Attached files
| file | filename |
|---|---|
| 8-K - 8-K - POPULAR, INC. | d615625d8k.htm |
 Financial Results
Financial Results
Third Quarter 2013
Third Quarter 2013
Exhibit 99.1 |
 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
uncertainties that may cause the Company's actual results to differ materially
from any future results expressed or implied by such forward-looking
statements. Factors that may 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. Other than to the extent required by applicable law, the Company
undertakes no obligation to publicly update or revise any
forward-looking statement. Please refer to our Annual Report on Form 10-K for the
year ended December 31, 2012 and other SEC reports for a discussion of those
factors that could impact our future results.
The
financial
information
included
in
this
presentation
for
the
quarter
ended
September
30,
2013
is
based
on preliminary unaudited data and is subject to change.
1
Forward Looking Statements |
 2
•
Reported net income of $229.1 million
•
Adjusted net income of $61.3 million
•
Strong margins: Popular, Inc. 4.49%, BPPR 5.26%
•
Continued improvement across key metrics reaching new lows in the
credit cycle and returning to pre-crisis levels
•
NPLs are flat at 2.88% of loans, down 74% from Q3 2010 peak of
10.59%
•
NCO ratio at 1.08%, lowest level since 2007
•
NPL inflows for commercial and mortgage down $24.7 million QoQ,
lowest level in the credit cycle
•
Sale of 9.06 million shares for $197 million, retaining a stake of 21.3%
with a market value of approximately $406 million (October 21, 2013)
and book value of $42.4 million as of September 30, 2013
•
Popular recognized an after tax gain of approximately $167.8 million
during the third quarter of 2013
Highlights & Q3 2013 Results
Earnings
Credit
EVTC
Credit metrics exclude covered loans |
 TARP
& Capital 3
•
Robust capital (T1CE ratio of 14.2%), $2.1 billion in excess of 5% CCAR target
requirement
•
Derisked balance sheet and enhanced risk management strengthens the company’s
position for the most shareholder-friendly exit from TARP
•
Submitted an application to repay TARP in full subject to regulatory
approval Common Tier 1 Capital
5.0%
14.2%
12.4%
Tier 1 Capital
6.0%
18.5%
14.4%
Total Capital
10.0%
19.8%
15.7%
Minimum Well
Capitalized
Ratio
9/30/2013
Pro-forma
9/30/2013 Excl.
TARP |
 Financial
Summary
(unaudited)
4
•
Pre-tax Q3 variance to Q2 of $28 million driven mostly by FDIC loss share
accounting and higher covered OREO expenses
Q3 2013
Q2 2013
See appendix for Non-GAAP to GAAP reconciliation
Non GAAP
Non GAAP
In thousands
Adjusted
Adjusted
Net interest income
$354,206
$354,217
($11)
Non Interest Income
130,958
136,083
(5,125)
Total revenues before FDIC income (expense)
485,164
490,300
(5,136)
FDIC loss-share income (expense)
(14,866)
(3,755)
(11,111)
Gross revenues
470,298
486,545
(16,247)
Provision for loan losses (excluding covered loans)
55,230
54,660
570
Provision for loan losses (covered WB loans)
17,433
25,500
(8,067)
Total provision
72,663
80,160
(7,497)
Net revenues
397,635
406,385
(8,750)
Personnel costs
116,839
114,679
2,160
Other real estate owned (OREO) expenses
17,175
5,762
11,413
Other operating expenses
192,335
186,633
5,702
Total operating expenses
326,349
307,074
19,275
Income before tax
71,286
99,311
(28,025)
Income tax expense
9,979
31,207
(21,228)
Net income
$61,307
$68,104
($6,797)
Adjusted
Variance |
 Capital
5
Capital Ratios %
Excess Capital ($ in billions)
**Excess
capital
over
“well
capitalized”
Basel
I
threshold
*Averages
for
30
bank
holding
Companies
with
$50
billion
or
more
of
total
consolidated assets, consisting of 19 firms included in Comprehensive Capital
Analysis
and
Review
(CCAR)
and
11
firms
included
in
Capital
Plan
Review
(CapPR).
