Popular, Inc. · NASDAQ:BPOP
Popular — Q2 2019 Earnings Presentation
18 slides from Popular's earnings presentation, Jul 24, 2019
Slide 1: Investor Presentation Second Quarter 2019
Investor Presentation Second Quarter 2019 Exhibit 99.2
Slide 2: 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, Inc.’s (the “Corporation”) management and, by their na
Slide 3: Q2 2019 Highlights
NPLs decreased by $22 million QoQ; ratio at 2.1% NCO ratio decreased to 0.71% from 0.92% the previous quarter Credit Metrics Net income of $171.1 million Strong margins: Popular, Inc. 4.11%, BPPR 4.37% Earnings Robust capital; Common Equity Tier 1 Capital ratio of 16.8% Tangible book value per share
Slide 4: Puerto Rico – Key Indicators
Puerto Rico – Key Indicators 1. Source: P.R. Statistics Institute based on U.S. Bureau of Transportation Statistics (data represents the net movement of passengers of domestic flights departing and arriving at the SJU International Airport); 2. Source: U.S. Bureau of Labor Statistics (Household Surv
Slide 5: Financial Summary (GAAP)
Financial Summary (GAAP) (Unaudited) (S in thousands) 02.2019 012019 ce Net interest income $ 476316 $ 470,963 $5,353 Service charges on deposits 39,617 38,691, 926 Other service fees 74,031, 64307, 9,724 Mortgage banking activities (1,773) 9926 | (11,699) Adjustments (expense) to indemnity reserves
Slide 6: Net Interest Margin Dynamics
Net Interest Margin Dynamics Q2 2019 net interest margin at 4.11% Strong and stable loan yield at 6.81% Continued growth of the loan portfolio Low deposit betas in P.R. Total deposit cost increased 4 basis points to 75 basis points in Q2 2019 5-year compounded growth rate of 10% in deposit volumes,
Slide 7: Capital
Capital Note: Estimated for the current period Robust capital levels; Common Equity Tier 1 of 16.8% Tangible book value per share of $51.44 compared to $48.58 in Q1 2019 Popular regulatory capital does not include: Disallowed portion of ALLL of $242 million Unrealized gain on Evertec equity stake of
Slide 8: Municipalities
Municipalities Obligations of municipalities are backed by real and personal property taxes, municipal excise taxes, and/or a percentage of the sales and use tax. Indirect exposure includes loans or securities that are payable by non-governmental entities, but which carry a government guarantee to c
Slide 9: Non-Performing Assets
Non-Performing Assets ($ in millions) Non-Performing Assets Beginning in 2018 figures include loans previously classified as covered Differences due to rounding Non-Performing Loans ($ in millions) Highlights NPAs decreased by $28 million QoQ NPLs decreased by $22 million QoQ P.R. NPLs at $523 milli
Slide 10: NPL Inflows
NPL Inflows Total NPL Inflows ($ in millions) Mortgage NPL Inflows ($ in millions) Commercial, Construction and Legacy NPL Inflows ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding Highlights Total NPL inflows decreased by $3 mill
Slide 11: NCOs, Provision and ALLL Credit Metrics
NCOs and NCO-to-Loan Ratio ($ in millions) Provision and Provision-to-NCO Ratio ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding ALLL, ALLL-to-NCO and ALLL-to-NPLs Ratios ($ in millions) Additional Credit Metrics Highlights NCO r
Slide 12: Driving Shareholder Value
Driving Shareholder Value Capital Robust capital with Common Equity Tier 1 Capital of 16.8% Tangible book value per share of $51.44 Continued capital strategy implementation Franchise Additional Value Investments in Evertec and Banco BHD León Puerto Rico Uniquely poised to take advantage of improvin
Slide 13: Second Quarter 2019 Appendix
Investor Presentation Second Quarter 2019 Appendix
Slide 14: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $41 billion Assets = $10 billion Puerto Rico Operations United States Operations Assets = $51 billion Corporate Structure – Popular, Inc. Information as of June 30, 2019 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León
Slide 15: De-Risked Loan Portfolios
De-Risked Loan Portfolios Differences due to rounding ($ in millions) 1 Small and Medium Enterprise 2 NCOs distribution represents the percentage allocation of net charge-offs from Q1 2008 through Q1 2019 per each loan category, excluding net charge-offs from previously covered loans up to Q2 2015.
Slide 16: Business Segments (GAAP)
Business Segments (GAAP) ¹ Non-fully taxable equivalent Differences due to rounding
Slide 17: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B1 Stable Outlook Fitch BB Stable Outlook S&P BB- Positive Outlook February Moody’s changes outlook to stable from negative April S&P upgrades to BB- from B+ revised outlook to stable 2017 February S&P placed BPOP
Slide 18: Second Quarter 2019
Investor Presentation Second Quarter 2019