losses) gains on financial instruments to the consolidated statement of profit or loss	(1,310)	114	(1,356)	349



Other comprehensive income	1,854	(7,804)	4,940	(8,097)

Total comprehensive income for the period	68,058	42,318	120,856	93,293

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Condensed consolidated statement of changes in equity

For the six months ended June 30, 2025 and 2024

(In thousands of US dollars)


	(Unaudited)
	Common stock	Treasury stock	Additional paid-in capital in excess of value assigned to common stock	Capital reserves	Regulatory reserves	Retained earnings	Other comprehensive income	Total equity













Balances at January 1, 2024	279,980	(110,174)	122,046	95,210	136,019	673,281	7,462	1,203,824

Profit for the period	—	—	—	—	—	101,390	—	101,390
Other comprehensive income	—	—	—	—	—	—	(8,097)	(8,097)

Issuance of restricted stock	—	1,038	(1,038)	—	—	—	—	—
Compensation cost - stock options and stock units plans	—	—	3,191	—	—	—	—	3,191
Exercised options and stock units vested	—	3,464	(3,464)	—	—	—	—	—


Dividends declared	—	—	—	—	—	(36,713)	—	(36,713)
Balances at June 30, 2024	279,980	(105,672)	120,735	95,210	136,019	737,958	(635)	1,263,595

Balances at January 1, 2025	279,980	(105,601)	124,970	95,210	149,666	792,005	979	1,337,209
Profit for the period	—	—	—	—	—	115,916	—	115,916
Other comprehensive income	—	—	—	—	—	—	4,940	4,940

Issuance of restricted stock	—	4,540	(4,540)	—	—	—	—	—
Compensation cost - stock options and stock units plans	—	—	3,907	—	—	—	—	3,907
Exercised options and stock units vested	—	3,483	(3,483)	—	—	—	—	—

Regulatory credit reserve	—	—	—	—	(1)	1	—	—

Dividends declared	—	—	—	—	—	(46,492)	—	(46,492)
Balances at June 30, 2025	279,980	(97,578)	120,854	95,210	149,665	861,430	5,919	1,415,480

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Condensed consolidated statement of cash flows

For the six months ended June 30, 2025 and 2024

(In thousands of US dollars)


		(Unaudited)
	Notes	2025	2024
Cash flows from operating activities
Profit for the period		115,916	101,390
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Depreciation and amortization of equipment, leasehold improvements		1,414	1,185
Amortization of intangible assets		674	474


Provision for credit losses	3	10,235	9,713

Realized gain on financial instruments at FVTPL	9	(1,095)	—
Realized gain on financial instruments at FVOCI	9	(241)	—
Loss on sale of financial instruments at amortized cost	9	436	—
Compensation cost - share-based payment		3,907	3,191
Net changes in hedging position and foreign currency		112,998	(5,266)
Disposal of equipment and leasehold improvements		1	—




Interest income	19	(383,851)	(388,945)
Interest expense	19	250,856	263,301
Changes in operating assets and liabilities:
Restricted and pledged deposits		58,438	(42,022)
Loans		(268,493)	(251,216)
Other assets		(6,851)	(1,044)
Due to depositors		1,033,523	851,075
Other liabilities		(894)	(19,647)
Cash flows provided by operating activities		926,973	522,189
Interest received		384,032	385,042
Interest paid		(239,609)	(255,367)
Net cash provided by operating activities		1,071,396	651,864

Cash flows from investing activities:
Acquisition of equipment, leases and leasehold improvements		(1,148)	(207)
Acquisition of intangible assets		(465)	(475)

Proceeds from the sale of securities at amortized cost		19,363	—
Proceeds from the sale of securities at FVOCI		31,183	—

Proceeds from the redemption of securities at amortized cost		174,989	136,713
Proceeds from the redemption of securities at FVOCI		30,000	—
Purchases of securities at amortized cost		(362,005)	(174,194)
Purchases of securities at FVOCI		(59,120)	(86,449)

Net cash used in investing activities		(167,203)	(124,612)

Cash flows from financing activities:
Decrease in securities sold under repurchase agreements		(16,313)	(7,432)
Net decrease in short-term borrowings and debt	14	(432,939)	(871,960)
Proceeds from long-term borrowings and debt	14	65,776	209,189
Payments of long-term borrowings and debt	14	(383,235)	(6,061)
Payments of lease liabilities	15	(493)	(569)
Dividends paid		(45,988)	(36,353)


Net cash used in financing activities		(813,192)	(713,186)

Increase (decrease) net in cash and cash equivalents		91,001	(185,934)
Cash and cash equivalents at beginning of the period		1,819,931	1,987,068
Cash and cash equivalents at end of the period	5	1,910,932	1,801,134

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

1.Corporate information

Banco Latinoamericano de Comercio Exterior, S. A. (“Bladex Head Office” and together with its subsidiaries “Bladex” or the “Bank”), headquartered in Panama City, Republic of Panama, is a specialized multinational bank established to support the financing of foreign trade and economic integration in Latin America and the Caribbean (the “Region”). The Bank was the result of a proposal brought before the Assembly of Governors of Central Banks in the Region in May of 1975, which recommended the creation of a multinational organization to increase the foreign trade financing capacity of the Region. The Bank was organized in 1977, incorporated in 1978 as a corporation pursuant to the laws of the Republic of Panama, and initiated operations on January 2, 1979. Under a contract law signed in 1978 between the Republic of Panama and Bladex, the Bank was granted certain privileges by the Republic of Panama, including an exemption from payment of income taxes in Panama.

The Bank operates under a general banking license issued by the National Banking Commission of Panama, predecessor of the Superintendence of Banks of Panama (the “SBP”).

