Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2025 Earnings Presentation
28 slides from Popular's earnings presentation, Apr 23, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025
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, including without limitation those regarding Popular’s business, financial condition, results of operations an
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights Financial Highlights Quarter Highlights ($ in millions, except per share information) Income Statement Q1 2025 Q4 2024 Change Q1 2024 Highlights: Net Income $ 178 $ 178 $ - $ 103 • Net interest income increased $15 million compared to the previous Net Interest Margin (NIM) 3.40% 3
Slide 4: Business Highlights
Business Highlights BPPR Popular U.S. ($ in millions) Q1 2025 Q4 2024 Change Q1 2024 ($ in millions) Q1 2025 Q4 2024 Change Q1 2024 Loans Held in Portfolio $ 26,093 $ 26,147 $ (54) $ 24,602 Loans Held in Portfolio $ 11,129 $ 10,929 $ 200 $ 10,484 P.R. Public Deposits 19,622 19,463 159 18,020 Total D
Slide 5: Financial Summary
Financial Summary Quarterly Results (unaudited) ($ in thousands, except EPS) Q1 2025 Q4 2024 Variance Net interest income $ 605,597 $ 590,759 $ 14,838 Provision for credit losses 64,081 66,102 (2,021) Net interest income after provision for credit losses $ 541,516 $ 524,657 $ 16,859 Service charges
Slide 6: Net Interest Margin Dynamics
Net Interest Margin Dynamics Quarter Highlights: Earning Assets (ending balances, $ in billions)1 • Total earning assets increased $1.1 billion to $70.8 billion: $69.2 $69.7 $70.8 $67.4 $68.0 ‐ Money market and investment securities increased 70.0 0 0.1 4 $944 million; represent 47% of earning asset
Slide 7: Capital
Capital Quarter Highlights: Popular, Inc. • Common Equity Tier 1 Ratio of 16.11% increased 8 bps Q1 2025 Q4 2024 • TCE Ratio1 of 6.78% vs. 6.62% in Q4 2024 • Tangible book value per share increased $3.86 to $72.02 0.2 0.1 8 • Return on average tangible common equity (ROTCE) of 11.36% 0.1 6 0.1 4 16.
Slide 8: Non-Performing Assets
Non-Performing Assets Quarter Highlights: Non-Performing Assets • Non-Performing Assets (NPAs) decreased $42 million ($ in millions) • Non-Performing Loans (NPLs) decreased $37 million 600 0.04 $504 • NPL inflows decreased $16 million: 500 $472 $444 $438 $435 0.035 $412 $424 $408 ‐ BPPR decreased $1
Slide 9: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses Quarter Highlights: Allowance for Credit Losses ($ in millions) • NCO Ratio decreased 21 bps to 0.53% • NCOs decreased $18 million to $49 million Reserve Reserve Balance Build Balance Build Balance ACL/Loan • BPPR NCOs decreased $15 million to $47 million: Portfo
Slide 10: Allowance for Credit Losses – Q1 2025
Allowance for Credit Losses – Q1 2025 ACL Movement: ACL Movement • Moody’s baseline forecast assumes a moderation in ($ in millions) economic activity for the remainder of 2025 and 2026, and no recession • Increase in the weight assigned to the S3 (pessimistic) scenario due uncertainty in the econom
Slide 11: Driving Value
Driving Value Market leader in Puerto Rico • Substantial capital and liquidity with diversified deposit base • Well-positioned to take advantage of market opportunities • Focused on customer service supported by broad branch network • Differentiated omnichannel experience Franchise • Diversified fee
Slide 12: Guidance
Guidance 2025 Guidance (Market Dependent) FY 2025 Guidance Q1 2025 Commentary for Q1 2025 Original guidance for FY 2025 driven by repricing of Net Interest Income 7%-9% for the year Unchanged investments at higher rates, loan originations and lower deposit costs Original guidance for FY 2025 of $5 m
Slide 13: Footnotes
Footnotes Slide 3: 1- Fully taxable equivalent (“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 reconcil
Slide 14: Appendix
Investor Presentation First Quarter 2025 Appendix
Slide 15: Corporate Structure
Corporate Structure Franchise Summary Corporate Structure Industry Financial Services Headquarters San Juan, Puerto Rico Assets = $74 billion Assets $74 billion (among top 50 BHCs in the U.S.) Popular Holding Co. Banco Popular Popular’s North (Including Popular de Securities Insurance America, Equit
