Exhibit 99.1

Popular, Inc. Reports Net income of $27.5 million for the Quarter Ended September 30, 2011

• Pre-tax income of $33.1 million, vs. pre-tax income of $72.6 million in Q2
• Net income per common share of $0.03
• Gross revenues of $492 million, vs. $499 million in Q2
• Net benefit of approximately $4.7 million, before tax, recorded on the sale of commercial and construction loans with a book value of $128 million; the majority were in non-accruing status at the transaction date
• Gain of $8.1 million on the sale of investment securities available-for-sale
• Provision for loan losses increased by $32.0 million, or 22% vs. Q2; allowance for loan losses stood at 3.35% of non-covered loans held-in-portfolio; net charge-offs increased $3.5 million
• Total operating expenses remained stable
• Strong capital ratios
• Completed transaction to buy $130 million credit-card portfolio

SAN JUAN, Puerto Rico--Wednesday, October 19, 2011--Popular, Inc. (“the Corporation” or “Popular”) (NASDAQ: BPOP) reported net income of $27.5 million for the quarter ended September 30, 2011, compared with net income of $110.7 million for the quarter ended June 30, 2011, and net income of $494.1 million for the quarter ended September 30, 2010. The results for the second quarter of 2011 included a tax benefit of approximately $59.6 million related to the timing of loan charge-offs for tax purposes, while the results for the third quarter of 2010 included a $640.8 million gain recognized in connection with the sale of 51% interest in EVERTEC.

Mr. Richard L. Carrión, Chairman of the Board and Chief Executive Officer, said, “With our third consecutive profitable quarter, we continue to make progress as we drive Popular on a path to greater profitability. In Puerto Rico, where we have a uniquely valuable franchise, the credit environment remains uneven. While we have seen improvement in some of our portfolios, we increased our provisions for the commercial portfolio. In the U.S., we exceeded our expectations with another quarter of steady net interest income and lower funding costs in the midst of improving credit conditions.”

Mr. Carrión added, “Our unique market position is reflected in our ability to produce stable top line revenue throughout the credit cycle. We are continuing to de-risk our balance sheet and reduce our expense base, among other measures, to position Popular for improved performance in 2012. We remain focused on reducing our elevated credit costs, which is the key to unlocking the enormous value potential of this organization.”

Sale of Construction and Commercial Real Estate Loans

On September 29, 2011, Banco Popular de Puerto Rico (“BPPR”), the Corporation’s principal banking subsidiary, completed the sale of construction and commercial real estate loans with an unpaid principal balance and net book value of approximately $358 million and $128 million, respectively. The majority of the loans sold were in non-performing status at the transaction date. The purchaser was a newly created joint venture (the “Joint Venture”), which is majority owned by a limited liability company created by Goldman Sachs & Co., Caribbean Property Group LLC and East Rock Capital LLC.

During the third quarter of 2011, the Corporation recognized a positive impact to revenues of approximately $4.7 million before tax as a result of the sale. This included approximately $17.4 million classified as gain on sale of loans, partially offset by $12.7 million of provision for loan losses related to write-downs taken on certain loans that were reclassified from held-in-portfolio to held-for-sale during the third quarter of 2011.

As consideration for the sale of the loans, BPPR received approximately $48 million in cash, a note for approximately $86 million as seller financing and a 24.9% equity interest in the new Joint Venture. BPPR extended a $68.5 million advance facility to the Joint Venture to cover unfunded commitments and other costs to complete the construction projects and a $20 million working capital line of credit to fund certain expenses of the Joint Venture.

Earnings Highlights – Third Quarter 2011 compared to Second Quarter 2011

Refer to the accompanying “Financial Supplement to Third Quarter 2011 Earnings Release” for detailed financial information and key performance ratios.

Net interest income

• The decrease in net interest income of $5.2 million for the third quarter of 2011 was mainly a combination of lower volume and yields on loans and investment securities, partially offset by lower levels and funding costs of deposits and borrowings. The net interest margin decreased from 4.48% for the second quarter of 2011 to 4.45% for the third quarter of 2011. Refer to Tables D and E for detailed information on average financial condition balances and an analysis of yield / rates by main categories.
• The principal variance in interest income on loans was a reduction in the interest from covered loans by $10.1 million. During the second quarter of this year the Corporation received full payment for one of the pools accounted for pursuant to ASC 310-30. This payment was not expected as part of the pool’s original cash flow estimate. As a result, the reassessment of cash flows performed in the second quarter yielded a one-time benefit of approximately $10.9 million as the remaining unamortized discount was recognized into earnings. Other factors contributing to this variance include a lower discount accretion on covered loans (revolving facilities) accounted for pursuant to ASC Subtopic 310-20 by $5.6 million, partially offset by the effect of the reassessment of expected cash flows for those loans accounted for pursuant to ASC 310-30.

