Out Of Recovery, Popular Needs A Healthier Home Market
Stephen Simpson, CFA
Stephen Simpson, CFA
It's Getting Harder To Pass On Popular
Popular's Credit Is Getting Better Faster Than Its Market's
Stephen Simpson, CFA
Stephen Simpson, CFA
Sep. 18, 2015, 11:12 AM
- Popular (NASDAQ:BPOP) declares $0.15/share quarterly dividend.
- Forward yield 2.04%
- Payable Oct. 7; for shareholders of record Sept. 29; ex-div Sept. 25.
Sep. 2, 2015, 11:29 AM
- The Puerto Rico Electric Power Authority and a group of creditors earlier reached a deal to keep which will keep the debt service payments coming, though the haircut on principal looks to be 15%.
- OFG Bancorp (OFG +22.2%), First Bancorp (FBP +9.8%), Popular (BPOP +5.9%)
- MBIA (MBI +13.6%), Assured Guaranty (AGO +4.5%), Ambac (AMBC +3.1%)
Sep. 1, 2015, 12:34 PM
- Puerto Rico's OFG Bancorp (OFG -14.5%) fell as low as about $6.70 in last Monday's panicky action, but had bounced nearly 30% from that level after yesterday's 19% gain.
- It's back to the downside today, and the stock is lower by 15% to $7.34.
- Alone among the notable news items (other than Puerto Rico's continuing debt troubles) since last Monday was the purchase of 7K shares by board member Josen Rossi at prices less than $7 per share.
- Popular (BPOP -2.5%), First Bancorp (FBP -3.7%)
Jul. 27, 2015, 7:20 AM
Jul. 24, 2015, 9:08 AM
- Q2 adjusted net income of $90.1M compares to $90.3M in Q1, but net income jumps to $597.5M as the company determines it is more likely than not it will realize at least part of the $1.2B DTA at its U.S. operations.
- Back to operations, non-performing loans fell $89M during quarter. NPL to loans ratio of 2.6% falls 60 basis points. Net charge-offs of 0.89% of average loans in portfolio is up 17 basis points.
- Allowance for loan losses of $512.7M vs. $516.2M in Q1. Ratio to total loans of 2.29% vs. 2.46%. Allowance for loan losses to NPLs ratio of 89.02% vs. 77.63%.
- Net interest margin of 4.54% down three basis points.
- CET1 ratio of 15.61%. Tangible book value per share of $41.75.
- Previously: Popular EPS of $5.79 (July 24)
- BPOP +5.8% premarket
Jul. 24, 2015, 8:26 AM
- Popular (NASDAQ:BPOP): Q2 EPS of $5.79 may not be comparable to consensus of $0.79.
- Net interest income of $362.55M.
- Shares +8.4% PM.
Jul. 23, 2015, 5:30 PM
Jul. 1, 2015, 10:10 AM
- It was earlier reported that Puerto Rico's power authority was planning on making its $416M debt payments due today, and the utility says the payments have indeed been made.
- Popular (BPOP +5.2%), First Bancorp (FBP +2.9%), OFG Bancorp (OFG +2.5%)
- Previously: PREPA reportedly reaches deal to cover debt payment (July 1)
Jun. 29, 2015, 10:15 AM
- Popular (BPOP -7.5%), First Bancorp (FBP -8.1%), and OFG Bancorp (OFG -5.9%) following a weekend interview in which Puerto Rico Governor Alejandro Garcia Padilla said the Commonwealth cannot pay its debts. He's expected this week to lay out a plan to defer payments while a deal is worked out with creditors.
- Guggenheim pulls its Buy ratings on Popular and First Bancorp.
- Previously: Bond insurers tumble as Puerto Rico heads to default (June 29)
- Previously: Longtime bull throws in the towel on MBIA, Assured Guaranty (June 29)
Jun. 15, 2015, 3:23 PM
- Popular (BPOP +0.9%) would have a CET1 ratio of 11.4% under the Fed's severely adverse scenario, writes BTIG's Mark Palmer - that's well above the minimum of 6.5%. Palmer adds that all of the bank's credit metrics were 150-300 bps better than those lenders covered under the Fed's CCAR.
- While the test results said nothing about a capital return, Palmer believes the bank is now in a strong position to receive FRBNY approval for just that. Palmer suspects that the request submitted by the bank is a modest one relative to the roughly $2B in excess capital it has.
- He maintains his Buy rating and $41 price target (1.0x 2015E TBV).
Apr. 27, 2015, 10:55 AM
- The level of EPS is of less importance than a couple of other factors, says the bullish team at BTIG. First, the bank's credit metrics continue to improve - even as the recession in Puerto Rico nears a decade. Net charge-offs fell 32 basis points to 0.72% of average loans, while the loan loss allowance fell 22 bps to 2.46%.
- While NPLs did increase, this was mostly due to loans acquired from Doral Bank after its failure. "We believe the increase in NPLs was a small price for Popular (BPOP -3.5%) to pay for the $2.2B in deposits and $1.7B in commercial and residential loans it acquired in the deal, as the loans will help the company to offset the runoff of its loan portfolio, which is one of its most significant challenges."
- Then there's capital, and BPOP has about $2B more than it needs based on its CET1 ratio of 15.8%. The bank in June expects to announce the Fed's response to its capital return plans - it could mark the first dividends/buybacks since the financial crisis.
- BTIG reiterates its Buy rating and $41 price target, which is 1.0x estimated TBV.
- Previously: Popular misses by $0.03, misses on revenue (April 27)
Apr. 27, 2015, 8:50 AM
- Popular (NASDAQ:BPOP): Q1 EPS of $0.71 misses by $0.03.
- Revenue of $343.19M (-0.7% Y/Y) misses by $38.51M.
Apr. 26, 2015, 5:30 PM
Mar. 23, 2015, 10:15 AM
- The Moody's report will surely add to the factors blocking the closing of a $2.9B bond deal which could provide a financial lifeline to the island. Also among those factors, reports Reuters, are three prominent lawmakers who plan to try and amend Puerto Rico's constitution to allow for debt restructuring.
- An amendment would need two-thirds majority in the legislature, and then a majority from the electorate.
- In other news, Goldman Sachs upgrades Popular (BPOP -0.1%) to Neutral from Sell.
Mar. 2, 2015, 9:44 AM
- Popular (BPOP +1.7%) and First BanCorp (FBP +1.1%) are "major winners" from the closing of Doral Financial, says Sterne Agee's Brett Rabatin, and weekend deals to take over Doral assets could add $1 per share to BPOP's tangible book value.
- The shutdown of Doral, says Rabatin, should give investors confidence steps are being taken to improve the banking climate on the island. The space, he says, is highly value-oriented and underappreciated. BPOP, FBP, and OFG Bancorp (NYSE:OFG) are all buy-rated, with BPOP Rabatin's island favorite.
- BPOP's slide deck on the Doral acquisition
- Previously: Doral Financial taken over by FDIC (Feb. 27)
Feb. 27, 2015, 3:17 PM
Popular, Inc. engages in the provision of financial banking services. It operates through the Banco Popular de Puerto Rico and Banco Popular North America segments. Its products and services include savings and checking accounts, mortgage and consumer loans, credit cards, cash management,... More
Industry: Foreign Regional Banks
Country: United States
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