The Bank of Butterfield has announced financial results for the quarter and year ended December 31, 2023.
Net income for the year ended December 31, 2023 was $225.5 million, or $4.58 per diluted common share, compared to $214.0 million, or $4.29 per diluted common share, for the year ended December 31, 2022. Core net income 1 for the year ended December 31, 2023 was $231.5 million, or $4.70 per diluted common share, compared to $215.7 million, or $4.33 per diluted common share, for the year ended December 31, 2022.
The return on average common equity for the year ended December 31, 2023 was 24.2% compared to 25.7% for the year ended December 31, 2022. The core return on average tangible common equity 1 for the year ended December 31, 2023 was 27.0%, compared to 28.6% for the year ended December 31, 2022. The efficiency ratio for the year ended December 31, 2023 was 59.8% compared with 59.2% for the year ended December 31, 2022. The core efficiency ratio 1 for the year ended December 31, 2023 was 58.1% compared with 58.9% for the year ended December 31, 2022.
Michael Collins (pictured), Butterfield’s Chairman and Chief Executive Officer, commented: “Butterfield’s strong performance in 2023 was driven by active balance sheet management and an enhanced focus on long-term client relationships.
“Our conservative and profitable business model, characterized by limited credit risk, a high fee income ratio, and strong cash liquidity, was validated during the systemic challenges faced by U.S. regional banks last year. Butterfield also benefited from a resilient deposit base diversified across jurisdictions, sectors, and currencies.
“During the fourth quarter, we upgraded our core banking system in the Cayman Islands, which was well received, and completed onboarding the final tranche of the Credit Suisse trust clients. In December, we announced the approval of a new share repurchase program for 2024, with an authorization to purchase up to 3.5 million common shares. After a successful year, Butterfield is well positioned to continue generating strong risk adjusted returns and excess capital while providing market leading products and financial services.”
