The rating agency Moody’s has downgraded its ratings for Bermuda Commercial Bank Limited [BCB] to Ba2, with a stable outlook.
Horst E. Finkbeiner, Director & Chief Operating Officer commented that, “While disappointed with the downgrade we are pleased that our solid capital position and strong liquidity were recognized by Moody’s. We remain satisfied with the overall growth in our business and the performance of our portfolio”.
BCB is the only bank in Bermuda focused purely on private wealth and corporate clients, providing banking, trust, asset & investment management, and corporate administration & services. In October 2011 BCB acquired Paragon Trust Company Limited and Charter Corporate Services Limited, expanding the bank’s business, diversifying its revenue stream and strengthening its trust and corporate services.
“In March 2012 we published our half-year figures that showed that our balance sheet has strengthened year on year with shareholder equity at $93.56m (see graph). Our profits have also improved, with earnings per share more than doubling from $0.20 per share in 2011, to $0.44 per share at half-year 2012. We are very pleased with the steady growth in our business franchise and our robust balance sheet”.
“The change in our rating is driven by the challenges in the global banking environment, particularly in Europe and with markets in general. This is something that the Bank is managing closely and we have taken note of Moody’s comments on our investment portfolio. While our portfolio is well diversified and controlled we will continue to work with our investment advisor to monitor and reduce any concentration or exposure to the areas highlighted by Moody’s” said Mr. Finkbeiner.
“BCB follows a conservative approach to managing its balance sheet, and at half-year 2012 had a Tier 1 capital ratio of 25.52%. Further over 50% of its assets are in cash and cash equivalents with no direct exposure to the troubled mortgage business. “We are pleased with our strong capital and liquidity position, and we look forward to continuing to grow our business in 2013”.
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