Butterfield: 2011 Net Income $40.5M
The Bank of N.T. Butterfield & Son Limited today [Feb.19] announced net income for 2011 of $40.5 million, compared to a reported loss of $207.6 million in 2010.
Butterfield President & CEO Bradford Kopp said, “The Bank generated respectable levels of profit in each fiscal quarter, contributing to net income for the year of $40.5 million.
“Although, by historical standards, that level of annual income is modest for Butterfield, when viewed against the backdrop of ongoing economic dislocation and low interest rates in our key markets, it is a positive achievement.
“Our income was driven by the successful implementation of our strategy to improve operating efficiencies, strengthen credit quality and expand our interest margins.”
Mr. Kopp continued, “We saw notable improvements in the overall performance of our lending business in 2011, even as we experienced increases in delinquencies on personal loans, credit cards and residential mortgages of a magnitude commensurate with general economic difficulties.
“By taking advantage of opportunities in under-served sectors of the UK and Guernsey loan market, and the extension of additional credit facilities to the Government of Bermuda, the Bank grew the loan portfolio during the year, whilst reducing the overall percentage of non-accrual loans on our books.”
Brad Rowse, Butterfield’s Chief Financial Officer, said, “In late 2010, the Bank revised its investment strategy in an effort to improve returns and largely implemented that strategy during 2011. Based on the provision of improved modelling and analytics, we were able to more effectively match the durations of our deposits against investments for improved yield, without taking on excess risk.
“As part of this strategy, the Bank is now holding certain securities—issued primarily by US government agencies—in a Held To Maturity (“HTM”) portfolio. These investments, combined with deposit pricing discipline, resulted in an increase in net interest income of more than 19%.”
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Good thing the Bda Govt desperately needed cash. The taps were shut off at HSBC and BNTB were able to achieve a nice margin. My kids will have to pay for that – if they’re still here.
Hmm.. and BNTB shares shot up on Monday.. I think an insider trading investigation is warranted.
There was no change in price on Monday (no shares traded)and prices went up 7cents over the next two days with about 1,300 shares traded. I’d hardly call that insider trading…