v3.25.4
Income taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes
Note 24: Income taxes

Beginning January 1, 2025, the Bank adopted Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU provides additional disaggregated information about income taxes. The Bank is required to adopt these amendments for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025. The Company has adopted this standard on a prospective basis. Comparatives were prepared under the prior Standards.

The Bank is incorporated in Bermuda, and pursuant to Bermuda law is not taxed on either income or capital gains. The Bank’s subsidiaries in the Cayman Islands and The Bahamas are not subject to any taxes in their respective jurisdictions on either income or capital gains under current law applicable in the respective jurisdictions. The Bank’s subsidiaries in Canada, the United Kingdom, Channel Islands, Switzerland, Singapore and Mauritius are subject to the tax laws of those jurisdictions.

For the years ended December 31, 2025, 2024, and 2023, the Bank had no uncertain tax positions.

The Bank records income taxes based on the enacted tax laws and rates applicable in the relevant jurisdictions for the years ended December 31, 2025, 2024, and 2023. For the years ended December 31, 2025, 2024, and 2023, the Bank did not incur any interest or pay any penalties.

Year ended
Income (loss) and income tax expense (benefit) from continuing operationsDecember 31, 2025
Domestic
Income from operations65,164 
Income tax benefit (expense)— 
Net income - Domestic65,164 
Foreign
Income from operations172,802 
Income tax benefit (expense)(6,024)
Net income - Foreign166,778 
Total Net Income231,942 

Year ended
Income taxes in consolidated statements of operationsDecember 31, 2024December 31, 2023
   Current tax expense3,949 1,909 
   Deferred tax (recovery) expense582 (1,142)
Total tax (benefit) expense 4,531 767 
Reconciliation between the Effective Income Tax Rate and the Statutory Income Tax Rate
Year ended
December 31, 2025
$%
Foreign tax effects
Guernsey
Income tax expense3,065 1.3 
Expenses not deductible for tax purposes432 0.2 
Prior year tax adjustments34 — 
Other92 — 
Jersey
Income tax expense720 0.3 
Expenses not deductible for tax purposes5 — 
Prior year tax adjustments209 0.1 
Other(65)— 
UK
Income tax expense513 0.2 
Expenses not deductible for tax purposes224 0.1 
Utilisation of tax losses brought forward(266)(0.1)
Other(68)— 
Canada
Income tax expense547 0.2 
Utilisation of tax losses brought forward(17)— 
Switzerland
Income tax expense373 0.2 
Change in valuation allowance(169)(0.1)
Expenses not deductible for tax purposes95 — 
Singapore
Income tax expense49 — 
Expenses not deductible for tax purposes210 0.1 
Prior year tax adjustments5 — 
Mauritius
Income tax expense33 — 
Other3 — 
Income tax (benefit) expense at effective tax rate6,024 2.5 

Year ended
December 31, 2024December 31, 2023
$%$%
Income tax expense in international offices taxed at different rates4,440 2.0 2,814 1.2 
Expenses not deductible for tax purposes864 0.4 454 0.2 
Prior year tax adjustments(196)(0.1)45 — 
Effect of change in tax rate(117)(0.1)(76)— 
Change in valuation allowance(566)(0.3)(2,192)(1.0)
Other - net106 — (278)(0.1)
Income tax (benefit) expense at effective tax rate4,531 1.9 767 0.3 
Deferred income taxesDecember 31, 2025December 31, 2024
Deferred income tax asset
   Tax loss carried forward3,0893,783
   Allowance for compensated absence22 23 
Deferred income tax asset before valuation allowance3,111 3,806 
Less: valuation allowance (485)(721)
Deferred income tax asset after valuation allowance2,626 3,085 
Deferred income tax liability
   Fixed assets(472)(531)
   Pension asset(1,157)— 
Total deferred income tax liability(1,629)(531)
Net deferred income tax assets 997 2,554 

Management assesses the available positive and negative evidence to evaluate if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, as at December 31, 2025, a valuation allowance of $0.5 million (December 31, 2024: $0.7 million) has been recognized to record only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carry-forward period change, or if there are changes in the available positive and negative evidence.

The Bank has net taxable loss carry forwards related to the Bank’s international operations of approximately $13.7 million (December 31, 2024: $16.9 million). Of these losses available to carry forward, $12.9 million (December 31, 2024: $16.2 million) have an indefinite life.