Popular, Inc. · NASDAQ:BPOP
Popular — Q2 2010 Earnings Presentation
14 slides from Popular's earnings presentation, Jul 23, 2010
Slide 1: Second Quarter 2010 Financial Results
Second Quarter 2010 Financial Results July 23, 2010
Slide 2: Forward Looking Statements
1 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 R
Slide 3: Q2 Highlights
Q2 Highlights Completed capital raise of $1.15B in April at $3 per share Acquired $9.1B in assets from Westernbank in an FDIC-assisted transaction on April 30. The assets had a fair value of an estimated $8.2B (includes $3.3B related to the FDIC loss share indemnification asset) as of April 30 Signe
Slide 4: Popular, Inc. - Business Overview
Banco Popular de Puerto Rico U.S. & Processing Businesses Largest financial institution on island $32B of assets (76% of total) and $164 million of pre-tax, pre-provision earnings No. 1 market share in deposits, loans, credit cards and mortgage originations1 Recently completed accretive FDIC-assiste
Slide 5: Puerto Rico Economic Update
4 Puerto Rico Economic Update BPPR-Index of Real Economic Activity - Annualized Rate Retail Sales Annual Percentage Change January 2006 - May 2010 (000s) Employment, Unemployment and Labor Force Source: Puerto Rico Labor Department, Consultec and Puerto Rico Commerce and Export Agency Labor Force Un
Slide 6: Financial Results
0 0 Financial Results 1 Not on a tax-equivalent basis 2Unaudited $ in thousands (except per share data) 2009 Q2 2010 2 Q1 2010 Full Year Net Interest Income 278,976 $ 268,917 $ 1,101,253 $ Service Fees & Other Oper. Income 174,580 170,230 672,275 FV adjustment FDIC Equity Appreciation 24,394 Accreti
Slide 7: P.R. Business
6 P.R. Business Provisioning is still at elevated levels, but off peak levels Consumer portfolio showing improved delinquency trends However, the credit scenario is expected to remain difficult on the island for the rest of 2010 due to persistent high unemployment and a housing sector under pressure
Slide 8: Westernbank Deal Description and Balance Sheet Acquired
Deal Description Balance Sheet Acquired Acquired $9.1B of assets and $2.4B in deposits FDIC loss-sharing agreement shields Popular from 80% of losses on virtually entire loan portfolio Most of the deposits assumed have been retained; as of June 30, 2010 we have $2.28B in deposits, down from the $2.3
Slide 9: U.S. Business
8 8 U.S. Business U.S. business results impacted by high loss provisioning Running-off portfolios in general showing improved delinquency trends Construction portfolio has been managed down and currently amounts to $523million We have completed a number of restructuring efforts to refocus the busine
Slide 10: Loan Portfolio Overview
9 Loan Portfolio Overview ($ millions) Our portfolios have been declining due to weak loan demand, but the WB loan acquisition provided a substantial amount of low-risk assets The increase in NPLs excluding Westernbank amounted to $16 million, compared to Q1 2010. Total Loans Trend NPLs & NCOs Trend
Slide 11: Credit Summary
10 10 Credit Summary *Excludes Loans Held for Sale
Slide 12: Capital Management Update
11 Capital Management Update As of June 30, 2010 (%) Total Capital Actual Pro Forma for EVERTEC Total Capital 13.86 16.14 Tier 1 Capital (%) Actual Pro Forma for EVERTEC Tier 1 12.56 14.85 Tier 1 Common (%) Actual Pro Forma for EVERTEC Tier 1 9.22 11.52 Tier 1 Leverage (%) Actual Pro Forma for EVERT
Slide 13: Recap & Next Steps
12 12 Recap & Next Steps Popular has completed its capital and liquidity plan The acquisition of the WB loans and deposits, in addition to providing a substantial amount of low-risk earning assets, will give us time to ride out the recession in P.R. and enter into a period of normalized loan growth
Slide 14: Popular
i] POPULAR