Puerto Rico banks well positioned to withstand tariffs, Wells Fargo says

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09/04/2025 15:38

** Wells Fargo Securities says Puerto Rico banks are well positioned to withstand the potential impact of tariffs

** Sees the island as a net winner from recent macro uncertainty as its economy benefits from federal stimulus disbursements

** Brokerage says tariff exempt products - oil and pharma - represent a large portion of the island's imports

** While tariffs will likely have inflationary pressure across the U.S., Puerto Rico could get some relief from lower oil prices given that petroleum-fired power plants generate more than 60% of the island's electricity - brokerage

     ** Upgrades Popular BPOP.O and First BanCorp FBP.N to "overweight" from "equal-weight" as public fund deposits repricing lower will boost interest income

** Meanwhile, Wells Fargo downgrades OFG Bancorp OFG.N to "equal-weight" from "overweight" as deposit costs are unlikely to move lower along with rate cuts

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(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))