Overview

• Puerto Rico bank reported Q2 net income and EPS up both sequentially and yr/yr

• Company raised quarterly dividend 20% and authorized new $1 bln share buyback

• CEO Javier D. Ferrer to retire effective Aug. 31, 2026

Outlook

• Popular raises 2026 net interest income growth outlook to 8%-9% from 5%-7%

• Company lifts non-interest income guidance to $165 mln-$170 mln per qtr for 2026

• Popular expects loan growth at low end of prior 3%-4% range for 2026

Result Drivers

• NET INTEREST INCOME - Higher net interest income was driven by increased income from investment securities and commercial loan growth, as well as one additional day in the quarter

• FEE INCOME - Non-interest income rose due to higher credit and debit card fees, supported by strong transaction activity and higher purchase volumes, and increased income from investments

• OPERATING EXPENSES - Operating expenses increased, reflecting higher performance-based compensation and increased business promotion expenses tied to credit card rewards and transaction activity

Company press release: ID:nBw3Xmggwa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$4.35
Q2 Net Income		$278 mln
Q2 Net Interest Income		$693.42 mln
Q2 Credit Loss Provision		$65.87 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 $189.00, about 8.7% above its July 22 closing price of $173.89

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 22 - Puerto Rico's First BanCorp Q2 profit rises on loan growth

• July 21 - Capital One second-quarter profit rises on higher interest income

• July 21 - Synchrony Q2 net interest income rises on lower liability costs, higher loan yields

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