Butterfield has just reported its financial results for the first quarter of 2023 and said its net income for the first quarter of 2023 was $62.2, or $1.24 per diluted common share, compared to net income of $63.1 million, or $1.26 per diluted common share, for the previous quarter, and also compared to $44.4 or $0.89 per diluted common share, for the first quarter of 2022.
Michael Collins, Butterfield’s Chairman and Chief Executive Officer, said the first quarter of 2023 was a strong start to the year.
“Butterfield continues to have a highly liquid and well-funded balance sheet with a diverse client base across multiple jurisdictions, sectors, and currencies,” he advised, adding that they were “thoughtful and strategic” in their management of the balance sheet, maintaining a conservative liquidity and capital posture.
With regards to mergers and acquisitions, they reported the completion of the first closing of the acquisition of trust assets from Credit Suisse, which he said strengthened the bank’s presence in the market.
“In this first tranche, we acquired 180 high quality, long-term client relationships. We continue to make progress on closing The Bahamas and the second tranche of Singapore clients, followed by Guernsey in the coming quarters,” he confirmed.
Net income was down in the first quarter of 2023 versus the prior quarter primarily due to expected lower non-interest income driven by seasonally higher fees in the previous quarter, coupled with increased interest expenses offset by improved interest income as a result of higher market interest rates.
Net interest income for the first quarter of 2023 was $97.4 million, an increase of $2.8, compared with NII of $94.6 million in the previous quarter and up $21.5 million from $75.9 in the first quarter of 2022. NII continued to increase during the first quarter of 2023 compared to the prior quarter, primarily due to higher margins on loans and treasury assets, which were partially offset by increased deposit costs, particularly in the more competitive Channel Islands markets. Compared to the first quarter of 2022, NII similarly improved due to higher yields on assets, which was partially offset by higher deposit costs.
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