Document

EX-99.1 2 currentearningsrelease.htm EX-99.1 BNTB Q3 2024 EARNINGS RELEASE Document

巴特菲爾德報告2024年第三季度業績

2024年第三季度財務亮點:

•淨利潤爲$5270萬，每股盈利$1.16，以及核心淨利潤1 1995年。 $5280萬，每股盈利$1.16

•20.3%的平均普通股權益回報率和22.5%的核心平均有形普通股權回報率1 22.5%

•淨利息收益率爲2.61%，存款成本爲1.91%

•董事會宣佈2024年9月30日結束的季度股息爲每股0.44美元

•回購100萬股普通股，平均價格爲每股37.00美元

百慕大哈密爾頓-2024年10月22日：北美信德銀行及黃裔獨子有限公司（"信德銀行"或"銀行"）（BSX：NTb.BH；紐交所：NTB）今天宣佈了財務業績。季度截至2024年9月30日的財務業績。

2024年第三季度的淨利潤爲5270萬美元，每股稀釋普通股爲1.16美元，相比於上一季度的淨利潤5060萬美元，每股稀釋普通股爲1.09美元，以及2023年第三季度的淨利潤4870萬美元，每股稀釋普通股爲0.99美元。核心淨利潤1 2024年第三季度的核心淨利潤爲5280萬美元，每股稀釋普通股爲1.16美元，相比於上一季度的5140萬美元，每股稀釋普通股爲1.11美元，以及2023年第三季度的5700萬美元，每股稀釋普通股爲1.16美元。

2024年第三季度的平均普通股權益回報率爲20.3%，低於上一季度的20.7%和2023年第三季度的20.6%。平均無形普通股權益核心回報率1 2024年第三季度的核心平均有形普通股權益爲22.5%，低於上一季度的23.3%和2023年第三季度的26.1%。2024年第三季度的效率比率爲60.3%，低於上一季度的62.4%和2023年第三季度的64.1%。核心效率比率1 2024年第三季度的核心效率比率爲60.2%，低於上一季度的61.8%和2023年第三季度的58.3%。

董事長兼首席執行官邁克爾·柯林斯評論說：「Butterfield在2024年第三季度取得了強勁的業績，通過提高效率、穩定的非利息收入和專注的資本管理。我們有很高的費用/收入比，並將通過收購增加手續費收入的比例，同時將多餘資本返還給股東。百慕大、開曼群島和海峽群島的經濟環境依然偏好，國際業務和旅遊業均有強勁需求和貢獻。隨着金融條件放鬆，我們預計借款客戶的負擔能力將得到改善，業務活動將普遍活躍。」

2024年第三季度的淨利潤較上一季度增加，主要是由於更高的淨利息收入和較低的非利息支出，以及非利息收入的適度增加。

2024年第三季度淨利息收入（「NII」）爲8810萬美元，比上一季度的8740萬美元高60萬美元，比2023年第三季度的9020萬美元低210萬美元。NII

(1) 請參閱下表「美國通用會計準則結果與核心盈利的對比」，了解美國通用會計準則結果與非通用會計準則衡量的調解。 1

2024年第三季度的成交量高於2024年第二季度主要是由於較高的可投資資產成交量，部分抵消了較高的存款成本和較低的國庫收益。與2023年第三季度相比，2024年第三季度淨利息收入減少是由於較高的存款成本，這在一定程度上被較高的收益利息收入資產和較大的資產負債表所抵消。

2024年第三季度淨利息收益率（「NIM」）爲2.61%，比上一季度的2.64%下降了3個點子，比2023年第三季度的2.76%下降了15個點子。2024年第三季度的淨利息收益率與上一季度和2023年第三季度相比下降，這是由於轉向定期存款和較低的國庫收益率，部分抵消了投資收益率的增加。

2024年第三季度的非利息收入爲5600萬美元，比上一季度的5560萬美元增加40萬美元，比2023年第三季度的5200萬美元高出400萬美元。2024年第三季度與上一季度相比的增長是由於更高的信用卡成交量、一次性貸款提前還款費用以及由於資產估值較高而使資產管理費增長。這些增長部分抵消了較低的未認領餘額轉入收入。2024年第三季度的非利息收入高於2023年第三季度，主要是由於資產管理費的增加，以及從瑞士信貸獲得的資產增加的信託收入。

