Popular (BPOP) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $278 million, up $32 million from Q1 2026 and $68 million year-over-year, driven by higher net interest income, solid fee generation, and balance sheet growth.

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

• Loans held-in-portfolio increased $460 million, mainly in commercial, construction, and mortgage segments.

• Total deposits grew $2.6 billion (3.9%), with P.R. public deposits up, but customer deposits down 1% excluding these.

• CEO Javier D. Ferrer announced his retirement effective August 31, 2026, with Jorge J. García named as successor.

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 rose 3.5% to $87.94.

Outlook and guidance

• FY 2026 net interest income growth guidance raised to 8–9% (from 5–7%), driven by higher P.R. deposit volumes.

• Non-interest income guidance increased to $165–$170 million per quarter.

• NCOs expected at 65–80 bps annualized, reflecting recent charge-offs and NPL inflows.

• Operating expenses expected to rise 2–3% for the year.

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