Butterfield has recorded a sharp rise in quarterly profits, helped along by an expanding footprint in the Channel Islands.
The offshore banking group, which runs major operations across Guernsey and Jersey, generated a net profit of $61m (£47.1m) in the third quarter of 2026.
That represents a healthy rebound from the previous quarter’s figure of $46.9m, alongside a steady core net income of $64.2m.
A key driver of growth came directly from Guernsey, where the onboarding of the recently acquired R&H trust business helped push non-interest revenues up to $64.8m.
Higher transaction volumes across credit cards and updated client fee agreements also delivered a welcome boost to the bottom line.
Total net interest income grew to $97.2m, buoyed by the bank reinvesting its securities portfolio at more favourable yields.
Net interest margin nudged upwards to 2.76%, while average client deposits remained remarkably resilient at $13.1bn.
Local lending showed slight movement, with non-accrual loans rising to $119.6m following issues tied to two residential mortgage facilities in the Channel Islands and UK book.
However, bank chiefs moved quickly to reassure investors, stating the properties are well secured and carry no expected financial loss.
Overall operating costs fell sharply by $10.5m during the period, primarily due to lower advisory and transaction expenses.
Michael Collins, Butterfield’s Chairman and Chief Executive, said the solid performance highlighted the strength of the bank’s diversified offshore model.
He added that integration work in Guernsey continues to progress smoothly alongside preparations to complete the major buyout of CIBC Caribbean next year.
The bank’s regulatory capital buffer climbed to a fortress-level 29.6%, far exceeding mandatory baseline standards.
Following the third-quarter performance, directors have approved a cash dividend of $0.50 per share to be paid out to shareholders next month.
