Slide 1: Investor Presentation Second Quarter 2022
INVESTOR PRESENTATION Second Quarter 2022 Exhibit 99.2
Slide 2: Cautionary Note Regarding Forward-Looking Statements
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, including without limitation those about Popular, Inc.’s (“Popular” or the “Corporation”) acquisition of certa
Slide 3: Q2 2022 Highlights
NPLs decreased $42 million QoQ; NPL ratio at 1.6% vs. 1.8% in Q1 2022 NCO ratio at 0.08% compared to 0.05% the previous quarter ACL-to-NPL ratio at 143% vs. 130% in Q1 2022 Credit Metrics Net income of $211 million Net interest margin: Popular, Inc. 3.09%, BPPR 3.02% Earnings On July 1, completed th
Slide 4: Business Metrics
Business Metrics BPPR: Commercial loans, excluding PPP, increased $327 million or 4% from Q1 2022 Auto and lease financing portfolio increased $114 million or 2% from Q1 2022 Mortgage originations were 42% lower than Q2 2021 Credit and debit card sales (in dollars) were 1% lower than Q2 2021 P.R. pu
Slide 5: Economy: Puerto Rico Key Indicators
Economy 1 Source: United Automobile Importers Group (based on units) as of June 2022; 2 Source: Puerto Rico Economic Development Bank, as of May 2022; 3 Source: U.S. Bureau of Labor Statistics (Seasonally Adjusted) as of June 2022; 4 Credit and debit card sales pertain to BPPR customers only as of J
Slide 6: Financial Summary
Financial Summary poputar. (Unaudited) ($ in thousands Q2 2022 Qi 2022 nce Net interest income $ 533,862 | $ 494,312 $39,550 Service charges on deposits 41,809 40,713 1,096 Other senvice fees 81,451 77,134 4317 Mortgage banking activities 13,575 12,865 710 20,576 23,980 __(3,404) 691,273, 649,004 42
Slide 7: Net Interest Margin Dynamics
¹ FTE stands for fully taxable-equivalent basis. Represents a non-GAAP financial measure. See the Corporation’s earnings press release, Form 10Q and Form 10K filed with the Securities and Exchange Commission for the applicable periods, for a GAAP to non-GAAP reconciliation 2 Balances are at end of p
Slide 8: Capital
Robust capital levels; Common Equity Tier 1 of 16.4% Leverage ratio of 7.6% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 45% of total assets 2022 capital actions: On July 1, completed the acquisition of key customer channels from Evertec On Jul
Slide 9: Non-Performing Assets
Non-Performing Assets* NPAs and NPLs decreased by $40 million and $42 million QoQ, respectively NPL inflows decreased by $5 million QoQ, mostly due to lower P.R. commercial and mortgage inflows by $4 million and $2 million, respectively P.R. NPLs at $445 million, or 2.1% of loans, down by $42 millio
Slide 10: NCOs and Allowance for Credit Losses
NCOs and NCO-to-Loan Ratio ($ in millions) Differences due to rounding 1 Includes construction loans NCOs of $6 million, increasing by $2 million QoQ BPPR’s NCOs at $5 million, flat QoQ PB’s NCOs at $1 million vs. a net recovery of $2 million the prior quarter NCO ratio at 0.08% vs. 0.05% in Q1 2022
Slide 11: Allowance for Credit Losses – Q2 2022 Movement
*Differences due to rounding ACL Movement: Moody’s Q2 2022 forecast continues to show economic growth, albeit at a slower rate Slight increase in reserves due to revision to prior periods’ employment scenarios Qualitative reserves and portfolio changes mainly influenced by higher loan volume, partia
Slide 12: Capital and Franchise Additional Value
Capital 2022 capital actions: On July 1, completed the acquisition of key customer channels from Evertec On July 12, completed the previously announced $400 million ASR Increased quarterly common stock dividend to $0.55 per share from $0.45 Franchise Additional Value Investments in Evertec and Banco
Slide 13: Second Quarter 2022 Appendix
INVESTOR PRESENTATION Second Quarter Appendix 2022
Slide 14: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $60 billion Assets = $11 billion Puerto Rico Operations United States Operations Assets = $72 billion Information as of June 30, 2022 ¹ Doing business as Popular 2 Reduced to 10.6% on July 1, 2022 Selected equity investments EVERTEC and Banco BHD León u
Slide 15: Financial Impact of Evertec Transaction
Financial Impact of Evertec Transaction The recently completed acquisition of key customer channels from Evertec and related amendment and restatement of our service agreements with Evertec is expected to provide approximately $14 million in financial benefits in 2023 after giving effect to the loss
Slide 16: Business Segments
Differences due to rounding Business Segments
Slide 17: Municipalities and P.R. Public Sector Exposure
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 sources of repayment, but which carry a government gua
Slide 18: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 19: Senior Unsecured Ratings
Senior Unsecured Ratings Moody’s Ba3 Positive Outlook Fitch BBB- Stable Outlook S&P BB+ Stable Outlook February Moody’s changes outlook to Positive from Negative April S&P upgrades to BB- from B+ revised outlook to Positive 2017 October Fitch and S&P change outlook to Negative from Positive 2018 May
Slide 20: Second Quarter 2022
INVESTOR PRESENTATION Second Quarter 2022