Butterfield Bank (Cayman) Limited, a wholly-owned subsidiary of Butterfield Group, also announced today that it recorded net income from continuing operations before investment gains and losses of $8.4 million for the year ended 31 December 2009, down $19.0 million from $27.4 million for the year ended 2008. Non-Interest Income declined $1.7 million to $33.7 million, primarily on lower foreign exchange revenues. Net interest income before credit provisions was down $15.3 million (30.7%) reflecting the sustained low US interest rate environment. Loan loss provisions increased by $7.2 million, following specific credit provisions of $6.8 million primarily related to a hospitality loan. Non-Interest expenses from continuing operations declined by $ 5.2 million.
Gains on sales of investments of $0.3 million brought reported net income to $8.7 million in 2009 compared with a net income of $78.3 million in the previous year. Net income in 2008 was impacted by the recognition of other than temporarily impaired investment losses of $29.7 million offset by Net Income from Discontinued Operations of $80.6 million following the sale of its fund services business.
Total assets now stand at $2.6 billion compared to $3.3 billion at 2008 year-end, reflecting lower level of short-term deposits from hedge fund clients. Assets under administration, at $5.0 billion, were down $0.4 billion from the position at year end 2008, whilst assets under management increased 14.6% to $857.2 million. Total capital ratio as at 31 December 2009 was 13.3%.
Butterfield Group today reported an audited net loss for the full year ended 31 December 2009 of $213.4 million, or $2.34 per fully diluted share, compared to audited net income of $4.8 million, or $0.05 per fully diluted share, in 2008. These losses resulted from a write-down of mortgage-backed securities and substantially higher commercial loan loss provisions.
“We are pleased with the financial performance of Cayman operations against the back-drop of a severe global economic recession. Obviously, the $550 million capital strengthening is a hugely positive move for Butterfield Group, our clients and employees,” states Conor O’Dea, Managing Director, Butterfield Bank (Cayman) Limited. “At Butterfield, we pride ourselves on being forward-thinking, we take our commitment to our customers very seriously. We remain focused on providing excellent customer service allied to a comprehensive range of retail banking and wealth management products in the Cayman Islands.”
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