Popular (BPOP) 8-K Regulation FD Disclosure

Investor Presentation

Second Quarter 2015

Exhibit 99.1

Forward Looking Statements

The

information

contained

in

this

presentation

contains

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

are

subject

to

risks

and

uncertainties

that

may

cause

the

Corporation's

actual

results

to

differ

materially

from

any

future

results

expressed

or

implied

by

such

forward-looking

statements.

Please

refer

to

our

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2014,

the

Quarterly

Report

on

Form

10-Q

for

the

quarter

ended

March

31,

2015

and

our

other

filings

with

the

SEC

for

a

discussion

of

those

factors

that

could

impact

our

future

results.

Other

than

to

the

extent

required

by

applicable

law,

the

Corporation

undertakes

no

obligation

to

publicly

update

or

revise

any

forward-

looking

statement

to

reflect

events

or

circumstances

after

the

date

of

such

statements.

1

1

See appendix for reconciliation to GAAP.

² Excludes net write-downs related to  held-for-sale reclassifications and classified asset sales.

Q2 2015 Highlights

•

NPLs decreased by $89 million QoQ; ratio at 2.6%

•

NPL inflows, excluding consumer loans, down by $31 million QoQ

•

NCOs

ratio

of

0.89%²

compared

to

0.72%²

last

quarter

Credit

(excluding 

covered loans)

•

Reported adjusted net income of $90 million¹

•

Strong margins: Popular, Inc. 4.54%, BPPR 4.92%

Earnings

•

Robust capital; Common Equity Tier 1 Capital ratio of 15.6%

•

Strong DFAST results

•

DTA Reversal -

increase in tangible book value by $5.27 (no material impact to

regulatory capital)

Capital

Quarter

Events

•

Completed acquisition of Doral’s $5B GSE mortgage servicing rights (“MSRs”)

•

Purchased Doral insurance agency portfolio

•

Puerto Rico economic and fiscal update

2

PR Public Sector Exposure

Our current direct exposure to the PR government, instrumentalities, and municipalities is $729 million, down by $266

million from Q1 2015. The outstanding balance is approximately $673 million decreasing by $140 million from Q1 2015.

•

Loans

to

the

Government

of

Puerto

Rico

and

Public

Corporations

are

obligations

that

have

a

pledge

of

a

specific

source

of

income

or

revenues

identified

for

their

repayment.

•

Central

Government

securities

exposure

consists

of

GDB

notes

guaranteed

by

the

Commonwealth

and

private

insurance,

COFINA

and

Public

Buildings

Authority

guaranteed

by

the

Commonwealth.

•

Reduction

in

PREPA

driven

by

decision

to

sell

and

the

related

transfer

to

held

for

sale

resulting

in

a

$30

million

write-down

of

which

$29

million

was

previously

reserved.

•

During

the

quarter,

we

recorded

an

other

than

temporary

impairment

(“OTTI”)

of

$14

million

on

our

PR

bond

portfolio.

Central Government & Public Corporations

Municipalities

Loans

to

various

municipalities

are

backed

by

unlimited

taxing

power

or

real

and

personal

property

taxes

collected

within

such

municipalities.

3

Indirect

exposure

includes

loans

or

instruments

that

are

payable

by

non-governmental

entities

and

have

a

government

guarantee

to

cover

any

shortfall

in

collateral

in

the

event

of

borrower

default.

Majority

are

single-family

mortgage

related.

Indirect Exposure

1

Numbers may not add to total due to rounding.

Outstanding government exposure¹

($ in millions)

Loans

Securities

Total

Central Government

$0

$49

$49

Public Corporations

PRASA

90

0

90

PREPA

45

0

45

Total Central Govt & Public Corp.

135

50

185

as % of Tier 1 Risk-Based Capital

4.6%

Municipalities

430

59

488

Direct Government Exposure

$565

$108

$673

Indirect Exposure

$330

$50

$380

Financial Summary (non-GAAP)¹

¹ Unaudited. See Appendix for reconciliation to GAAP.

