The following is a summary of the Popular, Inc. (BPOP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Popular, Inc. reported a strong Q2 with a net income of $178 million, a $43 million increase from the adjusted prior period.

• Net interest margin improved by 6 basis points to 3.22%, mainly driven by higher average loan balances and the repricing of loans and securities.

• Loan growth was reported at 1.5% year-to-date, led primarily by BPPR with growth across nearly all categories including commercial lending, auto, and mortgage originations.

• Noninterest income increased slightly by $2 million to $166 million, driven primarily by higher credit card and debit card fees.

• The provision for credit losses was $47 million, down $26 million from the previous quarter.

Business Progress:

• Popular announced a 13% increase in its quarterly common stock dividend from $0.62 to $0.70 per share starting Q1 2025 and a $500 million common stock repurchase authorization.

• Consumer spending and auto loan balances continued to increase, reflecting economic strength, especially in Puerto Rico.

• Mortgage loan balances at BPPR grew by $107 million in the quarter, driven by home purchase activity.

• Investment in a solar farm in Puerto Rico that generates electricity for approximately 7,000 homes highlights a commitment to renewable energy and community development.

Opportunities:

• Positive economic indicators and an anticipated support from significant federal funds expected to be disbursed over the coming years, suggest a favorable business environment.

• Continued strong demand in Puerto Rico for new cars and ongoing consumer spending growth reflect vibrancy in the marketplace that could support further business expansion.

Risks:

• Credit quality, particularly in the U.S. market, remains uncertain with slower loan growth expected, predominantly due to a cautious approach to commercial real estate lending.

More details: Popular IR

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