Popular, Inc. Conference Call Presentation

Popular, Inc.
Conference Call Presentation
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EX-99.1 2 d380888dex991.htm POPULAR, INC. CONFERENCE CALL PRESENTATION

Exhibit 99.1
Financial Results Second Quarter 2012
1 de 24
7/23/12 1:04 PM
Popular, Inc. Conference Call Presentation
Forward Looking Statements

The informa9on contained in this presenta9on includes forward-looking statements within the meaning of the Private Securi9es Li9ga9on Reform Act of 1995. These forward-looking statements are based on managements current expecta9ons and involve risks and uncertain9es that may cause the Company's actual results to dier materially from any future results expressed or implied by such forward-looking statements. Factors that may cause such a dierence include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic condi9ons; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the scal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the rela9ve strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) compe99on in the nancial services industry; (viii) possible legisla9ve, tax or regulatory changes; (ix) the impact of the Dodd- Frank Act on our businesses, business prac9ce and cost of opera9ons; and (x) addi9onal Federal Deposit Insurance Corpora9on assessments. Other than to the extent required by applicable law, the Company undertakes no obliga9on to publicly update or revise any forward-looking statement. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2011 and other SEC reports for a discussion of those factors that could impact our future results. The nancial informa9on included in this presenta9on for the quarter ended June 30, 2012 is based on preliminary unaudited data and is subject to change.
2 de 24
7/23/12 1:04 PM
Q2 2012 Highlights
We remain on track in execu=ng our strategy

Improve credit Build our asset por\olio and maintain strong top line revenue Op9mize opera9ng expenses Con9nue improvements at BPNA
We made progress on various elements of this strategy in Q2 2012

Improvements in our credit outlook, with lower NPL inows and lower losses $500M in acquired loan por\olios with ac9ve pipeline of new opportuni9es Maintained strong NIM (Q2 improvement of 6bps overall, 17bps in PR) Strong capital ra9os with TCE at 9.09% and Tier One Common at 12.29%
We con=nue to see increased expected returns over the life of our FDIC covered loan porEolio and received a cash dividend from EVERTEC Notwithstanding this progress, we are facing headwinds that are impac=ng our expected performance
Loan origina9ons below expecta9ons due to weak market demand Higher collec9on costs Current nega9ve accre9on from the covered por\olio
2
3 de 24
7/23/12 1:04 PM
Q2 2012 Highlights
IMPROVED CREDIT
NPLs lower by $120 million to 7.56% of total loans Charge-os lower by 9% to $98 million PR commercial and construc9on NPL inows lower by $28 million or 30% Acquired $500 million of high quality loan to par9ally oset weak loan demand NII increased $4 million quarter over quarter Gain on sale of loans impacted by $27 million valua9on adjustment Personnel costs declined by $5 million QoQ Other opera9ng expenses increased $37million QoQ - $25 million due to early repo ex9nguishment and $13 million covered loan expense reimbursable by the FDIC Tax benet of $78 million in 2Q12 versus a $16 million expense in 1Q12 due to PR treasury tax agreement Cash inow of $131 million from EVERTEC cash dividend (reducing equity investment balance to $62 million) Increased amor9za9on of the FDIC indemnity asset
3
TOP LINE REVENUE
OPERATING EXPENSES
OTHER
4 de 24
7/23/12 1:04 PM
Financial Results (Unaudited)

