Slide 1: Investor Presentation June 2012
Exhibit 99.1 Investor Presentation June 2012
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations andinvolverisksand uncertaintiesth
Slide 3: Who We Are – Popular, Inc.
Who We Are –Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $37.0bn Puerto Rico operations • $37 billion in assets (top 50 bank holding company in the U.S.) Banco Popular de Puerto Rico Popular Securities, Inc. Popula
Slide 4: P.R. Franchise Value Built Over Years
P.R. Franchise Value Built Over 118 Years • Indisputable, sustained market leadership Market Share Trend (20002011) – Total Deposits (Net of Brokered) Total Loans Source: Puerto Rico Office of the Commissioner of Financial Institutions Category Market Position as of Market Share Top Competitor Q4 20
Slide 5: Where we are and where we are heading
Where we are and where we are heading 2011/2012 P.R. economy stabilizing, (GNP P.R.Banking Market: Assets and Non-Accruing Loans forecast +1.1% for fiscal 2013) $ in billions P.R. banking assets declining Credit environment, though improving, remains challenging More regulation; heightened scrutiny
Slide 6: Loan Portfolio Composition
Loan Portfolio Composition- (Held in Portfolio- Q1 2012) Loans with an FDIC guarantee amount to 17% of all loans… ($ in millions) PR US Total % of Total Construction $175 $61 $236 1% C&I 2,953 805 3,758 15% Commercial Multi family 110 693 803 3% CRE- Owner Occupied 2,088 578 2,666 11% CRE- Non-Owner
Slide 7: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Q1 12 vs Q1 12 vs • Total Loans remainedrelatively flat Q1 12 Q4 11 Q1 11 $ in millions Q4 11 Q1 11 Loans Held to Maturity (HTM) $20,479 $20,602 -0.60% $20,677 -0.96% Loans Held for Sale 362 363 -0.28% 570 -36.49% • NPLsdecreasedfor the secondcon
Slide 8: Capital Ratios
Capital Ratios • Strong capital ratios above CCAR banks and peers (1) (4) • Favorable stress-test results in exercise similar to CCAR, with capital ratios higher than peers and CCAR banks 17.79% 16.51% 16.24 15.70 13.76 12.53% 12.98 11.18 10.65 3 8.83%9.15 10% 7.01 6%3 5%3 1 Peers include: CMA, HBAN
Slide 9: Q1 2012 Highlights
Q1 2012 Highlights • Net income for the quarter amounted to $48.4 million; our fifth consecutive profitable quarter • Continued improvement in credit quality trends in non-covered portfolio NPLs declined by $56 million NPL inflows (commercial and construction) declined by 21% Net charge-offs decreas
Slide 10: Summary & Outlook
Summary & Outlook 2012 Strategy • Further improve credit risk profile • Add low-risk assets • Continue efficiency efforts • Continue improvement at BPNA Well positioned to deliver results in 2012 • Strong revenues and improving credit trends • Robust capital position which is further improving 9
Slide 11: Appendix
Appendix
Slide 12: P.R. Economic Overview
P.R. Economic Overview • Economy is showing signs of improvement; the Commonwealth’s official economic forecast is +0.9% (fiscal 2012) and +1.1% (fiscal 2013) • In the last severalquarters,indicatorssuchasretail and auto sales,home sales,cement salesamongothers haveimproved Recent Trends GDP –Compos
Slide 13: Financial Results
Financial Results 1 $ in thousands (except per share data) Q1 2012 Q4 20111 Variance Net interest income $337,582 $344,780 ($7,198) Service fees & other oper. income 129,710 113,848 15,862 Gain on sale of investments, loans & trading profits 9,453 18,064 (8,611) Total revenues before FDIC (expense)
Slide 14: Significant Quarterly Variances
(1) Significant Quarterly Variances $13.6 million from the covered portfolio related to certain pools of mortgage loans with lower interest accretion in Q1 (extended average Net interest income ($7,198) life estimates) offset by lower interest expense on deposits and repayment of FDIC note ($6.3 mil
Slide 15: P.R. & US Business
P.R. & US Business PR US $ in millions (Unaudited) Q1 12 Q4 11 Variance Q1 12 Q4 11 Variance Net Interest Income $290 $299 ($9) $74 $73 $1 Non Interest Income 114 136 (22) 16 21 (5) Gross Revenues 404 435 (31) 90 94 (4) Provision (non-covered) 68 88 (20) 15 36 (21) Provision (covered WB) 18 56 (38)
Slide 16: Credit Quality Overview - Selected Portfolios
Credit Quality OverviewSelected - Portfolios • Total commercial and construction NPL Commercial & Construction NPL Inflows inflowsdecreasedby $37 million or 21% $ drivenby decreasesin bothPRandthe US 350.00 300.00 250.00 $77 $136 $104 $109 In PR, commercial and construction NPL inflows 200.00 $147 $
Slide 17: Allowance for Loan and Lease Losses (ALLL)
Allowance for Loan and Lease Losses (ALLL) GeneralReserve-ASC450(FAS5) + Specific Reserve-ASC310(FAS114) = TotalALLL • Generalreserve- Basedon historicallossesadjustedfor a recenttrend factor + Methodology environmental factor • Specificreserve- Attributedto loansdeemedimpaired(mostlycommercialloans
Slide 18: Coverage Ratio
Coverage Ratio The coverage ratio of 39.5% does not take into account the high percentage of individually analyzed loans and lifetime charge-offs Total NPLs $ in millions $1,682 Individually Analyzed Collectively Analyzed $849 $833 1 1 Coverage Ratio (CR) : 3% Coverage Ratio (CR) : 76% 2 2 Adjusted
Slide 19: Credit Ratings Update
Credit Ratings Update • Our senior unsecured ratings have been gradually improving since 2010: Moody’s: Ba1 Negative Outlook S&P: B+ Stable Outlook Fitch: B+ Positive Outlook • April 2012: Moody’s placing most of the PR banks under review with the possibility of downgrades, due to the state of the P