Slide 1: Financial Results Fourth Quarter 2013
Exhibit 99.1 Financial Results Fourth Quarter 2013
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: 2013 Full Year Highlights
2013 Full Year Highlights • Reported annual net income of $599.3 million Earnings • Adjusted net income of $256.2 million* • $1.1 billion in NPAs sold in 2013 Credit • Continued improvement across key metrics, reaching new lows in the cycle and returning to pre-crisis levels NPAs/Total Assets declin
Slide 4: Market Leadership in Puerto Rico
Market Leadership in Puerto Rico Popular’s Market Share Trend Puerto Rico Market Share by Category Market Position Market Share Category as of Q3 2013 as of Q3 2013 Total Deposits (Net of Brokered) 1 39% Total Loans 1 35% Commercial & Construction Loans 1 38% Credit Cards 1 51% Mortgage Loan Product
Slide 5: Q4 2013 Highlights
Q4 2013 Highlights • Reported net income of $163 million Earnings • Adjusted net income of $74.6 million* • Strong margins: Popular, Inc. 4.74%, BPPR 5.59% • NPAs declined by $21.7 million QoQ improvement was driven by commercial, legacy and construction Credit NPLs, in part offset by higher mortgag
Slide 6: TARP & Capital
TARP & Capital • Submitted an application to repay TARP in full; subject to regulatory approval • Robust capital (Tier1 Common Equity ratio of 15.0%), $2.3 billion in excess of 5% CCAR target Minimum Pro-forma Well 12/31/2013 12/31/2013 Capitalized Excl. TARP Ratio Common Tier 1 Capital 5.0% 15.0% 1
Slide 7: Financial Summary (unaudited)
Financial Summary (unaudited) Q4 2013 Q3 2013 See appendix for Non-GAAP to GAAP reconciliation Non GAAP Non GAAP Adjusted In thousands Adjusted Adjusted Variance Net interest income $376,342 $354,206 $22,136 Non Interest Income 135,996 130,958 5,038 Total revenues before FDIC loss share impact 512,3
Slide 8: Capital
Capital • Tier 1 Common Equity capital ratio of 15.0% exceeds current CCAR 5% target by $2.3 billion • We expect to remain “well-capitalized” under Basel III rules issued by the Federal Reserve Capital Ratios % Excess Capital ($ in billions) *Averages for 30 bank holding Companies with $50 billion o
Slide 9: 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 Puerto Rico US Total asset classes with historically high loss $ in millions Q4 2007 Q4 2013 Q4 2007 Q4 2013 Q4 2007 Q4 2013 Variance content Commercial $7,774 $
Slide 10: Steady Improvements in Non Performing Assets
Steady Improvements in Non Performing Assets Non-Performing Assets ($MM) • Non-performing assets declined by $21.7 million, $2,539 $2,623 or 2.3%, QoQ and $1.1 billion, or 54%, YoY $2,402 $2,448 $2,489 • Steady improvements following NPA bulk sales $2,245 $2,314 $2,277 $2,084 $2,254 $2,365 $2,311 $2
Slide 11: NPL Inflows Continued Trending Down
NPL Inflows Continued Trending Down Total NPL Inflows ($MM) • Total NPL inflows decreased by $21 million, or 13% QoQ, and $492 million or 42% YoY; down 85% from peak levels in Q2 2009 $397 • Commercial, construction and legacy NPL inflows $273 $333 reached new record low, decreasing by $22 $271 $279
Slide 12: Continued Progress in Asset Quality
Continued Progress in Asset Quality • NCOs for Q4 2013 are down by $23 million or 39% QoQ NCO ($MM) and NCO-to-HIP Loan Ratio Recoveries up by $17 million driven by: – $9 million recovery related to the sale of previously 5.16% charged-off PR credit cards and personal loans 4.66% – Higher commercial
Slide 13: PR Public Sector Exposure
PR Public Sector Exposure • Our current direct exposure to the PR government, instrumentalities and municipalities is $1.2 billion, of which approximately $950 million is outstanding • Of the amount outstanding, $789 million consists of loans and $161 million are securities PR • Loans to the Governm
Slide 14: Driving Shareholder Value
Driving Shareholder Value • Robust capital with excess Tier 1 Common Equity of $2.3 billion and Capital significantly improved asset quality move us closer to TARP exit in the most shareholder-friendly fashion • Application for TARP repayment was submitted • Unique franchise in PR provides strong, s
Slide 15: Appendix
APPENDIX
Slide 16: Who We Are – Popular, Inc.
Who We Are – Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $35.8 bn Puerto Rico operations • $36 billion in assets (top 50 bank holding company in the U.S.) Banco Popular de Puerto Rico Popular Securities, Inc. Popu
Slide 17: GAAP Reconciliation Q4 2013
GAAP Reconciliation Q4 2013 Q4 2013 US GAAP Non GAAP EVERTEC's Actual Adjusted In thousands, except per share amount SPO Net interest income $376,342 $376,342 Non interest income 228,354 92,358 $135,996 Total revenues before FDIC loss-share impact 604,696 92,358 512,338 FDIC loss-share income (expen
Slide 18: GAAP Reconciliation Q3 2013
GAAP Reconciliation Q3 2013 Q3 2013 US GAAP Non GAAP EVERTEC's Actual Adjusted In thousands, except per share amount SPO Net interest income $354,206 $354,206 Non interest income 306,825 175,867 $130,958 Total revenues before FDIC loss-share impact 661,031 175,867 485,164 FDIC loss-share income (exp
Slide 19: GAAP Reconciliation FY 2013
GAAP Reconciliation FY 2013 [1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDICloss sharing agreements. [2] Net (loss) gain on sale of loansfor the first quarter includes $8.8 millionof negative valuation adjustments on loans held for s
Slide 20: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q4 13 Q3 13 Q2 13 Q1 13 Q4 12 Loans Held in Portfolio (HIP) $21,612 $21,427 $21,522 $21,634 $20,984 Performing HFS 109 123 180 183 258 NPL HFS 1 2 11 18 96 Total Non Covered Loans 21,722 21,552 21,713 21,835 21,338 Non-performing lo
Slide 21: PR & US Business
PR & US Business PR US $ in millions (unaudited) Q4 13 Q3 13 Variance Q4 13 Q3 13 Variance Net Interest Income $331 $310 $21 $71 $73 ($2) Non Interest Income 72 91 (19) 16 17 (1) Gross Revenues 403 401 2 87 90 (3) Provision (non-covered) 63 51 12 (15) 5 (20) Provision (covered) 9 17 (8) - - - Provis
Slide 22: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings • Our senior unsecured ratings have been gradually improving since 2010: • Moody’s: B1 Negative Outlook (Revised October 2013) • Fitch: BB- Stable Outlook (Reaffirmed December 2013) • S&P: B+ Stable Outlook (Revised December 2011) • October 2013: Moody’s revised outlook
Slide 23: Financial Results Fourth Quarter 2013
Financial Results Fourth Quarter 2013