Popular, Inc. · NASDAQ:BPOP
Popular — Q2 2018 Earnings Presentation
18 slides from Popular's earnings presentation, Jul 23, 2018
Slide 1: Investor Presentation Second Quarter 2018
Investor Presentation First Quarter 2018 Investor Presentation Second Quarter 2018 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular Inc.’s (the “Corporation”, “Popular”, “us”, “our,”) business, financial condition, results of operations, plans, o
Slide 3: Q2 2018 Highlights
NPLs increased by $36 million QoQ; ratio at 2.6%2 NCO ratio increased to 0.95% from 0.90% in previous quarter2 Credit Metrics Net income of $279.8 million; adjusted net income of $121.3 million¹ Strong margins: Popular, Inc. 3.81%, BPPR 4.07% Earnings Robust capital; Common Equity Tier 1 Capital rat
Slide 4: Financial Summary (GAAP)
Financial Summary (GAAP)1 1 See slide 5 for Q2 2018 adjusted Non-GAAP results
Slide 5: GAAP Reconciliation
GAAP Reconciliation 1 Refer to significant events section in the Company's Q2 2018 earnings release for more detailed information
Slide 6: Capital
Popular, Inc. (%) Popular’s capital levels remain robust with Common Equity Tier 1 of 17.5% Tangible book value per share of $44.78 compared to $42.61 in Q1 2018 Capital Note: Estimated for the current period 16.8 16.8 19.8 10.0 17.5 17.5 20.4 9.8 Common Equity Tier 1 Capital Tier 1 Risk-Based Capit
Slide 7: 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 8: Non-Performing Assets and Loans
Highlights NPAs increased by $6 million QoQ NPLs increased by $36 million QoQ P.R. NPLs at $590 million, or 3.3% of loans, up by $16 million, driven by higher mortgage NPLs of $15 million, mostly due to loans which failed to make payment after the end of the moratorium. The P.R. mortgage NPL QoQ inc
Slide 9: NPL Inflows
NPL Inflows Total NPL Inflows ($ in millions) Highlights Total NPL inflows up by $51 million QoQ P.R. commercial up by $39 million QoQ, driven by two borrowers with an aggregate amount of $46 million U.S. construction inflows up by $18 million QoQ, mostly driven by a single borrower P.R. mortgage in
Slide 10: NCOs and Provision
NCOs and NCO-to-Loan Ratio ($ in millions) Provision and Provision-to-NCO Ratio ($ in millions) Highlights Net charge-offs (NCOs) increased by $5 million, driven by higher P.R. commercial NCOs, mostly related to loans reserved in prior quarters NCO ratio at 0.95% vs. 0.90% in Q1 2018 Allowance for l
Slide 11: Driving Shareholder Value
Driving Shareholder Value Capital Robust capital with Common Equity Tier 1 Capital of 17.5% Tangible book value per share of $44.78 Earnings Unique franchise in P.R. continues to generate strong revenue and significant deposit growth Expected closing of Reliable auto transaction August 1, 2018 Addit
Slide 12: Second Quarter 2018 Appendix
Investor Presentation Second Quarter 2018 Appendix
Slide 13: Franchise Summary and Corporate Structure
Franchise Summary Corporate Structure Assets = $38 billion Assets = $9 billion Puerto Rico Operations United States Operations Assets = $48 billion Corporate Structure – Popular, Inc. Information as of June 30, 2018 ¹ Doing business as Popular Selected equity investments EVERTEC and Banco BHD León u
Slide 14: De-Risked Loan Portfolios
De-Risked Loan Portfolios The Corporation has de-risked its loan portfolios by reducing its exposure to asset classes with historically high loss content The P.R. commercial portfolio reductions include: Commercial portfolio, including construction, has decreased from 55% of total loans held-in-port
Slide 15: Business Segments (GAAP)
Business Segments (GAAP) ¹ Non-fully taxable equivalent
Slide 16: Consolidated Credit Summary
Consolidated Credit Summary 1 Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding $ in millions Q2 18 1 Q1 18 Q4 17 Q3 17 Q2 17 Loans Held in Portfolio (HIP) $24,609 $24,088 $24,293 $23,173 $22,918 Performing HFS $74 $78 $132 $69 $70 NPL HFS $0 $0
Slide 17: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings Our senior unsecured ratings have remained stable Moody’s B2 Stable Outlook Fitch BB- Stable Outlook S&P BB- Negative 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 BPO
Slide 18: Second Quarter 2018
Investor Presentation Second Quarter 2018