Economic Downturn Risk: A significant slowdown or recession in the economies of Puerto Rico or the US mainland could lead to increased loan defaults, reduced demand for financial products, and lower asset valuations, negatively impacting profitability.

Interest Rate Fluctuation Risk: Changes in market interest rates could adversely affect Popular's net interest margin, as the repricing of assets and liabilities may not occur symmetrically, impacting earnings.

Credit Quality Deterioration Risk: Popular faces the risk that borrowers may default on their loan obligations, leading to higher loan loss provisions and charge-offs, particularly if economic conditions worsen or specific loan portfolios underperform.