Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2018 Earnings Presentation
18 slides from Popular's earnings presentation, Apr 24, 2018
Slide 1: Investor Presentation First Quarter 2018
Exhibit 99.1 Investor Presentation First Quarter 2018
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular, Inc.’s (the “Corporation,” “Popular,” “us,” “our,”) business
Slide 3: Q1 2018 Highlights
Q1 2018 Highlights • Net income of $91.3 million Earnings • Strong margins: Popular, Inc. 3.89%, BPPR 4.14% Credit (excluding • NPLs increased by $56 million QoQ; ratio at 2.5% covered • NCO ratio decreased to 0.90% from 1.61% in previous quarter loans) • Robust capital; Common Equity Tier 1 Capital
Slide 4: Financial Summary (GAAP)
Financial Summary (GAAP) (Unaudited) 1 ($ in thousands) Q1 2018 Q4 2017 Variance Net interest income $ 393,047 $ 387,216 $ 5,831 Service charges on deposits 36,455 33,827 2,628 Other service fees 60,602 48,443 12,159 Mortgage banking activities 12,068 (1,853) 13,921 Adjustments (expense) to indemnit
Slide 5: Capital
Capital • Popular’s capital levels remain robust with Common Equity Tier 1 of 16.8% • Tangible book value per share of $42.61 compared to $43.02 in Q4 2017 Popular, Inc. (%) 19.2 19.8 16.3 16.8 16.3 16.8 10.0 10.0 Common Equity Tier 1 Tier 1 Risk-Based Capital Total Risk-Based Capital Tier 1 Leverag
Slide 6: P.R. Public Sector Exposure
P.R. Public Sector Exposure The Corporation has no direct exposure to debt of the P.R. central government or its public corporations. Our direct exposure to P.R. municipalities is $481 million, down by $2 million from the prior quarter. Municipalities Outstanding P.R. government exposure ($ in milli
Slide 7: Non-Performing Assets
Non-Performing Assets Highlights Non-Performing Assets (including covered assets) ($ in millions) • NPAs,including covered loans, increased by 2,402 2,489 2,365 $36million QoQ 2,002 • NPLs,excluding covered loans,increasedby $56million QoQ 1,293 932 933 P.R. NPLs at $574 million, or 3.2% of 852 843
Slide 8: NPL Inflows
NPL Inflows Total NPL Inflows Highlights ($ in millions) • Total NPLinflows up by $98 million QoQ P.R.mortgage inflows up by $106 million QoQ, prompted by the end of the payment moratorium P.R.commercialdown by $4 million QoQ U.S.inflows down by $5 million QoQ Q1 15Q2 15Q3 15Q4 15Q1 16Q2 16Q3 16Q4 1
Slide 9: Additional Credit Metrics
Additional Credit Metrics Highlights NCOs and NCO-to-Loan Ratio • Net charge-offs(NCOs)decreasedby $41 million ($ in millions) Q1 2018 includes $8 million related to the U.S. taxi medallion portfolio comparedto $32 million in Q42017 8 NCOratio at 0.90%vs.1.61%in Q42017 • Allowancefor loan and leasel
Slide 10: Driving Shareholder Value
Driving Shareholder Value • Unique franchise in P.R. continues to generate strong revenue and Earnings significant deposit growth • Continued loan growth in the U.S. • Robust capital with Common Equity Tier 1 Capital of 16.8% Capital • Tangible book value per share of $42.61 Additional Value • Inves
Slide 11: Appendix
Investor Presentation First Quarter 2018 Appendix
Slide 12: Corporate Structure – Popular, Inc.
Corporate Structure P – opular, Inc. Franchise Summary Corporate Structure Industry Financial services Assets = $46 billion Headquarters San Juan, Puerto Rico Assets $46 billion (among top Holding 50 BHCs in the U.S.) BancoPopular Popular Popular’s Insurance Popular North Companies de Puerto Rico Se
Slide 13: GAAP Reconciliation
GAAP Reconciliation (Unaudited) ($ in thousands) Q4 2017 Income tax Impact on Pre-tax effect net loss U.S. GAAP Net loss $(102,154) Non-GAAP Adjustments: Impact of the TaxCutand JobsAct 1 - 168,358 168,358 Adjusted net income (Non-GAAP) $ 66,204 1 On December 22, 2017, the Tax Cut and Jobs Act ("the
Slide 14: De-Risked Loan Portfolios
De-Risked Loan Portfolios (Excluding coveredloans)($ in millions) Loan Composition (Held-in Portfolio) Highlights P.R. U.S. Total $ in millions Q4 2007 Q1 2018 Q4 2007 Q1 2018 Q4 2007 Q1 2018 Variance • The Corporation has de-riskedits loan portfolios Commercial $7,774 $7,123 $4,515 $4,346 $12,288 $
Slide 15: Business Segments (GAAP)
Business Segments (GAAP) (Unaudited) BPPR Popular U.S. ($ in millions) Financial Results Q1 2018 Q4 2017 Variance Q1 2018 Q4 2017 Variance Net interest income $ 332 $ 329 $ 3 $ 75 $ 73 $ 2 Non-interest income 97 74 23 4 5 (1) Gross revenues 429 403 26 79 78 1 Provision for loan losses non-covered –
Slide 16: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Loans Held in Portfolio (HIP) $24,088 $24,293 $23,173 $22,918 $22,735 Performing HFS $78 $132 $69 $70 $85 NPL HFS $0 $0 $0 $0 $0 Total Non Covered Loans $ 24,166 $ 24,425 $ 23,242 $ 22,988 $ 22,820 Non-
Slide 17: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B2 Stable Outlook Fitch BB- Negative Outlook S&P BB- Negative Outlook 2014 2015 2016 2017 March Moody’s placed February BPOP on review July Moody’s October February for possible On 7/10 S&P April changes Fitch and
Slide 18: Investor Presentation First Quarter 2018
Investor Presentation First Quarter 2018