Popular, Inc. Reduces Dividend
February 19 2009 - 3:17PM
PR Newswire (US)
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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