InvestorPresentationFirst Quarter 2018

InvestorPresentationFourth Quarter

2018

This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including without limitation those about Popular’s business, financial condition, results of operations, plans, objectives, and future performance. These statements are not guarantees of future performance, are based on management’s current expectations and, by their nature, involve risks, uncertainties, estimates and assumptions. Potential factors, some of which are beyond the Corporation’s control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. Risks and uncertainties include without limitation the effect of competitive and economic factors, and our reaction to those factors, the adequacy of the allowance for loan losses, delinquency trends, market risk and the impact of interest rate changes, capital market conditions, capital adequacy and liquidity, the effect of legal proceedings and new accounting standards on the Corporation’s financial condition and results of operations, the impact of Hurricanes Irma and Maria on us, our ability to successfully integrate the auto finance business acquired from Wells Fargo & Company, as well as the unexpected costs, including, without limitation, costs due to exposure to any unrecorded liabilities or issues not identified during the due diligence investigation of the business or that are not subject to indemnification or reimbursement, and risks that the business may suffer as a result of the acquisition, including due to adverse effects on relationships with customers, employees and service providers. All statements contained herein that are not clearly historical in nature, are forward-looking, and the words “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions, and future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, are generally intended to identify forward-looking statements.

More information on the risks and important factors that could affect the Corporation’s future results and financial condition is included in our Annual Report on Form 10-K for the year ended December 31, 2017, our Quarterly Report on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018, and in our Annual Report on Form 10-K for the year ended December 31, 2018 to be filed with the SEC. Our filings are available on the Corporation’s website (www.popular.com) and on the Securities and Exchange Commission website (www.sec.gov). The Corporation assumes no obligation to update or revise any forward-looking statements or information which speak as of their respective dates.

Cautionary Note Regarding Forward-Looking Statements

2

http://www.popular.com/http://www.sec.gov/

• NPL ratio flat at 2.3% YoY

• NCO ratio flat at 1.1% YoY

Credit Metrics

• Net income of $618.2 million; adjusted net income of $487.3 million¹

• Strong margins: Popular, Inc. 4.01%, BPPR 4.27%Earnings

• Robust capital; Common Equity Tier 1 Capital ratio of 16.9%

• Tangible book value per share of $46.90 compared to $43.02 in 2017Capital

• Acquisition of Wells Fargo’s auto finance business in P.R.

• Early termination of the FDIC Shared-Loss Agreements

• $125 million accelerated share repurchase transaction

• Cancellation of $450 million of senior debt with a 7% coupon and issuance $300 million senior debt at 6.125%

• Redemption of $53 million of Trust Preferred Securities

Year Events

2018 Full Year Highlights

3

1 See slide 6 for Q4 2018 adjusted Non-GAAP results

• NPLs decreased by $21 million QoQ; ratio at 2.3%

• NCO ratio increased to 1.63% from 1.00% the previous quarter

Credit Metrics

• Net income of $106.4 million; adjusted net income of $134.1 million¹

• Strong margins: Popular, Inc. 4.25%, BPPR 4.51%Earnings

• Robust capital; Common Equity Tier 1 Capital ratio of 16.9%

• Tangible book value per share of $46.90 compared to $44.62 in Q3 2018

Capital

Significant expense items:

• Voluntary Retirement Program: $19.5 million

• Profit Sharing Plan: $17.5 million in Q4, $25.5 million for the year

• Early extinguishment of debt: $12.5 million

• Write down of the P.R. deferred tax asset (DTA): $27.7 million

Quarter Events

Q4 2018 Highlights

4

1 See slide 6 for Q4 2018 adjusted Non-GAAP results

Financial Summary (GAAP)1

1 See slide 6 for Q4 2018 adjusted Non-GAAP results

5

(Unaudited)

($ in thousands) Q4 2018 Q3 2018

Net interest income 476,225$ 451,469$ 24,756$

Service charges on depos its 38,973 38,147 826

Other service fees 70,226 64,316 5,910

Mortgage banking activi ties 19,394 11,269 8,125

Adjustments (expense) to indemnity reserves on loans sold (6,477) (3,029) (3,448)

Other non-interest income 31,051 40,318 (9,267)

Gross revenues 629,392 602,490 26,902

Provis ion for loan losses 42,568 54,387 (11,819)

Net revenues 586,824 548,103 38,721

Personnel costs 173,047 139,757 33,290

Profess ional fees 89,096 83,860 5,236

Bus iness promotion 21,653 15,478 6,175

OREO expenses 2,310 7,950 (5,640)