2024年第三季度的非利息支出爲8880萬美元，低於上季度的9110萬美元和2023年第三季度的9250萬美元。核心非利息支出1 爲8860萬美元，比上一季度的9030萬美元低，高於2023年第三季度的8430萬美元。核心非利息支出1 在2024年第三季度較上一季度降低，是因爲專業和外部服務成本減少。與2023年第三季度相比，核心非利息支出1 由於績效獎金計提增加和員工醫保成本以及房地產成本通貨膨脹，核心非利息支出上升; 還有最近實施的核心銀行軟件增加的支出。

期末存入資金餘額爲127億美元，比2023年12月31日的120億美元增長了6.3%，主要是由於海灣群島的存款增加，以及英鎊走強。平均存款在2024年9月30日結束的季度爲124億美元，與上個季度持平。

每股有形資產淨值本季度提高了$1.87，增長了9.3%，達到每股$21.90。

銀行繼續保持其平衡的資本回報政策。董事會再次宣佈每股普通股0.44美元的季度股息，將於2024年11月19日支付給截至2024年11月5日的股東。在2024年第三季度，Butterfield根據銀行現有的股份回購計劃回購了100萬股普通股。

截至2024年9月30日，根據巴塞爾Ⅲ計算，目前總監管資本比率爲24.3%，相比於2023年12月31日的25.4%。這兩個比率依然保守地高於銀行適用的最低巴塞爾Ⅲ監管要求。

分析和討論第三季度業績


損益表	未經審計的截至三個月的期間
（以百萬美元計）	2024年9月30日		2024年6月30日		2023年9月30日
非利息收入	56.0		55.6		52.0
計提信貸損失準備前的淨利息收入	88.1		87.4		90.2
計提信貸損失準備及其他收益（損失）前總淨收入（不含淨利息收入）	144.1		143.1		142.2
計提信貸損失（收回）	(1.3)		(0.5)		(0.5)
所有其他收益（損失）總額	(0.1)		0.1		—
營業收入總額	142.7		142.7		141.7
非利息支出	(88.8)		(91.1)		(92.5)
計提稅前總淨收入	54.0		51.5		49.1
所得稅效益(費用)	(1.2)		(0.9)		(0.4)
淨收入	52.7		50.6		48.7

每股淨收益
基本	1.18		1.11		1.00
攤薄	1.16		1.09		0.99

每股攤薄後其他非核心項目影響 1	—		0.02		0.17
每股核心收益（全攤薄基礎上） 1	1.16		1.11		1.16

調整後全攤薄基礎上參與股份的加權平均數量（以千股爲單位）	45,557		46,298		49,140

主要財務指標
普通股權回報率	20.3	%	20.7	%	20.6	%
Core return on average tangible common equity 1	22.5	%	23.3	%	26.1	%
平均資產回報率	1.5	%	1.5	%	1.4	%
淨利息收益率	2.61	%	2.64	%	2.76	%
Core efficiency ratio 1	60.2	%	61.8	%	58.3	%

(1)See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.


Balance Sheet	As at
(in $ millions)	September 30, 2024		December 31, 2023
Cash and cash equivalents	2,067		1,647
Securities purchased under agreements to resell	1,143		187
Short-term investments	607		1,038
Investments in securities	5,468		5,292
Loans, net of allowance for credit losses	4,648		4,746
Premises, equipment and computer software, net	152		154
Goodwill and intangibles, net	97		99
Accrued interest and other assets	192		211
Total assets	14,373		13,374

Total deposits	12,738		11,987
Accrued interest and other liabilities	472		285
Long-term debt	99		98
Total liabilities	13,309		12,370

Common shareholders’ equity	1,064		1,004
Total shareholders' equity	1,064		1,004
Total liabilities and shareholders' equity	14,373		13,374

Key Balance Sheet Ratios:	September 30, 2024		December 31, 2023
Common equity tier 1 capital ratio2	22.1	%	23.0	%
Tier 1 capital ratio2	22.1	%	23.0	%
Total capital ratio2	24.3	%	25.4	%
Leverage ratio2	7.1	%	7.6	%
Risk-Weighted Assets (in $ millions)	4,776		4,541
Risk-Weighted Assets / total assets	33.2	%	34.0	%
Tangible common equity ratio	6.8	%	6.8	%
Book value per common share (in $)	24.09		21.39
Tangible book value per share (in $)	21.90		19.29
Non-accrual loans/gross loans	1.9	%	1.3	%
Non-performing assets/total assets	1.5	%	1.0	%
Allowance for credit losses/total loans	0.6	%	0.5	%

(2)In accordance with regulatory capital guidance, the Bank has elected to make use of transitional arrangements which allow the deferral of the January 1, 2020 Current Expected Credit Loss ("CECL") impact of $7.8 million on its regulatory capital over a period of 5 years.

QUARTER ENDED SEPTEMBER 30, 2024 COMPARED WITH THE QUARTER ENDED JUNE 30, 2024

Net Income

Net income for the quarter ended September 30, 2024 was $52.7 million, up from $50.6 million in the prior quarter.

Movements in net income during the quarter ended September 30, 2024 compared to the previous quarter are attributable to the following:

•$0.4 million increase in non-interest income driven by (i) $0.6 million increase in banking fees due to one-off loan prepayment fees and increased card volumes; (ii) $0.6 million increase in asset management fees due to increases in asset valuations; (iii) offset by $0.9 million decrease in other non-interest income due to a decrease in unclaimed customer balances being recognized in revenue, and a $0.4 million decrease in foreign exchange revenue due to seasonality and lower volumes;

•$0.6 million increase in net interest income before provision for credit losses driven by an increased volume of interest earning assets, increased yields on new investment assets and additional day count. This was partially offset by decreased yields on treasury assets as market interest rates declined;

•$0.8 million increase in provision for credit losses driven by a commercial facility in Bermuda;

•$2.4 million decrease in non-interest expenses driven by (i) $1.9 million decrease in professional and outside services fees in the current quarter; and (ii) $0.4 million decrease in technology and communications from reduced depreciation on IT equipment and lower software maintenance costs; and

•$0.3 million increase in income tax expenses due to higher net income in the Channel Islands.

Non-Core Items1

Non-core items resulted in expenses, net of gains, of $0.1 million in the third quarter of 2024. Non-core items for the quarter included legal fees for corporate restructuring work in the Channel Islands.

Management does not believe that comparative period expenses, gains or losses identified as non-core are indicative of the results of operations of the Bank in the ordinary course of business.

(1)See table "Reconciliation of US GAAP Results to Core Earnings" below for reconciliation of US GAAP results to non-GAAP measures.

BALANCE SHEET COMMENTARY AT SEPTEMBER 30, 2024 COMPARED WITH DECEMBER 31, 2023

Total Assets

Total assets of the Bank were $14.4 billion at September 30, 2024, an increase of $1.0 billion from December 31, 2023. The Bank maintained a highly liquid position at September 30, 2024, with $9.3 billion of cash, bank deposits, reverse repurchase agreements and liquid investments representing 64.6% of total assets, compared with 61.0% at December 31, 2023.

Loans Receivable

The loan portfolio totaled $4.6 billion at September 30, 2024, which was $0.1 billion lower than December 31, 2023 balances. The decrease was driven primarily by maturities and prepayments in excess of originations across the residential mortgage portfolios, partially offset by a strengthened British pound.

The allowance for credit losses at September 30, 2024 totaled $25.8 million, which remains flat from $25.8 million at December 31, 2023.

The loan portfolio represented 32.3% of total assets at September 30, 2024 (December 31, 2023: 35.5%), while loans as a percentage of total deposits was 36.5% at September 30, 2024 (December 31, 2023: 39.6%). The decrease in both ratios was attributable principally to a decrease in loan balances at September 30, 2024 compared to December 31, 2023.

As at September 30, 2024, the Bank had gross non-accrual loans of $89.6 million, representing 1.9% of total gross loans, an increase of $28.6 million from $61.0 million, or 1.3% of total loans, at December 31, 2023. The increase in non-accrual loans was driven by a commercial facility secured by real estate in Bermuda and residential mortgages in the Channel Islands and UK segment.

Other real estate owned (“OREO”) decreased by $0.1 million compared to December 31, 2023 driven by the sale of a residential property in Bermuda.

Investment in Securities

The investment portfolio was $5.5 billion at September 30, 2024, which was $0.2 billion lower than the December 31, 2023 balances. The changes were attributable to paydowns and maturities in the portfolio.

The investment portfolio is made up of high-quality assets with 100% invested in A-or-better-rated securities. The investment book yield was 2.39% during the quarter ended September 30, 2024 compared with 2.30% during the previous quarter. Total net unrealized losses on the available-for-sale portfolio decreased to $117.1 million, compared with total net unrealized losses of $163.9 million at December 31, 2023, as a result of declining long-term US dollar interest rates.

Deposits

Average total deposit balances were consistent with the prior quarter at $12.4 billion for the quarter ended September 30, 2024, while period end balances as at September 30, 2024 were $12.7 billion, an increase of $0.7 billion compared to December 31, 2023.

Average Balance Sheet2


	For the three months ended
	September 30, 2024			June 30, 2024			September 30, 2023
(in $ millions)	Average balance ($)	Interest ($)	Average rate (%)	Average balance ($)	Interest ($)	Average rate (%)	Average balance ($)	Interest ($)	Average rate (%)
Assets
Cash and cash equivalents and short-term investments	3,572.7	42.0	4.66	3,468.8	41.4	4.78	2,559.2	28.8	4.47
Investment in securities	5,239.2	31.5	2.39	5,172.6	29.6	2.30	5,494.9	28.5	2.06

Available-for-sale	1,907.3	12.7	2.64	1,797.1	10.8	2.41	1,926.0	8.8	1.81
Held-to-maturity	3,331.9	18.9	2.24	3,375.4	18.8	2.24	3,568.9	19.7	2.19
Loans	4,566.2	76.4	6.64	4,622.7	76.6	6.65	4,897.5	80.4	6.51
Commercial	1,298.9	21.6	6.61	1,342.8	21.7	6.50	1,394.9	23.2	6.60
Consumer	3,267.3	54.8	6.66	3,279.9	54.8	6.71	3,502.6	57.2	6.47
Interest earning assets	13,378.1	150.0	4.45	13,264.1	147.6	4.46	12,951.6	137.7	4.22
Other assets	421.5			430.4			416.7
Total assets	13,799.6			13,694.5			13,368.3
Liabilities
Deposits - interest bearing	9,805.8	(59.7)	(2.41)	9,807.6	(58.7)	(2.40)	9,340.4	(46.1)	(1.96)



Securities sold under agreement to repurchase	81.9	(0.9)	(4.30)	2.9	—	(4.83)	—	—	—
Long-term debt	98.6	(1.4)	(5.52)	98.6	(1.4)	(5.58)	98.4	(1.4)	(5.53)
Interest bearing liabilities	9,986.3	(61.9)	(2.46)	9,909.1	(60.1)	(2.43)	9,438.8	(47.5)	(2.00)
Non-interest bearing current accounts	2,561.9			2,636.8			2,739.3
Other liabilities	249.6			243.8			279.3
Total liabilities	12,797.8			12,789.6			12,457.4
Shareholders’ equity	1,001.9			904.9			910.9
Total liabilities and shareholders’ equity	13,799.6			13,694.5			13,368.3
Non-interest bearing funds net of non-interest earning assets (free balance)	3,391.8			3,355.0			3,512.8
Net interest margin		88.1	2.61		87.4	2.64		90.2	2.76

(2) Averages are based upon a daily averages for the periods indicated.

Assets Under Administration and Assets Under Management

Total assets under administration for the trust and custody businesses were $133.5 billion and $30.2 billion, respectively, at September 30, 2024, while assets under management were $6.0 billion at September 30, 2024. This compares with $132.4 billion, $30.3 billion and $5.5 billion, respectively, at December 31, 2023.

Reconciliation of US GAAP Results to Core Earnings

The table below shows the reconciliation of net income in accordance with US GAAP to core earnings, a non-GAAP measure, which excludes certain significant items that are included in our US GAAP results of operations. We focus on core net income, which we calculate by adjusting net income to exclude certain income or expense items that are not representative of our business operations, or “non-core”. Core net income includes revenue, gains, losses and expense items incurred in the normal course of business. We believe that expressing earnings and certain other financial measures excluding these non-core items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Bank and predicting future performance. We believe that presentation of these non-GAAP financial measures will permit investors to assess the performance of the Bank on the same basis as management.


Core Earnings	Three months ended
(in $ millions except per share amounts)	September 30, 2024		June 30, 2024		September 30, 2023
Net income	52.7		50.6		48.7



Non-core items






Non-core expenses
Early retirement program, voluntary separation, redundancies and other non-core compensation costs	—		0.2		8.2



Restructuring charges and related professional service fees	0.1		0.6		—


Total non-core expenses	0.1		0.8		8.2
Total non-core items	0.1		0.8		8.2
Core net income	52.8		51.4		57.0




Average common equity	1,029.2		979.4		940.2
Less: average goodwill and intangible assets	(95.5)		(95.3)		(72.9)
Average tangible common equity	933.7		884.1		867.2
Core earnings per share fully diluted	1.16		1.11		1.16
Return on common equity	20.3	%	20.7	%	20.6	%
Core return on average tangible common equity	22.5	%	23.3	%	26.1	%