• The cost on deposits declined by 9 basis points. This decrease was achieved in BPPR due to continued progress in lowering deposit costs, and in Banco Popular North America (“BPNA”), facilitated by a lower rate environment and the shrinking of BPNA’s balance sheet.
• The decrease in interest expense on borrowings of $5.1 million was principally related to a reduction in interest expense associated with the note issued to the FDIC as part of the Westernbank-assisted transaction by approximately $5.8 million. The reduction was due to lower levels as the FDIC note balance averaged $1.1 billion for the third quarter of 2011, compared with $1.9 billion for the second quarter of 2011.

Provision for loan losses

• The increase in the provision for loan losses of $32.0 million was the result of an increase in the provision for non-covered loans by $55.0 million, partially offset by a decrease in the provision for loan losses on the covered loans by $23.0 million. The increase related to non-covered loans was principally associated with the BPPR reportable segment’s commercial and residential mortgage loan portfolios since weak economic conditions in Puerto Rico continue to adversely impact these portfolios. In addition, $12.7 million of the increase was associated with write-downs on commercial loans transferred from the held-in-portfolio to the held-for-sale category during the third quarter of 2011. These loans were part of the sale executed in September 2011. The decrease in the provision for loan losses on the covered loan portfolio was impacted by the reassessment of expected credit deterioration considered in the quarterly recasting of cash flows, which had a greater impact in the second quarter as it relates to covered loans accounted for under ASC 310-30.

Non-interest income

• FDIC loss share expense amounting to $5.4 million was recognized in the third quarter of 2011, compared with FDIC loss share income of $38.7 million for the second quarter of 2011. The unfavorable variance in these quarterly results was mainly due to:

• A reduction of $28.8 million in the quarterly accretion of the FDIC loss share indemnification asset. The decrease resulted from the evaluation of expected cash flows of the loan portfolio completed in June and updated in September that resulted in reduced losses expected to be collected from the FDIC. This reduction in losses also results in an improvement in interest income due to an increase in the accretable yield on the covered loans. The impact in interest income is taken throughout the life of the loans whereas the life of the indemnification asset is shorter given the timeframe of the FDIC loss sharing agreements.

• A decrease of $18.4 million related to a reduction in the 80% mirror accounting of the provision for loan losses. As indicated previously, the provision for loan losses on the covered loans amounted to $25.6 million in the third quarter of 2011, compared with $48.6 million in the second quarter of 2011.
• Partially offset by a reduction of $4.5 million in the 80% mirror accounting of loans accounted under ASC Subtopic 310-20 due to lower discount accretion on covered loans.

• Net gain on sale of loans, including valuation adjustments on loans held-for-sale, amounted to $20.3 million for the third quarter of 2011, compared with a net loss of $12.8 million for the second quarter of 2011. The gain for the quarter was primarily related to the non-performing construction and commercial loan sale transaction. As indicated previously, the gain on sale of approximately $17.4 million on this transaction was partially offset by the $12.7 million provision for loan losses recorded on certain loans reclassified to held-for-sale during the third quarter. The net loss for the quarter ended June 30, 2011 was influenced by unfavorable fair value adjustments related to disbursements made to customers on the unfunded commitments of construction and commercial loans held-for-sale.
• Gains on the sale of investment securities available-for-sale amounting to $8.1 million were recognized during the third quarter of 2011, principally from the sale of approximately $234 million in FHLB notes. With this sale, the Corporation monetized part of the unrealized gain in its investment portfolio and will use the proceeds to prepay part of the FDIC note without prepayment penalty, thereby generating favorable economics.
• Other service fees increased by $4.4 million mostly due to greater fees derived from the sale and administration of investment products, particularly commissions on the sale of a bond issuance, and insurance fees. Also, there were increases in credit card fees related to interchange income due to higher transaction volume and higher fees related to the recently acquired Citibank’s Puerto Rico American Airlines Advantage credit card portfolio. Refer to Table F in the Financial Supplement for a breakdown of other service fees.

Operating expenses

• Operating expenses in total remained stable. Business promotion expense reflected an increase of $3.3 million, principally due to earned points related to the new credit card program offered since August 2011 and advertising expenses. There were other increases in operating expenses including an unfavorable variance in the category of reserves for unfunded credit commitments. These unfavorable variances were partially offset by decreases in other real estate expenses, FDIC deposit insurance expense and other taxes. Refer to Table B which provides a breakdown of operating expenses by main categories.

