Popular (NASDAQ:BPOP) Announces Quarterly Earnings Results

Popular (NASDAQ:BPOP) announced its quarterly earnings results on Thursday. The bank reported $4.35 EPS for the quarter, beating the consensus estimate of $3.72 by $0.63, FiscalAI reports. Popular had a net margin of 21.37% and a return on equity of 15.47%. The firm had revenue of $846.92 million during the quarter, compared to the consensus estimate of $878.41 million. During the same period last year, the firm earned $3.09 EPS.

Here are the key takeaways from Popular’s conference call:

• Popular posted very strong second-quarter results, with net income of $278 million and EPS of $4.35, up 15% sequentially and 41% year over year. ROTCE improved to 17%, and management raised its long-term ROTCE objective to 14%-17%.
• Capital return is being stepped up meaningfully: the company increased its quarterly dividend 20% to $0.90 per share and authorized a new $1 billion share repurchase program. Management also said it expects to repurchase $300 million-$400 million of stock in the remainder of the year.
• Core operating trends remained solid, with loan balances up $460 million, deposits up $2.6 billion, and net interest income rising to $693 million. The company now expects full-year net interest income growth of 8%-9% and said margin should stay generally stable.
• Credit quality was stable overall, but the quarter included some discrete commercial issues. Popular resolved its largest non-performing commercial exposure, while two other commercial relationships went on non-accrual; management said these were borrower-specific and not indicative of broader portfolio deterioration.
• Leadership transition was front and center, as Javier Ferrer announced his retirement at the end of August and Jorge García will become CEO, with Lidio Soriano moving into the CFO role and Luis Sousa becoming CRO. Management emphasized a planned succession process and continuity in strategy.

Popular Stock Up 0.5%

NASDAQ:BPOP opened at $171.73 on Friday. The company has a fifty day moving average of $160.90 and a 200 day moving average of $146.05. Popular has a 52 week low of $108.74 and a 52 week high of $175.12. The firm has a market capitalization of $11.08 billion, a P/E ratio of 11.60, a P/E/G ratio of 0.92 and a beta of 0.61.

Popular Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Friday, May 29th were issued a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Friday, May 29th. Popular’s dividend payout ratio is currently 20.27%.

Insiders Place Their Bets

In other Popular news, Director Alejandro M. Sanchez sold 300 shares of the business’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $150.36, for a total value of $45,108.00. Following the transaction, the director owned 3,960 shares in the company, valued at approximately $595,425.60. The trade was a 7.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Maria Cristin Gonzalez-Noguera sold 6,200 shares of the stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $148.51, for a total transaction of $920,762.00. Following the sale, the executive vice president owned 11,255 shares of the company’s stock, valued at approximately $1,671,480.05. This represents a 35.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 29,500 shares of company stock valued at $4,415,870 in the last quarter. Insiders own 2.13% of the company’s stock.

Institutional Investors Weigh In On Popular

Large investors have recently made changes to their positions in the business. Royal Bank of Canada lifted its position in Popular by 23.1% during the first quarter. Royal Bank of Canada now owns 94,352 shares of the bank’s stock valued at $8,715,000 after buying an additional 17,729 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in shares of Popular in the 1st quarter worth about $257,000. Goldman Sachs Group Inc. increased its stake in shares of Popular by 60.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 223,530 shares of the bank’s stock worth $20,647,000 after acquiring an additional 84,327 shares in the last quarter. Focus Partners Wealth purchased a new position in Popular during the 1st quarter valued at about $207,000. Finally, Sivia Capital Partners LLC purchased a new position in Popular during the 2nd quarter valued at about $252,000. 87.27% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently commented on BPOP. UBS Group boosted their price objective on Popular from $160.00 to $170.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Zacks Research cut shares of Popular from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 6th. Benchmark lifted their price objective on shares of Popular from $201.00 to $214.00 and gave the stock a “buy” rating in a report on Friday. Weiss Ratings raised Popular from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Monday, May 4th. Finally, Royal Bank Of Canada raised their price target on Popular from $163.00 to $181.00 and gave the company an “outperform” rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Popular has a consensus rating of “Buy” and a consensus price target of $184.42.

Key Stories Impacting Popular

Here are the key news stories impacting Popular this week:

• Positive Sentiment: Popular beat Q2 EPS estimates, with stronger net interest income, fee income, and loan/deposit growth, while lower expenses supported profitability; management also planned a 20% dividend increase. Popular Q2 Earnings Beat on NII & Fee Income, Dividend Hike Planned
• Positive Sentiment: Several brokerages raised price targets after the earnings release, including Benchmark to $214, KBW to $207, and Truist to $197, signaling upgraded confidence in the bank’s outlook.
• Positive Sentiment: Other post-earnings coverage highlighted robust operating momentum and strong financial performance, reinforcing the view that Popular’s core banking trends remain healthy. Popular Inc (BPOP) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: One article noted the stock looks reasonable on earnings but stretched on returns, suggesting the valuation is not cheap despite the improved fundamentals. Popular (BPOP) Stock Looks Reasonable On Earnings But Stretched On Returns
• Neutral Sentiment: The company also announced capital actions and a leadership transition, including CEO retirement plans, which investors may view as a longer-term governance update rather than an immediate earnings driver. Popular unveils capital plan and leadership transition

About Popular

Popular, Inc, headquartered in San Juan, Puerto Rico, is a financial holding company and a leading provider of banking services in the United States mainland and Puerto Rico. Through its primary subsidiaries—Banco Popular de Puerto Rico and Popular Bank—the company delivers comprehensive commercial and consumer banking solutions. It offers deposit products, lending facilities, cash management services and payment-processing solutions designed for individuals, small businesses and large corporations.

The company’s product suite encompasses checking and savings accounts, certificates of deposit, residential and commercial mortgage loans, business lines of credit and credit cards.