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/ Wednesday, August 3, 2022
Despite inflation, high interest rates Popular Inc. reports profits for Q2
Still, the institution suffered a slight dip in revenues
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Madison Choudhry, Special to The Weekly Journal
opular Inc. has reported a net income of $211.4 million for its second quarter. This is a slight dip from the $218 million recorded for the same period this time last year. “We are very pleased with our results for the second quarter. We earned $211.4 million in net income, with increases in both net interest income and non-interest income as compared to the first quarter. Our net interest income increased by $39.6 million to $533.9 million,” said Ignacio Álvarez, CEO of Popular, Inc., the parent company of Banco Popular de Puerto Rico (BPPR). Álvarez, justify the drop in revenues due to credit loss provisions associated with the actions taken during the COVID-19 pandemic. In regards to the net interest increase, Álvarez believes it was driven by “improved margin and Ignacio Álvarez, CEO of Popular, Inc., justify the drop in revenues due to credit loss provisions associated with growth in loan and investment portfolios… loan the actions taken during the COVID-19 pandemic. growth was broad based with balances increasing the company responsible for “ATH mobil,” is no in all categories, except mortgages.” longer deemed a “subsidiary” for purposes of the BPPR experienced growth in commercial Bank Holding Company Act. This action includes loans despite the anticipated cancellation of the reducing Popular’s voting interest in Evertec to Payback Protection Program (PPP) loans. Looking 4.5% over the next three months at quarter-over-quarter results through either the sale of shares the corporation’s loan portfolio or conversion to non-voting increased by $654 million. preferred shares. Although Puerto Ricans are The new agreement also facing record high inflation Although includes a 10-year extension compounded by the increasing Puerto Ricans are of the Merchant Acquiring price of food and gas prices it facing record high Independent Sales Organization was reported consumer spending inflation, it was Agreement (the “ISO Agreement”), Ignacio Álvarez, CEO of Popular, Inc. remained strong during the reported consumer a 5-year extension of the ATH quarter and deposit balances spending remained Network Participation Agreement continued to grow. “Credit quality strong during the and a 3-year extension of the Álvarez emphasized, “we are still seeing growth remained strong with net charge quarter and deposit Master Services Agreement. In in the U.S. and Puerto Rico with a historically offs at near record lows, and we balances continued addition, it also calls for the sale strong employment market and healthy consumer continued to reduce our nonto grow. to Popular, Inc. of certain assets deposit and spending levels.” performing loans,” Álvarez said. in exchange for approximately 4.6 “In Puerto Rico we continue to benefit from Looking toward the future million shares of Popular owned the impact of federal disaster relief spending. When pressed about the future Evertec stock. We are confident in our ability to continue to endeavors of BPPR, Álvarez “We are committed to staying vigilant regarding deliver results for our shareholders at the same asserted, “our liquidity and capital positions the possible negative impacts of record inflation, time as we invest in our people, businesses and remain strong, which provide us the flexibility to higher interest rates and the war in Ukraine,” said communities,” Álvarez said in a reassuring tone. continue to invest for growth in the future while A replay of the webcast describing Álvarez we continue returning capital to our shareholders.” Álvarez. Despite the current state of financial affairs, report will be archived in Popular’s website. In addition, Popular Inc. has agreed that Evertec,
In fact,
“We earned $211.4 million in net income, with increases in both net interest income and noninterest income as compared to the first quarter.”
