Popular (BPOP) 8-K The information contained in this presentation includes forward-looking statements within the meaning of the Private

Financial Results

Financial Results

Second Quarter 2012

Second Quarter 2012

Exhibit 99.1

Forward Looking Statements

The information contained in this presentation includes forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations

and

involve

risks

and

uncertainties

that

may

cause

the

Company's

actual

results

to

differ

materially

from

any

future

results

expressed or implied by such forward-looking statements. Factors that may cause such a difference include, but are not

limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions;

(ii)

changes

in

interest

rates,

as

well

as

the

magnitude

of

such

changes;

(iii)

the

fiscal

and

monetary

policies

of

the

federal

government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of

capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in

Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii)

competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-

Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance

Corporation assessments. Other than to the extent required by applicable law,  the Company undertakes no obligation to

publicly update or revise any forward-looking statement. Please refer to our Annual Report on Form 10-K for the year ended

December 31, 2011 and other SEC reports for a discussion of those factors that could impact our future results. The financial

information included in this presentation for the quarter ended June 30, 2012 is based on preliminary unaudited data and is

subject to change.

1

Q2 2012 Highlights

•

We remain on track in executing our strategy

•

Improve credit

•

Build

our

asset

portfolio

and

maintain

strong

top

line

revenue

•

Optimize operating expenses

•

Continue improvements at BPNA

•

We made progress on various elements of this strategy in Q2 2012

•

Improvements in our credit outlook, with lower NPL inflows and lower losses

•

$500M in acquired loan portfolios with active pipeline of new opportunities

•

Maintained strong NIM (Q2 improvement of 6bps overall, 17bps in PR)

•

Strong capital ratios with TCE at 9.09% and Tier One Common at 12.29%

•

We continue to see increased expected returns over the life of our FDIC covered loan

portfolio and received a cash dividend from EVERTEC

•

Notwithstanding this progress, we are facing headwinds that are impacting our expected

performance

•

Loan originations below expectations due to weak market demand

•

Higher collection costs

•

Current negative accretion  from the covered portfolio

2

Q2 2012 Highlights

IMPROVED

CREDIT

TOP LINE

REVENUE

OPERATING

EXPENSES

OTHER

•

NPLs lower by $120 million to 7.56% of total loans

•

Charge-offs lower by 9% to  $98 million

•

PR commercial and construction NPL inflows lower by $28 million or 30%

•

Acquired $500 million of high quality loan to partially offset weak loan demand

•

NII increased $4 million quarter over quarter

•

Gain on sale of loans impacted by $27 million valuation adjustment

•

Personnel costs declined by $5 million QoQ

•

Other

operating

expenses

increased

$37million

QoQ

-

$25

million

due

to

early

repo extinguishment and $13 million covered loan expense reimbursable by the

FDIC

•

Tax benefit of $78 million in 2Q12 versus a $16 million expense in 1Q12 due to

PR treasury tax agreement

•

Cash

inflow

of

$131

million

from

EVERTEC

cash

dividend

(reducing

equity

investment balance to $62 million)

•

Increased amortization of the FDIC indemnity asset

3

Financial Results (Unaudited)

4

Q2 2012

Q1 2012

Variance

Net interest income

$341,200

$337,582

$3,618

Service fees & other oper. income

119,576

129,710

(10,134)

(Loss) Gain on sale of investments, loans & trading

(28,427)

9,453

(37,880)

Total revenues before FDIC income

432,349

476,745

(44,396)

FDIC loss-share income (expense)

2,575

(15,255)

17,830

Gross revenues

434,924

461,490

(26,566)

Provision for loan losses (excluding covered loans)

81,743

82,514

(771)

Provision for loan losses (covered WB loans)

37,456

18,209

19,247

Total provision BPOP

119,199

100,723

18,476

Net revenues

315,725

360,767

(45,042)

Personnel costs

116,336

121,491

(5,155)

Other operating expenses

211,543

174,676

36,867

Total operating expenses

327,879

296,167

31,712

(Loss) Income before Tax

(12,154)

64,600

(76,754)

Income tax (benefit) expense

(77,893)

16,192

(94,085)

Net income

$65,739

$48,408

$17,331

Financial Ratios

EPS

$0.63

$0.46

$0.17

NIM

4.33%

4.27%

0.06%

$ in thousands (except per share data) 

5

$ in thousands

Variance vs.

