Popular Q1 Earnings & Revenues Beat on Higher NII, Stock Rises 5.9%

Core Viewpoint - Popular, Inc. (BPOP) reported a strong quarterly performance with adjusted earnings per share (EPS) of $2.56, exceeding expectations and showing significant year-over-year growth [1][2]. Financial Performance - The company's net income on a GAAP basis reached$177.5 million, reflecting a 71.9% increase year over year [2]. - Total quarterly revenues amounted to $757.7 million, surpassing the Zacks Consensus Estimate of$756.1 million and increasing by 6% from the previous year [3]. - Net interest income (NII) was reported at $605.6 million, a 10$152.1 million, primarily due to lower income from mortgage banking activities and losses on equity securities [4]. - Total operating expenses fell by 2.5% year over year to $471 million, driven by reductions in personnel costs and other operating expenses [4]. Loans and Deposits - As of March 31, 2025, total loans held-in-portfolio increased slightly to$37.3 billion, while total deposits rose by 1.4% to $65.8 billion [5]. Credit Quality - The provision for credit losses was$64.1 million, down 11.7% from the prior year, indicating improved credit quality [6]. - Non-performing assets decreased by 15.8% year over year to $366.2 million, with the non-performing assets to total assets ratio improving to 0.49$222.3 million [8]. Strategic Outlook - The company is positioned to benefit from its business transformation efforts and modernization of customer channels, with an increase in loans and deposits strengthening its balance sheet [9].