SAN JUAN, Puerto Rico, Feb. 19 /PRNewswire-FirstCall/ -- Popular, Inc. announced today a series of actions that build on previous events to provide greater financial flexibility to weather the current economic recession both in the United States and Puerto Rico. The Board of Directors reduced the quarterly cash dividend to $0.02 cent per common share. The Board believes that increasing the capital base is a prudent action in face of the prospect of worsening economic conditions. The reduction in the cash dividend will generate an additional $68 million of capital a year. In addition, Popular also continues to adopt aggressive cost-reducing measures that are expected to generate savings of approximately $34 million annually. A hiring and salary freeze across the Corporation continues in effect. Popular had $3.27 billion in capital, which is $630 million above the 'well capitalized' minimum threshold, and more than $880 million in loan loss reserves, as of Dec. 31, 2008. "The economic picture is likely to get worse before it gets better, but we are equipped to withstand this painful recession," said Popular, Inc. CEO and Chairman Richard Carrion. "We have implemented aggressive measures to reduce costs. We will leverage our franchise in Puerto Rico, which produced net income of $239 million in 2008 amid a rough environment, and continue restructuring our U.S. operations. Without question, we have some difficult months ahead. Everyone in this business knows that, but we are well capitalized and will certainly come out stronger from this." Popular, Inc. is a full service financial services provider based in Puerto Rico with operations in Puerto Rico, the United States, the Caribbean and Latin America. As the leading financial institution in Puerto Rico, with over 300 branches and offices, the Corporation offers retail and commercial banking services through its principal banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, mortgage loans, consumer lending, investment banking, broker-dealer and insurance services through specialized subsidiaries. In the United States, the Corporation operates Banco Popular North America ("BPNA"), including its wholly-owned subsidiary E-LOAN. BPNA is a community bank providing a broad range of financial services and products to the communities it serves. BPNA operates branches in New York, California, Illinois, New Jersey, and Florida. E-LOAN markets deposit accounts under its name for the benefit of BPNA and offers loan customers the option of being referred to a trusted consumer lending partner for loan products. The Corporation, through its transaction processing company, EVERTEC, continues to use its expertise in technology as a competitive advantage in its expansion throughout the United States, the Caribbean and Latin America, as well as internally servicing many of its subsidiaries' system infrastructures and transactional processing businesses. The Corporation is exporting its 115 years of experience through these regions while continuing its commitment to meeting the needs of retail and business clients through innovation, and to fostering growth in the communities it serves. An electronic version of this press release can be found at the Corporation's website, http://www.popular.com/. Contact: Investor Relations: Jorge A. Junquera Chief Financial Officer Senior Executive Vice President 787-754-1685 Media Relations: Teruca Rullan Senior Vice President Corporate Communications 787-281-5170 or 917-679-3596 (mobile) DATASOURCE: Popular, Inc. CONTACT: Jorge A. Junquera, Chief Financial Officer, Senior Executive Vice President, +1-787-754-1685; or Media Relations, Teruca Rullan, Senior Vice President, Corporate Communications, +1-787-281-5170, or mobile, +1-917- 679-3596, both of Popular, Inc. Web site: http://www.popularinc.com/

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