Q1' 12

Service fees & other

operating income

(10,134)

Gain/(loss) on sale

of loans,

investments &

trading profits

(37,880)

FDIC loss-share

income (expense)

17,830

Provision for loan

losses  - covered

loans

19,247

Personnel costs

(5,155)

Other operating

expenses

36,867

Taxes

(94,085)

• $25 million expense on early extinguishment of repos                                                  

• $13.3 million of reimbursable covered loan expenses

• $73 million benefit related to PR Treasury tax agreement

• Recognition of $10.7 million of reimbursable expenses                                                

• $15 million mirror impact associated with higher provision expense of

   $19.2 million                                                                                                                                   

• Offset by higher FDIC Indemnity Asset negative accretion of $8 million

Comments

• $6.7 million due to MSRs valuation variance                                                                      

• $6.5 million lower income from investments accounted for under the

   equity method                                                                                                                                

• Partially offset by $1.7 million  higher credit card fees related to higher

   customer purchase activity

• Mainly due to higher expected losses in certain pools

• Negative variation due to $31 million of combined valuation adjustments

   and resolutions of loans held for sale                                                                                     

• $5 million in mortgage hedging costs                                                                                  

• $2 million in lower compensation costs given the early voluntary

   retirement window efforts                                                                                                        

• $3 million lower payroll taxes and health benefits costs

Significant Quarterly Variances

6

Consolidated Credit Summary (Excluding  Covered Loans)

Continued credit quality improvements in key metrics:

•

NPLs declined by $120 million, down 7% from Q1 2012

•

NCOs declined for the third consecutive quarter to $98 million

$ in millions

Q2 12

Q1 12

%

Q2 11

%

Loans Held to Maturity (HTM)

$20,666

$20,479

$187

0.9%

$20,658

$8

0.0%

Performing HFS

185

130

55

42.3%

109

76

69.7%

NPL HFS

179

232

(53)

-22.8%

400

(221)

-55.3%

Total Non Covered Loans

21,030

20,841

$189

0.9%

21,167

($137)

-0.6%

Non-performing loans (NPLs)

$1,562

$1,682

($120)

-7.1%

$1,625

($63)

-3.9%

NPLs HTM to loans HTM

7.56%

8.21%

-0.7%

-8.0%

7.86%

-0.3%

-3.8%

Net charge-offs (NCOs)

$98

$108

($10)

-9.3%

$133

($35)

-26.3%

NCOs to average loans HTM

1.93%

2.13%

-0.2%

-9.4%

2.59%

-0.7%

-25.5%

Provision for loan losses (PLL)

$82

$83

($1)

-1.2%

$96

($14)

-14.6%

PLL to total loans HTM

1.58%

1.61%

0.0%

-1.8%

1.85%

-0.3%

-14.6%

PLL to NCOs

0.83x

0.76x

0.07x

9.2%

0.72x

0.11x

15.3%

Allowance for loan losses (ALL)

$649

$665

($16)

-2.4%

$690

($41)

-5.9%

ALL to loans

(excl. LHFS)

3.14%

3.25%

-0.1%

-3.3%

3.34%

-0.2%

-6.0%

ALL to NPLs HTM

41.52%

39.53%

2.0%

5.0%

42.45%

-0.9%

-2.2%

Q2 12 vs Q1 12

Q2 12 vs Q2 11

Commercial & Construction NPL Inflows  ($M)

Credit Quality Overview (Non Covered Loans)

7

Non-Performing Loans ($M)

NPL legacy portfolio and inflow included within construction and

commercial loan portfolio

•

NPLs declined

by $120 million, down 7% from

Q1 2012 and  33%  from Q3 2010 peak; lowest

levels since Q1 2009. Significant variances to

peak levels are as follows:

