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12 February 2008
Butterfield Bank Reports Record Full Year Earnings, Up 8.9% to $146.0 million. Announces ‘One-For-Ten’ Stock Dividend

The Bank of N.T. Butterfield & Son Limited (“Butterfield Bank Group” or “the Group”) today reported net income for the full year ended 31 December 2007 of $146.0 million, a record for the Group and up 8.9% year on year. Pre-tax net income, at $153.0 million was up 10.9% on 2006. Diluted earnings per share were $1.68, up 15 cents or 9.8%, on 2006 when restated for the impact of the stock split in August 2007.

Other financial highlights include: 

  • Record non-interest income up 13.4% at $219.7 million
  • Record net interest income up 16.4% at $250.6 million
  • Record customer loans up 9.7% at $4.1 billion
  • Record assets under administration up 17.9% to $145.7 billion
  • Record assets under management up 18.5% to $11.9 billion
  • Return on equity of 25.2%, up from 24.6%
  • Net interest margin improved to 2.18% from 2.15%

 

Butterfield Bank (Cayman) Limited achieved record net income of $57.2 million, up year on year by $3.8 million, or 7.1%. Net interest income before credit provisions was up 11.3% on 2006, at $62.4 million, while non-interest income totaled $52.4 million, an increase of 20.2% on 2006, reflecting strong growth in revenues from investment and pension fund administration revenues, up 32.5% and asset management, up 16.1%. Total assets declined modestly, down 2.3% to $2.7 billion. Client assets under administration increased by 33.2% to $53.5 billion and assets under management at 31 December 2007, at $1.2 billion, were up 7.4% year on year.

 

Reflecting the Group’s continuing strong earnings performance and commitment to enhancing shareholder value the Board has approved a one-for-ten bonus share issue, which equates to a 10% stock dividend, in addition to maintaining the quarterly dividend at 16 cents per share. Both the cash and stock dividends are payable on Wednesday 12 March 2008 to shareholders of record on Wednesday 20 February 2008. The bonus shares will be eligible for dividends from the second quarter of 2008.

 

Alan Thompson, President & Chief Executive Officer, commented: “We continue to be pleased with the solid growth in our financial performances across the Group in what has certainly been challenging and uncertain global market conditions. We continue to expand internationally, as evidenced by the establishment of a trust company in Switzerland, the establishment of a fund administration company in Canada and the acquisition of the Bentley Reid Group, with offices in Hong Kong, Malta and the United Kingdom. These offices increase our existing private client and fund administration business and enable the Group to expand into new international markets. We remain committed to enhancing shareholder value, as evidenced by the ‘1 for 10’ stock dividend announced today. These results are testament to the creativity, commitment and enthusiasm of our employees.”

 

Richard Ferrett, Executive Vice President & Chief Financial Officer, said, “The return on equity for the year, at 25.2%, is the highest seen for over a decade and in keeping with our target to achieve a return of over 20%. It is pleasing to note that our balance sheet remains strong and highly liquid with customer deposits up $0.7 billion year on year to $10.4 billion. We are also pleased with the significant year on year increase seen in the Group’s revenue generation, with total revenue up 13.2% to $470.0 million.“


 


Media Contact:
Rhonda Serrano
Marketing & Communications
Tel: (345) 815-7549
Email: marketing@butterfieldbank.ky

 

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