Financial services provider Popular Inc. (BPOP: Quote) said Wednesday its second quarter profit declined from last year, owing to lower net interest and non interest income, and higher operating expenses. Nonetheless, earnings for the quarter topped Street estimates, helped by a sharp decline in loan-loss provisions.
Shares of the company are currently down by about 7 percent in afternoon trade on the Nasdaq.
Puerto Rico-based Popular, which provides retail and commercial banking products, reported second quarter net income to common shares of $64.8 million or $0.63 per share. This compares to net income of $109.8 or $1.07 per share last year.
On average, five analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items. Results for the quarter include income tax benefits of about $78 million.
Net interest income for the quarter slid to $341 million from $374.5 million last year, while net interest margin dropped to 4.33 percent from 4.48 percent.
Total non interest income was lower at $124 million, compared to $93.7 million a year earlier, hurt by trading account loss and sharply lower FDIC loss share income.
Further, there was an increase in operating expenses to $327.9 million from $281.8 million last year, reflecting loss on extinguishment of debt and other costs.
However, the company benefited from a decline in total provision for loan loss to $119 million from $144 million a year earlier.
At the end of the quarter, the company had net total loans held-in-portfolio of $24.5 billion, compared to $23.9 billion last year. Total deposits at the end of the quarter were $27.96 billion, compared to $27.4 billion in the prior year.
BPOP is trading at $15.23, down 6.56%, on a volume of over 1.0 million shares on the Nasdaq.
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by RTT Staff Writer
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