Puerto Rican financial institution Popular (NASDAQ:BPOP) met Wall Streets revenue expectations in Q4 CY2025, with sales up 9% year on year to $823.8 million. Its GAAP profit of $3.53 per share was 16.2% above analysts’ consensus estimates.

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Net Interest Income: $657.6 million vs analyst estimates of $650.6 million (11.3% year-on-year growth, 1.1% beat)

Net Interest Margin: 3.6% vs analyst estimates of 3.7% (11.8 basis point miss)

Revenue: $823.8 million vs analyst estimates of $825 million (9% year-on-year growth, in line)

EPS (GAAP): $3.53 vs analyst estimates of $3.04 (16.2% beat)

Tangible Book Value per Share: $82.65 vs analyst estimates of $82.55 (24.8% year-on-year growth, in line)

Market Capitalization: $8.19 billion

“We closed out a strong fourth quarter and an excellent year for Popular, reflecting the discipline and focus of our team across the organization,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc.

Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, Popular’s revenue grew at a mediocre 8.6% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the banking sector, but there are still things to like about Popular.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Popular’s recent performance shows its demand has slowed as its annualized revenue growth of 7.4% over the last two years was below its five-year trend.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Popular grew its revenue by 9% year on year, and its $823.8 million of revenue was in line with Wall Street’s estimates.

Net interest income made up 77.4% of the company’s total revenue during the last five years, meaning lending operations are Popular’s largest source of revenue.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

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The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Popular’s TBVPS grew at a decent 5.6% annual clip over the last five years. TBVPS growth has accelerated recently, growing by 18.9% annually over the last two years from $58.45 to $82.65 per share.

Over the next 12 months, Consensus estimates call for Popular’s TBVPS to grow by 12.9% to $93.29, decent growth rate.

It was good to see Popular beat analysts’ EPS expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $123.48 immediately following the results.

Popular put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.