Popular, Inc. (NASDAQ:BPOP) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET

Company Participants

Paul Cardillo - Investor Relations Officer

Ignacio Alvarez - Chief Executive Officer

Javier Ferrer – Chief Operating Officer

Carlos Vazquez - Chief Financial Officer

Lidio Soriano - Chief Risk Officer

Conference Call Participants

Alex Twerdahl - Piper Sandler

Tim Braziler - Wells Fargo

Brett Rabatin - Hovde Group

Kelly Motta - KBW

Thomas Leddy - RBC

Operator

Welcome to today's Popular, Inc. Q3 2022 Earnings Call. My name is Juan I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Paul Cardillo, Investor Relations Officer at Popular, Inc. To begin, please go ahead.

Paul Cardillo

Good morning, and thank you for joining us. With us on the call today is our CEO, Ignacio Alvarez; our COO, Javier Ferrer, our CFO, Carlos Vazquez; and our CRO, Lidio Soriano. They will review our third quarter results and then answer your questions. Other members of our management team will also be available during the Q&A session.

Before we start, I would like to remind you that on today's call, we may make forward-looking statements that are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements are set forth within today's earnings press release and are detailed in our SEC filings. You may find today's press release and our SEC filings on our web page at popular.com.

I will now turn the call over to our CEO, Ignacio Alvarez.

Ignacio Alvarez

Good morning, and thank you for joining the call. Our results for the quarter were solid and reflect the strength of the economic activity in our markets, our diversified sources of revenue and prudent risk management.

In the third quarter, we achieved net income of $422 million or $196 million, excluding the impact of the Evertec transactions. At the beginning of the quarter, we closed the previously announced agreement with Evertec to acquire key customer-facing channels and to extend important commercial agreements. This transaction is already allowing us to accelerate our ongoing digital and business transformation, as we focus on the changing needs and expectations of our clients and enhancing the omnichannel experience that we provide.

Please turn to Slide 3. Our quarterly net income, excluding the impact of the Evertec transactions, was $16 million lower than the second quarter. Third quarter results were characterized by positive variances in net interest income and fee income offset by higher provision for credit losses and operating expenses. The adjusted results for the quarter do not include any equity pickup from our prior investment in Evertec.