Butterfield Bank beat analysts’ expectations for the third quarter of 2025, posting stronger profits and improved margins on the back of lower deposit costs and higher fee income.

The offshore banking group reported net income of $61.1 million, or $1.46 per share, up from $52.7 million, or $1.16 per share, a year earlier. On a core basis, earnings rose to $1.51 per share, comfortably above Wall Street forecasts of about $1.31.

Revenue climbed to roughly $153.9 million, surpassing consensus estimates of $148.8 million and marking a solid rebound from the slight revenue miss recorded last quarter.

The bank’s chairman and chief executive, Michael Collins, said the quarter’s results “demonstrate the resilience of our business model as we improved efficiency across the organisation”.

“We delivered higher banking and foreign exchange fees, while our net interest income and margin improved as a result of lower deposit costs and a conservative asset mix,” Mr Collins said. “Our proactive capital management continued to deliver strong shareholder returns through a quarterly cash dividend and share repurchases.”

The bank’s net interest margin widened to 2.73 per cent, up nine basis points from the prior quarter, as deposit costs declined amid central bank rate cuts. Net interest income rose to $92.7 million, while non-interest income climbed 7 per cent to $61.2 million, reflecting higher card volumes and foreign exchange activity.

Operating efficiency also improved, with the core efficiency ratio dropping to 56.2 per cent from 61.1 per cent last quarter.

Butterfield declared a quarterly dividend of 50 cents per share and repurchased 0.7 million shares for $30.3 million. The bank’s return on average common equity rose to 22.5 per cent, while its total regulatory capital ratio stood at 27 per cent, well above the Bermuda Monetary Authority’s minimum requirements.