Popular’s fourth quarter was met with a positive market response, reflecting management’s progress in expanding net interest income and maintaining expense discipline. CEO Javier Ferrer-Fernández credited strong commercial and mortgage loan growth in Puerto Rico, improved net interest margin, and lower operating expenses as primary contributors. Management noted that stable credit quality and strategic cost initiatives supported improved profitability. Ferrer-Fernández highlighted ongoing investments in digital origination platforms and branch modernization, which contributed to better customer engagement and operational efficiency during the quarter.
Is now the time to buy BPOP? Find out in our full research report (it’s free for active Edge members).
Popular (BPOP) Q4 CY2025 Highlights:
- Revenue: $823.8 million vs analyst estimates of $825 million (9% year-on-year growth, in line)
- Adjusted EPS: $3.40 vs analyst estimates of $3.04 (11.6% beat)
- Adjusted Operating Income: $263.3 million vs analyst estimates of $332.7 million (32% margin, 20.9% miss)
- Market Capitalization: $8.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Popular’s Q4 Earnings Call
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Brett Rabatin (Hope Group) asked about the outlook for net interest income and margin expansion. CEO Javier Ferrer-Fernández explained that margin expansion should continue but at a slower pace, with low-cost deposit growth being key to the outlook.
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Jared Shaw (Barclays) probed fee income sustainability and potential for M&A. Ferrer-Fernández clarified that nonrecurring fee items inflated prior results and that whole bank M&A is not a priority, but niche opportunities will be evaluated.
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Benjamin Gerlinger (Citi) questioned the sustainability of expense levels and investment pace. CFO Jorge Garcia responded that investment capacity is steady, with resource allocation shifting as projects go live and new initiatives begin.
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Kelly Motta (KBW) inquired about capital structure optimization and the potential for additional tier one instruments. Ferrer-Fernández indicated that the company is evaluating options to optimize its capital stack without impacting regulatory capital ratios.
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Arren Cyganovich (Truist) asked about deposit competition and the impact of increased U.S. military presence in Puerto Rico. Ferrer-Fernández noted steady but rational deposit competition and described military activity as a net positive for the local economy.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be closely monitoring (1) the pace and quality of commercial and mortgage loan growth, (2) Popular’s ability to grow and retain core deposit relationships while managing funding costs, and (3) the execution and results of ongoing digital transformation initiatives. Any significant developments in Puerto Rico’s economic environment or shifts in asset quality will also be critical indicators of management’s ability to deliver sustained profitability.
Popular currently trades at $136.75, up from $122.87 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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