Very strong competitive position in Puerto Rico High regulatory capital ratios, though returns to shareholders could increase Substantially improved funding and liquidity ratios Weak loan performance with persistently high nonperforming loans Large exposures to loan types that could experience higher losses due to economic weakness resulting from the COVID-19 pandemic High geographic concentration in Puerto Rico, which has been plagued by infrastructure issues, fiscal austerity, and outmigration S&P Global Ratings' outlook on Popular Inc. is stable, reflecting the view that the rating is unlikely to change within the next 12 months. We expect the company's profitability to decline significantly in 2020, given higher loan loss provisions amid the global economic slowdown and pressures on the company's net interest margin (NIM)
