Popular (BPOP) Q4 2025 earnings summary

Executive summary

• Full-year 2025 net income reached $833 million, up 36% year-over-year, with Q4 net income at $234 million and EPS of $12.31, driven by higher net interest income, margin expansion, strong loan growth, and lower expenses.

• Adjusted net income for 2025 was $823 million, excluding a partial FDIC special assessment reversal; Q4 adjusted net income was $224 million.

• Loans grew 6% year-over-year to $39.3 billion, led by commercial, construction, and mortgage lending, with stable credit quality and net charge-offs decreasing to 52 basis points.

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

• Share repurchases totaled $501.5 million in 2025, with $719 million since Q3 2024, and the quarterly dividend increased to $0.75 per share.

Financial highlights

• Net interest income for Q4 2025 was $658 million, up $11 million sequentially; full-year NII increased 11% ($259 million).

• Net interest margin for 2025 was 3.49%, up 25 bps year-over-year; Q4 NIM was 3.61%, up 10 bps sequentially.

• Non-interest income for Q4 was $166 million, down $5 million from Q3, but in line with guidance.

• Operating expenses for Q4 were $473 million, down $22 million from Q3; full-year expenses rose 2.5%, below the 4% guidance.

• Effective tax rate for 2025 was 17%, down from 23% in 2024.

Outlook and guidance

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

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

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

• Full-year 2026 GAAP expenses anticipated to increase by about 3%; effective tax rate for 2026 expected between 15%-17%.

• Annual net charge-offs for 2026 forecasted at 55-70 basis points; ROTCE target remains a sustainable 14%.