Popular Inc. reports net income growth in Q4, full year 2024
Its stateside loan division saw increased activity in the South Florida market, driven by the condominium sector.
Popular Inc., the largest financial institution in Puerto Rico, reported a net income of $177.8 million for the fourth quarter of 2024, up from $155.3 million in the prior quarter. For the full year, net income reached $614.2 million, an increase from $541.3 million in 2023.
“Our financial results for the fourth quarter were solid, with net income of $178 million. We achieved strong loan growth and continued to increase our net interest income and net interest margin,” said Ignacio Álvarez, CEO of Popular Inc.
“We closed the year on a strong footing, continuing our positive earnings trajectory with a 10% increase in adjusted net income,” he said.
The bank reported a $18.3 million increase in fourth-quarter (Q4) net interest income, reaching $590.8 million, with a net interest margin of 3.35%. Loans held in the portfolio rose by $912.7 million from the previous quarter, totaling $37.1 billion, while deposits grew by $1.2 billion to $64.9 billion.
Nonperforming loans declined by $10.6 million, bringing the nonperforming loans-to-loans ratio to 0.95%. The allowance for credit losses stood at 2.01%, underscoring the company’s strong credit management practices.
Álvarez emphasized the company’s focus on modernization and customer experience: “We are making meaningful progress in the modernization of our customer channels and enhancement of our customers’ experience.”
He also noted the acceleration of the company’s transformation efforts, which are beginning to yield “tangible results.”
In 2024, Popular Inc. repurchased 2.26 million shares of common stock for $217.3 million and raised its quarterly dividend from $0.62 to $0.70 per share, demonstrating its strong capital position and dedication to shareholder value.
“Our strong capital and liquidity position allowed us to recommence share buybacks and increase our dividend during 2024,” Álvarez said.
Operating expenses remained stable at $467.6 million in Q4 2024. The company also invested in professional fees and technology to support corporate initiatives and IT projects, aligning with its transformation goals.
While delivering strong results, Popular Inc. continues to monitor macroeconomic challenges such as inflation and higher interest rates.
Condo lending fuels growth in South Florida
During a call with reporters, Álvarez confirmed that Popular Bank, the company’s stateside operation, saw slight growth in commercial loans, particularly for construction projects in New York. He also said that the South Florida real estate market — specifically condominiums — fueled increased activity at its Popular Association Banking division.
That area focuses on providing loans to condo associations, which in South Florida have recently had to comply with stricter building inspection and repair requirements following the Surfside condo collapse, requiring more rigorous building inspections and necessary repairs — often leading to costly assessments.
“That type of reporting has generated good business,” Álvarez said, noting that the division’s loan portfolio grew by $175 million in 2024.
Popular Association Banking provides loans for repair projects, contingency funds and insurance premium financing, offering fixed-rate conditions or credit lines that convert to term loans.
Reporter Michelle Kantrow-Vázquez contributed to this story.
