Recent Developments
The Bank posted strong earnings for the third quarter of 2022, as it continues to demonstrate resilient non-interest income in its chosen operating jurisdictions, while remaining well positioned for the rising interest rate environment. Butterfield remains asset sensitive, which it expects will continue to benefit net income during this period of rising market interest rates. The Bank regularly monitors and reviews credit quality in its loan book and, at this point in the cycle, it has not seen any significant signs of credit stress. A number of mortgage customers have moved their facilities from floating rate to fixed rate over the past six months, helping to manage their future cash flow. As anticipated, Butterfield saw deposit levels decrease due to clients investing their funds and the strengthening of the US dollar.
During the quarter, the Bank announced the acquisition of the Credit Suisse trust business in Singapore, Guernsey and the Bahamas. This strategic transaction will position Butterfield as one of the largest private client trust companies in Singapore. Importantly, this acquisition allows Butterfield to review and selectively acquire each individual trust client in accordance with its risk appetite, without the requirement to purchase legal entities. The Bank looks forward to welcoming its new clients and staff as it integrates the business during the first half of next year.
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 November 28, 2022 to shareholders of record on November 14, 2022.
* IN US DOLLARS (With comparisons to the quarter-ended 30 September 2021)
** Please refer to the “Reconciliation of Non-GAAP Financial Measures” in our published third quarter 2022 results
Capital Ratios
COMMON EQUITY TIER 1
31 Dec 2021 17.6%
TOTAL CAPITAL RATIO
31 Dec 2021 21.2%
Credit Ratings
Short-Term K1
Long-Term Senior A+
Short-Term P2
Long-Term Senior A3
Short-Term A2
Long-Term Senior BBB+