Slide 1: Second Quarter 2021 Investor Presentation
Exhibit 99.2 Second Quarter 2021 INVESTOR PRESENTATIONExhibit 99.2 Second Quarter 2021 INVESTOR PRESENTATION
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: Q2 2021 Highlights
Q2 2021 Highlights • Net income of $218.1 million Earnings • Net interest margin: Popular, Inc. 2.91%, BPPR 2.91% • Provision for credit losses resulted in a benefit of $17.0 million • NPLs decreased $13.0 million QoQ; ratio at 2.4%, flat from prior quarter • NCO ratio at (0.02%) compared to 0.29% t
Slide 4: Business Highlights
Business Highlights • 1.9 million customers as of June 2021 (increased by 129,000 since March 2020 and 17,000 QoQ) 1 • 18% growth in active online users since BPPR March 2020 Customer Engagement • Captured 66% of Q2 2021 deposits through digital channels, compared to 56% in Q1 2020 • Issued $2.1 bil
Slide 5: Puerto Rico – Key Indicators
Puerto Rico – Key Indicators • New auto sales continue to demonstrate strong consumer demand Economy• Total nonfarm employment in June 2021 was 56,000 jobs above June 2020, but continues to be lower than the pre-pandemic levels 2 1 Quarterly Cement Sales Quarterly New Auto Sales 5,000 70% 40,000 200
Slide 6: Financial Summary (Unaudited)
Financial Summary (Unaudited) ($ in thousands) Q2 2021 Q1 2021 Variance Net interest income $ 4 87,802 $ 4 79,112 $ 8,690 Service charges on deposits 40,153 39,620 533 Other service fees 7 6,382 70,628 5,754 Mortgage banking activities 7,448 1 7,343 (9,895) Other non-interest income 30,557 26,062 4,
Slide 7: Net Interest Margin Dynamics
Net Interest Margin Dynamics 1 2 • Q2 2021 net interest margin at 2.91%; FTE net Total Loans and Deposits ($ in billions) interest margin at 3.22% • Money market and investment securities to earning assets ratio at 58% • FTE loan yield decreased 2 basis points QoQ to 6.13% • Total deposit cost for t
Slide 8: Capital
Capital • Robust capital levels; Common Equity Tier 1 of 16.6% • Leverage ratio of 7.3% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 42% of total average assets • Tangible book value per share of $63.24 compared to $61.42 in Q1 2021 • Capital a
Slide 9: Non-Performing Assets
Non-Performing Assets Non-Performing Assets ($ in millions) • NPAs decreased by $7 million QoQ • NPLs decreased by $13 million QoQ ▪ P.R. NPLs at $657 million, or 3.1% of loans, down by $9 million, driven by: ‐ Lower mortgage NPLs by $20 million ‐ Lower consumer NPLs by $5 million, mainly driven by
Slide 10: NPL Inflows
Q2 21 Q2 21 Q1 21 Q1 21 Q4 20 Q4 20 Q3 20 Q3 20 Q2 20 Q2 20 Q2 21 Q1 21 Q4 20 Q3 20 Q2 20 NPL Inflows Total NPL Inflows ($ in millions) • Total NPL inflows increased by $11 million QoQ $102 $83 $97 • P.R. inflows increased by $17 million QoQ, $83 primarily driven by a $32 million relationship, $66 o
Slide 11: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses NCOs and NCO-to-Loan Ratio ($ in millions) • NCOs decreased by $22 million QoQ to net recoveries of $1 million in Q2 2021, mostly driven by: ▪ Lower commercial NCOs by $9 million, mostly due to recoveries of $8 million related to the resolution of a non- performi
Slide 12: Allowance for Credit Losses – Q2 2021 Movement
Allowance for Credit Losses – Q2 2021 Movement ACL Movement (in millions) ACL Movement: • Moody’s May vintage continues to show a favorable economic scenario. However, revisions to historical observations by the P.R. Planning Board resulted in an increase in ACL • Improvements in borrower performanc
Slide 13: Driving Value
Driving Value • Market leader in Puerto Rico ▪ Well positioned to take advantage of economic recovery ▪ Focus on customer service supported by broad branch network ▪ Differentiated digital offering for retail and commercial customers ▪ Diversified fee income driven by unmatched product breadth and d
Slide 14: Second Quarter 2021 Appendix
Second Quarter 2021 INVESTOR PRESENTATION AppendixSecond Quarter 2021 INVESTOR PRESENTATION Appendix
Slide 15: Corporate Structure – Popular, Inc.
Corporate Structure – Popular, Inc. Summary Corporate Structure Franchise Industry Financial services Assets = $73 billion Headquarters San Juan, Puerto Rico Assets $73 billion (among top Holding Popular’s 50 BHCs in the U.S.) Banco Popular Popular Popular North Companies Insurance de Puerto Rico Se
Slide 16: Business Segments (Unaudited)
Business Segments (Una udite d) BPPR Popular U.S. ($ in millions) Financial Results Q2 2021 Q1 2021 Variance Q2 2021 Q1 2021 Variance Net interest income $ 419 $ 410 $ 9 $ 79 $ 79 $ - Non-interest income 136 135 1 5 6 (1) Gross revenues 555 545 10 84 85 (1) Provision for credit losses (benefit) (22)
Slide 17: 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 June 30, 2021 our direct exposure to P.R. municipalities was $375 million, flat QoQ. Outstanding P.R. government exposure Municipalities ($ in millions) Loans Se
Slide 18: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations PR Mortgage Originations (Non-Conforming) Auto Loans By Year and Original FICO (% of Mortgage Amount) FICO Mix of Originations (% of Approved Amount) 733 736 735 753 734 757 724 736 741 728 704 715 719 710 719 723 720 721 1% 1% 0% 2% 5% 4% 3% 4% 6% 700 700 8% 6% 7%
Slide 19: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Senior Unsecured Ratings Moody’s Ba3 Stable Outlook Fitch BBB- Stable Outlook S&P BB- Positive Outlook 2020 2017 2018 2019 2021 April April June Moody’s Moody's Fitch upgrades upgrades to Ba3 upgrades to B1 April February to BBB- from from B1 from B2 May March S&P upgrad
Slide 20: Second Quarter 2021 Investor Presentation
Second Quarter 2021 INVESTOR PRESENTATIONSecond Quarter 2021 INVESTOR PRESENTATION