It took me some time to get comfortable with the very weak Puerto Rican economy and a dilutive capital injection. But it looks like the credit indicators (NPLs, NPAs, 30-89) are finally starting to relent and capital ratios are improving.
Dominant position in Puerto Rico facing a weakened competition after the crisis. Already profitable with a PTPP probably in the $760 million range (too many one-offs), that could make it a 1.3-1.4% ROA bank in a more normal environment.
At 0.7x TBV and 3x PTPP it's very cheap.
Common equity per share $39.35
Tangible common book value per common share (non-GAAP) $32.55
Tangible common equity to tangible assets (non-GAAP) 9.38%
I am looking at this bank right now. It seems to me that as they aggressively get rid of the NPA, the PPTP is dropping as well. If we use the PPTP of the Q2 2013 data multiplied by 4, the one year PPTP would be around 590 million, which makes the current price/PPTP ratio to be around 4.1, which is less cheap than a few months ago.
So at current price, maybe it is a potential 2x? The other way to measure the upside is to use its current total asset multiplied by your expected 1.3% ROA. Then we get to 480million per year net income in a normalized environment. Am I missing something here?
I can't find any valuable info regarding its TARP, except one slide of its presentation saying that the TARP has been dealt in a way that is most shareholder friendly. Do you have any info?