Slide 1: Investor Presentation Second Quarter 2015
Exhibit 99.1 Investor Presentation Second Quarter 2015
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation contains forward-looking statementswithin the meaningof the PrivateSecuritiesLitigationReformAct of 1995. Theseforward-looking statements are based on management’scurrent expectationsand are subject to risks and uncertainties
Slide 3: Q2 2015 Highlights
Q2 2015 Highlights • Reported adjusted net income of $90 million¹ Earnings • Strong margins: Popular, Inc. 4.54%, BPPR 4.92% • NPLs decreased by $89 million QoQ; ratio at 2.6% Credit (excluding • NPL inflows, excluding consumer loans, down by $31 million QoQ covered loans) • NCOsratio of 0.89%²compa
Slide 4: PR Public Sector Exposure
PR Public Sector Exposure Our current direct exposure to the PR government, instrumentalities, and municipalities is $729 million, down by $266 million from Q1 2015. The outstanding balance is approximately $673 million decreasing by $140 million from Q1 2015. Central Government & Public Corporation
Slide 5: Financial Summary (non-GAAP)
Financial Summary (non-GAAP)¹ ($ in thousands) Q2 2015 Q1 2015 Variance Net interest income $ 362,553 $ 343,195 $ 19,358 FDIC loss share income 12,396 4,139 8,257 Other non-interest income 135,168 109,975 25,193 Gross revenues 510,117 457,309 52,808 Provisionfor loan losses– non-coveredloans 60,468
Slide 6: FDIC Loss Share Asset
FDIC Loss Share Asset Composition of FDIC Loss Share Asset $900 ($ in millions) $798 $800 $713 $700 $636 $600 $542 $500 $410 $393 $400 $85 $79 $300 $88 $200 $308 $141 $100 $- FDIC LSA FDIC LSA FDIC LSA FDIC LSA FDIC LSA FDIC LSA Q1 15 Claims Paid Q2 15 Estimated Claims in Dispute Q1 14 Q2 14 Q3 14 Q
Slide 7: Capital Ratios (%)
Capital Ratios (%) • 2015 DFAST results show strong capital ratios in a severely adverse economic scenario • Popular’scapital metrics continued to be robust with Common Equity Tier 1 of 15.6% Popular, Inc. Capital Ratios (%) 18.7 18.1 15.7 16.1 15.6 15.6 11.8 11.6 Common Equity Tier 1 Tier 1 Risk-Ba
Slide 8: De-risked Loan Portfolios
De-risked Loan Portfolios De-risked Loan Portfolios (excluding covered loans) ($ in millions) • TheCorporation has de-risked its loan portfolios by Loan Composition (Held-in Portfolio) reducing its exposure to asset classes with historically PR US Total high loss content $ in millions Q4 2007 Q2 201
Slide 9: Non-Performing Assets
Non-Performing Assets Non-Performing Assets(includingcoveredassets)($in millions) • NPAs,including coveredloans, decreasedby $129million NPLs, including NPL HFS, down by $62 million, primarily related to a $75 million public sector credit, written down by approximately $30 million and transferred to
Slide 10: NPL Inflows
NPL Inflows Highlights Total NPL Inflows • Total NPLinflowsdecreasedby $31million QoQ,mainlydriven ($ in millions) by lower PRmortgageinflows PRmortgageNPLinflows downby$22million 257 - Q1 2015 inflows included the addition of $17 231 million of loanspreviouslyservicedbyDoral 210 183 205 -Excludingt
Slide 11: Additional Credit Metrics
Additional Credit Metrics Highlights • NCOsup $11 million QoQ(excludingwrite-downs)mainly driven by: NCO ($ in millions) and NCO-to-Loan Ratio Higher commercial NCOs by $12 million as the Q1 2015 reflected a lower than normal loss trend,offset by 200 $5 million recoveryrelated to the sale of previou
Slide 12: Driving Shareholder Value
Driving Shareholder Value Recent • US restructuring completed; continued strong loan growth Accomplishments • Doral transactions completed • Unique franchise in PR provides strong, stable revenue-generating Earnings capacity • Continued stability in Popular’s credit metrics • Robust capital with Com
Slide 13: Appendix
APPENDIX Investor Presentation Second Quarter 2015
Slide 14: Who We Are – Popular, Inc. Corporate Structure
Corporate Who Structure We Are –Popular, Inc.Popular, – Inc. Franchise Summary Corporate Structure Industry Financial services Headquarters San Juan, Puerto Rico Assets = $37 billion Assets $37 billion (among top 50 BHCs in the U.S.) Popular’s Holding Banco Popular Popular Popular North Companies In
Slide 15: Market Leadership in Puerto Rico
Market Leadership in Puerto Rico Popular’s Puerto Rico Market Share by Category Q1 2015 Market Market Category position share Total Deposits (Net of brokered) * 1 43% Total Loans * 1 41% Commercial & Construction Loans * 1 44% Credit Cards ¹ 1 53% Mortgage Loan Production ¹ 1 29% Personal Loans * 1
Slide 16: GAAP Reconciliation 2015 Q2
GAAP Reconciliation 2015 Q2 Q2 2015 * Loss on Bulk Adjustment toAdjusted Actual Sale of FDIC Results Results BPNA Doral Reversal DTA -Covered Indemnification (Non- ($ in thousands) (US GAAP)ReorganizationAcquisition OTTI BPNA OREOs Asset GAAP) Net interest income $ 362,553 $ - $ - $ - $ - $ - $ - $
Slide 17: GAAP Reconciliation Q1 2015
GAAP Reconciliation Q1 2015 Q1 2015 * Actual Adjusted Results BPNA Doral Results ($ in thousands) (US GAAP) Reorganization Acquisition (Non-GAAP) Net interest income $ 343,195 $ - $ - $ 343,195 Provision for loan lossesnon-covered – loans 29,711 - - 29,711 Provision for loan lossescovered – loans ¹
Slide 18: Business Segments (GAAP)
Business Segments (GAAP)* PR US ($ in millions) Financial Results Q2 2015 Q1 2015 Variance Q2 2015 Q1 2015 Variance Net interest income $ 316 $ 307 $ 9 $ 62 $ 52 $ 10 Non-interest income 126 103 23 6 6 - Gross revenues 442 410 32 68 58 10 Provision for loan losses – non-covered loans 60 32 28 - (2)
Slide 19: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Loans Held in Portfolio (HIP) $22,435 $21,013 $19,404 $19,359 $19,635 Performing HFS 151 152 87 158 93 NPL HFS 51 8 19 20 4 Total Non Covered Loans $ 22,637 $ 21,174 $ 19,511 $ 19,537 $ 19,732 Non-perfo
Slide 20: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B1 StableOutlook Fitch BB- Stable Outlook S&P B+ Negative 2012 2013 2014 2015 April March Moody’s placing Moodys placed most of the PR banks BPOP on review July under review with February for possible On 7/10 S&P
Slide 21: Investor Presentation Second Quarter 2015
Investor Presentation Second Quarter 2015