Popular Delivers Strong Q2 2026 Results with 15% EPS Growth, Announces Leadership Transition
The company reported net income of $278 million, an earnings per share of $4.35, representing a 15% increase from the first quarter and a 41% increase compared to the same period last year.
President and CEO Javier Ferrer highlighted the strong performance in his opening remarks on the Q2 conference call, attributing the results to higher net interest income, solid fee generation, continued balance sheet growth, and strong capital generation. The company's return on tangible common equity (ROTCE) improved to 17% during the quarter.
"We are very pleased with this result and remain focused on delivering sustainable through-the-cycle shareholder returns," Ferrer said. "Loans held in portfolio increased by $460 million during the quarter, driven by growth in commercial, construction, and mortgage lending."
During the call, it was announced that Javier Ferrer would be retiring at the end of August after nearly 12 years with the company. CFO Jorge García will take over as President and CEO, while Lidio Soriano becomes the new Chief Risk Officer. The appointments reflect a thoughtful succession process, showcasing the depth and strength of the company's leaders.
"It's not about one person, it's about the whole institution and the quality of its people," Ferrer said in his farewell remarks. "I extend my most sincere congratulations to Jorge, Lidio, and Luis Sousa as they take on these new roles."
The company continued to return capital to shareholders through stock repurchases and dividend payments. In fact, a planned 20% increase in the quarterly dividend was announced, bringing it to $0.90 per share, along with a new $1 billion share repurchase authorization.
Business activity in Puerto Rico remained stable during the second quarter, with a healthy labor market, strong tourism activity, ongoing infrastructure investment, and consumer spending supporting overall economic conditions.
The company's business environment in Puerto Rico is expected to continue being supported by these factors. "While some indicators have somewhat moderated from the strong levels experienced over the last several years, overall economic conditions continue to be supported by a healthy labor market, strong tourism activity, ongoing infrastructure investment, and strong consumer spending," Ferrer said.
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