Butterfield Bank reaches income milestone
Monday June 28 2010 | 05:53 AM

FOR the financial year ended December 31, 2009, Butterfield Bank (Barbados) Limited, recorded its highest level of income before taxation and provision for loan losses. 

According to the commercial bank’s recently released financial highlights for the 12 month period, this total stood at Bds$7.4 million, which is an increase of $1.9 million, or 34 per cent when compared to 2008. 

Due to the fact that the institutions provisions for loan losses for the year was substantially more than that of previous years, given the economic uncertainty that prevailed during the year, net income for the year was said to be down by one million dollars, reaching a total of $4.1 million after accounting for this, as well as taxes paid. 

The loan portfolio performed well for the bank during the year, with customer loans being up by five per cent on 2008, totalling $390.7 million over the 12 month span. 

Net interest income was seen to have increased by 27 per cent when compared to 2008, reaching $24.4 million for the period under review. 

Shareholders’ equity was reported to have reached $61.8 million, which is an increase of nine per cent when compared to $56.3 million recorded for the previous year.

The bank’s tier 1 capital ratio at the end of the year was 17 per cent, while the total capital ratio was that of 17.6 per cent; more than double the current regulatory requirement.

Commenting on the results, Managing Director, Lloyd Wiggan, said that despite a significant contraction of the Barbados economy these results represent a good year for the bank, noting in particular the record income before tax and loan loss provisions, as well as the fact that their credit and deposit businesses continued to perform well, resulting in strong growth in net interest income.

“As we move forward into 2010 and beyond, our ability to consistently deliver superior customer service will be critical to build on our successes and increase market share. Our goal is to be the industry leader in customer service and we’ll continue to invest in the training and development of our employees to ensure our products and services are delivered professionally, efficiently and courteously”, he said. 

Wiggan also pointed to the growth strides that have been made by the company since its commencement of operations on the island, referring to the fact that during the year under review, Butterfield made significant investments in premises, part of which was the opening of its fifth banking centre at a new south coast location and refurbishing its supermarket locations for the convenience of customers.
(RH)