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Butterfield Bank Announces Impressive Q3 Results

by Carla Johnson, Investors

13 November 2006

Butterfield Bank (Cayman) Limited has reported third quarter net income of $13.7 million, up year on year by $2.3 million, or 20.1%, reflecting continued strong business growth and the contribution from the Bank’s equity interest in Island Heritage Insurance.

Total revenue, at $25.2 million, was up 23.9%, reflecting strong growth in revenues from investment and pension fund administration and banking activities. The quarter saw credit provisions of $0.3 million compared to recoveries of $0.3 million last year. Total assets increased year on year by 12.0% to $2.5 billion and client assets under administration increased by 17.8% to $36.8 billion.

The Bank’s parent company, The Bank of N.T. Butterfield & Son Limited of Bermuda, reported net income for the third quarter ended 30 September 2006 of $34.7 million, up 13.1% year on year. This brings the year to date net income to $101.6 million, a 19.5% increase year on year. Diluted earnings per share were $1.18, up 11 cents year on year and up 2 cents on the previous quarter.

The Board has approved a third quarter dividend of 44 cents per share.

Commenting on the numbers, Alan Thompson, President & Chief Executive Officer of The Bank of N.T. Butterfield & Son Limited, said:

“In a challenging and highly competitive business environment, both in Bermuda and overseas, our tested strategy continues to deliver solid financial results and the Group’s core businesses continue to perform in line with expectations."

"During the quarter we announced Butterfield’s entry into the Swiss private banking market through the establishment of a wholly owned subsidiary, Butterfield Asset Management (Switzerland) Limited. This is in line with our strategy of increasing the Bank’s European Private Banking presence and is a logical extension to the service which we provide in London and Guernsey.”

Sheree Ebanks, Director of Butterfield Bank (Cayman) Limited, added:

“Our Cayman businesses continue to contribute to the Group’s solid results. These results reflect our dedication to providing excellent customer service and our continued commitment to being a strong community partner in the Cayman Islands and the jurisdictions in which we operate.”

Butterfield has also disclosed that it has pulled out of the running to buy troubled rival Bermuda Commercial Bank (BCB).

The announcement was made in a statement to the Bermuda Stock Exchange last week, but Butterfield declined to elaborate on its reasons for pulling out of the deal.

BCB's chairman was recently escorted to the Netherlands to face questions about alleged money laundering.

Regulators were hopeful that Butterfield would finalise a deal to buy BCB because it is regarded as a well-run institution.

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