Popular, Inc. · NASDAQ:BPOP
Popular — Q2 2026 Earnings Presentation
34 slides from Popular's earnings presentation, Jul 23, 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026
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: Strategic Framework
Strategic Framework BE THE #1 BANK FOR OUR CUSTOMERS Meet customers where they are. We are their first choice, always one step ahead, fostering loyalty and deepening relationships at every stage of their lives, to drive growth BE SIMPLE AND EFFICIENT Deliver solutions faster, improve productivity, a
Slide 4: Q2 2026 Highlights
Q2 2026 Highlights Financial Highlights Quarter Highlights ($ in millions, except per share information) Income Statement Q2 2026 Q1 2026 Change Q2 2025 Highlights: Net Income $ 278 $ 246 $ 32 $ 210 • ROTCE of 17.02% vs. 15.46% in Q1 Net Interest Margin (NIM) 3.66% 3.66% - 3.49% • Net interest incom
Slide 5: Q2 2026 Business Highlights
Q2 2026 Business Highlights BPPR Popular U.S. ($ in millions) Q2 2026 Q1 2026 Change Q2 2025 ($ in millions) Q2 2026 Q1 2026 Change Q2 2025 Net Income $ 233 $ 204 $ 29 $ 185 Net Income $ 37 $ 37 - $ 23 Net Interest Margin 3.85% 3.85% - 3.68% Net Interest Margin 3.17% 3.15% 2 bps 2.93% Loans Held-in-
Slide 6: Financial Summary
Financial Summary Quarterly Results (unaudited) ($ in thousands, except EPS) Q2 2026 Q1 2026 Variance Net interest income $ 693,419 $ 670,180 $ 23,239 Provision for credit losses 65,873 75,886 (10,013) Net interest income after provision for credit losses $ 627,546 $ 594,294 $ 33,252 Banking fees 11
Slide 7: Net Interest Income and NIM Dynamics
Net Interest Income and NIM Dynamics Quarter Highlights: Earning Assets (ending balances, $ in billions) • Net interest income increased $23 million to $693 million $75.7 $72.8 $71.8 $72.1 $72.9 • Net interest margin unchanged at 3.66% 0.1 4 70.0 0 $39.3 $39.8 $38.2 • Net interest margin (FTE) expan
Slide 8: Non-Interest Income
Non-Interest Income Quarter Highlights: Change vs. • Non-interest income increased $15 million to Q1 Q2 $181 million ($ in millions) Q2 2026 Q1 2026 Variance Q2 2025 2026 2025 • Non-interest income increased 7% YoY Service charges on deposits $ 39.0 $ 38.8 $ 0.3 $ 38.8 1% 1% Debit card fees 31.5 30.
Slide 9: Operating Expenses
Operating Expenses Quarter Highlights: Change vs. • Operating expenses increased $17 million Q1 Q2 to $484 million: ($ in millions) Q2 2026 Q1 2026 Variance Q2 2025 2026 2025 ‐ Personnel costs increased $13 million Salaries $ 134.4 $ 134.8 $ (0.4) $ 132.8 - 1% driven by a $10 million accrual related
Slide 10: Capital
Capital Quarter Highlights: • Repurchased $125 million in common stock at an average price of Common Equity Tier 1 $150.36 in the quarter and paid quarterly common stock dividend 5.06% of $0.75 per share • Since resuming common stock repurchases in 2024, we have (1.24%) repurchased $1 billion in com
Slide 11: Non-Performing Assets
Non-Performing Assets Quarter Highlights: Non-Performing Assets • NPLs and NPAs in BPPR during the quarter were impacted by the ($ in millions) resolution of a $155 million commercial non-performing 600 $545 $541 $547 0.040000000 relationship: $504 0.035000000 500 ‐ resulted in a $71 million charge-
Slide 12: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses Quarter Highlights: • NCOs increased $44 million, driven by a $71 million charge-off associated with the sale of a $155 million non-performing loan, partially offset by lower consumer NCOs, mainly related to the auto portfolio. NCO Ratio increased 44 bps to 1.05%
Slide 13: Driving Value
Driving Value Market leader in Puerto Rico • Extensive customer base with 2.1 million customers • Solid deposit franchise and a well diversified loan portfolio • Distinct multichannel experience with top digital solutions and an unmatched branch network • Diversified business model, strong capital a
Slide 14: Guidance
Guidance 2026 Guidance Original FY 2026 Guidance Updated Guidance Commentary Net Interest Income 5%-7% increase for the year 8%-9% increase for the year Driven by higher volume of P.R. deposits Non-Interest Income $160 million - $165 million per quarter $165 million - $170 million per quarter Driven
Slide 15: Footnotes
Footnotes Slide 4: 1- Fully taxable equivalent (“FTE”) net interest margin (“NIM”) represents a non-GAAP financial measure. See the Corporation's earnings press release, Form 10-Q and Form 10-K filed, or to be filed, with the U.S. Securities and Exchange Commission for the applicable periods’ GAAP t
Slide 16: Appendix
Investor Presentation Second Quarter 2026 Appendix
Slide 17: Corporate Structure
Corporate Structure Franchise Summary Corporate Structure Industry Financial Services Headquarters San Juan, Puerto Rico Assets = $79 billion Assets $79 billion (among top 50 BHCs in the U.S.) Holding Co. Banco Popular’s Popular Popular (including Popular de Insurance North Securities LLC equity Pue
Slide 18: Q2 2026 vs. Q1 2026 Business Segments
Q2 2026 vs. Q1 2026 Business Segments Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) Q2 2026 Q1 2026 Variance Q2 2026 Q1 2026 Variance Net interest income $ 590 $ 568 $ 22 $ 113 $ 112 $ 1 Provision for credit losses 63 74 (11) 3 3 - Net interest income after provision for credit los
Slide 19: Loan Composition and Yields
Loan Composition and Yields Highlights: Loans Held-in-Portfolio Average • Loans held-in-portfolio increased by $460 (ending balances, Yields million driven by growth across most $ in millions) Q2 2026 Q1 2026 Variance Q2 2026 (FTE) portfolios in BPPR and commercial loans in Commercial $ 20,051 $ 19,
Slide 20: Funding Profile and Deposit Composition
Funding Profile and Deposit Composition Highlights: Funding Sources • Deposits at $70.2 billion in Q2, with P.R. public deposits at $22.7 (ending balances, $ in billions) billion, representing 32% of total deposits $1.5 • Total deposit costs, excluding P.R. public deposits, demonstrate the stability
Slide 21: 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 32% of the total deposits • P.R. public deposits are linked to market rates but respond with a lag to changes in th
Slide 22: Investment Portfolio
Investment Portfolio Quarter Highlights: $ in millions Q2 2026 Variance to Q1 2026 Maturity / • Conservative investment portfolio, with the majority Description Amortized Cost % of Portfolio Book Value Gain / (Loss) Yield WAL1 Amortized Cost Gain / (Loss) invested in short to intermediate U.S. Treas
Slide 23: Allowance for Credit Losses – Q2 2026
Allowance for Credit Losses – Q2 2026 ACL Movement: ACL Movement • Moody’s baseline forecast shows a reduction in 2026 ($ in millions) U.S. economic growth influenced by geopolitical 830 $824 conflicts 810 $5 $785 • NCOs for the quarter were impacted by a $71 million $14 790 770 $46 charge-off for a
Slide 24: Commercial and Industrial Portfolio
Commercial and Industrial Portfolio Highlights: Commercial and Industrial Portfolio ($ in millions) • The Commercial and Industrial (“C&I”) portfolio is mainly $8,238 $8,598 $8,555 $8,774 9,000 $8,037 6.2% concentrated in the following industries: Other services 8,000 $2,637 $2,625 $2,611 (mostly U.
Slide 25: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Highlights: Non-Owner Occupied CRE • Non-Owner Occupied CRE (CRE NOO) exposure mainly in ($ in millions) $5,621 retail, hotels and office space $5,521 $5,463 $5,543 $5,543 • Office exposure limited to 1.7% of total loan portfolio and 5,000 $2,191 $2,160 $2,148 $2,151
Slide 26: Multifamily Loan Portfolio
Multifamily Loan Portfolio Highlights: Multifamily Loans • 86% of the portfolio concentrated in Popular U.S. ($ in millions) $2,521 $2,521 $2,456 • Strong credit risk profile with low levels of delinquency, 2,500 $2,427 $2,399 NCOs and classified loans $2,214 $2,187 $2,152 $2,084 1.6% $2,053 • New Y
Slide 27: P.R. Mortgage Loan Portfolio
P.R. Mortgage Loan Portfolio Highlights: • 45% of the P.R. mortgage loan portfolio is comprised of U.S. government guaranteed loans • Over the last five years, origination average FICO scores above 750 and LTV approximately 70% • Delinquency and NCOs levels for the period remained below the historic
Slide 28: Auto Loan Portfolio
Auto Loan Portfolio Highlights: Delinquency Avg. 2011-2019 06/30/2026 • Auto balances have remained stable, with recent quarter- ($ in millions) 6.17% 4.00% over-quarter declining trend • Delinquency and NCO levels for the period remained 4500 0.07 4000 $3,773 $3,819 $3,821 $3,820 $3,862 $3,851 $3,8
Slide 29: Auto Lease Portfolio
Auto Lease Portfolio Highlights: Delinquency Avg. 2011-2019 06/30/2026 • Auto lease balances have grown steadily, but have ($ in millions) 2.06% 1.78% declined in the most recent quarter 2500 0.06 • Delinquency and NCO levels for the period below the $1,925 $1,950 $1,983 $1,999 $2,001 $1,986 $1,968
Slide 30: P.R. Personal Loan Portfolio
P.R. Personal Loan Portfolio Highlights: Delinquency Avg. 2011-2019 06/30/2026 • Portfolio balances stable but growing at a slower pace ($ in millions) 3.61% 2.38% since 2024 due to credit tightening measures • Delinquency below the historical average benchmark 250 0 0.05 • NCO levels for the period
Slide 31: Credit Cards Portfolio
Credit Cards Portfolio Highlights: Delinquency Avg. 2011-2019 06/30/2026 • Overall balances have generally trended upward ($ in millions) 3.74% 3.55% • Delinquency has followed an overall improving trend, declining below historical benchmark in Q2 1400 $1,257 $1,214 $1,238 0.06 $1,187 $1,218 $1,188
Slide 32: P.R. Public Sector Exposure
P.R. Public Sector Exposure • Substantially all the Corporation’s direct exposure outstanding in Q2 were obligations from various Puerto Rico municipalities. As of June 30, 2026, our direct exposure outstanding to P.R. municipalities amounted to $415 million, increasing by $74 million from the prior
Slide 33: Popular's Credit Ratings
Popular’s Credit Ratings Senior Unsecured Senior Ratings Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Positive Outlook Moody’s Ba1 Positive Outlook 2019 2020 2021 2022 2025 2026 April April Moody’s June Moody's upgrades to Fitch upgrades upgrades to B1 May March Ba3 from B1 to BBB- from April
Slide 34: Investor Presentation Second Quarter 2026
Investor Presentation Second Quarter 2026