"That these results were achieved despite the costs incurred to restructure our Treasury investment portfolio demonstrates the fundamental strength of the Bank. As indicated in our six-month report, the portfolio actions depressed interest earnings, which for the year declined by about $24 million. This was more than offset by fees and other income, which grew by over $35 million."
The Annual Report will reflect:
Total assets of $9.9 billion, up 22% because of growth in customer deposits.
Fee revenues of $180 million, up 17%.
Pre-tax expense growth of 3%.
Earnings per common share of $2.43, up 2%.
Mr. Henry B. Smith, the Bank's President and CEO, added that it is pleasing to be able to announce record earnings for the fifth consecutive year and noted that the Bank is positioned to do even better in the future. "Our core fee businesses are growing, both corporate and private, and we are moving aggressively to improve operating efficiency through formation of a group services unit to streamline delivery systems."
Mr. Gomez commented further that despite the Bank's good financial performance, the failure of the market to reward shareholders, over 80% of whom are Bermudian, has been a continuing disappointment. "To address this we are considering a secondary listing for the Bank's shares, as indicated in our announcement of June 26. The Bank has developed into a truly international organisation, with the major part of its revenues generated outside Bermuda. It is essential that our shareholders benefit from the value that has been created and, looking forward, that the Bank have access to markets with sufficient liquidity to support a continued expansion of its international presence."
For additional information please contact:
Ms. Alison J. Satasi, Finance and Planning
Tel: 441/299-6648