Former Bank Of Butterfield CEO Says Size Isn't Everything

by Mike Godfrey, Tax-News.com, Washington

04 March 2002

In an interview with The Royal Gazette last week, former CEO of Bermuda's oldest bank, the Bank of Butterfield, stated that there was no reason why the organisation should not find itself once again on an equal footing with its main competitor, the Bank of Bermuda, before long.

Calum Johnston, who has been credited for turning the bank around following a sticky patch in the late 1990s, told the Bermudian newspaper that: 'We were bigger than Bank of Bermuda at one time and we lost our way but there is nothing to say we can't catch up again.'

He added that although there are certain things that the Bank of Butterfield cannot achieve at present because of its relative smallness, its investors are receiving good returns, which he considers to be one of the most important factors in the bank's favour.

'I don't think that size is any kind of measurement that is serious,' he told The Royal Gazette. 'Now in certain businesses you have got to be big...There are certain things this bank can't do because it is not a big bank. But that is not to say that the people who have invested in it can't get a jolly good run for their money.'

When questioned about whether the Bank of Butterfield intends to list on Nasdaq like its main rival, Mr Johnston said that it was taking its time over the decision, and was happy to let the Bank of Bermuda assume the lead in this area.

'It's a double edged sword, listing on Nasdaq,' he explained. 'If you have a hiccup, you get killed. You are under huge scrutiny.'

Mr Johnston stepped down from his post in January after five years of service, and was replaced as President of the Bank of Butterfield by Alan R. Thompson.

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