Banking group Popular cuts 2026 loan growth forecast to 2%

Popular

Yesterday 12:18

Overview
Puerto Rico banking group's Q3 EPS rose 34% yr/yr but fell 3% from prior qtr
Net interest income increased from Q2, driven by investment securities and commercial loans
Company repurchased $179 mln of common stock and raised dividend by 20%

Outlook
Popular expects 2026 net interest income to rise about 8.5% for the year
Popular now expects 2026 net charge-offs of 80-90 bps annualized, up from prior view
Company cuts 2026 loan growth forecast to 2%

Result Drivers
INVESTMENT SECURITIES AND COMMERCIAL LOANS - Co said higher net interest income was driven by increased income from investment securities and commercial loans, plus one additional day in the quarter
HIGHER OPERATING EXPENSES - Co attributed increased operating expenses mainly to higher personnel costs from salary increases, incentives, and one extra day in the quarter
LOWER NON-INTEREST INCOME - Co said non-interest income declined due to lower service charges on deposits after launch of new deposit product with $0 fees for qualifying clients

Company press release: ID:nBw9m5TCza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$4.21
 
Q3 Net Income
 
$266 mln
 
Q3 Net Interest Income
 
$698.93 mln
 
Q3 Credit Loss Provision
 
$58.59 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Popular, Inc. is $196.00, about 20.8% above its October 21 closing price of $162.25
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

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Oct 22 - Huntington Bancshares Q3 EPS unchanged, net interest income up 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)