Butterfield Q3 EPS beats on higher yields, lower non-core expenses
Overview
Bank's Q3 revenue was a slight beat versus analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Net income rose from prior quarter, driven by higher interest and non-interest income
Outlook
Company expects CIBC Caribbean acquisition to close in H1 2027
Company says integration planning for CIBC Caribbean acquisition is progressing as expected
Result Drivers
HIGHER YIELDS - Co said net interest income rose due to reinvestment of securities at higher yields and improved treasury returns, partly offset by loan yield compression and higher deposit costs
NON-INTEREST INCOME - Co said non-interest income rose due to higher banking service revenue from increased card volumes and a non-recurring contractual incentive
LOWER NON-CORE EXPENSES - Co said non-interest expenses fell mainly due to lower acquisition-related costs, partly offset by higher salaries and other expenses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $162 mln | $160.90 mln (3 Analysts) |
Q3 Adjusted EPS | Beat | $1.58 | $1.57 (3 Analysts) |
Q3 Adjusted Net Income | $64.20 mln | ||
Q3 Net Income | $61 mln | ||
Q3 Net Interest Income | $97.20 mln | ||
Q3 Credit Loss Allowance | -$27 mln | ||
Q3 Dividend | $0.50 | ||
Q3 Pretax Profit | $62.60 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Bank of NT Butterfield & Son Ltd is $65.00, about 8.4% above its October 26 closing price of $59.95
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)