The Bank of N.T. Butterfield & Son Limited reported net income for the second quarter ended 30 June 2005 of $30.1 million, up 47.7% year on year. This brings the year to date net income to $54.4 million, an 18.2% increase year on year. Diluted earnings per share were $1.28, up 41 cents year on year and up 24 cents on the previous quarter.

Other financial highlights of the quarter include:

• Return on equity of 27.3%, up from 20.1% a year ago
• Net interest income of $45.8 million, up 30.2% year on year
• Non-interest income of $44.7 million, up 8.6% year on year
• Total assets up 13.0% year on year to $9.1 billion
• Assets under administration up 36.7% year on year to $94.2 billion
• Assets under investment management up 16.5% year on year to $9.9 billion.

Alan Thompson, President & Chief Executive Officer, said: *“These results yet again demonstrate the continuing effectiveness of our business model in a highly competitive environment. Our strategic focus on developing our core businesses has resulted in growth across the jurisdictions in which we operate.”*

**Butterfield Bank (Bahamas) Limited** provides private banking and wealth management & fiduciary services to individual and institutional clients, as well as investment fund administration. Services include:

• private banking
• offshore trusts
• portfolio administration and securities transactions
• company formation and administration
• fund administration and registrar services

For the 2nd quarter, The Bahamian businesses achieved net income of $0.4 million on total revenues of $1.6 million; up from $0.1 million and $1.5 million respectively a year ago, reflecting growth in revenues from fund administration services. Total assets have increased year on year by 40.9%, to $84 million and client assets under administration are up 13.9% to $4.0 billion.