BPOP - Popular Inc.: Provision Reversals To Boost Earnings

• The provision expense will likely remain subdued in the year ahead because allowances currently appear excessive. Further, Puerto Rico's economy has considerably improved.
• The federal stimulus will likely boost deposits, which in turn will likely drive earnings growth in the remainder of the year.
• A shift in the asset mix towards lower-yielding assets will likely pressurize the net interest margin.
• The December 2021 target price suggests a downside from the current market price. Further, Popular Inc. is offering a low dividend yield.

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