Slide 1: First Quarter 2011 Financial Results
First Quarter 2011 Financial Results April 25, 2011
Slide 2: Forward Looking Statements
1 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 Ref
Slide 3: Q1 2011 Highlights
Q1 2011 Highlights 2 Net income of $10.1M or EPS of $0.01 Non-performing loans in the P.R. mortgage and commercial loan portfolios increased slightly P.R. Construction portfolio sale not finalized; negotiations are ongoing Global events and the rise in oil prices may have a negative impact on the P.
Slide 4: Significant Quarterly Events
Significant Quarterly Events 3
Slide 5: Puerto Rico Economic Update
4 Puerto Rico Economic Update BPPR-Index of Real Economic Activity - Annualized Rate Employment, Unemployment and Labor Force Sources: Puerto Rico Labor Department, U.S. Labor Bureau, P.R. Government Development Bank, Consultec and Puerto Rico Commerce and Export Agency In thousands Government actio
Slide 6: Financial Results
5 Financial Results 1 Unaudited $ in thousands (except per share data) $ in thousands (except per share data) $ in thousands (except per share data) Q1 20111 Q4 20101 Net Interest Income $343,359 $354,575 Service fees & Other Oper. Income 143,691 126,080 FV Adjustment FDIC Equity Appreciation 7,745
Slide 7: P.R. Business
6 P.R. Business Q1 net income of $107M excluding the extraordinary DTA charge of $103M Lower operating expenses due to a reduction in provision for unused commitments, personnel, professional fees and advertising expenses compared to Q4 2010 Provision for loan losses declined due to provision in Q4
Slide 8: U.S. Business
7 U.S. Business $ in millions Q1 11 Q4 10 Net Interest Income $75 $78 Non Interest Income 17 9 Gross Revenue 92 87 Provision for loan losses (8) (158) Expenses (61) (92) Tax Expense 1 1 Net Income (Loss) $22 ($164) NPLs (HTM) $438 $460 NPLs (HTM + HFS) 450 658 Loan loss reserve 304 338 Assets $8,976
Slide 9: Credit Quality Overview - Q1
Credit Quality Overview- Q1 Non-Performing Loan Inflows- BPPR Excludes WB Covered Loans & LHFS 8 Excluding LHFS, NPLs to total loans rose .33% ($63M) to 7.91%: Mortgage NPLs increased by $57M, related to PR portfolio Commercial NPLs up by $27M; $41M from PR offset by a U.S. decline ALLL declined in
Slide 10: Capital Ratios
9 Capital Ratios () *Capital ratios as of 3-31-2011 are estimated 1 See the earnings press release for reconciliation of Common Stockholders Equity (GAAP) to Tier 1 Common Equity (Non-GAAP). 1 Improved Capital Ratios reflect: Reduction in DTA Balance Sheet composition Internal capital generation Q1
Slide 11: Popular, Inc. - Recap & Outlook
Credit Issues The sale of NCM loans in the US business was completed P.R. Construction sale still pending Closely monitoring P.R. mortgage and commercial portfolios Credit metrics improving P.R. economy BPNA continues to make significant progress The company returned to profitability in Q1, and we a
Slide 12: Popular
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