$ in thousands (except per share data)
Net interest income Service fees & other oper. income (Loss) Gain on sale of investments, loans & trading Total revenues before FDIC income FDIC loss-share income (expense) Gross revenues Provision for loan losses (excluding covered loans) Provision for loan losses (covered WB loans) Total provision BPOP Net revenues Personnel costs Other opera9ng expenses Total opera9ng expenses (Loss) Income before Tax Income tax (benet) expense Net income Financial Ra9os EPS NIM
4
Q2 2012 $341,200 119,576 (28,427) 432,349 2,575 434,924 81,743 37,456 119,199 315,725 116,336 211,543 327,879 (12,154) (77,893) $65,739
Q1 2012 $337,582 129,710 9,453 476,745 (15,255) 461,490 82,514 18,209 100,723 360,767 121,491 174,676 296,167 64,600 16,192 $48,408
Variance $3,618 (10,134) (37,880) (44,396) 17,830 (26,566) (771) 19,247 18,476 (45,042) (5,155) 36,867 31,712 (76,754) (94,085) $17,331
$0.63 4.33%
$0.46 4.27%
$0.17 0.06%
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Signicant Quarterly Variances

$ in thousands
Service fees & other opera9ng income Gain/(loss) on sale of loans, investments & trading prots FDIC loss-share income (expense) Provision for loan losses - covered loans Personnel costs Other opera9ng expenses Taxes
Variance vs. Q1' 12 (10,134)
Comments
$6.7 million due to MSRs valua9on variance $6.5 million lower income from investments accounted for under the equity method Par9ally oset by $1.7 million higher credit card fees related to higher customer purchase ac9vity Nega9ve varia9on due to $31 million of combined valua9on adjustments and resolu9ons of loans held for sale $5 million in mortgage hedging costs Recogni9on of $10.7 million of reimbursable expenses $15 million mirror impact associated with higher provision expense of $19.2 million Oset by higher FDIC Indemnity Asset nega9ve accre9on of $8 million Mainly due to higher expected losses in certain pools $2 million in lower compensa9on costs given the early voluntary re9rement window eorts $3 million lower payroll taxes and health benets costs $25 million expense on early ex9nguishment of repos $13.3 million of reimbursable covered loan expenses $73 million benet related to PR Treasury tax agreement
5
(37,880)
17,830
19,247 (5,155) 36,867 (94,085)
6 de 24
7/23/12 1:04 PM
Consolidated Credit Summary (Excluding Covered Loans)

Con=nued credit quality improvements in key metrics:
NPLs declined by $120 million, down 7% from Q1 2012 NCOs declined for the third consecu9ve quarter to $98 million
Q2 12 vs Q1 12 Q2 12 vs Q2 11 % Q2 11 % $187 0.9% $20,658 $8 0.0% 55 42.3% 109 76 69.7% (53) -22.8% 400 (221) -55.3% $189 0.9% 21,167 ($137) -0.6% ($120) -0.7% ($10) -0.2% ($1) 0.0% 0.07x ($16) -0.1% 2.0% -7.1% -8.0% -9.3% -9.4% -1.2% -1.8% 9.2% -2.4% -3.3% 5.0% $1,625 7.86% $133 2.59% $96 1.85% 0.72x $690 3.34% 42.45% ($63) -0.3% ($35) -0.7% ($14) -0.3% 0.11x ($41) -0.2% -0.9% -3.9% -3.8% -26.3% -25.5% -14.6% -14.6% 15.3% -5.9% -6.0% -2.2%
$ in millions Loans Held to Maturity (HTM) Performing HFS NPL HFS Total Non Covered Loans Non-performing loans (NPLs) NPLs HTM to loans HTM Net charge-os (NCOs) NCOs to average loans HTM Provision for loan losses (PLL) PLL to total loans HTM PLL to NCOs Allowance for loan losses (ALL) ALL to loans (excl. LHFS) ALL to NPLs HTM
Q2 12 Q1 12 $20,666 $20,479 185 130 179 232 21,030 20,841 $1,562 7.56% $98 1.93% $82 1.58% 0.83x $649 3.14% 41.52% $1,682 8.21% $108 2.13% $83 1.61% 0.76x $665 3.25% 39.53%
7 de 24
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Credit Quality Overview (Non Covered Loans)
NPLs declined by $120 million, down 7% from Q1 2012 and 33% from Q3 2010 peak; lowest levels since Q1 2009. Signicant variances to peak levels are as follows:
Construc9on $739M or 90% Consumer $31M or 47% Mortgage $36M or 5%
Non-Performing Loans ($M)
Commercial & Construc=on NPL Inows ($M)
Total commercial and construc=on NPL inows decreased by $31 million or 22% compared to Q1 2012 driven by decreases across both regions
Third consecu9ve quarterly decrease Lowest level since 2009
NPL legacy por.olio and inow included within construc8on and commercial loan por.olio 7
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7/23/12 1:04 PM
Credit Quality Overview (Non Covered)

