Slide 1: Financial Results Fourth Quarter 2011
Exhibit 99.1 Financial Results Fourth Quarter 2011
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: 2011 Highlights
2011 Highlights • Net Income for the year amounted to $151 million Strong NIM of 4.34% Provision for loan losses down 43% from prior year • Net income of $3 million in Q4; fourth consecutive profitable quarter Results include a one-time expense of $15.6 million due to employee retirement window Impr
Slide 4: Financial Results
Financial Results $ in thousands (except per share data) 1 Q4 2011 Q3 20111 Variance Net interest income $344,780 $369,311 ($24,531) Service fees & other oper. income 113,848 106,696 7,152 Gain on sale of investments, loans & trading profits 18,064 21,055 (2,991) FDIC loss-share income (expense) 17,
Slide 5: Q4 vs. Q3 2011 Adjusted Variances (in millions)
Q4 vs. Q3 2011 Adjusted Variances (in millions) Variance in pre-tax income Explanation Lower net interest income: Covered loans $ (17) Mortgage loans (8) ($In millions) (25) FDIC loss share increase: Accretion of indemnification asset 2 ASC 310-20 and provision-mirror acct. 21 Q4 vs. Q3 variance as
Slide 6: Capital Ratios
Capital Ratios • Strong capital ratios 14.52% 15.97% 15.79% 17.25% 10.94% 12.10% Q4 Q4 7.99% 8.62% Q4 2010 2011 2 Q4 Q4 Q4 10% 2010 2011 2 2010 2011 6% Q4 Q4 2 5% 2010 2011 Tier 1 Common 1 Tier 1 Capital Total Capital Tangible Common Equity • There is no specific plan at this time for TARP repayment
Slide 7: Consolidated Credit Summary
Consolidated Credit Summary Excluding covered loans • NPAshave decreased since Q4 10 principally driven by the sale of non-performing loans • NCOsslightly declined in the fourth quarter, although experiencing variability within the portfolios • Provision for loan losses for 2011 was down 43% vs 2010
Slide 8: Credit Quality Overview
Credit Quality Overview- Excludes Covered Loans & LHFS • NPLs increased by $6 million in Q4 driven by higher PR mortgage offset by reductions in construction. The Non-Performing Loans- Popular, Inc. increase in Q3 was $107 million. 2,500,000 In 000’s • NCO ratio for Q4 was 2.46% ($126 million) vs. 2
Slide 9: Summary & Outlook
Summary & Outlook 2011 Highlights 2012 Strategy • First year of operational profitability • Further improve credit risk profile since 2006 • Add low-risk assets Further expanded strong margin • Expand efficiency efforts Reduced credit cost by 43% from • Continue improvement at BPNA 2010 Strengthened
Slide 10: Appendix
Appendix
Slide 11: Where We Are Coming From
Where We Are Coming From 60,000 7,000 Assets Market Cap Tangible Capital 48,624 47,404 6,000 50,000 44,411 38,883 38,815 38,830 39,108 5,000 40,000 38,275 37,348 34,736 4,000 30,000 3,000 20,000 2,000 10,000 1,000 - - 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2005/2006 2007/2008
Slide 12: P.R. & US Business
P.R. & US Business PR US $ in millions (Unaudited) Q4 11 Q3 11 Variance Q4 11 Q3 11 Variance Net Interest Income $299 $321 ($22) $73 $73 ($0) Non Interest Income 136 118 18 21 18 3 Gross Revenues 435 439 (4) 94 91 3 Provision (non-covered) (88) (131) 43 (36) (20) (16) Provision (covered WB) (56) (26
Slide 13: Financial Results Fourth Quarter 2011
Financial Results Fourth Quarter 2011