Slide 1: Financial Results Fourth Quarter 2012
Exhibit 99.1 Financial Results Fourth Quarter 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 SecuritiesLitigation ReformAct of 1995.Theseforward-looking statementsare basedon management’scurrent expectations and involve risks and uncertaintiesthat m
Slide 3: Highlights
Highlights • Q4 net income $84 million which includes EVERTEC tax benefit of $27 million* Earnings • 2012 net income $245 million • Non performing loans held in portfolio declined by $125 million QoQ and down $313 million YoY Credit Commercial NPLs declined $107 million QoQ driven by improved credit
Slide 4: Addressing Key Areas of Shareholder Focus
Addressing Key Areas of Shareholder Focus • Reducing non-performing loans Total NPLs held in portfolio declined $313 million in 2012 – Commercial, mortgage and construction NPLs decreased by $165 million, $56 Credit million and $53 million respectively (excludes covered loans) Reduced HFS balance (e
Slide 5: Fundamental Strengths
Fundamental Strengths • Premier franchise in PR with #1 market position in most product categories and strong revenue generating capacity PR mortgage business (~32% market share) increased originations by 15% in Q4 and by 21% for the full year with $1.5 billion PR commercial loans increased by $113
Slide 6: Financial Results (Unaudited)
Financial Results (Unaudited) In thousands, except per share amount Q4 2012 Q3 2012 Variance Net interest income $350,411 $343,426 $6,985 Service fees & other oper. income 150,249 114,840 35,409 Gain on sale of investments, loans & trading profits 19,576 7,576 12,000 FDIC loss-share expense (36,824)
Slide 7: Capital
Capital Capital Ratios % Excess Capital ($) in billions ** *Comprehensive Capital Analysis and Review (CCAR) of 19 firms as well as the Capital **Excess capital over “well capitalized” Basel I threshold Plan Review (CapPR) of an additional 11 bank holding companies with $50 billion or more of total
Slide 8: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Continued improvement in key credit quality Non-Performing Loans HIP ($M) metrics: • Non performing loans held-in- portfolio declined: $125 million or 8% QoQ $313 million or 18% YoY • PR Commercial NPLs held-in-portfolio are down by $90 million Q
Slide 9: NPL inflows at 3-year lows
NPL inflows at 3-year lows Total NPL Inflows ($M) • Total NPL inflows decreased by $65 million QoQ and are at the lowest level in three years • Commercial, construction and legacy NPL inflows decreased by $73 million QoQ driven by credit improvements in both PR and the US • Mortgage NPL inflows incr
Slide 10: Credit Quality Overview (Excluding Covered Loans)
Credit Quality Overview (Excluding Covered Loans) NCO ($M) and NCO-to-HIP Loan Ratio • NCO ratio under 2% for the year; at lowest point since 2007 • Provision increased slightly to $86 million driven by PR PR PLL/NCO100% – US PLL/NCO36% – • ALL/NPL increased to 44% driven by the reduction in NPLs AL
Slide 11: Continue to Leverage Strengths and Drive Value
Continue to Leverage Strengths and Drive Value • Drivers of shareholder value in 2013 Continue to reduce NPLs through aggressive loss mitigation efforts and sales that make economic sense Capitalize on our leading market position to drive originations and sustain above average margins Make further i
Slide 12: Appendix
i) POPULAR. POPULAR. Appendix
Slide 13: PR Economic Overview
PR Economic Overview • Official forecast calls for first positive GNP growth since 2005. Forecast is +0.4% (fiscal 2012) and +0.6% (fiscal 2013) • In the lastseveralquarters,indicatorssuchasretailandauto sales,homesales,cementsalesandsales& usetax among others show stabilization Recent Trends GDP –C
Slide 14: Who We Are – Popular, Inc.
Who We Are –Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $36.5bn 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 15: PR Franchise Value Built Over Years
PR Franchise Value Built Over 119 Years • Indisputable, sustained market leadership Market Share Trend (2002– 2012) Category Market Position as of Market Share Top Competitor Q3 2012 as of Q3 2012 Institution/Group Share Total Deposits (Net of Brokered) 1 38% Santander 14% 1 Total Loans 1 35% FirstB
Slide 16: PR & US Business
PR & US Business PR US $ in millions (Unaudited) Q4 12 Q3 12 Variance Q4 12 Q3 12 Variance Net Interest Income $309 $300 $9 $68 $70 ($2) Non Interest Income 90 114 (24) 15 11 4 Gross Revenues 399 414 (15) 83 81 2 Provision (non-covered) 78 69 9 8 14 (6) Provision (covered WB) (3) 23 (26) - - - Provi
Slide 17: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Q4 12 vs Q3 12 Q4 12 vs Q4 11 $ in millions Q4 12 Q3 12 Q4 11 Loans Held in Portfolio (HIP) $20,984 $20,754 $230 1.1% $20,603 $381 1.9% Performing HFS 258 228 30 13.2% 101 157 155.4% NPL HFS 96 109 (13) -11.6% 262 (166) -63.3% Total Non Covered L
Slide 18: Credit Ratings Update
Credit Ratings Update • Our senior unsecured ratings have been gradually improving since 2010: Moody’s: B1 Stable Outlook (Revised December 2012) S&P: B+ Stable Outlook (No Change) Fitch: BB- Stable Outlook (Revised January 2013) • January 2013: Fitch raised to BB- from B+; outlook revised to stable
Slide 19: Financial Results Fourth Quarter 2012
Financial Results Fourth Quarter 2012