Income taxes

• The variance in income tax was principally the result of the impact of the private ruling and closing agreement entered into by the Corporation with the Puerto Rico Department of the Treasury during the second quarter of 2011, which resulted in a tax benefit for the Corporation of $59.6 million during that quarter. The tax benefit related to the timing of loan charge-offs for tax purposes.

Credit Quality

• Excluding covered loans, the allowance for loan losses to loans held-in-portfolio ratio stood at 3.35% at September 30, 2011, almost unchanged when compared to 3.34% at June 30, 2011. The general and specific reserves amounted to $634 million and $58 million, respectively, as of September 30, 2011, compared with $670 million and $20 million, respectively, as of June 30, 2011. The reduction in the general component of the allowance for loan losses on the non-covered loans for the quarter ended September 30, 2011 was mostly attributable to improved credit performance and lower volume of commercial loans in the BPNA reportable segment. Commercial loans held-in-portfolio, excluding covered loans, declined by $147 million from June 30, 2011 to September 30, 2011, principally at the BPNA reportable segment. The increase in the specific reserve was principally associated to higher reserve requirements on the mortgage and commercial loan portfolios of the BPPR reportable segment. Refer to Tables H through M for detailed credit quality information, including the activity in the allowance for loan losses.

• Non-performing loans, excluding loans held-for-sale and covered loans, increased $107 million, or 7%, from June 30, 2011 to September 30, 2011. Refer to Table I for the activity in non-performing commercial and construction loans, excluding covered loans and loans held-for-sale.
• Net charge-offs for the quarter ended September 30, 2011 increased by $3.5 million, compared with the second quarter of 2011. Excluding covered loans, net charge-offs for the third quarter of 2011 increased by $1.8 million, compared with the quarter ended June 30, 2011.

BPPR Reportable Segment

• Excluding the impact of the provision for loan losses for the covered loan portfolio, the provision for loan losses for non-covered loans of the BPPR reportable segment totaled $131.1 million for the third quarter of 2011, an increase of $60.4 million, from $70.7 million for the second quarter of 2011. The increase was principally driven by higher net charge-offs, delinquencies and loan modifications of the commercial and residential mortgage loans portfolios at the BPPR reportable segment, in addition to the negative impact of approximately $12.7 million in the provision for loan losses related to commercial loans transferred from the held-in-portfolio to held-for-sale category during the third quarter of 2011.
• Annualized net charge-offs to average non-covered loans held-in-portfolio ratio for the BPPR reportable segment increased 27 basis points, from 2.22% for the quarter ended June 30, 2011 to 2.49% for the quarter ended September 30, 2011. The increase was principally driven by net charge-offs of the commercial loan portfolio, prompted by impaired commercial loans accounted for as collateral dependent loans.
• Non-performing loans of the BPPR reportable segment, excluding loans held-for-sale and covered loans, increased from $1.2 billion at June 30, 2011 to $1.3 billion at September 30, 2011, mainly due to the commercial, construction and residential mortgage loan portfolios. The weak economic conditions in Puerto Rico continue to adversely impact these portfolios.
• Refer to Table L for information on the allowance for loan losses of the Corporation’s Puerto Rico operations. The increase in the allowance for loan losses as of September 30, 2011 reflects an increase in the loss trend in the commercial loan portfolio, and higher specific reserve requirements mainly in the commercial and mortgage loan portfolios. The latter was driven by a higher level of mortgage loans restructured under loss mitigation programs.

BPNA Reportable Segment

• The provision for loan losses for the BPNA reportable segment amounted to $19.6 million or 43.2% of net charge-offs for the third quarter of 2011, compared with $25.0 million or 46.1% of net charge-offs for the second quarter of 2011. The decrease in the provision for loan losses was principally driven by improvements in credit performance and lower loan balances, primarily in the commercial loan portfolio.

• Annualized net charge-offs to average loans held-in-portfolio ratio for the BPNA reportable segment declined 45 basis points, from 3.45% for the quarter ended June 30, 2011 to 3.00% for the quarter ended September 30, 2011. Net charge-offs of the commercial and construction loan portfolios continue to reflect a decreasing trend in the Corporation’s U.S. Mainland operations.

• Non-performing loans held-in-portfolio of the BPNA reportable segment amounted to $395 million as of September 30, 2011 compared with $415 million as of June 30, 2011. Non-performing commercial, construction and consumer loans at the BPNA reportable segment reflected a decreasing trend, as the Corporation’s U.S. Mainland operations have continued to reflect certain signs of stabilization. Non-performing mortgage loans increased by $5 million from June 30, 2011 in part due to loans restructured under loss mitigation programs.
• Refer to Table M for information on the allowance for loan losses of the BPNA reportable segment. The decline in the allowance for loan losses as of September 30, 2011 reflects declining losses in the commercial loan portfolio, partially offset by an increase in the specific reserve for mortgage loans restructured under loss mitigation programs.

