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Popular and FirstBank gained critical branches and deposits in a region where growth is hard to come by. Some observers said it could also benefit the island to have one less competitor.
February 27 -
After scaling back its U.S. operations, Popular Inc. plans to focus on niche commercial lending markets, including financing for elder care and assisted living facilities.
June 26 -
Several Puerto Rican banks are dealing with a sour participation to a major utility on the island. The creditor like the Puerto Rican government is barred from filing for bankruptcy, complicating matters for its lenders.
May 21
Popular Inc. in San Juan, Puerto Rico, swung to a
The $36.8 billion-asset bank earned $597.5 million in the second quarter, compared to a loss of $511.3 million a year earlier. Earnings per share were $5.80.
Most of the profit was tied to the partial reversal of a valuation allowance on a deferred tax asset from the bank's U.S. operations, which added $544.9 million to the bottom line.
Overall, the bank's performance was mixed, as it continues to digest the assets it acquired from Doral, the Puerto Rican bank that failed
Popular's quarterly results also reflected challenges in the bank's home territory, which is struggling with a looming debt crisis. The bank in the past year has pared down its U.S. operations, slashing its branch network and
Net interest income climbed to $362.6 million, compared to a loss of $62.8 million a year earlier. Total loans rose 4%, to $22.6 billion. The net interest margin dipped 14 basis points, to 4.54%.
Fee-based income more than doubled, to $140.8 million, compared to $62.8 million last year. The increase came mostly from income from an FDIC loss-share agreement.
Operating expenses increased 32%, to $362.3 million, from higher property tax payments and professional fees.
