Popular Inc. Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
Popular Inc. reported robust revenue growth in the latest quarter across its segments. In the BPPR segment, service charges on deposit accounts amounted to $34.7 million, while other service fees, including debit card fees, insurance fees, credit card fees, sale and administration of investment products, and trust fees, totaled $68.6 million. The Popular U.S. segment generated $2.6 million in service charges on deposit accounts and $4.7 million in other service fees. Overall, the company's revenue from contracts with customers reached $109.3 million in the quarter.
Popular Inc. demonstrated strength in its revenue performance, driven by solid growth in service charges on deposit accounts and other service fees. The increase in revenue can be attributed to higher consumer NCOs, reflecting post-pandemic credit normalization. Additionally, the BPPR segment's operations in the United States generated approximately $86.0 million in revenues, including net interest income and other service fees, indicating a strong performance in that market.
While Popular Inc. experienced overall revenue growth, the company faced challenges in its commercial segment. Commercial net charge-offs (NCOs) decreased by $9 million, mainly due to a $10.8 million recovery from a commercial loan pay-off. This suggests potential weakness in commercial lending activity.
It is worth noting that Popular Inc.'s BPPR segment participated in loans originated by PB, totaling $10 million in the latest quarter. This indicates collaboration and potential growth opportunities within the company's business segments.
Popular Inc. delivered a strong revenue performance in the latest quarter, driven by growth in service charges on deposit accounts and other service fees. The company's BPPR segment demonstrated strength in its operations in the United States, generating significant revenues. However, the commercial segment faced challenges with lower net charge-offs. Overall, Popular Inc.'s revenue growth reflects positive trends in consumer credit and highlights potential growth opportunities through collaboration within its business segments.