Butterfield Bank Reports Second Quarter Profit
The Bank of N.T. Butterfield & Son Limited today [July 31] reported second quarter net income of $16.2 million [$0.02 per share on a fully diluted basis], up 37.7% compared to $11.8 million in the second quarter of 2011 and up $1.5 million over the $14.7 million recorded in the first quarter of 2012.
Cash earnings [before amortisation of intangibles] for the period totalled $17.6 million compared to $16.1 million in the prior quarter and $13.2 million for the same quarter of the prior year.
Year-to-date net income for the six months ended 30 June 2012 was $30.9 million compared to a year-to-date net income of $20.2 million for the six-month period ended 30 June 2011.
Cash earnings [before amortisation of intangibles] for the period totalled $33.7 million, an increase of $10.7 million over the $23.0 million for the prior year. Year-to-date earnings per Share totalled $0.04 on a fully diluted basis, versus a $0.01 year-to-date earnings per Share for the quarter ended 30 June 2011.
Bradford Kopp, Butterfield’s President & Chief Executive Officer, said, “Our second quarter results represent our sixth consecutive quarter of profit, and are improved year-on-year; the increase owed mainly to improvements in net interest income. Amidst ongoing economic weakness in our major markets and continued low interest rates, the results reflect the quality of our credit portfolios and the resiliency of our revenue model, with a good balance of interest and non-interest earnings.”
Mr. Kopp continued, “I stated last quarter that improving Shareholder value would be a major driver of our business strategy, and consistent with that objective, the Bank made important changes during the quarter to rationalise our business and focus capital in core markets and competencies where we see greater potential.
“In this regard, Butterfield finalised an agreement to sell the Bank’s wholly owned Barbados subsidiary to Trinidad-based First Citizens Group for gross proceeds of $45 million (with the transaction expected to close in the third quarter), terminated our relationship with Bentley Reid at a net loss of $0.5 million, and sold our interests in Cayman-based insurer, Island Heritage for a net gain of $4.3 million.
“As a result of these changes, we continued to improve the quality of our balance sheet and capital strength, ending the quarter with a very strong tangible common equity ratio of 7.4%, up 94 basis points from the prior year before restatement for discontinued operations.”
The full news release is here [PDF].
Does BNTB do profit sharing with their Employers – they should.
Show us the dividends.
don’t count on any dividends for MANY years to come. Trust my words!
the only thing Butterfield gives its employees is the boot! They are so busy quietly laying off people, eliminating benefits, and boy do they rock at keeping a strong fear factor that your next out the door (that is, if you are not part of the so called ‘executive team’ on their 5th floor which is very busy “taking care of itself”. The only reason this bank appears to be “making money” is its year over year comparisons from previous disasters / near failures and by cutting headcount severely and unfairly. All accountants know how to do is cut expenses, cut, cut, cut!!! no vision, no direction, no leadership…Kopp. What a joker. Not a real bank! it will never see my money or business.
Are you joking, I am right with you and can totally agree with you! I witness it all day long. 5th floor and their private kitchen while the staff is stuffed in the basement with no windows! I refuse to bank with them either. They don’t even care about their crappy online banking website. How can they keep that template after seeing what other banks can offer?!! That is a sad sad bank.