In the Republic of Panama, banks are regulated by the SBP through Executive Decree No. 52 of April 30, 2008, which adopts the unique text of Law Decree No. 9 of February 26, 1998, modified by Law Decree No. 2 of February 22, 2008. Banks are also regulated by resolutions and agreements issued by this entity. The main aspects of this law and its regulations include: the authorization of banking licenses, minimum capital and liquidity requirements, consolidated supervision, procedures for management of credit, liquidity and market risks, measures to prevent money laundering, the financing of terrorism and related illicit activities, and procedures for banking intervention and liquidation, among others.

Bladex Head Office’s subsidiaries are the following:

- Bladex Holdings Inc. is a wholly owned subsidiary, incorporated under the laws of the State of Delaware, United States of America (USA), on May 30, 2000. Bladex Holdings Inc. has ownership in Bladex Representaçao Ltda.

- Bladex Representaçao Ltda, incorporated under the laws of Brazil on January 7, 2000, acts as the Bank’s representative office in Brazil. Bladex Representaçao Ltda. is 99.999% owned by Bladex Head Office and the remaining 0.001% is owned by Bladex Holdings Inc.

- Bladex Development Corp. was incorporated under the laws of the Republic of Panama on June 5, 2014. Bladex Development Corp. is 100.00% owned by Bladex Head Office.

Bladex Head Office has an agency in New York City, USA (the “New York Agency”), which began operations on March 27, 1989. The New York Agency is principally engaged in financing transactions related to international trade, mostly the confirmation and financing of letters of credit for customers in the Region. The New York Agency also has authorization to book transactions through an International Banking Facility (“IBF”).

The Bank has representative offices in Buenos Aires, Argentina; in Mexico City, Mexico; and in Bogota, Colombia, and has a representative license in Lima, Peru.

2. Basis of preparation and changes to the Bank’s accounting policies

2.1 Basis of preparation

These interim condensed consolidated financial statements for the six months ended June 30, 2025 have been prepared in accordance with International Accounting Standards IAS 34 “Interim Financial Reporting”. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and should be read in conjunction with the Bank’s annual consolidated financial statements as at and for the year ended December 31, 2024.

These interim financial statements were authorized for issue by the Bank’s board of directors on July 28, 2025.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

2. Basis of preparation and changes to the Bank’s accounting policies (continued)

2.2 New standards, interpretations and amendments adopted by the Bank

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Bank’s annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new standards effective as of 1° January 2025. The Bank has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

One amendment applies for the first time in 2025, but does not have an impact on the interim condensed consolidated financial statements of the Bank.

Lack of exchangeability – Amendments to IAS 21

The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after January 1, 2025. When applying the amendments, and entity cannot restate comparative information. The amendment did not have impact on the Bank’s financial statements.

2.3 Reclassification

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the previously reported results of operations. An adjustment has been made to the Consolidated Statements of Financial Position for the year ended December 31, 2024, to reclassify the Interest receivable deposits from the line of Other assets to Cash and due from Banks.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review

This note presents information about the Bank’s exposure to financial risks:

A.Credit risk

i.Credit quality analysis

The following tables set out information about the credit quality of financial assets measured at amortized cost, and debt instruments at FVOCI. For loan commitments and financial guarantee contracts, the amounts in the table represent the amounts committed or guaranteed, respectively.

Loans, at amortized cost (1)


	June 30, 2025
	PD Ranges	Stage 1	Stage 2	Stage 3	Total
Grades 1 - 4	0.05-0.38	3,177,035	—	—	3,177,035
Grades 5 - 6	0.39-3.81	4,787,162	159,421	—	4,946,583
Grades 7 - 8	3.82-34.52	418,347	70,134	1,691	490,172
Grades 9 - 10	34.53-100	—	—	17,581	17,581
		8,382,544	229,555	19,272	8,631,371
Loss allowance		(44,916)	(22,938)	(13,828)	(81,682)
Total		8,337,628	206,617	5,444	8,549,689


	December 31, 2024
	PD Ranges	Stage 1	Stage 2	Stage 3	Total
Grades 1 - 4	0.05-0.41	2,971,709	—	—	2,971,709
Grades 5 - 6	0.42-3.81	4,704,760	299,292	—	5,004,052
Grades 7 - 8	3.82-34.52	397,049	71,664	—	468,713
Grades 9 - 10	34.53-100	—	—	17,513	17,513
		8,073,518	370,956	17,513	8,461,987
Loss allowance		(45,635)	(20,040)	(12,483)	(78,158)
Total		8,027,883	350,916	5,030	8,383,829

(1) Loans at amortized cost includes interest and commission receivable.

Loans at FVOCI


	June 30, 2025
	PD Ranges	Stage 1	Stage 2	Stage 3	Total
Grades 1 - 4	0.05-0.38	10,102	—	—	10,102
Grades 5 - 6	0.39-3.81	24,108	—	—	24,108


		34,210	—	—	34,210
Loss allowance		(231)	—	—	(231)
Total		33,979	—	—	33,979

As of December 31, 2024, no loans were classified at fair value through other comprehensive income (FVOCI).

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)

Loan commitments, financial guarantees issued and customers’ liabilities under acceptances


	June 30, 2025
	PD Ranges	Stage 1	Stage 2	Total
Commitments and contingencies
Grades 1 - 4	0.05-0.38	591,685	—	591,685
Grades 5 - 6	0.39-3.81	695,321	1,099	696,420
Grades 7 - 8	3.82-34.52	331,853	—	331,853
		1,618,859	1,099	1,619,958

Customers' liabilities under acceptances
Grades 1 - 4	0.05-0.38	314,093	—	314,093
Grades 5 - 6	0.39-3.81	76,440	—	76,440
Grades 7 - 8	3.82-34.52	211,699	—	211,699
		602,232	—	602,232
		2,221,091	1,099	2,222,190
Loss allowance		(11,859)	(18)	(11,877)
Total		2,209,232	1,081	2,210,313


