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OFG Bancorp reports $608M in ’22 revenue, $168M in 4Q22

OFG Bancorp, the financial holding company for Oriental Bank, reported $607.8 million in revenue for the year ended Dec 31, 2022, and $168.3 million for the fourth quarter ended on the same date.

The quarterly result represented a jump from the $141 million in the books for the fourth quarter of 2021.

“The fourth quarter reflected total core revenue growth of 7.3% quarter-over-quarter. Key performance metrics improved, with return on average assets of 1.86%, return on average tangible common stockholders’ equity of 20.36%, and an efficiency ratio of 54.45%. Tangible Book Value per share increased to $19.56,” said OFG CEO José Rafael Fernández.

Net interest income for the fourth quarter reached $135.3 million compared to $104.2 million in the same year-ago last quarter.

“Puerto Rico businesses and consumers remain in good financial shape. We look forward to a year of continued progress in 2023, keeping a watchful eye to uncertainties from Federal Reserve Bank rate actions, inflation, and the forecasted mainland recession,” he said.

OFG’s banking and financial service revenues reached $33 million in the fourth quarter of 2022, compared to $36.8 million in the fourth quarter of 2021. The financial institution confirmed that the fourth quarter reflected higher electronic banking activity and higher gain on sale of mortgages compared to prior three-month period, which was impacted by business interruptions from Hurricane Fiona.

“We’re extremely proud of the work we did last year, and our performance reflects that. We achieved great progress executing our strategies for the benefit of our customers, deploying technology, expanding, and improving our network and investing in people and talent,” Fernández said.

“We took major steps forward in our digital first business transformation, solidifying our position as a challenger bank, differentiating us from our competitors,” he said.

During a call with analysts to discuss the results, Fernández also said “in addition to ATMs, we now have seven self-service banking kiosks and 23 interactive teller machines as part of our enhanced sales and service banking network. All this has contributed to our strong financial results.”

“Our performance metrics are at the highest they’ve ever been to-date. The Puerto Rico economy is also doing well. Businesses and consumers remain in good financial shape. We look forward to another good year with a cautious eye as always on economic and financial uncertainties,” he said.

Author Details
Author Details
Business reporter with 30 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other segments of Puerto Rico’s economy.

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