Slide 16: Q1 2025 vs. Q4 2024
Q1 2025 vs. Q4 2024 Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) Q1 2025 Q4 2024 Variance Q1 2025 Q4 2024 Variance Net interest income $ 522 $ 507 $ 15 $ 93 $ 92 $ 1 Provision for credit losses 54 66 (12) 11 (1) 12 Net interest income after provision for credit losses 468 441 27 8
Slide 17: Deposit Composition & Cost Trends
Deposit Composition & Cost Trends Highlights: • Deposits at $65.8 billion in Q1 2025, with P.R. public deposits representing 30% of total deposits • Total deposit costs, excluding P.R public deposits, of 1.17% demonstrate stability of core deposits, low cost and low betas • Total cost of deposits at
Slide 18: Deposit Beta
Deposit Beta • BPPR's retail and commercial accounts are low beta products and will react more slowly to changes in short-term interest rates • High beta P.R. public deposits represent 30% of the total deposits • P.R. public deposits are linked to market rates but respond with a lag to changes in sp
Slide 19: Investment Portfolio
Investment Portfolio Quarter Highlights: $ in millions Q1 2025 Variance to Q4 2024 • Conservative investment portfolio, with the majority Maturity / invested in short to intermediate U.S. Treasuries, Amortized % of Book Gain / Amortized Gain / Description Cost Portfolio Value (Loss) Yield WAL1 Cost
Slide 20: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Highlights: Non-Owner Occupied CRE • Non-Owner Occupied CRE (CRE NOO) mainly in retail, ($ in millions) $5,363 $5,541 hotels and office space $5,057 $5,005 $5,185 5,000 $2,117 $2,227 • Office exposure limited to 1.9% of total loan portfolio and $2,061 $2,025 $2,037 2
Slide 21: Multifamily Loan Portfolio
Multifamily Loan Portfolio Highlights: Multifamily Loans • 87% of the portfolio concentrated in Popular U.S. ($ in millions) $2,385 $2,385 $2,406 $2,400 $2,375 • Strong credit risk profile with low levels of delinquency, 2,500 NCOs and classified loans: $2,081 $2,080 $2,100 $2,092 $2,067 1.4% 2,000
Slide 22: Auto Loan Portfolio
Auto Loan Portfolio Highlights: Delinquency Avg. 2011-2019 3/31/2025 ($in millions) • Improvements in credit quality of originations 6.17% 3.57% • Auto balances have steadily increased since the pandemic 4500 0.06 $3,707 $3,773 $3,819 $3,821 $3,820 • Delinquency and NCOs at levels below the pre-pand
Slide 23: Auto Lease Portfolio
Auto Lease Portfolio Highlights: Delinquency Avg. 2011-2019 3/31/2025 ($in millions) • Auto lease balances have grown steadily since the 2.06% 1.71% 2500 0.06 pandemic $1,925 $1,950 • Delinquency at levels below the pre-pandemic benchmark 2000 $1,765 $1,828 $1,887 0.05 $1,698 $1,732 in Q1 2025, refl
Slide 24: Credit Card Portfolio
Credit Card Portfolio Highlights: Delinquency ($in millions) Avg. 2011-2019 3/31/2025 • Improvements in credit quality of originations 3.74% 4.56% • Balances continue to increase due to higher originations and increased usage post pandemic 1400 0.06 $1,187 $1,218 $1,192 $1,124 $1,136 $1,142 $1,163 0
Slide 25: P.R. Personal Loan Portfolio
P.R. Personal Loan Portfolio Highlights: Delinquency Avg. 2011-2019 3/31/2025 ($ in millions) • Improvements in credit quality of originations 3.61% 2.77% • Portfolio balances have been increasing since the 200 0 $1,763 $1,776 $1,746 $1,745 $1,754 $1,754 $1,756 0.06 $1,686 pandemic, but at a slower
Slide 26: P.R. Public Sector Exposure
P.R. Public Sector Exposure The Corporation does not own any loans issued by the P.R. central government or its public corporations. As of March 31, 2025, our direct exposure to P.R. municipalities increased $26 million to $362 million. Municipalities Outstanding P.R. Government Exposure Obligations
Slide 27: Popular's Credit Ratings
Popular’s Credit Ratings SeniorSenior Unsecured Ratings Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 2019 2020 2021 2022 April April Moody’s June Moody's April September upgrades to Fitch upgrades upgrades to B1 S&P upgrades to Moody’s upgrades M
Slide 28: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025