	December 31, 2024
	PD Ranges	Stage 1	Stage 2	Total
Commitments and contingencies
Grades 1 - 4	0.05-0.41	545,855	—	545,855
Grades 5 - 6	0.42-3.81	630,648	6,099	636,747
Grades 7 - 8	3.82-34.52	226,278	5,500	231,778

		1,402,781	11,599	1,414,380

Customers' liabilities under acceptances
Grades 1 - 4	0.05-0.41	204,421	—	204,421
Grades 5 - 6	0.42-3.81	1,155	—	1,155
Grades 7 - 8	3.82-34.52	39,489	—	39,489

		245,065	—	245,065
		1,647,846	11,599	1,659,445
Loss allowance		(4,815)	(560)	(5,375)
Total		1,643,031	11,039	1,654,070

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A.Credit risk (continued)

Securities at amortized cost(1)


	June 30, 2025
	PD Ranges	Stage 1	Stage 2	Total
Grades 1 - 4	0.05-0.38	1,215,575	—	1,215,575
Grades 5 - 6	0.39-3.81	53,725	10,565	64,290


		1,269,300	10,565	1,279,865
Loss allowance		(937)	(175)	(1,112)
Total		1,268,363	10,390	1,278,753


	December 31, 2024
	PD Ranges	Stage 1	Stage 2	Total
Grades 1 - 4	0.05-0.41	1,020,297	—	1,020,297
Grades 5 - 6	0.42-3.81	72,976	10,482	83,458

		1,093,273	10,482	1,103,755
Loss allowance		(1,133)	(178)	(1,311)
Total		1,092,140	10,304	1,102,444

Securities at FVOCI


	June 30, 2025
	PD Ranges	Stage 1	Stage 2	Total
Grades 1 - 4	0.05-0.38	99,164	—	99,164
		99,164	—	99,164
Loss allowance - FVOCI		(104)	—	(104)
Total - Fair value		99,060	—	99,060


	December 31, 2024
	PD Ranges	Stage 1	Stage 2	Total
Grades 1 - 4	0.05 - 0.41	99,509	—	99,509
		99,509	—	99,509
Loss allowance - FVOCI		(23)	—	(23)
Total - Fair value		99,486	—	99,486

(1) Securities at amortized cost includes interest receivable.

The following table presents information of the current and past due balances of loans:


	June 30, 2025	December 31, 2024
Current	8,646,309	8,444,474

Past due (1)	19,272	17,513
Total	8,665,581	8,461,987

(1) Past due loans are classified in Stage 3.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

The following table presents an analysis of counterparty credit exposures arising from derivative transactions. The Bank's derivative are generally collateralized by cash.


	June 30, 2025
	Notional value USD	Derivative financial instruments - fair value asset	Derivative financial instruments - fair value liabilities
Interest rate swaps	1,221,467	28,433	(6,066)
Cross-currency swaps	1,212,195	35,254	(62,933)
Foreign exchange forwards	18,322	26	(218)
Total	2,451,984	63,713	(69,217)


	December 31, 2024
	Notional value USD	Derivative financial instruments - fair value asset	Derivative financial instruments - fair value liabilities
Interest rate swaps	1,132,827	10,805	(2,667)
Cross-currency swaps	1,391,715	11,510	(139,038)

Total	2,524,542	22,315	(141,705)

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

ii.Loss allowances

The following tables show reconciliations from the opening to the closing balance of the loss allowance by class of financial instrument.

Loans at amortized cost


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2024	45,635	20,040	12,483	78,158
Transfer to lifetime expected credit losses	(101)	(148)	249	—


Net effect of changes in allowance for expected credit losses	(2,372)	3,657	1,096	2,381
Financial instruments that have been derecognized during the period	(24,480)	(2,263)	—	(26,743)
New financial assets originated or purchased	26,234	1,652	—	27,886


Allowance for expected credit losses as of June 30, 2025	44,916	22,938	13,828	81,682


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2023	34,778	17,734	6,898	59,410
Transfer to lifetime expected credit losses	(235)	(1,237)	1,472	—


Net effect of changes in allowance for expected credit losses	(1,007)	6,013	2,978	7,984
Financial instruments that have been derecognized during the year	(23,723)	(5,807)	—	(29,530)
New financial assets originated or purchased	35,822	3,337	—	39,159

Recoveries	—	—	1,135	1,135
Allowance for expected credit losses as of December 31, 2024	45,635	20,040	12,483	78,158

Loans at FVOCI


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2024	—	—	—	—





New financial assets originated or purchased	231	—	—	231


Allowance for expected credit losses as of June 30, 2025	231	—	—	231

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Loan commitments, financial guarantee contracts and customers’ liabilities under acceptances

The allowance for expected credit losses on loan commitments and financial guarantee contracts reflects the Bank’s management estimate of expected credit losses of customers’ liabilities under acceptances and contingent liabilities such as: confirmed letters of credit, stand-by letters of credit, guarantees, and credit commitments.


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2024	4,815	560	—	5,375


Net effect of changes in reserve for expected credit losses	(102)	11	—	(91)
Financial instruments that have been derecognized during the period	(2,510)	(553)	—	(3,063)
New instruments originated or purchased	9,656	—	—	9,656
Allowance for expected credit losses as of June 30, 2025	11,859	18	—	11,877


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2023	3,905	1,154	—	5,059
Transfer to lifetime expected credit losses	(84)	84	—	—

Net effect of changes in reserve for expected credit losses	(154)	312	—	158
Financial instruments that have been derecognized during the year	(2,671)	(1,136)	—	(3,807)
New instruments originated or purchased	3,819	146	—	3,965
Allowance for expected credit losses as of December 31, 2024	4,815	560	—	5,375

Securities at amortized cost


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2024	1,133	178	—	1,311
Transfer to lifetime expected credit losses	(19)	19	—	—

Net effect of changes in allowance for expected credit losses	(10)	25	—	15
Financial instruments that have been derecognized during the period	(297)	—	—	(297)
New financial assets originated or purchased	130	—	—	130
Write-offs	—	(47)	—	(47)

