Outlook
- Company says loan growth and healthy pipeline support full-year growth objectives.
- First BanCorp says it is monitoring consumer market conditions and seasonal delinquency trends.
- Company says strong capital position enables continued strategic investment despite evolving economic environment.
Overview
- Puerto Rico bank holding company reported Q2 net income and EPS up both yr/yr and sequentially.
- Net interest income rose, driven by commercial loan growth in Puerto Rico.
- Company returned 84% of earnings to shareholders via dividends and buybacks in Q2.
Result drivers
- Commercial loan growth - Q2 loan growth was driven primarily by commercial activity in Puerto Rico, with total loan originations up 21% yr/yr.
- Higher net interest income - Net interest income rose due to increased commercial and construction loan activity, redeployment into higher-yielding assets, and refinancing-related fee acceleration.
- Lower net charge-offs - Net charge-offs fell, mainly due to a $4.7 mln reduction in consumer loans and finance leases, especially in the auto loan portfolio.
Key details and analyst coverage
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