Popular, Inc. · NASDAQ:BPOP
Popular — Investor Presentation (November 2008)
14 slides from Popular's investor presentation, Nov 18, 2008
Slide 1: B. Riley Investor Presentation November 18, 2008
B. Riley Investor Presentation November 18, 2008
Slide 2: Forward Looking Statements
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 Refor
Slide 3: Third Quarter Results
Third Quarter Results 1 On a taxable equivalent basis. Ratios for periods prior to September 30, 2008 were estimated to conform to the September 30, 2008 presentation. $ in millions (except per share data) 2008 2008 2008 2008 2007 2007 2007 2007 Q3 08 Q3 08 Q2 08 Q1 08 Q4 07 Q3 07 Q2 07 Q1 07 Net In
Slide 4: Q3 Significant Events
Q3 Significant Events Losses from discontinued operations: Losses of $457MM, net of tax, related to the discontinued reporting segment of PFH. The losses included writedowns of assets, losses on the sales of loans and restructuring charges recorded in connection with asset sales completed in Q4. Los
Slide 5: P.R. Business
P.R. Business The challenging P.R. economy is pressuring profitability at the segment. The ongoing recession and deteriorating quality trends in the commercial and construction loan portfolios, have led to an increase in credit costs. Management expects weakness in economy to continue into 2009. A 2
Slide 6: U.S. Business
U.S. Business U.S. business has been significantly impacted by liquidity-driven asset sales and the economy: Sales of PFH assets to boost cash and exit subprime assets Rising credit costs at U.S. bank, reflecting weaker U.S. economy Changes in market conditions have led to a number of restructuring
Slide 7: Processing Strategy-EVERTEC
Processing Strategy-EVERTEC Leveraging existing product offering and processing infrastructure to service other financial institutions and enter new markets Continuous improvement of quality levels Enhance competitiveness of ATH network Invest significantly in new technology developments Main initia
Slide 8: Briefing - P.R. Economy
Briefing - P.R. Economy Bottom line: weak economy expected for 2009 Indicators to watch: Oil prices Housing sector U.S. economy (i.e., P.R. tourism) Foreign, U.S. exports Economic policies of incoming Fortuno administration Fiscal budget 2009 Government still facing fiscal constraints Positive trend
Slide 9: Subprime Exposure
Subprime Exposure Sale of PFH loan and servicing assets in Q4 practically eliminated exposure to U.S. 'legacy' subprime assets. (In millions $) 1 2006 Data does not include E-Loan and Popular FS Remaining subprime portfolios are those originated thru banking subs. Loss experience in P.R. (BPPR) is v
Slide 10: Liquidity
Liquidity Banking subsidiary liquidity is strong: Short-term unsecured borrowings as of Q3'08 amounted to $388 million vs. $764 million in Q2'08, and $1,364 billion in Q3'07. There were $6.3 billion in strong sources of liquidity available: Fed Discount Window: $3.0 billion Unpledged securities: $2.
Slide 11: Deferred Tax Assets & Goodwill
Deferred Tax Assets & Goodwill Remaining net DTAs at Popular as of 9-30 amounted to $663MM, $323MM related to U.S. business. Valuation allowance of $360MM was recognized in Q3. Goodwill on the books as of 9-30 was $608MM. This was related primarily to the U.S. banking business. Impairment annual tes
Slide 12: Capital Management
Capital Management Capital has remained at adequate levels throughout market turmoil. Quarter-end capital ratios continue to exceed "well-capitalized" levels, although they are not at the levels we have historically maintained. The Corporation has applied for $950 million in preferred capital throug
Slide 13: Closing Thoughts
Closing Thoughts We have resolved the liquidity concerns at the BHCs. Exited the subprime exposure at PFH. Capital, while at "well capitalized" levels, has declined from the levels we have historically maintained. The U.S business will undergo structural changes to improve its core profitability. Th
Slide 14: As of September 30, 2008
As of September 30, 2008