Allowance for expected credit losses as of June 30, 2025	937	175	—	1,112

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities at amortized cost (continued)


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2023	1,230	402	—	1,632
Transfer to lifetime expected credit losses	(21)	21	—	—

Net effect of changes in allowance for expected credit losses	(55)	(7)	(331)	(393)
Financial instruments that have been derecognized during the year	(392)	(238)	—	(630)
New financial assets originated or purchased	371	—	—	371

Recoveries	—	—	331	331
Allowance for expected credit losses as of December 31, 2024	1,133	178	—	1,311

Securities at FVOCI


	Stage 1	Stage 2	Stage 3	Total
Allowance for expected credit losses as of December 31, 2024	23	—	—	23

Financial instruments that have been derecognized during the period	(14)	—	—	(14)
New financial assets originated or purchased	95	—	—	95
Allowance for expected credit losses as of June 30, 2025	104	—	—	104


	Stage 1	Stage 2		Stage 3	Total
Allowance for expected credit losses as of December 31, 2023	1	—		—	1
Net effect of changes in allowance for expected credit losses	1	—	—	—	1

New financial assets originated or purchased	21	—		—	21
Allowance for expected credit losses as of December 31, 2024	23	—		—	23

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

The following table provides a reconciliation between:

–Amounts shown in the previous tables reconciling opening and closing balances of loss allowance per class of financial instrument; and

–The provision for credit losses’ line item in the condensed consolidated statement of profit or loss.


June 30, 2025	Loans		Loan commitments and financial guarantee contracts	Securities		Cash and due from banks	Total
	At amortized cost	FVOCI		At amortized cost	FVOCI
Net effect of changes in allowance for expected credit losses	2,381	—	(91)	15	—	49	2,354
Financial instruments that have been derecognized during the period	(26,743)	—	(3,063)	(297)	(14)	—	(30,117)
New financial assets originated or purchased	27,886	231	9,656	130	95	—	37,998
Total	3,524	231	6,502	(152)	81	49	10,235


June 30, 2024	Loans		Loan commitments and financial guarantee contracts	Securities		Cash and due from banks	Total
	At amortized cost	FVOCI		At amortized cost	FVOCI
Net effect of changes in allowance for expected credit losses	937	—	(545)	1	(523)	—	(130)
Financial instruments that have been derecognized during the period	(17,512)	—	(2,884)	—	(375)	—	(20,771)
New financial assets originated or purchased	20,334	126	9,858	21	275	—	30,614
Total	3,759	126	6,429	22	(623)	—	9,713

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iii.Credit-impaired financial assets

Credit-impaired loans and advances are graded 8 to 10 in the Bank’s internal credit risk grading system.

The following table sets out a reconciliation of changes in the carrying amount of the allowance for credit losses for credit-impaired financial assets:



Loans at amortized cost:	June 30, 2025	December 31, 2024
Credit-impaired loans at beginning of period/year	12,483	6,898
Classified as credit-impaired during the period/year	249	1,472
Change in allowance for expected credit losses	1,002	2,832
Interest income	94	146

Recoveries	—	1,135
Credit-impaired loans at end of period/year	13,828	12,483



Securities at amortized cost:	June 30, 2025	December 31, 2024


Change in allowance for expected credit losses	—	(331)


Recoveries	—	331
Credit-impaired for investments at amortized cost at end of period/year	—	—

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

iv.Concentrations of credit risk

The Bank monitors concentrations of credit risk by sector, industry and country. An analysis of concentrations of credit risk from loans, loan commitments, financial guarantees and securities is as follows.

Concentration by sector and industry



	Loans at amortized cost		Loan commitments, financial guarantee contracts and acceptances outstanding		Securities at amortized

	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Gross amount	8,631,371	8,461,987	602,232	245,065	1,279,865	1,103,755
Amount committed/guaranteed	—	—	1,619,958	1,414,380	—	—

Concentration by sector
Corporations:
Private	4,805,743	4,410,940	1,254,442	913,266	695,094	613,629
State-owned	1,086,653	974,470	131,195	82,241	27,300	12,039
Financial institutions:
Private	2,339,817	2,567,264	126,775	140,287	335,522	357,891
State-owned	334,596	426,469	709,778	523,651	66,787	28,650
Sovereign	64,562	82,844	—	—	155,162	91,546
Total	8,631,371	8,461,987	2,222,190	1,659,445	1,279,865	1,103,755

Concentration by industry
Financial institutions	2,619,377	2,993,733	836,553	663,938	440,927	403,257
Manufacturing	2,629,056	2,370,275	527,368	555,844	391,171	369,999
Oil and petroleum derived products	974,348	963,161	459,216	95,878	98,545	89,047
Agricultural	482,585	454,285	50,796	32,229	—	—
Services	724,829	636,000	185,995	163,396	133,984	114,764
Mining	299,430	271,186	66,857	51,413	19,979	14,866
Sovereign	64,561	82,843	—	—	116,545	54,517
Other	837,185	690,504	95,405	96,747	78,714	57,305
Total	8,631,371	8,461,987	2,222,190	1,659,445	1,279,865	1,103,755

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Concentration by sector and industry at FVOCI



	Loans at FVOCI		Securities FVOCI
	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Gross amount	34,210	—	99,060	99,486


Concentration by sector
Corporations:

State-owned	—	—	50,668	—
Financial institutions:
Private	29,231	—	—	—
State-owned	4,979	—	48,392	99,486

Total	34,210	—	99,060	99,486

Concentration by industry
Financial institutions	34,210	—	48,392	99,486

Oil and petroleum derived products	—	—	50,668	—





Total	34,210	—	99,060	99,486

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Concentration by country risk financial instruments at amortized cost


	Loans at amortized cost		Commitments, financial guarantee contracts and acceptances outstanding		Securities at amortized cost


