Popular, Inc. · NASDAQ:BPOP
Popular — Kaufman Bros. conference (September 2008)
14 slides from Popular's conference presentation, Sep 3, 2008
Slide 1: Kaufman Bros. As of June 30, 2008
Kaufman Bros. As of June 30, 2008
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this Presentation that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Refor
Slide 3: Second Quarter Results
Second Quarter Results 1 On a taxable equivalent basis $ in millions (except per share data) 2008 2008 2007 2007 2007 2007 2Q 08 1Q 08 4Q 07 3Q 07 2Q 07 1Q 07 Net Interest Income $338 $357 $363 $360 $372 $355 Provision for Loan Losses (191) (168) (203) (148) (115) (96) Service Fees (Deposits & Other
Slide 4: 2Q Significant Events
2Q Significant Events Net Interest Income: Lower net interest income by $33.5 million, as compared to second quarter 2007, due to the sale and runoff of various low yielding assets. Provision for Loan Losses: Loan losses for the second quarter of 2008 increased by $75.5 million compared with second
Slide 5: P.R. Business
P.R. Business Despite challenging economic conditions, the Puerto Rican business continues to perform well overall. Current economic conditions, including a recessionary cycle in PR and deteriorating quality trends in the commercial and construction loan portfolios, have led to an increase in the pr
Slide 6: U.S. Business
U.S. Business U.S. business has been significantly impacted by credit market dislocation Rising charge-offs in PFH wholly-owned loans Increased writedowns in the value of subprime-related assets, including loans at PFH and securitization residuals Rising credit costs at U.S. bank, reflecting weaker
Slide 7: Processing Strategy-EVERTEC
Processing Strategy-EVERTEC Leveraging existing product offering and processing infrastructure to service other financial institutions and enter new markets Continuous improvement of quality levels Enhance competitiveness of ATH network Invest significantly in new technology developments Main initia
Slide 8: Briefing - P.R. Economy
Briefing - P.R. Economy Bottom line: Performance expected to remain weak but manageable in 2H 2008 Indicators to watch in 2008: Oil prices Housing sector November elections U.S. economy (i.e., P.R. tourism) Foreign, U.S. exports Fiscal budget 2008 Government still facing fiscal constraints Positive
Slide 9: Subprime Exposure
Subprime Exposure The Q4 recharacterization and the sale of loans to American General Finance on Q1'08 have reduced PFH's subprime mortgage exposure to $677 million as of June 30th, 2008. Sale of PFH loan and servicing assets to significantly reduce U.S. subprime assets Subprime loans at BPPR have a
Slide 10: Liquidity
Liquidity Banking subsidiary liquidity is currently strong: Short-term unsecured borrowings as of June 30th amounted to $1,064 million vs. $340 million in March 2008, and $3.8 billion in June 2007. There were $5 billion in strong sources of liquidity available: Fed Discount Window: $2.8 billion Unpl
Slide 11: Sale of PFH Assets
Sale of PFH Assets On August 29th, Popular announced an agreement to sell a substantial amount of loan and servicing assets from PFH The expected loss in connection with the sale is $450 million However, the company expects to remain "well capitalized" after booking the related losses It will increa
Slide 12: Capital Management
Capital Management Capital has remained at adequate levels throughout market turmoil. Quarter-end capital ratios continue to exceed "well-capitalized" levels, with over $1 billion of Tier 1 capital in excess of the regulatory "well capitalized requirement." During the 2Q 08, Popular successfully com
Slide 13: Closing Thoughts
Closing Thoughts The P.R. business is executing well in a very challenging environment and strengthening its competitive position. The U.S business has required structural changes to improve its core profitability Focus on profitability vs. growth Additional sales of U.S. assets are under considerat
Slide 14: As of June 30, 2008
As of June 30, 2008