Slide 1: Financial Results Second Quarter 2013
Exhibit 99.1 Financial Results Second Quarter 2013
Slide 2: Forward Looking Statements
Forward The management’s Factors well capital; the of looking 1information operations; stock information as the (v) that statement. Looking and magnitude the may included bond and current relative contained cause Statements (x) Please markets; in additional of expectations strength such this such re
Slide 3: Q2 2013 Accomplishments
Accomplishments Adjusted Capital Credit Earnings Strong Completed Continued Total NCO Robust $1.9 2Tangible billion NPAs inflows ratio margins: capital, book net improvement under major down inincome increased excess value Tier Popular, 2% loan by &1per Q2 of for $1.2 of Common portfolio slightly $6
Slide 4: EVERTEC IPO Transaction Overview
Recent “EVTC” Price Transaction EVERTEC Overview Popular Bank Q2 Balance After-tax BPOP Value 3¹Additional 32.4% Impact highlights holding Current retained Events sold ownership Sheet commenced gain on market 8.8M company market increased IPO Q2: asignificant stake shares capitalization EVERTEC decl
Slide 5: Recent NPL Sale: BPPR Bulk Sale
Recent NPL BPPR Purchase Pricing: $107 Deal Cash Sold Significant Total NPLs The Approaching 4Non completion provision to Sale structure: million sale NPLs to sold Events atotal third price: with Substantially non-performing reduction reduced after-tax our loans party Q2: credit no $244 oftarget sel
Slide 6: Key Areas of Shareholder Focus
Key Areas Completion Continue Credit NPL Robust Earnings 5These inflows accomplishments capital, Capital de-risking ofofin Shareholder four derisked four andnon PR years de-risking and performing contribute balance Focus have US been portfolios efforts sheet toasset reduced closing and strengthen bu
Slide 7: Financial Summary Q2 2013
Financial Q2 See In Gross 5,127 80,777 ¹Net 6FDIC Lower thousands 2013 appendix interest income Net deposit revenues 18,534 FDIC Q1 Summary revenues income $68,104 2013 Adjusted for insurance loss Income 486,545 Non-GAAP share 406,385 $354,217 (unaudited) $60,266 Adjusted tax credit 452,457 expense
Slide 8: Puerto Rico Corporate Income Tax Changes
PR Corporate Impact Income 7The corporate Government effective to taxPopular nettax Tax income benefit rate ofChanges hasPuerto included will tax of $216 rate be Rico approximately was amillion tax revised increased on due gross thetocorporate 35% to income revaluation 39%, of reverting tax approxim
Slide 9: Capital Analysis and CCAR Review
We** Capital BPOP 11.8 13.1 14.5 $2.6 17.3 18.6 9.6 10.4 ** Tier *Averages Analysis 8Current 8.6 expect 1$1.9 Common Q2 Ratios Risk and $2.0 2013 to forWeighted Review remain 30 %CCAR Tier Equity Excess bank 1“well-capitalized” (CCAR) Capital holding Assets &capital Capital CapPR are Total and ratio
Slide 10: Asset Quality Metrics: Non-Performing Assets
Asset $2,276 NPL 7.56% 10.4% 10.0% QoQ $1,404 sale $1,203 7.6% 4.7% Metrics Non-Performing Non-performing $2,448 30%, $2,277 Improvement 6.9% 6.3% 3.8% 1Q NPLs07 of to decline 7.5% 4.9% QoQ $1,500 6.3% 3.3% Sales OREO 2Q in $1,732 $1,614 $435 $2,116 8.7% 8.0% $2,402 $2,254 loans exclude Q2 07 and $1
Slide 11: NPL Inflows
NPL Commercial, Total $271 $273 $333 $397 $67 $158 $210 $231 $257 Excludes Mortgage $232 $175 $154 $140 $110 $99 $9 Q1 US Metrics 1065$13 4311 Inflows $92 $Inflows $131 $279 $222 $187 $166 NPL Q2 48 93 $10 exclude $87 consumer $NPL 11 $100 inflows Inflows $157 $101 59 $8 PR $84 Q3 remained constru
Slide 12: Allowance for Loan and Lease Losses Methodology
