Popular, Inc. · NASDAQ:BPOP
Popular — Investor Presentation (October 2005)
25 slides from Popular's investor presentation, Oct 26, 2005
Slide 1: Investor Presentation As of September 30, 2005
Investor Presentation As of September 30, 2005 EXHIBIT 99.1
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: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Pan-American financial institution with market share dominance and strong brand recognition Strong growth fundamentals and market demographics Diverse revenue sources Strong management team Stock trades at discount to U.S. peers
Slide 4: Best in Class Returns to Shareholders
1 year 5 years 10 years 15 years 20 years 25 years 31.21 18.2 26.83 20.7 21.6 18.86 Note: All calculations from 12/31/1979 to 12/31/04 including dividend and dividend reinvestments BEST IN CLASS RETURNS TO SHAREHOLDERS Stock Price Appreciation Total Return Including Dividend 1988 1989 1990 1991 1992
Slide 5: Reported Historical EPS
REPORTED HISTORICAL EPS 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E* 0.42 0.46 0.53 0.67 0.75 0.83 0.92 0.99 1.09 1.31 1.74 1.79 1.92 (US $) * Based on IBES consensus estimates 9/30/05 Ten-Year CAGR: 15.60% Projected Long-Term Growth of 9.67% vs. Peer Median of 8.59%*
Slide 6: Popular at a Glance
POPULAR AT A GLANCE Founded in 1893 Diversified financial services and transaction processing company. Operations in Puerto Rico, the Caribbean, the mainland United States and Central America. Largest Puerto Rican financial institution and largest Hispanic bank in the United States. 28th largest U.S
Slide 7: Popular's Strategic Objectives
POPULAR'S STRATEGIC OBJECTIVES POPULAR'S STRATEGIC OBJECTIVES Puerto Rico Strengthen our competitive position in our main market by offering the best and most complete financial services in an efficient and convenient manner. Our services will respond to the needs of all segments of the market in or
Slide 8: Puerto Rico Highlights 2004
PUERTO RICO HIGHLIGHTS 2004 Puerto Rico participates in the U.S. Judicial and courts system Nationality and currency are U.S. All Puerto Rican public companies trade in U.S. markets and are regulated by U.S. institutions Country Risk = U.S. Risk Source: Government Development Bank of Puerto Rico *Fi
Slide 9: Banco Popular de Puerto Rico
BANCO POPULAR DE PUERTO RICO Leading Market Share 6/30/05 22.75% in loans 33.32% in deposits* As of 9/30/05: $24.6 billion in assets $14.3 billion in deposits 5,278 employees * Excludes brokered deposits Leading financial institution on the island with 192 local branches Leading financial institutio
Slide 10: Non-Banking Subsidiaries as of 9/30/05
Non-Banking Subsidiaries as of 9/30/05 PUERTO RICO FORTRESS $21.8 MM Annual Revenues for 2004 2 Offices & Presence at some BPPR branches 177 Employees $1.4 Billion Annual Originations in 2004 $1,190 Million in Total Assets 31 Offices 484 Employees $7.4 Billion in Deals during 2004 $3.3 Billion Asset
Slide 11: United States Mainland Operations
UNITED STATES MAINLAND OPERATIONS US Distribution System: Banco Popular North America: 135 branches in NY, CA, TX, NJ, FL and IL; Popular Financial Holdings (Equity One): 211 offices in 34 states. Upcoming E-Loan Acquisition, closing in the 4th quarter, will strengthen internet distribution of finan
Slide 12: Popular North America as of 9/30/05
POPULAR NORTH AMERICA as of 9/30/05 Non-Banking Operations Banking Operations California $3,148MM Total Assets 45 Branches 358 Employees New Jersey $936MM Total Assets 14 Branches 101 Employees Florida $1,878MM Total Assets 18 Branches 311 Employees Texas $1,151MM Total Assets 7 Branches 106 Employe
Slide 13: Processing
PROCESSING Popular is a leader in electronic data processing throughout the Caribbean Basin... throughout the Caribbean Basin... throughout the Caribbean Basin... Serving clients in: Puerto Rico United States Dominican Republic Costa Rica Venezuela Haiti El Salvador Honduras Bermuda Belize Nicaragua
Slide 14: Processing Strategy
PROCESSING STRATEGY Build EVERTEC into a full service 3rd party provider with a dominant presence in the Caribbean basin and significant penetration of the small business merchant processing and U.S. community banking niches. Expand Popular's 20 years of experience in ATH/POS Networks to Central Ame
Slide 15: Continuing Diversification
Continuing Diversification Revenues by Geographical Area 2004 1999 Other US PR 1999 5 25 70 Other US PR 2004 0.034 0.3263 0.6432 Net Income by Business Line 2004 1999 Commercial Banking Mortgage & Consumer Lending Auto Lease Financing Other 0.88 0.08 0.05 -0.01 * The "Other" category includes all ho
Slide 16: Pan-American Revenue Growth
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 72 100.7 141.9 189.6 386.2 420.3 442.3 516 573 646.5 Pan-American Revenue Growth * Revenues exclude $19.7 and $18.7 million in derivative losses for 2001 and 2002, respectively. Seven-Year CAGR (1998 - 2004): 24.19% * ($ Millions) *
Slide 17: Financial Performance
(1) Non-interest expense divided by net interest income plus non-interest income (Excludes gain/losses on sale and valuation adjustments of securities and non-recurring income such as gain on the sale of real estate). (2) Taxable equivalent (3) As of 09/30/05 Financial Performance Net Interest Margi
Slide 18: Loan Portfolio
Total Loans for 2004: $28.7 billion (65% of total assets as of 12/31/04) 5 Year CAGR 1999 - 2004: 14.01% Loan Portfolio ($ millions)
Slide 19: Increasing Non-Interest Income
Increasing Non-Interest Income Total Non-Interest Income for 2004: $593.5* million 5 Year CAGR 1999 - 2004: 9.7% ($ in millions) *Excludes gain on sale of investment securities
Slide 20: Asset Quality
Asset Quality (1) In 2003, 2004 & 6/30/05, residential mortgages represented 56%, 64% and 62% of NPA, respectively. (2) Excludes loans held for sale. Recalculating Credit Quality Ratios Excluding Residential Mortgages and FASB 114 Assets
Slide 21: Interest Only Strips and Mortgage Servicing Rights
Interest Only Strips ("IO's") and Mortgage Servicing Rights ("MSR's") For the third quarter of 2005, gains of $8.9 million have been realized on the securitization transactions that met the sale criteria under SFAS No. 140. The Corporation also does securitization transactions that do not meet the S
Slide 22: Diversified Funding Sources
Diversified Funding Sources Total Funding Composition* *Figures as of 9/30/05 Total=$46.4 Billion Total=$22.6 Billion Deposit Composition
Slide 23: Strong Capital Position
All figures as of 06/30/05 Leverage Tier 1 Total Capital 8.15 7.62 5.00 11.48 11.77 12.77 10.00 6.00 8.00 4.00 4.00 7.89 Strong Capital Position
Slide 24: Popular Represents a Compelling Opportunity for Investors
Popular Represents a Compelling Opportunity for Investors Seeking a Growth Financial Services Company Strong Growth Fundamentals and Market Demographics Pan-American Financial Institution With Market Share Dominance & Strong Brand Recognition Diverse Revenue Sources Strong geographic diversification
Slide 25: Investor Presentation
Investor Presentation