Popular, Inc. is a Puerto Rico-domiciled bank holding company that operates through its principal banking subsidiary, Banco Popular de Puerto Rico (BPPR), the largest bank in Puerto Rico by deposits, and through its U.S. mainland subsidiary, Popular Bank, which has branches in New York, New Jersey, and Florida, plus broker-dealer and insurance services through specialized subsidiaries. For the second quarter ended June 30, 2026, the Corporation generated net income of $278.214 million on net interest income of $693.419 million, up 32.2 percent from $210.440 million in the prior-year quarter, and the diluted earnings per share of $4.35 for Q2 2026 was up 40.8 percent from $3.09 in the prior-year quarter. The H1 2026 picture compounds the trajectory, with net income of $523.888 million for the six months ended June 30, 2026 up 35.0 percent from $387.942 million in the prior-year period, and the diluted earnings per share of $8.13 for H1 2026 was up 44.1 percent from $5.64 in the prior-year period. The H1 2026 print also produced a net interest margin (NIM) of 3.66 percent for Q2 2026, a 17 basis point expansion from Q2 2025, and a Common Equity Tier 1 (CET1) capital ratio of 16.08 percent at June 30, 2026, up from 15.72 percent at December 31, 2025.
The investment thesis rests on three variables. The Puerto Rico economic recovery is the load-bearing macroeconomic variable, since the Corporation's primary market is Puerto Rico, and the Puerto Rico economic environment is a meaningful component of the Corporation's loan demand, deposit growth, and credit quality. The Puerto Rico public sector deposits of $22.7 billion at June 30, 2026 (up from $19.4 billion at December 31, 2025, a $3.3 billion year-to-date increase that reflects the broader Puerto Rico public sector activity) is the meaningful deposit growth driver, and the strategic intent is to continue building the Puerto Rico public sector deposit base. The NIM expansion of 17 basis points in the quarter and the related improvement in net interest income reflect the higher yields on U.S. Treasury securities and the lower deposit costs resulting from the repricing of the deposit base, and the strategic intent is to continue building the NIM trajectory through both the higher yielding assets and the lower cost deposits.