Overview

* Butterfield Q2 revenue missed analyst expectations

* Co's adjusted EPS beat estimates, per LSEG data

* Company increased quarterly cash dividend by 14% to $0.50 per share

* Butterfield authorized new share repurchase program for up to 1.5 mln shares

Result Drivers

* FOREIGN EXCHANGE REVENUE - Volume-driven decrease in foreign exchange revenue impacted net income,

* CREDIT LOSSES - Higher allowance for credit losses contributed to a decline in core net income, per CEO Michael Collins

* INTEREST INCOME - Marginal increase in net interest income due to lower cost of deposits and higher yield on investments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $146.30 $146.90

Revenue mln mln (4

Analysts

)

Q2 Beat $1.26 $1.25 (4

Adjusted Analysts

EPS )

Q2 $53.70

Adjusted mln

Net

Income

Q2 Net $53.30

Income mln

Q2 Net $89.40

Interest mln

Income

Q2 -$25.70

Credit mln

Loss

Allowanc

e

Q2 $0.5

Dividend

Q2 $54.50

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 ( NTB ) is $51.50, about 13.8% above its July 25 closing price of $44.37

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(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.)