Popular, Inc. Reports $278.2 Million Net Income in Q2 2026, Driven by Higher Net Interest Income

Popular, Inc. reported a net income of $278.2 million for the second quarter of 2026, marking a significant increase of $67.8 million compared to $210.4 million in the same quarter of the previous year. This growth was primarily driven by higher net interest income, which rose to $693.4 million, an increase of $61.9 million year-over-year. The increase in net interest income was attributed to a rise in investments in U.S. Treasury securities, loan growth, and a decrease in the cost of deposits, particularly from Puerto Rico public deposits. The net interest margin expanded by 17 basis points to 3.66%, reflecting improved yields on investments and loans.

In terms of operational metrics, the provision for credit losses increased to $65.9 million, up from $48.9 million in the prior year, largely due to higher specific reserves in the commercial loan portfolio. Non-interest income also saw an uptick, reaching $180.5 million, which is $12.1 million higher than the previous year, driven by increased activity in credit and debit card transactions. Operating expenses decreased to $484.1 million, down $8.6 million from the same quarter in 2025, primarily due to lower operational loss reserves and professional fees.

As of June 30, 2026, Popular, Inc. reported total assets of $79.0 billion, an increase from $75.3 billion at the end of 2025. This growth was mainly due to an increase in the available-for-sale securities portfolio and higher loans held-in-portfolio, which amounted to $39.7 billion, reflecting a $422.3 million increase from the previous period. Total deposits also rose to $70.2 billion, up $4.0 billion, driven by growth in Puerto Rico public deposits and commercial deposits.

The company’s stockholders’ equity increased to $6.4 billion, compared to $6.2 billion at the end of 2025, supported by the net income generated during the first half of 2026. The Common Equity Tier 1 Capital Ratio stood at 16.08%, up from 15.72% at the end of the previous year, indicating a strong capital position. Looking ahead, Popular, Inc. announced plans to increase its quarterly common stock dividend from $0.75 to $0.90 per share, subject to board approval, and authorized a new common stock repurchase program of up to $1 billion.