	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Gross amount	8,631,371	8,461,987	602,232	245,065	1,279,865	1,103,755
Amount committed/guaranteed	—	—	1,619,958	1,414,380	—	—

Concentration by country
Argentina	176,062	113,226	79,677	248	—	—
Australia	—	—	—	—	9,919	9,906
Belgium	20,166	17,859	—	—	15,698	15,181
Bolivia	—	—	—	1,000	—	—
Brazil	1,255,769	1,257,185	241,464	188,125	11,791	24,281
Canada	6,285	11,718	26,155	26,413	44,956	44,828
Chile	451,015	454,602	68,635	50,976	29,760	37,713
China	14,877	14,995	—	—	—	—
Colombia	859,221	920,975	78,459	82,225	15,019	15,143
Costa Rica	487,595	357,112	52,866	55,263	8,132	8,128

Dominican Republic	820,436	855,539	107,273	122,057	—	—
Ecuador	191,382	223,461	313,025	269,369	—	—
El Salvador	55,238	71,716	21,000	20,000	—	—
France	59,929	95,577	—	46,573	15,103	14,985
Germany	—	—	15,000	15,000	29,894	29,737
Guatemala	1,156,062	1,011,790	152,786	113,028	—	—
Honduras	212,835	219,527	1,175	1,625	—	—

Ireland	—	—	—	—	14,404	14,407

Italy	10,132	1,747	—	—	—	—
Jamaica	89,757	43,503	—	—	—	—
Japan	8,096	9,446	—	—	59,717	61,834
Korea	—	—	—	—	34,354	14,448

Mexico	1,015,016	1,015,738	175,606	184,208	3,302	27,898
Netherlands	—	—	23,564	25,764	—	—
Norway	—	—	—	—	10,049	10,092
Panama	518,509	455,288	18,696	22,243	73,200	71,552
Paraguay	215,326	196,674	150	230	—	—
Peru	328,738	418,460	452,678	356,978	9,920	30,878
Puerto Rico	14,127	20,762	25,000	10,000	—	—
Qatar					18,415
Arabia Saudi	—	—		—	48,202	—
Singapore	147,870	282,311	7,725	6,514	—	—
Trinidad and Tobago	188,530	167,522	6,514	—	734,996	—
Spain	—	—	—	8	—	—
Sweden	—	—	—	—	14,879	14,832
Suriname			150,000
United States of America	101,482	137,642	6,514	7,114	—	618,680
United Kingdom	83,642	74,985	150,000	—	50,032	39,232
Uruguay	—	12,627	54,742	54,484	—	—
Multilateral	—	—	—	—	28,123	—
Total	8,631,371	8,461,987	2,222,190	1,659,445	1,279,865	1,103,755

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Risk rating and concentration by country financial instruments at FVOCI


	Loans at FVOCI		Securities at FVOCI
	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Gross amount	34,210	—	99,060	99,486

Concentration by country
Colombia	—	—	50,668	—

El Salvador	24,108	—	—	—













Panama	10,102	—	—	—







Multilateral	—	—	48,392	99,486
Total	34,210	—	99,060	99,486

v.Offsetting financial assets and liabilities

The following tables include financial assets and liabilities that are offset in the condensed consolidated financial statement or subject to an enforceable master netting arrangement:

Derivative financial instruments – assets


	June 30, 2025
	Gross amounts of assets	Gross amounts offset in the consolidated statement of financial position	Net amount of assets presented in the consolidated statement of financial position	Gross amounts not offset in the consolidated statement of financial position		Net amount
				Financial instruments	Cash collateral received
Derivative financial instruments used for hedging	63,713	—	63,713	—	(193,309)	(129,596)
Total	63,713	—	63,713	—	(193,309)	(129,596)


	December 31, 2024
	Gross amounts of assets	Gross amounts offset in the consolidated statement of financial position	Net amount of assets presented in the consolidated statement of financial position	Gross amounts not offset in the consolidated statement of financial position		Net amount
				Financial instruments	Cash collateral received
Derivative financial instruments used for hedging	22,315	—	22,315	—	(6,410)	15,905
Total	22,315	—	22,315	—	(6,410)	15,905

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

A. Credit risk (continued)

Securities sold under repurchase agreements and derivative financial instruments – liabilities


	June 30, 2025
	Gross amounts of liabilities	Gross amounts offset in the consolidated statement of financial position	Net amount of assets presented in the consolidated statement of financial position	Gross amounts not offset in the consolidated statement of financial position		Net amount
				Financial instruments	Cash collateral received
Securities sold under repurchase agreements at amortized cost	(196,562)	—	(196,562)	226,114	536	30,088

Derivative financial instruments used for hedging at FVTPL	(69,217)	—	(69,217)	—	58,333	(10,884)
Total	(265,779)	—	(265,779)	226,114	58,869	19,204


	December 31, 2024
	Gross amounts of liabilities	Gross amounts offset in the consolidated statement of financial position	Net amount of assets presented in the consolidated statement of financial position	Gross amounts not offset in the consolidated statement of financial position		Net amount
				Financial instruments	Cash collateral received
Securities sold under repurchase agreements at amortized cost	(212,931)	—	(212,931)	239,046	564	26,679

Derivative financial instruments used for hedging at FVTPL	(141,705)	—	(141,705)	—	116,743	(24,962)
Total	(354,636)	—	(354,636)	239,046	117,307	1,717

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk

i.Exposure to liquidity risk

The key measure used by the Bank for managing liquidity risk is the ratio of net liquid assets to deposits from customers and funding with a a remaining tenor of 30 days. For this purpose, ‘net liquid assets’ include cash and cash equivalents which consist of deposits from banks and customers, as well as corporate debt securities with investment grade. The following table details the Bank's liquidity ratios:



