Popular Inc, Puerto Rico's largest bank, on Friday posted a larger-than-expected decline in second-quarter profit, hurt by rising interest rates and a writedown. The company's shares fell nearly 3 percent in morning trading.
Net income for the San Juan-based company, parent of Banco Popular, fell 26 percent to $97.4 million, or 34 cents per share, from $132.4 million, or 48 cents, a year earlier.
Analysts polled by Reuters Estimates had expected profit of 37 cents per share.
Popular, like many banks, has been hurt by rising short-term interest rates, which have increased funding costs even as the longer-term rates at which banks invest have held steady. Meanwhile, a banking crisis stemming from disagreement over how to value mortgage securities has hurt Puerto Rico's banking industry.