Popular, Inc. · NASDAQ:BPOP
Popular — Q3 2017 Earnings Presentation
20 slides from Popular's earnings presentation, Oct 31, 2017
Slide 1: Investor Presentation Third Quarter 2017
Exhibit 99.1 Investor Presentation Third Quarter 2017
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary This “Popular,” expectations expressed allowance on the similar included Form (www.sec.gov). the words presentation 10-Q Corporation’s expressions, in“anticipate,” in, for “us,” Note our for and, or loan the Annual The implied “our”) Regarding contains by quarter losses, are Corporation t
Slide 3: Impact of Hurricanes Irma and Maria: Stabilization Status in Puerto Rico
Impact Stabilization Commercial main provides *Source: airports ofPuerto Status.PR. Hurricanes Banks in arethe Rico operating availability Financial Information and IrmaVirgin and•Assistance 236 and Maria—Puerto Islands as of distribution of 314 10/27/2017 governments • bank PREPA Rico of branches g
Slide 4: Impact of Hurricanes Irma and Maria: Popular's Operations Snapshot
Impactprincipal banking month campaign regions of of services Hurricanes and the Caribbean contributed and Snapshot: interest Irma4to *As and Branches payment other Maria—BPPR of 10/27/2017. efforts ATMs deferral to 82% support for Our 3 42% consumer, Operations* recovery On Premise mortgage • Co-sp
Slide 5: Q3 2017 Highlights
Q3 2017 loan from losses 1.01% Highlights • in Strong previous margins: Earnings quarter Popular, Credit • Robust (excluding Inc. 3.96%, capital; covered BPPR Common loans) 4.28% Equity Capital • NPLs Tier• increased Income 1 Capitalbefore by ratio $39tax ofmillion 16.6% of $0.7•QoQ; Tangible millio
Slide 6: Financial Summary (GAAP)
Financial fees53,48159,168(5,687) loan costs119,636118,815821 expenses317,088306,83510,253 losses– Summary non -covered (GAAP) Professional Mortgage loans157,65949,965107,694 (Unaudited) Income banking fees70,77272,934(2,162) before activities5,23910,741(5,502) ($income in thousands)Q3 Provision tax
Slide 7: Hurricanes Irma and Maria Financial Impact
Hurricanes sponsorship Total operating Irma andexpenses9,502 promotions and Maria –expenses203 Financial Total pre-tax Impact Total hurricane business (In thousands) expenses$79,389 promotion1,326 Q3 2017 6 OREO *Provision Includes expenses2,685 $3.5 for loan million losses Other in $69,887 provisio
Slide 8: Popular's Capital Levels Remain Robust
Capital •Equity Common Popular’s Tier capital 1 Tier 1levels Risk-Based remain Capital robust with TotalCommon Risk-Based Equity Capital TierTier 1 of 116.6% Leverage • Tangible Capitalbook Q2 2017 valueQ3 per2017 shareNote: of $44.79 Capital • Strong ratios for 2017theDFAST currentresults quarterPo
Slide 9: P.R. Public Sector Exposure
P.R.backed million). are non-governmental debt Public ($Our inby Sector millions)LoansSecuritiesTotal direct real Exposure and entities, exposure personal but The towhich property P.R. Corporation municipalities carry taxes, Municipalities$433$49$482 a government has municipal noisdirect $482guarant
Slide 10: Non-Performing Assets Highlights
Non-Performing by loans, millions) 17 771 Construction $31 Q3 4.7% up 17 million, by 2,489 NPLs 598$8 Other 630 million 2,402 driven OREO Assets 602 NPL/Loans 2,365 by 586 NPL QoQ, Highlights higher 558 2,002 HFS mainly (HIP) 576 mortgage NPAs/Total 6.9% 547 •driven 0.0% NPAs, 6.4% 500 NPLs 9by 3.3%
Slide 11: NPL Inflows Highlights
NPL94 increased 16Q2 101 Inflows DoralInflows 16Q3 Inflows 95by1516Q4 $3 Highlights 17 10million 16 ($16Q1 23 in millions) 9QoQ •17Q2 10 Total 12Commercial, 17Q3 9NPL 17 9 695 617 inflows 692U.S. 994 Q3 Construction 90 up Inflows 1486 by Q497 $13 14 P.R. 85million Q1 and 87 Inflows 15 79 Legacy Q2 Q
Slide 12: Additional Credit Metrics Highlights
Additional $105 portfolio 87% 015 Q4 500.83% Q1in 30 million 016 Q2 -5 3Q2 0Q3 ALLL-to-loans Credit 2017 83 14 QoQ 16 1456 Q1Provision Q3 Q4 Metrics ALLL, 57 P.R. 16 14 53ALLL Q4 Q1 40 ALLL-to-NCO Highlights ratio 16 15 5015 Q1 increased Q2 36 at Q2 17 46 2.65% 1515 Q2 •42 Q3 Net Q3by 46 17 vs. 15 a
Slide 13: Embracing Puerto Rico
EMBRACING Popular directed Rico. www.embracingpuertorico.com/ and to rebuilding Popular PUERTOCommunity the RICO most vulnerable Join Bankus Foundation. in communities helping 12 rebuild Popular in Puerto thewill Island. drive RicoFor donations by 37 making years, from a Fundación charitable custome
Slide 14: Third Quarter 2017 Appendix
Investor Presentation Third Quarter 2017 Appendix
Slide 15: Who We Are: Corporate Structure Summary
Corporate Deposits 2017 America, investments commercial International, ¹ Doing $34 Inc. Who loans EVERTEC billion business LLC (Including Wevehicle million Are Banking asStructure and Equity Popular business for Banco branches theSubsidaries –Community quarter processes BHD Popular, 227 León ended i
Slide 16: De-Risked Loan Portfolio Composition
De-Risked P.R. SME1 increased Commercial$7,774$7,170$4,515$4,057$12,288$11,227($1,061) Leases814755--814755(59) ($mm)(%)($mm)(%)Distribution (1,143)-93%34% allocation commercial lending ofLoan Differences netischarge-offs portfolio Portfolios down CRE Corp89210%2,43934%1,547173%5% by duereductions 5
Slide 17: Financial Results by Segment: BPPR and BPNA
Business(including income88102(14)55- Operating HighlightsQ3 Quality assets2.26%2.27%(0.01)%0.42%0.36%0.06% equivalentSegments expenses255246944431 162017Q2 covered (GAAP) Gross 2017VarianceQ3 assets)Q3 revenues409422(13)77752 (Una udite Income 2017Q2 d) 2017Q2 (loss) BPPRBPNA 2017VarianceQ3 Allowan
Slide 18: Consolidated Credit Summary
Consolidated NPL Legacy$3$3$3$3$3 Commercial$4$11$2$8$2 HIP0.92%1.01%0.63%1.00%0.63% (ALL)$614$509$517$510$526 related HFS$0$0$0$0$0 to the assets Creditsales Mortgage$352$319$331$330$346 Summary Total Differences Construction($0)($2)($0)$0$1 Non (Excluding ALL Covered Provision to due loans to Loan
Slide 19: Popular, Inc. Credit Ratings
Popular, for while outlook October downgrade rating to changes Inc. the maintaining Credit general May Fitch Ratings Moody’s rating and a methodology S&P model, downgraded Our outlook senior negative negative tounsecured BPOP change economic to outlook outlook B2; ratings upgraded outlook February s
Slide 20: Third Quarter 2017
Investor Presentation Third Quarter 2017