•
Tier
1
Common
Equity
capital
ratio
of
14.2%
exceeds
current
CCAR
target
requirement
of
5% by $2.1 billion
•
We expect to remain “well-capitalized”
under the recently announced Basel III rules issued
by the Federal Reserve
**
**
CCAR & CapPR Q2 2013 *
BPOP Q3 2013
14.2
10.6
18.5
11.8
19.8
14.6
10.3
8.6
$2.1
$2.9
$2.3
Tier 1 Common
Tier 1 Capital
Total Capital
Tangible Common
Equity
Tier 1 Common
Total Capital
Tier 1 Capital |
 De-risked Loan Portfolios
•
PR has derisked its commercial loan
portfolio by reducing its exposure in
asset classes with historically high loss
content
Construction loan portfolio is down
by 80% since Q4 2007
SME balances down by 48% from
Q4 2007
•
Collateralized exposure now represents
a larger portion of consumer loan
portfolio
•
Unsecured loans credit quality has
improved as overall FICO scores have
increased
Loan Composition (Held-in Portfolio)
PR Commercial and Construction Portfolio Distribution
6
(1)
NCOs distribution represents the percentage allocation of NCOs from Q1 2008
through Q3 2013 per each loan category
(2)
Small and Medium Enterprises
Legacy portfolio is comprised of certain commercial, construction and lease
financings lending products exited by the US.
²
²
²
NCOs
Distribution
CRE SME
2,939
$
32%
1,789
$
28%
($1,150)
-39%
23%
C&I SME
2,287
25%
931
14%
(1,356)
-59%
28%
C&I Corp
1,592
18%
1,860
29%
268
17%
6%
Construction
1,231
14%
252
4%
(979)
-80%
38%
CRE Corp
892
10%
1,590
24%
698
78%
4%
Multifamily
64
1%
85
1%
21
33%
1%
Q4 2007
Q3 2013
Variance
$ in millions
$ in millions
Q4 2007
Q3 2013
Q4 2007
Q3 2013
Q4 2007
Q3 2013
Variance
Commercial
$7,774
$6,255
$4,514
$3,591
$12,288
$9,846
($2,442)
Consumer
3,552
3,274
1,698
626
5,250
3,900
(1,350)
Mortgage
2,933
5,344
3,139
1,269
6,072
6,613
541
Construction
1,231
252
236
41
1,467
293
(1,174)
Leases
814
539
-
-
814
539
(275)
Legacy
-
-
2,130
236
2,130
236
(1,894)
Total
Puerto Rico
US
Total
$16,304
$15,664
$11,717
$5,763
$28,021
$21,427
($6,594)
Total
$9,005
$6,507
($2,498)
-28%
(1)
100% |
 $944
$859
$971
$1,142
$852
$866
$1,026
$1,101
$1,293
$1,500
$2,084
$2,245
$2,402
$2,448
$2,539
$2,623
$2,489
$2,314
$2,277
$2,254
$2,365
$2,311
$2,178
$2,120
$2,002
$1,419
$992
1.8%
2.1%
2.4%
1.9%
2.1%
2.5%
2.7%
3.3%
4.0%
5.7%
6.3%
6.9%
7.2%
6.0%
6.4%
6.4%
6.0%
5.8%
5.9%
6.3%
6.2%
5.9%
5.8%
5.5%
3.8%
2.7%
2.6%
1Q 07
2Q 07
3Q 07
4Q 07
1Q 08
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
NPLs
OREO
NPL HFS
NPAs/Total Assets
Credit Improvement Accelerated by Bulk Sales
•
Non-performing loans held-in-portfolio increased by
$4 million, or 1%, QoQ and declined by $933 million,
or 60% YoY
•
NPL to loans stand at 2.9% for Q3 2013, unchanged
from Q2 2013, and at the same level as Q1 2008
•
QoQ increase is driven by PR mortgage NPLs due to
reduced level of outflows given lower balances after
the NPL bulk sale
Non-Performing Loans HIP ($M)
7
Non-Performing Assets ($M)
Metrics exclude covered loans
•
Non-performing assets declined by $49 million,
or 5%, QoQ and $1.2 billion, or 55%, YoY
•
Improvements accelerated by NPA bulk sales
completed
during
the
first
half
of
2013
•
QoQ decline mainly due to continued OREO
dispositions
$618
$770
$858
$1,008
$771
$781
$923
$1,028
$1,203
$1,404
$1,978
$2,116
$2,276
$2,313
$2,330
$2,344
$1,572
$1,614
$1,625
$1,732
$1,738
$1,682
$1,563
$1,550
$1,425
$1,051
$614
2.4%
2.7%
3.1%
2.8%
2.9%
3.5%
3.9%
5.6%
8.0%
8.7%
9.6%
10.0%
10.4%
10.6%
7.6%
7.9%
7.9%
8.4%
8.4%
8.2%
7.6%
7.5%
6.8%
4.9%
2.9%
2.9%
0.0
2.0
4.0
6.0
8.0
10.
