Buoyed by a reduction in the island’s corporate tax rate and the sale of its equity stake in Consorcio de Tarjetas Dominicanas, S.A., Popular Inc. Monday reported net income of $10.1 million for the first quarter ended March 31, an improvement over the net loss of $85.1 million during the same period the year before.
- The signing in January of the new Internal Revenue Code represented a reduction in bank’s tax expense of $103.3 million, as a result of a drop in the rate to 30 percent from 39 percent.
- Popular Inc. added $16.7 million to its first quarter earnings column through the sale of its equity investment in the processing business of Consorcio de Tarjetas Dominicanas, S.A. The transaction was required under the terms of the sale of the majority interest in Evertec.
- The company also made money from the 49 percent equity stake it holds in Evertec, garnering about $13.8 million during the first quarter, an amount it writes up as operating income.
- The completion of the sale of $457 million in U.S. non-conventional residential mortgage loans by Banco Popular North America that were reclassified to loans held-for-sale during the fourth quarter of 2010. The sale had a positive impact of about $16.4 million during the first quarter of 2011.
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