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Investor Presentaiton

$ in Millions Investment Portfolio $ in millions • Conservative investment portfolio, with the majority invested in short to intermediate U.S. Treasuries, which are tax exempt for P.R. corporations. The portfolio duration, including cash, is 2.2 years The unrealized loss in the AFS portfolio increased by $231 million, driven by the MBS portfolio The market value of the HTM portfolio decreased to $8.0 billion, $230 million lower than the book value Description Money Markets (Cash at Federal Reserve) U.S. T-bills AFS U.S. Treasuries Agency MBS/CMO Total AFS HTM U.S. Treasuries² Other Total HTM 25.000 20,000 15,000 10,000 5,000 bep-2 Dec-2 Z-JPIA z-dac Doc 2 Cumulative Maturities: US Treasury & T-Bills Jun-2 sen-2 Dec-2 Mara Jun-26 Sep-2 Dec-26 Mar-2 Jun-27 Sep-27 Total Trading Total Portfolio Q3 2023 Variance to Q2 2023 Amortized Cost % of Portfolio Book Value Gain / (Loss) Maturity/ WAL 1 Amortized Gain / Cost (Loss) $6,384 20.0% $6,384 $0 ($2,204) $0 3,886 7,827 7,279 12.2% 3,886 23.4% 18.2% 5,799 0 0.1 1,032 (0) 7,443 (384) 1.4 (716) 44 (1,479) 7.5 (200) (274) 18,991 53.8% 17,128 (1,864) 3.2 117 (231) 8,931 74 25.8% 8,229 (702) 3.4 (152) 44 9,005 0.2% 26.1% 74 15.5 (2) 8,302 (702) 3.5 (154) 44 31 0.1% 31 0 2.5 2 0 $34,410 100.0% $31,845 ($2,566) 2.6 ($2,239) ($186) Maturity Profile (Excluding Cash at the Federal Reserve) 30% 29% 25% 20% 16% 15% 16% 15% 10% 6% 5% 3% 0% 0-3 yrs 4-5 yrs 1% 1% 6-7 yrs U.S. T-bills U.S. Treasuries - AFS U.S. Treasuries - HTM 1 1 Maturity expressed in years; In the case of mortgage-backed securities and CMO's, it represents the weighted average life of the bonds assuming market consensus prepayment speeds Agency MBS/CMO 8-10 yrs 13% 2 The book value includes $702 million of net unrealized loss which remains in Accumulated Other Comprehensive Income (AOCI) related to the securities transferred from available-for-sale securities portfolio to the held-to-maturity securities portfolio. At the time of transfer, the securities had an unrealized loss of $873 million, which will be amortized (back into capital) throughout their remaining life at a rate of approximately 5% per quarter through 2026. Differences due to rounding 00 8
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