PoPular, Inc. rePorts ProfIts for Q2

Despite inflation, high interest rates Popular Inc. reports profits for Q2

Still, the institution suffered a slight dip in revenues

Madison Choudhry, Special to The Weekly Journal

Popular 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 growth in loan and investment portfolios… loan growth was broad based with balances increasing in all categories, except mortgages.” BPPR experienced growth in commercial loans despite the anticipated cancellation of the

Payback Protection Program (PPP) loans. Looking at quarter-over-quarter results the corporation’s loan portfolio increased by $654 million. Although Puerto Ricans are facing record high inflation compounded by the increasing price of food and gas prices it was reported consumer spending remained strong during the quarter and deposit balances continued to grow. “Credit quality remained strong with net charge offs at near record lows, and we continued to reduce our nonperforming loans,” Álvarez said. Looking toward the future

When pressed about the future endeavors of BPPR, Álvarez asserted, “our liquidity and capital positions remain strong, which provide us the flexibility to continue to invest for growth in the future while we continue returning capital to our shareholders.” In addition, Popular Inc. has agreed that Evertec, the company responsible for “ATH mobil,” is no longer deemed a “subsidiary” for purposes of the Bank Holding Company Act. This action includes reducing Popular’s voting interest in Evertec to 4.5% over the next three months through either the sale of shares or conversion to non-voting preferred shares. The new agreement also includes a 10-year extension of the Merchant Acquiring Independent Sales Organization Agreement (the “ISO Agreement”), a 5-year extension of the ATH Network Participation Agreement and a 3-year extension of the Master Services Agreement. In addition, it also calls for the sale to Popular, Inc. of certain assets in exchange for approximately 4.6 million shares of Popular owned Evertec stock.

“We are committed to staying vigilant regarding the possible negative impacts of record inflation, higher interest rates and the war in Ukraine,” said Álvarez. Despite the current state of financial affairs,

Ignacio Álvarez, CEO of Popular, Inc., justify the drop in revenues due to credit loss provisions associated with the actions taken during the COVID-19 pandemic. “We earned $211.4 million in net

In fact, income, with increases in both net interest income and nonAlthough interest income as compared to Puerto Ricans are facing record high the first quarter.” inflation, it was Ignacio Álvarez, CEO of Popular, Inc. reported consumer spending remained strong during the Álvarez emphasized, “we are still seeing growth quarter and deposit in the U.S. and Puerto Rico with a historically balances continued strong employment market and healthy consumer to grow. deposit and spending levels.” “In Puerto Rico we continue to benefit from the impact of federal disaster relief spending. We are confident in our ability to continue to deliver results for our shareholders at the same time as we invest in our people, businesses and communities,” Álvarez said in a reassuring tone. A replay of the webcast describing Álvarez report will be archived in Popular’s website.