Butterfield Bank will keep an eye on the development of cryptocurrency as more American companies explore its value.

Analysts at the bank’s third-quarter earnings call sought its position on crypto from Michael Collins, chairman and chief executive.

“I think we describe ourselves as a slow follower, watching closely,” Mr Collins replied.

He added: “We’re not getting a lot of pressure from clients in terms of custody for digital assets. Stablecoin is obviously something we’re watching closely. I think the approach we would take is to piggyback off our correspondent banks.

“Bank of New York obviously is heavily analysing and participating in this sector of the market and we would piggyback off that, which actually provides us with a lot of safety and cover. It’s not something that we would take the lead on in any sense.”

With a far more favourable regulatory status and increased client demand, major American banks have increased interest in cryptocurrencies by expanding services such as custody and trading. After years of a cautious approach, federal regulators have settled on a more permissive stance towards digital assets, taking the lead from the White House.

Banking Exchange, which bills itself as an information resource for bankers, cites bitcoin service provider, River, which claims that more than half of the 25 largest banks in the United States are now either considering or actively rolling out crypto-related products.

Earnings conference calls allow public companies to communicate with analysts and investors, and typically take place quarterly after the release of earnings, during which they can share information beyond mandatory filings.

Butterfield has just released its third-quarter results, exceeding the market’s revenue expectations as it reported net income of $61.1 million. Increased banking fees and effective cost management drove Butterfield’s strong performance.

Mr Collins said during the earnings call: “Our financial performance was supported by solid net interest income, disciplined capital management and a conservative and stable balance sheet. We delivered higher non-interest revenue and improved efficiency across the organisation, underpinning our continued profitability and growth.”

A discussion of expense management included that more of the bank’s back office is being moved to Halifax and some back-office space has been consolidated in the Channel Islands.

In addition, there were some non-core expenses in the quarter related to senior executive retirements.

The bank also adopted expense initiatives to stave off inflationary pressures in the system even as it continued to invest in infrastructure.

Michael Schrum, president and chief financial officer, pointed out: “We did a cloud migration of our core banking systems last year and we’re just catching up on the patch sets of those. While that’s truncated, the expense run rate is a little bit higher because we’re using software as a service. We’re gradually exiting some of the older or out-of-date systems that we’ve been using. I think, broadly speaking, it was an improvement this quarter.”

Bank executives pointed to an upswing in tourism as useful to the company’s success.

Jody Feldman, managing director, Butterfield Bermuda, said the local business environment remained stable with continued expansion of international business and the local economy showing signs of growth.

He said: “The government is forecasting its first budget surplus in over two decades, and with corporate income tax introduced this year, there are expectations this will generate meaningful revenue that could help ease cost of living and business pressures while reducing sovereign debt over time.

“Overall, the outlook is positive for Bermuda’s fiscal position with solid performance and growth continuing in the international business sector, particularly in reinsurance.

Tourism in Bermuda had a good 2025 season, supported by improved hotel occupancy rates. Average daily rates were up 10 per cent in August year to date, with occupancy levels remaining stable. Air arrivals are steady and visitor expenditure is up 2 per cent despite a lower overall room inventory.

“Looking ahead, airlift capacity and hotel inventory are expected to benefit from ongoing foreign direct investments in the island’s hospitality infrastructure,” said Mr Feldman.

He continued: “The 593-room Fairmont Southampton is projected to reopen in summer 2026, while Grotto Bay Beach Resort has announced expansion plans. Additionally, the announced complete redevelopment of Elbow Beach Resort, expected to commence in 2026, reflects overall investor confidence in the long-term prospects for Bermuda's hospitality sector.

“Bermuda will also gain visibility from major international events, including the PGA Tour Butterfield Bermuda Championship and Sail GP, a high-speed global professional sailing league set to return in May 2026, further reinforcing the island’s position as a premier tourism and event destination.”