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BCB Reports 62% Growth In Net Income
Hamilton, Bermuda, November 14, 2006 - Bermuda Commercial Bank Limited is pleased to announce unaudited financial results for the year ended September 30, 2006. Net income increased from $5.17 million at September 30, 2005 to $8.38 million at September 30, 2006, an increase of $3.21 million or 62.1%.(1) Diluted earnings per share increased to $1.67 per share compared to $1.04 per share one year ago. Strict cost discipline across all departments resulted in the Bank's efficiency ratio improving considerably to 52.9%, from 63.4% at September 30, 2005.
In recognition of both the strong growth in recurring net income and the one-time service fee income, the Board of Directors has resolved to increase the half-yearly dividend to $0.40 per share and a special dividend of $0.25 per share both to be paid on December 14, 2006, to shareholders of record as of December 6, 2006. Based on the recent Bermuda Stock Exchange bid price of $8.00 for the Bank's common stock this semiannual dividend of $0.40 along with the $0.30 dividend paid in May 2006, generates an annualized yield of 8.75% to the Bank's shareholders.
Chief Operating Officer, Ms. Dominique Smith, stated that, "after an eventful couple of months it is very pleasing to announce such solid results. The main driver of the Bank's profitability continues to be the consistent strength of BCB's deposit taking business. For the year ended September 30, 2006 net interest income increased by 40.9% to $11.60 million from $8.23 million at September 30, 2005."
"Due to the Bank's strong income growth, performance ratios have improved considerably. Return on equity was 15.30% for the year compared to 10.39% for the prior year while return on assets increased to 1.27% from 0.72%."
"BCB's experienced management team and qualified staff are totally committed to the Bank and to providing excellent customer service. The Bank has no debt. Our balance sheet is highly liquid with cash and cash equivalents making up over 99% of total assets."
"Several months ago the Board of Directors decided that a merger or outright sale to a larger financial institution was desirable to further the Bank's growth. The subsequent issues concerning the Bank's largest shareholder, First Curacao International Bank, have served to reinforce this strategic decision. Discussions are underway with a number of interested parties which, it is expected, will result in a conclusion within the next two months."
The following table depicts selected financial data to accompany the preceding narrative.
|
Summary Financial Data | ||
|
Statement of Operations for the year ended | ||
|
|
September 30, 2006 (Unaudited) (1) |
September 30, 2005 (Audited) |
|
Net interest income |
$11,601,759 |
$8,230,348 |
|
Total income |
$17,791,130 |
$14,137,503 |
|
Total expenses |
$9,407,598 |
$8,967,311 |
|
Net income |
$8,383,532 |
$5,170,192 |
|
Dividends |
$4,130,211 |
$2,057244 |
(1) To enhance the understanding of the Bank's results and to aid comparison with prior and future periods, all figures reported exclude one-time, non recurring service fee income of $1.06 million. Net income, including this item, was $9.44 million for the year ended September 30, 2006.