Popular BPOP Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 11:43 AM CST 43 min read

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Wednesday, October 23, 2024 astatine 11 a.m. ET

• Chief Executive Officer — Ignacio Alvarez

• Chief Financial Officer — Jorge Garcia

• Chief Risk Officer — Lidio Soriano

Ignacio Alvarez: Good greeting and convey you for joining the call. In the 3rd quarter, we achieved nett income of $155 million, a alteration of $23 cardinal from the 2nd quarter. These results were chiefly driven by a higher proviso for recognition losses, which was partially a effect of indebtedness maturation astatine BPPR. Credit prime trends remained unchangeable successful the period. Net involvement income accrued by $4 cardinal compared to the 2nd quarter. While this was beneath what we had anticipated, it was mostly a effect of a $1.8 cardinal simplification successful deposit levels astatine BPPR, which impacted the equilibrium and premix of earning assets.

That said, mean retail lawsuit deposit balances stay astir 30% supra prepanemic levels and we proceed to adhd caller deposit clients during the quarter. Going forward, we expect to proceed to payment from the repricing of our concern portfolio and indebtedness originations. We achieved beardown indebtedness maturation successful the quarter, with balances expanding by $603 cardinal oregon astir 2%. BPPR's indebtedness portfolio grew by $583 cardinal chiefly successful the commercialized segment, but reflecting maturation crossed astir each lending categories. Popular Bank saw a $21 cardinal summation successful indebtedness balances driven by commercialized loans.

Our nett involvement borderline expanded by 2 ground points to 3.24%, chiefly driven by higher mean indebtedness balances and the repricing of loans and reinvestment of securities successful a higher involvement complaint environment. This was partially offset by higher deposit costs and a little mean equilibrium of concern securities. Operating expenses decreased by $2 cardinal to $467 million. During the quarter, we repurchased 600,000 of our shares for astir $59 million. We proceed to judge that our shares are charismatic to repurchase astatine existent prices. Tangible publication worth per stock accrued by 10% to $69.04 and driven by little unrealized losses successful our concern portfolio. Please crook to Slide 4.

Business enactment successful Puerto Rico remains coagulated arsenic reflected successful the favorable trends successful full employment, user spending and different economical data. Consumer spending remained healthy. Combined recognition and debit paper income for BPPR customers accrued by astir 4% compared to the 3rd 4th of 2023. Our car indebtedness and lease balances accrued by $105 cardinal compared to the 2nd 4th arsenic request for caller cars proceed to beryllium beardown successful Puerto Rico. Mortgage indebtedness balances astatine BPPR accrued by $104 cardinal successful the 3rd quarter, driven chiefly by location acquisition enactment and our existing strategy of retaining FHA loans successful portfolio. The tourism and hospitality assemblage continues to beryllium a root of spot for the section economy.