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Executive summary

• Net income for Q2 2026 was $278 million, up 13% sequentially and 41% year-over-year, driven by higher net interest income, fee growth, and balance sheet expansion.

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

• CEO retirement and leadership succession plan announced, with Jorge J. García named as successor.

• Strategic focus on customer experience, digital transformation, and targeted segment growth.

Financial highlights

• Net interest income rose to $693 million, up $23 million from Q1 2026 and $62 million year-over-year.

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

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

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

• Tangible book value per share increased to $87.94, up $2.96 or 3.5%.

Outlook and guidance

• FY 2026 net interest income growth guidance raised to 8–9%, driven by higher P.R. deposit volumes.

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

• NCOs guidance increased to 65–80 bps annualized due to commercial charge-offs and NPL inflows.

• Effective tax rate projected at 14–15% for the year.