Construction

$739M or 90%

Consumer     $31M or 47%

Mortgage      $36M or 5%

•

Total commercial and construction NPL

inflows

decreased

by

$31

million

or

22%

compared to Q1 2012 driven by decreases

across both regions

Third consecutive quarterly decrease

Lowest level since 2009

OREO and NPL HFS (SM)

Credit Quality Overview (Non Covered)

NPL HFS decrease driven mainly by bulk

sales completed during Q4 2010 and Q3

2011

OREO increase driven mainly by the PR

mortgage loan portfolio

8

Over the last year and half, PR mortgage

OREO disposition has averaged 81% of

the UPB at default

Credit Quality Overview –

PR Mortgage Loan Portfolio

9

Excluding repurchases from mortgage

recourse obligation, credit trends improving

since 2010

•

Increase NCOs driven by change in charge-

off policy implemented in Q1 2012

Repurchases from recourse portfolio

accounts for the majority of the NPL inflow

increase after 2010

•

Purchases before 2010 were not material

•

Trends have stabilized since Q4 11

Selling with credit recourse stopped in

2009

Inflows/repurchases peaked in 2011

PR Mortgage Recourse Portfolio ($M)

Repurchases

$44

$33

$27

$63

$53

$53

$73

$50

$32

$4,198

$4,092

$3,967

$3,835

$3,709

$3,588

$3,444

$3,282

$3,169

7.2

7.8

7.9

7.7

7.6

7.3

6.2

5.9

5.6

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Portfolio

90+DPD%

$ in millions

AVG

PORTFOLIO

30 DPD%

90+ DPD

(avg.)

90 DPD%

NCO %

2007

$2,349

12.1%

$121

5.2%

0.1%

2008

2,394

15.3%

171

7.2%

0.1%

2009

2,556

21.0%

296

11.6%

0.4%

2010

3,074

23.2%

426

13.9%

0.6%

2011

3,741

19.1%

438

11.7%

0.7%

2012 YTD

4,131

16.4%

400

9.7%

0.9%

2010

102

71.1%

60

58.5%

2.3%

2011

378

62.0%

177

46.8%

0.8%

2012 YTD

506

60.3%

218

43.1%

3.3%

Total

FDIC-Assisted Acquisition Day 1 Assumptions                         

Covered loans accounted for under ASC 310-30

10

•

Covered

loan

balances

are

the

fair

value

of

the

expected

cash

flows

to

be

received

from

borrowers

net

of

any

estimated

losses

•

Indemnity

asset

is

the

present

value

of

the

80%

reimbursement

from

the

FDIC

of

expected

losses

•

Clawback

payable

is

the

present

value

of

the

total

lump

sum

payment

expected

to

be

made

to

the

FDIC

given

lower

expected

losses

than the FDIC originally estimated

•

Accretable

yield

is

the

difference

between

the

fair

value

of

loans

at

acquisition

and

expected

future

cash

flows

to

be

collected

from

borrowers

•

Accretion

of

indemnity

asset

on

Day

1

represented

the

difference

between

the

present

value

and

expected

payments

to

be received

from the FDIC

•

Clawback

accretion

represents

the

difference

between

the

present

value

and

the

lump

sum

payment

expected

to

be

made

to

the

FDIC on June 2020 -payment estimated on Day 1 to be $169.4 million

(Dollars in Millions)

Balances

Covered Loan Balances

4,909.6

$           

Indemnity Asset

2,425.9

Clawback Payable

(88.2)

Total Expected Net Revenue

Accretable Yield

1,538.1

Accretion of Indemnity Asset

212.8

Clawback Accretion

(81.2)

Total net revenue

$             1,669.7

Day 1 Assumptions

FDIC-Assisted Acquisition is performing better than expected…

Covered loans accounted for under ASC 310-30

11

*Forecast

excluding

potential

net

provision

expense.

