Slide 1: Investor Presentation Fourth Quarter 2014
Exhibit 99.1 Investor Presentation Fourth Quarter 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 uncertainties
Slide 3: 2014 Full Year Highlights
2014 Full Year Highlights • Reported net loss of $309 million for 2014; adjusted net income of $305 million¹ Earnings • Strong margins: Popular, Inc. 4.67% adjusted ² • NPLs increased by $27 million YoY; ratio at 3.2% Credit (excluding • NPL inflows, excluding consumer loans, up by $22 million YoY c
Slide 4: Market Leadership in Puerto Rico
Market Leadership in Puerto Rico Popular’s Puerto Rico Market Share Trend Total Deposits (net of brokered) Total Loans 42% 40% 39% 38% 35% 39% 40% 37% 36% 37% 34% 35% 33% 24% 23% 22% 2007 2008 2009 2010 2011 2012 2013 Q3 2014 Popular’s Puerto Rico Market Share by Category Q3 2014 Market Market Categ
Slide 5: Q4 2014 Highlights
Q4 2014 Highlights • Reportednet incomeof $53million; adjustednet incomeof $81million1 Earnings 2 • Strongmargins:Popular,Inc.4.70%adjusted;BPPR 5.15% Credit • NPL ratio unchanged at 3.2% (excluding • NPL inflows up $83 million QoQ covered loans) 3 • NCOsof 1.04%3 comparedto 0.83%lastquarter; increa
Slide 6: Financial Summary (non-GAAP)
Financial Summary (non-GAAP)¹ ($ in thousands) Q4 14 Q3 14 Variance Net interest income $ 345,452 $ 347,084 $ (1,632) FDIC loss share expense (18,693) (19,910) 1,217 Other non-interest income 126,904 129,194 (2,290) Gross revenues 453,663 456,368 (2,705) Provision for loan losses – non-covered loans
Slide 7: BPNA Restructuring-Operational Reorganization
BPNA Restructuring-Operational Reorganization Lowerriskprofileandsmallerbalancesheetto yieldadditionalexcesscapital • California transaction closed in Q4 2014 for $8.1 million net gain Operational Reorganization • Strategic focus going forward on NY metro and South Florida regions • US operational r
Slide 8: Capital
Capital • Tier 1 Common Equity capital ratio of 15.9%; exceeds YE 2013 ratio before TARP repayment • We expect to remain “well-capitalized”under Basel III rules issued by the Federal Reserve Popular, Inc. Capital Ratios¹ % Q4 2013 (Basel I) Q4 2014 (Basel I) Q4 2014 (Basel III) 20.4 19.6 19.2 19.5 1
Slide 9: Non-Performing Assets
Non-Performing Assets Non-Performing Assets ($MM) • NPAs, including covered loans, down by $16 million QoQ OREOs decreased by $21 million, primarily from the sale of commercial properties from the covered OREO portfolio. 2,623 2,402 2,448 2,539 2,489 2,245 2,314 2,277 2,365 2,311 2,254 2,178 2,120 2
Slide 10: NPL Inflows
NPL Inflows • Total NPL inflows increased by $83 million QoQ Total NPL Inflows ($MM) PR commercial inflows up $89 million; includes 333 the impact of a single $75 million public sector credit 279 257 231 PR mortgage NPL inflows declined by $6 million, 210 or 7% 158 158 183 202 136 126 136 119 US tot
Slide 11: Asset Quality
Asset Quality • NCOs up $10 million QoQ (excluding write-downs), in part due NCO ($MM) and NCO-to-Loan Ratio to higher recoveries in Q3 2014 NCO ratio of 1.04% vs. 0.83% in Q3 2014 • Provision decreased by $17 million QoQ Provision to NCO of 99% • ALLL essentially flat at $520 million, decreasing by
Slide 12: PR Public Sector Exposure
PR Public Sector Exposure Our current direct exposure to the PR government, instrumentalities, and municipalities is $1.0 billion, of which approximately $811 million is outstanding, up $84 million from Q3 2014. PR Central Government & Public Corporations Outstanding PR government exposure ($ in mil
Slide 13: Driving Shareholder Value
Driving Shareholder Value • Robust capital with Tier 1 Common Equity of 15.9% Capital • TARP repayment and BPNA transactions move us toward a more active capital management process • Unique franchise in PR provides strong, stable revenue-generating capacity Earnings • Continued stability in Popular’
Slide 14: Appendix
APPENDIX Investor Presentation Fourth Quarter 2014
Slide 15: Who We Are – Popular, Inc.
Who We Are –Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $33.1 bn Puerto Rico operations • $33 billion in assets (bank holding company in the U.S.) among top 40 Banco Popular Popular Popular North Popular de Puerto
Slide 16: GAAP Reconciliation Full Year 2014
GAAP Reconciliation Full Year 2014 2014 * Actual Indemnification Adjusted Results TARP discount BPNA Income Tax Other Asset Results (In thousands) (US GAAP) amortization Reorganization Adjustments Adjustments Adjustment (Non-GAAP) Net interest income (expense) $ 945,072 $ (414,068) $ (39,254) $ - $
Slide 17: GAAP Reconciliation Q4 2014
GAAP Reconciliation Q4 2014 Q4 2014 * Actual Adjusted Results BPNA Other Results (In thousands) (US GAAP)ReorganizationAdjustments(Non-GAAP) Net interest income (expense) $ 326,861 $ (18,591) $ - $ 345,452 Provisionfor loan losses– non-coveredloans 51,637 878 - 50,759 Reversalof provisionfor loan lo
Slide 18: GAAP Reconciliation Q3 2014
GAAP Reconciliation Q3 2014 Q3 2014 * Actual Indemnification Adjusted Results BPNAIncome Tax Asset Results (In thousands) (US GAAP)ReorganizationAdjustments Adjustment (Non-GAAP) Net interest income (expense) $ 326,421 $ (20,663) $ - $ - $ 347,084 Provision for loan losses– non-coveredloans 68,166 1
Slide 19: Business Segments (GAAP)
Business Segments (GAAP)* PR US ($ in millions) Financial Results Q4 14 Q3 14 Variance Q4 14 Q3 14 Variance Net interest income $ 311 $ 316 $ (5) $ 31 $ 26 $ 5 Non-interest income 85 96 (11) 18 17 1 Gross revenues 396 412 (16) 49 43 6 Provision for loan losses – non-covered loans 52 62 (10) (1) 6 (7
Slide 20: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Loans Held in Portfolio (HIP) $19,404 $19,359 $19,635 $21,612 $21,612 Performing HFS 87 158 93 94 109 NPL HFS 19 20 4 1 1 Total Non Covered Loans 19,511 19,537 19,732 21,707 21,722 Non-performing loans
Slide 21: De-risked Loan Portfolios
De-risked Loan Portfolios • The Corporation has derisked its loan portfolios by Loan Composition (Held-in Portfolio) reducing its exposure in asset classes with historically high loss content Puerto Rico US Total $ in millions Q4 2007 Q4 2014 Q4 2007 Q4 2014 Q4 2007 Q4 2014 Variance • In the BPPR co
Slide 22: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings • Our senior unsecured ratings have remained stable: Moody’s: B2 Negative Fitch: BB- Stable Outlook S&P: B+ Stable Outlook • May 2014: Moody’s downgraded BPOP to B2; outlook negative • February 2014: Moody’s placed BPOP on review for downgrade • October 2013: Moody’s rev
Slide 23: Investor Presentation
Investor Presentation Fourth Quarter 2014