Wednesday, November 21, 2018

Popular Inc. reports net income of $140.6 million for 3rd quarter

By on October 25, 2018

SAN JUAN – Popular Inc., the leading financial institution in Puerto Rico, reported a net income of $140.6 million for the third quarter ended Sept. 30, compared to a net income of $279.8 million and an adjusted net income of $121.3 million for the second quarter ended June 30.

Popular’s principal subsidiary, Banco Popular de Puerto Rico, provides retail, mortgage and commercial banking services in Puerto Rico and the U.S. Virgin Islands. It also offers auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through subsidiaries. Stateside, Popular provides retail, mortgage and commercial banking services through its New York-chartered banking subsidiary, Popular Bank, which has branches in New York, New Jersey and Florida.

“We delivered solid results for the quarter, as we continued to build on the positive momentum created during the first half of the year. We achieved strong top line revenue once again, with net interest income growing by $37 million. These results include the positive contribution of the Reliable acquisition which closed on August 1. Our credit metrics in Puerto Rico are trending favorably, reflecting the steady recovery of the Puerto Rico economy following the impact of Hurricanes Irma and Maria in September of 2017. We are also pleased with the growth of our commercial loan portfolio in our mainland U.S. operation and the execution of several capital actions during the quarter,” Ignacio Álvarez, president and CEO said.

Popular held a conference call to discuss its financial results Wednesday. A replay of the webcast and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com, as well as the Q3 2018 Financial Press Release,  Q3 2018 Investor Presentation and Q3 2018 Financial Exhibits.

The following highlights were pulled from the financial institution’s earnings release:
  • Net income of $140.6 million for the third quarter of 2018, compared to a net income of $279.8 million and an adjusted net income of $121.3 million for Q2 2018
  • Net interest margin of 4.07% in Q3 2018, compared to 3.81% in Q2 2018
  • Credit Quality:
    • Non-performing loans held-in-portfolio (“NPLs”) decreased by $10.7 million from Q2 2018; NPLs to loans ratio at 2.4% vs. 2.6% in Q2 2018;
    • Net charge-offs (“NCOs”) increased by $6.1 million; NCOs at 1.00% of average loans held-in-portfolio vs. 0.95% in Q2 2018;
    • Provision expense of $54.4 million vs. $60.1 million in Q2 2018;
    • Allowance for loan losses of $633.7 million vs. $643.0 million in Q2 2018;
    • Allowance for loan losses to loans held-in-portfolio at 2.39% vs. 2.61% in Q2 2018; and
    • Allowance for loan losses to NPLs flat at 100.2%.
  • Common Equity Tier 1 ratio of 16.20%, Common Equity per Share of $51.77 and Tangible Book Value per Share of $44.62 at September 30, 2018

 

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