The Bank of NT Butterfield & Son Limited has announced their financial results for the second quarter ended June 30th, 2022.
- Net income of $49.1 million, or $0.99 per share, and core net income of $50.2 million, or $1.01 per share
- Return on average common equity of 24.5% and core return on average tangible common equity of 27.8%
- Net interest margin of 2.26%, cost of deposits of 0.16%
- Board declares dividend for the quarter ended June 30, 2022 of $0.44 per share
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, commented: “Butterfield was able to build on our first quarter momentum with continued strong results in the second quarter of 2022. Revenue generation was robust, with growth in both interest and non-interest income. As anticipated, non-core commercial deposits have moderated due to client investment of cash and the strong US dollar impact on foreign currency deposits. As overall deposit levels normalize further, we expect the Bank to return to an organic deposit growth rate of low single digit percentages annually. Our net interest margin increased 23 basis points and should continue to improve in the rising rate environment.
“I am also pleased to share that Butterfield has recently joined the United Nations Global Compact (UNGC) – the world’s largest corporate sustainability initiative. Participating in the UNGC reinforces our commitment to ethical and responsible business practices and gives us an organizing framework as we continue to develop our environmental and social responsibility programs, aimed at creating shared value for the communities in which we operate.”
Net income for the second quarter of 2022 was $49.1 million or $0.99 per diluted common share compared to net income of $44.4 million, or $0.89 per diluted common share, for the previous quarter and $39.6 million, or $0.79 per diluted common share, for the second quarter of 2021. Core net income1 for the second quarter of 2022 was $50.2 million, or $1.01 per diluted common share, compared to $44.7 million, or $0.90 per diluted common share, for the previous quarter and $40.1 million, or $0.80 per diluted common share, for the second quarter of 2021.
The core return on average tangible common equity1 for the second quarter of 2022 was 27.8%, compared to 21.9% for the previous quarter and 18.7% for the second quarter of 2021. The core efficiency ratio1 for the second quarter of 2022 was 60.2% compared with 63.7% in the previous quarter and 66.3% for the second quarter of 2021.
