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olivLaw · US equity research

Bank of N.T. Butterfield & Son Ltd NTB

Commercial Banks, NEC · SIC 6029 · Vertical: Commercial Banks, NEC (SIC 6029)

55.49USD+0.95% · 1 dayClose 04 Nov 2026

Bank of N.T. Butterfield & Son Ltd is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, operating in Bermuda, the Cayman Islands and the Channel Islands and UK. The company matters because its revenue depends heavily on these small, open economies, and its balance sheet stays liquid, with deposits exceeding loans, against slow UK growth. The annual report shows net revenue reached 606.8 million USD in 2025, while total assets rose to 14.1 billion USD.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Bank of N.T. Butterfield & Son Ltd (NTB) stock was 55.49 USD (+0.95% on the day), with market capitalisation 2.2 bn USD, P/E 10.1 on diluted EPS of 5.47 USD over the last 12 months, dividend yield 3.39%, beta 0.57, 52-week range 44.75–63.91 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
2.2 bn USD
shares as of 31 Dec 2025
P/E (TTM)
10.1
Diluted EPS TTM 5.47 · TTM to 31 Dec 2025
E/P (TTM)
9.86%
TTM to 31 Dec 2025
Dividend yield
3.39%
DPS 12m 1.88
Beta (2y)
0.57
Volatility (1y) 19%
52-week range
44.7563.91

Price history

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Technical reading

RSI (14)
34.0
weak (30–45)
Bollinger (20, 2)
55.17 – 61.11
in the lower half of the band · %B 0.05 · band width 10.2%
SMA 50 / 200
58.78 / 56.79
mixed trend
MACD (12, 26, 9)
-0.75 / -0.33
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−5.2%−2.0%−3.3 pp—
3 months−10.3%−2.2%−8.1 pp—
6 months−1.3%+4.3%−5.5 pp—
Year to date+11.4%+10.6%+0.8 pp—
1 year+20.3%+10.5%+9.8 pp+20.4%
3 years+103.0%+73.7%+29.4 pp+132.7%
5 years+41.3%+61.7%−20.5 pp—
Max drawdown (1y)
−14.0%
14 Aug 2026 → 03 Nov 2026
Max drawdown (5y)
−43.8%
16 Feb 2022 → 04 May 2023
Compound annual growth (5y)
+7.2%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 50 percentile of its own 10-quarter history (min 6.9, median 9.9, max 26.6; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue517.8 m532.6 m494.2 m499.7 m549.3 m578.6 m579.9 m606.8 m
Revenue YoY+13.9%+2.9%−7.2%+1.1%+9.9%+5.3%+0.2%+4.6%
Net income195.2 m177.1 m147.2 m162.7 m214.0 m225.5 m216.3 m231.9 m
Net income YoY+27.4%−9.3%−16.9%+10.5%+31.6%+5.4%−4.1%+7.2%
Diluted EPS3.503.302.903.264.294.584.715.47
Diluted EPS YoY+26.8%−5.7%−12.1%+12.4%+31.6%+6.8%+2.8%+16.1%
net %37.7%33.2%29.8%32.6%39.0%39.0%37.3%38.2%
Free cash flow278.1 munavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.7 bn USD
Financial debt
0 USD
Net debt
-1.7 bn USD
Equity
1.1 bn USD
Total assets
14.1 bn USD
Debt / equity
0.00x
Current ratio
unavailable
ROE
21.4%
ROA
1.6%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Net interest income
2023
367.0 m
2024
351.2 m
2025
364.1 m

SEC (XBRL)· 18 Feb 2026verified

Non-interest expense
2023
352.3 m
2024
359.1 m
2025
368.8 m

SEC (XBRL)· 18 Feb 2026verified

Pre-tax income
2023
226.3 m
2024
220.8 m
2025
238.0 m

SEC (XBRL)· 18 Feb 2026verified

Net income
2023
225.5 m
2024
216.3 m
2025
231.9 m

SEC (XBRL)· 18 Feb 2026verified

Diluted EPS
2023
4.58
2024
4.71
2025
5.47

SEC (XBRL)· 18 Feb 2026verified

Dividend per share
2023
1.76
2024
1.76
2025
1.88

SEC (XBRL)· 18 Feb 2026verified

Balance sheet · USD

Cash
2023
1.6 bn
2024
2.0 bn
2025
1.7 bn

SEC (XBRL)· 18 Feb 2026verified

Loans
2023
4.7 bn
2024
4.5 bn
2025
4.4 bn

SEC (XBRL)· 18 Feb 2026verified

Total assets
2023
13.4 bn
2024
14.2 bn
2025
14.1 bn

SEC (XBRL)· 18 Feb 2026verified

Deposits
2023
12.0 bn
2024
12.7 bn
2025
12.7 bn

SEC (XBRL)· 18 Feb 2026verified

Long-term debt
2023
98.5 m
2024
98.7 m
2025
0

SEC (XBRL)· 18 Feb 2026verified

Total liabilities
2023
12.4 bn
2024
13.2 bn
2025
13.0 bn

SEC (XBRL)· 18 Feb 2026verified

Equity
2023
1.0 bn †
2024
1.0 bn †
2025
1.1 bn †

SEC (XBRL)· 18 Feb 2026verified

Shares outstanding at year end
2023
47.5 m
2024
43.5 m
2025
39.9 m

SEC (XBRL)· 18 Feb 2026verified

Cash flow · USD

Dividends paid
2023
86.2 m
2024
79.6 m
2025
77.7 m

SEC (XBRL)· 18 Feb 2026verified

Share repurchases
2023
88.6 m
2024
155.3 m
2025
146.7 m

SEC (XBRL)· 18 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
4.6%
computed by olivLawFY 2025
Revenue CAGR 3Y
3.4%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
4.2%
computed by olivLawFY 2020 → FY 2025
Net income growth (YoY)
7.2%
computed by olivLawFY 2025
Net income CAGR 3Y
2.7%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
9.5%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
16.1%
computed by olivLawFY 2025
EPS CAGR 3Y
8.4%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
13.5%
computed by olivLawFY 2020 → FY 2025

Profitability

Net margin
38.2%
computed by olivLawFY 2025

Returns

ROE
21.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
1.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
34.4%
computed by olivLawFY 2025

Market and valuation

Market capitalisation
2.2 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
Market cap / net income TTM
9.6x
computed by olivLawFY 2025
P/E (TTM)
10.1x
computed by olivLawFY 2025
Earnings yield
9.9%
computed by olivLawFY 2025
P/B
1.9x
computed by olivLawbalance sheet at 31 Dec 2025
P/S
3.7x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Dividend yield
3.4%
computed by olivLawFY 2025
Shareholder yield (distributions)
10.1%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025

Banking

Net interest margin
2.6%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Cost-to-income
101.3%
computed by olivLawFY 2025
Loan-to-deposit
34.5%
computed by olivLawbalance sheet at 31 Dec 2025
NPL ratio
unavailable
input data missing
CET1 ratio
unavailable
input data missing
Cost of risk
unavailable
input data missing

32 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 59 / 100

A scoring methodology on indicators and valuation, not investment advice.

(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])

Closing price

55.49 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 2.2 bn USD

Key indicators

Market capitalisation
2.2 bn USD
computed by olivLawbalance sheet at 31 Dec 2025
P/E (TTM)
10.1x
computed by olivLawFY 2025
P/B
1.9x
computed by olivLawbalance sheet at 31 Dec 2025
ROE
21.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
38.2%
computed by olivLawFY 2025
Revenue growth (YoY)
4.6%
computed by olivLawFY 2025
Dividend yield
3.4%
computed by olivLawFY 2025

Coverage and freshness

16/20 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: SEC (XBRL)published 18 Feb 2026
verified 339

Score by group

  • Valuation42
  • Returns83
  • Quality61
  • Balance sheet100
  • Growth55

Estimated value range

Low
31.80
USD per share
Mid
36.80
USD per share
High
37.64
USD per share
Price: 55.49 USD
The price is above the range
Potential to the central value: -33.7% (value / price − 1)
Margin of safety: -50.8% (1 − price / value)
Agreement between methods: medium · 5 methods used · 4 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.71 – 93.39 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Residual income36.00 – 37.64 (Mid 36.80)
  • Justified P/B69.44 – 93.39 (Mid 79.65)
  • Dividend discount (DDM)24.71 – 33.22 (Mid 28.34)
  • Peers: P/E25.63 – 85.48 (Mid 61.56)
    6 companies used · median multiple 11.3x · quartiles 4.7x – 15.6x
    AVAL, BCH, BLX, HDB, KB, PGC
  • Peers: P/B31.80 – 36.78 (Mid 33.52)
    3 companies used · median multiple 1.2x · quartiles 1.1x – 1.3x
    BLX, KB, PGC
Multiple comparisons use the SIC vertical: Commercial Banks, NEC (SIC 6029)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 59/100

FactorValueScoreWeight used
ROE · Quality21.4%95 (vs peers)19%
ROA · Quality1.6%88 (on a fixed band)7%
Cost-to-income · Quality101.3%0 (on a fixed band)12%
Net interest margin · Quality2.6%43 (on a fixed band)7%
EPS CAGR 3Y · Growth8.4%70 (on a fixed band)10%
Revenue CAGR 3Y · Growth3.4%34 (on a fixed band)7%
NPL ratio · Balance sheetunavailableunavailable—
Cost of risk · Balance sheetunavailableunavailable—
Loan-to-deposit · Balance sheet34.5%100 (on a fixed band)5%
P/B · Valuation1.9x33 (vs peers)12%
P/E (TTM) · Valuation10.1x50 (vs peers)12%
Dividend yield · Returns3.4%83 (vs peers)10%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/3 factors with a value
  • Growth55/100 · 2/2 factors with a value
  • Quality61/100 · 4/4 factors with a value
  • Returns83/100 · 1/1 factors with a value
  • Valuation42/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

The Bank of N.T. Butterfield & Son Limited (NTB). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: net interest income 364.1 m USD in 2025; YoY growth 4.6%; net margin 38.2%; ROE 21.4%.

The estimated value range is 31.80–37.64 USD per share (median of 5 methods, agreement: medium); assumptions are illustrative. Against the central value of 36.80 USD, the price of 55.49 USD leaves a potential of -33.7% (value / price − 1) and a margin of safety of -50.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 59/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROE: 21.4%
  • ROA: 1.6%
  • EPS CAGR 3Y: 8.4%
  • Loan-to-deposit: 34.5%
  • Dividend yield: 3.4%

What contradicts it

  • Cost-to-income: 101.3%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): NPL ratio, Cost of risk.

Versus the vertical median

Commercial Banks, NEC (SIC 6029) · same industry (4-digit SIC) · compared with 20 companies

Multiples and returns vs the median

P/E
10.1x
vertical median 11.3x
below median (−9.9%)
EV/EBITDA
—
vertical median —
P/S
3.7x
vertical median 4.4x
below median (−17.1%)
P/B
1.9x
vertical median 1.3x
above median (+50.9%)
ROE
21.4%
vertical median 12.8%
above median (+67.4%)
Net margin
38.2%
vertical median 24.0%
above median (+59.3%)
EBIT margin
—
vertical median —
Revenue YoY
4.6%
vertical median 11.1%
below median (−58.4%)
Net debt/EBITDA
—
vertical median —
Dividend yield
3.4%
vertical median 1.1%
above median (+207.9%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BCHBank of Chile3,989.2 bn3.225,665.4%1,571,522.8%−10.7%+5% / +74%
HDBHdfc Bank Limited186.2 bn23.49.1%30.8%+15.2%−34% / −19%
KBKB Financial Group Inc.41.2 bn13.48.3%0.0%+17.8%+35% / +185%
NTBThe Bank of N.T. Butterfield & Son Limited2.2 bn10.121.4%38.2%+4.6%+20% / +103%
BLXForeign Trade Bank Of Latin America, Inc.1.9 bn9.216.2%67.8%+14.1%+14% / +110%
PGCPeapack Gladstone Financial Corp839.4 m16.47.7%16.4%+24.1%+75% / +91%
AVALGrupo Aval Acciones Y Valores S.A.300.1——−2.4%+3% / +93%
BMOBank Of Montreal——10.1%24.0%+10.6%+41% / +116%
SUPVGrupo Supervielle S.A.——13.6%12.2%−13.9%−48% / +73%
CMCanadian Imperial Bank Of Commerce——13.7%28.9%+13.8%+39% / +190%
BAPCredicorp Ltd——16.5%20.0%+7.0%+40% / +186%
VBNKVersaBank——6.1%22.8%+11.7%+90% / +193%
LYGLloyds Banking Group plc——10.0%24.0%+7.9%+3% / +141%
NWGNatWest Group plc——14.2%19.3%+3.1%−1% / +209%
TDToronto Dominion Bank——16.9%30.3%+18.4%+53% / +110%
INTRINTER & Co, INC.——11.1%14.2%+34.7%−56% / −25%
SANBanco Santander, S.A.——12.8%—+0.0%+12% / +194%
MUFGMitsubishi UFJ Financial Group, Inc.——9.1%14.6%+9.5%+39% / +156%
INGIng Groep NV——15.6%32.4%+21.8%+27% / +133%
BCSBarclays PLC——9.6%64.6%+3.7%+4% / +228%
RYRoyal Bank Of Canada——15.3%30.6%+16.1%+36% / +132%

