Popular Stock Earnings Reports

Popular, Inc. reported a strong Q1 2026: net income of $246 million and EPS of $3.78, up sequentially and materially year-over-year. Performance drivers included higher net interest income (NII), modest margin expansion, lower operating expenses, and stable noninterest income. Net interest margin expanded (GAAP 3.66%; tax-equivalent 4.14%) and the bank expects 2026 NII growth at the upper end of its 5%–7% guidance driven by positive deposit trends in Puerto Rico and reinvestment into Treasuries. Ending loans were essentially flat ($39.3B) with modest mortgage growth in Puerto Rico and paydowns in U.S. construction/residential segments; consolidated loan growth for 2026 is expected at the low end of the prior 3%–4% range. Deposits rose to $67.6B (retail and commercial +$1.2B), deposit costs declined to 1.56% (ex-public deposits 1.09%), and Puerto Rico public deposits are expected to remain in $18B–$20B range. Credit quality remained favorable: NPL ratio improved to 1.17%, NCOs annualized ~61 bps (guided full-year 55–70 bps), and the ACL ratio modestly increased to 2.10% of loans. Tangible book value per share rose to $84.98; the firm repurchased $155M of stock in Q1, has ~$126M remaining under the current authorization (expected to be exhausted in Q2), and plans further capital actions including a potential dividend increase later in the year subject to approvals. Management highlighted continued investments in digital capabilities (Mi Banco marketplace), targeted product launches (corporate cards; programs for medical professionals), ongoing transformation and cost-efficiency initiatives, and vigilance on macro risks (notably sustained higher oil/commodity prices). They reiterated focus on sustainable, through-the-cycle ROCE/ROTE targets and careful, phased capital deployment.