Popular, Inc. · NASDAQ:BPOP
Popular — Q1 2017 Earnings Presentation
19 slides from Popular's earnings presentation, Apr 25, 2017
Slide 1: Investor Presentation First Quarter 2017
Investor Presentation First Quarter 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only management’s beliefs regarding future events and current expe
Slide 3: Q1 2017 Highlights
Q1 2017 Highlights Net income of $92.9 million Earnings Strong margins: Popular, Inc. 4.08%, BPPR 4.46% Credit NPLs increased by $18 million QoQ; ratio flat at 2.5% (excluding NPL inflows, excluding consumer loans, up by $22 million QoQ covered loans) NCO ratio decreased to 0.63% from 1.00% in previ
Slide 4: P.R. Public Sector Exposure
P.R. Public Sector Exposure Our direct exposure to the P.R. Government, instrumentalities, and municipalities is $520 million, of which approximately $516 million is outstanding, down by $13 million from the prior quarter. Central Government & Public Corporations Exposure to P.R. Government securiti
Slide 5: Financial Summary (GAAP)
Financial Summary (GAAP) (Unaudited) ($ in thousands) Q1 2017Q4 2016Variance Net interest income $362,098$355,405$6,693 FDIC loss -share expense (8,257)(130,334)122,077 Other non -interest income 124,126130,159(6,033) Gross revenues 477,967355,230122,737 Provision for loan losses – non -covered loan
Slide 6: GAAP Reconciliation - Q4 2016
GAAP Reconciliation-Q4 2016 GAAP Reconciliation-Q4 2016 (Unaudited) ($ in thousands) Q4 2016 Income taxImpact on Pre-tax effectnet income U.S. GAAP Net loss $(4,105) Non -GAAP Adjustments: FDIC arbitration award 1 116,833 (30,123)386,710 Other FDIC—LSA adjustments 2 9,874 (2,797)37,077 Income from d
Slide 7: Capital
Capital Capital Popular’s capital levels remain robust with Common Equity Tier 1 of 16.3% Tangible book value per share of $43.84 Quarterly common stock dividend of $0.25 per share $75 million common stock repurchase completed 1.85 million shares repurchased at $40.60 per share Popular, Inc. (%) 19.
Slide 8: Non-Performing Assets
Non-Performing Assets Highlights NPAs, including covered loans, increased by $21 million QoQ NPLs, excluding covered loans, increased by $18 million QoQ ?P.R. NPLs at $548 million, or 3.2% of loans, up by $16 million, mainly driven by higher commercial NPLs of $16 million due to the addition of a si
Slide 9: NPL Inflows
NPL Inflows Highlights •Total NPL inflows up by $22 million QoQ ?P.R. commercial inflows, up by $16 million, mainly driven by the addition of a single $25 million relationship ?P.R. mortgage inflows up by $6 million ?U.S. inflows flat QoQ NPL Inflows Highlights Total NPL inflows up by $22 million Qo
Slide 10: Additional Credit Metrics
Additional Credit Metrics Highlights Net charge offs (NCOs) decreased by $21 million from Q4 2016 driven by: Lower P.R. mortgage NCOs of $7 million Lower P.R. commercial NCOs of $7 million, as the prior quarter included a $6 million charge-off related to a single borrower Lower P.R. consumer NCOs of
Slide 11: Driving Shareholder Value
Driving Shareholder Value Earnings Unique franchise in P.R. generating strong and stable revenue Continued loan growth in the U.S. Increased capital return Robust capital with Common Equity Tier 1 Capital of 16.3% EVTC ownership and Banco BHD León stake Capital Additional Value
Slide 12: First Quarter 2017 Appendix
Investor Presentation First Quarter 2017 Appendix POPULAR.
Slide 13: Who We Are / Corporate Structure
Investor Presentation First Quarter 2017 Appendix Corporate Who We Are Structure – Popular, – Inc. Popular, Inc. Franchise Industry Headquarters Assets Loans Deposits Banking branches NASDAQ ticker symbol Market Cap Financial services San Juan, Puerto Rico $40 billion (among top 50 BHCs in the U.S.)
Slide 14: De-Risked Loan Portfolios
De-Risked Loan Portfolios (Excluding covered loans) ($ in millions) Highlights 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 constructio
Slide 15: Q4 2016 Significant Events (GAAP)
Q4 2016 Significant Events (GAAP) (Unaudited) ($ in thousands) Q4 2016Significant events Net interest income $355,405 Non -interest income (175)Includes the charge of $116.8 million related to the FDIC arbitration award and $9.9 million additional adjustments, including prior period recoveries, rela
Slide 16: Business Segments (GAAP)
Business Segments (GAAP) (Una udite d) P.R.U.S. ($ in millions) Financial Results Q1 2017 Q4 2016VarianceQ1 2017Q4 2016Variance Net interest income $310$305$5$67$65$2 Non-interest income 100(14)11456(1) Gross revenues 41029111972711 Provision for loan losses – non-covered loans 3137(6)1138 Provision
Slide 17: Consolidated Credit Summary (Excluding Covered Loans)
Consolidated Credit Summary (Excluding Covered Loans) $ in millions Q1 17Q4 16Q3 16Q2 16Q1 16 Loans Held in Portfolio (HIP) $22,735$22,774$22,596$22,541$22,508 Performing HFS 8589728383 NPL HFS ---4043 Total Non Covered Loans $22,820$22,863$22,668$22,663$22,633 Non-performing loans (NPLs) $576$558$5
Slide 18: 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- Stable Outlook 2014 201520162017 March Moody’s placed BPOP on review for possible JulyFebruaryApril upgrade due to On 7/10 S&P Moody’s AprilS&P upgrades February
Slide 19: First Quarter 2017
Investor Presentation First Quarter 2017