Butterfield Bank has reported net income for the third quarter of 2024 of $52.7 million, or $1.16 per diluted common share.

That compares with net income of $50.6 million, or $1.09 per diluted common share, for the previous quarter and $48.7 million, or $0.99 per diluted common share, for the third quarter of 2023.

The bank said net income was up in the third quarter versus the prior quarter primarily due to higher net interest income and lower non-interest expense, as well as a modest increase in non-interest income.

Core net income for the quarter was $52.8 million, or $1.16 per diluted common share, compared with $51.4 million, or $1.11 per diluted common share, for the previous quarter and $57 million, or $1.16 per diluted common share, for the third quarter of 2023.

The return on average common equity for the quarter was 20.3 per cent compared with 20.7 per cent for the previous quarter and 20.6 per cent for the third quarter of 2023.

Michael Collins, chairman and chief executive, said: “Butterfield delivered strong results in the third quarter of 2024 through improved efficiency, stable non-interest income, and focused capital management.

“We have a high fee/income ratio and will continue to increase the proportion of fee revenue over time through acquisitions, while returning excess capital to our shareholders.”

He added: “Economic conditions in Bermuda, the Cayman Islands and the Channel Islands remain favourable, with strong demand and contributions from both international business and tourism. As we enter a period of easing financial conditions, we expect to see better affordability for borrowing customers and a general pick-up in business activity.”

Non-interest income for the quarter was $56 million, an increase of $0.4 million from $55.6 million in the previous quarter and $4 million higher than the $52 million in the third quarter of 2023.

Period end deposit balances were $12.7 billion, an increase of 6.3 per cent compared with $12 billion at December 31, 2023, primarily due to deposit increases in the Channel Islands as well as a strengthened British pound.

The bank said average deposits were $12.4 billion in the quarter ended September 30, in line with the prior quarter.

Tangible book value per share improved by $1.87, or 9.3 per cent, in the quarter to $21.90 per share.

The board declared a quarterly dividend of $0.44 per common share to be paid on November 19 to shareholders of record on November 5.

During the third quarter, Butterfield repurchased a million common shares under the bank’s existing share repurchase programme.

The total regulatory capital ratio as at September 30 was 24.3 per cent as calculated under Basel III, compared with 25.4 per cent as at December 31, 2023.

Butterfield said both of these ratios remain conservatively above the minimum Basel III regulatory requirements applicable to the bank.