12.
14.
1Q 07
2Q 07
3Q 07
4Q 07
1Q 08
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Mortgage
Commercial & Construction
Other
NPL/Loans (HIP)
4.7% |
 Steady
Improvements in NPL Inflows •
Total NPL inflows decreased by $24 million, or
13% QoQ, and down by 83% from peak levels in
Q2 2009
•
Commercial NPL inflows in Puerto Rico
decreased by $20 million, or 33% QoQ, reaching
the lowest level in the credit cycle
•
Mortgage NPL inflows in Puerto Rico continued
improving, down by $5 million, or 5% QoQ
8
Excludes consumer loans
Metrics exclude covered loans
$9
$13
$10
$8
$6
$6
$10
$8
$5
$7
$5
$140
$154
$175
$232
$187
$166
$157
$167
$110
$99
$94
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
US Inflows
PR Inflows
$67
$92
$87
$84
$55
$51
$52
$34
$26
$29
$27
$271
$273
$397
$333
$279
$231
$257
$210
$158
$158
$136
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
US Inflows
PR Inflows
$58
$79
$77
$76
$48
$45
$42
$26
$22
$22
$22
$131
$119
$222
$101
$93
$65
$100
$43
$48
$59
$42
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
US Inflows
PR Inflows
Total
NPL
Inflows
($M)
Mortgage NPL Inflows ($M)
Commercial,
Construction
&
Legacy
NPL
Inflows
($M) |
 Continued Progress in Asset Quality
•
NCOs for Q3 2013 are down by $21 million QoQ
Commercial NCOs down by $19 million, or 48%
NCO ratio stands at 1.08%, under 2% for six
consecutive quarters
NCO ratio fell to the lowest level since Q3 2007
NCO ($M) and NCO-to-HIP Loan Ratio
Provision ($M) and Provision-to-NCO Ratio
9
Metrics exclude covered loans
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
$529
$526
44%
42%
40%
40%
40%
41%
41%
44%
56%
$727
$690
$693
$690
$665
$649
$636
$622
$584
86%
85%
130%
129%
128%
137%
154%
165%
166%
154%
179%
167%
227%
ALLL
ALLL/NCO
ALLL/NPL
PLL
NPL Sale PLL
PLL/NCO
NPL Sale PLL/NCO
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
$60
$96
$151
$124
$83
$82
$84
$86
$58
$55
$55
$149
$169
71%
69%
43%
72%
111%
98%
76%
83%
87%
86%
95%
84%
80%
NCO
NPL Sale Charge-offs
NCO%
NPL Sale NCO%
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
$139
$133
$135
$126
$108
$98
$96
$101
$81
$79
$58
2.74%
2.59%
2.64%
2.46%
2.13%
1.93%
1.87%
1.94%
1.55%
1.47%
1.08%
$163
$200
4.66%
5.16%
•
PLLL remained flat at $55 million from Q2 2013
(excluding sale impact);
Provision to NCO stands at 95%, compared to 69% in
Q2 2013
•
ALLL remained unchanged at 2.46% of loans
•
ALLL to NPL coverage ratio has significantly improved to
85% for Q3 2013, from a low of 40% in Q3 2011,
primarily driven by the bulk sales in the first half of the
year
ALLL ($M), ALLL-to-NCO and ALLL-to-NPL Ratios
|
 PR
Government Exposure •
Loans to the Government of Puerto Rico and Public Corporations
are either collateralized loans or obligations that have a specific
source of income or revenues identified for their repayment
10
Direct
Exposure
$388 million
outstanding
Indirect
Exposure
$359 million
outstanding
Municipalities
$408 million
outstanding
•
Our current exposure to the PR government and its instrumentalities is $1.4 billion,
of which $1.2 billion is outstanding
•
Of the amount outstanding, $951 million consists of loans and $204 million is
securities •
Loans
to
various
municipalities
backed
by
unlimited
taxing
power
or
real and personal property taxes collected within such municipalities
•
Includes $272 million residential mortgage loans to individual
borrowers with a government guarantee
