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Popular reports second-quarter profit growth and boosts capital returns
The bank said it raised its dividend 20% to 90 cents per share and authorized a new $1 billion buyback, while lifting its 2026 net interest income growth outlook to 8% to 9%.
Popular, the Puerto Rico-based lender, posted a second-quarter rise in earnings and used the results to expand shareholder returns, according to MarketBeat Ratings. The bank reported net income of $278 million, up 13% from the first quarter and 32% year-over-year.
Diluted earnings per share increased to $4.35, up 41% from the prior year quarter, as net interest income rose to $693 million while the net interest margin stayed at 3.66%. Non-interest income also climbed 7% to $181 million, helped by stronger card and service fees.
Popular’s results featured lower operating and interest expenses, with return on average tangible common equity reaching 17.02% for the quarter, up 3.76 percentage points from a year ago. The bank reported a common equity tier 1 ratio of 16.08% and total risk-based capital of 17.85%, giving it capacity to lend and return cash.
In its earnings announcement, Popular sought to lift its quarterly dividend 20% to 90 cents per share and approved a new $1 billion stock buyback after largely completing a prior $500 million authorization. The bank also raised its full-year 2026 net interest income growth target to 8% to 9%, increased its quarterly non-interest income outlook to $165 million to $170 million, and trimmed expected operating expense growth.