Overview of Banks in Puerto Rico
According to the report of Moody’s Investors Services, we can clearly tell that the approach of Puerto Rico’s banking system has stabilized from being negative earlier. It happened because few banks have improved their reserves, capitalization, and core funding. And others have improved their financial buffers amid the economic recession that Puerto Rico has been suffering from since the year 2004.
As per Moody, it’s expected that the effect of recession would get reduced in the years 2017 and 2018 which will allow few banks to absorb credit losses. It is believed because the banks Moody’s Investors Services has rated have improved their funding and liquidity over the years.
Structure of Banks in Puerto Rico
The most important thing about Puerto Rico’s banking system is that it is part of the US banking system; however, there are few exceptions in regards to tax laws.
The whole financial sector of Puerto Rico is being controlled and regulated by the Office of the Commissioner of Financial Institutions of Puerto Rico.
The purpose of the authority is to ensure the safety and security of the financial sector and also so that the banks and other financial institutions adhere to the laws, rules, and regulations of the territory.
List of Top 10 Banks in Puerto Rico
- FirstBank
- Banco Popular
- Oriental Financial Group
- Scotiabank of Puerto Rico
- Banco Santander
- Caribe Federal Credit Union
- Citibank NA (Puerto Rico)
- FEMBi Mortgage
- Pentagon Federal Credit Union
- JetStream Federal Credit Union
Let’s look at each one of them in detail –
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#1. FirstBank:
This bank was established in the year 1948, around 69 years ago. It is a subsidiary of First Bancorp. Its head-quarter is located in San Juan. In the year 2016, the total assets acquired by FirstBank were US $12 billion and in the same year, the net profit of the bank was US $93 million. It was previously known as First Federal Savings Bank and it has changed its name to what it is right now in November 1994. The focus of this bank is on retail banking, corporate banking, and commercial banking.
#2. Banco Popular:
This bank was founded in the year 1893, around 124 years ago. Its head-quarter is located in Hato Rey. In the year 2016, the total assets acquired by this bank were US $38 billion and in the same year, the net profit of the bank was the US $358 million. It manages around 171 branches and 635 ATMs in Puerto Rico as of 31st December 2016. The focus of this bank is on retail banking and commercial banking.
#3. Oriental Financial Group:
It was established in the year 1964, around 53 years ago. Its head-quarter is located in San Juan. In the year 2016, the total assets acquired by this group were US $6.5 billion and in the same year, the net profit of the group was the US $45 million. This group offers a whole gamut of financial services across Puerto Rico. It has four subsidiaries – Oriental Bank, Oriental Insurance Inc., Caribbean Pension Consultants Inc. (CPC), and Oriental Financial Services Corp.
#4. Scotiabank of Puerto Rico:
It was founded in the year 1910, around 107 years ago. Its head-quarter is located in Hato Rey. Scotiabank is one of the largest banks in Puerto Rico. In the year 2016, the total assets acquired by this bank were the US $896 billion and in the same year, the net profit of the bank was the US $7368 million. It acts as the subsidiary of The Bank of Nova Scotia, Canada. The focus of this bank is on commercial banking, foreign currency exchange service, and corporate financing.
#5. Banco Santander:
It was established in the year 1976, around 41 years ago. It is a subsidiary of Santander Bancorp. Its head-quarter is located in San Juan. In the year 2016, the total assets acquired by the bank were the US $5 billion and in the same year, the net profit of the bank was the US $15 million. It was previously known as Banco De Santander-Puerto Rico and it has changed its name to what it is right now in November 1989. The focus of this bank is on personal and commercial banking.
#6. Caribe Federal Credit Union:
This bank was founded in the year 1951, around 66 years ago. Caribe Federal Credit Union is one of the most prominent non-profit financial organizations in Puerto Rico. It was organized under the Federal Credit Union Act for the purpose of serving Federal employees in Puerto Rico. In the year 2016, the total assets acquired by the bank were US $336 million and in the same year, the net profit of the bank was the US $2 million.
#7. Citibank NA (Puerto Rico):
It is one of the oldest foreign banks in Puerto Rico. It was established in the year 1918, around 99 years ago. Its head-quarter is located in Hato Rey. It is the subsidiary of Citibank National Association. Citibank NA is the first North American bank to be established. The focus of Citibank NA (Puerto Rico) is to provide foundation building investments and to offer sophisticated financial products to the locals.
#8. FEMBi Mortgage:
It was established in the year 1997, around 20 years ago. Its head-quarter is located in San Juan. FEMBi Mortgage offers a wide range of mortgage services in Puerto Rico and throughout South Florida. FEMBi has a strong 125 people team that provides customized services to the local customers. Their strength is multiple financing options like standard conventional loans, VA loans, FHA loans, etc. and they also offer quick turnarounds.
#9. Pentagon Federal Credit Union:
This is one of the most significant credit unions in the United States. It has a presence over 50 locations and Puerto Rico is one of the locations where Pentagon Federal Credit Union has a branch. As per the last report in 2017, the total assets acquired by Pentagon Federal Credit Union were the US $23 billion. In the same year, the number of members was 1.6 million. It was founded in the year 1935. It serves air force, army, coast guard, department of homeland security, etc.
#10. JetStream Federal Credit Union:
This is also another credit union which is non-for-profit. Its head-quarter is situated in San Juan, Puerto Rico. In the year 2016, the total assets acquired by the bank were the US $187 million and in the same year, the net profit of the bank was the US $2.5 million. It provides a whole gamut of services to its members. The membership is open to anyone who lives and works in San Juan, Puerto Rico.
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