Allowance General Specific Changed îMain Recalibrated 1Implemented 11 Enhances Excludes Changes Reserve- reserve reserve tofor homogeneity write-down aand more Loan --enhanced Based ASC Attributed granular and450 and on Lease of the historical (FAS portfolios provision analysis to credit Losses loan
Slide 13: Continuous Improvement in NCOs and Coverage
Continuous NCOs Driven NPL BPPR NCO Provision 165% 179% 154% 130% $727 44% 56% $529 Q1 ALLL Metrics 12 1142% reduction $690 ratio ($M) 166% 154% 129% ALLL/NPL Q2 ALLL/NCO include decreased ($M), by exclude increased to ($M) 11 40% improved under $693 and Improvement NCO 167% 128% ALLL-to-NCO Q3$200
Slide 14: Driving Shareholder Value
Driving Earnings Unique With capacity metrics Robust we announced Our shareholder-friendly EVTC 13 expect accomplishments the ownership, capital are franchise Shareholder major Capital toBasel now remain with NPA close Value III inBHD excess PR rules “well-capitalized” transactions fashion Value to
Slide 15: Appendix
Appendix
Slide 16: Who We Are: Summary Franchise
Whobranches Summary Franchise Financial Headquartered $37 $25 $27 276 NASDAQ Market 1As *Doing 15 billion of WeJune Cap: business Are services Corporate ticker in30, $3.1 –serving assets total in Popular, 2013 as symbol: San billion1 company loans deposits Popular (top Structure customers Juan, Inc.
Slide 17: GAAP Reconciliation Q2 2013
GAAP Q2 US In [2][3] (expense) 25,500 194,907 Net [1] first [3] $7.9 16 thousands, Covered Represents 2013 GAAP interest income quarter million Reconciliation 25,500 856 (3,755) Non income (loss) 2013, loans resulting 1,656 except Provision the GAAP (3,755) $327,468 represent recorded net 192,395 $3
Slide 18: GAAP Reconciliation Q1 2013
GAAP Q1 US In Non FDIC Gross 206,300 loans) Provision Personnel Other Total Income Net [1] valuation 17 thousands, Covered 2013 GAAP interest revenues (loss) interest revenues provision operating operating loss-share revenues [1] Reconciliation before tax 148,823 adjustments for income costs Non (be
Slide 19: Consolidated Credit Quality Summary
Consolidated $Q2 Loans Performing NPL Total Non-performing NPLs Net Commercial Construction Legacy Mortgage Consumer Write-downs NCOs Provision PLL Allowance 1ALL 18in13 Excluding charge-offs millions to HFS to Non HIP Held vs to average NCOs loans NPLs $28 ($1) average Q1 for $172 $16 11 Covered to
Slide 20: Puerto Rico and US Business Results
$PRExcludes Non Gross Provision Expenses Tax Net NPLs Loan Assets Loans Deposits 1NIM 19inUS & Interest Income (Benefit) millions Interest 5.26% loss US (HIP) (HIP Revenues (HIP) (HIP $27,699 20,719 238 Business (non-covered) (covered for reserve covered ++(Loss) Income 5.18% ¹Income 18,890 (unaudit
Slide 21: Recent Fiscal Actions of Puerto Rico Government
Recent Fiscal The Comprehensive Retirement Employee Active Act Completed Puerto Promotion Source: 20 154 corporate 2014 Rico public PR Government excise contribution of Government Luis age budget Aqueduct Act employees income tax increased Government Muñoz 20-2012 has was Development tax and been to
Slide 22: Popular, Inc. Credit Ratings
Popular, Our Fitch: Moody’s: S&P: April January December July As 21 the senior 2011: 2012: B+ BB- P.R. 2013: 2012: Inc. Stable B1 2012: 2011: S&P unsecured Stable economy Moody’s Credit Stable Fitch raised Outlook S&P Moody’s Outlook Ratings raised Outlook stabilizes placing ratings raised our(No do
Slide 23: Financial Results Second Quarter 2013
Financial Results Second Quarter 2013