Butterfield Bank’s net income up

The Bank of N.T. Butterfield & Son Limited (‘Butterfield Bank’) has reported a 2007 third quarter net income of $39.6 million, a record for the group and up 14.4 per cent year on year. Pre-tax net income was $41.6 million, up 16.3 per cent on a year ago. Diluted earnings per share were $0.46, up 7 cents year on year and up 5 cents on the previous quarter. Other financial highlights of the quarter compared to the same period a year ago include:

Return on equity of 27.1 per cent, up from 24.5 per cent

Net interest income of $63.8 million, up 15.9 per cent

Non-interest income of $55.4 million, up 15.1 per cent

Total revenue of $121.0 million, up 14.1 per cent

Efficiency ratio of 64.6 per cent, improved from 66.4 per cent

Customer deposits of $10.7 billion, up 16.4 per cent

Customer Loans at $4.0 billion, up 13.6 per cent

Total Assets of $12.1 billion, up 14.4 per cent

Assets under administration of $141 billion, up 22.7 per cent

The board has approved a third quarter dividend of 16 cents per share, which remains unchanged from the previous quarter when taking into account the impact of the stock split in August when shareholders received two additional shares for each one held prior to the record date. The dividend is payable on Wednesday 21 November 2007 to shareholders of record on Wednesday, 7 November, 2007.

Alan Thompson, president and chief executive officer, said: ‘Against the background of challenging and indeed uncertain global market conditions, our focused business strategy and diversified business lines continue to deliver solid financial results and the performance of Group’s core businesses remains in line with expectations. Our Bermuda businesses continue to do well; in particular the Community Banking division has demonstrated significant asset and revenue growth as we strive to attract new customers whilst retaining existing ones.’

Butterfield Bank (Cayman) Limited recorded record net income of $14.9 million, up year on year by $1.2 million, or 8.8 per cent, reflecting continued strong business growth. Total revenue, at $29.2 million, was up 15.5 per cent, due to strong growth in revenues from investment and pension fund administration, asset management and banking activities. Total assets increased year on year by 17.8 per cent to $3.0 billion, reflecting strong growth in customer deposits, up 22.6 per cent to $2.6 billion. Client assets under investment management and administration grew by 23.4 per cent and 38.6 per cent to $1 billion and $50.9 billion respectively.

‘Strong performances were also seen from our Bahamas, Cayman, Guernsey and UK businesses. These results reflect our dedication to providing excellent customer service and our continuing commitment to being a strong community partner in the jurisdictions in which we operate. We are also pleased to report the successful expansion of our wealth management business through the acquisition on 26 October of Bentley Reid Group, with offices in Hong Kong, London and Malta. This is a well established and prestigious international wealth management company and the transaction increases our existing private client business and enables us to expand into new international markets,’ concluded Mr. Thompson.

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