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1. Company Snapshot

1.a. Company Description

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and British Virgin Islands.The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit.It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases.


In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services.As of December 31, 2021, it operated 169 branches; and 616 ATMs in Puerto Rico, 23 ATMs in the Virgin Islands, and 91 ATMs in the United States Mainland.Popular, Inc.


was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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1.b. Last Insights on BPOP

The recent performance of Popular, Inc. has been driven by several positive factors. The company's Q4 2025 earnings beat estimates, with net interest income growth and fee expansion contributing to the strong results. Additionally, the bank's loan balances have been rising, further boosting its revenue. The company's management has also provided a positive 2026 outlook, citing continued net interest income growth and modest expense increases. Furthermore, Popular's valuation remains undemanding, providing a compelling opportunity for investors. The bank's solid profitability and stable credit trends have also been highlighted as key strengths.

1.c. Company Highlights

2. Popular Inc. Q1 2026 Earnings: Strong Growth, Solid Margins, Dividend Boost

Popular Inc. delivered a robust first‑quarter performance, reporting net income of $246 million and earnings per share of $3.78—an increase of $12 million and $0.25 from Q4 2025, and a 38% YoY jump. Net interest income rose to $670 million, up $13 million, as fixed‑rate asset repricing and a higher investment balance drove a 5‑basis‑point GAAP NIM expansion to 3.66% (P/E 10.59, P/TBV 1.51, Dividend Yield 2.01%). These figures underscore a resilient business model that balances margin growth with disciplined expense management (Staff, Q1 2026 Earnings Call).

Publication Date: Apr -26

📋 Highlights
  • Net Income and EPS Growth: Net income rose 38% to $246 million ($3.78 EPS), up 48% YoY, driven by higher net interest income and margin expansion.
  • Net Interest Income and Margin Expansion: NII increased $13 million to $670 million; net interest margin expanded 11 bps to 4.14% (taxable equivalent basis).
  • Capital Return Initiatives: Paid $0.75/share dividend, repurchased $155 million in stock, with tangible book value rising to $84.98/share.
  • Credit Quality Stability: NPL ratio fell to 1.17% (from 1.27% QoQ), with lower delinquencies and stable credit metrics despite elevated oil prices.
  • Guidance and Strategic Focus: Raised 2026 NII growth to upper end of 5-7% range; expenses guidance cut to 2-3% (from 3%), targeting 14% ROE over time.

Net Interest Income and Margin Expansion

The quarter’s $670 million net interest income reflected a 5‑basis‑point rise in the GAAP net interest margin to 3.66% and an 11‑basis‑point increase to 4.14% on a taxable equivalent basis. Fixed‑rate asset repricing and a higher investment balance were the primary catalysts, positioning the firm to meet the upper end of its 5‑7% NII guidance.

Capital Returns and Shareholder Value

Popular Inc. announced a $0.75 quarterly dividend and repurchased $155 million in common stock, reinforcing its commitment to shareholder returns. Tangible book value per share climbed to $84.98, up $2.33, driven by earnings and partially offset by capital return activity.

Credit Quality and Provisioning

Credit metrics remained stable, with the NPL ratio falling to 1.17% from 1.27% and the allowance for current losses rising to $124 million. Early delinquency, NPLs, and inflows were lower, while net charge‑offs were higher, indicating a healthy credit portfolio.

Guidance and Outlook

The company now expects 2026 NII growth at the upper end of its 5‑7% range, with full‑year expenses projected to rise 2‑3% versus the prior 3% guidance. The effective tax rate is anticipated at the low end of 15‑17%, and management will update capital actions before Q2’s call.

Capital Management and Ratings

With a CET1 ratio of 15.9%, Popular Inc. plans a controlled reduction in capital, targeting a 14% ROE through the cycle. Basel III proposals are expected to impact risk‑weighted assets by 7%, while the company maintains a positive outlook from S&P, Moody’s, and Fitch.

