Popular Inc (NASDAQ:BPOP) Tops Q3 2025 Earnings and Revenue Estimates

Popular Inc (NASDAQ:BPOP) reported financial results for the third quarter of 2025 that surpassed analyst expectations on the top and bottom lines, a performance that appears to be resonating positively with investors in pre-market trading.

Earnings and Revenue Highlights

The Puerto Rican financial institution posted revenue of $817.7 million for the quarter, an 11% increase compared to the same period last year. This figure came in significantly ahead of Wall Street's consensus estimate of approximately $684.7 million. On profitability, the company reported net income applicable to common stock of $211.0 million, or $3.14 per diluted share. This earnings per share (EPS) result exceeded the analyst estimate of $3.01 by approximately 6.4%.

Key financial drivers for the quarter included:

• Net interest income of $646.5 million, an increase of $15.0 million from the previous quarter.
• Net interest margin of 3.51%, up two basis points.
• Provision for credit losses of $75.1 million, up from $48.9 million in Q2, primarily due to two specific commercial loan exposures.
• Non-interest income of $171.2 million, showing a slight increase.

Market Reaction and Price Action

The market's initial reaction to the earnings beat has been favorable. Following the release, BPOP shares are trading higher in the pre-market session, indicating investor confidence in the company's quarterly performance and future prospects. This positive momentum stands in contrast to the stock's performance over the past month.

Press Release Summary and Credit Quality

In the earnings release, President and CEO Javier D. Ferrer highlighted "higher revenues, continued expansion of our net interest margin, and discipline in expense management" as drivers of the strong results. He also pointed to solid loan growth and stable customer deposit balances.

A significant focus of the quarter was on credit quality, which was impacted by two unrelated commercial loans.

• A $158.3 million loan to a telecommunications company in Puerto Rico and a $30.1 million commercial real estate facility in Florida were classified as non-performing.
• This caused total non-performing loans (NPLs) to increase by $190.6 million to $502.2 million.
• Management emphasized that these are isolated, borrower-specific issues and are not indicative of a broader decline in the overall portfolio's credit quality. Excluding these two loans, credit metrics were reported as stable.

Capital and Strategic Position

The company maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 15.79% as of September 30, 2025. Popular Inc also continued its capital return program, repurchasing 1 million shares of common stock for $119.4 million during the quarter. The company is executing on a strategic framework focused on customer service, operational efficiency, and delivering sustainable returns.

For a detailed breakdown of future earnings projections and historical estimates, you can review the data available on the Popular Inc earnings estimates page.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information contained herein should not be construed as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.