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UPDATE 1-Popular posts wider Q1 loss in preliminary results
April 12, 2010 / 9:53 PM / 8 years ago

UPDATE 1-Popular posts wider Q1 loss in preliminary results

* Sees marginal decline in net interest income

* Offers depositary shares to raise $900 mln

* Shares down as much as 8 pct in extended trade

April 12 (Reuters) - Popular Inc (BPOP.O), the parent of Banco Popular, reported a seventh-straight quarterly loss as it works around its credit problems to navigate the economic downturn.

Shares of the company fell 8 percent to $2.80 in extended trading, after closing at $3.05 Monday on Nasdaq.

In a preliminary report, the company said net loss for the first quarter was $85 million, compared with $52.5 million in the year-ago period.

For the first quarter, Puerto Rico’s largest bank sees net interest income of about $269 million, compared with $272.5 million last year.

Provision for loan losses is expected to be about $240 million, compared with $372.5 million in the year-ago period.

Separately, the bank said it has commenced a public offering of depositary shares, each representing an interest in a share of its series D preferred stock, to raise $900 million.

The company said it intends to use net proceeds for general corporate purposes, including positioning Popular to participate in FDIC-assisted deals. (Reporting by Abhinav Sharma in Bangalore; Editing by Ratul Ray Chaudhuri)

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