FirstBank Puerto Rico's (FirstBank) ratings reflect the bank's geographically concentrated franchise in Puerto Rico, its higher consumer credit risk profile, and the low level of retail funding. Net loan charge-offs have been concentrated in the consumer loan portfolio, reflecting the bank's auto lending and credit card businesses. The bank's loan credit risk profile has greatly improved over the past several years, with a reduced exposure to higher risk consumer loans and a more diversified loan portfolio, with new business focused on residential mortgages and commercial lending. Although profitability dynamics have significantly changed with the remixing of the loan portfolio, core profitability measures remain adequate for the rating category and reflect the risk profile of the loan portfolio. Core profitability measures
