SWOT Analysis
- Strengths: Record annual revenue (> $1B); all-time low non-performing assets (0.63%); high CET1 capital ratio (~16.7%); strong shareholder returns (95% payout).
- Weaknesses: Decelerating loan growth (3% vs 5% target); high concentration in the Puerto Rico geography; reliance on public sector deposit stability.
- Opportunities: Expansion in the Florida commercial market; 11% dividend increase attracting income-focused investors; continued NIM expansion of 2-3 bps per quarter in 2026.
- Threats: Indirect impact of 2026 Mexican tariffs on regional supply chains; potential for increased credit costs if Puerto Rican consumer sentiment weakens; interest rate volatility impacting mortgage volumes.