	June 30, 2025		December 31, 2024
At the end of the period/year	161.05	%	264.58	%
Period/year average	130.25	%	181.75	%
Maximum of the period/year	212.53	%	335.28	%
Minimun of the period/year	103.63	%	107.20	%

The following table includes the Bank’s liquid assets by country risk:


	June 30, 2025				December 31, 2024
(in millions of USD dollars)	Cash and due from banks	Securities FVOCI	Total		Cash and due from banks	Securities FVOCI	Total
United State of America	1907	—	1,907	—	1,650	—	1,650
Other O.E.C.D countries	1	—	1		41	—	41
Latin America	3	—	3		3	—	3

Multilateral	—	48	48		125	99	224
Total	1,911	48	1,959		1,819	99	1,918

The following table includes the Bank’s demand deposits from customers and its ratio to total deposits from customers:



	June 30, 2025		December 31, 2024
(in millions of USD dollars)
Demand and "overnight" deposits	1,165		694
Demand and "overnight" deposits to total deposits	18.08	%	12.82	%

The liquidity requirements resulting from the Bank’s demand deposits from customers is satisfied by the Bank’s liquid assets as follows:



	June 30, 2025		December 31, 2024
(in millions of USD dollars)
Total liquid assets	1,959		1,918
Total assets to total liabilities	30.39	%	35.45	%
Total liquid assets in the Federal Reserve of the United States of America	95.51	%	53.51	%

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

Even though the average term of the Bank’s assets exceeds the average term of its liabilities, the associated liquidity risk is diminished by the short-term nature of a significant portion of the loan portfolio, since the Bank is primarily engaged in financing foreign trade.

The following table includes the carrying amount for the Bank’s loans and securities short-term portfolio with maturity within one year based on their original contractual term along with its average remaining term:



(in millions of USD dollars)	June 30, 2025	December 31, 2024
Loan portfolio at amortized cost and investment portfolio less than/equal to 1 year according to its original terms	5,057	5,127
Average term (days)	192	187

The following table includes the carrying amount for the Bank’s loans and securities medium term portfolio with maturity over one year based on their original contractual terms along with their average remaining term:



(in millions of USD dollars)	June 30, 2025	December 31, 2024
Loan portfolio at amortized cost and investment portfolio greater than/equal to 1 year according to its original terms	4,903	4,438
Average term (days)	1402	1388

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

ii.Maturity analysis for financial liabilities and financial assets

The following table details the future undiscounted cash flows of financial assets and liabilities grouped by their remaining maturity with respect to the contractual maturity:


	June 30, 2025
	Up to 3 months	3 to 6 months	6 months to 1 year	1 to 5 years	More than 5 years	Gross inflows (outflows)	Carrying amount
Assets
Cash and due from banks	1,977,211	20,824	—	—	—	1,998,035	1,997,581
Securities	53,174	54,542	213,887	1,112,098	109,212	1,542,913	1,377,813
Loans	3,171,652	1,575,675	1,301,667	3,121,681	234,147	9,404,822	8,583,899
Trading derivative financial instruments - assets	—	—	—	—	2,189	2,189	2,189
Hedging derivative financial instruments - assets	7,245	5,265	5,496	43,354	2,353	63,713	63,713
Total	5,209,282	1,656,306	1,521,050	4,277,133	347,901	13,011,672	12,025,195

Liabilities
Trading derivative financial instruments - liabilities	—	—	—	—	(191)	(191)	(191)
Deposits	(5,202,179)	(748,192)	(214,114)	(334,753)	—	(6,499,238)	(6,491,382)
Securities sold under repurchase agreements	(84,776)	(23,389)	(33,617)	(55,738)	—	(197,520)	(196,562)
Borrowings and debt	(1,183,177)	(416,246)	(370,584)	(1,770,222)	(43,855)	(3,784,084)	(3,779,353)
Interest payable - Borrowings and debt	(46,984)	(39,398)	(72,159)	(213,485)	(8,701)	(380,727)	(44,581)
Lease liabilities	(359)	(347)	(709)	(5,634)	(11,664)	(18,713)	(18,713)
Hedging derivative financial instruments - liabilities	(30)	(220)	(6,456)	(62,478)	(33)	(69,217)	(69,217)
Total	(6,517,505)	(1,227,792)	(697,639)	(2,442,310)	(64,444)	(10,949,690)	(10,599,999)

Subtotal net position	(1,308,223)	428,514	823,411	1,834,823	283,457	2,061,982	1,425,196

Off-balance sheet contingencies
Confirmed letters of credit	281,632	87,372	5,753	—	—	374,757
Stand-by letters of credit and guarantees	229,587	95,933	232,073	84,948	—	642,541
Loans and letter of credit commitments	37,243	30,556	68,264	381,596	85,000	602,659
Total	548,462	213,861	306,090	466,544	85,000	1,619,957
Total net position	(1,856,685)	214,653	517,321	1,368,279	198,457	442,025

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)


	December 31, 2024
	Up to 3 months	3 to 6 months	6 months to 1 year	1 to 5 years	More than 5 years	Gross inflows (outflows)	Carrying amount
Assets
Cash and due from banks	1,944,338	5,286	15,710	—	—	1,965,334	1,965,145

Securities	84,980	66,341	109,616	1,036,660	44,522	1,342,119	1,201,930
Loans	2,759,031	2,018,051	1,557,065	2,583,263	247,238	9,164,648	8,383,829
Hedging derivative financial instruments - assets	1,218	9,484	951	10,592	70	22,315	22,315
Total	4,789,567	2,099,162	1,683,342	3,630,515	291,830	12,494,416	11,573,219

