Continuing its aggressive capital return strategy, Butterfield Bank delivered strong fourth-quarter and full-year earnings for fiscal 2025, reporting higher net income.

For the full year ended December 31, net income rose 6.9 per cent to $231.9 million, or $5.47 per diluted share, up from $216.3 million, or $4.71 per share, in 2024. Core net income, a non-GAAP measure that adjusts for certain items, also climbed to $237.5 million, or $5.60 per share, compared with $218.9 million, or $4.77 per share in the previous year.

Butterfield’s return on average common equity held steady at 21.7 per cent, slightly higher than last year’s 21.4 per cent, while its core return on average tangible common equity improved to 24.2 per cent. Efficiency metrics reflected disciplined expense control, with both the standard and core efficiency ratios improving year-on-year, the bank reported.

Michael Collins, Butterfield's chairman and chief executive, said: “Throughout 2025 Butterfield delivered strong financial results supported by disciplined strategic execution. We achieved year-on-year net income growth, with core net income per diluted share increasing 17.4 per cent compared to 2024.

“Our relationship-focused banking and private trust businesses increased non-interest income, while net interest income benefited from lower deposit costs and higher-yielding asset redeployment.

“Butterfield remained focused on expense management, while completing a number of value-added projects that have advanced our technology platform.

“Capital management remains integral to Butterfield’s strategy, with an increase in the quarterly dividend as well as share repurchases driving a combined payout ratio approaching 100 per cent of net income for 2025.

“In addition, we remain focused on growth through private trust and bank acquisitions in order to achieve scale in island markets that we understand.”

The bank’s fourth-quarter performance also showed gains, with net and core net income of $63.8 million — about $1.54 per diluted share — up from $61.1 million in the third quarter and well above the fourth quarter of 2024. Return on common equity for the quarter was 22.7 per cent.

Butterfield’s net interest income for the quarter was $92.6 million, marginally higher than in 2024, supported by a lower cost of deposits and strategic redeployment into higher-yielding securities. Non-interest income grew on the back of stronger banking revenue, higher card-related fees and expanded trust services, offset by increased non-interest expenses.

The bank maintained a strong capital return focus in 2025, returning value to shareholders through aggregate dividends of $1.88 per share and the repurchase of 3.5 million shares for about $146.7 million, driving combined payouts close to the year’s total net income. Butterfield also authorised a new share repurchase programme for up to three million shares.

• For more on Butterfield Bank’s earnings report, see Related Media

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