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Popular Q2 Earnings Beat on Strong NII & Fee Income Growth Y/Y
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Key Takeaways
BPOP's Q2 EPS of $3.09 beat estimates and rose from $2.46 in the year-ago period.
Net interest income rose 11.1% to $631.5M, and non-interest income climbed 1.3% year over year.
Credit loss provisions rose 4.6% year over year, and expenses climbed nearly 5% from Q2 2024.
Popular, Inc. (BPOP - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.09, surpassing the Zacks Consensus Estimate of $2.60. The bottom line compared favorably with $2.46 reported in the year-ago quarter.
The results benefited from a rise in net interest income (NII), fee income, loans, and deposit balances. However, a decline in fee income, elevated operating expenses, and higher provisions are headwinds.
The company’s net income (GAAP basis) came in at $210.4 million, which rose 18.4% year over year.
Popular’s Revenues Rise & Expenses Rise Y/Y
Total quarterly revenues were $800 million, which rose 9% from the year-ago quarter.
Quarterly NII was $631.5 million, up 11.1% year over year. Also, the net interest margin (non-taxable equivalent basis) expanded 27 basis points to 3.49%.
Non-interest income increased 1.3% year over year to $168.5 million. The rise was primarily due to an increase in service charges on deposit accounts and net gain, including impairment, on equity securities, as well as other service fees.
Total operating expenses increased 4.9% year over year to $492.7 million. The rise primarily stemmed from an increase in total personnel costs and total business promotion.
BPOP’s Loans & Deposit Balances Rise Sequentially
As of June 30, 2025, total loans held-in-portfolio increased 2.5% on a sequential basis to $37.4 billion. Total deposits were $67.2 billion, which increased 2.1% from the previous quarter.
Popular’s Credit Quality: Mixed Bag
In the second quarter of 2025, Popular recorded a provision for credit losses of $48.9 million, up 4.6% from the prior-year quarter.
As of June 30, 2025, non-performing assets were $357.7 million, which declined 13.1% year over year. The non-performing assets to total assets ratio was 0.47% compared with 0.57% as of June 30, 2024.
BPOP’s Capital Ratios Decline Y/Y
As of June 30, 2025, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.91% and 15.96%, respectively, compared with 16.48% and 16.54% in the year-ago quarter.
Popular’s Share Repurchase Update
In the reported quarter, the company repurchased 1,136,390 shares of common stock for $112 million.
Our View on BPOP
Popular is well-positioned to benefit from its business transformation efforts, along with significant progress in modernizing customer channels. An increase in loans and deposit balances strengthens its balance sheet. However, a rise in expenses is expected to hurt the bottom-line growth in the near term.
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.
HWC’s benefited from an increase in non-interest income and net interest income (NII). Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds.
Synovus Financial Corp. (SNV - Free Report) reported second-quarter 2025 adjusted EPS of $1.48, which surpassed the Zacks Consensus Estimate of $1.25 per share. This compares favorably with the earnings of $1.16 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenue, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
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Popular Q2 Earnings Beat on Strong NII & Fee Income Growth Y/Y
Key Takeaways
Popular, Inc. (BPOP - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.09, surpassing the Zacks Consensus Estimate of $2.60. The bottom line compared favorably with $2.46 reported in the year-ago quarter.
The results benefited from a rise in net interest income (NII), fee income, loans, and deposit balances. However, a decline in fee income, elevated operating expenses, and higher provisions are headwinds.
The company’s net income (GAAP basis) came in at $210.4 million, which rose 18.4% year over year.
Popular’s Revenues Rise & Expenses Rise Y/Y
Total quarterly revenues were $800 million, which rose 9% from the year-ago quarter.
Quarterly NII was $631.5 million, up 11.1% year over year. Also, the net interest margin (non-taxable equivalent basis) expanded 27 basis points to 3.49%.
Non-interest income increased 1.3% year over year to $168.5 million. The rise was primarily due to an increase in service charges on deposit accounts and net gain, including impairment, on equity securities, as well as other service fees.
Total operating expenses increased 4.9% year over year to $492.7 million. The rise primarily stemmed from an increase in total personnel costs and total business promotion.
BPOP’s Loans & Deposit Balances Rise Sequentially
As of June 30, 2025, total loans held-in-portfolio increased 2.5% on a sequential basis to $37.4 billion. Total deposits were $67.2 billion, which increased 2.1% from the previous quarter.
Popular’s Credit Quality: Mixed Bag
In the second quarter of 2025, Popular recorded a provision for credit losses of $48.9 million, up 4.6% from the prior-year quarter.
As of June 30, 2025, non-performing assets were $357.7 million, which declined 13.1% year over year. The non-performing assets to total assets ratio was 0.47% compared with 0.57% as of June 30, 2024.
BPOP’s Capital Ratios Decline Y/Y
As of June 30, 2025, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.91% and 15.96%, respectively, compared with 16.48% and 16.54% in the year-ago quarter.
Popular’s Share Repurchase Update
In the reported quarter, the company repurchased 1,136,390 shares of common stock for $112 million.
Our View on BPOP
Popular is well-positioned to benefit from its business transformation efforts, along with significant progress in modernizing customer channels. An increase in loans and deposit balances strengthens its balance sheet. However, a rise in expenses is expected to hurt the bottom-line growth in the near term.
Popular, Inc. Price, Consensus and EPS Surprise
Popular, Inc. price-consensus-eps-surprise-chart | Popular, Inc. Quote
Currently, Popular carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of BPOP’s Peers
Hancock Whitney Corp.’s (HWC - Free Report) second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.
HWC’s benefited from an increase in non-interest income and net interest income (NII). Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds.
Synovus Financial Corp. (SNV - Free Report) reported second-quarter 2025 adjusted EPS of $1.48, which surpassed the Zacks Consensus Estimate of $1.25 per share. This compares favorably with the earnings of $1.16 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenue, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.