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…
Earnings analysis · 10-Q
BPOP earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.35
What stood out
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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.
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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.
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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.
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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.
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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%.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.