NASDAQ$BPOP

Popular Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Popular Q4 2020 financial results were announced.

Popular, Inc. reported a net income of $176.3 million for Q4 2020, marking one of their best quarters ever, driven by higher net interest income and controlled expenses. Despite challenges from earthquakes and the pandemic, the company generated $507 million in net income for the year.

  • Net income for Q4 2020 was $176.3 million, up from $168.4 million in Q3 2020.
  • Net interest margin was 3.04% in Q4 2020.
  • Common Equity Tier 1 ratio was 16.26% at the end of 2020.
  • The Corporation recorded a total pre-tax charge of approximately $23.2 million related to the branch realignment.

Headline financials

Total Revenue

$472M

Previous: $467M+0.9%
EPS (adj)

$2.10

Previous: $1.72+22.1%
Net Interest Margin

3.0%

Previous: 3.8%-20.6%
Common Equity Tier 1

16.3%

Previous: 17.8%-8.5%
Common Equity/Share

$71.30

Previous: $62.42+14.2%
Tangible Book Value/Share

$63.07

Previous: $55.10+14.5%
Capital Expenditures

$21M

Previous: $29.7M-29.5%
Free Cash Flow

$166M

Previous: $137M+21.5%
Net Income

$176M

Previous: $167M+5.7%
Cash & Equivalents

$497M

Previous: $3.65B-86.4%
Total Assets

$65.9B

Previous: $52.1B+26.5%

Revenue & EPS history

Popular · Revenue · Quarterly

$472M

Q4 2020+0.9%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

This press release contains forward-looking statements that are subject to risks, uncertainties, estimates, and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements.

Tailwinds

  • Statements are based on management’s current expectations
  • The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates
  • Popular will hold a conference call to discuss its financial results today Thursday, January 28, 2021 at 10:00 a.m. Eastern Time.
  • The call will be open to the public and broadcasted live over the Internet and can be accessed through the Investor Relations section of the Corporation’s website: www.popular.com.
  • An electronic version of this press release can be found at the Corporation’s website: www.popular.com.

Headwinds

  • Statements are not guarantees of future performance
  • Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity
  • Risks and uncertainties include the effect of legal and regulatory proceedings (including as a result of any participation in and execution of government programs related to the COVID-19 pandemic), new accounting standards on the Corporation’s financial condition and results of operations, the scope and duration of the COVID-19 pandemic, actions taken by governmental authorities in response thereto, and the direct and indirect impact of the pandemic on Popular, our customers, service providers and third parties.
  • More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2019, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020, and in our Annual Report on Form 10-K for the year ended December 31, 2020 to be filed with the Securities and Exchange Commission.
  • Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+1.2%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+3.9%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+15.3%

Q4 2012

Best reaction

-12.0%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.6%+1.4%
Q4 2025+6.3%+8.7%+16.0%
Q3 2025-1.2%-2.6%-0.5%
Q2 2025+0.3%+0.3%+3.9%
Q1 2025+5.9%+7.4%+14.6%
Q4 2024-1.3%-0.8%-3.2%
Q3 2024-11.0%-9.7%-1.0%
Q2 2024-0.7%-0.8%-3.4%
Q1 2024+3.6%+1.6%+3.7%
Q4 2023+4.9%+7.2%-0.1%
Q3 2023+8.1%+8.4%+20.4%
Q2 2023+4.6%+7.4%-5.4%
Q1 2023+3.2%+2.7%+3.5%
Q4 2022-3.9%-3.1%+4.3%
Q3 2022-6.9%-6.0%-4.3%
Q2 2022-3.0%-4.1%-0.1%
Q1 2022-0.4%-2.5%+0.9%
Q4 2021-0.8%+3.8%+3.4%
Q3 2021+1.5%+6.0%+3.5%
Q2 2021-0.2%+0.5%+3.5%
Q1 2021+0.4%-0.1%+8.5%
Q4 2020+2.9%+11.0%+21.2%
Q3 2020+7.6%+11.6%+29.4%
Q2 2020+2.6%+0.6%-1.6%
Q1 2020-11.3%-13.3%-5.6%
Q4 2019-2.9%-3.7%-16.3%
Q3 2019-1.6%+0.8%+0.2%
Q2 2019+5.4%+4.7%-6.2%
Q1 2019+1.5%+3.4%-1.0%
Q4 2018+3.4%+6.1%+11.6%
Q3 2018-0.1%+1.2%+7.0%
Q2 2018+6.4%+6.0%+8.4%
Q1 2018+6.3%+8.1%+6.1%
Q4 2017+7.1%+5.2%+9.9%
Q3 2017+1.6%+0.1%+3.7%
Q2 2017+1.9%-0.4%-4.3%
Q1 2017+6.0%+4.0%-5.2%
Q4 2016+2.3%+2.0%+1.0%
Q3 2016-4.2%-6.3%+6.3%
Q2 2016+7.3%+8.3%+21.6%
Q1 2016+0.4%
Q4 2015+8.8%
Q3 2015-4.9%
Q2 2015+5.8%
Q1 2015-2.0%
Q4 2014+0.7%
Q3 2014+4.3%
Q2 2014-1.0%
Q1 2014+5.3%
Q4 2013+2.8%
Q3 2013-2.7%
Q2 2013+3.0%
Q1 2013-0.4%
Q4 2012+15.3%
Q3 2012-0.5%
Q2 2012-12.0%
Q1 2012+0.0%
Q4 2010+2.7%
Q4 2011+2.7%
Q3 2011-8.2%
Q2 2011+4.1%
Q1 2010-1.0%
Q1 2011-1.7%
Q4 2008-2.5%
Q3 2009+1.9%
Q3 2010+1.9%
Q2 2009+3.4%
Q4 2009+3.4%
Q2 2010+3.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro