The consolidated financial information in this document has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
Financial & Business Highlights
Solid profitability with Net Profits reaching $56.4 million in 1Q26 (+9% YoY), supported by continued balance sheet expansion and revenue generation. Earnings per share totaled $1.31 for 1Q26, reflecting the deduction of the AT1 coupon distribution from net profit attributable to common shareholders, in accordance with the applicable EPS calculation.
Adjusted Annualized Return on Equity stood at 14.2% for 1Q26, reflecting disciplined balance sheet growth, solid fee generation, and continued funding optimization. Including the effect of the AT1 issuance completed in late September 2025, the annualized Return on Equity ("ROE") reached 13.5% in 1Q26.
Net Interest Income ("NII") resulted in $70.2 million in 1Q26 (+8% YoY) mostly driven by higher average business volumes. Net Interest Margin ("NIM") stood at 2.34% for 1Q26 (-2bps YoY), reflecting lower base rates implemented in the fourth quarter of 2025 and increased market liquidity driving competitive pricing and margin compression, which was partially offset by improved funding costs driven by deposit growth, as well as pricing discipline.
Fees and non-interest income totaled $12.9 million for 1Q26 (+2% YoY), mainly driven by higher fees (+$2.5 million or +24% YoY) from the Bank's off-balance sheet business (letters of credit and commitments) supported by consistent client engagement and increased transactionality. Fee generation was also supported by the loan syndication desk, reflecting continued execution across the Bank's structuring and distribution capabilities.
Well-managed Efficiency Ratio of 26.5% for 1Q26, as higher total revenues (+7% YoY) compensated the increase in operating expenses (+5% YoY), associated with continuing investments in technology, modernization and other business initiatives related to the Bank's strategic priorities, including its associated operating costs and depreciation and amortization.
Credit Portfolio reached new all-time high at $13,487 million as of March 31, 2026 (+13% YoY), resulting from:
Commercial Portfolio EoP balances reaching a peak of $12,047 million at the end of 1Q26 (+13% YoY), reflecting strong growth across all products lines. In addition, the Bank created in this quarter a "Commercial Bond Portfolio" as a strategic capital deployment mechanism applied selectively within the Bank's existing credit framework, with an outstanding principal balance of $234 million as of March 31, 2026.
Treasury Investment Portfolio of $1,440 million (+14% YoY), mostly consisting of investment-grade securities outside of Latin America held at amortized cost, further enhancing country and credit-risk diversification and providing contingent liquidity funding.
Healthy asset quality, with most of the credit portfolio (97.5%) remaining low-risk or Stage 1 at the end of 1Q26. Stage 2 exposures increased to 2.2% of the portfolio at the end of 1Q26, resulting from the Bank's proactive and cautionary credit assessment against a backdrop of challenging macroeconomic and operating conditions. Impaired credits or Stage 3 principal balance remained unchanged at $38.7 million or 0.3% of total Credit Portfolio, with a reserve coverage of 2.9x.
Heightened and diversified deposit base, reaching historically high levels of $7,307 million at the end of 1Q26 (+25% YoY), representing 63% of the Bank's total funding sources (+6pp YoY). The Bank also maintained ample and constant access to interbank and debt capital markets, most recently denoted by the MXN4.3 billion bond issued in April 2026 in the Mexican capital market.
Strong Liquidity position at $1,988 million, or 14.5% of total assets as of March 31, 2026, mostly consisting of deposits placed with the Federal Reserve Bank of New York (80%).
The Bank's Tier 1 Basel III Capital and Regulatory Capital Adequacy Ratios resulted in 17.9% and 14.7% at the end of 1Q26, respectively, both well above internal targets and regulatory minimum and providing ample headroom for capital deployment.
Financial Snapshot
(US$ million, except percentages and per share amounts)
1Q26
4Q25
1Q25
QoQ(var.)
YoY (var.)
Key Income Statement Highlights
Net Interest Income ("NII")
$70.2
$70.8
$65.3
-1 %
8 %
Fees and commissions, net
$13.1
$14.5
$10.6
-9 %
24 %
(Loss) gain on financial instruments, net
($0.3)
$3.2
$2.0
-110 %
-117 %
Other income, net
$0.1
$0.4
$0.1
-75 %
-25 %
Total revenues
$83.1
$88.8
$77.9
-6 %
7 %
Impairment losses on financial instruments
($4.7)
($5.4)
($5.2)
-12 %
-9 %
Operating expenses
($22.0)
($27.4)
($21.0)
-20 %