•
$52 million in FNMA, GNMA or residential loan CMOs
non governments tenants
•
$35 million of industrial development notes payable primarily by
|
 Driving Shareholder Value
11
Capital
Earnings
Additional
Value
•
Robust capital with excess Tier 1 Common Equity of $2.1 billion and
significantly
improved
asset
quality
move
us
closer
to
TARP
exit
in
the
most shareholder-friendly fashion
•
Application for TARP repayment was submitted
•
Unique franchise in PR provides strong, stable revenue-generating
capacity
•
Popular’s credit metrics are now close to historical low levels
•
EVTC ownership, BHD stake and continued improvement in US
operations |
 APPENDIX
APPENDIX |
 Who
We
Are
–
Popular,
Inc.
Franchise
•
Financial services company
•
Headquartered in San Juan, Puerto Rico
•
$36 billion in assets (top 50 bank holding
company in the U.S.)
•
$25 billion in total loans
•
$26 billion in total deposits
•
276 branches serving customers in Puerto
Rico, New York, California, Florida, Illinois,
U.S. Virgin Islands, and New Jersey
•
NASDAQ ticker symbol: BPOP
•
Market
Cap:
$2.7
billion
1
1
As of September 30, 2013
*Doing business as Popular Community Bank.
Summary Corporate Structure
Assets = $36.1bn
Popular Auto,
Inc.
Banco Popular
de Puerto Rico
Popular
Securities, Inc.
Assets = 27.1 bn
Assets = $8.8bn
Banco Popular
North America*
Puerto Rico operations
Popular
Insurance, Inc.
Popular North
America, Inc.
U.S. banking operations
Transaction processing,
business processes
outsourcing
21.3% stake
Adjusted EBITDA of $175.3
million for the 12-months
ended June 30, 2013; $43.4
million for Q2 2013.
Dominican
Republic bank
19.99% stake
2012
approximate net
income $114
million
13
Selected equity investments
(first two under “corporate”
segment and third and fourth under PR):
PRLP
2011
Holdings
PR
Asset
Portfolio
2013-1
International,
LLC
Construction and
commercial loans vehicle
24.9% stake
Construction, commercial
loans and OREOs vehicle
24.9% stake |
 US
GAAP Non GAAP
In thousands, except per share amount
Actual
EVERTEC's SPO
Adjusted
Net interest income
$354,206
$354,206
Non interest income
306,825
175,867
130,958
Total revenues before FDIC income (expense)
661,031
175,867
485,164
FDIC loss-share income (expense)
(14,866)
(14,866)
Gross revenues
646,165
175,867
470,298
Provision
for
loan
losses
(excluding
covered
loans)
[1]
55,230
55,230
Provision for loan losses (covered loans)
17,433
17,433
Total provision
72,663
72,663
Net revenues
573,502
175,867
397,635
Personnel costs
116,839
116,839
Other real estate owned (OREO) expenses
17,175
17,175
Other operating expenses
192,585
250
192,335
Total operating expenses
326,599
250
326,349
Income before tax
246,903
175,617
71,286
Income tax expense
17,768
7,789
9,979
Net income
$229,135
$167,828
$61,307
EPS -
Basic
$2.22
EPS -
Diluted
$2.22
NIM
4.49%
Tangible book value per share (quarter end)
$35.32
Market price (quarter end)
$26.25
Q3 2013
GAAP Reconciliation Q3 2013
14
[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted
transaction that are covered under FDIC loss sharing agreements. |
 [1] Covered loans represent loans acquired in the Westernbank FDIC-assisted
transaction that are covered under FDIC loss sharing agreements. [2]
Represents the impact of the gross receipt tax corresponding to the first quarter 2013, recorded during the second quarter after enactment.
