Butterfield Bank income up

The Bank of N.T. Butterfield & Son Limited (Butterfield Bank) today reported 2006 first quarter net income of $33.1 million, up 36.0 per cent year on year. Diluted earnings per share were $1.26, up 31 cents year on year. Other financial highlights of the quarter compared to last year include:

• Return on equity of 26.3 per cent, up from 22.7 per cent

• Return on assets of 1.4 per cent, up from 1.1 per cent

• Efficiency ratio of 63.3 per cent, improved from 66.9 per cent

• Net interest income of $48.9 million, up 19.6 per cent

• Non-interest income of $47.1 million, up 12.4 per cent

• Total assets of $9.7 billion, up 5.3 per cent

• Assets under administration of $107 billion, up 18.6 per cent

The board has decided to maintain the quarterly dividend at 44 cents per share, payable on Monday 17 May to shareholders of record on Thursday 4 May 2006.

Alan Thompson, president and chief executive officer said: ‘It is pleasing to note the strong year on year growth across the Group’s core businesses, both in Bermuda and overseas. Strong performances were also seen from our Bahamas, Cayman and Guernsey businesses.’

Richard Ferrett, executive vice president and chief financial officer, said, ‘We continue to be pleased with the improvement in the Group’s efficiency ratio, at 63.3 per cent for the quarter compared to 66.9 per cent for the same period a year ago. Our return on equity continues to remain above our target of 20 per cent, at 26.3 per cent for the quarter, compared to 22.0 per cent for the same quarter a year ago. Significant increases were seen also year on year in the Group’s revenue generation with net interest income increasing by 19.6 per cent and non-interest income increasing by 12.4 per cent. We are also pleased to note that Standard & Poor’s has this week revised its ratings outlook on Butterfield Bank from ‘Stable’ to ‘Positive’ citing our ‘sound business profile, solid positions in the Bermuda and Cayman Islands commercial banking markets and reputation in asset management and funds servicing’.’

Erwin Dikau, chief financial officer for Butterfield Bank (Cayman) Limited, commented that the Cayman operations “recorded net income of $12.8 million, up year on year by $3.5 million, or 37.3 per cent; the increase reflecting strong business growth. Total income, at $23.1 million, was up 32.3 per cent, reflecting growth in revenues from investment and pension fund administration and banking activities. Total assets now stand at $2.7 billion, up 9.9 per cent, and the loan portfolio increased year on year by 7.1 per cent. Client assets under administration now stand at $34.5 billion, up 16.5 per cent on the previous year, reflecting growth in investment and pension fund administration services.”

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