1- and 3-year price returns: for NTB from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
34.42
Total return -35% · Per year -35%
60.89
Total return 13% · Per year 13%
91.76
Total return 70% · Per year 70%
3 years
32.65
Total return -33% · Per year -12%
65.06
Total return 29% · Per year 9%
107.77
Total return 109% · Per year 28%
5 years
30.98
Total return -31% · Per year -7%
69.53
Total return 45% · Per year 8%
126.57
Total return 155% · Per year 21%
What moves the 3-year price the most
  • Exit P/E± 16.27
  • Net margin± 11.39
  • Annual revenue growth± 9.45
  • Annual dilution± 0.96

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 18 Feb 2026; since then the company filed 6-K (27 Oct 2026), 6-K (18 Sept 2026), 6-K (31 Aug 2026), 6-K (14 Aug 2026), 6-K (05 Aug 2026).

In brief

Bank of N.T. Butterfield & Son Ltd is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, operating in Bermuda, the Cayman Islands and the Channel Islands and UK. The company matters because its revenue depends heavily on these small, open economies, and its balance sheet stays liquid, with deposits exceeding loans, against slow UK growth. The annual report shows net revenue reached 606.8 million USD in 2025, while total assets rose to 14.1 billion USD.

SWOT

Strengths

  • The company has a solid deposit base and a liquid balance sheet, with a large share of liquid assets, which gives it a margin of safety 1.
  • Strong market shares in Bermuda and Cayman limit direct competition and provide access to retail, corporate and wealth clients 1.
  • The trust and asset management business, with very large administered volumes, brings fee income diversified away from lending 1.

Weaknesses

  • High geographic concentration in a few small economies makes the company vulnerable to a local downturn 1.
  • The lack of a central bank acting as lender of last resort makes liquidity management critical to the balance sheet 1.
  • Costs of deposit insurance schemes in Bermuda and the Channel Islands add to operating expenses 1.

Opportunities

  • Growth in Bermuda's international sector and captive expansion could bring new deposits and trust clients 1.
  • Acquisitions of trust and banking assets, like past deals, could extend the client base in key markets 1.
  • Developing mortgage lending for high-value property and credit cards in the Channel Islands could diversify revenue 1.

Threats

  • A deterioration in the UK economy or in the Channel Islands financial sector could reduce loan quality and profits 1.
  • Sovereign rating downgrades could reduce the value of securities held and lead counterparties to demand more collateral 1.
  • Regulatory pressure on offshore jurisdictions and the global minimum tax could reduce the attractiveness of these markets 1.

Risks

  • Geographic concentrationhigh

    Activity is concentrated in a few small jurisdictions, so a local crisis could have a major effect on revenue and lending 1.

  • No lender of last resorthigh

    Without a central bank in Bermuda, the Cayman Islands or the Channel Islands, the company could struggle to meet its liquidity needs in a crisis 1.

  • Exposure to US government securitiesmedium

    Rating downgrades of the US could affect the value and liquidity of the investment portfolio if further downgrades follow 1.

  • Deposit insurance scheme costsmedium

    Contributions to deposit schemes in Bermuda and Guernsey could rise, which could reduce profitability 1.

  • Tourism dependencemedium

    A decline in tourism could reduce the value of commercial property and the ability of clients to repay loans 1.

Investment thesis

What would need to be true (bull case)

  • A liquid balance sheet, with deposits above loans, could support stable revenue even during periods of volatility 1.
  • Growth in Bermuda's international sector could bring new deposits and trust clients to the bank 1.
  • The acquisition and operational efficiency strategy could improve long-term returns on capital 1.

What would break the thesis

  • Concentration in a few small economies means a local shock could hit all main segments at the same time 1.
  • Slow UK growth and pressure on public finances could limit lending in the Channel Islands 1.
  • Competition from large global banks and non-bank firms could compress margins in deposits and wealth management 1.

What to watch

  • Evolution of net revenue by segment, especially the Channel Islands and UKQ1 2027
  • Level of deposits and liquidity compared with net loans2027
  • Evolution of sovereign ratings for Bermuda, Cayman and the Channel Islands2027
  • Contributions to deposit insurance schemes and related costsnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 18 Feb 2026; since then the company filed 6-K (27 Oct 2026), 6-K (18 Sept 2026), 6-K (31 Aug 2026), 6-K (14 Aug 2026), 6-K (05 Aug 2026).

