Popular(US:BPOP)2024-07-24 11:02Financial Performance - Net income for Q2 2024 was $177.8 million, up from $103.3 million in Q1 2024, representing a 72% increase[7]. - Excluding certain transactions, adjusted net income increased by $42.6 million compared to adjusted net income of $135.2 million in Q1 2024[8]. - Basic EPS for the quarter ended June 30, 2024, was $2.47, up from $1.43 in the previous quarter and $2.10 a year ago[65]. - Net income for Q2 2024 was $177,789 thousand, a significant increase of 72.1% compared to $103,283 thousand in Q2 2023[75]. - Diluted net income per common share for Q2 2024 was $2.46, compared to $1.43 in Q2 2023, representing a growth of 72.0%[75]. Income and Revenue - Total interest income for Q2 2024 was $921,907 thousand, an increase of 3.1% from Q1 2024 and up 15.9% from Q2 2023[74]. - Net interest income reached $568.3 million, an increase of $17.6 million from Q1 2024[8]. - Non-interest income was $166.3 million, compared to $163.8 million in Q1 2024[8]. - Total non-interest income for Q2 2024 was $166,306 thousand, an increase of 1.5% from Q1 2024[74]. - Non-interest income rose to $166.3 million in Q2 2024, an increase of $2.5 million from $163.8 million in Q1 2024, primarily driven by higher service fees[29]. Expenses and Efficiency - Operating expenses totaled $469.6 million in Q2 2024, a decrease of $13.5 million from Q1 2024, but increased by $7.2 million compared to adjusted expenses[34]. - Total operating expenses decreased to $469,576 thousand in Q2 2024, down 2.8% from $483,113 thousand in Q1 2024[75]. - The total personnel costs for Q2 2024 were $197,424 thousand, a decrease of 8.3% from Q1 2024[74]. Asset and Deposit Growth - Total assets increased to $72.8 billion as of June 30, 2024, up $1.9 billion from the previous quarter, driven by higher cash and money market investments, securities available-for-sale, and loans held-in-portfolio[55]. - Ending deposit balances rose to $65.5 billion, an increase of $1.7 billion from Q1 2024[9]. - Total deposits rose to $65,530,862 thousand, reflecting an increase of $1,722,078 thousand compared to the prior quarter[77]. - Deposits rose by $1.7 billion, primarily in the Puerto Rico public sector, with time deposit balances at Popular Bank increasing despite demand deposit outflows at BPPR[56]. Credit Quality and Allowance for Credit Losses - Credit quality metrics improved, with non-performing loans decreasing by $12.3 million and net charge-offs down by $8.6 million from Q1 2024[8]. - Non-performing loans decreased by $12.3 million to $341.8 million as of June 30, 2024, with a ratio of non-performing loans to total loans held-in-portfolio at 1.0%[40]. - The allowance for credit losses was $730.1 million as of June 30, 2024, with a ratio of 2.05% to loans held-in-portfolio, down from 2.11% in the previous quarter[45]. - The provision for credit losses for Q2 2024 was $44.2 million, significantly lower than $72.4 million in Q1 2024, reflecting improvements in credit quality[47]. - The total allowance for credit losses (ACL) reached $730,077,000, representing 2.05% of total loans held-in-portfolio of $35,591,620,000 as of June 30, 2024[110]. Stockholder Returns and Capital Management - The company announced a 13% increase in its quarterly common stock dividend, raising it from $0.62 to $0.70 per share[12]. - A common stock repurchase authorization of up to $500 million was also announced[14]. - Stockholders' equity increased by $195.4 million from the first quarter of 2024, mainly due to net income of $177.8 million and changes in accumulated other comprehensive loss[57]. - Total stockholders' equity increased to $5,372,678,000 as of June 30, 2024, compared to $5,177,314,000 on March 31, 2024[122]. Market Performance - Market capitalization reached $6.399 billion as of June 30, 2024, compared to $6.368 billion in the previous quarter[65]. - Return on average assets increased to 0.97% for the quarter, compared to 0.57% in the previous quarter[65]. - Return on average common equity rose to 10.38% from 6.07% in the previous quarter[65]. Employee Metrics - Full-time equivalent employees increased to 9,241 as of June 30, 2024, from 9,132 as of March 31, 2024[35].