The following is a summary of the Popular, Inc. (BPOP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Popular, Inc. reported net income of $103 million for the first quarter. Adjusted for items, net income was $135 million, marginally lower than the last quarter.
Loan and deposit balances increased by $54 million and approximately $191 million, respectively, driven by auto and mortgage growth and higher retail demand deposits.
Net interest margin increased to 3.16% mainly due to a higher interest rate environment and increased average loan balances.
Noninterest income stood at $164 million.
Business Progress:
The customer base in Puerto Rico grew substantially with over 2 million unique customers now being served, indicating strong customer retention and acquisition.
Consumer spending remained high with credit and debit card sales growing by 2%.
The bank announced the continuation of its company-wide transformation efforts designed to adapt to rapidly changing customer needs and stimulate community progress.
An encouraging outlook was provided for commercial and construction loan growth due to interest from clients, and stable economic conditions.
A plan to invest more in cloud infrastructure was unveiled to support forthcoming growth.
There are planned stricter credit policies, which might lead to a decline in personal and credit card loans.
-The bank declared that there would be higher retention of mortgage loans in the portfolio to counter high-interest rates.
The company aims to improve operational efficiency with around 35-40 transformation projects underway.
The bank expects a potential reduction in deposits from government customers due to regular payouts and the ending of pandemic relief measures.
More details: Popular IR
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