Popular reports $3.78 EPS beat but revenue misses by $13.9M
Popular, Inc. reported Q1 net income of $245.7 million and EPS of $3.78, beating profit estimates by $0.47 and rising 38% year-over-year. Revenue fell to $835.8 million, missing forecasts by $13.9 million, while net interest margin expanded to 3.66% and non-performing loans declined to $458.1 million.
1. Earnings Beat and Profit Growth
The bank posted first-quarter EPS of $3.78, surpassing consensus by $0.47, and net income rose to $245.7 million, a 38% year-over-year increase driven by disciplined execution across its lending and fee businesses.
2. Revenue Shortfall and Income Mix
Total revenue came in at $835.8 million, missing $849.7 million estimates by $13.9 million, as lower non-interest income offset strength in net interest income, leading to an overall decline from Q1 2025.
3. Net Interest Income and Margin Expansion
Net interest income climbed to $670.2 million, up $12.6 million sequentially, while net interest margin expanded to 3.66% from 3.61% in the prior quarter, supported by reduced deposit costs.
4. Expense Reduction, Credit Quality and Shareholder Returns
Operating expenses fell to $467.3 million, excluding a $15.3 million prior-quarter FDIC reversal; net charge-offs rose to $60.0 million but non-performing loans decreased to $458.1 million, and the firm returned $204 million through buybacks and dividends.