Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2022 Earnings Presentation
19 slides from Popular's earnings presentation, Apr 26, 2022
Slide 1: Investor Presentation First Quarter 2022
INVESTOR PRESENTATION First 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: Q1 2022 Highlights
NPLs decreased $28 million QoQ; ratio at 1.8% vs. 1.9% in Q4 2021 NCO ratio at 0.05% compared to (0.11%) the previous quarter ACL to loans of 2.29% compared to 2.38% in Q4 2021 Credit Metrics Net income of $212 million Net interest margin: Popular, Inc. 2.75%, BPPR 2.67% Earnings Signed an agreement
Slide 4: Business Metrics
Business Metrics Issued $2.1 billion or 49,700 loans As of March 31, 2022: Outstanding loans: $173 million Recognized $10.6 million in income during Q1 2022; $8.1 million unamortized fee income remaining BPPR: Commercial loans, excluding PPP, increased $302 million or 4% in Q1 2022 The auto and leas
Slide 5: Puerto Rico – Key Indicators
Economy 1 Source: United Automobile Importers Group (based on units) as of March 2022; 2 Source: Puerto Rico Economic Development Bank, as of February 2022; 3 Source: U.S. Bureau of Labor Statistics (Seasonally Adjusted) as of March 2022; 4 Credit and debit card sales pertain to BPPR customers only
Slide 6: Financial Summary
Financial Summary @)Poputar. Inaudited) (Sin thousands) Qi 2022 $ Q4 2021 Net interest income 494,312 $ $01,283 | $ (6,971) Service charges on deposits 40,713 41,613 (900) Other service fees 77,134 83,793 (6,659) Mortgage banking activities 12,865 17,035 (4,170) Other 23,980 22,236 1,744 Gross reven
Slide 7: Net Interest Margin Dynamics
¹ FTE stands for fully taxable-equivalent basis. Represents a non-GAAP financial measure. See the Corporation’s earnings press release, Form 10Q and Form 10K filed with the Securities and Exchange Commission for the applicable periods, for a GAAP to non-GAAP reconciliation 2 Balances are at end of p
Slide 8: Capital
Robust capital levels; Common Equity Tier 1 of 16.3% Leverage ratio of 7.0% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 43% of total assets 2022 capital actions: Entered into ASR of $400 million, as part of the previously announced 2022 capita
Slide 9: Non-Performing Assets
Non-Performing Assets* NPAs and NPLs decreased by $22 million and $28 million QoQ, respectively NPL inflows remained flat QoQ: P.R. up by $5 million, while U.S. decreased by $5 million P.R. NPLs at $487 million, or 2.3% of loans, down by $27 million, mostly driven by lower mortgage NPLs U.S. NPLs at
Slide 10: NCOs and Allowance for Credit Losses
NCOs and NCO-to-Loan Ratio ($ in millions) Differences due to rounding NCOs at $4 million NCO ratio at 0.05% vs. (0.11%) in Q4 2021 ACL decreased by $18 million QoQ, mainly driven by reductions in qualitative reserves in the BPPR segment, due to substantial improvement in employment levels ACL-to-Lo
Slide 11: Allowance for Credit Losses – Q1 2022 Movement
Differences due to rounding ACL Movement: Moody’s February ‘22 vintage continues to show a favorable economic scenario A better-than-expected PR labor market contributed to the reductions in qualitative reserves Portfolio changes include changes in credit quality and volume mix. The increase is main
Slide 12: Capital and Franchise Additional Value
Capital 2022 Capital actions: Entered into an ASR of $400 million, as part of the previously announced 2022 capital actions to repurchase up to $500 million of common stock Increased quarterly common stock dividend to $0.55 per share from $0.45 Franchise Additional Value Investments in Evertec and B
Slide 13: First Quarter 2022 Appendix
INVESTOR PRESENTATION First Quarter Appendix 2022
Slide 14: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $59 billion Assets = $11 billion Puerto Rico Operations United States Operations Assets = $70 billion Information as of March 31, 2022 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León under Corporate segment Transaction
Slide 15: Business Segments
Differences due to rounding Business Segments
Slide 16: Puerto Rico 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 17: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 18: Popular Inc. Credit Ratings
Senior Unsecured Ratings Moody’s Ba3 Stable Outlook Fitch BBB- Stable Outlook S&P BB- Positive Outlook February Moody’s changes outlook to Positive from Negative April S&P upgrades to BB- from B+ revised outlook to Positive 2017 October Fitch and S&P change outlook to Negative from Positive 2018 May
Slide 19: First Quarter 2022
INVESTOR PRESENTATION First Quarter 2022