Popular, Inc. · NASDAQ:BPOP
Popular — Q3 2010 Earnings Presentation
11 slides from Popular's earnings presentation, Oct 22, 2010
Slide 1: Third Quarter 2010 Financial Results
Third Quarter 2010 Financial Results October 22, 2010
Slide 2: Forward Looking Statements
1 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 Ref
Slide 3: Q3 Highlights
Q3 Highlights EVERTEC: Completed sale of 51% of information technology subsidiary, EVERTEC, on September 30 Concludes capital plan Sale resulted in net gain after tax of approximately $531M and received approximately $528.6M in cash after costs and taxes Popular has raised this year a total of $1.6B
Slide 4: Puerto Rico Economic Update
3 Puerto Rico Economic Update BPPR-Index of Real Economic Activity - Annualized Rate Retail Sales - Annual Percentage Change January 2006 - August 2010 (000s) Employment, Unemployment and Labor Force Sources: Puerto Rico Labor Department, Government Development Bank, Consultec and Puerto Rico Commer
Slide 5: Financial Results
4 Financial Results 1 Unaudited 2 Not on a tax-equivalent basis
Slide 6: P.R. Business
5 P.R. Business Provision rose $60 million vs. Q2 2010 Higher losses in commercial and construction loans - by $25M and $23M, respectively - mostly due to reduced values of real estate collateral Coverage ratio increased from 4.69% in Q2 2010 to 4.91% in Q3 2010 During Q3, the Westernbank asset acqu
Slide 7: U.S. Business
6 U.S. Business Portfolios continue to show improved delinquency and charge-off trends NPLs have decreased by $117M since December 31, 2009 Lower provision by $47M vs. Q2 2010 Allowance to loans ratio at 7.07% in Q3 2010 vs. 6.98% at December 31, 2009 Restructuring efforts to streamline and refocus
Slide 8: Loan Portfolio Overview
7 Loan Portfolio Overview NPLs have increased 3% this year, vs. 76% in same 9-month period in 2009 Increase in mortgage NPLs partially offset by decrease in commercial and construction NPLs Mortgage NCO ratio in P.R. continues to be under 1% NCO ratio 3.98% YTD at Sept. 30, 2010 vs. 3.91% at Sept. 3
Slide 9: Capital Management Update
8 Capital Management Update As of September 30, 2010 (%) Total Capital Tier 1 Capital (%) Tier 1 Common (%) Tier 1 Leverage (%) Sale of majority stake in EVERTEC concludes capital plan; resulting in strong capital ratios () Notes: (1) Ratio suggested by regulators (2) Includes capital conservation b
Slide 10: Popular, Inc. - Recap & Next Steps
EVERTEC Strong capital levels to move business forward Manage relationship with EVERTEC as 49% owner and largest client FDIC-ASSISTED TRANSACTION Secure long-term relationships in Westernbank portfolio Achieve expected synergies CREDIT MANAGEMENT Develop balance between credit quality management and
Slide 11: Popular
i] POPULAR