Popular, Inc. · NASDAQ:BPOP
Popular — Q4 2024 Earnings Presentation
31 slides from Popular's earnings presentation, January 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024
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, including without limitation those regarding Popular’s business, financial condition, results of operations an
Slide 3: 2024 Highlights
2024 Highlights Financial Highlights Annual Highlights ($ in millions, except per share information) Income Statement 2024 2023 Change Highlights: Net Income $ 614 $ 541 $ 73 • Adjusted net income of $646 million, increased $59 million or Adjusted Net Income1 646 587 59 10% year over year Net Intere
Slide 4: Q4 2024 Highlights
Q4 2024 Highlights Financial Highlights Quarter Highlights ($ in millions, except per share information) Income Statement Q4 2024 Q3 2024 Change Q4 2023 Highlights: Net Income $ 178 $ 155 $ 23 $ 95 • Net income increased $23 million, to $178 million, driven by an Net Interest Margin (NIM) 3.35% 3.24
Slide 5: Business Highlights
Business Highlights BPPR Popular U.S. ($ in millions) Q4 2024 Q3 2024 Change Q4 2023 ($ in millions) Q4 2024 Q3 2024 Change Q4 2023 Loans Held in Portfolio $ 26,147 $ 25,694 $ 453 $24,478 Loans Held in Portfolio $ 10,929 $ 10,469 $ 460 $ 10,554 P.R. Government Deposits 19,463 18,716 747 18,068 Total
Slide 6: Financial Summary
Financial Summary Quarterly Results (unaudited) ($ in thousands, except EPS) Q4 2024 Q3 2024 Variance Net interest income $ 590,759 $ 572,473 $ 18,286 Provision for credit losses 66,102 71,448 (5,346) Net interest income after provision for credit losses $ 524,657 $ 501,025 $ 23,632 Service charges
Slide 7: Net Interest Margin Dynamics
Net Interest Margin Dynamics Quarter Highlights: Earning Assets • Total earning assets increased $1.7 billion to $69.7 billion: (ending balances, $ in billions)1 ‐ $913 million higher loan balances and $965 million higher $67.2 $67.4 $69.2 $68.0 $69.7 investment securities 70.0 0 0.1 4 $35.1 $35.1 $
Slide 8: Capital
Capital Quarter Highlights: Popular, Inc. • Common Equity Tier 1 Ratio of 16.03% decreased 39 bps due to Q4 2024 Q3 2024 capital actions and loan growth in BPPR and Popular U.S. • Leverage Ratio of 8.66%, impacted by a high proportion of zero- 0.2 0.1 8 risk weighted assets on the balance sheet, whi
Slide 9: Non-Performing Assets
Non-Performing Assets Quarter Highlights: Non-Performing Assets • Non-Performing Assets (NPAs) decreased $16 million ($ in millions) • Non-Performing Loans (NPLs) decreased $10 million 600 0.04 $529 $504 • NPL inflows increased $2 million: $472 0.035 500 $444 $438 $435 ‐ BPPR increased $11 million $
Slide 10: NCOs and Allowance for Credit Losses
NCOs and Allowance for Credit Losses Quarter Highlights: Allowance for Credit Losses • NCO Ratio increased 9 bps to 0.74% ($ in millions) • NCOs increased $8 million to $67 million Reserve Reserve • BPPR NCOs increased $8 million to $63 million: Balance Build Balance Build Balance ACL/Loan ‐ Consume
Slide 11: Allowance for Credit Losses – Q4 2024
Allowance for Credit Losses – Q4 2024 ACL Movement: • Moody’s economic scenario shows a deceleration in P.R. ACL Movement economic activity during 2025, in part due to an ($ in millions) expected reduction in the pace of spending of federal funds • Reduction in qualitative reserves reflects the impl
Slide 12: Driving Value
Driving Value Market leader in Puerto Rico • Substantial liquidity with diversified deposit base • Well-positioned to take advantage of ongoing economic growth • Focused on customer service supported by broad branch network • Differentiated omnichannel experience Franchise • Diversified fee income •
Slide 13: 2025 Results Guidance
2025 Results Guidance 2025 Guidance Net Interest Driven by repricing of investments at higher rates, loan originations and 7%-9% increase for the year Income lower deposit costs Non-Interest $5 million per quarter lower than FY24 trend due to impact of sale of the $155 million - $160 million each qu
Slide 14: Footnotes
Footnotes Slide 3: (1) Refer to Non-GAAP Reconciliation on slide 17 of the appendix section of this presentation. (2) Fully taxable equivalent (“FTE”) net interest margin represents a non-GAAP financial measure. See the Corporation's earnings press release, Form 10-Q and Form 10-K filed with the U.S
Slide 15: Appendix
Investor Presentation Fourth Quarter 2024 Appendix 15
Slide 16: Corporate Structure
Corporate Structure Franchise Summary Corporate Structure Industry Financial Services Headquarters San Juan, Puerto Rico Assets = $73 billion Assets $73 billion (among top 50 BHCs in the U.S.) Holding Co. Banco Popular Popular’s Popular North (Including Popular de Securities Insurance America, Inc.