Liabilities

Deposits	(4,413,516)	(597,055)	(354,883)	(93,369)	—	(5,458,823)	(5,461,901)
Securities sold under repurchase agreements	(101,528)	—	(23,268)	(89,355)	—	(214,151)	(212,931)
Borrowings and debt	(1,089,794)	(636,362)	(591,934)	(2,012,423)	(38,012)	(4,368,525)	(4,352,316)
Interest payable - Borrowings and debt	(49,113)	(51,997)	(83,583)	(261,617)	(9,413)	(455,723)	(37,508)
Lease liabilities	(244)	(276)	(684)	(5,592)	(12,437)	(19,233)	(19,232)
Hedging derivative financial instruments - liabilities	(9,379)	(70)	(1,192)	(129,609)	(1,455)	(141,705)	(141,705)
Total	(5,663,574)	(1,285,760)	(1,055,544)	(2,591,965)	(61,317)	(10,658,160)	(10,225,593)

Subtotal net position	(874,007)	813,402	627,798	1,038,550	230,513	1,836,256	1,347,626

Off-balance sheet contingencies
Confirmed letters of credit	358,624	141,422	36,304	—	—	536,350
Stand-by letters of credit and guarantees	141,843	133,149	178,798	66,495	—	520,285
Loans and letter of credit commitments	60,341	39,900	40,350	208,868	8,286	357,745
Total	560,808	314,471	255,452	275,363	8,286	1,414,380
Total net position	(1,434,815)	498,931	372,346	763,187	222,227	421,876

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

B.Liquidity risk (continued)

The amounts in the tables above have been compiled as follows:


Type of financial instrument						Basis on which amounts are compiled
Financial assets and liabilities						Undiscounted cash flows, which include estimated interest payments.

Issued financial guarantee contracts, and loan commitments						Earliest possible contractual maturity. For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called.

Derivative financial assets and financial liabilities						Contractual undiscounted cash flows. The amounts shown are the gross nominal inflows and outflows for derivatives that simultaneously settle gross or net amounts.

Future undiscounted cash flow presented in the table above on some financial assets and financial liabilities vary materially from contractual cash flows. The principal difference is that the undiscounted future cash flows of floating rate assets and liabilities are calculated using projected market rates.

iii.Liquidity reserves

As part of the management of liquidity risk arising from financial liabilities, the Bank holds liquid assets comprising cash and cash equivalents.

The following table sets out the components of the Banks’s liquidity reserves:


	June 30, 2025		December 31, 2024
	Amount	Fair Value	Amount	Fair Value
Balances with Federal Reserve of the United States of America	1,871,057	1,871,057	1,020,858	1,020,858
Cash and balances with other bank (1)	39,875	39,875	799,073	799,073
Total Liquidity reserves	1,910,932	1,910,932	1,819,931	1,819,931

(1)Excludes pledged deposits.

iv.Financial assets available to support future funding

The following table sets out the Bank’s financial assets available to support future funding:


	June 30, 2025		December 31, 2024
	Guaranteed	Available as collateral	Guaranteed	Available as collateral
Cash and due from banks	85,469	1,910,932	143,907	1,819,931
Notional of investment securities	610,285	786,532	558,981	665,715
Loans at amortized cost - outstanding principal balance	—	8,562,635	—	8,375,172
Total	695,754	11,260,099	702,888	10,860,818

The total financial assets recognized in the consolidated statement of financial position that had been pledged as collateral for liabilities as of June 30, 2025 and December 31, 2024 are show in the table above.

The Bank manages market risk by considering the consolidated financial situation of the Bank.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk

i.Interest rate risk

The table below details the Bank's exposure based on interest rate repricing/maturity date for the notional amount of the interest bearing financial assets and liabilities on interest-bearing financial assets and liabilities:


	June 30, 2025
	Up to 3 months	3 to 6 months	6 months to 1 year	1 to 5 years	More than 5 years	Non interest rate risk	Total
Assets
Cash and due from banks	1,973,905	20,000	—	—	—	2,496	1,996,401
Securities - principal	218,928	53,258	205,747	814,477	70,220	—	1,362,630
Loans - principal balance	5,630,193	2,017,655	709,412	234,376	5,217	—	8,596,853
Total	7,823,026	2,090,913	915,159	1,048,853	75,437	2,496	11,955,884

Liabilities
Demand deposits and time deposits	(5,203,815)	(789,698)	(206,364)	(246,483)	—	(111)	(6,446,471)
Securities sold under repurchase agreements	(144,276)	(23,389)	—	(28,897)	—	—	(196,562)
Borrowings and debt	(2,924,656)	(617,143)	(165,007)	(70,557)	(1,990)	—	(3,779,353)
Total	(8,272,747)	(1,430,230)	(371,371)	(345,937)	(1,990)	(111)	(10,422,386)

Net effect of derivative financial instruments held
for interest risk management	7,216	5,045	(960)	(19,125)	2,320	—	(5,504)
Total interest rate sensitivity	(442,505)	665,728	542,828	683,791	75,767	2,385	1,527,994


	December 31, 2024
	Up to 3 months	3 to 6 months	6 months to 1 year	1 to 5 years	More than 5 years	Non interest rate risk	Total
Assets
Cash and due from banks	1,940,840	5,000	15,000	—	—	2,998	1,963,838
Securities - principal	83,294	64,955	104,954	907,612	28,510	—	1,189,325
Loans - principal balance	5,053,040	2,025,688	1,039,106	248,045	9,293	—	8,375,172
Total	7,077,174	2,095,643	1,159,060	1,155,657	37,803	2,998	11,528,335

Liabilities
Demand deposits and time deposits	(4,404,015)	(645,546)	(336,377)	(24,130)	—	(2,656)	(5,412,724)
Securities sold under repurchase agreements	(133,898)	—	(58,636)	(20,397)	—	—	(212,931)
Borrowings and debt	(2,932,280)	(801,575)	(460,355)	(158,106)	—	—	(4,352,316)
Total	(7,470,193)	(1,447,121)	(855,368)	(202,633)	—	(2,656)	(9,977,971)

Net effect of derivative financial instruments held
for interest risk management	(8,159)	9,414	(242)	(119,018)	(1,385)	—	(119,390)
Total interest rate sensitivity	(401,178)	657,936	303,450	834,006	36,418	342	1,430,974

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

Interest rate risk management is complemented by monitoring the sensitivity of the Bank´s financial assets and liabilities, considering several standard interest rate scenarios. The standard scenarios considered monthly include a parallel decline or increase of 50bps, 100bps, and 200 bps across all yield curves, which are evaluated based on market behavior.

