XML 49 R34.htm IDEA: XBRL DOCUMENT
v3.22.1

Business segment information | 12 Months Ended
--- | ---
Dec. 31, 2021
Business segment information |
Business segment information | 27. Business segment information The Bank’s activities are managed and executed in two business segments: Commercial and Treasury. Information related to each reportable segment is set out below. Business segment results are based on the Bank’s managerial accounting process, which assigns assets, liabilities, revenue and expense items to each business segment on a systematic basis. The maximum decision-making operating authority of the Bank is represented by the Chief Executive Officer and the Executive Committee, who periodically review the internal management reports for each division. Segment profit, as included in the internal management reports is used to measure performance as management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate within the same industry. The Bank’s net interest income represents the main driver of profits; therefore, the Bank presents its interest-earning assets by business segment, to give an indication of the size of business generating net interest income. Interest-earning assets also generate gains and losses on sales, mainly from financial instruments at FVOCI and financial instruments at FVTPL, which are included in other income, net. The Bank also discloses its other assets and contingencies by business segment, to give an indication of the size of business that generates net fees and commissions, also included in other income, net. The Commercial Business Segment encompasses the Bank’s core business of financial intermediation and fee generating activities developed to cater to corporations, financial institutions and investors in Latin America. These activities include the origination of bilateral short-term and medium-term loans, structured and syndicated credits, loan commitments, and financial guarantee contracts such as issued and confirmed letters of credit, stand-by letters of credit, guarantees covering commercial risk, and other assets consisting of customers’ liabilities under acceptances. Profits from the Commercial Business Segment include (i) net interest income from loans; (ii) fees and commissions from the issuance, confirmation, negotiation, acceptance and amendment of letters of credit, guarantees and loan commitments, and through loan structuring and syndication activities; (iii) gain on sale of loans generated through loan intermediation activities, such as infrequent sales in the secondary market; (iv) gain (loss) on sale on financial instruments measured at FVTPL; (v) reversal of (provision) for credit losses, (vi) gain (loss) on other non-financial assets, net; and (vii) direct and allocated operating expenses. The Treasury Business Segment focuses on managing the Bank’s investment portfolio, and the overall structure of its assets and liabilities to achieve more efficient funding and liquidity positions for the Bank, mitigating the traditional financial risks associated with the consolidated statements of financial position, such as liquidity, interest rate and currency rate. Interest-earning assets managed by the Treasury Business Segment include liquidity positions in cash and cash equivalents, as well as highly liquid corporate debt securities rated above ‘A-’, and financial instruments related to the investment management activities, consisting of securities at FVOCI and securities at amortized cost (the “Credit Investment Portfolio”). The Treasury Business Segment also manages the Bank’s interest-bearing liabilities, which constitute its funding sources, mainly deposits, securities sold under repurchase agreements and borrowings and debt, net Profits from the Treasury Business Segment include (i) net interest income derived from the above mentioned treasury assets and liabilities, (ii) gain (loss) on derivative financial instruments and foreign currency exchange, (iii) gain (loss) on sale of securities at FVOCI, (iv) reversal of (provision) for credit losses and (v) direct and allocated operating expenses. The following table provides certain information regarding the Bank’s operations by segment:
| December 31, 2021
| Commercial |  | Treasury |  | Total
Interest income | 129,758 |  |  | 11,125 |  |  | 140,883 |
Interest expense | (648) |  |  | (53,453) |  |  | (54,101) |
Inter-segment net interest income | (45,318) |  |  | 45,318 |  |  | — |
Net interest income | 83,792 |  |  | 2,990 |  |  | 86,782 |
Other income (expense), net | 19,188 |  |  | (1,764) |  |  | 17,424 |
Total income | 102,980 |  |  | 1,226 |  |  | 104,206 |
Provision for credit losses | (1,050) |  |  | (1,278) |  |  | (2,328) |
Gain (loss) on non-financial assets, net | 742 |  |  | — |  |  | 742 |
Operating expenses | (30,751) |  |  | (9,172) |  |  | (39,923) |
Segment profit (loss) | 71,921 |  |  | (9,224) |  |  | 62,697 |
Segment assets | 5,931,201 |  |  | 2,098,492 |  |  | 8,029,693 |
Segment liabilities | 219,505 |  |  | 6,812,455 |  |  | 7,031,960 |
| December 31, 2020
| Commercial |  | Treasury |  | Total
Interest income | 172,548 |  |  | 8,425 |  |  | 180,973 |