4

($ in thousands)

Q2 2015

Variance

Net interest income

362,553

$  

343,195

$  

19,358

$   

FDIC loss share income

12,396

4,139

8,257

Other non-interest income

135,168

109,975

25,193

Gross revenues

510,117

457,309

52,808

Provision

for

loan

losses

–

non-covered

loans

60,468

29,711

30,757

Provision

for

loan

losses

–

covered

loans

15,766

10,324

5,442

Total provision for loan losses

76,234

40,035

36,199

Net revenues

433,883

417,274

16,609

Personnel costs

117,112

114,026

3,086

Professional fees

73,564

68,531

5,033

OREO expenses

22,859

23,069

(210)

Other operating expenses

108,744

85,891

22,853

Total operating expenses

322,279

291,517

30,762

Income from continuing operations before income tax

111,604

125,757

(14,153)

Income tax  expense

21,513

35,464

(13,951)

Net

income from continuing operations

90,091

$    

90,293

$    

(202)

$       

Q1 2015

$798

$713

$636

$542

$410

$308

$85

$79

$88

$141

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

FDIC LSA  

Q1 14

FDIC LSA  

Q2 14

FDIC LSA  

Q3 14

FDIC LSA  

Q4 14

FDIC LSA  

Q1 15

FDIC LSA  

Q2 15

Q1 15 Claims Paid

by FDIC

(July 2015)

Q2 15 Estimated

Claims -

Not in

Dispute

Claims in Dispute

Composition of FDIC Loss Share Asset

($

in millions)

FDIC Loss Share Asset

5

$393

Single family FDIC LSA

Commercial FDIC LSA

Commercial FDIC LSA Components

Capital Ratios (%)

•

2015 DFAST results show strong capital ratios in a severely adverse economic scenario

•

Popular’s

capital metrics continued to be robust with Common Equity Tier 1 of 15.6%

6

Note: Capital ratios for the current quarter are preliminary

15.7

16.1

18.7

11.8

15.6

15.6

18.1

11.6

Common Equity Tier 1

Capital

Tier 1 Risk-Based Capital

Total Risk-Based Capital

Tier 1 Leverage

Q1 2015

Q2 2015

Popular, Inc. Capital Ratios (%)

De-risked Loan Portfolios

•

The

Corporation has de-risked its loan portfolios by

reducing its exposure to asset classes with historically

high loss content

•

The BPPR commercial portfolio, excluding loans

reclassified to non-covered during Q2 2015, includes:

Commercial portfolio, including construction,

has decreased from 55% of total loans held-in-

portfolio to 38%

Construction portfolio is down by 94% since Q4

2007

SME

1

lending

is

down

by

55%

from

Q4

2007

•

Collateralized exposure now represents a larger

portion of consumer loan portfolio

•

Unsecured loan credit quality has improved as overall

FICO scores have increased

Note: Numbers may not add to total due to rounding.

7

$ in millions

Q4 2007

Q2 2015

Q4 2007

Q2 2015

Q4 2007

Q2 2015

Variance

Commercial

$7,774

$7,569

$4,515

$2,436

$12,288

$10,005

($2,284)

Consumer

3,552

3,395

1,698

448

5,249

3,843

(1,406)

Mortgage

2,933

6,244

3,139

981

6,071

7,226

1,154

Construction

1,231

113

237

583

1,468

696

(772)

Leases

814

593

-

-

814

593

(221)

Legacy

-

-

2,130

73

2,130

73

(2,057)

Total

$16,304

$17,915

$11,718

$4,520

$28,021

$22,435

($5,586)

PR

US

Total

Loan Composition (Held-in Portfolio)

NCOs

($mm)

(%)

($mm)

(%)

($mm)

(%)

Distribution

3

CRE SME

1

$2,938

33%

$1,528

24%

($1,410)

-48%

24%

C&I SME

1

2,287

25%

810

13%

(1,477)

-65%

29%

C&I Corp

1,592

18%

1,797

29%

205

13%

5%

Construction

1,231

14%

77

1%

(1,154)

-94%

36%

CRE Corp

892

10%

1,960

31%

1,068

120%

4%

Multifamily

64

1%

84

1%

20

32%

1%

Total

$9,004

$6,256

($2,748)

-31%

100%

BPPR Commercial & Construction Distribution

2

Q4 2007

Q2 2015

Variance

2

3

NCOs distribution represents the percentage allocation of net charge-offs from Q1 2008 through Q2 2015 per each

loan category.

Excludes commercial and construction loans transferred to non-covered category amounting to $1.4 billion

and $36 million, respectively.

Small and Medium Enterprise

1

De-risked Loan Portfolios (excluding covered loans) ($ in millions)

Non-Performing Assets

Non-Performing

Loans

(excluding

covered

loans)

($

in

millions)

•

NPLs,

excluding

covered

loans,

decreased

by

$89

million

QoQ;

NPLs

to

loans

at

2.6%

of

loans

compared

to

3.2%

in

Q1

2015

•

Includes

$8

million

transferred

from

covered

to

non-covered

NPLs

upon

expiration

of

loss

share

coverage

under

the

LSA

agreement

Non-Performing

Assets

(including

covered

assets)

($

in

millions)

•

NPAs,

including

covered

loans,

decreased

by

$129

million

OREOs

down

by

$66

million,

primarily

from

the

sale

of

covered

commercial

properties

Differences due to rounding.

BPPR

NPLs

at

$542

million,

or

3.0%

of

loans,

decreased

by

$96

million

-

Commercial

NPLs

down

$85

million

in

connection

with

the

abovementioned

$75

million

public

sector

borrower

-

Construction

NPLs

down

$8

million,

mostly

related

to

loan

resolutions

-

Mortgage

NPLs,

down

$1

million

US

operations

NPLs

at

$34

million,

or

0.8%

of

loans,

up

by

$7

million

8

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

618

598

635

640

622

630

665

576

2.4%

2.7%

3.1%

2.8%

2.9%

3.5%

3.9%

4.7%

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%

2.8%

2.9%

3.3%

3.2%

3.3%

3.2%

2.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

Mortgage

Commercial & Construction

Other

NPL/Loans (HIP)

NPLs, including NPL HFS, down by $62 million, primarily related to a $75 million public sector credit, written down by approximately $30 million

and transferred to HFS

$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

1,420

993

944

932

956

956

943

933

935

806

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%

2.6%

2.6%

2.6%

2.8%

2.8%

2.6%

2.2%

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

NPLs

OREO

NPL HFS

NPAs/Total Assets

NPL Inflows

Total NPL Inflows 

($ in millions)

Highlights

•

Total

NPL

inflows

decreased

by

$31

million

QoQ,

mainly

driven

by

lower

PR

mortgage

inflows

PR

mortgage

NPL

inflows

down

by

$22

million

-

Q1

2015

inflows

included

the

addition

of

$17

million

of

loans

previously

serviced

by

Doral

-

Excluding

the

impact

of

Doral

from

the

prior

quarter,

mortgage

inflows

decreased

by

$5

million

PR

commercial

inflows,

including

construction,

down

$11

million

US

NPL

inflows

increased

by

$2

million,

mostly

mortgage

additions

Excludes

consumer

loans

Metrics exclude covered loans. Differences due to rounding.

9

Mortgage NPL Inflows 

($ in millions)

Commercial, Construction, and Legacy NPL Inflows

($ in millions)

45

42

26

22

22

22

10

19

11

7

2

9

5

65

100

43

48

59

42

32

94

31

23

113

28

17

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

US Inflows

PR Inflows

51

52

34

26

29

27

16

23

16

9

10

15

17

231

257

210

158

158

136

126

183

136

119

205

135

103

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

US Inflows

PR Inflows

6

10

8

5

7

5

6

4

5

3

8

6

12

166

157

167

110

99

94

94

89

105

95

92

90

86

17

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

US Inflows

PR Inflows

Doral Inflows

NCO ($ in millions)

and NCO-to-Loan Ratio

Provision ($ in millions)

and Provision-to-NCO Ratio

Additional Credit Metrics

Highlights

•

NCOs

up

$11

million

QoQ

(excluding

write-downs)

mainly

driven

by:

Higher

commercial

NCOs

by

$12

million

as

the

Q1

2015

reflected

a

lower

than

normal

loss

trend,

offset

by

$5

million

recovery

related

to

the

sale

of

previously

charged-off

credit

cards

and

auto

loans

•

NCO

ratio

of

0.89%

vs.

0.72%

in

Q1

2015

•

Write-downs

of

$31

million

related

to

loans

transferred

to

HFS,

of

which

$29

million

was

previously

reserved

•

Provision

of

$60

million,

increased

by

$31

million

Provision

to

NCO

of

128%

compared

to

83%

in

Q1

2015

•

ALLL

at

$513

million,

decreasing

by

$3

million

QoQ;

ALLL

to

loans

at

2.29%

vs.

2.46%

in

Q1

2015

Includes

$13

million

allowance

transferred

from

covered

loans

•

ALLL

to

NPL

coverage

ratio

at

89%

in

Q2

2015

vs.

78%

in

Q1

2015

Metrics exclude covered loans. Differences due to rounding.

10

ALLL ($ in millions), ALLL-to-NCO and ALLL-to-NPL Ratios

649

636

622

584

529

526

538

543

526

522

520

516

513

165%

276%

41%

89%

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

ALLL

ALLL/NCO

ALLL/NPL

98

96

101

81

79

58

35

43

46

40

50

36

46

163

200

32

3

31

1.93%

0.89%

1.47%

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

NCO

Loan Sales Write-downs

NCO%

Loan Sales NCO%

82

84

86

58

55

55

48

47

50

56

50

30

59

149

169

12

2

1

83%

128%

79%

Q2 12

Q3 12

Q4 12

Q1 13

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q3 14

Q4 14

Q1 15

Q2 15

PLLL

Loan Sales PLLL

PLLL/NCO

Loan Sales PLLL/NCO

Driving Shareholder Value

Capital

•

Robust capital with Common Equity Tier 1 Capital of 15.6%

•

Working toward more active capital management

Earnings

•

Unique franchise in PR provides strong, stable revenue-generating

capacity

•

Continued stability in Popular’s credit metrics

Additional Value

•

EVTC ownership and Banco BHD León stake

11

Recent

Accomplishments

•

US restructuring  completed; continued strong loan growth

•

Doral transactions completed

Investor Presentation

Second Quarter 2015

APPENDIX

Banco Popular

de Puerto Rico

Popular Auto,

LLC

Popular

Securities LLC

Popular’s

Insurance

Subsidaries

Popular North

America, Inc.

Banco Popular

North

America

Holding

Companies

(Including Equity

Investments)

Who We Are –

Popular, Inc. 

Franchise

Information as of  June 30, 2015

¹ Doing business as Popular Community Bank

Summary Corporate Structure

Assets = $37 billion

Assets = $30 billion

Assets = $7 billion

Puerto Rico Operations

United States Operations

Selected equity investments

EVERTEC and  Banco BHD León under Corporate segment and joint ventures under BPPR segment

•

Transaction processing,

business processes        

outsourcing

•

15.04% stake

•

Adjusted

EBITDA

of

$183.3

million

for

the

year

ended

March 31, 2015

•

Dominican Republic

bank

•

15.84% stake

•

2014 approximate

net income of $123

million

PRLP 2011 Holdings, LLC

•

Construction and

commercial loans

vehicle

•

24.9% stake

PR Asset Portfolio 2013-1

International, LLC

•

Construction,

commercial loans and

OREOs vehicle

•

24.9% stake

Corporate Structure –

Popular, Inc. 

Industry

Financial services

Headquarters

San Juan, Puerto Rico

Assets

$37 billion (among top 50

BHCs in the U.S.)

Loans

$23 billion

Deposits

$28 billion

Banking branches

233 in Puerto Rico, New

York, New Jersey, Florida

and U.S. and British Virgin

Islands

NASDAQ ticker symbol

BPOP

Market Cap

$3.0 billion

13

1

Category

Market

position

Market

share

Total Deposits (Net of brokered) *

1

43%

Total Loans *

1

41%

Commercial & Construction Loans *

1

44%

Credit Cards ¹

1

53%

Mortgage Loan Production ¹

1

29%

Personal Loans *

1

30%

Auto Loans/Leases

2

18%

Assets Under Management

3

15%

Q1 2015

Market Leadership in Puerto Rico

Source: Puerto Rico Office of the Commissioner of Financial Institutions, COSSEC,  and 10K Reports.*Information included pertains to PR Commercial Banks and Credit Unions.

¹ Mortgage loan production and credit card data for certain competitors is not publicly available; figures presented for competitors were estimated.

Popular’s Puerto Rico Market Share by Category

Popular’s Puerto Rico Market Share Trend

14

38%

37%

35%

42%

40%

39%

39%

41%

43%

24%

23%

22%

33%

34%

35%

36%

38%

41%

2007

2008

2009

2010

2011

2012

2013

2014

Q1 2015

Total Deposits (net of brokered)

Total Loans

GAAP Reconciliation Q2

2015

* Unaudited.

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

15

($ in thousands)

Actual

Results                   BPNA

(US GAAP)

Reorganization

Doral

Acquisition

OTTI

Reversal DTA -

BPNA

Loss on Bulk

Sale of

Covered

OREOs

Adjustment to

FDIC

Indemnification

Asset

Adjusted

Results         

(Non-

GAAP)

Net interest income

$      362,553

$                      -

$                 -

$                 -

$                  -

$                  -

$                       -

$  362,553

Provision

for

loan

losses

–

non-covered

loans

60,468

-

-

-

-

-

-

60,468

Provision

for

loan

losses

–

covered

loans

¹

15,766

-

-

-

-

-

-

15,766

Net interest income after provision for loan losses

286,319

-

-

-

-

-

-

286,319

Net (loss) and valuation adjustments on investment securities

(14,440)

-

-

(14,445)

-

-

-

5

FDIC loss share income

19,075

-

-

-

-

17,566

(10,887)

12,396

Other non-interest income

136,124

-

961

-

-

-

-

135,163

Total non-interest income

$      140,759

$                      -

$             961

$      (14,445)

$                  -

$         17,566

$            (10,887)

$  147,564

Personnel costs

120,977

-

3,865

-

-

-

-

117,112

Net occupancy expenses

23,286

-

2,309

-

-

-

-

20,977

Equipment expenses

15,925

-

725

-

-

-

-

15,200

Professional fees

78,449

-

4,885

-

-

-

-

73,564

Communications

6,153

-

70

-

-

-

-

6,083

Business promotion

13,776

-

401

-

-

-

-

13,375

Other real estate owned (OREO) expenses

44,816

-

-

-

-

21,957

-

22,859

Restructuring costs

6,174

6,174

-

-

-

-

-

-

Other operating expenses

53,618

-

509

-

-

-

-

53,109

Total operating expenses

$      363,174

$                 6,174

$        12,764

$                 -

$                  -

$         21,957

$                       -

$  322,279

Income from continuing operations before income tax

63,904

(6,174)

(11,803)

(14,445)

-

(4,391)

(10,887)

111,604

Income tax (benefit) expense

(533,533)

-

(3,744)

(2,486)

(544,927)

(1,712)

(2,177)

21,513

Income from continuing operations

$      597,437

$               (6,174)

$        (8,059)

