Slide 1: First Quarter 2011 Financial Results
First Quarter 2011 Financial Results
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: Q1 2011 Highlights
Q1 2011 Highlights 2 Net income of $10.1M or EPS of $0.01 Non-performing loans in the P.R. mortgage and commercial loan portfolios increased slightly Global events and the rise in oil prices may have a negative impact on the P.R. economy Popular returned to profitability in Q1 Westernbank acquisitio
Slide 4: Significant Quarterly Events
Significant Quarterly Events 3
Slide 5: Puerto Rico Economic Update
(CHART) 4 Puerto Rico Economic Update BPPR-Index of Real Economic Activity - Annualized Rate Employment, Unemployment and Labor Force Sources: Puerto Rico Labor Department, U.S. Labor Bureau, P.R. Government Development Bank, Consultec and Puerto Rico Commerce and Export Agency In thousands Governme
Slide 6: Financial Results
5 Financial Results 1 Unaudited 1 Unaudited
Slide 7: P.R. Business
6 P.R. Business Q1 net income of $107M excluding the extraordinary DTA charge of $103M Lower operating expenses due to a reduction in provision for unused commitments, personnel, professional fees and advertising expenses compared to Q4 2010 Provision for loan losses declined due to provision in Q4
Slide 8: Revenues Westernbank Covered Loans
Revenues Westernbank Covered Loans 7
Slide 9: U.S. Business
8 U.S. Business U.S. Business The sale of NCM loans was completed with a related provision recapture of $13.8M and a gain/recovery on sale of $2.6M Lower provision for loan losses was mainly due to the NCM sale ($120.5M additional provision in Q4 and $13.8M reduction Q1) Expenses declined in Q1 due
Slide 10: Credit Quality Overview - Q1 Non-Performing Loan Inflows
Credit Quality Overview- Q1 Non-Performing Loan Inflows- BPPR Excludes WB Covered Loans & LHFS 9 Excluding LHFS, NPLs to total loans rose .33% ($63M) to 7.91%: Mortgage NPLs increased by $57M, related to PR portfolio Commercial NPLs up by $27M; $41M from PR offset by a U.S. decline ALLL declined in
Slide 11: Credit Summary - Popular Inc Consolidated
10 Credit Summary- Popular Inc Consolidated Credit summary excludes covered assets.
Slide 12: Capital Ratios
11 Capital Ratios () 1 See the earnings press release for reconciliation of Common Stockholders Equity (GAAP) to Tier 1 Common Equity (Non-GAAP). 1 Improved Capital Ratios reflect: Reduction in DTA Balance Sheet composition Internal capital generation Q1 11 Q4 10 Q1 10 Tier 1 Capital 15.25% 14.54% 9
Slide 13: Recap & Outlook
Credit Issues The sale of NCM loans in the US business was completed Closely monitoring P.R. mortgage, construction and commercial portfolios Credit metrics improving P.R. economy BPNA continues to make significant progress The company returned to profitability in Q1, and we are now generating capit
Slide 14: Popular
ty) POPULAR