Slide 1: Investor Presentation Third Quarter 2022
INVESTOR PRESENTATION Third Quarter 2022 Exhibit 99.2
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. These statements are not guarantees of future performance, are based on the current expectations of Popular, I
Slide 3: Q3 2022 Highlights
NPLs decreased $25 million QoQ; NPL ratio at 1.4% vs. 1.6% in Q2 2022 NCO ratio at 0.24% compared to 0.08% the previous quarter ACL-to-NPL ratio at 155% vs. 143% in Q2 2022 Credit Metrics Net income of $422 million; excluding the impact of the Evertec transactions, net income was $196 million Net in
Slide 4: Business Metrics
Business Metrics Popular, Inc.: Loan growth for the quarter was $1.2 billion ($807 million in P.R. and $346 million in the U.S.) BPPR: Commercial loans increased $489 million or 6% from Q2 2022 Auto and lease financing portfolio increased $97 million or 2% from Q2 2022 Mortgage originations were 36%
Slide 5: Economy – Puerto Rico Key Indicators
Economy 1 Source: United Automobile Importers Group (based on units) as of September 2022; 2 Source: Puerto Rico Economic Development Bank, as of August 2022; 3 Source: U.S. Bureau of Labor Statistics (Seasonally Adjusted) as of August 2022; 4 Credit and debit card sales pertain to BPPR customers on
Slide 6: Financial Summary
Financial Summary poputar. (Unaudited) ($ in thousands) Q3 2022 Q22022 Variance Net interest income $ 579619 $ 533,862 $ 45,757 Service charges on deposits 40,006 41,809 (1,803) Other service fees 86,402 81,451 4951 Mortgage banking activities 9,408 13,575 (427) Other non-interest income 290,638 20,
Slide 7: Net Interest Margin Dynamics
Money Market and Investment Securities ($ in billions)² ¹ FTE stands for fully taxable-equivalent basis. Represents a non-GAAP financial measure. See the Corporation’s earnings press release, Form 10Q and Form 10K filed with the Securities and Exchange Commission for the applicable periods for a GAA
Slide 8: Deposit Mix and Historical Betas
Deposit mix has shifted in recent years; P.R. public sector deposits now account for 27% of total deposits Retail and commercial betas have historically been low, but they now represent a lower proportion of total deposits Public sector betas are expected to increase as the lagged effects of short-t
Slide 9: Investment Portfolio
Investment Portfolio Conservative investment portfolio, with the majority invested in short to intermediate U.S. Treasuries, which are tax exempt for P.R. corporations Rapid rise in interest rates increased unrealized losses quarter-over-quarter; expect to fully recover these unrealized losses as th
Slide 10: Robust regulatory capital levels
Robust regulatory capital levels Common Equity Tier 1 of 16.0% Leverage ratio of 7.7% impacted by the high proportion of zero-risk weighted assets on the balance sheet, which represented 42% of total assets Q3-2022 capital actions: Acquired key customer channels from Evertec, amended commercial cont
Slide 11: Non-Performing Assets
Non-Performing Assets* NPAs and NPLs decreased by $23 million and $25 million QoQ, respectively NPL inflows increased by $6 million QoQ, driven by an $11 million U.S. healthcare relationship P.R. NPLs at $410 million, or 1.8% of loans, down by $35 million, driven by lower mortgage and commercial NPL
Slide 12: NCOs and Allowance for Credit Losses
NCOs and NCO-to-Loan Ratio ($ in millions) Differences due to rounding NCOs amounted to $18 million, increasing by $12 million QoQ BPPR’s NCOs at $18 million, increasing by $13 million QoQ, driven by higher auto loan NCOs PB’s NCOs remained flat QoQ NCO ratio at 0.24% vs. 0.08% in Q2 2022 ACL at $70
Slide 13: ACL Movement
Differences due to rounding ACL Movement: Moody’s August 2022 vintage continues to show a positive economic scenario although 2022 GDP growth for the U.S. was revised downward Reduction in ACL due to continued strength in P.R. employment levels Qualitative Reserves and Portfolio Changes are mainly i
Slide 14: 2022 Capital Actions and Franchise Additional Value
2022 Capital Actions Acquired key customer channels from Evertec, amended commercial contracts and subsequently sold the entire ownership stake in Evertec Completed the previously announced $400 million ASR Entered into an additional ASR agreement to repurchase an aggregate of $231 million of common
Slide 15: Third Quarter Appendix 2022
INVESTOR PRESENTATION Third Quarter Appendix 2022
Slide 16: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $60 billion Assets = $11 billion Puerto Rico Operations United States Operations Assets = $71 billion Information as of September 30, 2022 ¹ Doing business as Popular Selected equity investments Banco BHD León under Corporate segment Dominican Republic
Slide 17: Business Segments
Differences due to rounding Business Segments
Slide 18: 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 co
Slide 19: FICO Mix of Consumer Originations
FICO Mix of Consumer Originations
Slide 20: Popular Inc. Credit Ratings
Senior Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 May Fitch revised outlook to Positive 2019 April Moody's upgrades to B1 from B2 S&P revised outlook to Positive May Fitch upgrades to BB from BB- 2020 March S&P lowers outlook to Stable 2021 Mar
Slide 21: Third Quarter 2022
INVESTOR PRESENTATION Third Quarter 2022