current financial year were $28.95 million, also a record and up $9.77 million, or 50.9%, on the like period in 1999 and up $7.78 million (+36.7%)
on the second half of last fiscal year. The Board has decided to increase the quarterly dividend by 2 cents (+7.7%) to 28 cents per share.
Commenting on the Bank's performance, Calum Johnston, President & Chief Executive Officer said, "This is the tenth consecutive quarter of earnings growth and all our businesses, both in Bermuda and abroad, are performing in line with or better than the objectives we set ourselves. Our strategy of focusing on the Bank's core strengths and improving efficiency is having the
desired effect, particularly in terms of the return on shareholders' equity, which currently stands at 22.2%, the highest the Bank has achieved since 1982."
Richard Ferrett, Executive Vice President & Chief Financial Officer stated that "First half 2000/01 earnings per share of $1.64 was a record for the Bank. This represents an increase of 60 cents, or 57.7%, on the corresponding period in 1999 and 46 cents, +39.0%, on the second half of
last fiscal year. Both net interest income and fee income are also at record levels. It is particularly pleasing that total expenses for the first half year decreased by $0.59 million, or 0.9%, to $61.83 million compared to a year ago. As a direct result, the Group's efficiency ratio improved from 76.5% to 68.1%.
"First half net interest income of $46.39 million is up year on year by $5.89 million, or 14.5%. This reflects significant growth in customer
deposits, increases in loans, investments and deposits with banks, together with the continuing success in reducing the Group's non-accrual loans. These were $46.67 million a year ago and are $14.15 million as at 31 December 2000, including $7.62 million of loans remaining in respect of discontinued operations," said Mr. Ferrett. "Non-interest income grew by 8.0%, to $44.38 million, and represents some 49% of total income. Notable increases were seen in the Group's corporate services revenue, up 24.4%, and investment services fees, up 27.6%."
"The Group's core businesses continue to perform at record levels. In Bermuda first-half net income increased year on year by 91.4%, reflecting
excellent performances by both the Community Banking and Asset Management businesses. Overseas, Guernsey's first half net income was up 52.9%, Cayman's by 34.1% and Hong Kong's by 202%."
Other Financial Highlights of the First Half were:
* The return on assets improved by 0.4% to 1.3% compared to a year ago
and is at its highest level for some 20 years. The net interest margin also improved, from 1.9% last year to 2.1%.
*
* Total assets as at 30 December 2000 were $4.58 billion, compared to $4.38 billion a year ago, the increase primarily reflecting a 12.0% increase in customer deposits.
*
* Total loans increased year on year by $65.80 million, or 5.2%, when excluding the reduction in loans due to the sale of Davenham Group plc last fiscal year. The loan portfolio now represents 28.8% of balance sheet footings.
* The balance sheet remains highly liquid, with 67.4% of assets employed in either deposits with banks or in investments. Deposits with
banks increased by $163 million, or 14.6%, as a direct result of the increase in customer deposits. The Group's investment portfolios, which are primarily in high quality floating rate notes, increased by $29 million, or 1.6%.
* Shareholders' equity increased year on year by 8.1% to $267.31 million, reflecting the increase in retained earnings less share buybacks.
The Group's total capital ratio continues to remain strong at 13.1%
* The Bank has purchased for the Stock Option Trust 1,887,603 shares, representing 9.7% of its total issued shares, at a cost of $31.09 million to satisfy its obligations under an Employees Stock Option Plan. In addition,
during the first half of this fiscal year 300,776 shares were purchased under the Bank's share buyback programme at a cost of $5.37 million.
The Board has decided to increase the quarterly dividend by 2 cents, to 28 cents per share, payable on Thursday 15 February 2001 to shareholders of record on Tuesday 30 January 2001.
Note to Editors:
The Bank's results, which are unaudited, are stated in accordance with
accounting principles generally accepted in Bermuda and Canada. Bank of
Butterfield is a vital community bank in both Bermuda and Cayman and a
specialist offshore financial services company that has chosen its markets,
knows them well, and uses its knowledge to benefit institutional and
individual clients. The Bank, established in 1858, offers a full range of
banking, credit, investment, treasury, trust and custody services through
its headquarters in Bermuda, as well as offices in Cayman, Guernsey, and
Hong Kong.
Bank of Butterfield is a publicly traded corporation with its shares listed
on the Bermuda and Cayman Islands stock exchanges. The Bank's share price is
published daily in The Royal Gazette and is also available on Bloomberg
Financial Markets (symbol: NTB.BH) and The Bermuda Stock Exchange web site:
www.bsx.com. Further details on the Bank can be obtained from its web site
at: www.bankofbutterfield.com.
For further information contact
Investor Relations: Media Relations:
Richard Ferrett Karla Lacey-Minors
Chief Financial Officer Head of Marketing
Phone: (441) 299-1643 Phone: (441) 298-6484
Fax: (441) 295-1220 Fax: (441) 295-3878
e-mail: richardferrett@bntb.bm
e-mail: klacey@bntb.bm