Popular (PP4A) Q3 2026 Earnings Report
DE:PP4A Q3 2026 EPS Results
- Actual EPS
- EUR 3.76
- Consensus EPS
- EUR 3.52
- Beat/Miss
- Beat by +EUR 0.23
- One Year Ago EPS
- EUR 2.80
DE:PP4A Q3 2026 Revenue Results
- Actual Revenue
- EUR 1.06B
- Expected Revenue
- EUR 807.11M
- Beat/Miss
- Beat by +EUR 251.42M
- YoY Revenue Growth
- +3.94%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
DE:PP4A Upcoming Earnings
Popular's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:PP4A Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive, with strong year-over-year earnings growth, solid core credit performance, stable Puerto Rico economic conditions, recurring efficiency gains, continued capital returns, and ongoing net interest income growth. These positives were partly offset by sequentially lower earnings and ROTCE, deposit declines, moderating loan growth, higher expenses, lower NIM, increased nonperforming loans, and higher full-year charge-off guidance.
Company Guidance
Management expects full year loan growth for 2026 of approximately 2%, Puerto Rico public deposits to remain between $20 billion and $22 billion for the rest of the year, net interest income to increase by approximately 8.5%, fourth quarter non interest income of $170 million, full year operational expenses to increase by approximately 2% including the maximum profit sharing contribution, and a full-year effective tax rate of 14%; net charge-offs are expected to be in the range of 80-90 basis points for the full year and, looking ahead to 2027, in the range of roughly 60 to 75 basis points, fourth quarter common-stock repurchases are expected to be between $150 million and $200 million, quarterly repurchases are expected to remain within a similar range during 2027, and the company continues to target a 14% to 17% annual RoTCE.
- Strong Quarterly Earnings GrowthPopular reported third-quarter net income of $266 million and earnings per share of $4.21. Compared with the third quarter of 2025, earnings per share increased by 34%.
- Solid Return on Tangible Common EquityROTCE was 15.8%, compared with 17% in the second quarter and 13.1% in the third quarter of 2025. Management continues to target an annual ROTCE of 14% to 17%.
- Net Interest Income GrowthNet interest income increased by $6 million to $699 million, driven by higher income from investment securities and commercial loans. Management expects full-year 2026 net interest income to increase by approximately 8.5% and expects continued net interest income growth in 2027.
- Loan Portfolio ExpansionEnding loans increased by $293 million, driven by commercial and mortgage lending. Management said Puerto Rico loan demand remains good and expects the investment portfolio's repricing dynamics and current loan demand and pricing to support net interest income growth in 2027.
- Investment Portfolio Reinvestment GainsPopular invested approximately $1.4 billion during the quarter in two- and three-year U.S. Treasury notes at an average duration of 2.7 years and an average yield of approximately 4.3%. This represented a pickup of approximately 206 basis points versus the notes that matured during the quarter. Management expects continued yield improvement as approximately $1.5 billion to $1.6 billion of investments reprice quarterly, including $600 million to $700 million of legacy investments yielding 1.25%.
- Broad-Based Noninterest Income GrowthAlthough quarterly noninterest income decreased by $5 million to $176 million, it remained above guidance. Compared with the third quarter of 2025, noninterest income increased by 3%, including debit card fee growth of 10%, credit card fee growth of 8%, and a 60% increase in brokerage and asset management fees. Management expects fourth-quarter noninterest income of $170 million.
- Operational Efficiency InitiativesManagement identified and implemented $50 million of recurring efficiencies, which it expects to benefit next year. Full-year operating expense growth is expected to be approximately 2%, including the maximum profit-sharing contribution.
- Capital Returned to ShareholdersPopular returned $236 million to shareholders during the quarter, including $179 million through common stock repurchases. The quarterly common stock dividend was increased by 20% to $0.90 per share, and fourth-quarter repurchases are expected to be between $150 million and $200 million. Management expects quarterly repurchases to remain within a similar range during 2027, based on current conditions.
- Stable Core Credit PerformanceManagement said overall underlying credit metrics remained stable and reserve coverage remained strong. Consumer performance remained favorable, with net charge-offs at historically low levels despite a seasonal increase in other losses. Mortgage performance also remained strong, with historically low delinquencies and net recoveries.
- Improving Net Charge-Offs and Nonperforming AssetsNet charge-offs declined to $73 million, or 73 basis points annualized, from $104 million, or 1.05%, in the prior quarter. Total nonperforming assets decreased by $37 million, reflecting the sale of an $84 million nonperforming loan held for sale.
- Stable Puerto Rico EconomyManagement described Puerto Rico's economic environment as stable, supported by healthy employment, tourism, infrastructure investment, and private-sector development. Total employment reached approximately 1.26 million in September, its highest level of the year, while employment increased by 18,000 jobs during the quarter.
- Healthy Consumer Spending and TourismPopular customers' debit and credit card sales volume increased by approximately 7% year over year. Through August, hotel occupancy improved by more than 4 percentage points to approximately 79%, and cruise passenger arrivals increased by 27% through September.
- Infrastructure and Private-Sector ActivityConstruction activity continues to be supported by public and private investment, including federal disaster-recovery funds and a growing pipeline of private-sector projects. Management also cited demand in the energy, warehousing, and logistics sectors. Slightly over $43 billion of allocated federal funds remained, and year-to-date FEMA-related spending through the end of the third quarter was almost 40% higher than at the same time last year.
- Deposit Franchise and Customer Relationship InitiativesPopular launched a simpler retail deposit product designed to encourage direct deposits and eliminate banking fees, as well as a college-student account to establish relationships earlier in customers' financial journeys. Its health care professional program has generated more than $90 million in new loans this year and supports deposit retention.
- Commercial Banking Platform CompletionPopular completed the final wave of customer onboarding to its new cash management platform, concluding a multiyear effort. The platform provides greater flexibility, mobile access, and enhanced money-movement capabilities for commercial clients.
- Positive Long-Term Puerto Rico OpportunityManagement said customers remain optimistic about Puerto Rico's long-term opportunities. It cited approximately $4 billion of announced manufacturing investment and said population growth, attracting professionals and members of the diaspora, and additional investment could support broader economic growth.
- Improving U.S. Business ProfitabilityManagement said the U.S. team has improved profitability in both this year and last year and continues working to realize value from U.S. net operating losses. The U.S. deferred tax asset was described as having a net amount of approximately $250 million after the stated allowance, with the majority expiring between 2028 and 2031.
DE:PP4A Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 3.41- | 3.02 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 3.523.76 | 2.8 | 34.08% (+0.95) | |
| Jul 23, 2026 | 2026 (Q2) | 3.323.88 | 2.76 | 40.78% (+1.12) | |
| Apr 23, 2026 | 2026 (Q1) | 2.953.24 | 2.28 | 41.80% (+0.95) | |
| Jan 27, 2026 | 2025 (Q4) | 2.713.02 | 2.24 | 34.74% (+0.78) | |
| Sep 30, 2025 | 2025 (Q3) | 2.632.80 | 1.93 | 45.37% (+0.87) | |
| Jul 23, 2025 | 2025 (Q2) | 2.272.76 | 2.2 | 25.61% (+0.56) | |
| Apr 23, 2025 | 2025 (Q1) | 1.932.28 | 1.67 | 36.61% (+0.61) | |
| Jan 28, 2025 | 2024 (Q4) | 1.832.24 | 1.73 | 29.51% (+0.51) | |
| Oct 23, 2024 | 2024 (Q3) | 2.051.93 | 1.9 | 1.50% (+0.03) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed