Exhibit 99.1

Popular, Inc. Reports Net Income of $151.3 million for the Year and $3.0 million for the Quarter ended December 31, 2011

• One-time expense of $15.6 million due to implementation of employee retirement window; 369 employees signed up; estimated annual savings of $15 million going forward
• Net interest income decreases $24.5 million, mainly interest on covered loans; net interest margin at 4.30% for Q4
• Provision for non-covered loans falls $26.8 million to $123.9 million in Q4 vs. Q3; ALLL for non-covered loans stable at 3.35%
• Commercial non-performing loan inflows at BPPR for Q4 decreased by $109 million vs. Q3
• Gross revenues stable at $494.1 million in Q4, vs. $491.7 million in Q3
• Net income of $151.3 million for year 2011 vs. $137.4 million for year 2010
• Net income per common share of $0.14 for year 2011
• Provision for loan losses of $575.7 million in 2011 vs. $1.0 billion in 2010

SAN JUAN, Puerto Rico--January 25, 2012--Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ: BPOP) reported net income of $3.0 million for the quarter ended December 31, 2011, compared with net income of $27.5 million for the quarter ended September 30, 2011, and a net loss of $227.1 million for the quarter ended December 31, 2010.

The Corporation’s net income for the year ended December 31, 2011 amounted to $151.3 million, compared with $137.4 million in 2010.

Refer to the accompanying “Financial Supplement to Fourth Quarter 2011 Earnings Release” for detailed financial information and key performance ratios.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, “The year 2011 was a turnaround year for us. We were able to achieve operational profitability for the first time since 2006 by maintaining strong margins, producing strong and stable top line revenue, and continuing to reduce credit costs. We believe we can build on these results and make further progress in 2012. Based on our current credit trends and our current economic outlook for Puerto Rico and the U.S., we believe that we can continue to reduce credit costs and achieve net income of between $185 million and $200 million during 2012.”

Earnings Highlights – Fourth Quarter 2011 compared to Third Quarter 2011

Net interest income

• The net interest margin was 4.30% for the fourth quarter of 2011, compared with 4.45% for the third quarter of 2011. The decrease in net interest income of $24.5 million for the fourth quarter of 2011, compared with the third quarter of 2011, was principally due to a reduction in loan yields, mainly in mortgage loans and the covered loan portfolio, and to a lower volume of investment and trading securities, partially offset by a reduction in the cost of deposits and the volume of borrowings. Refer to Tables D and E for detailed information on average financial condition balances and an analysis of yield / rates by main categories.
• The principal variance in interest income on loans was a reduction in the interest derived from covered loans by $17.4 million, or 124 basis points. This reduction can be attributed primarily to increases in cash flows, assessed in prior periods, for certain loan pools that have a shorter average life than the remaining portfolio. The additional cash flows generated a benefit that based on the pool’s cash flow expectations mainly impacted the results for the second and third quarters of 2011.
• The decline in interest income derived from mortgage loans was $8.2 million, or a reduction in yield of 69 basis points, which was mostly influenced by the partial reversal of the interest receivable on delinquent residential mortgage loans insured by FHA or guaranteed by the VA that are over 18-months past due. The principal repayment on these loans is fully insured.
• The Corporation’s interest expense on deposits decreased by $9.8 million, while their cost went down 17 basis points, reaching 0.99% for the fourth quarter of 2011 and reflecting the continuing progress in repricing the Corporation’s deposit base.
• Interest expense related to borrowings also declined by $4.1 million mainly due to the full repayment of the note payable to the FDIC, which was issued as part of the Westernbank FDIC-assisted transaction.

