Slide 1: Investor Presentation Fourth Quarter 2021
INVESTOR PRESENTATION Fourth 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: 2021 Highlights
NPLs decreased $190 million YoY; ratio at 1.9%, from 2.5% the prior year NCO ratio at 0.07% compared to 0.66% the previous year ACL to loans of 2.38% compared to 3.05% in 2020 Credit Metrics Net income of $935 million Net interest margin: Popular, Inc. 2.88%, BPPR 2.86% Provision for credit losses r
Slide 4: Q4 2021 Highlights
NPLs decreased $85 million QoQ; ratio at 1.9%, from 2.2% the prior quarter NCO ratio at (0.11%) compared to 0.12% the previous quarter ACL to loans of 2.38% compared to 2.49% in Q3 2021 Credit Metrics Net income of $206 million Net interest margin: Popular, Inc. 2.78%, BPPR 2.73% Provision for credi
Slide 5: Business Highlights
Business Highlights Business Metrics Issued $2.1 billion or 49,700 loans ($1.4 billion in Round 1 and $678 million in Round 2) As of December 31, 2021: Outstanding loans: $65 million from Round 1 and $288 million from Round 2 Recognized $82 million during 2021 in income from program $18 million unam
Slide 6: Puerto Rico – Key Indicators
Puerto Rico – Key Indicators Economy 1 Source: United Automobile Importers Group (based on units) as of December 2021; 2 Source: Puerto Rico Economic Development Bank, as of November 2021; 3 Source: U.S. Bureau of Labor Statistics (Seasonally Adjusted) as of December 2021 ; 4 Credit and debit card s
Slide 7: Financial Summary
Financial Summary (Unaudited) ($ in thousands) Q4 2021 Q3 2021 Vv: $ Net interest income 501,283, $ 489,393 $ Service charges on deposits 41,613 41,312 Other service fees 83,793 80,445 Mortgage banking activities 17,035 8,307 interest income 22,236 39,194 Gross revenues 665,960 658,651 Provision for
Slide 8: Net Interest Margin Dynamics
Net Interest Margin Dynamics Q4 2021 net interest margin at 2.78%; FTE1 net interest margin at 3.02% Money market and investment securities to earning assets ratio at 60% FTE loan yield increased 11 basis points QoQ to 6.26%, driven by PPP income Total deposit cost flat quarter over quarter at 0.16%
Slide 9: Capital
Capital Robust capital levels; Common Equity Tier 1 of 17.5% Leverage ratio of 7.4% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 46% of total assets Tangible book value per share of $65.39 down 1% from Q3 2021 Capital actions: Redeemed outstand
Slide 10: Non-Performing Assets
Non-Performing Assets* Non-Performing Assets NPAs and NPLs decreased by $77 million and $85 million QoQ, respectively NPL inflows increased by $3 million: P.R. down $7 million while U.S. increased $10 million P.R. NPLs at $514 million, or 2.5% of loans, down by $95 million, driven by lower commercia
Slide 11: NCOs and NCO-to-Loan Ratio
NCOs and NCO-to-Loan Ratio ($ in millions) NCOs and Allowance for Credit Losses Differences due to rounding NCOs decreased by $17 million QoQ to net recoveries of $8 million, mostly driven by: Lower commercial NCOs by $16 million, mostly related to recoveries from the resolution of non-performing lo
Slide 12: Allowance for Credit Losses – Q4 2021 Movement
Allowance for Credit Losses – Q4 2021 Movement Differences due to rounding ACL Movement: Moody’s November vintage continues to show a favorable economic scenario The probability assigned to the S3 scenario was increased to reflect uncertainty tied to epidemiological and fiscal assumptions. This cont
Slide 13: Driving Value
Driving Value Capital Completed in 2021: Increased quarterly dividend to $0.45 per share $350 million Accelerated Share Repurchase program at an average price of $75.84 Redeemed $187 million 6.70% Trust Preferred Securities Announced capital actions for 2022: Increase in quarterly common stock divid
Slide 14: Appendix Fourth Quarter 2021
INVESTOR PRESENTATION Appendix Fourth Quarter 2021
Slide 15: Franchise Summary
Franchise Summary Corporate Structure Assets = $64 billion Assets = $10 billion Puerto Rico Operations United States Operations Assets = $75 billion Information as of December 31, 2021 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León under Corporate segment Transact
Slide 16: 2021 Financial Summary
2021 Financial Summary (Unaudited) (Sin thousands) YTD 2021 YTD 2020__|_ Variance Net interest income $ — 1,957,590| $ 1,856,613 $ 100,977 Service charges on deposits 162,698 147,823 14,875 Other service fees 311,248, 257,892 53,356 Mortgage banking activities 50,133 10401, 39,732 Other non-interest
Slide 17: Business Segments
Differences due to rounding Business Segments
Slide 18: 2021 Business Segments
Differences due to rounding 2021 Business Segments
Slide 19: Municipalities – 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 20: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 21: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Senior Unsecured Ratings Moody’s Ba3 Stable Outlook Fitch BBB- Stable 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 22: Fourth Quarter 2021
INVESTOR PRESENTATION Fourth Quarter 2021