OREO and NPL HFS (SM)
NPL HFS decrease driven mainly by bulk sales completed during Q4 2010 and Q3 2011 OREO increase driven mainly by the PR mortgage loan por\olio
Over the last year and half, PR mortgage OREO disposi9on has averaged 81% of the UPB at default
9 de 24
7/23/12 1:04 PM
Credit Quality Overview PR Mortgage Loan PorEolio

Excluding repurchases from mortgage recourse obliga9on, credit trends improving since 2010
Increase NCOs driven by change in charge- o policy implemented in Q1 2012
$ in millions
AVG 90+ DPD 30 DPD% 90 DPD% NCO % PORTFOLIO (avg.) 2007 2008 2009 2010 2011 2012 YTD 2010 2011 2012 YTD
$2,349
Repurchases from recourse por\olio accounts for the majority of the NPL inow increase aper 2010
Purchases before 2010 were not material Trends have stabilized since Q4 11
2,394 2,556 3,074 3,741 4,131 102 378 506
12.1% 15.3% 21.0% 23.2% 19.1% 16.4% 71.1% 62.0% 60.3%
$121
171 296 426 438 400 60 177 218
5.2% 7.2% 11.6% 13.9% 11.7% 9.7% 58.5% 46.8% 43.1%
0.1% 0.1% 0.4% 0.6% 0.7% 0.9% 2.3% 0.8% 3.3%
PR Mortgage Recourse PorEolio ($M) Selling with credit recourse stopped in 2009 Inows/repurchases peaked in 2011
7.2
Total
$4,198
$4,092
$3,967
$3,835
$3,709
$3,588
$3,444
$3,282
$3,169
7.8
7.9
7.7
7.6
7.3
6.2
5.9
5.6
Q2 10
Q3 10
Q4 10
Q1 11 Q2 11 Portfolio
Q3 11 Q4 11 90+DPD%
Q1 12
Q2 12
Repurchases
9
$44
$33
$27
$63
$53
$53
$73
$50
$32
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7/23/12 1:04 PM
FDIC-Assisted Acquisi=on Day 1 Assump=ons

Covered loans accounted for under ASC 310-30 Day 1 Assump=ons
(Dollars in Millions)
Balances Covered Loan Balances Indemnity Asset Clawback Payable Total Expected Net Revenue Accretable Yield Accre9on of Indemnity Asset Clawback Accre9on Total net revenue 1,538.1 212.8 (81.2) $ 1,669.7 $ 4,909.6 2,425.9 (88.2)
Covered loan balances are the fair value of the expected cash flows to be received from borrowers net of any estimated losses Indemnityasset is the present value of the 80% reimbursement from the FDIC of expected losses Clawback payable is the present value of the total lump sum payment expected to be made to the FDIC given lower expected losses than the FDIC originally estimated Accretable yield is the difference between the fair value of loans at acquisition and expected future cash flows to be collected from borrowers Accretion of indemnityasset on Day 1 represented the difference between the present value and expected payments to be received from the FDIC Clawback accretion represents the difference between the present value and the lump sum payment expected to be made to the FDIC on June 2020 -payment estimated on Day 1 to be $169.4 million
10
11 de 24
7/23/12 1:04 PM
FDIC-Assisted Acquisi=on is performing beker than expected