Provision for loan losses

• The provision for loan losses for the quarter ended December 31, 2011 increased by $3.5 million compared with the third quarter of 2011. There was an increase of $30.3 million in the provision for loan losses on the covered loans, partially offset by a decrease of $26.8 million in the provision for loan losses on the non-covered loans. The increase in the provision for loan losses on the covered loan portfolio was impacted mainly by two particular credit relationships accounted for pursuant to ASC 310-20 which required specific reserves of $28.2 million during the fourth quarter, of which $10.9 million was charged-off during the same quarter. The decrease related to non-covered loans was due to lower provision for loan losses in the Banco Popular de Puerto Rico (“BPPR”) reportable segment by $42.9 million, partially offset by an increase in the Banco Popular North America (“BPNA”) reportable segment of $16.1 million. Refer to the Credit Quality section for the main factors that influenced these variances.

Non-interest income

• FDIC loss share income of $17.4 million was recognized in the fourth quarter of 2011, compared with FDIC loss share expense of $5.4 million for the third quarter of 2011. Refer to Table O for financial information on the covered loans and the composition of the FDIC loss share income. The increase in FDIC loss share income was principally associated with the increase in the provision for loan losses on covered loans.
• Adjustments to indemnity reserves on loans sold or serviced impacted non-interest income with a net unfavorable impact of $3.5 million (expense) during the fourth quarter of 2011, compared with a net expense of $10.3 million for the third quarter of 2011. The main drivers for the reduction of $6.8 million in the expense was the net impact of (1) a reduction of $4.4 million in the representation and warranty reserve adjustment for the BPNA reportable segment since the Corporation reached global settlements with two of the largest counterparties and has seen reduced activity from the remaining parties; and (2) a decrease of $5.8 million in the representation and warranties reserve at the BPPR reportable segment as a result of refinement in estimates based on historical claims and loss expectations, partially offset by (3) an increase in the adjustment to the reserve for residential mortgage loans serviced with recourse of $3.4 million, which reflects lower expected prepayment rates on the serviced portfolio.
• Other operating income increased by $9.9 million mostly due to higher income from investments accounted for under the equity method by approximately $4.3 million and gains of $3.0 million on the sale of former bank premises in the Puerto Rico operations, among the principal factors.

The above favorable variances in non-interest income were partially offset by the following categories:

• Gains on the sale of investment securities available-for-sale amounted to $2.8 million for the fourth quarter of 2011, compared with $8.1 million for the third quarter of 2011, driven by lower volume of securities sold.
• Net gain on sale of loans, including valuation adjustments on loans held-for-sale, amounted to $16.1 million for the fourth quarter of 2011, compared with a net gain of $20.3 million for the third quarter of 2011. The gains recognized during the fourth quarter of 2011 were mainly from the securitization of residential mortgage loans in Puerto Rico. The results for the third quarter of 2011 included the gain on the sale of commercial and construction loans, which contributed with a favorable impact to non-interest income of $17.4 million during that quarter.
• Other service fees decreased by $2.6 million, mostly due to lower debit fees associated in part with a decrease in interchange fees due to the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which was implemented in October 2011 and which limits transactional fees. This reduction in other service fees was partially offset by higher insurance fees in the fourth quarter of 2011, mostly as a result of an increase in contingent commissions driven by business production for the year in the dwelling and flood insurance businesses. Refer to Table F in the Financial Supplement for a breakdown of other service fees.

Operating expenses

• Operating expenses increased by $28.7 million for the fourth quarter of 2011 compared with the third quarter of 2011, principally due to the recognition in December 2011 of $15.6 million in pension costs related to employees that were eligible and signed up for the retirement program. A total of 369 employees will retire effective January 31, 2012. Annual cost savings from this reduction in headcount are estimated to be approximately $15 million. Other categories of operating expenses which had increases were business promotion expense by $4.6 million, mainly due to advertising campaigns related to credit cards and client relationship marketing campaigns during the holidays, as well as from marketing costs associated with the continued BPNA rebranding initiative in Florida and California; and other real estate expenses by $6.7 million, mainly from maintenance costs related to repossessed construction projects. Refer to Table B which provides a breakdown of operating expenses by main categories.

