Slide 1: Investor Presentation Fourth Quarter 2022
INVESTOR PRESENTATION Fourth Quarter 2022 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: 2022 Annual Highlights
NPLs decreased $108 million; NPL ratio at 1.4% vs. 1.9% NCO ratio at 0.20% compared to 0.07% ACL-to-NPL ratio at 164% compared to 127% Credit Metrics vs. 2021 Net income of $1.1 billion, compared to $935 million in 2021 Net interest margin: Popular 3.11%, BPPR 3.05%, Popular U.S. 3.68% Earnings Capi
Slide 4: Q4 2022 Highlights
NPLs decreased $14 million; NPL ratio flat at 1.4% NCO ratio at 0.39% compared to 0.24% ACL-to-NPL ratio at 164% vs. 155% Credit Metrics vs. Prior Quarter Net income of $257 million; excluding the partial reversal of the deferred tax asset valuation allowance of $68 million, net income was $189 mill
Slide 5: Business Metrics
Business Metrics Popular: Loan growth for the quarter was $555 million ($259 million in BPPR and $296 million in Popular U.S.) Total deposit cost increased 51 basis points QoQ to 0.89% BPPR: Commercial loans increased $118 million from Q3 2022 Mortgage originations were 29% lower than Q4 2021 due to
Slide 6: Financial Summary (Unaudited) Q4 2022
6 Financial Summary (Unaudited) ($ in thousands) Q4 2022 Q3 2022 Net interest income 559,566 $ 579,619 $ (20,053) $ Service charges on deposits 34,682 40,006 (5,324) Other service fees 89,022 86,402 2,620 Mortgage banking activities 6,562 9,448 (2,886) Other non-interest income 28,199 290,638 (262,4
Slide 7: Net Interest Margin Dynamics
Money Market and Investment Securities ($ in billions)² ¹ FTE net interest margin represents a non-GAAP financial measure. See the Corporation’s earnings press release, Form 10-Q and Form 10-K filed with the U.S. Securities and Exchange Commission for the applicable periods for a GAAP to non-GAAP re
Slide 8: Deposit Mix and Historical Betas
Total deposit cumulative beta of 21% at period end1, as high beta P.R. public sector deposits now account for 26% of total deposits Retail and commercial deposit betas have historically been low, but they now represent a lower proportion of total deposits Public sector deposit betas are 100% with a
Slide 9: Investment Portfolio
Investment Portfolio Conservative investment portfolio, with the majority invested in short to intermediate U.S. Treasuries, which are tax exempt for P.R. corporations The rapid rise in interest rates during 2022 increased unrealized losses; expect to fully recover these unrealized losses as the bon
Slide 10: Capital Ratios
Robust regulatory capital levels Common Equity Tier 1 of 16.4% Leverage ratio of 8.2% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 39% of total assets Q4-2022 capital actions: Completed an ASR of $231 million; 3.2 million total shares repurchas
Slide 11: Non-Performing Assets
Non-Performing Assets NPAs and NPLs decreased by $18 million and $14 million QoQ, respectively NPL inflows decreased by $3 million QoQ, mostly due to lower U.S. commercial inflows by $6 million, partially offset by higher P.R. mortgage inflows by $5 million P.R. NPLs at $402 million, or 1.8% of loan
Slide 12: NCOs and NCO-to-Loan Ratio
NCOs and NCO-to-Loan Ratio ($ in millions) Differences due to rounding NCOs amounted to $31 million, increasing by $13 million QoQ BPPR’s NCOs at $20 million, increasing by $2 million QoQ, mostly driven by higher consumer NCOs by $6 million, mainly due to the auto loans segment, offset by lower mort
Slide 13: Allowance for Credit Losses – Q4 2022 Movement
Differences due to rounding Allowance for Credit Losses – Q4 2022 Movement ACL Movement: Moody’s November 2022 forecast reflects the expected slowdown in the economy with lower 2023 GDP growth for both P.R. and U.S. $8.7 million in charge-offs recorded for a specific commercial healthcare NPL Change
Slide 14: 2022 Capital Actions and Franchise
2022 Capital Actions Acquired key customer channels from Evertec, amended commercial contracts and subsequently sold the entire ownership stake in Evertec Increased quarterly common stock dividend to $0.55 per share from $0.45 Completed $631 million in Accelerated Share Repurchase Agreements (ASR);
Slide 15: Fourth Quarter 2022 Appendix
INVESTOR PRESENTATION Fourth Quarter Appendix 2022
Slide 16: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $56 billion Assets = $12 billion Puerto Rico Operations United States Operations Assets = $68 billion Information as of December 31, 2022 ¹ Doing business as Popular Selected equity investments Banco BHD León under Corporate segment Dominican Republic b
Slide 17: 2022 Financial Summary (Unaudited)
Differences due to rounding 2022 Financial Summary (Unaudited) ($ in thousands) YTD 2022 YTD 2021 Net interest income 2,167,359 $ 1,957,590 $ 209,769 $ Service charges on deposits 157,210 162,698 (5,488) Other service fees 334,009 311,248 22,761 Mortgage banking activities 42,450 50,133 (7,683) Othe
Slide 18: Business Segments Q4 2022 vs. Q3 2022
Differences due to rounding Q4 2022 vs. Q3 2022 Business Segments
Slide 19: Business Segments 2022 vs. 2021
Differences due to rounding 2022 vs. 2021 Business Segments
Slide 20: 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 21: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 22: Popular Inc. Credit Ratings
Senior Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 May Fitch revised outlook to Positive 2019 April Moody's upgrades to B1 from B2 S&P revised outlook to Positive May Fitch upgrades to BB from BB- 2020 March S&P lowers outlook to Stable 2021 Mar
Slide 23: Fourth Quarter 2022
INVESTOR PRESENTATION Fourth Quarter 2022