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Popular cuts
dividends
Oscar Cucurullo
San Juan, Puerto Rico, USA
Popular, Inc. (Stock: BPOP) announced today a
series of actions that build on previous events
to provide greater financial flexibility to
weather the current economic recession both in
the United States and Puerto Rico.
The Board of Directors reduced the quarterly cash
dividend to $0.02 cent per common share. The
Board believes that increasing the capital base
is a prudent action in face of the prospect of
worsening economic conditions. The reduction in
the cash dividend will generate an additional $68
million of capital a year.
In addition, Popular also continues to adopt
aggressive cost-reducing measures that are
expected to generate savings of approximated $34
million annually. A hiring and salary freeze
across the Corporation continues in effect.
Popular had $3.27 billion in capital, which is
$630 million above the ‘well
capitalized’ minimum threshold, and more
than $880 million in loan loss reserves, as of
Dec. 31, 2008.
"The economic picture is likely to get worse
before it gets better, but we are equipped to
withstand this painful recession," said
Popular, Inc. CEO and Chairman Richard Carrión.
"We have implemented aggressive measures to
reduce costs. We will leverage our franchise in
Puerto Rico, which produced net income of $239
million in 2008 amid a rough environment, and
continue restructuring our U.S. operations.
Without question, we have some difficult months
ahead. Everyone in this business knows that, but
we are well capitalized and will certainly come
out stronger from this. |
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