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A year after Hurricane Maria swept through Puerto Rico causing widespread destruction, the island's banks are flush with capital and their share prices are soaring. They are seeking M&A deals, though opportunities to buy are limited. Bankers say that regulators expect them to maintain higher capital levels than their mainland peers -- a hangover from years of financial strife.
The three main banks on the island -- Popular Inc., First BanCorp. and OFG Bancorp -- have seen their stock prices rise by between 56% and 96% in the year through Nov. 13, even as the SNL Bank and Thrift Index has fallen more than 6% during the same timeframe. First BanCorp. and OFG are among the 10 best performers in terms of total returns for the U.S. banking industry in the year-to-date.
Street Talk is a podcast hosted by S&P GlobalMarket Intelligence. In this episode, Lindsey White discusses a recent visit to Puerto Rico, where she spokewith bankers, regulators and members of the community about the aftermath of Hurricane Maria,how banks responded and the market opportunities that lie ahead. Listen on SoundCloud and iTunes.
Further reading: Hurricane Maria: 1 year on, Puerto Rican bankers recall a 'desperate time'
The group started the year trading at distressed levels, hampered by investor fears of a government debt crisis and a massive hurricane that destroyed much of the island's infrastructure. But over the past year the group sharply reduced its exposure to Puerto Rico's debt, the government has made progress...