Slide 1: 2Q 2009 Results & Strategic Update
2Q 2009 Results & Strategic Update July 21, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements. The following factors among others could cause the results of the exchange offer to differ materially: the rate of declining growth in the economy and employment levels, as well as general business and economic conditi
Slide 3: Financial Results
Financial Results
Slide 4: Financial Results: 2Q 2009 Variances
Financial Results 2Q 2009 v. 1Q 2009 Variances Key Points Higher provision by $76mm at BPNA, $74mm at BPPR and $10mm at E-LOAN + - - Lower non-interest income due to lower volume and yield of loans related to; slower lending activity, increase in non performing loans and exit of several lines of bus
Slide 5: Financial Results By Segment
Financial Results By Segment Comments: BPNA Q2 09 results were driven primarily by a loan loss provision of $168mm, compared with a provision of $221.2mm in Q1 and a provision of $81.4mm in Q2 2008 PFH is a discontinued operation BPPR Q1 results include gain on sale of securities of $183mm; and Q2 r
Slide 6: Credit Update - General Trends
Credit Update - General Trends In millions 2Q 2009 1Q 2009 2Q 2008 Provision for loan losses $349.4 $372.5 $189.2 Net Charge Offs $260.3 $198.2 $113.1 Non-Performing Loans $1,978 $1,404 $883 Allowance for Loan Losses $1,146 $1,057 $653 1,404 1,978 Q1 09 Q2 09 Commercial 525 686 Construction 435 767
Slide 7: New Business Focus
New Business Focus
Slide 8: Integration: U.S. and Puerto Rico operations under one management team
Integration: U.S. and Puerto Rico operations are now under one management team Popular Inc. EVERTEC BPPR PNA Pop. Mortgage Pop. Securities Pop. Insurance Pop. Auto EVERTEC LA Contado BPNA PFH E-LOAN Individual Credit, Retail (US) People EVERTEC Risk Management Commercial Banking Admin Financial and
Slide 9: Actions to mitigate credit costs
Actions to mitigate credit costs Headcount reductions in continuing operations from 10,991 FTEs as of March 31, 2008 to 10,080 as of March 31, 2009 Reduction between 5% to 10% in base salary of executive officers and certain other officers of the Corporation Freeze of the retirement plan of Banco Po
Slide 10: Actions to reduce costs
Actions to reduce costs Headcount reductions in continuing operations from 10,991 FTEs as of March 31, 2008 to 10,080 as of March 31, 2009 Reduction between 5% to 10% in base salary of executive officers and certain other officers of the Corporation Freeze of the retirement plan of Banco Popular de
Slide 11: Capital
Capital
Slide 12: Capital Update
Capital Update Minimum "Well Capitalized" Popular Inc. as of 6/30/2009 Guideline The exchange offer is designed to change the components of our capital, although it will not increase total capital...
Slide 13: Per Share Tangible Book Value Vs. Stock Price
Per Share Tangible Book Value Vs. Stock Price Historical TBV Per Share Vs. Stock Price After trading at a premium to TBV per share, the stock has more recently been trading at a discount As of June 30th, TBV per share was $2.68, as compared to a market price of $2.20
Slide 14: Business & Strategy
Business & Strategy
Slide 15: US Restructuring: Focus on core community banking
US Restructuring: Focus on core community banking, exiting most non-traditional businesses All restructuring efforts at BPNA expected to generate approx. $50 million in recurrent annual cost savings. FTES at BPNA down 455 from 2,147 at Q1 2008 to 1,692 at Q1 2009 FTEs at E-LOAN down 221 from 342 at
Slide 16: EVERTEC: leveraging processing infrastructure to service other institutions
Leveraging existing product offering and processing infrastructure to service other financial institutions and enter new markets Continuous improvement of quality levels Enhance competitiveness of ATH network Invest significantly in new technology developments Offices in 8 countries, servicing custo
Slide 17: Banco Popular de Puerto Rico: Banking and Non-Banking Operations
Banking Operations Non-Banking Operations Leading financial institution in the Caribbean with 179 Branches in Puerto Rico, 8 in the Virgin Islands and 62 non-banking offices throughout P.R. and Virgin Islands Approximately 1.4 million clients 6,244 full time equivalent employees (FTEs) 605 ATM and 2
Slide 18: Q&A
Q&A
Slide 19: Notice
Notice Popular, Inc. has filed a registration statement (including a preliminary prospectus and related exchange offer materials) with the SEC for the exchange offer to which this communication relates. This registration statement has not yet become effective. The preliminary prospectus and related
Slide 20: 2Q 2009 Results & Strategic Update
2Q 2009 Results & Strategic Update July 21, 2009