Butterfield nets improved Q1 profit – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Butterfield Q1 profit rises 6.4%

First Prev 1 2 Next Last

The Bank of N.T. Butterfield & Son Limited has reported net income of $44.4 million for the first quarter of 2022.

That was a 6.4 per cent rise compared with net income of $41.7 million for the previous quarter and $41.6 million for the first quarter of 2021.

The core return on average tangible common equity for the first quarter was 21.9 per cent, compared with 18.8 per cent for the previous quarter and 19.3 per cent for the first quarter of 2021.

Michael Collins, Butterfield's chairman and chief executive officer, said the first quarter of 2022 was an excellent start to the year.

He stated: “Our asset-sensitive balance sheet has already benefited from the initial increases in interest rates, with improved net interest income and NIM (net interest margin). We expect market interest rates to continue to provide upward momentum to earnings during 2022.

“Additionally, we are seeing signs of improving economic activity across our operating jurisdictions, including growing visitor numbers, the return of cruise ships and increasing airlift to Bermuda and Cayman. While not yet back to pre-pandemic levels, we are very pleased to see progress for the tourism industry.

“Capital management continues to be an important focus for Butterfield, including a sustainable quarterly dividend, support for organic growth and potential acquisitions and the flexibility to repurchase shares when appropriate.

“Butterfield remains well positioned to benefit from the anticipated rising interest-rate environment, whilst generating significant non-interest income and managing expenses."

Period-end deposit balances remained constant at $13.9 billion compared with December 31, 2021. Deposits continued to remain elevated across all jurisdictions, the bank said.

The board of directors has declared a quarterly dividend of $0.44 per common share to be paid on May 31 to shareholders of record on May 16.

The current total regulatory capital ratio as at March 31 was 20.9 per cent as calculated under Basel III, compared with 21.2 per cent as at December 31.

Both of these ratios remain significantly above the minimum Basel III regulatory requirements applicable to the bank.

Michael Collins, chairman and CEO of Butterfield Bank (File photograph)
Butterfield Bank: reports results for the first quarter of the year (Photograph supplied)

You must be Registered or to post comment or to vote.

Published May 03, 2022 at 7:59 am (Updated May 03, 2022 at 8:41 am)

Butterfield Q1 profit rises 6.4%

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon