Popular (BPOP) Q4 2025 earnings summary

Executive summary

• Full-year 2025 net income was $833 million, up 36% year-over-year, with Q4 net income of $234 million, driven by higher net interest income, loan growth, and lower expenses.

• Adjusted 2025 net income was $823 million, excluding a partial FDIC special assessment reserve release.

• Loans grew 6% year-over-year to $39.3 billion, led by commercial, construction, and mortgage lending, with stable credit quality and lower net charge-offs.

• Tangible book value per share rose 21% to $82.65, supported by lower unrealized investment losses and robust earnings.

• Puerto Rico's economy remains solid, with record airport traffic, strong consumer spending, and healthy construction and tourism sectors.

Financial highlights

• Q4 net income: $234 million; EPS: $3.53, up $0.38 sequentially; full-year EPS: $12.31, up $3.75 year-over-year.

• Net interest income for Q4: $658 million, up $11 million; full-year NII up 11% ($259 million); NIM for 2025 was 3.49%, up 25 bps year-over-year.

• Non-interest income for Q4: $166 million, down $5 million sequentially, but at high end of guidance.

• Operating expenses for Q4: $473 million, down $22 million; full-year GAAP expenses up 2.5%, below 4% guidance.

• NPLs increased $147 million year-over-year to $498 million, mainly due to two commercial loans.

Outlook and guidance

• 2026 consolidated loan growth expected at 3%-4%, led by commercial loans.

• 2026 NII projected to increase 5%-7%, driven by reinvestment and lower deposit costs.

• Quarterly non-interest income expected in $160-$165 million range for 2026.

• Full-year 2026 GAAP expenses to rise ~3%; effective tax rate expected at 15%-17%.

• 2026 net charge-offs expected at 55-70 bps, reflecting stable credit and some provision for larger commercial relationships.