Slide 1: Financial Results Third Quarter 2012
Exhibit 99.1 Financial Results Third Quarter 2012
Slide 2: Forward Looking Statements
Forward Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and involve risks and uncertaintie
Slide 3: Highlights Q3 2012
Highlights Q3 2012 • Net income totaled $47 million Earnings • Net interest margin of 4.37%; BPPR margin of 5.11% • Reaffirming 2012 net income guidance range of $210 million to $225 million • Non performing loans held for sale declined by $70 million from Q2; Credit down $151 million YoY (excluding
Slide 4: Key Areas of Shareholder Focus
Key Areas of Shareholder Focus Credit • Reducing non-performing loans Total NPLs held in portfolio down $187 million YTD Mortgage: – Approximately 200 modifications per month in Puerto Rico mortgage portfolio, of which more than 75% percent are performing a year after Commercial & Construction: – NP
Slide 5: Fundamental Strengths
Fundamental Strengths Puerto Rico Franchise Strong Capital Base Additional Sources of EVERTEC: Book value of $62 million on 49% ownership; Adjusted EBITDA Value of $79.4 million for the first 6 months of 2012 BHD: Book value of $73 million on 20% ownership; approximately $100 million of net income i
Slide 6: Financial Results (Unaudited)
FinancialResults(Unaudited) In thousands, except per share amount Q3 2012 Q2 2012 Variance Net interest income $343,426 $341,200 $2,226 Service fees & other oper. income 114,840 119,576 (4,736) Gain (loss) on sale of investments, loans & trading 7,576 (28,427) 36,003 Total revenues before FDIC incom
Slide 7: Capital
Capital • Ended Q3 at 12.72% CET1 with $1.8 billion excess capital over well capitalized threshold • ProposedBaselIII regulationswill reducethe rate of growth of our excessregulatorycapital,but a dynamic simulation shows it should remain above the current excess level • Simulation assumptions: net i
Slide 8: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Continued improvement in key credit quality Loans ($ M) Q3 12 Q2 12 Q3 12 v Q2 Q3 11 Q3 12 v Q3 metrics: 12 11 Commercial $9,629 $9,603 $26 $9,989$ (360) Construction 258 250 9 253 5 • Non performing loans held for sale Legacy * 466 510 (44) 723
Slide 9: Credit Quality Overview (Excluding Covered Loans)
Credit Quality Overview (Excluding Covered Loans) Commercial & Construction NPL Inflows ($M) • NCOs declined for the fourth consecutive quarter to $96 million $350 • NCO ratio under 2% for the second $300 -45% $174 $250 ($115M) consecutive quarter $200 $149 $133 $116 • Total commercial and construct
Slide 10: Credit Quality Overview (Excluding Covered Loans)
Credit Quality Overview (Excluding Covered Loans) Provision ($M) and Provision-to-NCO Ratio Provision increased slightly to $84 111% million $151 98% 83% 87% 76% PR provision increased by $3.3 $124 million driven by higher net $83 $82 $84 charge-offs in the commercial loan portfolio US provision dec
Slide 11: Taking actions to leverage strengths and drive value
Taking actions to leverage strengths and drive value Strengths • Premier Puerto Rico franchise • Capital ratios well in excess of regulatory requirements • Additional sources of value Actions to • Continue to reduce non-performing assets Drive Value • Continue efficiency efforts • Repay TARP at appr
Slide 12: Appendix
Appendix
Slide 13: P.R. Economic Overview
P.R. Economic Overview • Official forecast calls for first positive GNP growth since 2005. Forecast is +0.9% (fiscal 2012) and +1.1% (fiscal 2013) • In the lastseveralquarters,indicatorssuchasretailandauto sales,homesales,cementsalesandsales& use tax, among others show stabilization Recent Trends GD
Slide 14: Who We Are – Popular, Inc.
Who We Are –Popular, Inc. Franchise Summary Corporate Structure • Financial services company • Headquartered in San Juan, Puerto Rico Assets = $36.5 bn Puerto Rico operations • $37 billion in assets (top 50 bank holding company in the U.S.) Banco Popular de Puerto Rico Popular Securities, Inc. Popul
Slide 15: P.R. Franchise Value Built Over Years
P.R. Franchise Value Built Over 119 Years • Indisputable, sustained market leadership MarketShareTrend(2002 –2012) 50% Total Deposits (Net of Brokered) Total Loans 40% 30% 20% Source: Puerto Rico Office of the Commissioner 10% of Financial Institutions 0% Category Market Position as of Market Share
Slide 16: PR & US Business
PR & US Business PR US $ in millions (Unaudited) Q3 12 Q2 12 Variance Q3 12 Q2 12 Variance Net Interest Income $300 $298 $2 $70 $70 ($0) Non Interest Income 114 85 29 11 15 (4) Gross Revenues 414 383 31 81 85 (4) Provision (non-covered) 69 66 3 14 15 (1) Provision (covered WB) 23 38 (15) - - - Provi
Slide 17: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) Q3 12 vs Q2 12 Q3 12 vs Q3 11 $ in millions Q3 12 Q2 12 % Q3 11 % Loans Held to Maturity (HTM) $20,754 $20,666 $88 0.4% $20,674 $80 0.4% Performing HFS 228 186 42 22.6% 109 119 109.2% NPL HFS 109 179 (70) -39.1% 260 (151) -58.1% Total Non Covered
Slide 18: Credit Ratings Update
Credit Ratings Update • Our senior unsecured ratings have been gradually improving since 2010: Moody’s: Ba1 Negative Watch S&P: B+ Stable Outlook Fitch: B+ Positive Outlook • July 2011: S&P raised our senior unsecured rating by one notch to B+ • December 2011: S&P raised its ratings on BPPR to BB fr
Slide 19: Financial Results Third Quarter 2012
Financial Results Third Quarter 2012