Popular Inc. reports $212M in 1Q22 net income, down $51M from 2Q21
Popular Inc., parent company of Banco Popular de Puerto Rico (BPPR), reported net income of $211.7 million in the first quarter of 2022 ended March 31, reflecting a loss of $51 million when compared to the same period in 2021.
In a call with members of the local media, Popular Inc. CEO Ignacio Álvarez attributed that drop to high provision benefits in 2021 and the freeing up of reserves to cover potential loan losses, which did not materialize.
The most recent quarter is compared to the last quarter of 2021, when Popular Inc. reported net income of $206.1 million.
“We had a solid quarter with net income of $212 million, building on the momentum of our record 2021 results. We saw broad-based loan growth, across geographies and most business lines, while maintaining strong asset quality metrics,” he said.
“Net charge-offs were five basis points for the quarter. We continued to see deposit growth from our private sector clients. Our deposit franchise in Puerto Rico will be an even greater source of strength as interest rates rise as expected,” he added.
Net charge-offs were $3.8 million, compared to a net recovery of $7.9 million in the fourth quarter of 2021.
“Our capital ratios remained strong, allowing us to continue to return capital to our shareholders and increase our common stock dividend. Going forward, we remain optimistic about the economic outlook, yet cognizant of the possible challenges to the macroeconomic environment resulting from the war in Ukraine, inflation, and the evolving health situation,” Álvarez said.
The bank’s non-performing loans decreased by $179 million to $519 million during the first quarter of 2022, when compared to the $698 million on record for the same quarter in 2021.