Butterfield (NTB) Q4 2025 Earnings Call Transcript

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• Trust businesses organically grow like 2% a year with natural attrition of about 2%, so growth generally comes through acquisitions

  80% confidence

• Butterfield is top 5 private trust company in Singapore with great growth opportunities

  80% confidence

• Trust performance particularly strong due to Credit Suisse asset acquisition now completely integrated and fee standstill expired

  80% confidence

• FX has been a real source of strength in Q4 and throughout 2025, with new functionality allowing clients to access credit lines for FX

  80% confidence

• Deposit outflows of $360 million in Q4 were offset by foreign exchange translation gains of $310 million

  80% confidence

• Noninterest deposit growth in Caymans due to seasonal influx associated with reinsurance payments

  80% confidence

• Asset management fee strength driven by underlying valuations improving significantly in Q4 and throughout 2025

  80% confidence

• Some costs in Q4 were one-time and will not repeat, expenses should settle between $90 million and $92 million quarterly

  80% confidence

• Combined payout ratio of 97% in 2025 from dividend increases and share repurchases

  80% confidence

• Continue to expect OCI improvement with additional burn down over the next 12 months of 28%

  80% confidence

• Focused on trust acquisitions in existing jurisdictions: Guernsey, Bermuda, Cayman, Switzerland and Singapore as they are the best trust jurisdictions

  80% confidence

• Not seeing systemic shifts in NPA migration, movements related to a few commercial accounts scattered throughout the network, mostly in Bermuda

  80% confidence

• M&A growth strategy remains on track with active dialogue with potential targets

  80% confidence

• Expect quarterly core expenses to be around $92 million over the next few quarters

  80% confidence

• In 2025, Butterfield delivered strong financial results through disciplined execution with core net income per share growing 17.4% year-on-year to total $5.60 per share

  80% confidence

• In 2025, Butterfield continued to produce top quartile returns relative to peers

  80% confidence

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