$      (11,959)

$       544,927

$          (2,679)

$              (8,710)

$    90,091

Income from discontinued operations, net of tax

$                15

$                       15

$                 -

$                 -

$                  -

$                  -

$                       -

$            -

Net income

$      597,452

$                (6,159)

$        (8,059)

$      (11,959)

$       544,927

$          (2,679)

$              (8,710)

$    90,091

Basic  EPS

5.80

$          

Diluted EPS

5.79

$          

Net interest margin

4.54%

Tangible common book value per common share

41.75

$        

Market value per common share

28.86

$        

Q2 2015 *

GAAP Reconciliation Q1 2015

* Unaudited.

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

16

($ in thousands)

Actual

Results                   BPNA

(US GAAP)

Reorganization

Doral

Acquisition

Adjusted

Results         

(Non-GAAP)

Net interest income

$       343,195

$  

-

$                 -

$       343,195

Provision for loan losses –

non-covered loans

29,711

-

-

29,711

Provision for loan losses –

covered loans ¹

10,324

-

-

10,324

Net interest income after provision for loan losses

303,160

-

-

303,160

FDIC loss share income

4,139

-

-

4,139

Other non-interest income

111,096

-

1,121

109,975

Total non-interest income

$       115,235

$                      -

$           1,121

$       114,114

Personnel costs

116,458

-

2,432

114,026

Net occupancy expenses

21,709

-

643

21,066

Equipment expenses

13,411

-

-

13,411

Professional fees

75,528

-

6,997

68,531

Communications

6,176

-

-

6,176

Business promotion

10,813

-

-

10,813

Other real estate owned (OREO) expenses

23,069

-

-

23,069

Restructuring costs

10,753

10,753

-

-

Other operating expenses

34,425

-

-

34,425

Total operating expenses

$       312,342

$               10,753

$         10,072

$       291,517

Income from continuing operations before income tax

106,053

(10,753)

(8,951)

125,757

Income tax expense

32,568

-

(2,896)

35,464

Income from continuing operations

$         73,485

$             (10,753)

$          (6,055)

$         90,293

Income from discontinued operations, net of tax

$           1,341

$                  1,341

$                  -

$                  -

Net income

$         74,826

$                (9,412)

$          (6,055)

$         90,293

Basic and Diluted EPS

0.72

$            

Net interest margin

4.57%

Tangible common book value per common share

36.33

$          

Market value per common share

34.39

$          

Q1 2015 *

Business Segments (GAAP)*

* Unaudited

¹ Non-fully taxable equivalent

17

($ in millions)

Financial Results

Q2 2015

Q1 2015

Variance

Q2 2015

Q1 2015

Variance

Net interest income

316

$     

307

$     

9

$         

62

$       

52

$       

10

$       

Non-interest income

126

103

23

6

6

-

Gross revenues

442

410

32

68

58

10

Provision for loan losses – non-covered loans

60

32

28

-

(2)

2

Provision for loan losses – covered loans

16

10

6

-

-

-

Total provision for loan losses

76

42

34

-

(2)

2

Operating expenses

293

240

53

51

56

(5)

Income tax  expense

17

37

(20)

(544)

1

(545)

Income (loss) from continuing operations

56

$       

91

$       

(35)

$      

561

$     

3

$         

558

$     

Income from discontinued operations, net of tax

-

$          

-

$          

-

$      

-

$          

1

$         

(1)

$        

Net income (loss)

56

$       

91

$       

(35)

$      

561

$     

4

$         

557

$     

($ in millions)

Balance Sheet Highlights

Q2 2015

Q1 2015

Variance

Q2 2015

Q1 2015

Variance

Total assets

29,669

$

28,804

$

865

$     

7,459

$  

6,718

$  

741

$     

Total loans

18,804

19,211

(407)

4,521

4,417

104

Total deposits

23,079

22,504

575

4,793

4,854

(61)

Asset Quality (including covered assets)

