Butterfield Reports Second Quarter Profit

ArchiveAug 1, 2012

2 min read

Net income at $16.2 million, up 37.7%
Net interest income before credit losses at $54.0 million, up 8.3%
Net interest margin at 2.67%, up from 2.34%
Tangible common equity ratio of 7.4%, up from 6.9%
Return on assets at 0.74%, up from 0.42%
Return on equity of 7.1%, up from 2.5%
Efficiency ratio improved to 77.7% from 84.4%
An increase in asset management fees of 4.4% to $6.1 million primarily attributable to higher management fees from the Bank’s Money Market Fund on higher Libor rates;
Banking services revenue of $8.1 million was up $0.2 million from $7.9 million a year ago, primarily as a result of an increase in certain banking fees and higher loan prepayment penalties in the United Kingdom;
Foreign exchange revenue of $7.4 million for the quarter was up $0.1 million compared to the second quarter of 2011;
Trust revenues of $6.6 million were down year on year primarily due to timing of income recognition;
Custody and other administrative services revenues of $2.5 million were consistent with the second quarter of 2011;
Other non-interest income was $1.7 million, which primarily includes rental income and the return on our investment in affiliates, was up $0.6 million principally due to a net loss in affiliates of $0.3 million booked in the prior year, compared to a gain of $0.3 million in the second quarter of 2012.
Salaries and employee benefits decreased by $1.5 million year on year reflecting reduced head count, down 107 to 1,210 globally from 1,317 a year ago on a full-time equivalency basis;
Technology and communications expenses have increased by $1.5 million as a result of increased depreciation costs related to systems implementation projects that went live in Bermuda and Cayman during 2011;
Property costs were $6.4 million, down $0.3 million from cost savings initiatives;
Professional and outside services expenses decreased by $0.3 million from the reduction in the use of consultants and other expense management initiatives;
Other expenses decreased by $1.5 million in part due to lower transaction processing fees due to lower volumes and fewer operational losses compared to the prior year;

Published August 1, 2012