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Popular’s Interest and Non-Interest Income Fell in 3Q15

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Popular’s price movement

Popular (BPOP) has a market cap of $3.1 billion. Year-to-date (or YTD), Popular’s price movement is a mixture of ups and downs. After its 3Q15 earnings report, Popular stock fell 3.6% and closed at $30.26 per share on October 23, 2015. It had a fall in net income of 85.7% and a rise in non-performing assets of 8.9% in 3Q15 on a quarterly basis. The price movement on weekly, monthly, and YTD bases were -3.4%, 1.5%, and -10.7%, respectively.

Technically, Popular has broken all major support and is trading below all moving day averages. Currently, its 20-day, 50-day, and 200-day moving averages are -3.1%, -0.09%, and -5.4%, respectively.

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The First Trust NASDAQ ABA Community Bank ETF (QABA) invests 1.9% of its holdings in Popular. QABA tracks an index of NASDAQ-listed banks and thrifts, excluding the 50 largest. The YTD price movement for QABA is 7.5% as of October 22, 2015. The SPDR S&P Regional Banking ETF (KRE) invests 1.5% of its holdings in Popular.

Below are Popular’s (BPOP) competitors and their market caps:

  • Bank of Nova Scotia (BNS) — $57.0 billion
  • BB&T (BBT) — $29.4 billion
  • M&T Bank (MTB) — $16.3 billion
  • Bank of the Ozarks (OZRK) — $4.4 billion

Performance of Popular in 3Q15

Popular reported interest income of $401.3 million in 3Q15, down 2.2% compared to $410.3 million in 2Q15. Interest income from loans fell 2.6%. Interest income from money market investments, investment securities, and trading account securities rose 8.6%, 1.2%, and 4.1%, respectively, in 3Q15.

Popular’s non-interest income decreased to $131.1 million in 3Q15, down 6.9% on a quarterly basis. Net income and EPS (earnings per share) fell to $85.6 million and $0.82, respectively, in 3Q15 compared to $597.5 million and $5.79, respectively, in 2Q15.

Net income increased 36.9% in 3Q15 compared to 3Q14. Cash and money due from banks and money market investments fell 42.5% and 26.0%, respectively, in 3Q15 on a quarterly basis. Total loans and total non-performing assets rose 0.03% and 8.9%, respectively, in 3Q15 on a quarterly basis.

Popular announced the following monthly cash dividends on its outstanding shares of noncumulative monthly income preferred stock:

  • a monthly cash dividend of $0.13 per share of 6.4% Noncumulative Monthly Preferred Stock, 2003 Series A
  • a monthly cash dividend of $0.17 per share of 8.3% Noncumulative Monthly Income Preferred Stock, Series B

On September 18, 2015, Popular declared a quarterly cash dividend of $0.15 per share on its outstanding common stock.

About Popular

Popular is a large financial corporation that provides services for online banking, mobile banking, deposit accounts, mortgages, lines of credit, loans, insurance, investments, private banking, and financial planning.

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