Overview

• Puerto Rico bank's Q1 net income and EPS rose from prior quarter

• Net interest income increased, driven by lower deposit costs and higher U.S. Treasury income

• Company repurchased 1.16 mln shares for $155 mln in Q1

Outlook

• Popular says Puerto Rico and U.S. economies remain resilient with healthy business performance

• Company says it is investing in operational capabilities to support strategic objectives

• Popular says it is focused on maintaining a disciplined approach amid macroeconomic uncertainty

Result Drivers

• LOWER DEPOSIT COSTS - Net interest income rose mainly due to reduced interest expense on deposits, particularly Puerto Rico public deposits

• HIGHER U.S. TREASURY INCOME - Increased income from U.S. Treasury securities contributed to higher net interest income

• LOWER OPERATING EXPENSES - Operating expenses declined, mainly due to lower personnel costs, reduced business promotion expenses, and lower professional fees

Company press release: ID:nBw6xRVDpa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$3.78
Q1 Net Income		$245.67 mln
Q1 Net Interest Income		$670.18 mln
Q1 Credit Loss Provision		$75.89 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Popular Inc is $156.00, about 5.2% above its April 22 closing price of $148.30

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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