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

Financial Results

Financial Results

Third Quarter 2013

Third Quarter 2013

Exhibit 99.1

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, 2012 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

September

30,

2013

is

based

on preliminary unaudited data and is subject to change.

1

Forward Looking Statements

2

•

Reported net income of $229.1 million

•

Adjusted net income of $61.3 million

•

Strong margins: Popular, Inc. 4.49%,  BPPR 5.26%

•

Continued improvement across key metrics reaching new lows in the

credit cycle and returning to pre-crisis levels

•

NPLs are flat at 2.88% of loans, down 74% from Q3 2010 peak of

10.59%

•

NCO ratio at 1.08%, lowest level since 2007

•

NPL inflows for commercial and mortgage down $24.7 million QoQ,

lowest level in the credit cycle

•

Sale of 9.06 million shares for $197 million, retaining a stake of 21.3%

with a market value of approximately $406 million (October 21, 2013)

and book value of $42.4 million as of September 30, 2013

•

Popular recognized an after tax gain of approximately $167.8 million

during the third quarter of 2013

Highlights & Q3 2013 Results

Earnings

Credit

EVTC

Credit metrics exclude covered loans

TARP & Capital

3

•

Robust capital (T1CE ratio of 14.2%), $2.1 billion in excess of 5% CCAR target

requirement

•

Derisked balance sheet and enhanced risk management strengthens the company’s

position for the most shareholder-friendly exit from TARP

•

Submitted an application to repay TARP in full subject to regulatory approval

Common Tier 1 Capital

5.0%

14.2%

12.4%

Tier 1 Capital

6.0%

18.5%

14.4%

Total Capital

10.0%

19.8%

15.7%

Minimum Well

Capitalized

Ratio

9/30/2013

Pro-forma

9/30/2013 Excl.

TARP

Financial

Summary

(unaudited)

4

•

Pre-tax Q3 variance to Q2 of $28 million driven mostly by FDIC loss share accounting and

higher covered OREO expenses

Q3 2013

Q2 2013

See appendix for Non-GAAP to GAAP reconciliation

Non GAAP

Non GAAP

In thousands

Adjusted

Adjusted

Net interest income

$354,206

$354,217

($11)

Non Interest Income

130,958

136,083

(5,125)

Total revenues before FDIC income (expense)

485,164

490,300

(5,136)

FDIC loss-share income (expense)

(14,866)

(3,755)

(11,111)

Gross revenues

470,298

486,545

(16,247)

Provision for loan losses (excluding covered loans)

55,230

54,660

570

Provision for loan losses (covered WB loans)

17,433

25,500

(8,067)

Total provision

72,663

80,160

(7,497)

Net revenues

397,635

406,385

(8,750)

Personnel costs

116,839

114,679

2,160

Other real estate owned (OREO) expenses

17,175

5,762

11,413

Other operating expenses

192,335

186,633

5,702

Total operating expenses

326,349

307,074

19,275

Income before tax

71,286

99,311

(28,025)

Income tax expense

9,979

31,207

(21,228)

Net  income

$61,307

$68,104

($6,797)

Adjusted 

Variance

Capital

5

Capital Ratios %

Excess Capital ($ in billions)

**Excess

capital

over

“well

capitalized”

Basel

I

threshold

*Averages

for

30

bank

holding

Companies

with

$50

billion

or

more

of

total

consolidated assets, consisting of 19 firms included in Comprehensive Capital

Analysis

and

Review

(CCAR)

and

11

firms

included

in

Capital

Plan

Review

(CapPR).

•

Tier

1

Common

Equity

capital

ratio

of

14.2%

exceeds

current

CCAR

target

requirement

of

5% by $2.1 billion

•

We expect to remain “well-capitalized”

under the recently announced Basel III rules issued

by the Federal Reserve

**

**

CCAR & CapPR Q2 2013 *

BPOP Q3 2013

14.2

10.6

18.5

11.8

19.8

14.6

10.3

8.6

$2.1

$2.9

$2.3

Tier 1 Common

Tier 1 Capital

Total Capital

Tangible Common

Equity

Tier 1 Common

Total Capital

Tier 1 Capital

De-risked Loan Portfolios

•

PR has derisked its commercial loan

portfolio by reducing its exposure in

asset classes with historically high loss

content

Construction loan portfolio is down

by 80% since Q4 2007

SME  balances down by 48% from

Q4 2007

•

Collateralized exposure now represents

a larger portion of consumer loan

portfolio

•

Unsecured loans credit quality has

improved as overall FICO scores have

increased

Loan Composition (Held-in Portfolio)

PR Commercial and Construction Portfolio Distribution

6

(1)

NCOs distribution represents the percentage allocation of NCOs  from Q1 2008 through Q3 2013 per each loan

category

(2)

Small and Medium Enterprises

Legacy portfolio is comprised of certain commercial, construction and lease financings lending products exited by the

US.

²

²

²

NCOs

Distribution

CRE SME

2,939

$

32%

1,789

$

28%

($1,150)

-39%

23%

C&I SME

2,287

25%

931

14%

(1,356)

-59%

28%

C&I Corp

1,592

18%

1,860

29%

268

17%

6%

Construction

1,231

14%

252

4%

(979)

-80%

38%

CRE Corp

892

10%

1,590

24%

698

78%

4%

Multifamily

64

1%

85

1%

21

33%

1%

Q4 2007

Q3 2013

Variance

$ in millions

$ in millions

Q4 2007

Q3 2013

Q4 2007

Q3 2013

Q4 2007

Q3 2013

Variance

Commercial

$7,774

$6,255

$4,514

$3,591

$12,288

$9,846

($2,442)

Consumer

3,552

3,274

1,698

626

5,250

3,900

(1,350)

Mortgage

2,933

5,344

3,139

1,269

6,072

6,613

541

Construction

1,231

252

236

41

1,467

293

(1,174)

Leases

814

539

-

-

814

539

(275)

Legacy

-

-

2,130

236

2,130

236

(1,894)

Total

Puerto Rico

US

Total

$16,304

$15,664

$11,717

$5,763

$28,021

$21,427

($6,594)

Total

$9,005

$6,507

($2,498)

-28%

(1)

100%

$944

$859

$971

$1,142

$852

$866

$1,026

$1,101

$1,293

$1,500

$2,084

$2,245

$2,402

$2,448

$2,539

$2,623

$2,489

$2,314

$2,277

$2,254

$2,365

$2,311

$2,178

$2,120

$2,002

$1,419

$992

1.8%

2.1%

2.4%

1.9%

2.1%

2.5%

2.7%

3.3%

4.0%

5.7%

6.3%

6.9%

7.2%

6.0%

6.4%

6.4%

6.0%

5.8%

5.9%

6.3%

6.2%

5.9%

5.8%

5.5%

3.8%

2.7%

2.6%

1Q 07

2Q 07

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

4Q 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

NPLs

OREO

NPL HFS

NPAs/Total Assets

Credit Improvement Accelerated by Bulk Sales

•

Non-performing loans held-in-portfolio increased by

$4 million, or 1%, QoQ and declined by $933 million,

or 60% YoY

•

NPL to loans stand at 2.9% for Q3 2013, unchanged

from Q2 2013, and at the same level  as Q1 2008

•

QoQ increase is driven by PR mortgage NPLs due to

reduced level of outflows given lower balances after

the NPL bulk sale

Non-Performing Loans HIP ($M)

7

Non-Performing Assets ($M)

Metrics exclude covered loans

•

Non-performing assets declined by $49 million,

or 5%, QoQ and $1.2 billion, or 55%, YoY

•

Improvements accelerated by NPA bulk sales

completed

during

the

first

half

of

2013

•

QoQ decline mainly due to continued OREO

dispositions

$618

$770

$858

$1,008

$771

$781

$923

$1,028

$1,203

$1,404

$1,978

$2,116

$2,276

$2,313

$2,330

$2,344

$1,572

$1,614

$1,625

$1,732

$1,738

$1,682

$1,563

$1,550

$1,425

$1,051

$614

2.4%

2.7%

3.1%

2.8%

2.9%

3.5%

3.9%

5.6%

8.0%

8.7%

9.6%

10.0%

10.4%

10.6%

7.6%

7.9%

7.9%

8.4%

8.4%

8.2%

7.6%

7.5%

6.8%

4.9%

2.9%

2.9%

0.0

2.0

4.0

6.0

8.0

10.

12.

14.

1Q 07

2Q 07

3Q 07

4Q 07

1Q 08

2Q 08

3Q 08

4Q 08

1Q 09

2Q 09

3Q 09

4Q 09

1Q 10

2Q 10

3Q 10

4Q 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Mortgage

Commercial & Construction

Other

NPL/Loans (HIP)

4.7%

Steady Improvements in NPL Inflows

•

Total NPL inflows decreased by $24 million, or

13% QoQ, and down by 83% from peak levels in

Q2 2009

•

Commercial NPL inflows in Puerto Rico

decreased by $20 million, or 33% QoQ, reaching

the lowest level in the credit cycle

•

Mortgage NPL inflows in Puerto Rico continued

improving, down by $5 million, or 5% QoQ

8

Excludes consumer loans

Metrics exclude covered loans

$9

$13

$10

$8

$6

$6

$10

$8

$5

$7

$5

$140

$154

$175

$232

$187

$166

$157

$167

$110

$99

$94

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

US Inflows

PR Inflows

$67

$92

$87

$84

$55

$51

$52

$34

$26

$29

$27

$271

$273

$397

$333

$279

$231

$257

$210

$158

$158

$136

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

US Inflows

PR Inflows

$58

$79

$77

$76

$48

$45

$42

$26

$22

$22

$22

$131

$119

$222

$101

$93

$65

$100

$43

$48

$59

$42

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

US Inflows

PR Inflows

Total

NPL

Inflows

($M)

Mortgage NPL Inflows ($M)

Commercial,

Construction

&

Legacy

NPL

Inflows

($M)

Continued Progress in Asset Quality

•

NCOs for Q3 2013 are down by $21 million QoQ

Commercial NCOs down by $19 million, or 48%

NCO ratio stands at 1.08%, under 2% for six

consecutive quarters

NCO ratio fell to the lowest level since Q3 2007

NCO ($M) and NCO-to-HIP Loan  Ratio

Provision ($M) and Provision-to-NCO Ratio

9

Metrics exclude covered loans

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

$529

$526

44%

42%

40%

40%

40%

41%

41%

44%

56%

$727

$690

$693

$690

$665

$649

$636

$622

$584

86%

85%

130%

129%

128%

137%

154%

165%

166%

154%

179%

167%

227%

ALLL

ALLL/NCO

ALLL/NPL

PLL

NPL Sale PLL

PLL/NCO

NPL Sale PLL/NCO

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

$60

$96

$151

$124

$83

$82

$84

$86

$58

$55

$55

$149

$169

71%

69%

43%

72%

111%

98%

76%

83%

87%

86%

95%

84%

80%

NCO

NPL Sale Charge-offs

NCO%

NPL Sale NCO%

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

$139

$133

$135

$126

$108

$98

$96

$101

$81

$79

$58

2.74%

2.59%

2.64%

2.46%

2.13%

1.93%

1.87%

1.94%

1.55%

1.47%

1.08%

$163

$200

4.66%

5.16%

•

PLLL remained flat at $55 million from Q2 2013

(excluding sale impact);

Provision to NCO stands at 95%, compared to 69% in

Q2 2013

•

ALLL remained unchanged at 2.46% of loans

•

ALLL to NPL coverage ratio has significantly improved to

85% for Q3 2013, from a low of 40% in Q3 2011,

primarily driven by the bulk sales in the first half of the

year

ALLL ($M), ALLL-to-NCO and ALLL-to-NPL Ratios

PR Government Exposure

•

Loans to the Government of Puerto Rico and Public Corporations

are either collateralized loans or obligations that have a specific

source of income or revenues identified for their repayment

10

Direct

Exposure

$388 million

outstanding

Indirect

Exposure

$359 million

outstanding

Municipalities

$408 million

outstanding

•

Our current exposure to the PR government and its instrumentalities is $1.4 billion, of 

which $1.2 billion is outstanding

•

Of the amount outstanding, $951 million consists of loans and $204 million is securities

•

Loans

to

various

municipalities

backed

by

unlimited

taxing

power

or

real and personal property taxes collected within such municipalities

•

Includes $272 million residential mortgage loans to individual

borrowers with a government guarantee

•

$52 million in FNMA, GNMA or residential loan CMOs

non governments tenants

•

$35 million of industrial development notes payable primarily by

Driving Shareholder Value

11

Capital

Earnings

Additional

Value

•

Robust capital with excess Tier 1 Common Equity of $2.1 billion and

significantly

improved

asset

quality

move

us

closer

to

TARP

exit

in

the

most shareholder-friendly fashion

•

Application for TARP repayment was submitted

•

Unique franchise in PR provides strong, stable revenue-generating

capacity

•

Popular’s credit metrics are now close to historical low levels

•

EVTC ownership, BHD stake and continued improvement in US

operations

APPENDIX

APPENDIX

Who

We

Are

–

Popular,

Inc. 

Franchise

•

Financial services company

•

Headquartered in San Juan, Puerto Rico

•

$36 billion in assets (top 50 bank holding

company in the U.S.)

•

$25 billion in total loans

•

$26 billion in total deposits

•

276 branches serving customers in Puerto

Rico, New York, California, Florida, Illinois,

U.S. Virgin Islands, and New Jersey

•

NASDAQ ticker symbol: BPOP

•

Market

Cap:

$2.7

billion

1

1

As of September 30, 2013

*Doing business as Popular Community Bank.

Summary Corporate Structure

Assets = $36.1bn

Popular Auto,

Inc.

Banco Popular

de Puerto Rico

Popular

Securities, Inc.

Assets = 27.1  bn

Assets = $8.8bn

Banco Popular

North America*

Puerto Rico operations

Popular

Insurance, Inc.

Popular North

America, Inc.

U.S. banking operations

Transaction processing,

business processes

outsourcing

21.3% stake

Adjusted EBITDA  of $175.3

million for the 12-months

ended June 30, 2013; $43.4

million for Q2 2013.

Dominican

Republic bank

19.99% stake

2012

approximate net

income $114

million

13

Selected equity investments

(first two under “corporate”

segment and third and fourth under PR):

PRLP

2011

Holdings

PR

Asset

Portfolio

2013-1

International,

LLC

Construction and

commercial loans vehicle

24.9% stake

Construction, commercial

loans and OREOs vehicle

24.9% stake

US GAAP

Non GAAP

In thousands, except per share amount

Actual

EVERTEC's SPO

Adjusted

Net interest income

$354,206

$354,206

Non interest income

306,825

175,867

130,958

Total revenues before FDIC income (expense)

661,031

175,867

485,164

FDIC loss-share income (expense)

(14,866)

(14,866)

Gross revenues

646,165

175,867

470,298

Provision

for

loan

losses

(excluding

covered

loans)

[1]

55,230

55,230

Provision for loan losses (covered loans)

17,433

17,433

Total provision

72,663

72,663

Net revenues

573,502

175,867

397,635

Personnel costs

116,839

116,839

Other real estate owned (OREO) expenses

17,175

17,175

Other operating expenses

192,585

250

192,335

Total operating expenses

326,599

250

326,349

Income before tax

246,903

175,617

71,286

Income tax expense

17,768

7,789

9,979

Net income

$229,135

$167,828

$61,307

EPS -

Basic

$2.22

EPS -

Diluted

$2.22

NIM

4.49%

Tangible book value per share (quarter end)

$35.32

Market price (quarter end)

$26.25

Q3 2013

GAAP Reconciliation Q3 2013

14

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

[1] Covered loans represent loans acquired in the Westernbank FDIC-assisted transaction that are covered under FDIC loss sharing agreements.

[2]  Represents the impact of the gross receipt tax corresponding to the first quarter 2013, recorded during the second quarter after enactment.

[3]

Represents

the

net

benefit

of

$215.6

million

for

the

increase

on

the

net

deferred

tax

asset

from

the

change

of

the

corporate

tax

rate

from

30%

to

39%,

$7.9

million resulting from the adjustment in tax rate for distributions from EVERTEC from 15% to 4%, offset by an adjustment of $11.9 million on the deferred tax

liability related to the covered loans portfolio.

15

GAAP Reconciliation Q2 2013

US GAAP

Non

GAAP

In thousands, except per share amount

Actual

NPL Sale

EVERTEC's

IPO

Income Tax

Adjustment

[2][3]

Adjusted

Net interest income

$355,719

$1,502

$354,217

Service fees & other oper. income

290,874

(3,047)

162,091

131,830

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

6,244

(3,865)

5,856

4,253

Non interest income (loss)

297,118

(6,912)

167,947

-

136,083

Total revenues before FDIC income (expense)

652,837

(6,912)

169,449

490,300

FDIC loss-share income (expense)

(3,755)

(3,755)

Gross revenues

649,082

(6,912)

169,449

486,545

Provision

for

loan

losses

(excluding

covered

loans)

[1]

223,908

169,248

54,660

Provision for loan losses (covered loans)

25,500

25,500

Total provision

249,408

169,248

80,160

Net revenues

399,674

(176,160)

169,449

406,385

Personnel costs

114,679

114,679

Other real estate owned (OREO) expenses

5,762

5,762

Other operating expenses

189,145

856

1,656

186,633

Total operating expenses

309,586

856

1,656

307,074

Income before tax

90,088

(176,160)

168,593

(1,656)

99,311

Income tax (benefit) expense

(237,380)

(68,987)

11,988

(211,588)

31,207

Net income (loss)

$327,468

($107,173)

$156,605

$209,932

$68,104

EPS -

Basic

$3.18

EPS -

Diluted

$3.17

NIM

4.46%

Tangible book value per share (quarter end)

$33.38

Q2 2013

Financial Summary: non personnel expenses & taxes (unaudited)

16

¹

Reclassification of income tax credit related to the gross receipts tax credit from operating expenses to income taxes.

2

Early extinguishment of debt related to early cancelation of $233 million in senior notes.

3

Higher

OREO

expenses

mostly

related

to

write-downs

on

the

commercial

and

construction

covered

portfolio

which

is

subject to 80% reimbursement from the FDIC.

4 

Income

taxes

include

favorable

adjustment

in

the

2012

tax

return

related

to

EVTC

distributions

($7.7

million),

the

reclassification of income tax credit related to the gross receipts tax credit ($3.3 million) and the reversal of uncertain

tax positions in PR given statute of limitations expiration ($7.7 million).

¹

²

4

3

Q3 2013

Q2 2013

See appendix for Non-GAAP to GAAP reconciliation

Non GAAP

In thousands

Adjusted

Adjusted

Net occupancy expense

$     24,711

$    24,108

603

$          

Equipment expenses

11,768

11,843

(75)

Other operating taxes

17,749

13,632

4,117

Professional fees

71,789

69,108

2,681

Communications

6,558

6,644

(86)

Business promotion

14,982

15,562

(580)

FDIC deposit insurance

16,100

19,503

(3,403)

Loss on early extinguishment of debt

3,388

-

3,388

OREO expenses

17,175

5,762

11,413

Other operating expenses

22,822

23,766

(944)

Impact of change in fiscal period

-

-

-

Amortization of intangibles

2,468

2,467

1

Total non personnel expenses

$   209,510

$  192,395

17,115

$  

Income tax expense

$       9,979

$    31,207

(21,228)

$ 

Adjusted 

Variance

Non GAAP

17

Consolidated

Credit

Summary

1

Excluding provision for loan losses and net write-downs related to the asset sale

$ in millions

Q3 13

Q2 13

Q1 13

Q4 12

Q3 12

Loans Held in Portfolio (HIP)

$21,427

$21,522

$21,634

$20,984

$20,754

Performing HFS

123

180

183

258

228

NPL HFS

2

11

18

96

109

Total Non Covered Loans

21,552

21,713

21,835

21,338

21,091

Non-performing loans (NPLs)

$618

$614

$1,051

$1,425

$1,550

Commercial

$320

$328

$321

$665

$777

Construction

$29

$45

$51

$43

$50

Legacy

$24

$28

$36

$41

$49

Mortgage

$203

$172

$601

$630

$632

Consumer

$42

$41

$42

$46

$43

NPLs HIP to loans HIP

2.88%

2.85%

4.86%

6.79%

7.47%

Net charge-offs (NCOs)

$58

$79

$81

$101

$96

Commercial

$21

$41

$32

$49

$47

Construction

($5)

($2)

$0

($2)

($1)

Legacy

$2

($1)

$2

$3

$4

Mortgage

$13

$16

$20

$20

$16

Consumer

$27

$26

$27

$31

$29

Write-downs bulk sale

$0

$200

$163

$0

$0

NCOs to average loans HIP

1.08%

1.47%

1

1.55%

1

1.94%

1.87%

Provision for loan losses (PLL)

$55

$55

1

$58

1

$86

$84

PLL to average loans HIP

1.03%

1.02%

1

1.10%

1

1.66%

1.63%

PLL to NCOs

0.95x

0.69x

1

0.71x

1

0.86x

0.87x

Allowance for loan losses (ALL)

$526

$529

$584

$622

$636

ALL to loans HIP

2.46%

2.46%

2.70%

2.96%

3.07%

ALL to NPLs HIP

85.19%

86.14%

55.54%

43.62%

41.04%

(Excluding

Covered

Loans)

PR & US Business

18

1

Excludes covered loans

$ in millions (unaudited)

Net Interest Income

$310

$315

($5)

$73

$68

$5

Non Interest Income

91

103

(12)

17

13

4

Gross Revenues

Provision (non-covered)

51

231

(180)

5

(7)

12

Provision (covered WB)

Provision for loan losses

68

256

(188)

5

(7)

12

Expenses

244

238

6

59

56

3

Tax Expense (Benefit)

26

(236)

262

1

1

0

Net  Income

NPLs  (HIP) ¹

$441

$419

$22

$176

$195

($19)

NPLs  (HIP + HFS) ¹

442

426

178

199

Loan loss reserve ¹

399

394

127

135

Assets

$27,090

$27,699

($609)

$8,782

$8,800

($18)

Loans  (HIP)

18,739

18,890

5,763

5,830

Loans  (HIP + HFS)

18,860

19,074

5,766

5,836

Deposits

20,401

20,719

(318)

6,042

6,096

(54)

NIM

5.26%

5.26%

0.00%

3.66%

3.43%

0.23%

PR

US

Q3 13

Q2 13

Variance

Variance

Q3 13

Q2 13

401

418

(17)

$63

$160

($97)

90

81

9

$25

$31

($6)

17

25

(8)

16

(151)

(214)

(21)

(8)

(67)

(70)

-

-

-

5

Popular, Inc. Credit Ratings

•

Our

senior

unsecured

ratings

have

been

gradually

improving

since

2010:

•

Moody’s:

B1

Negative

Outlook

(Revised

October

2013)

•

Fitch:

BB-

Stable

Outlook

(Revised

January

2013)

•

S&P:

B+

Stable

Outlook

(Revised

December

2011)

•

October 2013: Moody’s revised outlook to negative

•

January

2013:

Fitch

raised

to

BB-

from

B+;

outlook

revised

to

stable

•

December 2012: Moody’s downgraded BPOP to B1; stable outlook assigned

•

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 BPOP’s 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

19

Financial Results

Financial Results

Third Quarter 2013

Third Quarter 2013