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Executive summary

• Net income for Q2 2026 was $278 million, up 13% sequentially and 32% year-over-year, driven by higher net interest income, increased non-interest income, and balance sheet growth.

• ROTCE improved to 17.02% from 15.46% in Q1 2026, reflecting strong capital generation and operational execution.

• CEO Javier Ferrer announced his retirement effective August 31, 2026, with Jorge García named as successor, supported by a robust succession plan.

• Strategic initiatives focused on digital transformation, customer experience, and targeted segment growth in Puerto Rico and the U.S.

• Total assets reached $79.0B, up $3.7B from year-end 2025, mainly due to growth in AFS securities and loans.

Financial highlights

• Net interest income rose to $693 million, up $23 million from Q1 2026 and $62 million year-over-year, with NIM stable at 3.66% GAAP and 4.17% taxable equivalent.

• Non-interest income increased to $181 million, up $15 million from Q1 2026, mainly from higher card and asset management fees.

• Operating expenses were $484 million, up $17 million sequentially, mainly due to higher personnel and promotion costs.

• Tangible book value per share rose to $87.94, up $5.29 from year-end 2025.

• EPS was $4.35, up from $3.78 in Q1 2026 and $3.09 in Q2 2025.

Outlook and guidance

• FY 2026 net interest income guidance raised to 8–9% growth, with NIM expected to remain stable.

• Non-interest income expected at $165–170 million per quarter; operating expenses growth revised to 2–3% for the year.

• Effective tax rate guidance at 14–15% for 2026.

• Net charge-off ratio expected in the 65–80 basis points range for the full year, reflecting recent charge-offs.

• P.R. public deposits expected to range between $20B and $22B through year-end 2026, but future balances remain uncertain.