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Butterfield reports robust 2023 financial performance By Investing.com

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© Reuters.

HAMILTON, Bermuda – The Bank of N.T. Butterfield & Son Limited (BSX: NTB.BH; NYSE: NTB) disclosed its financial outcomes for the fourth quarter and the full year of 2023, signaling a strong fiscal performance. The bank reported a net income of $225.5 million, or $4.58 per diluted common share, for the year ended December 31, 2023, marking an increase from the previous year’s $214.0 million, or $4.29 per diluted common share.

For the fourth quarter ended December 31, 2023, Butterfield’s net income stood at $53.5 million, or $1.11 per diluted common share, compared to $48.7 million, or $0.99 per diluted common share, for the preceding quarter. The core net income for the same period was $55.3 million, or $1.15 per diluted common share.

The bank’s return on average common equity for 2023 was 24.2%, with a core return on average tangible common equity of 27.0%. The net interest margin for the year was reported at 2.80%, with the cost of deposits at 1.40%.

Butterfield’s board declared a dividend of $0.44 per share for the quarter ended December 31, 2023, and authorized a new share repurchase program for up to 3.5 million common shares.

The bank’s Chairman and Chief Executive Officer, Michael Collins, attributed the favorable results to active balance sheet management and a focus on long-term client relationships. He also noted the successful integration of the final tranche of Credit Suisse trust clients and the approval of a new share repurchase program for 2024.

The report highlighted a decrease in net interest income for the fourth quarter of 2023, attributed to higher deposit costs and a reduction in the bank’s balance sheet size. Despite this, non-interest income increased, driven by higher banking fees, trust fees from the Credit Suisse acquisition, and foreign exchange revenue.

The bank completed the year with a solid capital position, maintaining a total regulatory capital ratio of 25.4% under Basel III guidelines, comfortably above the minimum requirements.

Butterfield’s balance sheet showed a slight decrease in total assets from $14.3 billion at the end of 2022 to $13.4 billion at the end of 2023. The bank maintained a liquid position, with a significant portion of its assets in cash, bank deposits, and liquid investments.

The information provided is based on a press release statement.

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As The Bank of N.T. Butterfield & Son Limited (NYSE: NTB) reflects on a year of solid financial performance and strategic…

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