Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2021 Earnings Presentation
20 slides from Popular's earnings presentation, Apr 28, 2021
Slide 1: Investor Presentation First Quarter 2021
INVESTOR PRESENTATION First Quarter 2021 Exhibit 99.2
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. These statements are not guarantees of future performance, are based on the current expectations of Popular, I
Slide 3: Q1 2021 Highlights
NPLs decreased $40 million QoQ; ratio at 2.4% NCO ratio decreased to 0.29% from 0.58% the previous quarter ACL to loans held-in-portfolio of 2.75% compared to 3.05% in Q4 2020 Credit Metrics Net income of $263 million Net interest margin: Popular, Inc. 3.07%, BPPR 3.10% Provision for credit losses r
Slide 4: Business Highlights
Business Highlights BPPR Customer Engagement BPPR Business Metrics Q1 2021 vs Q1 2020 Issued $1.9 billion or 42,000 loans in both PPP rounds ($1.4 billion in Round 1 and $478 million in Round 2) $650 million from Round 1 had been forgiven as of March 31, 2021 PPP loans issued by BPPR represented 62%
Slide 5: Puerto Rico – Key Indicators
Puerto Rico – Key Indicators Economy 1 Source: U.S. Bureau of Labor Statistics (Seasonally Adjusted) as of March 2021; 2 Source: United Automobile Importers Group (based on units); 3Source: Puerto Rico Economic Development Bank; 4Credit and debit card sales pertain to BPPR customers only Total nonfa
Slide 6: Financial Summary
Financial Summary (Unaudited) ($ in thousands) Qi.2021 Q4 2020 Variance Net interest income $ 479,112 $ 471,616 $7,496 Service charges on deposits 39,620 39,152 468 Other senvice fees 70,628 71,156 (528) Mortgage banking activities 17,343 9,730 7,613 Other non-interest income 26,062 24,809 1,253 Gro
Slide 7: Net Interest Margin Dynamics
Net Interest Margin Dynamics Q1 2020 FTE1 net interest margin at 3.39% Money market and investment securities to earning assets ratio at 54% FTE loan yield increased 15 basis points QoQ to 6.15% Total deposit cost QoQ decreased 11 basis points in the U.S. and 1 basis point in P.R.; consolidated tota
Slide 8: Capital
Capital Robust capital levels; Common Equity Tier 1 of 17.2% Leverage ratio impacted by the high proportion of zero-risk weighted assets on the balance sheet Tangible book value per share of $61.42 compared to $63.07 in Q4 2020 Announced capital actions for 2021: Increase quarterly dividend to $0.45
Slide 9: Non-Performing Assets
Non-Performing Assets ($ in millions) Non-Performing Assets NPAs decreased by $50 million QoQ NPLs decreased by $40 million QoQ P.R. NPLs at $666 million, or 3.1% of loans, down by $34 million, driven by: Lower mortgage NPLs by $24 million, due to the resumption of loan payments after the end of the
Slide 10: NPL Inflows
NPL Inflows Total NPL Inflows ($ in millions) Mortgage NPL Inflows ($ in millions) Commercial and Construction NPL Inflows ($ in millions) Differences due to rounding Total NPL inflows decreased by $30 million QoQ P.R. inflows decreased by $36 million QoQ, primarily related to lower mortgage NPL inf
Slide 11: NCOs and NCO-to-Loan Ratio
NCOs and NCO-to-Loan Ratio ($ in millions) NCOs and Allowance for Credit Losses Differences due to rounding NCOs decreased by $21 million QoQ, mostly driven by: Lower commercial NCOs by $17 million Lower consumer NCOs by $13 million, mostly driven by recoveries of $8 million related to a sale of cha
Slide 12: Allowance for Credit Losses – Q1 2021 Movement
Allowance for Credit Losses – Q1 2021 Movement Differences due to rounding ACL Movement: Improved economic scenario was the main driver of lower ACL Portfolio changes includes changes in volume mix and credit quality Additional qualitative reserves reflect potential risks to the scenarios, mainly re
Slide 13: Driving Value
Driving Value Capital Announced capital actions for 2021: Increase quarterly dividend to $0.45 per share Repurchase up to $350 million in common stock Franchise Additional Value Investments in Evertec and Banco BHD León Leading market position in Puerto Rico Well positioned to take advantage of econ
Slide 14: Appendix First Quarter 2021
INVESTOR PRESENTATION Appendix First Quarter 2021
Slide 15: Franchise Summary
Franchise Summary Corporate Structure Assets = $56 billion Assets = $11 billion Puerto Rico Operations United States Operations Assets = $67 billion Information as of December 31, 2020 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León under Corporate segment Transact
Slide 16: Business Segments
Differences due to rounding Business Segments
Slide 17: P.R. Public Sector Exposure
Municipalities Obligations of municipalities are backed by real and personal property taxes, municipal excise taxes, and/or a percentage of the sales and use tax Indirect exposure includes loans or securities that are payable by non-governmental entities, but which carry a government guarantee to co
Slide 18: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 19: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Senior Unsecured Ratings Moody’s Ba3 Stable Outlook Fitch BB Positive Outlook S&P BB- Positive Outlook February Moody’s changes outlook to Positive from Negative April S&P upgrades to BB- from B+ revised outlook to Positive 2017 October Fitch and S&P change outlook to Ne
Slide 20: First Quarter 2021
INVESTOR PRESENTATION First Quarter 2021