Popular Q3 Earnings Beat on Strong NII & Fee Income Growth Y/Y

Popular, Inc. BPOP reported third-quarter 2025 earnings per share (EPS) of $3.14, which surpassed the Zacks Consensus Estimate of $3.04. The bottom line compared favorably with $2.16 reported in the year-ago quarter.The results benefited from a rise in net interest income (NII), fee income and loan balances. However, lower deposit balance, elevated operating expenses and higher provisions are headwinds.The company’s net income (GAAP basis) came in at $211.3 million, which rose 36% year over year.Popular’s Revenues & Expenses Rise Y/YTotal quarterly revenues were $817.7 million, which rose 11% from the year-ago quarter.Quarterly NII was $646.5 million, up 12.9% year over year. Also, the net interest margin (non-taxable equivalent basis) expanded 27 basis points to 3.51%.Non-interest income increased 4.3% year over year to $171.2 million. The rise was primarily due to an increase in service charges on deposit accounts, other service fees, mortgage banking activities and net gain, including impairment, on equity securities, as well as other operating income.Total operating expenses increased 5.9% year over year to $495.3 million. The rise primarily stemmed from an increase in total personnel costs, processing and transactional services and total business promotion.BPOP’s Loans Balance Rise & Deposit Balance Fall SequentiallyAs of Sept. 30, 2025, total loans held-in-portfolio increased 1.3% on a sequential basis to $37.9 billion. Total deposits were $66.5 billion, which decreased 1% from the previous quarter.Popular’s Credit Quality: Mixed BagIn the third quarter of 2025, Popular recorded a provision for credit losses of $74.5 million, up 2.4% from the prior-year quarter.As of Sept. 30, 2025, non-performing assets were $545.1 million, which increased 28.4% year over year. The non-performing assets to total assets ratio was 0.73% compared with 0.60% as of Sept. 30, 2024.BPOP’s Capital Ratios Decline Y/YAs of Sept. 30, 2025, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.79% and 15.84%, respectively, compared with 16.42% and 16.48% in the year-ago quarter.Popular’s Share Repurchase UpdateIn the reported quarter, the company repurchased 1,000,862 shares of common stock for $119.4 million.Our View on BPOPPopular is well-positioned to benefit from its business transformation initiatives and continued progress in modernizing customer channels. Growth in loan balances supports its balance sheet strength. However, the decline in deposit balances, along with elevated expenses, is expected to weigh on bottom-line growth in the near term.Popular, Inc. Price, Consensus and EPS Surprise Popular, Inc. price-consensus-eps-surprise-chart | Popular, Inc. QuoteCurrently, Popular carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of BPOP’s PeersHancock Whitney Corp.’s HWC third-quarter 2025 earnings per share of $1.49 exceeded the Zacks Consensus Estimate of $1.41. Further, the bottom line rose 12% from the prior-year quarter.HWC’s results benefited from an increase in non-interest income and NII alongside lower provisions. Also, higher loans were another positive. However, higher adjusted expenses alongside lower deposit balances were headwinds.Synovus Financial Corp. SNV reported third-quarter 2025 adjusted earnings per share of $1.46, which surpassed the Zacks Consensus Estimate of $1.36 per share. This compares favorably with earnings of $1.23 per share a year ago.SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synovus Financial Corp. (SNV): Free Stock Analysis Report Popular, Inc. (BPOP): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks