Butterfield Bank this past week reported net income for the second quarter ended 30 June 2006 of $33.9 million, up 12.7% year on year. Year to date net income increased to $66.9 million, up 23.1%.
A release from the institution noted other financial highlights of the quarter as follows:
• **Return on equity**, at 25.1%, remains in excess of 20%
• **Efficiency ratio** of 64.8%, improved from 65.0%
• **Net interest income** of $53.6 million, up 17.1%
• **Non-interest income** of $49.3 million,up 10.5%
• **Customer deposits** of $8.8 billion, up 14.8%
• **Total assets** of $10.2 billion, up 12.1%
• **Assets under administration** of $108.6 billion, up 15.9%
According to Alan Thompson, President & Chief Executive Officer, these results again demonstrate the continuing effectiveness of Butterfield’s business model in a highly competitive environment. *”Our strategic focus on developing core businesses has resulted in continued growth across the jurisdictions in which we operate.”*
During the quarter Standard & Poor’s placed Butterfield Bank’s investment grade ratings on ‘positive watch’, noting its continuing improvements in profitability, conservative and highly liquid balance sheet, and strong market position in Bermuda.
** The Bahamas**
Butterfield’s Bahamas operations – Butterfield Bank (Bahamas) Limited and Butterfield Fund Services – achieved net income of $0.5 million on total revenues of $2.2 million, up from $0.4 million and $1.6 million respectively a year ago. This reflected solid growth in net interest income and fees from fund administration.
Customer deposits have increased year on year by 42.0% to $104 million, and the loan portfolio, at $12 million, has doubled over the past year – reflecting the Bank’s mortgage product. Client assets under administration were $4 billion as at 30 June 2006.
**Bonus Share Issue**
In recognition of the Group’s continuing strong earnings performance and commitment to enhancing shareholder value the Board approved a one-for-ten bonus share issue, which equates to a 10% stock dividend, effective Monday 7 August 2006, in addition to maintaining the quarterly dividend at 44 cents per share. The cash dividend is payable on Friday, August 18, 2006 to shareholders of record on Monday, August 7, 2006. The bonus shares will be eligible for dividends commencing November 2006.
As a specialist offshore financial services provider the Butterfield Group provides private banking, wealth management, fiduciary services, and investment and pension fund administration services from its headquarters in Bermuda, and its subsidiary offices in the Cayman Islands, Guernsey, **The Bahamas** and the United Kingdom. It offers a full range of community banking services in Bermuda, Barbados and the Cayman Islands, encompassing retail and corporate banking and treasury activities.