Slide 1: Investor Presentation: Financial Results Q2 2014
Exhibit 99.1 ff] POPULAR. Investor Presentation FINANCIAL RESULTS Q2 2014
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and involve risks and uncertaintie
Slide 3: Reported adjusted net income of $86 million
Reported adjusted net income of $86 million 1 Earnings Strong margins: Popular, Inc. 4.68% 2 adjusted; BPPR 5.50% Credit NPLs increased by $4 million QoQ; ratio at 3.3% (excluding NPL inflows excluding consumer loans down $54 million QoQ covered loans) NCOs of 0.94% compared to 0.80% last quarter; i
Slide 4: TARP & Capital Update
TARP & Capital-Update Received approval for full TARP repayment without additional equity Financed TARP repayment with existing holding company liquidity and the proceeds from senior note offering $450 million 5 year 7% senior unsecured Hold Co. liquidity approximately $175 million post TARP; debt s
Slide 5: BPNA Restructuring Update
BPNA Restructuring-Update • California, Illinois and Central Florida transactions are on pace to close by YE 2014 Strategic focus going forward on NY metro and South Florida regions Non cash goodwill write-down in Q2 of $187 million • US operational restructuring initiative progress also on track wi
Slide 6: Financial Summary (unaudited)
Financial Summary (unaudited) See appendix for a non GAAP to GAAP reconciliation Q2 2014 Q1 2014 Non GAAP GAAP Adjusted As In thousands Adjusted Reported Variance Net interest income $354,687 $351,171 $3,516 Non Interest Income 118,050 120,238 (2,188) Total revenues before FDIC loss share impact 472
Slide 7: Capital
Capital 1 Tier 1 Common Equity capital ratio of 13.5% exceeds current CCAR 5% target by $2.0 billion We expect to remain “well-capitalized” under Basel III rules issued by the Federal Reserve Capital Ratio % Excess capital in $, billions BPOP Q2 2014 CCAR & CapPR Q1 2014 * 20.7 $3.2 19.4 $2.6 $2.0 1
Slide 8: Non Performing Assets
Non Performing Assets Overall stable led by strong credit quality in the US operations • NPAs, including covered loans, remained Non-Performing Assets ($MM) flat at $956 million, QoQ Covered NPLs decreased $8 million, reflective 2,402 2,448 2,539 2,623 2,489 of continued resolution efforts 2,245 2,3
Slide 9: NPL Inflows
NPL Inflows • Total NPL inflows down by $54 million, or 26% Total NPL Inflows ($MM) QoQ PR commercial inflows down $63 million; Q1 2014 included $52 million impact of a single credit relationship that continues current US commercial inflows down $8 million • PR mortgage NPL inflows increased by $16
Slide 10: Asset Quality
Asset Quality NCOs increased slightly by $3 million QoQ NCO ($MM) and NCO-to-Loan Ratio Q1 2014 included the effect of net recoveries in the US; NCOs continue to track favorably NCO ratio of 0.94% vs. 0.80% in Q1 2014; results impacted by reclassification of the discontinued operations Provision inc
Slide 11: PR Public Sector Exposure
PR Public Sector Exposure • Our current direct exposure to the PR government, instrumentalities and municipalities is $833 million, of which approximately $709 million is outstanding, down $235 million QoQ PR Central Government & (In millions) Loans Securities Total Public Corporations Central Gover
Slide 12: Driving Shareholder Value
Driving Shareholder Value • Robust capital with Tier 1 Common Equity of 13.5% Capital • TARP repayment and BPNA transactions move us toward a more active capital management process • Unique franchise in PR provides strong, stable revenue- Earnings generating capacity • Continued stability in Popular
Slide 13: Appendix
ff] POPULAR. Investor Presentation APPENDIX
Slide 14: Who We Are – Popular, Inc.
Who We Are – Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $36.6 bn Puerto Rico operations • $37 billion in assets (top 40 bank holding company in the U.S.) Banco Popular de Puerto Rico Popular Securities, Inc. Popu
Slide 15: Market Leadership in Puerto Rico
Market Leadership in Puerto Rico Popular’s Market Share Trend Puerto Rico Market Share by Category Market Market Share Category Position as of as of Q1 2014 Q1 2014 Total Deposits (Net of Brokered) 1 39% Total Loans 1 36% Commercial & Construction Loans 1 39% Credit Cards 1 52% Mortgage Loan Product
Slide 16: PR & US Business
PR & US Business PR US Q2 2014 Q1 2014 Variance Q2 2014 Q1 2014 Variance $ in millions (unaudited) Net Interest Income $334 $328 $6 $49 $51 ($2) Non Interest Income 38 68 (30) 18 11 7 Gross Revenues 372 396 (24) 67 62 5 Provision (non-covered) 74 54 20 (25) - (25) Provision (covered) 12 26 (14) - -
Slide 17: GAAP Reconciliation Q2 2014
GAAP Reconciliation Q2 2014 (Unaudited) US GAAP Non GAAP Tarp discount Goodwill amortization and impairment and Actual Adjusted Income Tax restructuring adjustments charges (In thousands) Net interest (expense) income $ (59,381) $ (414,068) $ - $ 354,687 Provision for loan losses – non-covered loans
Slide 18: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q2 14 Q1 14 Q4 13 Q3 13 Q2 13 Loans Held in Portfolio (HIP) $19,635 $21,612 $21,612 $21,427 $21,522 Performing HFS 93 94 109 123 180 NPL HFS 4 1 1 2 11 Total Non Covered Loans 19,732 21,707 21,722 21,552 21,713 Non-performing loans
Slide 19: De-risked Loan Portfolios
De-risked Loan Portfolios • PR has derisked its commercial loan Loan Composition (Held-in Portfolio) portfolio by reducing its exposure in asset classes with historically high loss content Puerto Rico US Total $ in millions Q4 2007 Q2 2014 Q4 2007 Q2 2014 Q4 2007 Q2 2014 Variance Commercial portfoli
Slide 20: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings • Our senior unsecured ratings have remained stable: • Moody’s: B2 Negative (Revised May 2014) • Fitch: BB- Stable Outlook (Reaffirmed December 2013) • S&P: B+ Stable Outlook • May 2014: Moody’s downgraded BPOP to B2; outlook revised to negative • February 2014: Moody's
Slide 21: Popular: Financial Results Q2 2014
ff] POPULAR. Investor Presentation FINANCIAL RESULTS Q2? 2014