• In the first quarter of 2026, Popular, Inc. reported net interest income of US$670.18 million and net income of US$245.67 million, alongside net charge-offs of US$60.02 million.
• The stronger earnings, higher earnings per share, and completion of a US$374.05 million share repurchase program highlight management’s focus on shareholder returns despite rising credit costs.
• We’ll now examine how Popular’s higher first-quarter net income reshapes its existing investment narrative and risk-reward balance for investors.

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Popular Investment Narrative Recap

To own Popular, I think you need to believe the bank can keep translating its strong franchise in Puerto Rico and the U.S. into solid earnings while managing credit quality and funding costs. The latest quarter’s higher net income supports the earnings side of that view, but the rise in net charge-offs to US$60.02 million keeps credit risk front and center. Overall, this news does not materially change the near term thesis, but it does sharpen the focus on asset quality trends.

The completion of Popular’s US$374.05 million share repurchase program, including US$155.2 million in Q1 2026 alone, matters here because it amplifies the impact of higher earnings on each remaining share. For investors watching catalysts, that combination of stronger net interest income and a smaller share count tightens the link between core performance and per share results, even as rising credit costs remind you to keep an eye on the balance between capital returns and risk.

Yet, while earnings per share are moving higher, the uptick in net charge-offs is something investors should be aware of as it could signal...

Popular’s narrative projects $3.7 billion revenue and $1.1 billion earnings by 2029. This requires 8.2% yearly revenue growth and about a $268.3 million earnings increase from $831.7 million today.

Uncover how Popular's forecasts yield a $160.00 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community range from US$160 to about US$370 per share, showing just how far apart individual views can be. Against that backdrop, the recent increase in net charge-offs highlights a key risk to Popular’s earnings resilience that could materially influence how you interpret those contrasting valuations and the bank’s longer term performance potential.

Explore 2 other fair value estimates on Popular - why the stock might be worth just $160.00!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Popular research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Popular research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Popular's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.