[3]
Represents
the
net
benefit
of
$215.6
million
for
the
increase
on
the
net
deferred
tax
asset
from
the
change
of
the
corporate
tax
rate
from
30%
to
39%,
$7.9
million resulting from the adjustment in tax rate for distributions from EVERTEC
from 15% to 4%, offset by an adjustment of $11.9 million on the deferred tax
liability related to the covered loans portfolio.
15
GAAP Reconciliation Q2 2013
US GAAP
Non
GAAP
In thousands, except per share amount
Actual
NPL Sale
EVERTEC's
IPO
Income Tax
Adjustment
[2][3]
Adjusted
Net interest income
$355,719
$1,502
$354,217
Service fees & other oper. income
290,874
(3,047)
162,091
131,830
Gain (loss) on sale of investments, loans & trading
6,244
(3,865)
5,856
4,253
Non interest income (loss)
297,118
(6,912)
167,947
-
136,083
Total revenues before FDIC income (expense)
652,837
(6,912)
169,449
490,300
FDIC loss-share income (expense)
(3,755)
(3,755)
Gross revenues
649,082
(6,912)
169,449
486,545
Provision
for
loan
losses
(excluding
covered
loans)
[1]
223,908
169,248
54,660
Provision for loan losses (covered loans)
25,500
25,500
Total provision
249,408
169,248
80,160
Net revenues
399,674
(176,160)
169,449
406,385
Personnel costs
114,679
114,679
Other real estate owned (OREO) expenses
5,762
5,762
Other operating expenses
189,145
856
1,656
186,633
Total operating expenses
309,586
856
1,656
307,074
Income before tax
90,088
(176,160)
168,593
(1,656)
99,311
Income tax (benefit) expense
(237,380)
(68,987)
11,988
(211,588)
31,207
Net income (loss)
$327,468
($107,173)
$156,605
$209,932
$68,104
EPS -
Basic
$3.18
EPS -
Diluted
$3.17
NIM
4.46%
Tangible book value per share (quarter end)
$33.38
Q2 2013 |
 Financial Summary: non personnel expenses & taxes (unaudited)
16
¹
Reclassification of income tax credit related to the gross receipts tax credit from
operating expenses to income taxes. 2
Early extinguishment of debt related to early cancelation of $233 million in senior
notes. 3
Higher
OREO
expenses
mostly
related
to
write-downs
on
the
commercial
and
construction
covered
portfolio
which
is
subject to 80% reimbursement from the FDIC.
4
Income
taxes
include
favorable
adjustment
in
the
2012
tax
return
related
to
EVTC
distributions
($7.7
million),
the
reclassification of income tax credit related to the gross receipts tax credit
($3.3 million) and the reversal of uncertain tax positions in PR given
statute of limitations expiration ($7.7 million).
¹
²
4
3
Q3 2013
Q2 2013
See appendix for Non-GAAP to GAAP reconciliation
Non GAAP
In thousands
Adjusted
Adjusted
Net occupancy expense
$ 24,711
$ 24,108
603
$
Equipment expenses
11,768
11,843
(75)
Other operating taxes
17,749
13,632
4,117
Professional fees
71,789
69,108
2,681
Communications
6,558
6,644
(86)
Business promotion
14,982
15,562
(580)
FDIC deposit insurance
16,100
19,503
(3,403)
Loss on early extinguishment of debt
3,388
-
3,388
OREO expenses
17,175
5,762
11,413
Other operating expenses
22,822
23,766
(944)
Impact of change in fiscal period
-
-
-
Amortization of intangibles
2,468
2,467
1
Total non personnel expenses
$ 209,510
$ 192,395
17,115
$
Income tax expense
$ 9,979
$ 31,207
(21,228)
$
Adjusted
Variance
Non GAAP |
 17
