Q1 2025 Popular Inc Earnings Call Transcript
Key Points
- Net interest income increased by $15 million, with a net interest margin expansion of 5 basis points to 3.4%, driven by lower deposit costs.
- Loan balances increased by $146 million, primarily in the commercial and construction segments.
- Deposit balances grew by $935 million, with contributions from both banks.
- Credit quality improved, with lower net charge-offs and early delinquencies.
- Tangible book value per share increased by nearly $4 to approximately $72, driven by quarterly net income and lower unrealized losses in the investment portfolio.
- Noninterest income decreased by $13 million compared to Q4, below the low end of 2025 quarterly guidance.
- Operating expenses increased by $3 million, primarily due to higher personnel costs.
- The economic outlook remains uncertain due to tariff volatility and recession concerns.
- Loan growth guidance was adjusted to the lower end of the 3% to 5% range due to economic uncertainty.
- The cost of deposits in the US remains high due to competitive pressures and a high proportion of time deposits.
Hello and welcome to the Popular Incorporated, first quarter 2025 earnings call. My name is Elliot. I'll be your coordinator today. (Operator Instructions)
I would now like to hand over to Paul Cardillo, Investor Relations Officer, 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'll review our results for the first 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 during today's call, we may make forward-looking statements regarding Popular, such as projections of revenue, earnings, credit quality, expenses, taxes, and capital structure, as well as statements regarding Popularâs plans and objectives. These statements are based on management's current expectations and are subject to risks and uncertainties.
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