Popular earnings increased from a year earlier as higher net interest income and lower credit provisions supported the Puerto Rico-based bank. The company also confirmed a higher quarterly dividend.

Popular earnings benefit from higher net interest income

Net interest income reached $699 million, up from $647 million a year earlier. The net interest margin increased 12 basis points to 3.63%, according to Popular’s October 22 results.

The provision for credit losses fell to $58.6 million from $75.1 million. Non-interest income increased modestly to $175.7 million, while operating expenses rose to $505.6 million.

Diluted earnings per share reached $4.21, compared with $3.14 a year earlier. However, earnings fell 3% from the preceding quarter.

Popular earnings show stable capital and credit trends

Loans held in portfolio increased to $40.04 billion from $38.69 billion a year earlier. Deposits rose to $68.71 billion from $66.51 billion.

The Tier 1 risk-based capital ratio was 16.12%, up 28 basis points year over year. Return on tangible common equity reached 15.80%, compared with 13.06% in the prior-year quarter.

Higher rates continue to shape bank margins and deposit costs. The upcoming Fed meeting and economic-data calendar outlines the next major policy events.

Dividend increase follows $179 million buyback

Popular repurchased $179 million of common stock during the quarter. Total capital returned to shareholders reached $236 million, up from $170 million a year earlier.

The board confirmed a quarterly cash dividend of $0.90 per share on October 23. The dividend announcement set a January 4 payment date for shareholders of record on November 13.

For comparison, Fusion Market News recently covered American Express’ revised earnings outlook and MarketAxess’ trading-volume growth.

The earnings release was dated October 22, while the dividend approval followed on October 23. Those publication dates are separate from the September 30 quarter end.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.