Popular, Inc. (BPOP): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Popular, Inc. is positioning itself in the competitive financial landscape as we head into late 2025. Honestly, their strategy isn't a wild departure; it's a sharp, focused execution of a classic banking model centered on its core Puerto Rico and key US mainland markets. We're talking about a careful balance: maintaining that essential, deep-rooted physical branch network while aggressively pushing a digital platform for everyday transactions. The real story, though, is how they manage their Net Interest Margin (NIM) and price loans in that unique, higher-yield environment. Dive in below, and I'll break down the Product, Place, Promotion, and Price levers they are pulling right now to drive shareholder value.

Popular, Inc. (BPOP) - Marketing Mix: Product

Full-service commercial and retail banking.

Popular, Inc. operates as the leading financial institution in Puerto Rico by both assets and deposits, ranking among the top 50 U.S. bank holding companies by assets. The core retail and commercial banking services are delivered through its principal subsidiary, Banco Popular de Puerto Rico, and Popular Bank in the mainland U.S.. Deposit products include savings, NOW, money market, and other interest-bearing demand accounts, alongside non-interest bearing demand deposits and certificates of deposit. As of the third quarter of 2025, total deposit balances stood at $66.5 billion.

Mortgage and auto loan origination and servicing.

The product suite includes residential mortgage loans and consumer loans such as automobile loans. Popular Bank announced the discontinuation of mortgage loan originations in its U.S. operations at the end of the third quarter of 2025. In the first quarter of 2025, non-performing loans (NPLs) in the Banco Popular de Puerto Rico segment showed decreases, with mortgage loans NPLs down by $9.9 million and auto loans NPLs down by $10.0 million compared to the previous quarter.

Investment and insurance products through subsidiaries.

The company offers investment and insurance products through specialized subsidiaries. Popular's broker-dealer subsidiary saw its assets under management increase by $905 million to reach $11.7 billion in the third quarter of 2025. This represented an 8% growth since the fourth quarter of 2024. For context, in 2024, the broker dealer subsidiary assets under management grew by 32% to $10.8 billion.

Digital banking platform and mobile app for transactions.

Popular, Inc. continues to advance its digital transformation efforts and invest in digital and payments solutions. The institution leverages digital channels to deliver convenient banking experiences across its markets. Specific metrics for mobile app adoption or digital transaction volume for late 2025 were not explicitly detailed in the latest reports.

Treasury management and corporate lending for businesses.

The product offering for businesses includes commercial and industrial loans, commercial multi-family loans, commercial real estate loans, business lines of credit, and treasury management services. Management revised the expectation for consolidated loan growth in 2025 to be between 4% and 5%. Loan growth in the third quarter of 2025 was $502 million quarter-over-quarter, primarily driven by commercial and construction loans at both the Puerto Rico and U.S. operations. Total loans held in portfolio reached $38.7 billion as of September 30, 2025.

The scale of core lending and deposit products as of the third quarter of 2025 is summarized below:

Popular, Inc. (BPOP) - Marketing Mix: Place

The distribution strategy for Popular, Inc. centers on maintaining a dominant physical presence in its primary market, Puerto Rico, while supporting its mainland U.S. operations through targeted physical locations and extensive digital channels.

Extensive physical branch network primarily in Puerto Rico

Banco Popular de Puerto Rico (BPPR), the principal subsidiary, is the leading financial institution in Puerto Rico based on both assets and deposits. This physical network is foundational to its market leadership. As of early 2025 reports, Popular, Inc. had surpassed two million unique customers in Puerto Rico. The distribution footprint in Puerto Rico and the U.S. and British Virgin Islands is managed by BPPR, which offers retail and commercial banking services.

• Leading financial institution in Puerto Rico by assets and deposits.
• Serves over 2,000,000 unique customers in Puerto Rico.
• BPPR offers services across Puerto Rico and the Virgin Islands.

US mainland presence through Popular Bank in New York, New Jersey, and Florida

Popular Bank, the New York-chartered subsidiary, executes the distribution strategy for the mainland U.S. by focusing on key metropolitan areas. This presence is concentrated in three states, providing essential face-to-face service points for retail, mortgage, and commercial banking customers. The physical network is intentionally focused rather than broad across the entire U.S. mainland.

