Butterfield profits up

The Bank of N.T. Butterfield & Son Limited has reported net income for the third quarter ended 30 September 2005 of $30.6 million, up 34.0 per cent year on year.

This brings the year to date net income to $85.0 million, a 23.4 per cent increase year on year. Diluted earnings per share were $1.18, up 29 cents year on year. Other financial highlights of the quarter compared to last year include:

Return on equity of 25.7per cent, up from 22.0per cent

Return on assets of 1.3per cent, up from 1.2per cent

Net interest income of $47.6 million, up 10.7per cent

Non-interest income of $43.7 million, up 11.1per cent

Total assets of $8.9 billion, up 10.6per cent

Assets under administration of $96.5 billion, up 32.2per cent

Assets under investment management of $9.8 billion, up 10.7per cent

‘It is pleasing to note that the Group’s core businesses, both in Bermuda and overseas, continue to perform in line with expectations,’ said Alan Thompson, president and chief executive officer.

Butterfield Bank (Cayman) Limited recorded net income of $11.4 million, up year on year by $6.9 million; the increase in part reflects provisions taken last year in the wake of Hurricane Ivan. Total income, at $20.4 million, was up 68.2per cent, reflecting strong growth in revenues from investment and pension fund administration and banking activities. The quarter saw credit recoveries of $0.3 million following a further review of the loan portfolio post-Hurricane Ivan. Total assets increased year on year by 5.3per cent to $2.2 billion and client assets under administration increased by 55.5per cent to $31.2 billion.

‘Most pleasing was the improvement in the Group’s efficiency ratio, at 64.1per cent for the quarter compared to 73.3per cent for the same period a year ago,’ said Richard Ferrett, executive vice president and chief financial officer. ‘Our return on equity continues to remain solid at 25.7per cent for the quarter, compared to 22.0per cent for the same quarter a year ago. Significant increases were seen year on year in the Group’s revenue generation with net interest income increasing by 10.7per cent and non-interest income increasing by 11.1per cent.’

Comments are closed.