Credit Quality

• Excluding covered loans, the allowance for loan losses to loans held-in-portfolio ratio stood at 3.35% at December 31, 2011, unchanged when compared with September 30, 2011. The general and specific reserves amounted to $635 million and $56 million, respectively, as of December 31, 2011, compared with $634 million and $58 million, respectively, as of September 30, 2011. Refer to Tables H through M for detailed credit quality information, including the activity in the allowance for loan losses.
• Non-performing loans, excluding loans held-for-sale and covered loans, increased $6 million from September 30, 2011 to December 31, 2011, driven principally by an increase in non-performing residential mortgage loans at the BPPR reportable segment, mainly due to loans repurchased under recourse arrangements, partially offset by a reduction in non-performing construction loans held-in-portfolio at the BPPR and BPNA reportable segments. The Corporation has reduced significantly its construction loan portfolio; therefore, the level of problem loans remaining at both reportable segments has declined, driven by the resolution of existing exposures. Refer to Table I for the activity in non-performing commercial and construction loans, excluding covered loans and loans held-for-sale, for the fourth quarter of 2011.
• Excluding covered loans, net charge-offs for the fourth quarter of 2011 declined by $9.1 million, compared with the quarter ended September 30, 2011. The reduction was due to a decrease in net charge-offs in the BPPR reportable segment by $11.4 million, mainly due to lower losses in the BPPR commercial loan portfolio, partially offset by a slight increase in the BPNA reportable segment of $2.2 million. There was an increase of $9.1 million in the net charge-offs on the covered loans, driven principally by one particular credit relationship that was charged-off during the fourth quarter. Refer to Table J for further information on the Corporation’s net charge-offs and related ratios.

Refer to the section below for explanations on the main variances.

BPPR Reportable Segment

• Excluding the impact of the provision for loan losses for the covered loan portfolio, the provision for loan losses for non-covered loans of the BPPR reportable segment totaled $88.1 million for the fourth quarter of 2011, compared with $131.1 million for the third quarter of 2011. The decrease was attributable to lower net charge-offs in the commercial, mortgage and consumer loan portfolios, coupled with an improved outlook in net charge-offs for the consumer loan portfolio due to better macro-economic indicators. These improvements were partially offset by higher reserve requirements for consumer loans restructured under loss mitigation programs. In addition, $12.7 million of the decrease was associated with write-downs on commercial loans transferred from the held-in-portfolio to the held-for-sale category during the third quarter of 2011. These loans were part of the loan sale executed in September 2011.

• Annualized net charge-offs to average non-covered loans held-in-portfolio ratio for the BPPR reportable segment decreased 35 basis points, from 2.49% for the quarter ended September 30, 2011 to 2.14% for the quarter ended December 31, 2011. The decrease was driven by lower net charge-offs in the commercial, consumer and mortgage loan portfolios.

• Non-performing loans of the BPPR reportable segment, excluding loans held-for-sale and covered loans, amounted to $1.4 billion at December 31, 2011, compared with $1.3 billion at September 30, 2011. Non-performing loans of the BPPR residential mortgage loan portfolio increased by $69 million, mainly due to loan repurchases under credit recourse arrangements. This increase was partially offset by reductions in the non-performing commercial and construction loans held-in-portfolio of $22 million and $11 million, respectively.

• Refer to Table L for information on the allowance for loan losses of the Corporation’s Puerto Rico operations. The increase in the allowance for loan losses from September 30, 2011 to December 31, 2011 reflects a higher general reserve component for the commercial and mortgage loan portfolios mostly driven by: (i) higher loss trend mainly observed during the second half of the year on the commercial loan portfolio and (ii) the deterioration in the credit quality of the mortgage loan portfolio. These increases were partially offset by a reduction in the general reserve for the consumer loan portfolio primarily due to stable credit quality performance, which was partially offset by higher specific reserve requirements for consumer loans restructured under loss mitigation programs.

