Butterfield reports net income of $216.3m in 2024
Butterfield Bank has reported net income of $216.3 million for the 2024 fiscal year.
The bank said that result compared with prior year net income of $225.5 million.
Core net income was $218.9 million, down from $231.5 million in 2023.
The return on average common equity was 21.4 per cent, which compares with 24.2 per cent in the prior year.
The core return on average tangible common equity was 24 per cent, which compares with 27 per cent in 2023.
Michael Collins, Butterfield’s chairman and chief executive, said: “During 2024, we continued to deliver strong returns through our diversified fee income, low credit risk, treasury/agency investment portfolio, and effective capital management.
“We had an excellent finish to the year with seasonally higher non-interest income, lower funding costs, and a steady net interest margin driving a higher tangible book value per share.
“The positive performance in the last quarter can also be attributed to the seasonal strength of both Cayman tourism and consumer credit card spend.”
Mr Collins added: “As we position the bank for sustainable growth in 2025, we continue to manage expenses by expanding our Halifax service centre while investing in the technology required to provide an enhanced client experience.
“Butterfield is committed to increasing shareholder value by returning excess capital, improving our operating efficiency, and exploring offshore bank and fee business acquisitions.”
Net income for the fourth quarter was $59.6 million, up from $52.7 million in the previous quarter and $53.5 million in the fourth quarter of 2023.
Core net income for the quarter was $59.6 million, which compares with $52.8 million in the previous quarter and $55.3 million in the fourth quarter of 2023.
Net interest income was $88.6 million, which compares with NII of $88.1 million in the previous quarter and $86.9 million in the fourth quarter of 2023.
Non-interest income was $63.2 million, an increase of $7.2 million from $56 million in the previous quarter and $3.2 million higher than $60 million in the fourth quarter of 2023.
Period-end deposit balances were $12.7 billion, an increase of 6.3 per cent compared with $12 billion at year-end 2023, primarily due to deposit increases in Bermuda and the Channel Islands.
Average deposits were $12.5 billion in the fourth quarter.
Tangible book value per share at the end of the quarter was $21.70, slightly lower than $21.90 per share at the end of the prior quarter and an increase over $19.29 at the end of the fourth quarter of 2023.
The board declared a quarterly dividend of $0.44 per common share to be paid on March 10 to shareholders of record on February 24.
During the fourth quarter, Butterfield repurchased 1.3 million common shares under the bank’s existing share repurchase programme.
The current total regulatory capital ratio at year-end 2024 was 25.8 per cent as calculated under Basel III, which compares with 25.4 per cent at year-end 2023.
Butterfield said both of these ratios remain conservatively above the minimum Basel III regulatory requirements applicable to the bank.
• For the full earnings release, see Related Media
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