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Popular shows post-hurricane resilience; shares up nearly 7%

Published 01/23/2018, 11:31 AM
© Reuters.  Popular shows post-hurricane resilience; shares up nearly 7%
BPOP
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  • Popular (NASDAQ:BPOP) bull Mark Palmer from BTIG says that while the bank continues to try to reopen branches and ATMs post-storm, Q4 results were mostly benign.
  • Adjusted EPS of $0.65 was well ahead of consensus $0.50, with net interest income of $387.2M topping Palmer's expectations. Provisions of $70M were less than anticipated. The revenue impact from the hurricanes of $20M was within the guided range of $5M-$30M.
  • As for tax reform, the bank did have to take a $168M write-down to its DTA, pushing tangible book value down $1.77 per share to $43.02. The bank's effective tax rate going forward, however, should dip to 21%-24% from the mid-high 20% area.
  • Palmer reiterates his Buy rating and $46 price target.
  • Shares up 6.8% to $40.99.
  • Previously: Popular beats on net interest income (Jan. 23)
  • Now read: Popular, Inc. 2017 Q4 - Results - Earnings Call Slides


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