Here's a quick look at the branch distribution for Popular Bank in the U.S. mainland as of early 2025:

ATMs and point-of-sale terminals across core markets

To supplement the physical branch network, Popular Bank leverages a vast, low-cost ATM network. Customers have access to in-branch ATMs at all 40 U.S. mainland locations. Furthermore, the distribution of cash access is significantly extended through a partnership providing access to over 55,000 ATMs worldwide via the Allpoint® Network, ensuring surcharge-free withdrawals for customers on the road.

Robust digital distribution for account access and services

Digital channels form a critical, high-reach component of the Place strategy, offering 24/7 digital banking solutions. This digital infrastructure supports the overall deposit base, which stood at $67.2 billion as of June 30, 2025. The Net Interest Margin (NIM) for the second quarter of 2025 was reported at 3.49%, reflecting the efficiency of the overall funding structure, which includes digital channels.

The digital platform is essential for managing the substantial deposit flows. For instance, in the first quarter of 2025, the average balance of total deposits increased by $1.6 billion from the prior quarter, largely driven by a $2.0 billion increase in interest-bearing deposits, much of which is facilitated digitally.

• Offers 24/7 digital banking solutions.
• Total deposit balances reached $67.2 billion (Q2 2025).
• Net Interest Margin (NIM) was 3.49% (Q2 2025).

Strategic focus on the Puerto Rican economy's recovery and growth

The distribution of Popular, Inc.'s services is intrinsically linked to the economic activity in Puerto Rico. The strategy involves retaining and managing liquidity within the ecosystem. In 2024, the company noted that a significant portion of customer deposits were transferred to its broker-dealer subsidiary, which saw its assets under management increase by 32% to $10.8 billion. This action demonstrates a strategy to place customer liquidity into higher-yield instruments, supporting the broader financial infrastructure of the region.

Popular, Inc. (BPOP) - Marketing Mix: Promotion

Promotion for Popular, Inc. centers on reinforcing its leading position in Puerto Rico and expanding its U.S. mainland presence through targeted communication that emphasizes local roots and digital convenience. The strategy blends traditional community presence with modern digital outreach.

Community-focused advertising emphasizing local commitment

Popular, Inc. explicitly ties its promotional messaging to its corporate purpose of Putting People at the Center of Progress. This commitment is tangibly demonstrated through ongoing support for local initiatives. During 2024, the Corporation continued its practice of sponsoring educational activities and community service and mentoring programs. This localized approach is crucial for maintaining brand trust in its primary market. The July 2025 announcement regarding capital actions reaffirmed the commitment to continue investing in our franchise and support our clients and communities.

The promotional narrative often highlights the bank's deep history, having been founded in 1893, positioning it as an integral part of the Puerto Rican economic fabric.

Digital marketing and social media campaigns to drive app adoption

A significant portion of promotional investment targets digital channel modernization to enhance customer experience. This focus is driven by the need to meet evolving customer expectations for seamless digital interactions. In fiscal year 2024, Popular, Inc. allocated $50 million to enhance its digital infrastructure. This investment directly supported promotional goals, leading to a 20% increase in mobile banking usage throughout 2024. Furthermore, personalized banking services, a key component of digital promotion, resulted in a 15% increase in customer satisfaction as of April 2025.

As of late 2025, strategic promotion efforts are directed toward specific digital rollouts:

• Driving adoption of the digital loan origination rollout in Puerto Rico and the US Virgin Islands.
• Promoting the expansion of digital deposit products in the US Mainland.
• Highlighting improvements to commercial cash management and credit delivery systems.

Relationship banking model for commercial clients

For commercial clients, promotion is less about mass advertising and more about demonstrating capability and stability through relationship management and performance metrics. The focus is on conveying strength and commitment to local business growth. The Q3 2025 results showed robust loan growth, with loans held in portfolio increasing by $502.0 million quarter-over-quarter, driven by increases across commercial and construction portfolios in both BPPR and Popular U.S. operations. The bank's ability to manage large commercial exposures, such as the $158.3 million Puerto Rico telecom C&I credit noted in Q3 2025, serves as an implicit promotional message of handling complex client needs.

Sponsorships and local events in Puerto Rico and key US cities

Tangible, high-visibility local events form a core part of the brand's promotional footprint, particularly in Puerto Rico. A major recent example cited was the benefit the tourism and hospitality sector received from the Bad Bunny 31-night concert residency at the Coliseum in San Juan, which is located next to the Popular Center complex. This event was leveraged to feature Puerto Rico as a destination, aligning the bank's presence with major cultural moments. The bank maintains a physical presence in key U.S. markets, with Popular Bank branches located in New York, New Jersey, and Florida, supporting local commercial and retail promotion there.

