Popular, Inc. · NASDAQ:BPOP
Popular — Investor Presentation (January 2005)
23 slides from Popular's investor presentation, Jan 31, 2005
Slide 1: Brean Murray Securities, Inc. Investor Presentation
Brean Murray Securities, Inc. Investor Presentation February 1, 2005 EXHIBIT 99.1
Slide 2: Forward Looking Statements
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 Refor
Slide 3: Compelling Investment Opportunity
COMPELLING INVESTMENT OPPORTUNITY Pan-American financial institution with market share dominance and strong brand recognition Strong growth fundamentals and market demographics Diverse revenue sources Strong management team Stock trades at discount to U.S. peers
Slide 4: Best in Class Returns to Shareholders
Note: All calculations from 12/31 to 12/31/04 including dividend and dividend reinvestments Best in Class Returns to Shareholders Stock Price Appreciation Total Return Including Dividend 1,198% 469% 291%
Slide 5: Reported Historical EPS
REPORTED HISTORICAL EPS (US $) * Based on IBES consensus estimates Ten-Year CAGR: 14.76% Projected Long-Term Growth of 12% vs. Peer Median of 10%* Projected Long-Term Growth of 12% vs. Peer Median of 10%*
Slide 6: Popular at a Glance
POPULAR AT A GLANCE Founded in 1893 Diversified financial services and transactions processing company. Operations in Puerto Rico, the Caribbean, the mainland United States and Central America. Largest Puerto Rican financial institution and 4th largest bank in Latin America. Largest Hispanic bank in
Slide 7: Popular's Strategic Objectives
POPULAR'S STRATEGIC OBJECTIVES POPULAR'S STRATEGIC OBJECTIVES Puerto Rico Strengthen our competitive position in our main market by offering the best and most complete financial services in an efficient and convenient manner. Our services will respond to the needs of all segments of the market in or
Slide 8: Puerto Rico Highlights
PUERTO RICO HIGHLIGHTS 2003 Gross domestic product (GDP) $74.4 billion - (1.9% growth) Distribution of GDP: Manufacturing 33% - Government 28% - Services 25% Tourism 7% - Construction 7% Population - 3.9 million (2003 estimate) Puerto Rico is subject to the U.S. Judicial system and courts Nationalit
Slide 9: Banco Popular de Puerto Rico
BANCO POPULAR DE PUERTO RICO Leading financial institution on the island Largest banking network with 192 local branches 23.6% market share in loans (09/30/04) 32.4% market share in deposits (9/30/04)* $23.8 billion in assets as of 12/31/04 $13.7 billion in deposits as of 12/31/04 4,908 employees as
Slide 10: Non-Banking Subsidiaries
Non-Banking Subsidiaries as of 12/31/04 PUERTO RICO FORTRESS PUERTO RICO FORTRESS $21.8 MM Annual Revenues 2 Offices & Presence at some BPPR branches 166 Employees $1.4 Billion Annual Originations in 2004 $1,054 Million in Total Assets 30 Offices 446 Employees $7.4 Billion in Deals during 2004 $4.2
Slide 11: United States Mainland Operations
UNITED STATES MAINLAND OPERATIONS Popular operates 128 banking branches on the mainland in NY, CA, TX, NJ, FL and IL (including 8 branches from Kislak acquisition), 181 Popular Financial Holding (Equity One) offices in 26 states, 120 Popular Cash Express stores in 6 states and 15 leasing offices in
Slide 12: Popular Targets the Faster Growing Markets in the U.S.
Popular Targets the Faster Growing Markets in the U.S. Growth in Hispanic Population** (in millions) NY Metro Chicago and Area Southern California Florida Texas * Claritas projections for 2006 ** Census Bureau figures Popular is a Differentiated Play Driven by Dramatic Growth in the Hispanic Populat
Slide 13: Processing
PROCESSING Popular is a leader in electronic data processing throughout the Caribbean Basin... throughout the Caribbean Basin... throughout the Caribbean Basin... Serving clients in: Puerto Rico United States Dominican Republic Costa Rica Venezuela Haiti El Salvador Honduras Bermuda Belize Nicaragua
Slide 14: Processing Strategy
PROCESSING STRATEGY Build EVERTEC into a full service 3rd party provider with a dominant presence in the Caribbean basin and significant penetration of the small business merchant processing and US community banking niches. Expand Popular's 20 years of experience in ATH/POS Networks to Central Ameri
Slide 15: Continuing Diversification
Continuing Diversification Continuing Diversification Continuing Diversification Revenues by Geographical Area 2004* 1999 Net Income by Business Line 2004* 1999 The "Other" category includes all holding companies and non-banking subsidiaries which provide insurance agency services and reinsurance, r
Slide 16: Pan-American Revenue Growth
Pan-American Revenue Growth * Revenues exclude $19.7 and $18.7 million in derivative losses for 2001 and 2002, respectively. Seven-Year CAGR (1998 - 2004): 19.15% ($ Millions) ($ Millions) * *
Slide 17: Solid Financial Performance
* Taxable equivalent Solid Financial Performance Net Interest Margin* Return on Equity Popular Peers** **Peers as of 09/30/04 **Peers as of 09/30/04 **Peers as of 09/30/04 **Peers as of 09/30/04
Slide 18: Increasing Non-Interest Income
Increasing Non-Interest Income All figures for the quarter ended 12/31/04 ($ thousands) Total Non-Interest Income: $608.8 million 5 Year CAGR 1999 - 2004: 10.30%
Slide 19: Loan Portfolio
Total Loans: $28.7 billion (65% of total assets as of 12/31/04) 5 Year CAGR 1999 - 2004: 14.03% Loan Portfolio All figures as of 12/31/04 All figures as of 12/31/04
Slide 20: Asset Quality
Asset Quality (1) Asset Quality (1) (1) Ratios assuming standard industry practice (2) In 2002, 2003 & 2004, residential mortgages represented 48%, 51% and 64% of NPA, respectively. Recalculating Credit Quality Ratios Excluding Residential Mortgages and FASB 114 Assets Mortgages and FASB 114 Assets
Slide 21: Funding Composition
Funding Composition Deposit Composition** Total Funding Composition* *Figures as of 12/31/04 **Figures as of 9/30/04 **Figures as of 9/30/04 **Figures as of 9/30/04
Slide 22: Capital Position
All figures as of 9/30/04 Leverage Tier 1 Total Capital 8.91 7.12* 5.00 10.62 11.79 12.09 10.00 6.00 8.00 4.00 4.00 7.42 Capital Position *7.97% if normalizing Investment Portfolio to 21% of Assets
Slide 23: Popular Represents a Compelling Opportunity for Investors
Popular Represents a Compelling Opportunity for Investors Seeking a Growth Financial Services Company Strong Growth Fundamentals and Market Demographics Pan-American Financial Institution With Market Share Dominance & Strong Brand Recognition Diverse Revenue Sources Strong geographic diversification