The Bank performs a sensitivity analysis of the most likely increase or decrease in market interest rates at the reporting date, assuming non-asymmetric movements in the yield curves and a constant financial situation to assess the effect on profit or loss.

Interest rate sensitivity analysis affect reported equity in the following ways:

- Retained earnings: increases or decreases in net interest income and in fair values of derivatives reported in profit or loss;

- Fair value reserve: increases or decreases in fair values of financial assets at FVOCI reported directly in equity; and

- Hedging reserve: increases or decreases in fair values of hedging instruments designated in qualifying cash flow hedge relationships.

This sensitivity provides an analysis of changes in interest rates, considering the previous year´s interest rate volatility.

Additionally, the Bank measures the sensitivity of the equity value (EVE) following the methodology described by the Basel Committee on Banking Supervision, which measures the interest rate risk embedded in the equity value, which for interest rate risk purposes is defined as the difference between the net present value of assets less the net present value of liabilities due, based on the impact of a change in interest rates on such present values.

The following table presents the sensitivity analysis performed for the Bank:


	Change in interest rate	Effect on profit or loss	Effect on equity	Effect on equity value (EVE)
June 30, 2025	+50 bps	12	2,357	(13,386)
	-50 bps	(590)	(2,407)	13,568

December 31, 2024	+50 bps	343	9,586	(14,709)
	-50 bps	(668)	(9,770)	14,714

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

3.Financial risk review (continued)

C.Market risk (continued)

ii. Foreign exchange risk

The following table presents the maximum exposure amount in foreign currency of the Bank’s carrying amount of total assets and liabilities, except for hedging relationships


	June 30, 2025
	Brazilian Real	European Euro	Japanese Yen	Colombian Peso	Mexican Peso	Other Currencies(1)	Total
Exchange rate	5.43	1.18	144.20	4,081.63	18.76
Assets
Cash and due from banks	66	238	1	47	963	22	1,337
Loans	—	29,349	—	—	414,851	—	444,200
Total Assets	66	29,587	1	47	415,814	22	445,537

Liabilities

Deposits		262					262
Borrowings and debt	—	(29,438)	—	—	(415,815)	—	(445,253)
Total liabilities	—	(29,176)	—	—	(415,815)	—	(444,991)

Net currency position	66	411	1	47	(1)	22	546


	December 31, 2024
	Brazilian Real	European Euro	Japanese Yen	Colombian Peso	Mexican Peso	Other Currencies(1)	Total
Exchange rate	6.17	1.04	157.28	4,405.29	20.89
Assets
Cash and due from banks	110	242	1	34	1,210	19	1,616
Loans	—	25,886	—	—	310,630	—	336,516
Total Assets	110	26,128	1	34	311,840	19	338,132

Liabilities
Borrowings and debt	—	(25,748)	—	—	(311,562)	—	(337,310)
Total liabilities	—	(25,748)	—	—	(311,562)	—	(337,310)

Net currency position	110	380	1	34	278	19	822

(1)It includes other currencies such as: Argentine pesos, Australian dollar, Swiss franc, Sterling pound, Costa Rican colones and Peruvian soles.

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments

A.Recurring fair value measurements

Financial instruments measured at fair value on a recurring basis by caption on the consolidated statement of financial position using the fair value hierarchy are described below:


	June 30, 2025
	Level 1	Level 2	Level 3	Total
Assets
Securities and other financial assets:
Securities at FVOCI - Corporate debt	—	97,164	—	97,164

Loans at FVOCI	—	34,402	—	34,402

Total securities and other financial assets	—	131,566	—	131,566
	—
Derivative financial instruments - assets:
For trading
Interest rate swaps	—	219	—	219

Foreign exchange forwards	—	1,970	—	1,970
For hedging
Interest rate swaps	—	28,433	—	28,433
Cross-currency swaps	—	35,254	—	35,254
Foreign exchange forwards	—	26	—	26
Total derivative financial instrument assets	—	65,902	—	65,902
Total assets at fair value	—	197,468	—	197,468

Liabilities
Derivative financial instruments - liabilities:
For trading
Interest rate swaps	—	(191)	—	(191)


For hedging
Interest rate swaps	—	(6,066)	—	(6,066)
Cross-currency swaps	—	(62,933)	—	(62,933)
Foreign exchange forwards	—	(218)	—	(218)
Total derivative financial instruments - liabilities	—	(69,408)	—	(69,408)
Total liabilities at fair value	—	(69,408)	—	(69,408)

Banco Latinoamericano de Comercio Exterior, S. A. and Subsidiaries

Notes to the unaudited interim condensed consolidated financial statements


(Amounts expressed in thousands of U.S. dollars, unless otherwise indicated)

4.Fair value of financial instruments (continued)

A.Recurring fair value measurements (continued)


	December 31, 2024
	Level 1	Level 2	Level 3	Total
Assets

Securities at FVOCI - Corporate debt	—	98,748	—	98,748






Derivative financial instruments - assets:




For hedging
Interest rate swaps	—	10,805	—	10,805
Cross-currency swaps	—	11,510	—	11,510

Total derivative financial instrument assets	—	22,315	—	22,315
Total assets at fair value	—	121,063	—	121,063

Liabilities
Derivative financial instruments - liabilities:




For hedging
Interest rate swaps	—	2,667	—	2,667
Cross-currency swaps	—	139,038	—	139,038

Total derivative financial instruments - liabilities	—	141,705	—	141,705

FOREIGN TRADE BANK OF LATIN AMERICA, INC. 6-K