Direct mail and email campaigns for new product cross-selling

While specific 2025 metrics for direct mail volume or email campaign response rates are not public, the strategy involves using direct channels to promote new offerings and cross-sell to the existing customer base. This is supported by the overall capital return strategy, which signals financial health to existing customers. The July 2025 announcement of a new share repurchase program of up to $500 million, in addition to the existing 2024 program, is a strong financial signal that underpins all customer communications. The quarterly dividend was also increased from $0.70 to $0.75 per share, commencing in Q4 2025.

The financial commitment to growth and shareholder returns provides the backdrop for cross-selling promotions:

Popular, Inc. (BPOP) - Marketing Mix: Price

Price for Popular, Inc. (BPOP) is fundamentally determined by the spread between what it earns on its assets (loans and securities) and what it pays for its liabilities (deposits and borrowings), managed through its Net Interest Margin (NIM).

Net Interest Margin (NIM) management as a key profitability metric.

Popular, Inc. focuses intently on NIM expansion as a core pricing strategy. For the third quarter of 2025, the consolidated GAAP Net Interest Margin (NIM) reached 3.51%, an increase from 3.49% in the second quarter of 2025. On a fully taxable equivalent (FTE) basis, the NIM was even stronger at 3.90% in Q3 2025. This expansion was driven by redeploying cash into higher-yielding U.S. Treasury securities and maintaining discipline on deposit pricing. Management continues to project consolidated Net Interest Income (NII) growth in the range of 10% to 11% for the full year 2025.

The segment performance shows a clear difference in pricing power and risk profile:

Competitive interest rates on commercial and consumer loans.

Popular, Inc. is actively pricing loans to capture growth, revising its consolidated loan growth target for 2025 to 4% to 5%, up from the prior guidance of 3% to 5%. Total loans held in portfolio grew by $502 million, or 1.3%, to reach $38.7 billion in the third quarter of 2025. The pricing for consumer credit reflects a tiered structure based on collateral and term. For an unsecured personal loan, the Annual Percentage Rate (APR) can range from a low of 6.49% APR (for a 12-month term with an eligible discount) up to a high of 29.99% APR. Secured Loans have a base rate starting at a fixed 6.49% APR. For partial collateral loans, the unsecured portion APR starts at 6.99%.

Service fees for checking accounts, wire transfers, and ATM usage.

Fee income is a secondary component of pricing, with specific charges for deposit services. For Cuentas Popular checking accounts, the pricing structure is balance-dependent:

• $3 monthly service fee if the daily balance is $250 or more in the statement period.
• $5 monthly service fee if the daily balance is less than $250 in the statement period.

Other fee-related pricing includes an APR of 17.99% for the ATH Móvil line of credit. Conversely, services like Easy Mobile Deposit and Retiro Móvil (cash withdrawal at Banco Popular ATMs using the mobile app) are priced at free for eligible customers. Fee income has shown volatility; for instance, in Q2 2025, credit card and debit card fees increased by $2.4 million and $1.5 million, respectively, due to higher purchase volumes.

Deposit rates (CDs, savings) structured to manage funding costs.

Managing the cost of deposits is critical to NIM performance. In Q1 2025, the total cost of interest-bearing deposits for Popular U.S. decreased by 15 basis points to 3.48%. The cost of market-linked P.R. public interest-bearing deposits saw a significant reduction of 38 basis points in the same period. However, the cost of new or renewed retail time deposits and commercial interest-bearing deposits at BPPR partially offset the benefit from the repricing of public deposits. As of Q2 2025, Puerto Rico Public deposits ended the quarter at $20.9 billion, with management expecting them to remain in the $18 billion to $20 billion range.

Pricing strategies reflecting the higher-risk, higher-yield environment in Puerto Rico.

The higher relative NIM in the Puerto Rico segment (BPPR at 3.71% in Q3 2025 versus Popular U.S. at 2.94%) reflects the pricing strategy that accounts for the local economic structure and associated credit risk. The guidance for net charge-offs (NCOs) for 2025 was set between 70 to 90 basis points, though actual annualized NCOs to average loans in Q3 2025 was 0.60%. Popular, Inc. is actively pricing its lending to support growth in the island, leveraging commercial roll-up strategies and M&A activity, which are supported by local tax incentives. The bank maintains a strong capital position, with a Common Equity Tier 1 ratio of 15.79% in Q3 2025.