Consolidated
Credit
Summary
1
Excluding provision for loan losses and net write-downs related to the asset
sale $ in millions
Q3 13
Q2 13
Q1 13
Q4 12
Q3 12
Loans Held in Portfolio (HIP)
$21,427
$21,522
$21,634
$20,984
$20,754
Performing HFS
123
180
183
258
228
NPL HFS
2
11
18
96
109
Total Non Covered Loans
21,552
21,713
21,835
21,338
21,091
Non-performing loans (NPLs)
$618
$614
$1,051
$1,425
$1,550
Commercial
$320
$328
$321
$665
$777
Construction
$29
$45
$51
$43
$50
Legacy
$24
$28
$36
$41
$49
Mortgage
$203
$172
$601
$630
$632
Consumer
$42
$41
$42
$46
$43
NPLs HIP to loans HIP
2.88%
2.85%
4.86%
6.79%
7.47%
Net charge-offs (NCOs)
$58
$79
$81
$101
$96
Commercial
$21
$41
$32
$49
$47
Construction
($5)
($2)
$0
($2)
($1)
Legacy
$2
($1)
$2
$3
$4
Mortgage
$13
$16
$20
$20
$16
Consumer
$27
$26
$27
$31
$29
Write-downs bulk sale
$0
$200
$163
$0
$0
NCOs to average loans HIP
1.08%
1.47%
1
1.55%
1
1.94%
1.87%
Provision for loan losses (PLL)
$55
$55
1
$58
1
$86
$84
PLL to average loans HIP
1.03%
1.02%
1
1.10%
1
1.66%
1.63%
PLL to NCOs
0.95x
0.69x
1
0.71x
1
0.86x
0.87x
Allowance for loan losses (ALL)
$526
$529
$584
$622
$636
ALL to loans HIP
2.46%
2.46%
2.70%
2.96%
3.07%
ALL to NPLs HIP
85.19%
86.14%
55.54%
43.62%
41.04%
(Excluding
Covered
Loans) |
 PR
& US Business 18
1
Excludes covered loans
$ in millions (unaudited)
Net Interest Income
$310
$315
($5)
$73
$68
$5
Non Interest Income
91
103
(12)
17
13
4
Gross Revenues
Provision (non-covered)
51
231
(180)
5
(7)
12
Provision (covered WB)
Provision for loan losses
68
256
(188)
5
(7)
12
Expenses
244
238
6
59
56
3
Tax Expense (Benefit)
26
(236)
262
1
1
0
Net Income
NPLs (HIP) ¹
$441
$419
$22
$176
$195
($19)
NPLs (HIP + HFS) ¹
442
426
178
199
Loan loss reserve ¹
399
394
127
135
Assets
$27,090
$27,699
($609)
$8,782
$8,800
($18)
Loans (HIP)
18,739
18,890
5,763
5,830
Loans (HIP + HFS)
18,860
19,074
5,766
5,836
Deposits
20,401
20,719
(318)
6,042
6,096
(54)
NIM
5.26%
5.26%
0.00%
3.66%
3.43%
0.23%
PR
US
Q3 13
Q2 13
Variance
Variance
Q3 13
Q2 13
401
418
(17)
$63
$160
($97)
90
81
9
$25
$31
($6)
17
25
(8)
16
(151)
(214)
(21)
(8)
(67)
(70)
-
-
-
5 |
 Popular, Inc. Credit Ratings
•
Our
senior
unsecured
ratings
have
been
gradually
improving
since
2010:
•
Moody’s:
B1
Negative
Outlook
(Revised
October
2013)
•
Fitch:
BB-
Stable
Outlook
(Revised
January
2013)
•
S&P:
B+
Stable
Outlook
(Revised
December
2011)
•
October 2013: Moody’s revised outlook to negative
•
January
2013:
Fitch
raised
to
BB-
from
B+;
outlook
revised
to
stable
•
December 2012: Moody’s downgraded BPOP to B1; stable outlook assigned
•
April 2012: Moody’s placing most of the PR banks under review with the
possibility of downgrades, due to the state of the Puerto Rico economy
•
January 2012: Fitch raised BPOP’s outlook to positive
•
December
2011:
S&P
raised
its
ratings
on
BPPR
to
BB
from
BB-
and
changed
outlook to stable given revised bank criteria to regional banks
•
July 2011: S&P raised our senior unsecured rating by one notch to B+
•
As the P.R. economy stabilizes and our credit metrics improve, we should see
upward pressure on the ratings
19 |
 Financial Results
Financial Results
Third Quarter 2013
Third Quarter 2013 |