Popular Stock Gains 6.3% as Q4 Earnings Beat on Higher NII

Shares of Popular, Inc. BPOP rallied 6.3% in yesterday’s trading session on better-than-expected quarterly results. Its fourth-quarter 2025 adjusted earnings per share of $3.40 surpassed the Zacks Consensus Estimate of $3.02. The bottom line compared favorably with $2.51 in the year-ago quarter.

The results benefited primarily from a rise in net interest income (NII), fee income and loan balances. However, lower deposit balance, elevated operating expenses and higher provisions were headwinds.

Quarterly results in the reported quarter excluded the impact of a partial release of the FDIC special assessment reserve. After considering it, net income (GAAP basis) came in at $233.9 million, which rose 31.5% year over year.

For 2025, adjusted earnings per share of $12.18 beat the Zacks Consensus Estimate of $11.81. The figure represented a rise of 35% from the previous year. Net income (GAAP basis) was $833.2 million, up 35.6% year over year.

Popular’s Revenues Up & Expenses Rise Y/Y

Total quarterly revenues were $823.8 million, rising 9.1% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $814.9 million.

For 2025, total revenues were $3.2 billion, up 8.8%. The top line came marginally above the Zacks Consensus Estimate of $3.19 billion.

Quarterly NII was $657.6 million, up 11.3% year over year. Also, net interest margin (non-taxable equivalent basis) expanded 26 basis points to 3.61%.

Non-interest income increased 1% to $166.3 million. The rise was primarily driven by an increase in service charges on deposit accounts, other service fees and net gain on trading account debt securities.

Total operating expenses increased 1.2% to $473.2 million. The rise mainly stemmed from an increase in total personnel costs, total processing and transactional services and total business promotion.

BPOP’s Loans Rise & Deposits Fall Sequentially

As of Dec. 31, 2025, total loans held-in-portfolio increased 1.6% on a sequential basis to $38.5 billion. Total deposits were $66.2 billion, down marginally from the previous quarter.

Popular’s Credit Quality Deteriorates

In the fourth quarter of 2025, Popular recorded a provision for credit losses of $71.4 million, up 3.3% from the prior-year quarter.

As of Dec. 31, 2025, non-performing assets were $540.8 million, which increased 32.5% year over year. The non-performing assets to total assets ratio was 0.72% compared with 0.56% as of Dec. 31, 2024.

BPOP’s Capital Ratios Decline

As of Dec. 31, 2025, the Common Equity Tier 1 capital ratio and the Tier 1 capital ratio were 15.72% and 15.77%, respectively, down from 16.03% and 16.08% in the year-ago quarter.

Popular’s Share Repurchase Update

In the reported quarter, the company repurchased 1.25 million shares of common stock for $147.8 million.

Our View on BPOP

NII expansion and stabilizing funding costs are likely to aid Popular’s top-line growth in the near term. Additionally, its strong balance sheet position, backed by steady loan growth and solid liquidity, is expected to offer support. However, weakening asset quality, elevated expenses and significant exposure to the commercial loan portfolio are likely to affect financials.

Popular, Inc. Price, Consensus and EPS Surprise

Popular, Inc. price-consensus-eps-surprise-chart | Popular, Inc. Quote

Currently, Popular carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of BPOP’s Peers

Hancock Whitney Corp.’s HWC fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.

HWC’s results benefited from an increase in non-interest income and NII. Also, higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds.

F.N.B. Corporation FNB reported fourth-quarter 2025 operating earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. Also, the bottom line jumped 31.6% year over year.

FNB’s quarterly results benefited from higher NII and non-interest income. Higher loans and deposits and a decline in provisions were additional positives. However, higher non-interest expenses were an undermining factor.

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This article originally published on Zacks Investment Research (zacks.com).

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