After announcing $550 million in
new capital this week, Butterfield Bank (Cayman) Limited Managing Director Conor O’Dea has expressed enthusiasm and confidence
in the group’s Cayman operation, as well as the franchise.
“This capital raise has put the
Butterfield Group in a very competitive position in the market allowing us to
de-risk the Butterfield Group balance sheet and position us for good, consistent
growth going forward,” he stated.
Mr. O’Dea has acknowledged that
there have been various interpretations of the transaction within the industry
and media, further commenting that the Bank’s brand remains strong.
“On behalf of all the bank’s
employees, I would thank our customers for their loyalty over the years and
especially since the onset of the current global economic recession.
Mr. O’Dea also outlined Cayman’s
financial results for 2009, giving some context for customers, stating he
encourages “customers to engage our
customer service employees to address any concerns they may have regarding any
aspect of the bank.”
“Cayman has maintained a strong financial
performance, reporting net income of $8.7 million in 2009 after a specific loan
loss provision of $6.4 million on one Caribbean hospitality loan. Obviously, the financial performance is down
over previous years given the historically low dollar interest rates, which
have prevailed for the past year impacting our net interest income. We have
continued to lend money to our customers to ensuring that we play our part in
keeping the local economy active.
Mr. O’Dea is confident that customers will be pleased with the
outcome of the capital raising transaction, crediting the company’s team who
have gone above and beyond to communicate with the Bank’s customers. “We have outstanding relationship managers at Butterfield, and they
have made sure their clients are well-equipped with results information and details
of the capital transaction. This has been a transparent process aimed to retain
the confidence of our loyal customers.
“The investors did extensive due
diligence on the Butterfield Group in all jurisdictions in which we operate,”
stated Mr. O’Dea. “And the completion of the capital raise involved considerable
effort by all parties to conclude it successfully.”
Fitch Ratings has reaffirmed
Butterfield’s long-term issuer default rating at ‘A-‘. Moody’s has reaffirmed
the Bank’s Prime-1 short-term deposit rating and given a long-term deposit
rating of ‘A2’. S&P has also reaffirmed their counterparty credit rating of
“In trying economic times,
strategic partnerships are key for organisations, which are looking to the
future,” Mr. O’Dea elaborated. “It is our job as a bank to serve our customers
and communities in which we operate whilst constantly thinking about evolving,
improving and changing, so that we can remain competitive. We must retain the
loyalty and confidence of those customers and communities.
“The successful completion of the
US$550 million capital raise by the Group strengthens the financial position of
the Butterfield Group,” closed Mr. O’Dea. “We are setting our sights on
building an even stronger franchise for our stakeholders. Everyone will benefit
in the end.”