Interest expense | (690) |  |  | (87,833) |  |  | (88,523) |
Inter-segment net interest income | (83,937) |  |  | 83,937 |  |  | — |
Net interest income | 87,921 |  |  | 4,529 |  |  | 92,450 |
Other income (expense), net | 8,597 |  |  | (1,890) |  |  | 6,707 |
Total income | 96,518 |  |  | 2,639 |  |  | 99,157 |
Reversal of (provision for) credit losses | 1,889 |  |  | (425) |  |  | 1,464 |
Gain (loss) on non-financial assets, net | 296 |  |  | — |  |  | 296 |
Operating expenses | (28,021) |  |  | (9,303) |  |  | (37,324) |
Segment profit (loss) | 70,682 |  |  | (7,089) |  |  | 63,593 |
Segment assets | 4,989,009 |  |  | 1,293,081 |  |  | 6,282,090 |
Segment liabilities | 92,309 |  |  | 5,139,955 |  |  | 5,232,264 |
| December 31, 2019
| Commercial |  | Treasury |  | Total
Interest income | 253,462 |  |  | 20,220 |  |  | 273,682 |
Interest expense | (730) |  |  | (163,437) |  |  | (164,167) |
Inter-segment net interest income | (144,334) |  |  | 144,334 |  |  | — |
Net interest income | 108,398 |  |  | 1,117 |  |  | 109,515 |
Other income (expense), net | 15,577 |  |  | 1,565 |  |  | 17,142 |
Total income | 123,975 |  |  | 2,682 |  |  | 126,657 |
(Provision for) reversal of credit losses | (744) |  |  | 314 |  |  | (430) |
Gain (loss) on non-financial assets, net | 500 |  |  | — |  |  | 500 |
Operating expenses | (31,183) |  |  | (9,491) |  |  | (40,674) |
Segment profit (loss) | 92,548 |  |  | (6,495) |  |  | 86,053 |
Segment assets | 5,967,157 |  |  | 1,273,678 |  |  | 7,240,835 |
Segment liabilities | 134,657 |  |  | 6,081,693 |  |  | 6,216,350 |
Reconciliation information on reportable segments
| 2021 |  | 2020 |  | 2019
Profit for the year | 62,697 |  |  | 63,593 |  |  | 86,053 |
Assets: |  |  |  |  |
Assets from reportable segments | 8,029,693 |  |  | 6,282,090 |  |  | 7,240,835 |
Other assets - unallocated | 8,418 |  |  | 6,808 |  |  | 8,831 |
Total assets | 8,038,111 |  |  | 6,288,898 |  |  | 7,249,666 |
Liabilities: |  |  |  |  |
Liabilities from reportable segments | 7,031,960 |  |  | 5,232,264 |  |  | 6,216,350 |
Other liabilities - unallocated | 14,361 |  |  | 18,714 |  |  | 17,149 |
Total liabilities | 7,046,321 |  |  | 5,250,978 |  |  | 6,233,499 |
The Bank applied IFRS 16, as of January 1, 2019, using the modified retrospective approach to recognize right-of-use assets for $17.4 million presented within equipment and leasehold improvements and lease liabilities for $20.9 million. As of December 31, 2021 2020 and 2019, assets and liabilities were allocated between Commercial and Treasury segments. As a result of the adoption of that new standard in 2019, certain amounts related to equipment and leasehold improvements and intangibles were reclassified for presentation purposes in the consolidated financial statements. Geographic information The geographic information analyzes the Bank’s revenue and non-current assets by the Bank’s country of domicile and other countries. In presenting the geographic information below, segment revenue is based on customer’s country risk and segment non-current assets are based on the geographic location of the assets.
2021 |  | Panama |  | Brazil |  | Mexico |  | Colombia |  | Guatemala |  | Ecuador |  | Argentina |  | Other |  | Total
Total revenues |  | 5,872 |  |  | 9,802 |  |  | 17,318 |  |  | 12,116 |  |  | 10,862 |  |  | 8,990 |  |  | 5,454 |  |  | 33,792 |  |  | 104,206 |
Non-current assets* |  | 18,795 |  |  | 138 |  |  | 75 |  |  | 51 |  |  | — |  |  | — |  |  | 157 |  |  | 158 |  |  | 19,374 |
2020 |  | Panama |  | Brazil |  | Mexico |  | Colombia |  | Guatemala |  | Ecuador |  | Argentina |  | Other |  | Total
Total revenues |  | 7,580 |  |  | 7,054 |  |  | 14,480 |  |  | 13,462 |  |  | 8,494 |  |  | 9,242 |  |  | 8,163 |  |  | 30,682 |  |  | 99,157 |
Non-current assets* |  | 19,888 |  |  | 129 |  |  | 535 |  |  | 56 |  |  | — |  |  | — |  |  | 212 |  |  | 591 |  |  | 21,411 |
2019 |  | Panama |  | Brazil |  | Mexico |  | Colombia |  | Guatemala |  | Ecuador |  | Argentina |  | Other |  | Other
Total revenues |  | 8,649 |  |  | 13,122 |  |  | 18,757 |  |  | 10,348 |  |  | 7,906 |  |  | 13,640 |  |  | 14,889 |  |  | 39,346 |  |  | 126,657 |
Non-current assets* |  | 20,976 |  |  | 222 |  |  | 1,510 |  |  | 55 |  |  | — |  |  | — |  |  | 185 |  |  | 725 |  |  | 23,673 |
* Includes equipment and leasehold improvements, intangibles and investment properties Disaggregation of revenue from contract with customers As of December 31, 2021, 2020, and 2019, respectively, the Bank has no customer, either individually or as group of companies, that represents more than 10% of total revenues.

X
- References No definition available. + Details
Name: | blx_DisclosureOfReportingSegmentAbstract
Namespace Prefix: | blx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of operating segments. [Refer: Operating segments [member]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 8 -IssueDate 2021-01-01 -Paragraph 23 -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2021-en-r&anchor=para_23&doctype=Standard -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfOperatingSegmentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration