Yahoo Finance

• Annual Net Income: $614 million, compared to $541 million in 2023.

• Adjusted Net Income: $646 million, 10% higher than in 2023.

• Total Loan Growth: $2 billion, an increase of 5.8% for the year.

• Common Equity Tier 1 Ratio: 16% at year-end.

• Tangible Book Value Per Share: $68.16, increased by 14% year-over-year.

• Stock Repurchase: 2.3 million shares for approximately $220 million in 2024.

• Quarterly Common Dividend: Increased by $0.08 to $0.70 per share.

• Fourth Quarter Net Income: $178 million, an increase of $23 million from the third quarter.

• Net Interest Income (NII): Increased by $18 million in the fourth quarter.

• Net Interest Margin (NIM): Expanded by 11 basis points to 3.35% in the fourth quarter.

• Fourth Quarter Loan Growth: $913 million, or 2.5% increase.

• Noninterest Income: $165 million, flat versus Q3.

• Provision for Credit Losses: Decreased by $5 million to $66 million in the fourth quarter.

• Total Operating Expenses: $468 million, flat with last quarter.

• Effective Tax Rate: 20% in the fourth quarter; 23% for the full year.

• Return on Tangible Equity: 11.2% for the fourth quarter.

• Net Charge-Offs: $77 million or annualized 74 basis points in the fourth quarter.

• Allowance for Credit Losses (ACL): $746 million, with a ratio of 2.01% to loans held in portfolio.

• Warning! GuruFocus has detected 6 Warning Signs with IVZ.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Popular Inc (NASDAQ:BPOP) reported a strong annual net income of $614 million, up from $541 million in 2023, with an adjusted net income of $646 million, reflecting a 10% increase.

• The company achieved significant loan growth, with total loans increasing by $2 billion or 5.8% for the year, driven by strong performance in commercial and construction loans.

• Credit quality remained stable, with nonperforming loans decreasing slightly and net charge-offs staying below historic levels.

• Popular Inc (NASDAQ:BPOP) maintained strong capital levels, ending the year with a common equity Tier 1 ratio of 16% and a 14% increase in tangible book value per share.

• The company resumed share buybacks with a $500 million stock repurchase authorization and increased its quarterly common dividend by $0.08 to $0.70 per share.

Negative Points

• Higher operating expenses and a higher provision for credit losses partially offset the increase in net interest income.

• The tangible book value per share decreased by $0.88 to $68.16 due to higher unrealized losses in the investment portfolio and share repurchase activity.

• The credit card portfolio showed an increase in charge-offs, indicating some pressure in consumer credit quality.

• The company anticipates net charge-offs for 2025 to be between 70 to 90 basis points, reflecting potential challenges in maintaining credit quality.

• There is a risk of deposit outflows, with $600 million to $800 million identified as potentially at risk, which could impact funding costs and balances.