Butterfield posts promising annual results

Thursday 15 February 2024

Butterfield has published its financial results for the quarter and year ended December 31, 2023, confirming an $11 million dollar increase in its annual net income compared to the previous year.

Net income for the year ended December 31, 2023 was $225.5 million, or $4.58 per diluted common share, compared to $214.0 million, or $4.29 per diluted common share, for the year ended December 31, 2022.

Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented: “Butterfield's strong performance in 2023 was driven by active balance sheet management and an enhanced focus on long-term client relationships. 

"Our conservative and profitable business model, characterised by limited credit risk, a high fee income ratio, and strong cash liquidity, was validated during the systemic challenges faced by U.S. regional banks last year. Butterfield also benefited from a resilient deposit base diversified across jurisdictions, sectors, and currencies. 

"During the fourth quarter, we upgraded our core banking system in the Cayman Islands, which was well received, and completed onboarding the final tranche of the Credit Suisse trust clients. In December, we announced the approval of a new share repurchase program for 2024, with an authorization to purchase up to 3.5 million common shares.

"After a successful year, Butterfield is well positioned to continue generating strong risk adjusted returns and excess capital while providing market leading products and financial services." 

Financial highlights for the fourth quarter of 2023:

• Net income of $53.5 million, or $1.11 per share, and core net income¹ of $55.3 million, or $1.15 per share
• Return on average common equity of 22.5% and core return on average tangible common equity¹ of 25.4%
• Net interest margin of 2.73%, cost of deposits of 1.72%
• Board declares dividend for the quarter ended December 31, 2023 of $0.44 per share
• Approved new share repurchase authorization for up to 3.5 million common shares
• Final close of acquisition of trust assets from Credit Suisse

Financial highlights for the full year 2023:

• Net income of $225.5 million, or $4.58 per share, and core net income¹ of $231.5 million, or $4.70 per share
• Return on average common equity of 24.2%, and core return on average tangible common equity¹ of 27.0% 
• Net interest margin of 2.80%, cost of deposits of 1.40% 
• Active capital management with aggregate annual dividends of $1.76 per share in addition to the share repurchase program