- A slow release of relief funds and the persistently high unemployment rate are creating concerns for loan growth. On the plus side, Puerto Rico is leading in handling the pandemic.
- The loan portfolio will likely bottom out soon.
- Further release of loan loss reserves is unlikely because the reserve level is comfortable relative to actual loan losses. Nevertheless, provisioning will most probably remain below normal.
- Next year's target price suggests a small downside from the current market price. Further, OFG is offering a low dividend yield.
For further details see:
OFG Bancorp: Loan Trend Remains Worrisome