BPOP earnings analysis
What we found in BPOP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Popular delivered strong Q2 2026 earnings growth: diluted EPS rose to $4.35 from $3.09, net income increased 32% to $278.2 million, and net interest margin expanded to 3.66%. Both BPPR and Popular U.S. increased net income, supported by loan growth, Treasury securities income, lower deposit costs and controlled expenses. The principal offset is rising commercial credit pressure, including a $71.3 million charge-off and $129.0 million of new commercial and industrial NPLs, while Puerto Rico public-deposit concentration and lower available liquidity remain important balance-sheet risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS rose 41% year over year
- Q2 diluted EPS was $4.35, up $1.26, or approximately 41%, from $3.09 in Q2 2025, and exceeded the reported consensus estimate of $3.67 by $0.68.
- Strong net interest income expansion
- Net interest income increased $61.9 million to $693.4 million year over year. Net interest margin expanded 17 basis points to 3.66%, supported by higher Treasury yields, loan growth and lower deposit costs.
- Profitability improved materially
- Net income rose $67.8 million, or approximately 32%, to $278.2 million from $210.4 million. Operating expenses declined $8.6 million to $484.1 million despite technology and software investment.
- Both banking segments grew earnings
- BPPR net income increased $48.4 million to $232.9 million, while Popular U.S. net income increased $14.0 million to $36.6 million. Corporate-group net income improved to $8.8 million from $3.3 million.
- Deposit growth supported balance sheet
- Deposits increased $4.0 billion to $70.2 billion from December 31, 2025, while loans held in portfolio increased $422.3 million to $39.7 billion. Common Equity Tier 1 capital improved to 16.08% from 15.72%.
- Capital returns remain substantial
- The company repurchased 1,988,767 shares for $280.5 million during the first six months of 2026 and announced a new repurchase authorization of up to $1.0 billion, alongside a planned quarterly dividend increase from $0.75 to $0.90.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Higher commercial credit losses
- Provision for credit losses increased $16.9 million to $65.9 million year over year. BPPR provision expense rose $18.6 million to $61.8 million, driven by specific reserves and a $71.3 million charge-off tied to a $155.0 million nonperforming loan.
- Commercial NPL inflows increased
- Commercial NPL inflows excluding consumer loans increased $145.3 million year over year. Two commercial and industrial relationships totaling $129.0 million became nonperforming during the quarter.
- Asset quality remains mixed
- Total NPLs held in portfolio declined to $413.4 million from $498.3 million at December 31, 2025, but total nonperforming assets increased to $546.7 million from $540.8 million and included $83.7 million of loans held for sale.
- Concentration in public deposits
- Puerto Rico public deposits totaled $22.7 billion, or 32% of total deposits, and management expects them to range between $20 billion and $22 billion through year-end 2026. The filing states that the timing and amount of changes are uncertain.
- Liquidity and rate sensitivity
- Available liquidity declined to $26.3 billion from $27.0 billion at December 31, 2025. The company also reported $1.5 billion of borrowings and noted that its net interest income would decline 0.38% under an instantaneous 200-basis-point rate increase scenario.
- Reserve coverage declined
- The allowance for credit losses declined to $784.8 million from $808.1 million, reducing ACL coverage to 1.97% of loans from 2.05%, while annualized net charge-offs rose to 1.05% from 0.45% year over year.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.35
- Segment
- Banco Popular de Puerto Rico (BPPR): Q2 net income $232.9 million, up $48.4 million year over year; net interest income $589.9 million, up $51.4 million.
- Segment
- Popular U.S.: Q2 net income $36.6 million, up $14.0 million year over year; net interest income $113.1 million, up $10.9 million.
- Segment
- Corporate group: Q2 net income $8.8 million versus $3.3 million in Q2 2025.
- Segment
- Total company: Q2 net income $278.2 million versus $210.4 million in Q2 2025; total revenue is not disclosed as a single filing metric.
What they said about what is next.
No explicit revenue or EPS guidance was provided. Management expects Puerto Rico public deposits to range between $20 billion and $22 billion through the end of 2026; operating outlook is otherwise qualitative.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- Popular, Inc. reported a strong performance for Q1 2026 with a diluted EPS of $3.78, significantly surpassing expectations of $3.23. Despite actual revenue of $670.18 million falling short of estimates, the company…
- 10-K · March 2, 2026
- Popular, Inc. (BPOP) presents a stable banking franchise concentrated in Puerto Rico and selective U.S. markets with consolidated assets of $75.3 billion, deposits of $66.2 billion and stockholders’ equity of $6.2…
- 10-Q · August 11, 2025
- Popular, Inc. reported a stronger quarter with net income of $210,440,000 and diluted EPS of $3.09 (Q2 2024: $177,789,000 and $2.46). Total revenue (total interest income plus non-interest income) rose to $1,112,349,000…
- 10-Q · November 12, 2024
- Popular, Inc. reported Q3 results showing income and EPS improvement year-over-year: net interest income of $572,473 and net income of $155,323, with diluted EPS of $2.16 (Q3 2023: EPS $1.90). Credit costs and interest…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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