Recent Developments
The first quarter of 2023 was a strong start to the year. Butterfield continues to have a highly liquid and well-funded balance sheet with a diverse client base across multiple jurisdictions, sectors,and currencies.
Average deposits were $12.8 billion in the first quarter, $0.3 billion higher than the prior quarter and period end deposit balances decreased by $0.6 billion to $12.3 billion versus the prior quarter.
The change in deposits is the result of normal commercial activity. Butterfield’s low risk density balance sheet of 33.5% continues to reflect the regulatory capital efficiency of the balance sheet with
a low risk weighted residential mortgage loan portfolio, which represents 70% of the total loan assets.
Butterfield reported a return on average common equity of 28.0% and a core return on average tangible common equity* of 30.5% for the first quarter of 2023, with earnings and core earnings per share of $1.24.
Net interest income continued to rise in the quarter, while the seasonally higher fee income in the prior quarter resulted in lower normalized non-interest income levels quarter-on-quarter. Tangible book value per common share* improved by 8.8% to $17.32 in the first quarter, helped by lower total net unrealized losses on the available-for-sale portfolio, and net income.
The Bank maintained its balanced capital return policy. The Board again declared a quarterly dividend of $0.44 per common share to be paid on May 22, 2023 to shareholders of record on May 8, 2023. The Bank also recommenced the repurchase of common shares at a modest level, repurchasing 144,929 shares during the quarter.
* IN US DOLLARS (With comparisons to the year ended 31 March 2022)
** Please refer to the “Reconciliation of Non-GAAP Financial Measures” in our published first quarter 2023 results.
Capital Ratios
COMMON EQUITY TIER 1
31 Dec 2022 20.3%
TOTAL CAPITAL RATIO
31 Dec 2022 24.1%
Credit Ratings
Short-Term K1
Long-Term Senior A+
Short-Term P2
Long-Term Senior A3
Short-Term A2
Long-Term Senior BBB+