Financial Condition Highlights – September 30, 2011 compared to June 30, 2011

• Total assets amounted to $38.2 billion as of September 30, 2011, compared with $39.0 billion as of June 30, 2011. Refer to Table C for a detailed presentation of the Corporation’s Consolidated Statements of Condition.

• Total investment securities, including trading securities and other investment securities, totaled $5.8 billion as of September 30, 2011, compared with $6.5 billion as of June 30, 2011. Investment securities available-for-sale declined $163 million due to the previously mentioned sale of FHLB notes. Trading securities declined as well by $513 million, principally due to the sale of mortgage-backed securities. The FHLB notes and mortgage-backed securities’ trades executed in late September settled in October 2011, thus for accounting purposes such securities were classified as trade receivables in the “other assets” caption in the consolidated statement of condition as of September 30, 2011. The sale of mortgage-backed securities was made to take advantage of favorable market conditions for the securities held in the trading portfolio and the proceeds were subsequently used to repay short-term debt.
• Total loans held-in-portfolio declined $88 million from June 30, 2011 to September 30, 2011. Refer to Table G for a breakdown by loan categories. Commercial and construction non-covered loans held-in-portfolio decreased $183 million from June 30, 2011 to September 30, 2011, which consisted of a decline of $196 million at the BPNA reportable segment, partially offset by an increase of $13 million in the BPPR reportable segment. The decline in the commercial loan portfolio was offset by mortgage loan activity in Puerto Rico as well as the impact of the credit card portfolio acquired from Citibank in early August 2011.
• Loans held-for-sale declined $140 million from June 30, 2011 to September 30, 2011, principally due to the sale of the commercial and construction loan portfolio.
• The FDIC loss share asset amounted to $1.8 billion as of September 30, 2011, compared with $2.4 billion as of June 30, 2011. The decline was principally due to claims receivables outstanding as of June 30, 2011 of approximately $545 million which were collected from the FDIC in July 2011.
• Deposits totaled $28.0 billion as of September 30, 2011 and June 30, 2011. Table G presents a breakdown of deposits by major categories.
• The Corporation’s borrowings amounted to $5.3 billion as of September 30, 2011, compared with $6.1 billion as of June 30, 2011. The decrease in borrowings was mostly related to a reduction in principal of $803 million on the note issued to the FDIC. This note has a carrying amount of $714 million as of September 30, 2011. This decrease was due to the impact of payments of principal from loan and claim collections as well as prepayments during the quarter.
• Stockholders’ equity remained stable at $4.0 billion as of September 30, 2011. Refer to Table A for capital ratios and Table N for Non-GAAP reconciliations. The Corporation continues to be well-capitalized. Capital ratios as of September 30, 2011 improved compared with June 30, 2011 due to a reduction on assets, higher net deferred tax asset included without limitation in regulatory capital and internal capital generation.

Forward-Looking Statements

The information included in this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and involve certain risks and uncertainties that may cause actual results to differ materially from those expressed in forward-looking statements. Factors that might cause such a difference include, but are not limited to (i) the rate of growth in the economy and employment levels, as well as general business and economic conditions; (ii) changes in interest rates, as well as the magnitude of such changes; (iii) the fiscal and monetary policies of the federal government and its agencies; (iv) changes in federal bank regulatory and supervisory policies, including required levels of capital; (v) the relative strength or weakness of the consumer and commercial credit sectors and of the real estate markets in Puerto Rico and the other markets in which borrowers are located; (vi) the performance of the stock and bond markets; (vii) competition in the financial services industry; (viii) possible legislative, tax or regulatory changes; (ix) the impact of the Dodd-Frank Act on our businesses, business practice and cost of operations; and (x) additional Federal Deposit Insurance Corporation assessments. For a discussion of such factors and certain risks and uncertainties to which the Corporation is subject, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2010, as well as its filings with the U.S. Securities and Exchange Commission. Other than to the extent required by applicable law, including the requirements of applicable securities laws, the Corporation assumes no obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

An electronic version of this press release can be found at the Corporation’s website, www.popular.com.

CONTACTS:
Popular, Inc.
Investor Relations:
Jorge A. Junquera, 787-754-1685
Chief Financial Officer
Senior Executive Vice President
or
Media Relations:
Teruca Rullán, 787-281-5170 or 917-679-3596/mobile
Senior Vice President
Corporate Communications