Non

single

-family

(NSF),

single

–

family

(SF)loss

share

agreement

(LSA).

Maturity

of

LSA

dates

4/2015 (NSF) and 4/2020 (SF).

**See appendix for detail

1.

Accelerated resolution of large loans

2.

Impact of net provision expense on specific loan pools and 

negative accretion of the indemnity asset  due to lower

expected combined losses

3.

Net revenues to date are $651 million including $36 million of

net provision expense vs. a day 1 assumption of $665 million

4.

After June 30, 2012 the net revenue is expected to exceed

day 1 estimates by $377 million (see table).

2

4

Forecast

3

1

Revised net revenue expected to be $2.03 billion exceeding day 1

assumptions by $362.5 million

(Dollars in Millions)

Day 1

Assumptions

Actual/Revised

Forecast**

Variance

Day 1

$          1,669.7

$          2,032.2

362.5

$            

2010

255.7

276.6

20.9

2011

297.1

309.0

11.9

YTD June 30, 2012

112.2

65.2

(47.0)

Total recognized to date

665.0

650.8

(14.2)

Projected through NSF LSA (Exp. 4/15)*

357.4

401.6

44.2

Projected through SF LSA (Exp. 4/20)*

299.1

430.8

131.7

Remaining life after LSA*

348.2

549.0

200.8

Total expected net revenue remaining

1,004.7

1,381.4

376.7

Total net revenue

1,669.7

$          

2,032.2

$         

362.5

$            

Net Revenue Impact

Day 1 expected net revenues ($1,669.7)

Actual results plus forecasted impact ($2,032.2)

Portrayal of actual results through June 30, 2012 and current projections. All  information subject to change based on actual and estimated cash flows and

losses from covered portfolio. Quarterly recast process can generate significant differences based on actual and projected results.

Conclusion

12

2012 Strategy

•

Further improve credit-risk profile

•

Continue to add low-risk assets

•

Continue efficiency efforts

•

Continue improvement at BPNA

Robust capital position continues to improve

Revenue-generating capacity remains strong but headwinds are still

present

•

Economy in Puerto Rico stabilizing but asset generation still challenging

2012 target range net income of $210-$225 million

•

Incorporates unusual Q2 events (i.e., the tax benefit, and the after tax impact of the early repo

termination and the writedown of our held-for-sale portfolio)

Appendix

Appendix

14

P.R. Economic Overview

•

Approaching

a

balanced

budget:

projected

fiscal

2013

budget deficit  of $333 million, smallest since 2004 and is

expected to be balanced by fiscal 2014 from $3b in 2009

•

Tax

relief

for

individuals:

comprehensive

tax

reform

has

cut taxes on individuals by 25%, financed primarily with a

tax on multinational (U.S.) corporations with local

operations

Corporate rate reduced from 41% to 30%

•

Investment spending stabilizing:

11.5% increase of real gross domestic investment in

FY 2010-11 marks largest increase in more than a

decade

Housing Stimulus: $235 million (extended through

12/31/12)

Tourism Projects: $1.1B (30 projects, St. Regis, Ritz)

Public/Private Partnerships (PPPs): $1.4B billion toll

roads, $878 million schools, LMM Airport final bids

received July 2012

GDP –

Composition by sector

Recent Trends

•

Official forecast calls for first positive GNP growth since 2005. Forecast is +0.9% (fiscal 2012) and  +1.1% (fiscal 2013)

•

In

the

last

several

quarters,

indicators

such

as

retail

and

auto

sales,

home

sales,

cement

sales

and

sales

&

use

tax

among

others have improved

•

Unemployment rate 14.2%, lowest since March 2009

Source: Government Development Bank of PR bgfpr.com, PR Finance Housing

Authority,  PR commissioner of  Financial Institutions

2011 GDP-

$98.8B

PR Labor Market

2012 Monthly average up until May

46.4%

13.3%

12.5%

8.6%

8.0%

6.0%

2.9%

1.7%

0.6%

Manufacturing

Finance, insurance and

real estate

Services

Government

Trade

Tourism

Transportation and

other public utilities

Construction and Mining

Agriculture

-8%

-6%

-4%

-2%

0%

2%

4%

6%

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Total Jobs (Monthly Avg)

Avg Total Jobs Growth %

Who We Are –

Popular, Inc. 

