Popular, Inc. (NASDAQ:BPOP) Q4 2023 Earnings Call Transcript

Carlos Vazquez: That’s a better question. I – a generic answer, for us, a normal curve is the thing we wish for. Whether we are going to get a normal curve in next 18 months, 24 months, I don’t know, Thomas. But generically, a normal curve will always make the business of banking easier.

Thomas Leddy: Okay. Got it. Fair enough. Thank you for taking my questions and congratulations Carlos on your retirement.

Carlos Vazquez: Thanks Thomas.

Operator: Our next question is a follow-up from Timur Braziler of Wells Fargo. Timur, please go ahead.

Timur Braziler: Hi. Thanks for the follow-up. Just looking at capital repatriation, can you provide us an update or a reminder as to when capital plan submission conversation is with your regulators and what we could potentially expect from a timing standpoint in reengaging a buyback?

Carlos Vazquez: Yes. I have mentioned the second half of the year. Historically, we have done our stress test in the third quarter, and that has normally being an important part of our discussions. But I think we have also mentioned a number of times that we are rethinking how we manage our capital return activities. We have also mentioned that in all probability, we will gravitate to a format that’s more similar to what other banks do, meaning that we will probably not be announcing a buyback in immediate doing an ASR, but rather be announcing an authorization for a buyback to execute over a period of time. That’s the kind of changes we are talking about. In conjunction with those changes, we may also change other parts of how we do capital planning.

So, while historically, the – our stress test in the third quarter has been an important contributor even that is something that we may change depending on things along. So, it’s on the process, Timur. Our best guess right now is that we will, number one, get the clarity we are looking for in the three factors we mentioned rate, economy and regulator by the summer, and then that will allow us to reengage on that front.

Timur Braziler: Great. Thanks for the color.

Operator: With that, I will hand back to Ignacio for closing remarks.

Ignacio Alvarez: Thank you everyone for joining us and for your questions. We look forward to updating you on our first quarter results in April, and we will have a hard day leading the pack there. So, thank you very much.

Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your lines.