Economic Environment and Puerto Rico

Executives noted that elevated oil prices have not yet stressed credit quality, citing minimal impact in 2022. They highlighted Puerto Rico’s energy transition and the potential long‑term effects of sustained high oil prices on local and U.S. economies, while reaffirming confidence in the current portfolio.

3. NewsRoom

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Popular's Popularity With Mr. Market Isn't Surprising

May -03

Source: seekingalpha.com

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Popular: Attractive But Not Stable

May -01

Source: seekingalpha.com

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Popular, Inc.: A Strong Bank, But Not A Cheap Stock Anymore

Apr -30

Source: seekingalpha.com

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Volvo Car Still Targets Volume Growth as New Models Prove Popular

Apr -29

Source: wsj.com

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Vanguard Just Completed an 8-for-1 Stock Split on Its Most Popular Tech ETF. Here Is What VGT Investors Need to Know.

Apr -27

Source: 247wallst.com

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How Would These 3 Popular Bond ETFs Hold Up in a Stagflation Scenario?

Apr -27

Source: fool.com

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This Popular REIT ETF Just Hit $23 but Investors Should Watch the Fine Print

Apr -24

Source: 247wallst.com

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Popular Q1 Earnings Top Estimates on Higher NII, Expenses Decline Y/Y

Apr -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.70%)

6. Segments

Banco Popular De Puerto Rico

Expected Growth: 10%

Banco Popular de Puerto Rico's 10% growth is driven by a strong brand presence, diversified revenue streams, and a solid balance sheet. The bank's focus on digital transformation, expansion into new markets, and strategic partnerships also contribute to its growth. Additionally, a favorable economic environment in Puerto Rico, characterized by low unemployment and increasing tourism, supports the bank's growth momentum.

Popular United States

Expected Growth: 8%

Popular United States' 8% growth is driven by increasing demand for consumer loans, expansion of digital banking channels, and strategic acquisitions. Additionally, a strong brand presence, efficient cost management, and a favorable interest rate environment contribute to the company's growth momentum.

Corporate

Expected Growth: 6%

Popular, Inc.'s 6% corporate growth is driven by strategic expansion into digital banking, increasing demand for mortgage loans, and a strong presence in the Puerto Rican market. Additionally, the company's focus on cost reduction initiatives, investments in technology, and a solid capital position contribute to its growth momentum.

Eliminations

Expected Growth: 4%

Popular, Inc.'s 4% growth is driven by strategic acquisitions, expansion into new markets, and increased lending activities. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

7. Detailed Products

Banco Popular

A full-service bank offering personal and commercial banking services, including checking and savings accounts, credit cards, loans, and investment products.

Popular Securities

A brokerage firm offering investment products and services, including stocks, bonds, mutual funds, and retirement accounts.

Popular Insurance

An insurance company offering a range of insurance products, including auto, home, life, and health insurance.

E-Loan

An online lending platform offering personal loans, mortgages, and credit cards.

Popular Mortgage

A mortgage lender offering a range of mortgage products, including fixed-rate and adjustable-rate mortgages.

8. Popular, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Popular, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching between financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the regulatory barriers and capital requirements that make it difficult for new banks to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established banks and financial institutions competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.79%
Debt Cost 6.46%
Equity Weight 82.21%
Equity Cost 8.12%
WACC 7.82%
Leverage 21.63%

11. Quality Control: Popular, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Popular

A-Score: 6.8/10

Value: 6.7

Growth: 5.9

Quality: 7.1

Yield: 5.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
First Bank

A-Score: 6.8/10

Value: 7.1

Growth: 6.6

Quality: 8.2

Yield: 6.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Cathay Bank

A-Score: 6.3/10

Value: 6.0

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 4.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Citizens Financial Group

A-Score: 6.2/10

Value: 5.3

Growth: 5.2

Quality: 5.9

Yield: 7.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Fulton Financial

A-Score: 6.2/10

Value: 6.3

Growth: 6.3

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Synovus

A-Score: 5.8/10

Value: 7.0

Growth: 5.4

Quality: 7.4

Yield: 6.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

149.35$

Current Price

149.35$

Potential

-0.00%

Expected Cash-Flows