Slide 17: Non-GAAP Reconciliation
Non-GAAP Reconciliation The following table presents the reconciliation of the net income to the Adjusted net income (Non-GAAP) for the period ended December 31, 2024. There were no adjustments to net income for the quarter ended December 31, 2024. Adjusted Net Income for the Year ended December 31,
Slide 18: 2024 Financial Summary
2024 Financial Summary Annual Results (unaudited) ($ in thousands, except EPS) 2024 2023 Variance Net interest income $2,282,288 $2,131,524 $ 150,764 Provision for credit losses 256,942 208,609 48,333 Net interest income after provision for credit losses $2,025,346 $1,922,915 $ 102,431 Service charg
Slide 19: Q4 2024 vs. Q3 2024
Q4 2024 vs. Q3 2024 Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) Q4 2024 Q3 2024 Variance Q4 2024 Q3 2024 Variance Net interest income $ 507 $ 488 $ 19 $ 92 $ 93 $ (1) Provision for credit losses 66 78 (12) (1) (6) 5 Net interest income after provision for credit losses 441 410 31
Slide 20: 2024 vs. 2023 Business Segments
2024 vs. 2023 Business Segments Financial Results BPPR Popular U.S. (Unaudited) ($ in millions) 2024 2023 Variance 2024 2023 Variance Net interest income $ 1,957 $ 1,812 $ 145 $ 356 $ 351 $ 5 Provision for credit losses 255 195 60 1 15 (14) Net interest income after provision for credit losses 1,702
Slide 21: Deposit Mix and Historical Beta
Deposit Mix and Historical Beta • BPPR's retail and commercial accounts are low beta products and will react more slowly to changes in short-term interest rates • High beta P.R. government deposits represent 31% of the total deposits • Deposits from the Puerto Rico government are linked to market ra
Slide 22: Investments Portfolio
Investments Portfolio Highlights: $ in millions Q4 2024 Variance to Q3 2024 • Conservative investment portfolio, with the majority Amortized % of Book Gain / Maturity / Amortized Gain / invested in short to intermediate U.S. Treasuries, which Description Cost Portfolio Value (Loss) Yield WAL11 Cost
Slide 23: P.R. Public Sector Exposure
P.R. Public Sector Exposure The Corporation does not own any loans issued by the P.R. central government or its public corporations. As of December 31, 2024, our direct exposure to P.R. municipalities was $336 million, flat QoQ. Municipalities Outstanding P.R. Government Exposure ($ in millions) Loa
Slide 24: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Quarter Highlights: • Non-Owner Occupied CRE (CRE NOO) mainly in retail, hotels and office Non-Owner Occupied CRE space ($ in millions) $5,185 $5,363 $5,087 $5,057 $5,005 • Office exposure limited to 1.9% of total loan portfolio and 13% of CRE 2.5% NOO: $2,117 5,000
Slide 25: Multifamily Loans Portfolios
Multifamily Loans Portfolios Quarter Highlights: • 87% of the portfolio concentrated in Popular U.S. Multifamily Loans • Strong credit risk profile with low levels of delinquency, NCOs and ($ in millions) $2,416 $2,385 $2,385 $2,406 $2,400 classified loans: 2,500 30-89 DPD/Loans at 0.29% $2,124 1.4%
Slide 26: Auto Loans Portfolio
Auto Loans Portfolio Quarter Highlights: Delinquency Avg. 2011-2019 12/31/2024 ($in millions) • Auto balances have steadily increased since the pandemic 6.17% 5.00% • Delinquency and NCOs have gradually increased, but continue to 4500 0.06 remain below pre-pandemic levels $3,633 $3,661 $3,707 $3,773
Slide 27: Auto Leases Portfolio
Auto Leases Portfolio Quarter Highlights: Delinquency Avg. 2011-2019 12/31/2024 ($in millions) • Auto lease balances have grown steadily since the pandemic 2.06% 2.06% 2500 0.06 • Delinquency gradually increased during 2023, reaching pre- pandemic levels in Q4 2024 $1,887 $1,925 $1,828 0.05 2000 $1,
Slide 28: Credit Cards Portfolio
Credit Cards Portfolio Quarter Highlights: Delinquency Avg. 2011-2019 12/31/2024 ($in millions) • Improvements in credit quality of originations 3.74% 4.85% • Balances continue to increase due to higher originations and increased usage post pandemic 1400 $1,187 $1,218 0.06 $1,124 $1,136 $1,142 $1,16
Slide 29: P.R. Personal Loans Portfolio
P.R. Personal Loans Portfolio Quarter Highlights: Delinquency Avg. 2011-2019 12/31/2024 ($ in millions) • Improvements in credit quality of originations 3.61% 3.01% • Portfolio balances have been increasing since the pandemic, but 200 0 $1,763 $1,776 0.06 $1,746 $1,745 $1,754 $1,754 at a slower pace
Slide 30: Popular, Inc. Credit Ratings
Popular, Inc. Credit Ratings SeniorSenior Unsecured Ratings Unsecured Ratings Fitch BBB- Stable Outlook S&P BB+ Stable Outlook Moody’s Ba1 Stable Outlook 2018 2019 2020 2021 2022 April April Moody’s June Moody's April September upgrades to Fitch upgrades upgrades to B1 S&P upgrades to Moody’s upgrad
Slide 31: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024