Butterfield Bank has reported second-quarter net income of $53.3 million, or $1.25 per share, and core net income of $53.7 million, or $1.26 per share.

Net income was down half a million compared with the previous quarter. However, net income was up compared with $50.6 million, or $1.09 per diluted common share, for the second quarter of 2024. Profit rose approximately 5.34 per cent year-over-year, beating analyst expectations.

The bank attributed this primarily to a volume-driven decrease in foreign exchange revenue and higher allowance for credit losses. This was offset by decreases in non-interest expenses owing to lower non-income tax and other non-interest expenses.

Michael Collins, the chairman and chief executive of Butterfield, called the Q2 results strong, saying they underscored the consistency of the company’s high risk-adjusted returns, supported by disciplined risk management and high-quality client relationships.

He said: “Butterfield’s proven business model and sustained through-cycle profitability gives our board the confidence to increase the quarterly cash dividend rate by 14 per cent and authorise a new share repurchase programme.”

He added that as Butterfield rebalances its capital return strategy, the bank continues to evaluate selective, fee-based acquisition opportunities.

The bank has also appointed a new independent director, Andrew Henton, a UK and offshore financial services sector expert with extensive experience in the Channel Islands.

Mr Collins said Mr Henton brought significant experience in governance, private banking, private equity and investment banking. “I look forward to working with Andrew and am confident that he will help to further Butterfield’s strategic growth and value creation,” he said.

The bank’s latest financial statements also show a return on average common equity for Q2 2025 of 20.3 per cent, compared with 20.9 per cent for the previous quarter and 20.7 per cent for the second quarter of 2024.

The core return on average tangible common equity for the second quarter of 2025 was 22.3 per cent, compared with 24.2 per cent for the previous quarter and 23.3 per cent for the second quarter of 2024.

The efficiency ratio for the second quarter of 2025 was 61.3 per cent, compared with 61.8 per cent for the previous quarter and 62.4 per cent for the second quarter of 2024.

The core efficiency ratio for Q2 2025 was 61.1 per cent compared with 59.8 per cent in the previous quarter and 61.8 per cent for the second quarter of 2024.

Net interest income for the second quarter of 2025 was $89.4 million, a marginal increase over NII of $89.3 million in the previous quarter and $2 million higher compared with $87.4 million in Q2 2024.

NII was higher during the second quarter of 2025 compared with the second quarter of 2024, primarily owing to a lower cost of deposits from the prior quarter’s central bank rate cuts, higher yield on investments offset by lower yields on loan and treasury assets after the aforementioned central bank rate cuts.