Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2019 Earnings Presentation
20 slides from Popular's earnings presentation, Apr 18, 2019
Slide 1: Investor Presentation First Quarter 2019
Investor Presentation First Quarter 2019 Exhibit 99.2
Slide 2: 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. These statements are not guarantees of future performance, are based on the current expectations of Popular, Inc.’s (the “Corporation”) management and, by their na
Slide 3: Q1 2019 Highlights
NPLs decreased by $25 million QoQ; ratio at 2.2% NCO ratio decreased to 0.92% from 1.63% the previous quarter Credit Metrics Net income of $167.9 million Strong margins: Popular, Inc. 4.20%, BPPR 4.49% Earnings Robust capital; Common Equity Tier 1 Capital ratio of 16.4% Tangible book value per share
Slide 4: Puerto Rico – Key Indicators
Puerto Rico – Key Indicators Net Passenger Movement 2018: net movement of +77,000 2017: net movement of -257,000 Total Employment 1% higher YoY (as of Feb 2019) Unemployment Rate 8.5% in Feb 2019 down from 10.3% in Feb 2018 New Auto Sales Q1 2019: 12% higher than Q1 2018 Cement Sales Q1 2019: 4% low
Slide 5: Financial Summary (GAAP)
Financial Summary (GAAP)1 1 See slide 6 for Q4 2018 adjusted Non-GAAP results 5
Slide 6: GAAP Reconciliation
GAAP Reconciliation1 1 Refer to the Corporation's Q1 2019 earnings release for more detailed information
Slide 7: Loan and Deposit Data
Loan and Deposit Data Q1 2019 net interest margin at 4.20% Strong loan yield at 6.83%, tracking the recent increases in market rates Low deposit betas in P.R. Total deposit cost increased 6 basis points to 71 basis points in Q1 2019 Continued growth of the loan portfolio 5-year compounded growth rat
Slide 8: Capital
Popular, Inc. (%) Capital Note: Estimated for the current period Q1 2019 capital actions: Executed a $250 million accelerated share repurchase agreement Increased quarterly dividend to $0.30 per share Robust capital levels; Common Equity Tier 1 of 16.4% Tangible book value per share of $48.58 compar
Slide 9: P.R. Public Sector Exposure – Municipalities
Municipalities Obligations of municipalities are backed by real and personal property taxes, municipal excise taxes, and/or a percentage of the sales and use tax. Indirect exposure includes loans or securities that are payable by non-governmental entities, but which carry a government guarantee to c
Slide 10: Non-Performing Assets
Non-Performing Assets ($ in millions) Non-Performing Assets Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding Non-Performing Loans ($ in millions) Highlights NPAs decreased by $36 million QoQ NPLs decreased by $25 million QoQ P.R. NPLs at $545 mi
Slide 11: NPL Inflows
NPL Inflows Total NPL Inflows ($ in millions) Mortgage NPL Inflows ($ in millions) Commercial, Construction and Legacy NPL Inflows ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding Highlights Total NPL inflows decreased by $13 mil
Slide 12: NCOs, Provision and ALLL Metrics
NCOs and NCO-to-Loan Ratio ($ in millions) Provision and Provision-to-NCO Ratio ($ in millions) Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding ALLL, ALLL-to-NCO and ALLL-to-NPLs Ratios ($ in millions) Additional Credit Metrics Highlights NCO r
Slide 13: Driving Shareholder Value
Driving Shareholder Value Capital Robust capital with Common Equity Tier 1 Capital of 16.4% Tangible book value per share of $48.58 Continued capital strategy implementation Franchise Additional Value Investments in Evertec and Banco BHD León Puerto Rico Uniquely poised to take advantage of improvin
Slide 14: First Quarter 2019 Appendix
Investor Presentation First Quarter 2019 Appendix
Slide 15: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $39 billion Assets = $10 billion Puerto Rico Operations United States Operations Assets = $49 billion Corporate Structure – Popular, Inc. Information as of March 31, 2019 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León
Slide 16: De-Risked Loan Portfolios
De-Risked Loan Portfolios Differences due to rounding ($ in millions) Highlights 1 Small and Medium Enterprise 2 NCOs distribution represents the percentage allocation of net charge-offs from Q1 2008 through Q1 2019 per each loan category, excluding net charge-offs from previously covered loans up t
Slide 17: Business Segments (GAAP)
Business Segments (GAAP) ¹ Non-fully taxable equivalent Differences due to rounding
Slide 18: Consolidated Credit Summary
Consolidated Credit Summary 1 Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding
Slide 19: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings 9 Our senior unsecured ratings have remained stable Moody’s B2 Stable Outlook Fitch BB- Stable Outlook S&P BB- Positive Outlook February Moody’s changes outlook to stable from negative April S&P upgrades to BB- from B+ revised outlook to stable 2017 February S&P placed B
Slide 20: First Quarter 2019
Investor Presentation First Quarter 2019