Loss on early extinguishment of debt 12,522 - 12,522

Other operating expenses 97,827 118,392 (20,565)

Total operating expenses 396,455 365,437 31,018

Income before income tax 190,369 182,666 7,703

Income tax expense 83,966 42,018 41,948

Net income 106,403$ 140,648$ (34,245)$

Variance

GAAP Reconciliation1

6

1 Refer to the Corporation's Q4 2018 earnings release for more detailed information

(Unaudited)

($ in thousands)

Pre-tax

Impact on

net income

U.S. GAAP Net income 618,158$

Non-GAAP Adjustments :

Termination of FDIC Shared-Loss Agreements (94,633) 45,059 (49,574)

Tax Clos ing Agreement - (108,946) (108,946)

Impact on DTA from the P.R. Tax Reform - 27,686 27,686

Adjusted net income (Non-GAAP) 487,324$

YTD 2018

Income tax

effect

(Unaudited)

($ in thousands)

Pre-tax

Impact on

net income

U.S. GAAP Net income 106,403$

Non-GAAP Adjustments :

Impact on DTA from the P.R. Tax Reform - 27,686 27,686

Adjusted net income (Non-GAAP) 134,089$

Q4 2018

Income tax

effect

7

Popular, Inc.(%)

Capital

Note: Estimated for the current period

• Robust capital levels; Common Equity Tier 1 of 16.9%

• Tangible book value per share of $46.90 compared to $44.62 in Q3 2018

• Completed a $125 million accelerated share repurchase transaction in Q4 2018

• 2019 planned capital actions:

• $250 million common stock repurchase

• Increase quarterly dividend to $0.30 per share effective Q2 2019

8

Municipalities

Obligations of municipalities are backed by realand personal property taxes, municipal excisetaxes, and/or a percentage of the sales and usetax.

Indirect exposure includes loans or securities thatare payable by non-governmental entities, butwhich carry a government guarantee to cover anyshortfall in collateral in the event of borrowerdefault. Majority are single-family mortgagerelated.

Indirect Exposure

The Corporation does not own any debt issued by the P.R. central government or its public corporations. Our direct exposure to P.R. municipalities is $458 million, flat QoQ.

P.R. Public Sector Exposure

Outstanding P.R. government exposure1

($ in millions) Loans Securities Total

Municipalities 413$ 45$ 458$

Indirect Exposure 317$ 52$ 368$

1 Numbers may not add due to rounding

9

Highlights

• NPAs decreased by $18 million QoQ

• NPLs decreased by $21 million QoQ

P.R. NPLs at $568 million, or 2.9% of loans,down by $13 million, mainly driven bylower mortgage NPLs of $25 million, in partoffset by higher commercial NPLs of $12million

U.S. NPLs at $43 million, or 0.7% of loans,down by $9 million QoQ, as a $6 millionconstruction loan charge-off wasrecognized during the quarter

• OREOs up by $3 million QoQ, driven by theresumption of foreclosure activity

Non-Performing Assets ($ in millions)

Non-Performing Assets

Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding

Non-Performing Loans ($ in millions)

$852

$1,293

$2,402

$2,489

$2,365

$2,002

$932 $933 $843 $774 $743 $779 $785 $766 $748

1.9%

3.3%

6.9%6.4% 6.3%

5.5%

2.6% 2.8%2.4%

2.0%1.7% 1.7% 1.7% 1.6% 1.6%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 18 Q2 18 Q3 18 Q4 18

Total NPLs OREOs NPL HFS NPAs/Total Assets

10

NPL Inflows

Total NPL Inflows ($ in millions)

Highlights

• Total NPL inflows remained flat QoQ P.R. mortgage inflows at $46 million continued to trend

significantly lower than pre-hurricane levels

P.R. commercial inflows remained stable QoQ

U.S. inflows down by $2 million QoQ

Mortgage NPL Inflows ($ in millions)

Commercial, Construction and Legacy NPL Inflows($ in millions)

Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding

11

NCOs and NCO-to-Loan Ratio($ in millions)

Provision and Provision-to-NCO Ratio($ in millions)

Highlights

• NCO ratio at 1.63% vs. 1.00% in Q3 2018, driven by: Higher P.R. commercial NCOs of $49 million, related to two large

relationships

Lower P.R. consumer and mortgage NCOs of $7 million and $4million, respectively

• Allowance for loan and lease losses (ALLL) down by $64 millionQoQ

P.R. ALLL decreased by $53 million, driven by charge-off activity

ALLL-to-Loans ratio at 2.15% vs. 2.39% in Q3 2018

ALLL-to-NPL at 93%, down from 100% in Q3 2018

• Provision down by $8 million in P.R. and $3 million in the U.S

Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding

ALLL, ALLL-to-NCO and ALLL-to-NPL Ratios($ in millions)

