Slide 1: Financial Results Third Quarter 2011
Exhibit 99.1 Financial Results Third Quarter 2011
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: Q3 2011 Highlights
Q3 2011 Highlights • Net income of $27.5 million; or $0.03 per share Results include a gain on sale of securities of $8.1 million, a net benefit on the sale of PR loans of $5 million ($17.4 million gain on sale less $12.7 million provision related to reclassification of LHFS). • Top line revenue con
Slide 4: Puerto Rico Economic Update
Puerto Rico Economic Update Retail Sales • Fiscal situation under control 3,000,000 12-Month Moving Average, in $ billions • Housing incentives extended to December 2,950,000 2012 2,900,000 Banco Popular origination volume YTD as th of September 30 was $1 billion (up 20% 2,850,000 vs 2010) 2,800,000
Slide 5: Financial Results
Financial Results $ in thousands (except per share data) 1 1 Q3 2011 Q2 2011 Variance Net Interest Income $369,311 $374,542 ($5,231) Service fees & Other Oper. Income 106,696 106,942 (246) Gain on Sale of Investments, Loans & Trading Profits 21,055 (21,452) 42,507 FDIC Loss-Share (expense) income (5
Slide 6: Q3 vs Q2 2011 Adjusted Variances (in millions)
Q3 vs Q2 2011 Adjusted Variances (in millions) Variance in pre-tax income Explanation Q3 Income before tax $ 33 Higher provision BPPR: Provision BPPR (60) Less: Provision related to PR loan sale 13 Net benefit on sale of loans (5) $ (47) Lower provision: Gain on sale of securites (8) Covered loans 2
Slide 7: P.R. Business
P.R. Business $ in millions (Unaudited) Q3 11 Q2 11 Variance • Q3 net income includes a $13 million net Net Interest Income $321 $325 ($4) benefit on securities and loan sales Non Interest Income 118 114 4 • Provision expense for non-covered loans Gross Revenues 439 439 0 increased by $60 million ($
Slide 8: U.S. Business
U.S. Business Q3 11 Q2 11 Variance • Net income of $9 million in Q3 driven by $ in millions (Unaudited) lower provision Net Interest Income $73 $75 ($2) Non Interest Income 18 19 (1) NPLs for the quarter down by $20 million or 5%; driven by construction Gross Revenues 91 94 (3) loans Provision for l
Slide 9: Loan Portfolio Detail
Loan Portfolio Detail Loan PortfolioQ3 - 2011 • Our loan book is well diversified $ in 000s PR US Total % of Total Loans Held to Maturity: • There are no significant concentrations Construction C&I $ 163,915 2,800,724 $ 194,146 1,050,648 $ 358,061 3,851,372 1.4% 15.3% • Top 20 non-covered relationsh
Slide 10: Credit Quality Overview - Excludes Covered Loans & LHFS
Credit Quality Overview-Excludes Covered Loans & LHFS • Inflow of NPLs in the PR commercial portfolio reflect Non-Performing Loans- Popular, Inc. less reliance on actual payment history and more 2,500,000 In 000’s reliance on documented ability to continue to pay 2,000,000 according to the original
Slide 11: Capital Ratios
Capital Ratios • Strong capital position relative to current and Basel III guidelines as well as peers % 18 15.82 15.22 17.09 16.50 16.32 15.03 15 12.02 11.53 11.56 12 Q3 Q2 Q3 2011 2011 2010 8.67 8.38 8.41 9 Q3 Q2 Q3 2011 2011 2010 Q3 Q2 Q3 2011 2011 2010 2 10% 6 2 6% 2 Q3 Q2 Q3 2011 2011 2010 5% 3
Slide 12: Thoughts On Our Stock Valuation
Thoughts On Our Stock Valuation • On September 30, 2011 BPOP closed at $1.50, representing a Price / Tangible Book Value market cap of $1.5 billion • YTD, the price has declined 47% vs. 19% for the NASDAQ Bank Index and 28% for the KBW Bank Index • We believe that the market is underestimating the v
Slide 13: Popular Is Well Positioned for the Future
Popular Is Well Positioned for the Future Ability to pursue organic growth opportunities and asset acquisitions Capital Diversified balance sheet and strong capital Other sources of potential value such as our 49% EVERTEC investment and the U.S. DTA Best and most valuable deposit franchise in Puerto
Slide 14: Appendix
Appendix
Slide 15: Where We Are Coming From…
Where We Are Coming From… $60,000 $ 7,000 Assets Market Cap Tangible Capital 48,624 47,404 6,000 50,000 44,411 38,883 38,723 38,736 39,013 5,000 40,000 38,179 34,736 4,000 30,000 3,000 20,000 2,000 10,000 1,000 - - 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 2005/2006 2007/2008 2009/2010 2
Slide 16: Credit Summary - Popular, Inc. Consolidated
CreditSummary P - opular,Inc.Consolidated Credit summary excludes covered assets Q3 11 vs Q3 11 Q2 11 YTD 11 $ in millions Q2 11 Loans Held to Maturity (HTM) $20,674 $20,658 0.08% $20,674 Loans Held for Sale 369 509 -27.50% 369 Covered Loans 4,512 4,616 -2.25% 4,512 Total Loans $25,555 $25,783 -0.88
Slide 17: Construction Portfolio
Construction Portfolio Total HTM non-covered • Much smaller exposure in construction loans PR Construction Loans ($ in MM) • Construction balances have decreased $1,583 million or 82% sinceth4Q 2007 $1,435$1,400 $1,317 $1,199 • At 9-30-2011, non-covered HTM construction loans $1,082$1,039 had declin
Slide 18: Mortgage Portfolio
Mortgage Portfolio PR Total HTM non-covered • Exposure concentrated in PR Mortgage Loans ($ in B) Purchase in PR • Low average loan size ($129M) at attractive yields and good quality • Adequate loan-to-value (78%) • At 9/30/2011, non-covered US non- $4.5 $4.6 $4.0 conventional mortgage exposure had
Slide 19: Commercial Portfolio
Commercial Portfolio • Diversified loan portfolio across two Loan Portfolio - Q3 2011 % of regions $ in 000s PR US Total Total • PR 61% • US 39% C&I $ 2,800,724 $ 1,050,648 $ 3,851,372 36.4% CRE- Owner Occupied 2,285,456 894,633 3,180,089 30.0% CRE- Non-Owner Occupied 1,327,309 2,230,149 3,557,458 3
Slide 20: Financial Results Third Quarter 2011
Financial Results Third Quarter 2011