Popular, Inc. · NASDAQ:BPOP
Popular — Investor Presentation (July 2007)
23 slides from Popular's investor presentation, Jul 30, 2007
Slide 1: Investor Presentation As of June 30, 2007
Investor Presentation As of June 30, 2007
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: Popular at a Glance
POPULAR AT A GLANCE Founded in 1893 Diversified financial services and transaction processing company. Operations in Puerto Rico, the Caribbean, the mainland United States and Central America. 36th largest U.S. bank holding company in assets (as of 3/31/07). Popular, Inc. and its related subsidiarie
Slide 4: Popular's Strategic Objectives
POPULAR'S STRATEGIC OBJECTIVES Continue to deliver best in class returns to our shareholders 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 a
Slide 5: Puerto Rico Highlights 2006
PUERTO RICO HIGHLIGHTS 2006 Source: Government Development Bank of Puerto Rico and Bloomberg Professional System *Finance, insurance, and real estate Economy Economy Economy Economy 2006 2005 % Economic Activity Index 135.80 138.60 -2.02% GNP billions 56.69 53.60 5.76% GDP billions 86.46 82.65 4.61%
Slide 6: Puerto Rico Economic Update
PUERTO RICO Economic Update PUERTO RICO Economic Update Source: Planning Board of Puerto Rico Puerto Rico is currently in recession. Consumers have been affected by deteriorating confidence, higher oil prices and taxes, and a difficult political environment. The Puerto Rico Government's fiscal situa
Slide 7: Banco Popular de Puerto Rico Leading Market Share
BANCO POPULAR DE PUERTO RICO Leading Market Share 3/31/07 23.09% in loans* 34.35% in deposits** As of 6/30/07: $24.6 billion in assets $15.6 billion in deposits 4,887 employees * Net of unearned income ** Excludes brokered deposits Leading financial institution on the island with 189 local branches
Slide 8: Non-Banking Subsidiaries as of 6/30/07
Non-Banking Subsidiaries as of 6/30/07 PUERTO RICO FORTRESS YTD 2007 Revenues - $11.8 Million 1 Office & presence at some BPPR branches 159 Employees YTD 2007 Originations - $778.6 Million $1,549 Million in Total Assets 32 Mortgage Centers 470 Employees YTD 2007 Deals - $4.7 Billion $4.1 Billion Ass
Slide 9: United States Mainland Operations
UNITED STATES MAINLAND OPERATIONS US Distribution System: Banco Popular North America: 144 branches in NY, CA, TX, NJ, FL and IL; Popular Financial Holdings: 137 offices in 16 states. Popular Equipment Finance: 14 offices in 13 states. 14 offices in 13 states. 14 offices in 13 states. 14 offices in
Slide 10: U.S. Banking and Non-Banking Operations
Non-Banking Operations Banking Operations California $3.3B Total Assets 50 Branches 345 Employees Florida $1.9B Total Assets 20 Branches 343 Employees Texas $1.7B Total Assets 7 Branches 153 Employees Illinois $2.0B Total Assets 20 Branches 530 Employees New York/New Jersey $4.0B Total Assets 47 Bra
Slide 11: Processing Strategy
PROCESSING STRATEGY Over 20 years of experience in ATH/POS Networks to Latin America Penetrate the U.S. market focusing on financial transaction processing and merchant processing Invest significantly in new technology developments Main initiatives $120M revenues as of 6/30/07 Over 900M transactions
Slide 12: Net Income Growth
Ten-Year CAGR (1996 - 2006): 6.80%2 Five-Year CAGR (2001 - 2006): 3.27% Net Income Growth (In Millions $) 1 Include securities net gains of $15.3M, $52.1M & $4.4M, respectively. 2 6.67% excluding securities gain. 3 Analyst Estimates for 2007 1 1 1 3
Slide 13: Line of Business - Net Income
Line of Business - Net Income (In thousands $) Notes: PFH figures include E-Loan up to 4Q 06. Includes $20 million restructuring charges in 4Q 06 and $15.1M in 1Q 07.
Slide 14: Financial Performance Ratios
(1) Non-interest expense divided by net interest income plus non-interest income (Excludes gain/losses on sale and valuation adjustments of securities and non-recurring income such as gain on the sale of real estate). (2) Taxable equivalent Financial Performance Ratio 12/31/05 12/31/06 6/30/07 Ratio
Slide 15: Total Loans as of 6/30/07
Total Loans as of 6/30/07: $32.8 billion (70% of total assets as of 6/30/07) 5 year CAGR 2002-2007: 10.83% 3 year CAGR 2004-2007: 4.45% Loan Portfolio ($ in millions) * * As of 6.30.07
Slide 16: Asset Quality
Asset Quality Ratio 12/31/05 12/31/06 3/31/07 Ratio Quarter Quarter Quarter Allowance to Loans 1.88% 1.87% 1.92% Non-Performing Loans to Loans .48 .54 .54 Allowance to Non-Performing Loans to Loans 392.65 343.38 357.37 All ratios exclude loans held for sale. (1) In 2004, 2005 & 2006, residential mor
Slide 17: Interest Only Strips and Mortgage Servicing Rights
Interest Only Strips ("IO's") and Mortgage Servicing Rights ("MSR's") Balances of IO's and MSR's for the following periods were: ($ thousands) 6/30/06 6/30/07 IO's $74,769 $38,264 MSR's $155,243 $197,872 Total $230,012 $236,136
Slide 18: Diversified Funding Sources
Diversified Funding Sources Total Funding Composition Total=$25.4 Billion* Deposit Composition Total=$46.2 Billion * $1.5B received thru E-Loan.
Slide 19: Increasing Non-Interest Income
Increasing Non-Interest Income ($ in millions) * Excludes gain on sale of investment securities and valuation adjustment. Total Non-Interest Income for 2006: $805.2* million 5 Year CAGR 2001 - 2006: 11.29% 3 Year CAGR 2003 - 2006: 13.21%
Slide 20: Strong Capital Position
Strong Capital Position 3/31/07 Average TCE of A rated institutions (Fitch)
Slide 21: Reported Historical EPS
REPORTED HISTORICAL EPS 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0.67 0.75 0.83 0.92 0.99 1.09 1.31 1.51 1.74 1.77 1.2 0.967 (US $) Ten-Year CAGR: 6.35% Projected Long-Term Growth of 10.50% vs. Peer Median of 8.67% * Based on IBES consensus estimates 12/31/07 ** Years 2003-2006 ex
Slide 22: Main Challenges in 2007
Main Challenges in 2007 Managing effectively credit challenges in P.R., and in remaining subprime mortgage portfolio. Complete U.S. reorganization. Continuing cost control initiatives Continue strengthening our competitive position in P.R.
Slide 23: Investor Presentation
Investor Presentation