Popular Inc. raises 2026 net interest income guidance to 8%-9% growth
Popular Inc. raised its full-year 2026 net interest income guidance to 8%-9% growth from the prior 5%-7% guidance, citing higher volume of Puerto Rico public deposits. The company also updated guidance on non-interest income, net charge-offs, operating expenses, effective tax rate, and loan growth, reflecting results from the second quarter when net income reached $278 million, up 32% year-over-year.
- Net interest income guidance raised to 8%-9% increase for the year from prior 5%-7% guidance
- Non-interest income guidance raised to $165 million-$170 million per quarter from $160 million-$165 million
- Net charge-offs (NCOs) guidance raised to 65 bps-80 bps annualized from 55 bps-70 bps
- Operating expenses guidance lowered to 2%-3% increase for the year from 3%
- Effective tax rate guidance narrowed to 14%-15% for the year from 15%-17%
- Loan growth guidance at low-end of prior 3%-4% range
- Q2 2026 net income of $278 million, up from $210 million in Q2 2025
- Return on average tangible common equity (ROTCE) improved to 17.02% in Q2 2026 from 15.46% in Q1 2026
The guidance increases for net interest income and non-interest income reflect Popular's stronger-than-expected deposit growth and consumer activity, while the higher NCO guidance acknowledges one material commercial credit resolution in Q2 that resulted in a $71 million charge-off; the company is recalibrating investor expectations around profitability drivers mid-year.
Derived from 8-K filed 2026-07-23. Not investment advice. Figures are extracted from the filing; prose is AI-assisted. View the source filing on SEC.gov →