Q2 2015

Q1 2015

Variance

Q2 2015

Q1 2015

Variance

Non-performing loans held-in-portfolio / Total

loans

2.90%

3.42%

(0.52)%

0.76%

0.61%

0.15%

Non-performing assets / Total assets

2.59%

3.11%

(0.52)%

0.51%

0.59%

(0.08)%

Allowance for loan losses / Total loans

2.77%

2.90%

(0.13)%

0.66%

0.72%

(0.06)%

Net interest margin¹

4.92%

5.00%

-0.08%

4.03%

3.82%

0.21%

PR

US

Consolidated Credit Summary (Excluding Covered Loans)

1

Excluding provision for loan losses and net write-downs related to the assets sales

Note: Numbers may not add to total due to rounding.

18

$ in millions

Q2 15

Q1 15

Q4 14

Q3 14

Q2 14

Loans Held in Portfolio (HIP)

$22,435

$21,013

$19,404

$19,359

$19,635

Performing HFS

151

152

87

158

93

NPL HFS

51

8

19

20

4

Total Non Covered Loans

22,637

$   

21,174

$   

19,511

$   

19,537

$   

19,732

$   

Non-performing loans (NPLs)

$576

$665

$631

$622

$640

Commercial

$190

$274

$260

$252

$278

Construction

$5

$13

$14

$19

$22

Legacy

$5

$2

$2

$6

$8

Mortgage

$331

$329

$305

$295

$286

Consumer

$42

$44

$47

$47

$43

Leases

$2

$3

$3

$3

$3

NPLs HIP to loans HIP

2.57%

3.16%

3.25%

3.21%

3.26%

Net charge-offs (NCOs)

$46

$36

$50

$40

$46

Commercial

$16

$4

$13

$0

$10

Construction

$2

($3)

($0)

($1)

($1)

Legacy

$0

($2)

($4)

$0

($1)

Mortgage

$11

$11

$12

$13

$10

Consumer

$17

$25

$28

$27

$26

Leases

$1

$1

$1

$1

$1

Write-downs

$31

($3)

$3

$32

$20

NCOs to average loans HIP

0.89%

1

0.72%

1

1.04%

1

0.83%

1

0.94%

Provision for loan losses (PLL)

$59

1

$30

1

$50

1

$56

1

$50

PLL to average loans HIP

1.06%

1

0.57%

1

1.02%

1

1.16%

1

1.02%

PLL to NCOs

1.28x

1

0.83x

1

0.99x

1

1.39x

1

1.08x

Allowance for loan losses (ALL)

$513

$516

$520

$522

$526

ALL to loans HIP

2.29%

2.46%

2.68%

2.69%

2.68%

ALL to NPLs HIP

89.02%

77.63%

82.30%

83.88%

82.26%

Popular, Inc. Credit Ratings

April

Moody’s placing

most of the PR banks

under review with

the possibility of

downgrades, due to

the state of the

Puerto Rico economy

December

Moody’s

downgraded

BPOP to B1;

outlook stable

January

Fitch raised to

BB-

from B+;

outlook stable

October

Moody’s

revised outlook

to negative

February

Moody's placed

BPOP on

review for

downgrade

May

Moody’s

downgraded

BPOP to B2;

outlook

negative

2012

2013

2014

2015

19

March

Moodys

placed

BPOP on review

for possible

upgrade due to a

change in their

bank rating

methodology

July

On 7/10 S&P

affirmed BPOP’s

rating while

maintaining a

negative outlook

February

S&P placed

BPOP on credit

watch negative

due to the

general

economic

environment in

Puerto Rico

May

Moodys, as part

of a recalibration

of their bank

rating model,

upgraded BPOP

from B2 to B1

with a stable

outlook

Our senior unsecured ratings have remained stable

Our senior unsecured ratings have remained stable

Moody’s

B1

Stable

Outlook

Fitch

BB-

Stable Outlook

S&P

B+

Negative

Investor Presentation

Second Quarter 2015