First BanCorp vs BankUnited

This page compares First BanCorp and BankUnited, examining their business models, financial performance, and market context in a neutral, accessible way. It provides an overview of strategy, operations, and industry standing to help readers understand the landscape without making recommendations. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

FBP

Metric

BKU

$3.32B

Market Cap

$3.49B

9.45%

Potential Profit

-9.50%

Buy

Analyst Rating

Hold

Investment Analysis

First BanCorp

FBP

Pros

First BanCorp has demonstrated strong capital ratios, with CET1 at 16.61% and total capital at 17.87%, indicating robust financial resilience.
The bank reported record net interest income and a net interest margin of 4.56%, supported by core loan growth of 6% quarter-over-quarter annualized.
First BanCorp maintains a diversified business model with operations across Puerto Rico, the US mainland, and the Virgin Islands, reducing geographic concentration risk.

Considerations

Earnings growth has slowed recently, with net income down 1.37% year-on-year in 2024, reflecting margin pressures and competitive challenges.
The bank's profitability is highly sensitive to interest rate changes, which could impact net interest margins in a volatile rate environment.
A significant portion of revenue comes from Puerto Rico, exposing the company to local economic and regulatory risks.

BankUnited

BKU

Pros

BankUnited has a strong balance sheet with high capital adequacy ratios, supporting its ability to withstand economic downturns.
The bank has consistently delivered solid returns on equity, reflecting efficient operations and disciplined asset management.
BankUnited benefits from a diversified loan portfolio and a growing deposit base, enhancing its funding stability.

Considerations

The bank faces increasing competition in its core markets, which could pressure loan spreads and profitability.
BankUnited's exposure to commercial real estate lending introduces potential credit risk if property markets weaken.
Recent regulatory scrutiny and compliance costs have increased, affecting operational efficiency and margins.

About The Companies

First BanCorp (FBP)

First BanCorp is a financial holding company operating primarily through its main subsidiary, FirstBank Puerto Rico. It serves a diverse clientele, including small to mid-sized businesses and individual consumers. The company's operations are organised into several segments: Commercial and Corporate Banking, Consumer (Retail) Banking, and Mortgage Banking. It also manages Treasury and Investments. Geographically, First BanCorp has a significant presence not only in Puerto Rico but also through its United States Operations on the mainland and its Virgin Islands Operations, which cover both the U.S. and British Virgin Islands. This structure allows it to offer a comprehensive range of financial services across key Caribbean and U.S. markets. As with any investment, the value can go down as well as up, and returns are not guaranteed. This information is for educational purposes and not financial advice.

BankUnited (BKU)

BankUnited, Inc. is the holding company for BankUnited, a US-based bank with a significant presence in key markets. It offers a comprehensive range of banking services to both commercial and consumer clients. Operations are centred in Florida, the New York metropolitan area, and Dallas, Texas, with a wholesale product office in Atlanta. The bank's core activities include commercial and real estate lending, residential mortgages, and consumer loans. On the deposit side, it provides traditional products like checking and savings accounts, money market accounts, and certificates of deposit. BankUnited also supports businesses with a suite of treasury, payments, and cash management services. This broad offering is delivered through its physical banking centres as well as national and online platforms, giving it a flexible approach to reaching customers. For potential investors, it's a company with a clear focus on major US regional economies.

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First BanCorp vs BankUnited

Comparison Snapshot

Investment Analysis

First BanCorp

Pros

Considerations

BankUnited

Pros

Considerations

About The Companies

Buy FBP or BKU in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

What does this page compare, and why should I read it as a beginner?

What is ‘capital adequacy’, and why is it important in a bank comparison?

How should I interpret net interest income and net interest margin in banks?

What does diversified geographic exposure mean for a bank’s risk profile?

How should I weigh a bank’s growth versus its profitability indicators?

Why might regulatory costs affect a bank’s margins, and how is this shown here?

What does ‘economic exposure’ to a market imply for these banks?

How can competition in core markets influence a bank’s performance?

What other metrics should I explore when comparing banks beyond what’s shown here?

Is there a formal recommendation or financial advice implied by this page?

Comparison Snapshot

About The Companies