Popular (BPOP) investor relations material

Executive summary

• Net income was $266.3 million, down $12 million QoQ and up from $211.3 million in Q3 2025; diluted EPS was $4.21, down 3% QoQ and up 34% YoY.

• ROTCE was 15.80%, versus 17.02% in Q2 2026 and 13.06% in Q3 2025; CET1 was 16.06% at quarter-end.

• Portfolio loans grew $293 million to $40.0 billion; deposits fell $1.5 billion to $68.7 billion, largely due to lower Puerto Rico public-sector balances.

Financial highlights

• Net interest income was $698.9 million, up $5.5 million QoQ and $52.4 million YoY, supported by investment securities and commercial loan income.

• Non-interest income was $175.7 million, down $4.9 million QoQ and up $4.5 million YoY; it included a $5 million commercial loan refinancing benefit.

• Operating expenses rose $21.5 million QoQ to $505.6 million, mainly from personnel costs, profit sharing and incentives.

• Provision for credit losses fell $7.3 million QoQ to $58.6 million.

• Average total deposits increased $502 million QoQ, while average customer deposits excluding Puerto Rico public deposits declined $619 million.

Outlook and guidance

• FY 2026 net interest income growth guidance is 8.5%; growth is expected to continue in 2027, supported by investment portfolio repricing.

• FY 2026 loan growth guidance is 2%, reflecting lower auto and lease activity and more moderate commercial growth.

• FY 2026 operating expense growth guidance is 2%, including the maximum profit-sharing contribution; effective tax rate guidance is 14%.

• Q4 non-interest income guidance is $170 million; Puerto Rico public deposits are expected to range from $20 billion to $22 billion through year-end.

• FY 2026 net charge-offs are expected at 80–90 bps; initial 2027 expectation is 60–75 bps, with formal guidance due in January.