Butterfield Bank Group Reports Record Full Year Earnings

by Carla Johnson, Investors Offshore.com

23 February 2006

The Bermuda-based Butterfield Bank Group has reported record full year income for the year ending 31 December 2005 of $109.4 million, a year on year increase of 20.9%.

“These results reflect the strength of the Group’s core businesses that underpins our balanced international business model," commented Alan Thompson, President & Chief Executive Officer.

He continued:

"We were particularly pleased at the performance of our Cayman operation following the significant damage inflicted on the islands by Hurricane Ivan in 2004. We also continue to be very satisfied both with the progress made by our operations in Barbados and The Bahamas, and the integration of Leopold Joseph Holdings plc into our UK and Guernsey operations. We remain committed to enhancing shareholder value, as evidenced by the ‘1 for 10’ stock dividend issued last August and the dividend increase of 3 cents.”

Other financial highlights in the bank's unaudited results include: record net interest income up 23.0% at $182.2 million; record non-interest income up 10.0% at $172.1 million; record assets under administration up 27.4% to $102.4 billion; return on equity of 23.6%, up from 21.2%; efficiency ratio improved to 66.4% from 69.1%; and net interest margin improved to 2.1% from 1.9%.

Richard Ferrett, Executive Vice President & Chief Financial Officer, noted that:

“Our financial results in 2005 continue to reflect the balance and soundness of the Group’s business model, with approximately 50% of our revenues being generated from non-interest income.

"Significant increases were seen in the Bank’s revenue generation with net interest income and non-interest income increasing by 23.0% and 10.0% respectively. This reflects the growth in our customer deposit base and loan portfolio, the successful integration of our acquisitions in 2003 and 2004, and increased revenues generated by our asset management and fund administration businesses across the Group.”

Butterfield Bank offers a community banking services in Bermuda, Barbados and the Cayman Islands, encompassing retail and corporate banking and treasury activities.

In addition, the bank provides private banking, wealth management & fiduciary services and investment & pension fund administration services from its headquarters in Bermuda, and its subsidiary offices in the Cayman Islands, Guernsey, The Bahamas and the United Kingdom.

Recommended