Recent Developments
Butterfield’s first quarter 2024 results continue to benefit from our leading market positions in highly regarded international financial centers. Butterfield delivered strong profitability with capital efficient non-interest earnings, a well-structured balance sheet and thoughtful capital management.
The Bank reported net income of $53.4 million and core net income* of $55.0 million. The Bank reported a return on common equity of 21.5% and a core return on average tangible common equity* of 24.5% for the first quarter of 2024 with earnings and core earnings per diluted share* of $1.13 and $1.17, respectively.
The net interest margin was 2.68% in the first quarter, a decrease of 5 basis points from the previous quarter due to a lower volume of interest earning assets, continued mix-shift to higher yielding term deposit products and day-count.
The Bank’s tangible common equity ratio of 6.7% has held steady and continues to be at the conservative end of its targeted range of between 6% and 6.5%. As a result, the Bank increased activity in its share repurchase program with repurchases of 1.2 million common shares in the first quarter. The Board again declared a quarterly dividend of $0.44 per common share to be paid on May 21, 2024 to shareholders of record on May 7, 2024.
During the first quarter of 2024, Simon Des-Etages, General Counsel and Group Chief Legal Officer joined Butterfield following the planned retirement of Shaun Morris. Simon has over 30 years of legal experience in London, New York and Bermuda, with the majority of his practice in the banking sector. We welcome Simon and believe that Butterfield should benefit from his extensive experience advising banks on legal and regulatory matters.
Capital Ratios
COMMON EQUITY TIER 1
31 Dec 2023 23.0%
TOTAL CAPITAL RATIO
31 Dec 2023 25.4%
Credit Ratings
Short-Term K1
Long-Term Senior A+
Short-Term P2
Long-Term Senior A3
Short-Term A2
Long-Term Senior BBB+