Butterfield reports record earnings

Butterfield Bank reported that its 2006 earnings hit $134.1 million – a new record for the bank.

The 22.6 per cent increase on earnings year-on-year is good news for shareholders as the bank has decided to increase quarterly dividend payments to 48 cents per share from 4 cents a share.

Diluted earnings per share were $4.60, up 75 cents or 19.5 per cent, on 2005. Other financial highlights include:

Record net interest income up 18.1 per cent at $215.2 million

Record non-interest income up 12.5% at $193.7 million

Record total assets up 21.0 per cent at $11.1 billion.

Record assets under administration up 20.7 per cent to $123.6 billion.

Return on equity of 24.6 per cent, up from 23.6 per cent.

Efficiency ratio improved to 64.8 per cent from 66.4 per cent.

Net interest margin improved to 2.15 per cent from 2.06 per cent.

‘We are pleased with the strong growth in our financial performances across the Group in a challenging and competitive environment,’ said Alan Thompson, President and Chief Executive Officer.

‘In all our jurisdictions we have focused on the successful implementation of our business strategy. We continue to expand internationally, as evidenced by the establishment of an asset management business in Switzerland and planned expansion of our fund administration business into Canada.’

Butterfield Bank (Cayman) Limited achieved record net income of $53.4 million, up year on year by $7.6 million, or 16.5 per cent. Net interest income was up 21.4 per cent on 2005, at $55.5 million, while non-interest income tottaled $43.6 million, an increase of 19.5 per cent on 2005, reflecting strong growth in revenues from banking services and investment and pension fund administration.

Total assets increased year on year by 8.3 per cent to $2.8 billion, whilst client assets under administration increased by 26.8 per cent to $40.2 billion. Assets under management at 31 December 2006 were $1.1 billion, in line with a year ago.

‘Our financial results in 2006 continue to reflect the balance and soundness of the Bank’s business model,’ said Conor O’Dea, Managing Director of Butterfield Bank (Cayman) Limited.

‘The Cayman operations play a significant role in the success of the Group and it is with the loyalty of our customers allied to the dedication of our employees that make this possible.’

0
0

NO COMMENTS