Popular (BPOP) investor relations material

Leadership and strategic focus

• Emphasizes organizational strength and continuity in strategic objectives: client focus, efficiency, and top performance, with a strong sense of urgency and momentum across teams.

• Maintains focus on ROCE with a new long-term target of 14%-17%, using specific KPIs to guide teams and reinforce profitability mindset.

• Leadership transition occurs during a period of strong performance and positive momentum, with continued emphasis on talent retention and organizational culture.

Economic and market environment

• Puerto Rico's economy remains stable with historically low unemployment, wage growth, and strong consumer credit trends, despite population decline and higher living costs.

• Economic resilience is supported by diverse investment in construction, tourism, logistics, and significant manufacturing activity, including major pharma investments.

• Oil prices and U.S. tariffs are monitored as potential headwinds, but no significant negative impacts have been observed.

Loan and deposit trends

• Commercial loan growth is strong in both Puerto Rico and the U.S., while auto lending faces headwinds due to high car prices and tariffs.

• Mortgage portfolio continues to grow, with a focus on retaining FHA-guaranteed loans for structural benefits.

• Deposit franchise is supported by employee commitment and targeted segment strategies, with efforts to increase personalization and value-added services.

• Deposit growth in Puerto Rico is expected to align with economic growth (1%-2%), with increased client diversification across banks post-hurricanes and pandemic.