The business

Butterfield is a full-service bank and wealth manager headquartered in Hamilton, Bermuda, founded in 1858 and listed on the NYSE since 2016 under the symbol NTB 1. It runs three geographic segments, Bermuda, the Cayman Islands and the Channel Islands and the UK, plus an Other segment covering The Bahamas, Canada, Mauritius, Singapore and Switzerland 1. The company relies on deposits: at December 31, 2025 it had 12.7 billion USD of total deposits and 4.4 billion USD of net loans, an excess of deposits over loans consistent with its prudent liquidity strategy 1.

The current strategy focuses on banking and wealth management, following the 2009 and 2010 restructuring, through exiting non-core markets, improving efficiency and acquisitions, including the Deutsche Bank trust business and ABN AMRO (Channel Islands) 1. Net revenue is mostly split between Bermuda and Cayman, although the Channel Islands and UK segment has grown steadily as a share 1. The company says its GAAP net income to common shareholders grew at a 9.5 percent compound annual rate between 2020 and 2025 1.

The company also administers very large custody and trust assets, but these are not the bank's own assets, so fee income from these services depends more on the level of assets administered than on the balance sheet 1.

Segments

Bermuda

The Bermuda segment generated 43.3 percent of net revenue in 2025 and offers retail, corporate banking, trust and wealth management, with a significant share of deposits 1.

Cayman

The Cayman segment accounted for 31.2 percent of net revenue in 2025 and includes retail, corporate and trust banking, and the company states it is a market leader in Cayman deposits 1.

Channel Islands and UK

The Channel Islands and UK segment generated 18.1 percent of net revenue in 2025 and offers deposits, mortgage lending, private banking and fiduciary services, with mortgages for high-value residential property in the UK 1.

Market context

Banking markets in Bermuda and Cayman are characterized by a limited number of participants and high barriers to entry, which supports the bank's position in deposits and lending 1. The international trust market is concentrated in a few jurisdictions, including Bermuda, Cayman, the Channel Islands, Hong Kong, Singapore and Switzerland, and leading trust law firms are the main source of new clients 1. The UK economy remains weak, with below-trend growth forecast at 1.0 to 1.5 percent per year, which pressures lending in the Channel Islands area 1.

Bermuda remains the world's largest captive domicile, and its international business sector is growing, which could support demand for banking and trust services 1. However, cost-of-living pressures and tourism swings could influence client behavior and credit quality 1.

Trends

  • Bank of England rate cutsmixed

    The Bank of England cut rates during 2025, which could compress the net interest margin and profitability in the Channel Islands business, but could also support demand for mortgage lending 1.

  • Growth of Bermuda's international businesstailwind

    The life reinsurance and captive insurance sector is attracting new capital and companies, which could increase deposits and demand for trust services 1.

  • Geopolitical tensions and tariffsheadwind

    Tariffs, sanctions and regional conflicts could weigh on confidence and market liquidity, and reliance on trade-sensitive sectors could affect the economies where the company operates 1.

  • Tourism and construction revenuesmixed

    Tourism and construction support the economies of Bermuda and Cayman, but a decline in tourism could reduce the value of commercial property and related loans 1.

Competitive position

Competition is strong both for deposits and for managing assets, and larger banks, global asset managers and non-bank firms can offer broader products, lower costs and easier access to capital 1. In Bermuda the bank competes with HSBC, Bermuda Commercial Bank and Clarien Bank, and in Cayman with Scotia Bank and CIBC FirstCaribbean 1.

In trust and wealth management, competition comes from specialized trust providers and larger international banks, and in the Channel Islands many licensed banks, including branches of global groups, operate 1.

  • HSBCHSBC

    Subsidiary of an international bank and the main competitor in Bermuda, according to the source 1.

  • Bermuda Commercial Bank

    Domestic Bermuda institution competing for deposits and loans 1.

  • Clarien Bank

    Domestic Bermuda institution active in the same banking market 1.

  • Scotia Bank

    Important competitor in the Cayman Islands across retail and corporate banking 1.

News & filings

In the press

The latest news item in our archive is from 01 Sept 2026; the newest SEC filing is from 27 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

Sources

  1. [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Bank of N.T. Butterfield & Son Ltd · 18 Feb 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.