BPOP - Earnings call transcript Q4 2024

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Operator

Hello, and welcome to the Popular, Inc. Fourth Quarter Earnings Call. My name is Elliot, and I will be your coordinator today.

[Operator Instructions]

I'd now like to hand over to Paul Cardillo, Investor Relations Officer. ahead. go Please

Paul Cardillo

results will Other and year questions. and the thank the They and during our of our joining With Jorge us. and Good today management you is and Soriano. also for on answer García; the CFO, our call Javier Alvarez; be session. CRO, quarter available then our full our us review Lidio your members fourth COO, team morning, will Ferrer; for our CEO, President Ignacio Q&A

Before like on we regarding remind today's regarding of and to call, as statements plans statements as taxes revenue, Popular's such I forward-looking capital and begin, would well you structure current and to management's earnings, expenses, release actual we that today's are These and may Popular's forward-looking as projections make could from cause within SEC based expectations uncertainties. to that are filings. statements risks differ materially statements earnings our results these on subject Factors forth and set are objectives.

today's to page over at You may will web on Alvarez. call I the press filings SEC find turn now CEO, popular.com. our Ignacio our our and release

Ignacio Alvarez

Good strength continued and our reflect we that delivered and thank the In joining Puerto you results call. morning, the the Rico the stability XXXX, of franchise economy. of for

was losses million, income higher provision for annual Our $XXX achieved The driven net than operating a in and higher in an higher $XXX income in higher expenses. part by income million net offset XXXX. variance XX% compared On adjusted of to mainly of credit net $XXX by million we adjusted interest XXXX. basis,

levels. increase X.X%. across to loan loan our BPPR $X generated below quarter throughout offerings. segments, slightly normalized bring remains product growth net while the quality continued billion, by stable most charge-offs commercial remained fourth loans. loans, led Bank diversified achieved business total strong economy our growth and commercial our growth Nonperforming reflecting strength in for XXXX. Our helped loans loan the and of construction Popular historic year Credit local of the decreased an growth

year equity the XX%. ending strong, are with levels X ratio of Tier capital common Our

$XX.XX offset primarily Our securities by repurchase our by year, of unrealized share tangent book in lower value activity. by on per and income part losses driven the investment dividends share XX% and for increased net year-over-year

capital Our returning to us robust to position liquidity our capital and allowed continue shareholders.

resumption authorization. During XXXX, repurchase In the announced we our with million. quarter, X.X of stock $XXX we million buybacks $XXX the total, a during million for repurchased approximately shares of

shares attractive We continue to prices. that current believe at are our

$X.XX the we in by Additionally, per $X.XX quarterly dividend quarter, share. fourth common to increased our

X. a by driven These losses. the credit quarter closed Slide We from the trends net increase XXXX higher income of in an for million a period. interest third net last lower to the of achieving provision $XX and on results quality remained were income quarter. turn $XXX Please stable strong Credit of note, million, primarily

net by Our net quarter, points costs. the in interest driven deposit to million lower mainly and basis income by expanded interest X.XX% $XX XX increased by margin

to very As with by see million this We growth. that in $XXX X.X%. quarter, mentioned growth happy increasing banks balances loan to or was were before, I equally both contribute strong the

quarter, losses by our we higher in income. decreased the $X.XX share to activity price period, driven During repurchase value Tangible at net and an by per million by of roughly portfolio XXX share the unrealized average our $XX. purchased quarterly $XX.XX approximately investment shares in offset

the in unemployment The my fourth remained BPPR spending in in in of have card is Slide solid customers trends Business Consumer remained X. XXXX. at other economic expected not Mortgage activity increased as the to million something rate consumer retaining primarily lifetime. I compared loans driven strategy the home quarter activity fourth to by debit and increased loan portfolio. quarter for in data. total BPPR FHA by X% Rico current balances current employment, to credit Puerto that Combined and of healthy. sales by X.X% of spending and favorable purchase approximately our would turn in Please $XXX reflected see

increased new and compared $XX the The quarter third balances economy. tourism to auto of to for Our million to sector Rico. as strong continue continues demand cars by and a Puerto hospitality the be loan strength lease local in be source for

the brands Recently, plans the compared quarter to Juan several traffic development Airport by and San Rico. XX% healthy. prominent to announced the occupancy luxury hotel at fourth XXXX Passenger have of in for Puerto fourth increased hotel continues be International quarter

XX.X travelers Puerto million For visited the record a Rico. year,

federal of more for disbursement [ positioned details ] future I that support the our Jorge well ongoing market are of to and on coming support the over about results. account to to during We clients the primary remain expect On funds note, years. for optimistic will activity the our continue call turn now We years. several financial our

Jorge Garcia

today. call Ignacio. morning, you, thank Thank all for you Good joining the and

particularly to pleased the NII and results, the the with of We're with expansion Please X. NIM. turn quarter's Slide the growth

amounts commercial we with the with mortgage consistent led at in originations. BPPR, by lending, contributing commercial construction X% than banks each million and As we We primarily see growth million, in period. was throughout the in driven And lower costs all growth. deposit our categories, by activity quarter, fourth increase to income stated, our both nearly Loan we $XX $XXX Ignacio NII. continue $XX prior finished across saw Net net similar of PV, the higher increases that lending. strong, increases At million, increasing in the of the with quarter, million income auto towards interest year-over-year banks. the year reported increased $XXX in of by year, and a by

when approximately million, public balances balances $XXX lower compared public million. deposits to million while for by million. were Rico At deposits customer $XXX the were Ending BPPR, QX. fourth quarter, by $XX.X Rico average Average million of approximately Puerto end of increase balances decreased PV, million. balances $XXX increased an and deposit by $XXX Puerto by approximately $XX $XXX billion, approximately at decreased the average balances decreased approximately public by ending excluding deposits At

$XX the of $XX continue range billion we public be forward, to Going to billion. expect deposits in to

basis was In Our net as basis, business depreciation XX higher income equivalent December, income by from auto material margin daily offset basis we Noninterest by $XXX basis tax contributor flat points versus expenses. costs interest fee loan points This on and business balances. completed not sale to income million, lower of a car and the subsidiary. a by was rental the our expanded on net driven deposit popular generated mostly GAAP the was a QX. XX

little going bottom line. capacity the our completed transaction impact is will forward, sale Fed to discount borrowing increase at helps This to was no value, roughly the book further This simplify to and and window. at there business

fourth initiatives decreased provision million. $X with higher the by lower operating $XXX credit approximately million geared stage of part million expense, the a by to capitalized XXXX, fleet and increases development have a efforts due fee expect as rental offset decrease including contributed Therefore, flat costs to quarterly million mainly the income. equipment depreciation business million, result losses impact are during rental our The to were this IT vehicle of increasing personnel $XXX by we in XXXX, million largest were quarter. costs towards noninterest costs last stable income $XX The expense the offset the to of related noninterest These promotional to related by of Credit remained in to range for quarter. bearings projects the $XX income. now some as our daily the a $XXX metrics driven of were in be Total In transformation and fees, being in technology expenses sale, professional incentives. in reached quarter sale the seasonal lower business. and to expenses

year compared expect to full total by expenses XXXX, XXXX. increase X% we to In approximately

effective income. XX%, fourth rate the Our exempt tax higher quarter by tax in driven was

was effective rate For XX%. effective the for XXXX, to range the to year, XX% In the the XX%. expect we full in the tax rate be year of tax

Please turn X. Slide to

to average U.S. $XXX buying During X%. into X-year treasury to of at around maturities reinvest X- we continued the yield an notes, bond approximately million quarter,

points way lessen cost rates. as BPPR, public market-linked deposits. a continue XX our strategy to this basis the to basis to sensitivity cost of reduction X.XX%, due We deposit a XX [indiscernible] to point expect In decreased in by to lower mostly

quarter. Economic improved X% to activity loan benefited deposits. progresses. as deposit Florida. Rico by XX association we by points by Bank, decreased the our Popular draws high-cost improving recent with and Puerto basis fourth deposits continued from credit X% in of for and demand XXXX as reflected Bank. current condo at market, securities credit NII increase X% will we and growth XXXX, lower the expect to change lending of quarter, lower-yielding consolidated and the reinvestment deposits market in for cost This growth during continued and of rate in in lines in U.S. environment year public online cost At business loan X% Popular lower rate anticipate during We the our the strong. volumes demand and In of as construction originations well In remains repricing Rico Puerto driven

expansion We to expect NIM in continue XXXX.

U.S. biggest risk Puerto expansion the Our deposit the present NIM. mix ability Rico of and in the reduce to expected deposits the in to the to continue cost in the continue will of to level achieving

Slide remain capital Regulatory Please turn levels to X. strong.

in was portfolio, of dividends from MBS from mainly due end from quarter. decreased ] increase and growth per QX, $XX.XX, increase to in a of the quarter. per the the loan of mostly stock actions repurchase from the $X.XX Our of risk-weighted by CETX an quarter capital realized points losses activity resulting at [ during in value and XX% book share assets Tangible our ratio the in the our basis share QX, effects XX decrease

million we million driven $XXX of Return our the at for activity. XX.X%, At and by on roughly our XX% from quarter fourth existing buyback quarter higher provision was approximately quarter, increase repurchased authorization. of the an the repurchased an $XXX we of During end $XX. equity December, lower tangible shares last price approximately $XXX NII, expense in average million

term, at the management on anticipate to equity. tangible be and team continue XX% common least focused will quarter continue we as ROCI in return a a We on fourth XXXX sustainable achieving of to achieve XX% longer we

to With that, I turn the call over Lidio.

Lidio Soriano

reflected you, driven with increased Thank mortgage levels. portfolios. to Consumer and the during quarter loans quality metrics and pre-pandemic the good below personal portfolios and significantly net portfolios commercial stable reflect by metric card delinquencies credit fourth credit charge-offs Credit auto, and Jorge, remained continue morning.

improvements environment. the current the We the successfully of continue profile the we under the of performance loan positions and in believe that bids. risk our most risk portfolio are operate However, recent about to macroeconomic encouraged the given over practices recent years outlook Popular to management

value book #X. in $XX million decreased estate Popular of the by decreased $X million, $X in slightly Slide sales driven loans. million, assets portfolio. and by increased of driven the million, BPPR, quarter, in by commercial $XX driven NPLs million million BPPR to residential during loans increased by a auto by banks. Puerto NPL in NPLs by by increase a inflows decreased NPL properties Rico. U.S. Nonperforming the $XX Turning ORE by driven and nonperforming the sale loans Inflows by increased total million. [ ] of $X of $X by real leases. mortgage driven

$X NPLs decreased X.XX%. as In The points to a included an X to $XX of loan. total by ratio basis prior decreased million held Popular loans single quarter of in impact portfolio million Bank, mortgage the inflows

prior BPPR #XX. In Slide driven the net charge-off in to quarter. $XX or XX higher losses or annualized quarter-over-quarter. Bank, $XX to Turning amounted points compared points XX $X $X to Net million, by consumer flat charge-offs million. by by basis basis increased Popular million million Net in remained charge-offs

points full to basis XX XX points net were the the guidance year, XX at end For our low for of the basis year. charge-offs

prior discussed we As generally pandemic, charge-offs points. to in net XXX the basis XX between to COVID Popular's have past, were the

XX year between For expect and XX current points, given to trends basis the charge-offs the macroeconomic XXXX, full net we for to environment. be

portfolio increased in reserves the Popular #XX. Please was million driven compared loans. $X corporation by by In X.XX% held in to credit in allowance ACL $X increased In a in part ACL by Bank, P.R., quarter. The in commercial the turn million, to commercial by ACL in growth. loans increase offset a risk ratings part loans for Slide portfolio of $X million of decrease prior million. offset million $XX reserve to million driven by decreased $X X.XX% ratio U.S. by for the The losses improvements of by $XXX loans, consumer to in

prior NPLs XXX% of in losses the quarter. $XX While to XXX% The compared $XX provision previous in million ratio the the the ACL was million for quarter. compared to to was credit

Popular credit in during Bank, $XX BPPR, stable In provision decreased million, $X the million summarize, provision the was quarter. benefit quarter. compared the in To quality metrics by million fourth a prior the to remained while $X of

loan attempted by that, I We gracias. for to With evolve over the remarks, to to the performance We concluding Ignacio encouraged remain our are the like book. of call environment. turn would his

Ignacio Alvarez

a operating Thank you, income earnings a positive leverage. updates. XXXX Lidio, in good continuing adjusted your and year XX% our for was and improved Jorge for increase net trajectory Popular, with

were results solid loan Our growth and each growth. our driven stable of higher across by quality revenues credit continued regions, customer

addition, In to We producing initiatives some share transformation our pleased efforts our encouraging we made repurchase our results. in and increase dividend. of and great resume are progress are activity the quarterly already

am can our providing come. for our hard they entered for with of dedication on optimistic our in We footing I our entails communities and value ensure continue continued the promoting meeting leverage and our the Rico will This year Puerto changing the franchise. work in the throughout the strength workplace and organization employees to about transform for a we We the serve of years many thankful where stability shareholders. thrive, the for generating as a economy customers, our to rapidly needs progress and year. strong to colleagues XXXX our sustainable of success prospects

now to are ready your questions. We answer

Operator

Instructions] [Operator

from comes Hovde Rabatin Brett question First Group. with

Brett Rabatin

with trends seems bank, funding costs. core start the net to high leaving some with worth yields. of the what costs And seeking this significantly bank quarter. funding quarter, the and and and in balances. the retail worth you in to you had higher some Wanted retail net high last phenomenon deposits, that like you related maybe saw the talk about abated changes and Can It

Jorge Garcia

Jorge. It's Brett. Sure,

in nonpublic happy in the deposits $XXX look about very and were quarter the with in by higher general on $XXX at deposits about a fourth stand-alone million and we were quarter we the down. an the Rico million increase Puerto activity. and basis, -- First, average If

is the about those assets into million set our going high that from under XX% increase A for lot increased We've commercial You popular this clients. $XXX for management, about of The supported over year. from a continued. asked net commercial fourth that in ] did asset The [ benefit some during management deck. so activity month our has see and in clients. by activity pace quarter of about That the subsidiary worth growth a seasonal securities

clients.

We our around branches of exceptions. good from clients and a deposits retaining efforts also traction lot saw growing in in rate particularly

our During the demand be of This fourth affluent shift a in the resulted $XXX transactional balances account. during quarter, used month we also cost about to what launched into a low-cost new clients. million product X in a affected targeted mass at in December. This deposits

think million baseline about still release. the that's estimate that I potential we in $XXX finding in some of I of that detailed overall, million work to $XXX to risk. continue of QX, But see we think our press kind our towards that of can talked reports in at that our you level deposits, of kind

the the quarter. in happy efforts very the activity results the of our teams, and fourth However, with we're given how

Brett Rabatin

helpful. That's And just -- Okay. then yes.

and little you be like from higher of deposit the it, assuming year. look gave and would X points during on expectations you pick year, margin throughout XX And the wouldn't Or maturities be better If increase I into the XX you guide, than betas a margin stronger. seem any the really treasury or about why here notes, guys that at XX Are it, it the it the but could it If thoughts with I up? basis that quantify for year. Slide points I the hear basis didn't it's didn't NII when back the but are that.

Jorge Garcia

guidance, any do going driven deposit in Yes. provide We costs. Brett. lower to continue don't by part to We expand it's believe NIM XXXX, in

billion XX market As the should our the off in full And NII come to coming linked, you came contribute that basis still that's quarter, the down. continue the know, at XXX down portfolio the points running rates rates and of what seen the that maturities they're Puerto benefit the growth. books, Rico we to we are in certainly, basis higher points that reinvest expansion public than deposits had of fourth and short-term around a about process NIM as with investment help month haven't $X

Brett Rabatin

in few if like double guide over just in portfolio what's that or could to the with one Puerto to card consumers you're of noticing past And that in sneak the last seeing portfolio Okay. color it It like seems -- with digit. with NII I terms particular. or continues Any be quarters looks what on XX, increase in could Slide one core retail trending of the Rico credit weakening any around it you're charge-offs. in relative terms

Lidio Soriano

that into I compare the would Generally, I a late terms terms we U.S. that -- say when are the is we stage terms we Puerto chaff, you of bit in think in are the of here of Rico. Puerto -- late Rico in were to my and delinquencies little at process view come that of cycle in

very are as given trends. is whole the outlook macroeconomic mentioned remarks, prepared a and environment we I performance, think [indiscernible], the and for encouraged We recent the consumers favorable as by in the

Brett Rabatin

enough. finish Fair Congrats 'XX. on Okay. to strong a

Operator

from KBW. Motta question with Kelly next Our comes

Kelly Motta

is provide I'm how much million into that risk able that $XXX outlook of already expecting to kind million biggest off. the margin. commentary are identified. wondering much to appreciate you you underlying how is baked the of that level of back to million provided you still risk to just $XXX to I you're to here. that roll the that $XXX still $XXX million the Wondering pressures, -- potential deposit guidance, circling achieving Maybe the that the that the

Jorge Garcia

can how that our we're when doesn't mean so hard, of estimates I that tell I working corresponds. and But best you considers very Yes. that the certainly, outlook happen.

to deliver on hope we those. of on So under-promise retention [indiscernible]

Kelly Motta

Okay.

So $XXX million, outflow to because I'm not if this me $XXX please the you that of some hearing I'm million you're correct of wrong, but all doing? includes correctly, if it and of the guidance efforts potentially

Jorge Garcia

that do Correct, estimate it include expect seasonality. I that Remember our we does see mean guidance. best Kelly. of to some

the First saw year, second mid quarter in late that last deposits to tend continuing March. to we tax of quarter. beginning the benefit from And returns

XX% pre-pandemic baseline expense we're settle? what does is when does Our still to balances where higher see at So And it customers were that does where that happen? looking retail -- levels. our

So we're But our more teams expectations certainly, the that. of outflows to and on are continuing to with our part with and work try some visibility get our risk guidance. those

Kelly Motta

Got it. guidance, your I about there's $X quarter. clarification's fee helpful. And then with million appreciate a

efficiency think million impact of to related I some a where explain minute working take to potentially businesses, good fees $XX the for initiatives That these that you the some of believe. sold. some your know through you business Can you your core implies to in here. efforts towards you've, you're I traction? been just said outlook growth seeing I

Jorge Garcia

fee On still our and of a our fee clients, commercial purchasing clients from income. see the card commercial we've big call with continued income also our some demand we to what we're some activity had from income, rolling clients, contributor activity, both some and those noninterest efforts price of success for benefit out our that with value retail as credit we

Kelly Motta

and question spoken from this then basis uptick consumer the and Last an year, normalization. for points of guidance implies me I'll XX you've back. step The net last it. charge-off to Got

a on of said towards Just the through? first you're if consumer little that flow cadence that were of the pieces is some of bit tightening walk if to the would kind of late charge-offs to the through wondering year? on thinking you Or if we there's just part how the as more to if standards you of wondering -- be there expect some of book moving any the and could cadence

Lidio Soriano

was being I improved would prepared to become mentioned XX [indiscernible] everything mean is we as -- vintages as seen I going basis of to prevalent will over [indiscernible] I the have performance improved this balances remarks, to those And lead overall say, said equal, are that, in time. more see our expect Kelly, that I we Having in vintages points. improvements recent our performance. that I mean,

within are the full the we we that So stated range for year.

So first would slightly maybe in in lower terms said. second that to the the of half say, during you half, everything higher given cadence, I

Operator

[Operator Instructions]

Frank Schiraldi Sandler. We now with to turn Piper

Frank Schiraldi

Just one head, to core on $XXX more million. the on the deposits million $XXX

that places. deposits. of other it? way any it, assume I the through there, I if did maybe replaced And specific that's sort wrong see And mean flow XQ specific of and maybe already you you've deposits in thinking the out work Just about done reflects that just in by curious think to

Jorge Garcia

focus the nonpublic. mean seeing balances, think average we're in $XXX quarter of would of I I were the I Puerto down that we more about -- at more our be -- it million terms look think those in on in and Rico

source of In clients, ] sources, have balances client management that [ But you being and commercial of from higher really I I've of corresponds comes activity, It's we forward. saw of that some fourth access can working in yield, retail small significant to business, the are CFO the things in on asset that. general individual know clients, powering like terms the of the and of large fourth moving when so that activity at how necessarily lot of we to end going to particularly been can the the behaviors higher that -- balances use that our increase we we for we benefiting see it clients different they're quarter tie to have quarter. don't exaggerating a outflows perspective. capital, pressures a good tell that maybe We making just lending spending from more decisions a

Frank Schiraldi

Okay.

on potentially comp. So the to then that I saying guess million $XXX is million the still $XXX you're

think at you as the end number risk still that's still you quarter. of the Are said. -- the I what that's of

Jorge Garcia

believe lower will by growth. we right? XXX and us important mean here message retention out, the that we already think I high the in Maybe the help deposit I went is are efforts actively bound making

of evaluated the our teams are and efforts, by sure the we are proper at that focus activities the make incentives that teams. think to you being encouraging I when look the

give that I think right some all things on those track. the make -- comfort we're us

Frank Schiraldi

forward. Okay. And through to then think going just on cadence buybacks, just trying

think, X.X this shares Last think I X although that million quarter, I was only months' about was worth. it quarter. $XXX,XXX,

you're more sort you would guess, more going see a reasonable with expect I bit here that to is little volatility every here price forward? we of assuming more given So same a as where stock say the of down. that stock a Is the little to price optimistic of opposed just quarter cadence Should the kind of expectation?

Jorge Garcia

quarter that's we level a buyback. I all you'll fair think softening of you'll saw our our I over think of have to and sense efforts. the have continue we and buying over a do into certainly I some like And opportunistic expectation. of a mean doing it's our our what lower a get We'll -- stock the But attractive. price with the little after But of time, were the still I results, goal think and flexibility price. third kind that sense peers of repurchase time, we're where we normalized get we it's on activity. in price is better our at,

Frank Schiraldi

lastly, levels. but XXX, there is Okay. important Obviously, we basis it's Rico, as would bank Puerto about think required to assume normalized peers, in And over that, then just think XXX capital a excess whatever, I some I it's -- don't systemically capital when points. tied just

trends time? on CETX more maybe or thoughts a So normalized just that provide on ratio how color curious, any over can your just you

Jorge Garcia

with margin, that would would lower in Rico, not a a right? more with points. unwinding to do a favor require Yes. not while and or agree higher in we be believe we does XXX given to need concentration step reduction you we We that it gradual that, basis but it -- Puerto The we our XXX operate do function,

Operator

We now RBC Cassidy turn to with Joe Markets. Capital

Gerard Cassidy

island low was your ago, And didn't caught I years heard out XX was didn't tough about if economic the spot to the I question really the think being leaving was be could pretty it. weak. was correctly. And island It's the Rico recall you reaching like comment a Puerto really Mainland about so my rate migration it when your this, lifetime, by they people I is environment you because the and very unemployment in weren't the steady. from because Ignacio,

Now of Puerto Are really diminished, very to leaving you the color of amount people people back there? strong. seeing or any from any coming evidence Rico the it's mainland has

Ignacio Alvarez

Bureau many very Well, the in net first said migration, but we had years, time has for small, the we report, Census that in it XX,XXX, Gerard, positive that positive. was

the albeit yes, small, has is trend So positive. it's it and reversed,

has that So changed.

So you you anticipated the trends.

Gerard Cassidy

really Congratulations. That's good hear. Yes. to

insurance The the Puerto unfortunate and years course, all the as the natural the of the experienced amount well aid federal money, second that have Can which monies amount left question, bigger over from because There that picture terms has have from of you dollar enormous have us COVID island do of anything I of the Rico of the an federal to here government? disasters what's we into as then, experienced. was Rico assume all dispersed been in expects that the receive natural disasters. Puerto you share with came

Ignacio Alvarez

Yes.

it's if about you Congress. about FEMA related and by talking there's -- -- and -- look which $XX that, that's most between could billion, is Maria, the think majority, basically funds billion I recovery obligated the to HUD, about billion about at and you $XX.X are we're the between $XX -- the the of

principal the and have. X So that we there's programs lot are there, money those a of

Gerard Cassidy

that might Got us major or some are where give of to -- it. you And terms are rebuilding what insights, major other if with projects? the -- electrical remaining type what money grid some projects are go municipal some in that of the some could of of types

Ignacio Alvarez

water. FEMA X as well would as grid and FEMA mostly are categories: centered the X be electric really There around

water another there's So one. there's There's a some number plants, flood highway. of water projects lot. per is wastewater, filter control a for And

between say, I'd it's mostly, So infrastructure.

of the control. lot grid. So lot flood mostly a electric a the water, it's There's on

are example, For revitalized, -- dams stronger. being the being they're making dams, dams it trudging the are

So there related to And which mostly and is there's HUD, do funds, housing. slug mostly a to has of basic with that's infrastructure. another big

impacted were build Hurricane of persons so by there's to programs number And housing a who for the Maria.

those X So -- big the big areas. the are

Gerard Cassidy

safe to that would X-year to will all is X- longer? this it And that rebuilt? period it's be a it Or type assume take

Ignacio Alvarez

Different I -- and of sooner, think bridges I will will the longer. of project. some will grid think it is the but some XX-year electric say, X- to an to take XX-year and project, be take the things on, roads building X- basic of

it think not longer at be go done the course, of I see time. for more a the out will But Of complex period money It's over operation. grid once. a you'll

Operator

from comes question next Jared Our with Shaw Barclays.

Unknown Analyst

area see the just infrastructure. This is [indiscernible] to lot maybe There on left that guess to past? Year's power outage this response speed guess, the to to or on islands just able I this was change of up on you outage the were I overall I without like the power. sticking that of a investments for guess, that of due Jared. New an in in getting to relative back in, any the investments in

Ignacio Alvarez

long way Yes. go I on to there's grid. still mean, electrical a the

up. of that work So back I back probably that did, the went of people perhaps of the what don't major the faster simply little now. bit lot Luma than came know fight But the of that system, the putting lot they improving I the say has would The system think in been a out. in to past. we basis back thing And understand is response is a we done a works is the time. It sooner.

yet radically can't generation system new works. the for because haven't for lot a you distribution expect of results So different is in and the you investment --

XX-year I period. mean why it's say that's again, they X- I some have So done to adjustments. a

the trees or doing blackouts because are caused they're lines. not, they very like hitting it putting [indiscernible]. by XX% basic trees think I the stuff that claimed Believe of

back they improvement require to of it stages expect in So of distribution and the they think new in system be major going improvement we And actual early is up, and the a system. real less is But that. I system of we're ability over have these in in and the investments basically, investment generation. blackouts the time. still back the The put to up

Unknown Analyst

like half into a end the, that jumping steady upper the X% year the guys? off the then or of annualized end guess you the maybe and for of point to kind growth -- on rate that Is a range Okay. in ramping good good X% And I run like it guess, seems plus trajectory the I Great. rate second color. of the year. of X% growth just XXXX, of That's kind into by the loan

Jorge Garcia

is The of XXXX measuring December to the would X% to X% compare year-over-year be we and XXXX. the stand back It of at growth. end --

Unknown Analyst

from Was growth into quarter loan terms there -- with forward the any Okay. fourth levels. in higher the just pull of

Ignacio Alvarez

is Yes, Ignacio. this

and of big a fourth we very from in. quarter came So had a loans and lot banks both strong

happy a with So they want. that We're because the balances the the books little our quarter. those start impact of the close probably end of beginning of quarter to bit at obviously, fourth lot will on first a going those

positive very be to for going it's So us.

Unknown Analyst

Yes.

Okay.

months? the then book good just next X, one yield. last me. for X% are XX rolling the to around off like Sounds color. sounds It securities And over you're at -- at last adding they What

Ignacio Alvarez

bonds, X.X%. like X%, right? our [indiscernible] lower under -- Yes, data Not [indiscernible]. as

Operator

from a have follow-up Motta with We KBW. Kelly

Kelly Motta

to in a you And us could and one remind I for the system. I we're deposit bigger liquidity seasonality question to I letting on. cadence can then back there of help those in were hoping trends. much kind be And think -- couple you quarter. me I items way had at that in on. those house some just of excess keeping you how be odd flows it closed was One, about seasonality the mentioned now part Is years to picture the Thank seasonal? quantify jump of the it's a been mean, with get of

Just the that a helpful from be on modeling through cadence of year, goes if a kind would perspective. reflector could that we how get

Jorge Garcia

tax the in see clients. quarter, we refunds of first some to the mean I Yes. our retail

that in stabilization remember, average I think in the end we from think we quarter But if seen had I early the benefited second and that quarter, benefit by return, onetime government all And second last we did but was the -- of Rico only not people of quarter. normal increase that some obviously, the second from you even their that point-to-point. year went tax we an lenses also that rebate in into on activity a the Puerto of trial the higher XXXX. as on saw --

COVID the today I'm as historical -- we fourth we've a quarter, evidence of help saw identified because quarter, where this we've Third if be some And it, quarter, that nothing inflow. driver we that in would there's outbound really that an the -- there's activity money. saw amounts that but would or that sorry, to show seen also all headquarters

arms we mitigate range it's a around try giving It's the message think risk. So But of are why to to such really we we get trying of baseline, -- mean, active we're are that kind we what of to is Kelly. at that efforts we I that to have provide our part important that activity. broader again, I want believe

Kelly Motta

million And to expenses housekeeping relative the the GAAP kind FDIC the in That's expense clarify clarify an had Okay. your you then adjustment could ... another year I for if which question the correct guidance, just that's I year. starting you just was was special or increase to of helpful. higher. reported assessment, wanted $X that regarding believe a for base hoping XQ X% I on

Jorge Garcia

give the the the guide, the all GAAP guidance We basis for a on metrics.

Kelly Motta

but up knows, you sure risk kind it. the how of anyone noise an his for I'm was ability to the on question and and funds. Rico it's early, night, Got could thinking how it's hard but play give of if an Last the works here? if flow I Trump I order it of me. executive gum it. or potential impacts from out, you're it could come just Puerto update if saw wondering know know or these things I that not had to last federal Got on

Ignacio Alvarez

executive early, electric the stated related language But you initiatives, initiative, some funds green broad. to statement it's their vehicles. are initiatives recovery the DEI own and like more their the Well, are that Yes. very of the the they don't by administration, said, is of very orders in energy at they've directed target that the I believe promoting personally electric vehicles,

its So weeks. see should don't we'll very funds coming their most it I'm but of terms funds, it [indiscernible] to have that by was we'll words. Puerto they confident the the to order that impacted Rico broad the in get last to clarify recovery be X believe I language, see not directed but of recovery say infrastructure in

So we're being like being treated singled Rico not Puerto any out. other state territory. or

But least So are not many optimistic be the these at of obviously, we'll carefully. I'm initiatives. again, that we target relatively of watching

Operator

Instructions] [Operator

RBC follow-up with Cassidy from have We a Markets. Capital Gerard

Gerard Cassidy

the if and prepared apologize addressed As this guys remarks. I you in question, a follow-up

changing, was of about banks. versus or changes underwriting months the XX credit underwriting made mentioned some the for cards you credit ago? Can standards maybe what what later I of share little You for think, it originations cards a mainline than like the new for you the XX with us type

Lidio Soriano

you, Lidio. is This Thank Gerard.

at mainland. compared clarify in mentioned enter me our Let I that credit or net later net when book performance of in the and consumer was you you the card that book charge-offs levels look and the U.S. the [indiscernible] charge-offs delinquency to we or saw delinquency increase occurred

have than terms lend we of we difference. are But criteria, changes much we under underwriting I -- mean, that when our have that we We in made to higher they make So the the were criteria. we FICOs that's the tightened changes. -- the

Operator

hand I'll remarks. final back for now This Ignacio Q&A. to concludes any our Alvarez, CEO,

Ignacio Alvarez

quarter April. and look joining updating questions. again to today forward you on your in Thanks us for We for results our first

day. Thank you much. have a everyone, so great And very

Operator

to participation. you call now today's your has We'd gentlemen, and for Ladies like thank concluded.

You now disconnect your may lines.

Popular (BPOP) 28 Jan 252024 Q4 Earnings call transcript