Bank of N.T. Butterfield Q2 EPS beats estimates on higher interest income

Overview

• Bermuda-based banking group's Q2 revenue slightly beat analyst expectations, adjusted EPS beat estimates

• Core net income rose yr/yr, driven by higher net interest income and new trust revenue

• Company repurchased 0.3 mln shares and closed RH Guernsey acquisition

Outlook

• Bank expects CIBC Caribbean acquisition to close in the first half of 2027

• Company says integration activities for RH Guernsey acquisition are underway

Result Drivers

• NET INTEREST INCOME - Higher net interest income driven by increased day count and growth in interest-earning asset volumes, partially offset by higher deposit costs

• TRUST REVENUE - New trust revenue from RH Guernsey acquisition contributed to non-interest income growth

• NON-INTEREST EXPENSES - Higher non-interest expenses mainly due to acquisition-related costs and increased salaries and technology expenses

Company press release: ID:nBw3pMVWGa

Key Details

*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 $61.00, about 0% above its July 24 closing price of $60.99

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - HBT Financial Q2 adjusted EPS beats on CNB acquisition; raises dividend

• July 27 - NBT Bancorp Q2 net income more than doubles on Evans acquisition

• July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

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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.)