Popular Inc. reports $178M in Q2 net income, up $26M YoY
The financial institution also saw quarter-over-quarter growth.
Popular Inc., the parent company of Banco Popular de Puerto Rico, reported net income of $177.8 million for the quarter ended June 30, compared to net income of $151.1 million during the same quarter in 2023, representing a $26.7 million year-over-year jump.
The financial institution also saw quarter-over-quarter growth, reporting $103.3 million for the quarter ended March 31.
“Excluding the impact of certain transactions from the results of operations for the first quarter of 2024 [FDIC Special Assessment and prior period tax withholdings], net income in the second quarter of 2024 increased by $42.6 million when compared to adjusted net income of $135.2 million in the first quarter of 2024,” the financial institution stated in its quarterly report.
Net interest income amounted to $568.3 million, an increase of $36.7 million compared to the $531.6 million reported during the same year-ago quarter. The current result also shows growth of $17.6 million compared to the first quarter of 2024.
“We’re very pleased with our financial performance for the quarter. Our strong earnings were driven by higher net interest income and lower provision for credit losses,” said Popular Inc. CEO Ignacio Álvarez.
“We also expanded our net interest margin by six basis points. Credit quality trends remained positive, with lower net charge-offs as well as lower levels and inflows of non-performing loans,” he said.
As for the Banco Popular de Puerto Rico subsidiary, the financial institution reported net interest income of $488.7 million for the second quarter of 2024, an increase of $15.9 million when compared to $472.8 million in the previous quarter.
Net interest margin was 3.22% in the second quarter of 2024, compared to 3.16% in the first quarter of the year.
“Our solid capital position allows us to continue to serve the needs of our customers, while prudently increasing our dividend and returning capital to our shareholders. Reflecting this strength, we announced a 13% increase in our quarterly common stock dividend and a $500 million common stock repurchase authorization,” Álvarez said.
Simultaneously with the quarterly report, Popular Inc. announced a pair of capital actions — common stock repurchases of up to $500 million and an increase in the corporation’s quarterly common stock dividend from $0.62 to $0.70 per share, commencing with the dividend payable in the first quarter of 2025, subject to the approval by the corporation’s board of directors.
