Butterfield Group reported an increased annual net income of US$162.7 million for 2021, compared to $147.2 million the previous year.
The bank’s core return on average common equity was 18.7%, up from 17.3% in 2020.
Butterfield’s efficiency ratio, which divides non-interest expenses by revenue, improved, dropping from 67.6% in 2020 to 65.9% last year.
Michael Collins, Butterfield’s chairman and chief executive officer, said, “Butterfield has performed well throughout the past year, as we embraced new opportunities and managed the health and safety challenges of the pandemic.”
He said, the group continued to navigate the very low interest rate environment by improving efficiencies and leveraging technology.
“With an improved interest rate outlook for 2022, we are well positioned with Butterfield’s historically asset sensitive balance sheet,” Collins added.
Butterfield’s higher annual net income was mainly the result of higher non-interest income based on increased banking and foreign exchange revenues, as well as lower staff-related costs following a restructuring programme and reduced provisions for credit losses in an improving economy.
This was offset by a decrease in net interest income due to both lower interest income from investments and loans in the low interest rate environment.
At the end of 2021, the bank had $15.3 billion in total assets, an increase of $600 million over the previous year.
The bank’s loan portfolio of $5.2 billion was marginally larger, by $79.9 million, than in 2020.
The growth of Butterfield’s loan book in the Cayman Islands and the Channel Islands continued to outpace Bermuda last year.
The bank’s Cayman Islands as well as the Channel Islands and UK segments saw growth in their residential mortgage portfolios, which was partially offset by the repayment of a number of commercial facilities and commercial real estate facilities in the Bermuda and Channel Islands and UK segments during the period.
Corporate deposits increased in Cayman and the Channel Islands, whereas Bermuda saw corporate deposit outflows.
Butterfield’s total assets under administration for the trust and custody businesses increased to $106.4 billion and $36.8 billion, respectively, as of 31 Dec. 2021, from $104.1 billion and $32.4 billion 12 months earlier.
Assets under management of $5.5 billion were marginally down at the end of last year from $5.6 billion at the end of 2020.
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