Popular, Inc. · NASDAQ:BPOP
Popular — Kaufman Bros., L.P. investor presentation (February 2008)
15 slides from Popular's conference presentation, Feb 22, 2008
Slide 1: Kaufman Bros., L.P. February 22, 2008
Kaufman Bros., L.P. February 22, 2008
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: Fourth Quarter Results
Fourth Quarter Results $ in millions (except per share data) $ in millions (except per share data) 2007 2007 2007 2007 2006 4Q 07 3Q 07 2Q 07 1Q 07 4Q 06 Net Interest Income $363 $360 $371 $355 $360 Provision for Loan Losses (203) (148) (115) (96) (108) Service Fees (Deposits & Other) 142 143 138 13
Slide 4: Q4 Extraordinary Items
Q4 Extraordinary Items Recharacterization - PFH: Approximately $3.2 billion in mortgage loan securitizations completed between 2001 and 2006 were removed from the balance sheet, with their related borrowings. Recharacterization resulted in a pretax loss of $90 million, and the recognition of $38 mil
Slide 5: Q4 Extraordinary Items: Sale of Equity One
Q4 Extraordinary Items Sale of Equity One: American General Finance agreed to purchase $1.5 billion in mortgage and consumer loans from Equity One The sale will provide $1.5B in liquidity that will be used to repay borrowings, and further reduce the Company's subprime exposure With the loan sale clo
Slide 6: Capital Management
Capital Management Capital has remained at strong levels throughout market turmoil. Extraordinary items in Q4 and U.S. restructuring have not impacted adversely our capital ratios. $ in billions 2007 2007 2007 2007 2006 4Q 07 3Q 07 2Q 07 1Q 07 4Q 06 Tier 1 Capital Ratio 10.12% 10.73% 10.66% 10.80% 1
Slide 7: P.R. Business
P.R. Business Despite the challenging environment in P.R., the business has been executing well. Continuing troubles in the P.R. banking sector have permitted us to solidify gains in the market place. The acquisition of the retail banking business of Citibank in November added approximately $1 billi
Slide 8: U.S. Business
U.S. Business The business has been particularly affected by: Rising charge-offs in PFH owned-in-trust & wholly-owned loans Impact of market disruption on gain on sale volumes & margins Substantial increase in borrowing costs Increased writedowns in the value of subprime-related assets Changes in ma
Slide 9: U.S. Strategy Update
U.S. Strategy Update Changes are underway at the U.S. business to increase its return on capital. The difficulty of financing a consumer finance company in the capital markets, led to the sale of a significant portion of Equity One's mortgage loan & consumer loan portfolio. The business model of E-L
Slide 10: Evertec
Evertec 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 Main initiatives Revenues incre
Slide 11: Briefing - P.R. Economy
Briefing - P.R. Economy Bottom line: Weak performance expected in 2008, but should remain stable. Indicators to watch in 2008: Government revenues U.S. economy (i.e., P.R. tourism) Housing sector Oil prices Silver linings: Employment fallout has evened out in last five months (July-Nov.), according
Slide 12: Subprime Exposure
Subprime Exposure The Q4 recharacterization, charge-offs and loan amortization, reduced PFH subprime exposure to approximately $1 billion as of Dec 31 (excluding loans to be sold to American General Finance). The sale of Equity One in Q1 08 will reduce subprime mortgage loans at PFH by $800 million.
Slide 13: Liquidity
Liquidity Banking subsidiary liquidity is currently strong: Short-term unsecured borrowings as of Dec 31 amounted to $538 million vs. $1.364 billion in June 30. .... but there were $6 billion in strong sources of liquidity available: Fed Discount Window: $3 billion Unpledged securities: $1 billion M
Slide 14: Closing Thoughts
Closing Thoughts The P.R. business is executing well in a very challenging environment, and strengthening its competitive position. The U.S business has required structural changes to improve its core profitability Business line divestitures at E-Loan Sale of non-banking financial business in U.S. S
Slide 15: Kaufman Bros., L.P. February 22, 2008
Kaufman Bros., L.P. February 22, 2008
Popular — Kaufman Bros., L.P. investor presentation (February 2008) on 6ix