BPNA Reportable Segment

• The provision for loan losses for the BPNA reportable segment amounted to $35.8 million, or 75.0% of net charge-offs, for the fourth quarter of 2011, compared with $19.6 million or 43.2% of net charge-offs for the third quarter of 2011. The increase in the provision for loan losses in the BPNA reportable segment was mainly due to lower release of reserves in the fourth quarter of 2011 compared with the third quarter, principally in the commercial loan portfolio.
• Annualized net charge-offs to average loans held-in-portfolio ratio for the BPNA reportable segment increased 27 basis points, from 3.00% for the quarter ended September 30, 2011 to 3.27% for the quarter ended December 31, 2011. Net charge-offs present a slight increase mostly observed in the commercial and consumer loan segments, partially offset by lower levels in the mortgage loan portfolio. The increase in net charge-offs in the commercial loan portfolio of $3.1 million was the net effect of reduced commercial loan recoveries by $5.3 million and lower charge-offs of $2.2 million.
• Non-performing loans held-in-portfolio of the BPNA reportable segment amounted to $367 million as of December 31, 2011, compared with $395 million as of September 30, 2011. Non-performing construction loans declined $48 million, while non-performing consumer loans declined $2 million. The reduction in non-performing construction loans was mainly due to the resolution of certain existing exposures. The non-performing consumer loan portfolio continues to reflect a decreasing trend and signs of stabilization in the U.S. operations. Non-performing commercial loans increased by $22 million from September 30, 2011, driven principally by one commercial loan relationship with an outstanding balance of approximately $25 million as of December 31, 2011. This particular commercial loan relationship was subject to a $2.3 million charge-off during the fourth quarter of 2011, and did not require a valuation allowance as of year-end.
• Refer to Table M for information on the allowance for loan losses of the BPNA reportable segment. The decline in the allowance for loan losses from September 30, 2011 to December 31, 2011 reflects an overall decrease in the general reserve component, partially offset by an increase in the specific reserve for non-conventional mortgage loans restructured under loss mitigation programs.

Financial Condition Highlights – December 31, 2011 compared to September 30, 2011

• Total assets amounted to $37.3 billion as of December 31, 2011, compared with $38.3 billion as of September 30, 2011. Refer to Table C for a detailed presentation of the Corporation’s Consolidated Statements of Condition.

• Total investment securities, including trading securities and other investment securities, amounted to $5.8 billion as of December 31, 2011 and September 30, 2011.
• Total loans held-in-portfolio declined $235 million from September 30, 2011 to December 31, 2011. Refer to Table G for a breakdown by loan categories. The decline was mostly in covered loans which declined by $164 million from September 30, 2011 to December 31, 2011, principally due to collections.
• Commercial and construction non-covered loans held-in-portfolio decreased $101 million from September 30, 2011 to December 31, 2011, which consisted of a decline of $155 million in the BPNA reportable segment, partially offset by an increase of $54 million in the Puerto Rico operations. The increase in BPPR was mostly from the public and corporate sectors, while the reduction in the BPNA reportable segment was principally due to portfolio runoff of the discontinued lending business, loan amortization and reclassification to other real estate exceeding new and renewal originations. The decline in the consolidated commercial and construction loan portfolio was offset by a greater volume of mortgage loans held-in-portfolio in the Corporation’s Puerto Rico operations, mainly due to loan repurchases under credit recourse agreements.
• Deposits amounted to $27.9 billion as of December 31, 2011, compared with $28.0 billion as of September 30, 2011. Table G presents a breakdown of deposits by major categories.
• The Corporation’s borrowings amounted to $4.3 billion as of December 31, 2011, compared with $5.3 billion as of September 30, 2011. The decrease in borrowings was mostly related to a reduction in principal of $714 million on the note issued to the FDIC as it was fully repaid during the fourth quarter.
• Stockholders’ equity was $3.9 billion as of December 31, 2011, compared with $4.0 billion as of September 30, 2011. Refer to Table A for capital ratios and Table N for Non-GAAP reconciliations.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

An electronic version of this press release can be found at the Corporation’s website, www.popular.com.

CONTACT:
Popular, Inc.
Investor Relations:
Jorge A. Junquera, 787-754-1685
Chief Financial Officer
Senior Executive Vice President
or
Media Relations:
Teruca Rullán, 787-281-5170 or 917-679-3596/mobile
Senior Vice President
Corporate Communications