Bank of N.T. Butterfield & Son ( (NTB) ) has released its Q2 earnings. Here is a breakdown of the information Bank of N.T. Butterfield & Son presented to its investors.
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The Bank of N.T. Butterfield & Son Limited, commonly known as Butterfield, is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, offering a range of financial services including banking, wealth management, and specialized financial services across various jurisdictions including Bermuda, the Cayman Islands, and the UK.
In its second quarter of 2025 financial report, Butterfield announced a net income of $53.3 million, or $1.25 per share, and a core net income of $53.7 million, or $1.26 per share. The bank also reported a return on average common equity of 20.3% and a core return on average tangible common equity of 22.3%. Additionally, Butterfield increased its quarterly cash dividend rate by 14% to $0.50 per share and authorized a new share repurchase program.
Key financial metrics for the quarter included a net interest margin of 2.64% and a cost of deposits at 1.56%. The bank’s net interest income saw a slight increase to $89.4 million compared to the previous quarter. Despite a decrease in non-interest income due to lower foreign exchange revenue, Butterfield managed to reduce non-interest expenses to $91.8 million. The bank also appointed Andrew Henton as an Independent Director, bringing significant experience in governance and financial services.
Looking ahead, Butterfield’s management remains confident in its business model and strategic growth plans, as evidenced by the increase in dividend payouts and share repurchase authorization. The bank continues to explore selective, fee-based acquisition opportunities while maintaining a strong capital position with a total regulatory capital ratio of 26.2%.
Overall, Butterfield’s consistent performance and strategic initiatives reflect its commitment to delivering high risk-adjusted returns and enhancing shareholder value, positioning it well for future growth in the financial services sector.