Shareholders' equity	1,064.2		999.1		922.9
Less: goodwill and intangible assets	(96.7)		(94.4)		(70.6)
Tangible common equity	967.5		904.7		852.3
Basic participating shares outstanding (in millions)	44.2		45.2		48.1
Tangible book value per common share	21.90		20.03		17.73

Non-interest expenses	88.8		91.1		92.5
Less: non-core expenses	(0.1)		(0.8)		(8.2)
Less: amortization of intangibles	(1.9)		(1.9)		(1.4)
Core non-interest expenses before amortization of intangibles	86.7		88.4		82.9
Core revenue before other gains and losses and provision for credit losses	144.1		143.1		142.2
Core efficiency ratio	60.2	%	61.8	%	58.3	%

Conference Call Information:

Butterfield will host a conference call to discuss the Bank’s results on Wednesday, October 23, 2024 at 10:00 a.m. Eastern Time. Callers may access the conference call by dialing +1 (844) 855-9501 (toll-free) or +1 (412) 858-4603 (international) ten minutes prior to the start of the call and referencing the Conference ID: Butterfield Group. A live webcast of the conference call, including a slide presentation, will be available in the investor relations section of Butterfield’s website at www.butterfieldgroup.com. A replay of the call will be archived on the Butterfield website for 12 months.

About Non-GAAP Financial Measures:

Certain statements in this release involve the use of non-GAAP financial measures. We believe such measures provide useful information to investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with US GAAP; however, our non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with US GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. See "Reconciliation of US GAAP Results to Core Earnings" for additional information.

Forward-Looking Statements:

Certain of the statements made in this release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions estimates, intentions, and future performance, including, without limitation, our intention to make share repurchases, our dividend payout target, our fee/income ratio, our OCI burndown, and affordability for borrowing customers and business activity levels, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of Butterfield to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements due to a variety of factors, including worldwide economic conditions (including economic growth and general business conditions) and fluctuations of interest rates, inflation, a decline in Bermuda’s sovereign credit rating, any sudden liquidity crisis, the successful completion and integration of acquisitions (including our integration of the trust assets acquired from Credit Suisse) or the realization of the anticipated benefits of such acquisitions in the expected time-frames or at all, success in business retention (including the retention of relationships associated with our Credit Suisse acquisition) and obtaining new business, potential impacts of climate change, the success of our updated systems and platforms and other factors. Forward-looking statements can be identified by words such as "anticipate," "assume," "believe," "estimate," "expect," "indicate," "intend," "may," "plan," "point to," "predict," "project," "seek," "target," "potential," "will," "would," "could," "should," "continue," "contemplate" and other similar expressions, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact are statements that could be forward-looking statements.

All forward-looking statements in this disclosure are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our SEC reports and filings, including under the caption "Risk Factors" in our most recent Form 20-F. Such reports are available upon request from Butterfield, or from the Securities and Exchange Commission ("SEC"), including through the SEC’s website at https://www.sec.gov. Any forward-looking statements made by Butterfield are current views as at the date they are made. Except as otherwise required by law, Butterfield assumes no obligation and does not undertake to review, update, revise or correct any of the forward-looking statements included in this disclosure, whether as a result of new information, future events or other developments. You are cautioned not to place undue reliance on the forward-looking statements made by Butterfield in this disclosure. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and should only be viewed as historical data. BF-All

Presentation of Financial Information:

Certain monetary amounts, percentages and other figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them.

About Butterfield:

Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, providing services to clients from Bermuda, the Cayman Islands, Guernsey and Jersey, where our principal banking operations are located, and The Bahamas, Switzerland, Singapore and the United Kingdom, where we offer specialized financial services. Banking services comprise deposit, cash management and lending solutions for individual, business and institutional clients. Wealth management services are composed of trust, private banking, asset management and custody. In Bermuda, the Cayman Islands and Guernsey, we offer both banking and wealth management. In The Bahamas, Singapore and Switzerland, we offer select wealth management services. In the UK, we offer residential property lending. In Jersey, we offer select banking and wealth management services. Butterfield is publicly traded on the New York Stock Exchange (symbol: NTB) and the Bermuda Stock Exchange (symbol: NTB.BH). Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.

Investor Relations Contact: Media Relations Contact:

Noah Fields Nicky Stevens

Investor Relations Group Strategic Marketing & Communications

The Bank of N.T. Butterfield & Son Limited The Bank of N.T. Butterfield & Son Limited

Phone: (441) 299 3816 Phone: (441) 299 1624

E-mail: noah.fields@butterfieldgroup.com E-mail: nicky.stevens@butterfieldgroup.com