Covered loans accounted for under ASC 310-30 Revised net revenue expected to be $2.03 billion exceeding day 1 assump=ons by $362.5 million
Day 1 expected net revenues ($1,669.7) Actual results plus forecasted impact ($2,032.2)
(Dollars in Millions) Day 1 Assump=ons $ 1,669.7 Net Revenue Impact Actual/Revised Forecast** Variance $ 2,032.2 $ 362.5 276.6 309.0 65.2 650.8 401.6 430.8 549.0 1,381.4 $ 2,032.2 20.9 11.9 (47.0) (14.2) 44.2 131.7 200.8 376.7 $ 362.5
Day 1
2010 2011 YTD June 30, 2012 Total recognized to date Projected through NSF LSA (Exp. 4/15)* Projected through SF LSA (Exp. 4/20)* Remaining life aser LSA* Total expected net revenue remaining Total net revenue
255.7 297.1 112.2 665.0
357.4 299.1 348.2 1,004.7 $ 1,669.7
2 4 3
1. 2.
Accelerated resolu9on of large loans Impact of net provision expense on specic loan pools and nega9ve accre9on of the indemnity asset due to lower expected combined losses Net revenues to date are $651 million including $36 million of net provision expense vs. a day 1 assump9on of $665 million Aper June 30, 2012 the net revenue is expected to exceed day 1 es9mates by $377 million (see table).
3. Forecast 4.
*Forecast excluding poten9al net provision expense. Non single -family (NSF), single family (SF)loss share agreement (LSA). Maturity of LSA dates 4/2015 (NSF) and 4/2020 (SF). **See appendix for detail
Portrayal of actual results through June 30, 2012 and current projec=ons. All informa=on subject to change based on actual and es=mated cash ows and losses from covered porEolio. Quarterly recast process can generate signicant dierences based on actual and projected results.
11
12 de 24
7/23/12 1:04 PM
Conclusion
2012 Strategy
Further improve credit-risk prole Con9nue to add low-risk assets Con9nue eciency eorts Con9nue improvement at BPNA
Robust capital posi=on con=nues to improve Revenue-genera=ng capacity remains strong but headwinds are s=ll present
Economy in Puerto Rico stabilizing but asset genera9on s9ll challenging
2012 target range net income of $210-$225 million

Incorporates unusual Q2 events (i.e., the tax benet, and the aper tax impact of the early repo termina9on and the writedown of our held-for-sale por\olio)
12
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7/23/12 1:04 PM
Appendix
14 de 24
7/23/12 1:04 PM
P.R. Economic Overview

Ocial forecast calls for rst posi9ve GNP growth since 2005. Forecast is +0.9% (scal 2012) and +1.1% (scal 2013) In the last several quarters, indicators such as retail and auto sales, home sales, cement sales and sales & use tax among others have improved Unemployment rate 14.2%, lowest since March 2009
Recent Trends
Approaching a balanced budget: projected scal 2013 budget decit of $333 million, smallest since 2004 and is expected to be balanced by scal 2014 from $3b in 2009 Tax relief for individuals: comprehensive tax reform has cut taxes on individuals by 25%, nanced primarily with a tax on mul9na9onal (U.S.) corpora9ons with local opera9ons Corporate rate reduced from 41% to 30% Investment spending stabilizing: 11.5% increase of real gross domes9c investment in FY 2010-11 marks largest increase in more than a decade Housing S9mulus: $235 million (extended through 12/31/12) Tourism Projects: $1.1B (30 projects, St. Regis, Ritz) Public/Private Partnerships (PPPs): $1.4B billion toll roads, $878 million schools, LMM Airport nal bids received July 2012
1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000
GDP Composi=on by sector

1.7% 6.0% 2.9% 8.0% 8.6% 0.6% 46.4%
Manufacturing Finance, insurance and real estate Services Government Trade Tourism
12.5% 13.3%
Transportation and other public utilities Construction and Mining Agriculture
2011 GDP- $98.8B
PR Labor Market
2012 Monthly average up until May
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
6% 4% 2% 0% -2% -4% -6% -8%
Total Jobs (Monthly Avg)
Avg Total Jobs Growth %

14
Source: Government Development Bank of PR bgfpr.com, PR Finance Housing Authority, PR commissioner of Financial Institutions
15 de 24
7/23/12 1:04 PM
Who We Are Popular, Inc.

