Popular, Inc. Reports Strong Q1 2026 Results: Net Income Jumps 38%, Earnings Per Share Rise 48%
Popular, Inc., a leading financial institution in Puerto Rico, today reported strong first-quarter (Q1) 2026 results, with net income increasing by 38% to $246 million and earnings per share rising 48% to $3.78. The company's President and CEO, Javier Ferrer, attributed the improvement to higher net interest income, margin expansion, and lower operating expenses.
"We are very pleased with these returns and remain focused on reaching our 14% through-the-cycle objective," said Ferrer during the Q1 2026 conference call. "Our ROTCE was 15.5%, up from 14.4% in the fourth quarter of 2025 and 11.4% a year ago."
Popular, Inc.'s financial performance for Q1 2026 also included a significant increase in quarterly net charge-offs primarily due to a single previously identified commercial relationship. However, overall credit trends remain favorable, with lower non-performing loans (NPLs) and improved NPL ratios.
The company's commitment to returning capital to its shareholders was evident through the repurchase of $155 million in common stock and payment of a quarterly common stock dividend of $0.75 per share. This move demonstrates Popular, Inc.'s dedication to delivering value to its customers while also rewarding its shareholders.
Puerto Rico's business environment remained positive during Q1 2026, supported by steady trends in employment and consumer activity. Manufacturing, construction, and tourism led the way, with the labor market remaining healthy and unemployment rate stable near historic lows at 5.6%. Three sectors have outperformed the broader labor market: construction, transportation and warehousing, and leisure and hospitality.
Consumer spending remains healthy, with combined credit and debit card purchases by Banco Popular customers increasing by approximately 5% compared to Q1 2025. Mortgage balances at Banco Popular increased modestly during the quarter, reflecting continued demand for homes in Puerto Rico. Momentum in the construction sector continues to be solid, driven by public and private investment.
Popular, Inc.'s President and CEO highlighted the importance of these trends persisting given the backlog of obligated federal disaster recovery funds. Private investment, real estate, and tourism development projects are expected to continue supporting economic growth on the island.
