Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025
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 regarding Popular’s business, financial condition, results of operations an
Slide 3: Q2 2025 Highlights
Q2 2025 Highlights Financial Highlights Quarter Highlights ($ in millions, except per share information) Income Statement Q2 2025 Q1 2025 Change Q2 2024 Highlights: Net Income $ 210 $ 178 $ 32 $ 178 • Net interest income increased $26 million to $632 million Net Interest Margin (NIM) 3.49% 3.40% 0.0
Slide 4: Business Highlights
Business Highlights BPPR Popular U.S. ($ in millions) Q2 2025 Q1 2025 Change Q2 2024 ($ in millions) Q2 2025 Q1 2025 Change Q2 2024 Loans Held in Portfolio $ 26,774 $ 26,093 $ 681 $ 25,111 Loans Held in Portfolio $ 11,380 $ 11,129 $ 251 $ 9,911 P.R. Public Deposits 20,918 19,622 1,296 19,722 Total D
Slide 5: Financial Summary
Financial Summary Quarterly Results (unaudited) ($ in thousands, except EPS) Q2 2025 Q1 2025 Variance Net interest income $ 631,549 $ 605,597 $ 25,952 Provision for credit losses 48,941 64,081 (15,140) Net interest income after provision for credit losses $ 582,608 $ 541,516 $ 41,092 Banking fees 11
Slide 6: Net Interest Income and NIM Dynamics
Net Interest Income and NIM Dynamics Quarter Highlights: Earning Assets • Net interest income increased $26 million to $632 million (ending balances, $ in billions)1 $70.8 $72.8 • Net interest margin increased 9 bps to 3.49% $69.2 $68.0 $69.7 0.14 70.00 • Net interest margin FTE of 3.85% increased 1
Slide 7: Non-Interest Income
Non-Interest Income Quarter Highlights: Change Q2 • Non-interest income of $168.4 million, 2025 vs Q1 Q2 increased $16.3 million ($ in millions) Q2 2025 Q1 2025 Variance Q2 2024 2025 2024 • Banking fees higher by $4.0 million due to Service charges on deposits $ 38.8 $ 39.1 $ (0.2) $ 37.5 (1%) 3% in
Slide 8: Operating Expenses
Operating Expenses Quarter Highlights: Change Q2 2025 vs • Operating expenses increased $21.7 Q1 Q2 $ in millions Q2 2025 Q1 2025 Variance Q2 2024 million or 5% to $492.7 million, mainly 2025 2024 due to higher personnel costs Salaries $ 132.8 $ 130.9 $ 1.8 $ 128.6 1% 3% ⁻ Personnel costs increased
Slide 9: Capital
Capital Quarter Highlights: Popular, Inc. • Common Equity Tier 1 Ratio of 15.91% decreased 20 bps driven by loan Q2 2025 Q1 2025 growth and common stock repurchases 0.2 • TCE Ratio1 of 6.81% vs. 6.78% in Q1 2025 0.18 0.16 17.70% 17.92% 16.17% • Tangible book value per share increased $3.39 to $75.41
Slide 10: Non-Performing Assets
Non-Performing Assets Quarter Highlights: Non-Performing Assets ($ in millions) • Non-Performing Assets (NPAs) decreased $8 million $472 500 $444 $438 $435 0.04 • Non-Performing Loans (NPLs) decreased $2 million 450 $412 $424 $408 0.035 $366 $358 - BPPR NPLs decreased $4 million to $258 million 400
Slide 11: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses Quarter Highlights: • NCOs at $42 million and NCO Ratio of 0.45%, decreased by $7 million and 8 bps, respectively; led by lower consumer NCOs at BPPR • ACL-to-Loans Ratio at 2.02% vs. 2.05% in Q1 2025 ACL Movement Allowance for Credit Losses ($ in millions) ($ in
Slide 12: Driving Value
Driving Value Market leader in Puerto Rico • Substantial capital and liquidity with diversified deposit base • Well-positioned to take advantage of market opportunities • Focused on customer service supported by broad branch network • Differentiated omnichannel experience Franchise • Diversified fee
Slide 13: Guidance
Guidance 2025 Guidance (Market Dependent) Original FY 2025 Guidance Q2 2025 Commentary for Q2 2025 Now expect 10%-11% YoY growth driven by fixed Net Interest Income 7%-9% increase for the year Updated asset repricing, loan growth and deposit balances $155 million - $160 million Now expect higher end
Slide 14: Footnotes
Footnotes Slide 3: 1- Fully taxable equivalent (“FTE”) net interest margin represents a non-GAAP financial measure. See the Corporation's earnings press release, Form 10-Q and Form 10-K filed with the U.S. Securities and Exchange Commission for the applicable periods for the GAAP to non- GAAP reconc
Slide 15: Appendix
Investor Presentation Second Quarter 2025 Appendix
Slide 16: Corporate Structure
Corporate Structure Franchise Summary Corporate Structure Industry Financial Services Headquarters San Juan, Puerto Rico Assets = $76 billion Assets $76 billion (among top 50 BHCs in the U.S.) Popular Holding Co. Banco Popular Popular’s North (including Popular de Securities Insurance America, equit
