Popular (PP4A) AI Stock Analysis

Popular

(Frankfurt:PP4A)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong profitability and cash generationPopular combines strong current profitability with substantial cash generation, giving it internal capacity to support lending, technology investment, dividends, and repurchases. Improving returns on equity and manageable leverage also indicate a resilient balance sheet that can support execution over the next several quarters.

Negative Factors

Deposit contraction and slower loan growthLower deposits reduce the funding base available for asset growth, while slower loan expansion limits the ability to compound interest income. The combination suggests greater competition for customer balances and a more selective lending environment, potentially constraining revenue growth over coming quarters.

Popular (PP4A) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 9.84B
Dividend Yield: 1.91%
Average Volume (3M): 238
Price to Earnings (P/E): 9.9
Beta (1Y): 0.58
Revenue Growth: -1.17%
EPS Growth: 34.14%
Country: Germany
Employees: 9,112
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Popular Business Overview & Revenue Model

Company Description

Popular, Inc., along with its subsidiaries, offers a broad spectrum of financial products and services encompassing retail, mortgage, and commercial banking. These operations extend across Puerto Rico, the United States, and the British Virgin Island...

Popular Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:-1.41%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

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.

Positive Updates

Strong Quarterly Earnings Growth

Popular 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%.

Negative Updates

Quarterly Earnings and ROTCE Declined Sequentially

Earnings per share decreased by $0.14 from the second quarter, while ROTCE declined from 17% in the second quarter to 15.8%.

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.

Popular Risk Analysis

Popular disclosed 64 risk factors in its most recent earnings report. Popular reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.In addition to the other information set forth in this report, you should carefully consider the risk factors discussed under “Part I - Item 1A - Risk Factors" in our 2025 Form 10-K. These factors could materially adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this report. Also refer to the discussion in “Part I -Q2, 2026

Popular Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:PP4A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	81Outperform	$2.11B	9.63	16.38%	2.70%	2.09%	19.22%
FBP	75Outperform	$3.95B	10.91	18.91%	2.98%	3.06%	15.68%
FHN	70Outperform	$11.02B	16.50	7.91%	2.84%	-7.92%	-15.84%
VLY	69Neutral	$7.79B	10.96	9.37%	3.11%	3.40%	44.33%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMTB	65Neutral	$1.17B	17.55	8.03%	1.20%	-8.09%	6.96%

* Financial Sector Average

Performance Comparison

DE:PP4A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:PP4A	Popular Inc	140.00	46.15	49.18%
FBP	First Bancorp (FBP)	26.18	7.15	37.56%
FHN	First Horizon National	23.27	2.40	11.48%
OFG	OFG Bancorp	50.01	12.03	31.66%
VLY	Valley National	14.14	3.57	33.74%
AMTB	Amerant Bancorp Inc. Class A	29.94	13.10	77.74%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Popular AI Stock Analysis