Franchise

Financial services company Headquartered in San Juan, Puerto Rico
Puerto Rico operations
Assets = $36.6.bn
Summary Corporate Structure
$37 billion in assets (top 50 bank holding company in the U.S.) $25 billion in total loans $27 billion in total deposits 279 branches serving customers in Puerto Rico, New York, California, Florida, Illinois, U.S. Virgin Islands, and New Jersey NASDAQ 9cker symbol: BPOP Market Cap: $1.70 billion1
Banco Popular de Puerto Rico

Assets = $28.0bn
Popular Securities, Inc.
Popular North America, Inc.
Popular Insurance, Inc.
Banco Popular North America

Popular Mortgage, Inc. Popular Auto, Inc.
Assets = $8.6 bn
U.S. banking operations
Selected equity investments (first two under corporate segment and third under PR):
PRLP 2011 Holdings

Transac9on processing, business processes outsourcing 48.5% stake 2011 EBITDA of $132.96mm Dominican Republic bank 19.99% stake Q2 2012 total assets ~$3.3bn Construc9on and commercial loans vehicle 24.9% stake
Source: Company lings, SNL Financial Note: Financial data as of June 30, 2012 1 As of June 30, 2012
Q1 2012 EBITDA $36.23mm

15
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7/23/12 1:04 PM
P.R. Franchise Value Built Over 118 Years
Indisputable, sustained market leadership

Market Share Trend (2000 2012)
Total Deposits (Net of Brokered) Total Loans
Source: Puerto Rico Oce of the Commissioner of Financial Ins9tu9ons
Category Total Deposits (Net of Brokered) Total Loans Commercial & Construc9on Loans Credit Cards Mortgage Loan Produc9on Personal Loans Auto Loans/Leases Assets Under Management Mortgage Loan Servicing Por\olio
Market Posi=on as of Q1 2012 1 1 1 1 1 2 3 3 1
Market Share as of Q1 2012 39% 35% 40% 45% 32% 32% 16% 14% $22.4B
16
Top Compe=tor Ins=tu=on/Group Credit Unions FirstBank FirstBank MBNA Sco9abank Credit Unions Reliable UBS Doral Share 12% 16% 22% 28% 13% 52% 25% 48% $7.8B
Source: Puerto Rico Oce of the Commissioner of Financial Ins9tu9ons & 10K reports
17 de 24
7/23/12 1:04 PM
PR & US Business
$ in millions (Unaudited) Net Interest Income Non Interest Income Gross Revenues Provision (non-covered) Provision (covered WB) Provision for loan losses Expenses Tax Expense Net Income (Loss) NPLs (HTM) NPLs (HTM + HFS) Loan loss reserve Assets Loans (HTM) Loans (HTM + HFS) Deposits NIM
1
Q2 12 $298 85 383 66 38 104 267 (74) $86 $1,276 1,453 564 $27,721 18,932 19,293 21,304 5.07%
PR Q1 12 $290 114 404 68 18 86 234 17 $67 $1,343 1,570
Variance Q2 12 $8 $70 (29) 15 (21) (2) 18 33 (91) $19 ($67) (117) 85 15 15 58 1 $11 $286 288
US Q1 12 Variance $74 ($4) 16 (1) 90 15 15 65 1 $9 (5) 0 0 (7) 0 $2
20 -
- -
$338 ($52) 344 (56) 217 (15) $8,665 ($21) 5,618 132 5,626 128 6,247 (72) 3.78% -0.23%
586 (22) 202 $28,027 ($306) $8,644 19,082 19,436 21,040 4.90% (150) (143) 264 0.17% 5,750 5,754 6,175 3.55%
Excludes covered loans 17
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7/23/12 1:04 PM
Loan PorEolio Composi=on-

Puerto Rico ($ in millions) Construc9on Commercial Leasing Consumer Legacy Mortgage Total non-covered Covered Loans WB Total Q2 2009
(Held in PorEolio- Q2 2012)

US Total Q2 2009 Q2 2012 % of %of total Q2 2012 total HIP HIP 6% 47% 3% 18% 8% 18% 100% 0% 100% 1% 39% 2% 16% 2% 24% 84% 16% 100%
Q2 2012 Q2 2009 Q2 2012 Q2 2009
1,317 202 272 48 1,589 250 7,229 6,163 4,495 3,440 11,724 653 538 - - 15,278 - - - 653 9,603 538
3,220 3,199 1,099 666 4,319 3,865 1,876 510 1,876 510 20,666 4,016 2,859 4,814 1,586 1,086 4,445 5,900 14,916 9,328 5,750 24,606 4,016 - - -
15,278 18,932 9,328 5,750 24,606 24,682
Less risky loan composition Construction loan portfolio is down significantly since Q2 2009 Loans with an FDIC guarantee amount to 16% of all loans Legacy portfolio includes loans from the US exited business lines*
*The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.
18
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7/23/12 1:04 PM
Consolidated Credit Summary (Excluding Covered Loans)

Con=nued credit quality improvements in key metrics:
NPLs declined by $120 million, down 7% from Q1 2012 NCOs declined for the third consecu9ve quarter to $98 million
$ in millions Loans Held to Maturity (HTM) Performing HFS NPL HFS Total Non Covered Loans Non-performing loans (NPLs)
Commercial Construc8on Legacy Mortgage Consumer
Q2 12 Q1 12 $20,666 $20,479 185 130 179 232 21,030 20,841 $1,562

$767 $68 $55 $633 $40
Q2 12 vs Q1 12 % $187 0.9% 55 42.3% (53) -22.8% $189 0.9% ($120)

($52) ($2) ($24) ($34) ($7)
Q2 12 vs Q2 11 Q2 11 % $20,658 $8 0.0% 109 76 69.7% 400 (221) -55.3% 21,167 ($137) -0.6% $1,625
$740 $119 $124 $588 $54
$1,682
$819 $70 $79 $667 $47
-7.1%
-6.3% -2.9% -30.7% -5.1% -14.9%
($63)
$27 ($51) ($69) $45 ($14)
-3.9%
3.7% -42.8% -56.0% 7.6% -25.9%
NPLs HTM to loans HTM Net charge-os (NCOs)

Commercial Construc8on Legacy Mortgage Consumer
7.56% $98
$40 $1 $5 $18 $34
8.21% $108
$54 $0 $4 $17 $33
-0.7% ($10)
($15) $1 $1 $1 $1
-8.0% -9.3%
-25.9% NM 25.0% 5.9% 3.0%
7.86% $134
$69 ($5) $17 $11 $42
-0.3% -3.8% ($36) -26.9%

($29) $6 ($12) $7 ($8) -42.5% -119.6% -67.9% 62.6% -19.9%
NCOs to average loans HTM Provision for loan losses (PLL) PLL to total loans HTM PLL to NCOs Allowance for loan losses (ALL) ALL to loans (excl. LHFS) ALL to NPLs HTM
1.93% $82 1.58% 0.83x $649 3.14% 41.52%
2.13% $83 1.61% 0.76x $665 3.25% 39.53%
-0.2% ($1) 0.0% 0.07x ($16) -0.1% 2.0%

19
-9.4% -1.2% -1.8% 9.2% -2.4% -3.3% 5.0%
2.59% $96 1.85% 0.72x $690 3.34% 42.45%
-0.7% -25.5% ($14) -14.6% -0.3% -14.6% 0.11x 15.3% ($41) -5.9% -0.2% -6.0% -0.9% -2.2%
20 de 24
7/23/12 1:04 PM
Coverage Ra=o
The Reserve to NPL coverage ra=o of 42% does not take into account the high percentage of individually analyzed loans and life=me charge-os
Total NPLs $1,562 Individually Analyzed $763
Coverage Ra=o (CR) : Adjusted Coverage Ra=o (ACR) : Mort.
NPLs Life=me NCOs Reserve CR ACR
1
$ in millions
Collec=vely Analyzed $799

5% Coverage Ra=o (CR) : Adjusted Coverage Ra=o (ACR) : Mort. 403 59 119 30% 44% Comm. 3 356 130 328 35% 71% Const. 3 8 7 15 100% 188%
2 1
79% 101% Cons. 32 0 148 458% 458%
35% Cons. 7 0 1 14% 14%

20
Comm. 3 454 158 6 1% 36%
Const. 3 71 69 0 0% 97%
230 11 30 13% 18%
Allowance to Loan Losses / Non-performing Loans 2 Allowance to Loan Losses + Life9me Charge-os / Non-performing Loans 3 Includes Legacy loans
21 de 24
7/23/12 1:04 PM
FDIC-Assisted Acquisi=on detail:

Covered loans accounted for under ASC 310-30
Revenue Impact
(Dollars in Millions)
Balance Sheet Impact

Balances Day 1 Covered Loan Balances Indemnity Asset Clawback Payable Balances June 30, 2012
739.5 (338.3) (35.7) (3.0) 362.5 2,032.2 650.8
Day 1 Assump=ons Accretable Yield Amor9za9on of Indemnity Asset Provision Expense (embedded in above gures in Day 1) Clawback Accre9on Day 1 Assump=on of Net Revenue Changes to Revenue Assump8ons through recast process Increase in cash ow on loans (accretable yield) Impact of lower projected losses (reduce IA) Provision Expense, net of mirror accoun9ng (through 6/30/12) Decrease in expected losses (increase clawback) Net Changes to Day 1 Assump=ons Revised Net Revenue Assump=ons Net Revenue Recognized since Day 1 through June 30, 2012 Pending net revenue to be recognized as of June 30, 2012 Accretable Yield Amor9za9on of Indemnity Asset Provision Expense (embedded in recast process) Clawback Accre9on Net revenue to be recognized $ 1,538.1 212.8 - (81.2) 1,669.7
$ 4,909.6 2,425.9 (88.2)
Covered Loan Balances Indemnity Asset Allowance Clawback Payable
$ 3,715.5 1,631.6 (94.0) (100.2)
1,574.9 (121.3) - (72.2) $ 1,381.4
Portrayal of actual results through June 30, 2012 and current projec=ons. All informa=on subject to change based on actual and es=mated cash ows and losses from covered porEolio. Quarterly recast process can generate signicant dierences based on actual and projected results. 21
22 de 24
7/23/12 1:04 PM
Credit Ra=ngs Update
Our senior unsecured ra9ngs have been gradually improving since 2010: Moodys: S&P: Fitch: Ba1 B+ B+ Nega9ve Outlook Stable Outlook Posi9ve Outlook
April 2012: Moodys placing most of the PR banks under review with the possibility of downgrades, due to the state of the Puerto Rico economy January 2012: Fitch raised BPOPs outlook to posi9ve December 2011: S&P raised its ra9ngs on BPPR to BB from BB- and changed outlook to stable given revised bank criteria to Regional banks July 2011: S&P raised our senior unsecured ra9ng by one notch to B+ As the P.R. economy stabilizes and our credit metrics improve, we should see upward pressure on the ra9ngs
22
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7/23/12 1:04 PM
Financial Results Second Quarter 2012
24 de 24
7/23/12 1:04 PM

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Popular, Inc.

Conference Call Presentation

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EX-99.1 2 d380888dex991.htm POPULAR, INC. CONFERENCE CALL PRESENTATION

Financial Results Second Quarter 2012