Franchise

•

Financial services company

•

Headquartered in San Juan, Puerto Rico

•

$37 billion in assets (top 50 bank holding company in

the U.S.)

•

$25 billion in total loans

•

$27 billion in total deposits

•

279 branches serving customers in Puerto Rico, New

York, California, Florida, Illinois, U.S. Virgin Islands,

and New Jersey

•

NASDAQ ticker symbol: BPOP

•

Market Cap: $1.70 billion

Source: Company filings, SNL Financial

Note: Financial data as of June 30, 2012

1

As of June 30, 2012

Summary Corporate Structure

Assets = $36.6.bn

Popular

Mortgage,

Inc.

Popular Auto,

Inc.

Banco Popular

de Puerto Rico

Popular

Securities, Inc.

Assets = $28.0bn

Assets = $8.6 bn

Banco Popular

North America

Puerto Rico operations

Selected equity investments

(first two under “corporate”

segment and third under PR):

Popular

Insurance, Inc.

Popular North

America, Inc.

U.S. banking operations

Transaction processing,

business processes outsourcing

48.5% stake

2011 EBITDA of $132.96mm

Q1

2012

EBITDA

$36.23mm

Dominican

Republic bank

19.99% stake

Q2 2012 total

assets ~$3.3bn

PRLP 2011 Holdings

Construction and

commercial loans

vehicle

24.9% stake

15

1

P.R. Franchise Value Built Over 118 Years

Category

Market Position as of

Q1 2012

Market Share

as of  Q1 2012

Top Competitor

Institution/Group

Share

Total Deposits (Net of Brokered)

1

39%

Credit Unions

12%

Total Loans

1

35%

FirstBank

16%

Commercial & Construction Loans

1

40%

FirstBank

22%

Credit Cards

1

45%

MBNA

28%

Mortgage Loan Production

1

32%

Scotiabank

13%

Personal Loans

2

32%

Credit Unions

52%

Auto Loans/Leases

3

16%

Reliable

25%

Assets Under Management

3

14%

UBS

48%

Mortgage Loan Servicing Portfolio

1

$22.4B

Doral

$7.8B

•

Indisputable, sustained market leadership

Total Deposits (Net of Brokered)

Total Loans

Market Share Trend (2000 –

2012)

Source:  Puerto Rico Office of the Commissioner

of Financial Institutions

16

Source:  Puerto Rico Office of the Commissioner of Financial Institutions & 10K reports

$ in millions (Unaudited)

Q2 12

Q1 12

Variance

Q2 12

Q1 12

Variance

Net Interest Income

$298

$290

$8

$70

$74

($4)

Non Interest Income

85

114

(29)

15

16

(1)

Gross Revenues

383

404

(21)

85

90

(5)

Provision (non-covered)

66

68

(2)

15

15

0

Provision (covered WB)

38

18

20

           -

           -

              -

Provision for loan losses

104

86

18

15

15

0

Expenses

267

234

33

58

65

(7)

Tax Expense

(74)

17

(91)

1

1

0

Net Income (Loss)

$86

$67

$19

$11

$9

$2

NPLs  (HTM) ¹

$1,276

$1,343

($67)

$286

$338

($52)

NPLs  (HTM + HFS) ¹

1,453

1,570

(117)

288

344

         (56)

Loan loss reserve

564

586

           (22)

202

217

         (15)

Assets

$27,721

$28,027

($306)

$8,644

$8,665

($21)

Loans  (HTM)

18,932

19,082

(150)

5,750

5,618

        132

Loans  (HTM + HFS)

19,293

19,436

(143)

5,754

5,626

        128

Deposits

21,304

21,040

264

6,175

6,247

(72)

