Slide 1: Financial Results Second Quarter 2011
Financial Results Second Quarter 2011
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Refor
Slide 3: Q2 2011 Highlights
Q2 2011 Highlights Net income of $110.7 million ; or $0.11 per share Results include a non-recurring tax benefit of $60 million Pre-tax income amounted to $72.6 million Our ability to generate strong top-line revenues continued in Q2 Credit continues to be stable but we remain cautious about the PR
Slide 4: Significant Quarterly Events
Significant Quarterly Events 3
Slide 5: Puerto Rico Economic Update
Puerto Rico Economic Update Government actions update Budget deficit has been reduced from 44 percent of revenues in 2009 and is expected to be 7 percent of revenues this year Housing incentive extended to October 2011 First public-private partnership (P3) awarded (PR-22/PR-5 concession) to Abertis/
Slide 6: Financial Results Unaudited
Financial Results 5 1 Unaudited
Slide 7: P.R. Business
P.R. Business Q2 net income of $140 million includes a $60 million tax benefit and a WB related provision of $49 million Net interest income and NIM rose, driven by lower deposit costs and higher accretion on WB loans Provision for loan losses in Q2 increased by $19 million net of WB Sale of HFS con
Slide 8: Revenues - Westernbank Covered Loans
Revenues- Westernbank Covered Loans 7 Overall expected credit losses declined versus previous estimates Provision related to covered loans increased by $33 million, which is 80% offset by loss share income Revenue contribution from WB continues strong * Includes ASC 310-30 accretion and ASC 310-20 i
Slide 9: U.S. Business
U.S. Business Reduction in net income in Q2 driven by a rise in provision Excluding the impact of the loan sale in the first quarter, the provision increased by only $3 million NPLs (excluding held for sale) for the quarter are down by $23 million (5%) Expenses increased slightly by $4 million prima
Slide 10: Non-Performing Loans and Credit Quality Overview
Non-Performing Loans Commercial & Construction NPL Inflows Credit Quality Overview- NPLs rose $17M to 8% of total loans from 7.90% in Q1 Mortgage NPLs rose by $16M, mostly related to the PR portfolio (up $10M) Commercial NPLs increased by $32M, primarily in PR (up $30M) Partially offset by a reducti
Slide 11: Capital Ratios
Capital Ratios* Strong capital position relative to Basel III guidelines and peers Slight decline in capital ratios was driven by the DTA generated by the Q2 tax benefit, a portion of which is disallowed for regulatory purposes 10 *Capital ratios as of 6-30-2011 are estimated 1 See the earnings pres
Slide 12: Recap & Outlook
Recap & Outlook We reached our second consecutive quarter of operating profitability since 2008 The P.R. economy, while apparently stabilizing, is still stressing the BPPR loan portfolio BPNA continues to focus on strengthening its community business amid better credit conditions which should improv
Slide 13: Appendix
POPULAR. Appendix
Slide 14: Credit Summary - Popular, Inc. Consolidated
13 Credit Summary- Popular, Inc. Consolidated Credit summary excludes covered assets
Slide 15: Financial Results Second Quarter 2011
Financial Results Second Quarter 2011