Butterfield net income rises 4.1%

The Bank of Butterfield’s third quarter net income rose 4.1% to $52.7 million as the Bermuda-based bank benefited from a rise in fee income.

The bank said return on average common equity for the third quarter was 20.3% compared to 20.6% in the same period in 2023 while the efficiency ratio fell to 60.1% from 64.1% in the third quarter of 2023.

Michael Collins, Chairman and Chief Executive Officer, said: “Butterfield delivered strong results in the third quarter of 2024 through improved efficiency, stable non-interest income, and focused capital management. 

“We have a high fee/income ratio and will continue to increase the proportion of fee revenue over time through acquisitions, while returning excess capital to our shareholders. Economic conditions in Bermuda, the Cayman Islands, and the Channel Islands remain favourable, with strong demand and contributions from both international business and tourism. 

“As we enter a period of easing financial conditions, we expect to see better affordability for borrowing customers and a general pick-up in business activity."

Net interest income for the third quarter of 2024 was $88.1 million, down $2.1 million from $90.2 million in the third quarter of 2023 due to higher deposit costs, slightly offset by higher yielding interest earning assets and a larger balance sheet.

Net interest margin (“NIM”) for the third quarter of 2024 was 2.61%, down 15 basis points from 2.76% in the third quarter of 2023 due to a mix shift to term deposits and lower treasury yields, partially offset by increased yields on investments.

Non-interest income for the third quarter of 2024 was $56 million, $4 million higher than in the third quarter of 2023 due to increases in asset management fees, as well as increased trust income from assets acquired from Credit Suisse.

Period end deposit balances were $12.7 billion, an increase of 6.3% compared to $12.0 billion at December 31, 2023, primarily due to deposit increases in the Channel Islands, as well as a strengthened British pound. 

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