Additional Credit Metrics

503508

518 526 510 517 509

614590 607

643 634

569

152%133%

84% 93%

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

ALLL ALLL/NCO ALLL/NPL

4748 45 43 41 42

50

158

70 6960 54

43

11

-5

0

56%40%

-70.0%

-20.0%

30.0%

80.0%

130.0%

180.0%

230.0%

280.0%

330.0%Q

4 1

5

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

PLLL Loan Sales PLLL PLLL/NCO

83

4235

35

56

36

57 53

94

5358 64

107

8

-5

1.48%1.63%

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

Q1

18

Q2

18

Q3

18

Q4

18

NCO Loan Sales Write-downs/(recoveries) NCO%

Market Leadership

Digital Transformation

Puerto Rico’s Banking Franchise

12

35%

54%

22%

46%

2009 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018

Total Deposits(net of brokered)

P.R. Market Share Trend

1.43

1.75

0.50

0.80

1.10

1.40

1.70

2.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Customers(in millions)

Our Customer Base

• Continued strengthening deposit franchise

Total deposits rose $4.0 billion or 14% from 2017

Non-public deposits grew $1.6 billion or 7% from 2017

• 1.3 million customers enrolled in online banking; 200 thousand new enrollments in 2018

• 839 thousand active online customers; 77% use mobile devices

• Captured 47% of total deposit transactions through digital channels

• Consistent growth of customer base

Grew customers in 2018 by approximately 50 thousand (3%)

Additionally acquired 30 thousand new customers as part of the Reliable transaction

Reached 1.75 million customers at year end

¹ Reliable customer data is as of October 20182 Source: Puerto Rico Office of the Commissioner of Financial Institutions, COSSEC, and 10K Reports. Information included pertains to PR Commercial Banks and Credit Unions

2

1

Total Loans 2

13

Driving Shareholder Value

Capital

• Robust capital with Common Equity Tier 1 Capital of 16.9%

• Tangible book value per share of $46.90

• Continue to implement capital strategy

Earnings

• Franchise in P.R. uniquely positioned to take advantage of improving economic trends

• Strong contribution from acquisition of Wells Fargo’s auto finance business

Additional Value • Investment in Evertec and Banco BHD León

InvestorPresentationFourth Quarter

2018

Appendix

15

Banco Popular de Puerto Rico

Popular Auto, LLC

Popular Securities LLC

Popular’s Insurance

Subsidaries

Popular North America, Inc.

Popular Bank1

Holding Companies

(Including Equity Investments)

Franchise Summary Corporate Structure

Assets = $38 billion Assets = $9 billion

Puerto Rico Operations United States Operations

Assets = $48 billion

Corporate Structure – Popular, Inc.

Information as of December 31, 2018¹ Doing business as Popular

Selected equity investments

EVERTEC and Banco BHD León under Corporate segment and joint ventures under BPPR segment

• Transaction processing, business processes outsourcing

• 16.02% stake• Adjusted EBITDA of $52

million for the quarter ended September 30, 2018

• Dominican Republic bank

• 15.84% stake• 2017 net

income of $164 million

PRLP 2011 Holdings, LLC• Construction and

commercial loans vehicle• 24.9% stake

PR Asset Portfolio 2013-1 International, LLC• Construction, commercial

loans and OREOs vehicle• 24.9% stake

Industry Financial services

Headquarters San Juan, Puerto Rico

Assets $48 billion (among top 50 BHCs in the U.S.)

Loans $27 billion

Deposits $40 billion

Banking branches 163 in Puerto Rico, 51 in the U.S. and 9 in the Virgin Islands

NASDAQ ticker symbol BPOP

Market Cap $5 billion

De-Risked Loan Portfolios

• The Corporation has de-risked its loan portfoliosby reducing its exposure to asset classes withhistorically high loss content

• The P.R. commercial portfolio reductions include:

Commercial portfolio, including construction,has decreased from 55% of total loans held-in-portfolio to 38%

Construction portfolio is down by 93% since Q42007

SME1 lending is down by 56% from Q4 2007

• Collateralized exposure now represents a largerportion of consumer loan portfolio

• Unsecured loan credit quality has improved asoverall FICO scores have increased

16

Differences due to rounding

($ in millions)

Highlights

1 Small and Medium Enterprise 2 NCOs distribution represents the percentage allocation of net charge-offs from Q1 2008 through Q3 2018 per each loan category, excluding net charge-offs from previously covered loans up to Q2 2015.

$ in millions Q4 2007 Q4 2018 Q4 2007 Q4 2018 Q4 2007 Q4 2018 Variance

Commercia l $7,774 $7,373 $4,515 $4,670 $12,288 $12,043 ($245)

Consumer 3,552 5,057 1,698 433 5,249 5,490 241

Mortgage 2,933 6,433 3,139 802 6,071 7,235 1,164

Construction 1,231 86 237 693 1,468 779 (689)

Leases 814 935 - - 814 935 121

Legacy - - 2,130 26 2,130 26 (2,104)

Total $16,304 $19,884 $11,718 $6,624 $28,021 $26,508 ($1,513)

Loan Composition (Held-in Portfolio)

P.R. U.S. Total

NCOs

($mm) (%) ($mm) (%) ($mm) (%) Distribution 2

CRE SME 1 $2,938 33% $1,575 21% ($1,363) -46% 26%

C&I SME 1 2,287 25% 744 10% (1,543) -67% 27%

C&I Corp 1,592 18% 2,438 33% 846 53% 6%

Construction 1,231 14% 86 1% (1,145) -93% 32%

CRE Corp 892 10% 2,470 33% 1,578 177% 8%

Multifamily 64 1% 146 2% 82 128% 1%

Total $9,004 $7,459 ($1,545) -17% 100%

P.R. Commercial & Construction Distribution

Q4 2007 Q4 2018 Variance

2018 Financial Summary (GAAP)1

1 See slide 6 for Q4 2018 adjusted Non-GAAP results

17

(Unaudited)

($ in thousands) YTD 2018 YTD 2017

Net interest income 1,734,877$ 1,501,964$ 232,913$

Service charges on depos its 150,677 153,709 (3,032)

Other service fees 258,020 217,267 40,753

Mortgage banking activi ties 52,802 25,496 27,306

Adjustments (expense) to indemnity reserves on loans sold (12,959) (22,377) 9,418

FDIC loss -share income 94,725 (10,066) 104,791

Other non-interest income 109,229 55,138 54,091

Gross revenues 2,387,371 1,921,131 466,240

Provis ion for loan losses – non-covered loans 226,342 319,682 (93,340)

Provis ion for loan losses – covered loans 1,730 5,742 (4,012)

Net revenues 2,159,299 1,595,707 563,592

Personnel costs 562,988 476,762 86,226

Profess ional fees 349,844 292,488 57,356

Bus iness promotion 65,918 58,445 7,473

OREO expenses 23,338 48,540 (25,202)

Loss on early extinguishment of debt 12,522 - 12,522

Other operating expenses 406,952 380,961 25,991

Total operating expenses 1,421,562 1,257,196 164,366

Income before income tax 737,737 338,511 399,226

Income tax expense 119,579 230,830 (111,251)

Net income 618,158$ 107,681$ 510,477$

Variance

18

Business Segments (GAAP)

¹ Non-fully taxable equivalentDifferences due to rounding

(Una udite d)

($ in millions) Financial Results Q4 2018 Q3 2018 Variance Q4 2018 Q3 2018 Variance

Net interest income 409$ 389$ 20$ 78$ 76$ 2$

Non-interest income 140 136 4 5 6 (1)

Gross revenues 549 525 24 83 82 1

Provis ion (reversa l ) for loan losses 44 52 (8) (1) 3 (4)

Operating expenses 309 296 13 50 47 3

Income before income tax 196 177 19 34 32 2

Income tax expense 80 39 41 9 10 (1)

Net income 116$ 138$ (22)$ 25$ 22$ 3$

($ in millions)

Balance Sheet Highlights

Total assets 38,038$ 38,339$ (301)$ 9,382$ 9,389$ (7)$

Total loans 19,896 19,836 60 6,624 6,689 (65)

Total depos its 33,101 33,453 (352) 6,981 7,006 (25)

Asset Quality (including covered assets) Q4 2018 Q3 2018 Variance Q4 2018 Q3 2018 Variance

Non-performing loans held-in-portfol io / Total

loans 2.85% 2.93% (0.08)% 0.65% 0.77% (0.12)%

Non-performing assets / Total assets 1.85% 1.85% 0.00% 0.49% 0.58% (0.09)%

Al lowance for loan losses / Total loans 2.55% 2.82% (0.27)% 0.94% 1.10% (0.16)%

Net interest margin¹ 4.51% 4.35% 0.16% 3.61% 3.50% 0.11%

BPPR Popular U.S.

Q4 2018 Q3 2018 Variance Q4 2018 Q3 2018 Variance

19

2018 Business Segments (GAAP)

¹ Non-fully taxable equivalentDifferences due to rounding

(Una udite d)

($ in millions) Financial Results 2018 2017 Variance 2018 2017 Variance

Net interest income 1,482$ 1,280$ 202$ 305$ 281$ 24$

Non-interest income 593 364 229 20 20 -

Gross revenues 2,075 1,644 431 325 301 24

Provis ion (reversa l ) for loan losses 198 253 (55) 30 78 (48)

Operating expenses 1,125 1,006 119 192 179 13

Income before income tax 752 385 367 103 44 59

Income tax expense 122 73 49 25 192 (167)

Net income 630$ 312$ 318$ 78$ (148)$ 226$

($ in millions)

Balance Sheet Highlights 2018 2017

Total assets 38,038$ 34,844$ 3,194$ 9,382$ 9,168$ 214$

Total loans 19,896 18,688 1,208 6,624 6,215 409

Total depos its 33,101 29,072 4,029 6,981 6,691 290

Asset Quality (including covered assets) 2018 2017 Variance 2018 2017 Variance

Non-performing loans held-in-portfol io / Total loans 2.85% 2.75% 0.10% 0.65% 0.64% 0.01%

Non-performing assets / Total assets 1.85% 2.01% -0.16% 0.49% 0.45% 0.04%

Al lowance for loan losses / Total loans 2.55% 2.95% -0.40% 0.94% 1.16% -0.22%

Net interest margin¹ 4.27% 4.32% -0.05% 3.54% 3.51% 0.03%

BPPR Popular U.S.

Variance 2018 2017 Variance

Consolidated Credit Summary

20

1 Beginning in Q2 2018 figures include loans previously classified as covered Differences due to rounding

$ in millions Q4 18 Q3 18 Q2 18 1 Q1 18 Q4 17

Loans Held in Portfolio (HIP) $26,508 $26,512 $24,609 $24,088 $24,293

Performing HFS $51 $52 $74 $78 $132

Total Non Covered Loans 26,559$ 26,564$ 24,682$ 24,166$ 24,425$

Non-performing loans (NPLs) $611 $632 $643 $607 $551

Commercial $184 $173 $165 $158 $165

Construction $14 $20 $20 $4 $0

Legacy $3 $3 $4 $3 $3

Mortgage $335 $361 $385 $370 $322

Consumer $73 $73 $66 $68 $58

Leases $3 $3 $4 $4 $3

NPLs HIP to loans HIP 2.31% 2.39% 2.61% 2.52% 2.27%

Net charge-offs (NCOs) $107 $64 $58 $53 $94

Commercial $53 $4 $18 $11 $39

Construction $5 ($0) ($0) ($0) $0

Legacy ($1) ($1) ($0) ($0) ($1)

Mortgage $18 $22 $12 $13 $24

Consumer $31 $37 $27 $27 $28

Leases $1 $2 $1 $2 $3

Write-downs/(recoveries)

NCOs to average loans HIP 1.63% 1.00% 0.95% 0.90% 1.61%

Provision for loan losses (PLL) $43 $54 $60 $69 $70

PLL to average loans HIP 0.65% 0.85% 0.99% 1.18% 1.21%

PLL to NCOs 0.40x 0.85x 1.04x 1.32x 0.75x

Allowance for loan losses (ALL) $569 $634 $643 $607 $590

ALL to loans HIP 2.15% 2.39% 2.61% 2.52% 2.43%

ALL to NPLs HIP 93.17% 100.19% 99.97% 100.03% 107.12%

Popular, Inc. Credit Ratings

21

Our senior unsecured ratings have remained stable

Moody’s B2 Stable Outlook

Fitch BB- Stable Outlook

S&P BB- Negative Outlook

February Moody’s changes

outlook to stable from

negative

AprilS&P upgrades to BB- from B+ revised outlook

to stable

2017

FebruaryS&P placed BPOP on

credit watch negative due to the general

economic environment in

Puerto Rico

2015

MayMoody’s, as part of a recalibration of their bank rating model,

upgraded BPOP from B2 to B1 with a stable

outlook

JulyOn 7/10 S&P

affirmed BPOP’s rating while

maintaining a negative outlook

MarchMoody’s placed BPOP on review

for possible upgrade due to a change in their

bank rating methodology

SeptemberMoody’s

downgraded BPOP to B2; outlook

negative

2016

AprilS&P revised outlook to

positive

October Fitch and S&P

change outlook to negative from stable

2018

MayFitch revised

outlook to stable

InvestorPresentationFourth Quarter

2018