763901--3/2/2009--POPULAR

related topics

{condition, economic, financial}

{stock, price, share}

{competitive, industry, competition}

{loss, insurance, financial}

{capital, credit, financial}

{loan, real, estate}

{regulation, change, law}

{provision, law, control}

{personnel, key, retain}

{regulation, government, change}

{tax, income, asset}

{stock, price, operating}

Current levels of market volatility are unprecedented. Current market developments have adversely affected the Corporation s industry, business and results of operations. The soundness of other financial institutions could adversely affect the Corporation. A prolonged economic slowdown, a continuing decline in the real estate market in the U.S. mainland, and ongoing disruptions in the capital markets have harmed and could continue to harm the results of operations of Popular, Inc. Financial results are constantly exposed to market risk. The hedging transactions that the Corporation enters into may not be effective in managing the exposure to market risk, including interest rate risk. Reductions in the Corporation s credit ratings or those of any of its subsidiaries would increase the cost of borrowing funds and make the Corporation s ability to raise new funds or renew maturing debt more difficult. The Corporation is subject to default risk in its loan portfolio. The Corporation may have more credit risk and higher credit losses due to its construction and commercial loans portfolios. Increased reserves may be required due to changes in collateral valuations The Corporation operates in a highly regulated environment and may be adversely affected by changes in federal and local laws and regulations. Competition with other financial institutions could adversely affect the Corporation s profitability. Rating downgrades on the Government of Puerto Rico s debt obligations could affect the value of the Corporation s loans to the Government and its portfolio of Puerto Rico Government securities. The Corporation s share price may continue to fluctuate. The agreements with the U.S. Treasury impose restrictions and obligations on the Corporation that limit the ability to increase dividends, repurchase Common Stock or preferred stock and access the equity capital markets. You may not receive dividends on the Common Stock. The Corporation income tax provision and other tax liabilities may be insufficient if taxing authorities are successful in asserting tax positions that are contrary to the Corporation s position. Certain of the provisions contained in the Corporation s Certificate of Incorporation have the effect of making it more difficult to change the Board of Directors, and may make the Board of Directors less responsive to stockholder control. Goodwill impairment could have a material adverse effect on the Corporation s financial condition and future results of operations The Corporation s business could suffer if it is unable to attract, retain and motivate skilled senior leaders

Full 10-K form ▸

763901--3/2/2009--POPULAR_INC