Popular, Inc. · NASDAQ:BPOP
Popular — Cohen Brothers & Co. Investor Presentation, June 2 & 3, 2005
24 slides from Popular's conference presentation, Jun 3, 2005
Slide 1: Investor Presentation Cohen Brothers & Co. June 2 & 3, 2005
Investor Presentation Cohen Brothers & Co. June 2 & 3, 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: Popular at a Glance
POPULAR AT A GLANCE Founded in 1893 Diversified financial services and transactions processing company. Operations in Puerto Rico, the Caribbean, the mainland United States and Central America. Largest Puerto Rican financial institution and 4th largest bank in Latin America. Largest Hispanic bank in
Slide 6: 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 7: Puerto Rico Highlights
PUERTO RICO HIGHLIGHTS 2004 (Projected) Puerto Rico is subject to the U.S. Judicial system and courts Nationality and currency are U.S. All Puerto Rican public companies trade in U.S. markets and are subject to U.S. regulatory institutions Country Risk = U.S. Risk Source: Government Development Bank
Slide 8: Banco Popular de Puerto Rico
BANCO POPULAR DE PUERTO RICO Leading financial institution in the island Largest banking network with 192 local branches 23.7% market share in loans (12/31/04) 32.2% market share in deposits (12/31/04)* $23.3 billion in assets as of 3/31/05 $14.0 billion in deposits as of 3/31/05 4,932 employees as
Slide 9: Non-Banking Subsidiaries as of 3/31/05
Non-Banking Subsidiaries as of 3/31/05 PUERTO RICO FORTRESS $21.8 MM Annual Revenues for 2004 2 Offices & Presence at some BPPR branches 163 Employees $1.4 Billion Annual Originations in 2004 $1,085 Million in Total Assets 30 Offices 447 Employees $7.4 Billion in Deals during 2004 $4.2 Billion Asset
Slide 10: United States Mainland Operations
UNITED STATES MAINLAND OPERATIONS Popular operates 136 banking branches in the mainland - NY, CA, TX, NJ, FL and IL; 183 Popular Financial Holding (Equity One) offices in 28 states; 114 Popular Cash Express stores in 6 states and 15 leasing offices in 9 states. Our presence is concentrated in the fa
Slide 11: Popular Targets the Faster Growing Markets in the U.S.
Popular Targets the Faster Growing Markets in the U.S. 1990 2000 2004 2007 East 22.3 35.3 37 40.4 Non-Hispanic Hispanic California 0.58 0.42 Non-Hispanic Hispanic Chicagoland Area 0.8 0.2 Non-Hispanic Hispanic Texas 0.58 0.42 Growth in Hispanic Population** (in millions) Non-Hispanic Hispanic NY Met
Slide 12: Popular North America as of 3/31/05
POPULAR NORTH AMERICA as of 3/31/05 Non-Banking Operations Banking Operations California $2,932MM Total Assets 45 Branches 452 Employees New Jersey $845MM Total Assets 14 Branches 97 Employees Florida $1,827MM Total Assets 18 Branches 337 Employees Texas $944MM Total Assets 7 Branches 106 Employees
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: Solid Financial Performance
* Taxable equivalent Solid Financial Performance Net Interest Margin* Return on Equity Popular Peers 2001 14.8 12.99 2002 16.3 15.86 2003 19.3 15.71 2004 17.6 16.2 1Q 2005 21.62 16.29 Popular Peers 2001 4.33 3.98 2002 4.19 4.17 2003 4.28 3.79 2004 3.95 3.61 1Q2005 3.58 3.55 Popular Peers
Slide 18: Increasing Non-Interest Income
Increasing Non-Interest Income Total Non-Interest Income for 2004: $593.5* million 5 Year CAGR 1999 - 2004: 9.78% ($ in millions) *Excludes gain on sale of investment securities
Slide 19: 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 20: Asset Quality
Asset Quality (1) In 2003, 2004 & 3/31/05, residential mortgages represented 56%, 64% and 63% 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 first quarter of 2005, gains of $8.3 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: Funding Composition
Funding Composition Deposit Composition* Total Funding Composition* *Figures as of 3/31/05 Total=$45.2 Billion Total=$21.7 Billion
Slide 23: Capital Position
All figures as of 03/31/05 Leverage Tier 1 Total Capital 8.12 7.46 5.00 11.49 11.56 12.77 10.00 6.00 8.00 4.00 4.00 7.82 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
Popular — Cohen Brothers & Co. Investor Presentation, June 2 & 3, 2005 on 6ix