Bank of Butterfield Earnings Up 10% Year On Year

by Phillip Morton, Investors Offshore.com

29 July 2004

The Bank of Butterfield, Bermuda’s oldest bank, reported second quarter net income of $21.8 million, representing an increase in net income for the period of $1.9 million, or 9.8%, over that achieved at the same stage last year.

Excluding a $5.8 million gain in that quarter from the sale of a venture capital investment, the results show that net income increased $1.5 million or 7.3% over the previous quarter.

The bank’s earnings per share for the quarter also rose, by 8 cents to 105 cents compared to the same period in the previous year, while for the first six months of 2004 net income of $47.9 million is up 32.1% year on year.

Reflecting continued strong earnings performance, the bank’s Board has approved a one-for-ten bonus share issue, which equates to a 10% stock dividend, effective 5 August 2004, in addition to maintaining the cash dividend at 38 cents per share.

Alan Thompson, President and Chief Executive Officer noted: “These results demonstrate that our business model continues to be successful in a highly competitive environment. The acquisition of Leopold Joseph during the quarter is entirely consistent with our stated group strategy of growing our business in the UK and Guernsey markets and its integration with our existing businesses is fully in line with expectations.”

Meanwhile, Richard Ferrett, Executive Vice President & Chief Financial Officer, commented: “It is particularly pleasing to note that net income for the quarter from our Bermuda and Cayman businesses increased year on year by 14.3% and 17.6% respectively, reflecting strong growth across all business lines. In addition, for the fifth consecutive quarter the Group’s Return on Equity exceeded 20%, at 20.9%.”

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