Q2 2024 Popular Inc Earnings Call Transcript
Key Points
- Popular Inc (BPOP) announced a 13% increase in its quarterly common stock dividend from $0.62 to $0.70 per share, starting in the first quarter of 2025.
- The company authorized a $500 million common stock repurchase, indicating strong capital position.
- Net income for the second quarter was $178 million, a $43 million increase from the previous quarter, driven by higher net interest income and lower credit loss provisions.
- Deposit balances increased by approximately $1.7 billion, primarily due to higher levels of Puerto Rico government deposits.
- Credit quality trends improved with lower net charge-offs, non-performing loans (NPLs), and NPL inflows.
- Popular Bank saw a $36 million decrease in loan balances, driven by $140 million in commercial loan payoffs.
- The demand for credit in the US market continues to be lower than anticipated, affecting consolidated loan growth expectations.
- Operating expenses increased by $7 million, driven by professional fees and transaction-related costs.
- The cost of total deposits increased, impacting net interest margin despite higher average loan balances.
- The provision for credit losses was $47 million, reflecting ongoing economic uncertainties and higher interest rates.
Hello and welcome to the Popular, Inc. 2Q earnings call. My name is Alex, and I'll be coordinating your call today. (Operator Instructions) I'd now like to hand over to Paul Cardillo, Investor Relations Officer of Popular. Please go ahead.
Good morning and thank you for joining us. With us on the call today is our CEO, Ignacio Alvarez; our President and COO, Javier Ferrer; our CFO, Jorge Garcia; and our CRO, Lidio Soriano. They will review our results for the second quarter and then answer your questions. Other members of our management team will also be available during the Q&A session.
Before we begin, I would like to remind you that on today's call, we may make forward-looking statements regarding Popular, such as projections of revenue, earnings, expenses, taxes and capital structure, as well as statements regarding Popular's plans and objectives. These statements are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual
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