Popular profits rise as net interest margin expands in Q1

Popular (NASDAQ:BPOP), the financial institution in Puerto Rico, reported robust results for the first quarter of 2026, characterized by margin expansion and improved operational efficiency.

The San Juan-based bank posted net income of $245.7 million, an increase from the $233.9 million recorded in the fourth quarter of 2025.

Diluted earnings per share (EPS) rose to $3.78, compared to $3.53 in the preceding period.

The quarter’s performance was highlighted by a significant strengthening of core lending profitability.

Net interest income grew to $670.2 million, up $12.6 million from the fourth quarter.

This growth was underpinned by a widening net interest margin, which reached 3.66%, up from 3.61% in the prior quarter.

On a taxable equivalent basis, the margin expanded even more notably to 4.14%, reflecting a favorable asset mix and disciplined deposit pricing in a stabilizing interest rate environment.

Operating expenses for the first quarter totaled $467.3 million, a decrease of $5.9 million compared to the previous quarter.

However, the underlying improvement in efficiency was more pronounced when normalized; excluding the $15.3 million partial reversal of the FDIC special assessment reserve recorded in the fourth quarter, operating expenses decreased by $21.2 million.

This reduction reflects the corporation’s ongoing focus on streamlining its Caribbean and U.S. mainland operations.

Elsewhere, non-interest income remained relatively stable at $165.6 million, while the bank maintained its strong capital position and healthy credit metrics across its retail and commercial portfolios.