NIM

5.07%

4.90%

0.17%

3.55%

3.78%

-0.23%

PR

US

PR  & US Business

17

1

Excludes covered loans

Loan Portfolio Composition-

(Held in Portfolio-

Q2 2012)

18

•

Less risky loan composition…

•

Construction loan portfolio is down significantly since Q2 2009

•

Loans with an FDIC guarantee amount to 16% of all loans

•

Legacy portfolio includes loans from the US exited business lines*

($ in millions)

Q2 2009

Q2 2012

Q2 2009

Q2 2012

Q2 2009

Q2 2012

Construction

1,317

202

272

48

1,589

250

6%

1%

Commercial

7,229

6,163

4,495

3,440

11,724

9,603

47%

39%

Leasing

653

538

-

-

653

538

3%

2%

Consumer

3,220

3,199

1,099

666

4,319

3,865

18%

16%

Legacy

-

-

1,876

510

1,876

510

8%

2%

Mortgage

2,859

4,814

1,586

1,086

4,445

5,900

18%

24%

Total non-covered

15,278

14,916

9,328

5,750

24,606

20,666

100%

84%

Covered Loans WB

-

4,016

-

-

-

4,016

0%

16%

Total

15,278

18,932

9,328

5,750

24,606

24,682

100%

100%

Total

Q2 2009

% of

total HIP

Q2 2012

%of total

HIP

Puerto Rico

US

*The legacy portfolio is comprised of commercial loans, construction loans and lease financings related to certain lending

products exited by the Corporation as part of restructuring efforts carried out in prior years at the BPNA reportable segment.

19

Consolidated Credit Summary (Excluding  Covered Loans)

Continued credit quality improvements in key metrics:

•

NPLs declined by $120 million, down 7% from Q1 2012

•

NCOs declined for the third consecutive quarter to $98 million

$ in millions

Q2 12

Q1 12

%

Q2 11

%

Loans Held to Maturity (HTM)

$20,666

$20,479

$187

0.9%

$20,658

$8

0.0%

Performing HFS

185

130

55

42.3%

109

76

69.7%

NPL HFS

179

232

(53)

-22.8%

400

(221)

-55.3%

Total Non Covered Loans

21,030

20,841

$189

0.9%

21,167

($137)

-0.6%

Non-performing loans (NPLs)

$1,562

$1,682

($120)

-7.1%

$1,625

($63)

-3.9%

Commercial

$767

$819

($52)

-6.3%

$740

$27

3.7%

Construction

$68

$70

($2)

-2.9%

$119

($51)

-42.8%

Legacy

$55

$79

($24)

-30.7%

$124

($69)

-56.0%

Mortgage

$633

$667

($34)

-5.1%

$588

$45

7.6%

Consumer

$40

$47

($7)

-14.9%

$54

($14)

-25.9%

NPLs HTM to loans HTM

7.56%

8.21%

-0.7%

-8.0%

7.86%

-0.3%

-3.8%

Net charge-offs (NCOs)

$98

$108

($10)

-9.3%

$134

($36)

-26.9%

Commercial

$40

$54

($15)

-25.9%

$69

($29)

-42.5%

Construction

$1

$0

$1

NM

($5)

$6

-119.6%

Legacy

$5

$4

$1

25.0%

$17

($12)

-67.9%

Mortgage

$18

$17

$1

5.9%

$11

$7

62.6%

Consumer

$34

$33

$1

3.0%

$42

($8)

-19.9%

NCOs to average loans HTM

1.93%

2.13%

-0.2%

-9.4%

2.59%

-0.7%

-25.5%

Provision for loan losses (PLL)

$82

$83

($1)

-1.2%

$96

($14)

-14.6%

PLL to total loans HTM

1.58%

1.61%

0.0%

-1.8%

1.85%

-0.3%

-14.6%

PLL to NCOs

0.83x

0.76x

0.07x

9.2%

0.72x

0.11x

15.3%

Allowance for loan losses (ALL)

$649

$665

($16)

-2.4%

$690

($41)

-5.9%

ALL to loans

(excl. LHFS)

3.14%

3.25%

-0.1%

-3.3%

3.34%

-0.2%

-6.0%

ALL to NPLs HTM

41.52%

39.53%

2.0%

5.0%

42.45%

-0.9%

-2.2%

Q2 12 vs Q1 12

Q2 12 vs Q2 11

Coverage Ratio

1

Allowance to Loan Losses / Non-performing Loans

2

Allowance to Loan Losses + Lifetime Charge-offs / Non-performing Loans

3

Includes Legacy loans

The Reserve to NPL coverage ratio of 42% does not take into account the

high percentage of individually analyzed loans and lifetime charge-offs

Total NPLs

$1,562

Individually Analyzed

$763

Coverage

Ratio

(CR)

:

5%

Adjusted

Coverage

Ratio

(ACR)

:

35%

Collectively Analyzed

$799

Coverage

Ratio

(CR)

:

79%

Adjusted

Coverage

Ratio

(ACR)

:

101%

Mort.

Comm.

3

Const.

3

Cons.

Mort.

Comm.

3

Const.

3

Cons.

NPLs

230

454

71

7

403

356

8

32

Lifetime NCOs

11

158

69

0

59

130

7

0

Reserve

30

6

0

1

119

328

15

148

CR

13%

1%

0%

14%

30%

35%

100%

458%

ACR

18%

36%

97%

14%

44%

71%

188%

458%

$ in millions

20

1

2

2

1

Balance Sheet Impact

FDIC-Assisted Acquisition detail:

Covered loans accounted for under ASC 310-30

21

Portrayal of actual results through June 30, 2012 and current projections. All  information subject to change based on actual and estimated cash flows and

losses from covered portfolio. Quarterly recast process can generate significant differences based on actual and projected results.

(Dollars in Millions)

Day 1 Assumptions

Accretable Yield

1,538.1

$   

Amortization of Indemnity Asset

212.8

Provision Expense (embedded in above figures in Day 1)

-

Clawback Accretion

(81.2)

Day 1 Assumption of Net Revenue

1,669.7

Changes to Revenue Assumptions through recast process

Increase in cash flow on loans (accretable yield)

739.5

Impact of lower projected losses (reduce IA)

(338.3)

Provision Expense, net of mirror accounting (through 6/30/12)

(35.7)

Decrease in expected losses (increase clawback)

(3.0)

Net Changes to Day 1 Assumptions

362.5

Revised Net Revenue Assumptions

2,032.2

Net Revenue Recognized since Day 1 through June 30, 2012

650.8

Pending net revenue to be recognized as of June 30, 2012

Accretable Yield

1,574.9

Amortization of Indemnity Asset

(121.3)

Provision Expense (embedded in recast process)

-

Clawback Accretion

(72.2)

Net revenue to be recognized

1,381.4

$   

Revenue Impact

Balances Day 1

Covered Loan Balances

4,909.6

$      

Indemnity Asset

2,425.9

Clawback Payable

(88.2)

Balances June 30, 2012

Covered Loan Balances

3,715.5

$      

Indemnity Asset

1,631.6

Allowance

(94.0)

Clawback Payable

(100.2)

Credit Ratings Update

•

Our senior unsecured ratings have been gradually improving since

2010:

Moody’s:

Ba1

Negative Outlook

S&P:

B+

Stable Outlook

Fitch:

B+

Positive Outlook

•

April 2012: Moody’s placing most of the PR banks under review with the

possibility of downgrades, due to the state of the Puerto Rico economy

•

January 2012:  Fitch raised BPOPs outlook to positive

•

December 2011: S&P raised its ratings on BPPR to BB from BB-

and changed

outlook to stable given revised bank criteria to Regional banks

•

July 2011: S&P raised our senior unsecured rating by one notch to B+

•

As the P.R. economy stabilizes and our credit metrics improve, we should see

upward pressure on the ratings

22

Financial Results

Financial Results

Second Quarter 2012

Second Quarter 2012