Butterfield Bank’s board of directors has authorised the repurchase of up to 2.5 million of its shares over the next 15 months.

Michael Collins, the bank’s chairman and chief executive officer, said: “Deploying capital to repurchase shares provides the bank an effective means of augmenting shareholder return.

“It reflects our belief that Butterfield shares offer good value in the market given our confidence in our continued ability to generate strong returns and realise our growth ambitions.”

Butterfield shares were trading at around $35 this morning.

The new share repurchase programme follows the completion of the bank’s previous programme, under which Butterfield repurchased the full authorised amount of one million shares at an average price of $40.15 per share.