Popular, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2013; Reports Net Charge-Offs for the Fourth Quarter of 2013
January 23, 2014 at 08:00 am
Share
Popular, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported net interest income of $376,342,000 compared to $351,417,000 a year ago. Income before income tax was $188,193,000 compared to $103,854,000 a year ago. Net income was $163,031,000 compared with $83,940,000 a year ago. Net income applicable to common stock was $162,100,000 or $1.57 per diluted share compared to $83,009,000 or $0.81 per diluted share a year ago. Adjusted non-GAAP net interest income was $376,342,000. Adjusted non-GAAP income before income tax was $95,835,000. Adjusted non-GAAP net income was $74,618,000. Return on average common equity was 14.59% compared to 8.50% a year ago. Return on average assets was 1.79% compared to 0.92% a year ago. Tangible common book value per common share (non-GAAP) was $37.56 against $32.55 a year ago.
For the year, the company reported net interest income of $1,432,580,000 compared to $1,376,633,000 a year ago. Income before income tax was $348,000,000 compared to $218,872,000 a year ago. Net income was $599,327,000 compared with $245,275,000 a year ago. Net income applicable to common stock was $595,604,000 or $5.78 per diluted share compared to $241,552,000 or $2.35 per diluted share a year ago. Return on average common equity was 14.43% compared to 6.37% a year ago. Return on average assets was 1.65% compared to 0.68% a year ago. Non-GAAP tangible common book value per common share was $37.56 against $32.55 a year ago.
Net charge-offs for the fourth quarter amounted to $35,400,000, or 0.66% of average non-covered loans held-in-portfolio (on an annualized basis), compared to $57,900,000, or 1.08% in the third quarter 2013. The decrease of $22,500,000 is mainly driven by higher recoveries of $16,500,000, which include an $8,900,000 recovery associated with an opportunistic sale of a portfolio of previously charged-off credit cards and personal loans in the BPPR segment. Excluding the effect of the previously charged-off consumer loans in BPPR, the net charge-offs ratio was 0.83%, an improvement of 25 basis points compared to the third quarter.
Popular, Inc. (Popular) is a financial holding company. The Company operates in two segments: Banco Popular de Puerto Rico (BPPR), which includes its Puerto Rico business, and Banco Popular North America (BPNA), which includes its the United States mainland business. The Company has operations in Puerto Rico, the United States and the Caribbean. The Company's BPPR segment provides retail, mortgage and commercial banking services through its banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. The Company's BPNA segment consists of Popular North America, Inc. (PNA) functioning as the holding company for its operations in the United States. It also operates PNA's subsidiary, E-LOAN, Inc. The banking operations of BPNA in the United States mainland are based in New York, Florida and New Jersey, conducted under the name of Popular Community Bank.
Popular, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2013; Reports Net Charge-Offs for the Fourth Quarter of 2013