Popular Inc (BPOP) Reports Q3 2023 Earnings: Net Income of $136.6 Million
Popular Inc (NASDAQ:BPOP) reported a net income of $136.6 million for Q3 2023, including a goodwill impairment charge of $16.4 million.
The company's loan portfolio grew by $1 billion, contributing to an increase in net interest income despite higher deposit costs.
Non-interest income amounted to $159.5 million for the quarter ended September 30, 2023, a slight decrease from the previous quarter.
Operating expenses for Q3 2023 totaled $466.0 million, an increase of $5.7 million compared to Q2 2023.
Popular Inc (NASDAQ:BPOP) released its Q3 2023 earnings report on October 26, 2023. The company reported a net income of $136.6 million, including a goodwill impairment charge of $16.4 million. Despite this charge, the company's net income remained strong, driven by higher revenues and lower operating expenses.
Financial Highlights
According to the report, Popular Inc (NASDAQ:BPOP) grew its loan portfolio by $1 billion, which contributed to an increase in net interest income despite higher deposit costs. Approximately $600 million of the increase took place in Puerto Rico, reflecting strong economic activity. The company also reported that it reached more than 2 million unique customers in Puerto Rico.
Non-interest income amounted to $159.5 million for the quarter ended September 30, 2023, a slight decrease from $160.5 million for the quarter ended June 30, 2023. The company's operating expenses for Q3 2023 totaled $466.0 million, an increase of $5.7 million when compared to the second quarter of 2023.
Commentary from the CEO
Ignacio Alvarez, President and Chief Executive Officer, commented on the company's performance. He stated,
We are pleased to report another strong quarter. Net income totaled $137 million, which includes a $16 million after-tax goodwill impairment in our U.S. based equipment leasing subsidiary. Excluding this impact, net income would have been $153 million, $2 million higher than the previous quarter."
Looking Forward
The company is optimistic about its future, with Alvarez stating,
We are proud of our history, which has made us a strong organization with deep-rooted values, and are excited about the opportunities that lie ahead."
Financial Tables
The earnings report includes detailed financial tables, providing a comprehensive view of the company's performance. These tables cover areas such as net interest income, provision for credit losses, operating expenses, income before income tax, and net income per common share, among others.
Analysis and Conclusion
Despite the goodwill impairment charge, Popular Inc (NASDAQ:BPOP) has reported a strong quarter with a net income of $136.6 million. The company's growth in its loan portfolio and increase in net interest income are positive indicators of its financial health. However, the slight decrease in non-interest income and increase in operating expenses are areas that the company may need to address moving forward.
Explore the complete 8-K earnings release (here) from Popular Inc for further details.
This article first appeared on GuruFocus.
