Popular Inc. stays profitable in Puerto Rico despite economic challenges and advises HOLD due to regional risks.

Popular Inc. (BPOP) operates in economically challenged Puerto Rico, facing high net charge-offs but maintaining profitability through improved credit scores and strong noninterest income. The bank shows operational efficiency, prudent capital management, consistent dividends, and ongoing share repurchases. Despite attractive valuation, its exposure to Puerto Rico's weak economy and income volatility leads to a HOLD rating, reflecting caution amid regional risks.