Slide 17: Q2 2025 vs. Q1 2025
Q2 2025 vs. Q1 2025 Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) Q2 2025 Q1 2025 Variance Q2 2025 Q1 2025 Variance Net interest income $ 538 $ 522 $ 16 $ 102 $ 93 $ 9 Provision for credit losses 42 54 (12) 6 11 (5) Net interest income after provision for credit losses 496 468 28 9
Slide 18: Loan Composition and Yields
Loan Composition and Yields Highlights: Loans Held-in-Portfolio Average • Loans held-in-portfolio increased $931 (ending balances, Yield million or 2.5%, compared to Q1 2025 $ in millions) Q2 2025 Q1 2025 Variance Q2 2025 (FTE) ⁻ The increase was primarily driven by Commercial $ 19,090 $ 18,566 $ 52
Slide 19: Deposit Composition and Costs
Deposit Composition and Costs Highlights: • Deposits at $67.2 billion in Q2 2025, with P.R. public deposits representing 31% of total deposits • Total deposit costs excluding P.R public deposits demonstrate the stability of core deposits, low cost and low betas • Total cost of deposits at 1.78%, dec
Slide 20: Deposit Beta
Deposit Beta • BPPR's retail and commercial accounts are low beta products and will react more slowly to changes in short-term interest rates • High beta P.R. public deposits represent 31% of total deposits • P.R. public deposits are linked to market rates but respond with a lag to changes in spot r
Slide 21: Investment Portfolio
Investment Portfolio Quarter Highlights: $ in millions Q2 2025 Variance to Q1 2025 • Conservative investment portfolio, with the majority Maturity / invested in short to intermediate U.S. Treasuries, Amortized % of Book Gain / 1 Amortized Gain / Description Cost Portfolio Value (Loss) Yield WAL Cost
Slide 22: Allowance for Credit Losses – Q2 2025
Allowance for Credit Losses – Q2 2025 ACL Movement: ACL Movement • Moody’s baseline forecast assumes a slowdown in ( $ in millions) economic activity for the U.S. in 2025 and 2026 $45 $769 $762 • Changes in the forecast of income-based variables as well as the U.S. unemployment rate contributed to h
Slide 23: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Highlights: Non-Owner Occupied CRE • Non-Owner Occupied CRE (CRE NOO) exposure mainly in ($ in millions) retail, hotels and office space $5,363 $5,541 $5,521 $5,005 $5,185 • Office exposure limited to 1.8% of total loan portfolio and 5,000 $2,117 $2,227 $2,191 $2,037
Slide 24: Multifamily Loan Portfolio
Multifamily Loan Portfolio Highlights: Multifamily Loans • 88% of the portfolio concentrated in Popular U.S. ($ in millions) $2,521 • Strong credit risk profile with low levels of delinquency, $2,385 $2,406 $2,400 $2,375 NCOs and classified loans: 2,500 $2,214 1.4% $2,080 $2,100 $2,092 $2,067 - 30-8
Slide 25: Auto Loan Portfolio
Auto Loan Portfolio Highlights: Delinquency Avg. 2011-2019 6/30/2025 ($in millions) • Improvements in credit quality of originations 6.17% 4.29% • Auto balances have steadily increased since the pandemic 4500 0.06 $3,773 $3,819 $3,821 $3,820 $3,862 $3,633 $3,661 $3,707 • Delinquency and NCOs at leve
Slide 26: Credit Card Portfolio
Credit Card Portfolio Highlights: Delinquency Avg. 2011-2019 6/30/2025 ($in millions) • Improvements in credit quality of originations 3.74% 4.01% • Balances continue to increase due to higher originations and increased usage post pandemic $1,218 $1,215 1400 0.06 $1,142 $1,163 $1,187 $1,188 $1,124 $
Slide 27: P.R. Personal Loan Portfolio
P.R. Personal Loan Portfolio Highlights: Delinquency Avg. 2011-2019 6/30/2025 ($ in millions) • Credit quality of originations remains strong 3.61% 2.70% • Portfolio balances have increased since the pandemic, but 2000 $1,763 $1,776 $1,746 $1,745 $1,754 $1,754 $1,756 $1,792 0.06 $1,686 at a slower p
Slide 28: P.R. Public Sector Exposure
P.R. Public Sector Exposure The Corporation does not own any loans issued by the P.R. central government or its public corporations. As of June 30, 2025, our direct exposure to P.R. municipalities amounted to $362 million, flat when compared to the prior quarter Municipalities Outstanding P.R. Secto
Slide 29: Popular's Credit Ratings
Popular’s Credit Ratings Senior Unsecured Senior Ratings Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 2019 2020 2021 2022 April April Moody’s June Moody's April September upgrades to Fitch upgrades upgrades to B1 S&P upgrades to Moody’s upgrades
Slide 30: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025