In Hamilton, Bermuda this past week, the Bank of N.T. Butterfield & Son Limited reported net income of $90.5 million for the full year ended 31 December 2004 – a record for the Bank and up 27.7% year on year. Year-end results also show record net interest income up 28.7% at $148.1 million; record total assets of $8.6 billion; record assets under administration up 34.7% at $80.6 billion; and a return on equity of 21.2%. Non-interest income of $156.5 million reflected strong growth across all revenue lines, notably from Investment & Pension Fund Administration (+52.7%), Asset Management (+38.4%), Trust & Investment Services (+29.8%) and Banking Services (+15.9%).

The report shows that Butterfield’s **Bahamas** businesses achieved net income of $0.7 million compared to $0.2 million a year ago. *”Pleasing growth was seen year on year in the area of fund administration, reflecting the acquisition of Deerfield Fund Services in the first quarter. At year-end client assets under administration were $4.4 billion compared to $1.3 billion a year ago.”*

Butterfield Bank entered The Bahamas in 2003 with the acquisition of Bahamian entities Leopold Joseph (Bahamas) Limited and Thorand Bank & Trust, continuing the operations as Butterfield Bank (Bahamas) Limited. Last year, it acquired Deerfield Fund Services, now renamed Butterfield Fund Services (Bahamas) Limited.

Bermuda’s first and largest indigenous bank, Butterfield offers a full range of Community Banking services in Bermuda, Barbados and the Cayman Islands, encompassing retail and corporate banking and treasury activities. As a specialist offshore financial services group the Bank also provides Private Banking, Wealth Management & Fiduciary Services and Investment & Pension Fund Administration Services from its headquarters in Bermuda, and its subsidiary offices in the Cayman Islands, Guernsey, **The Bahamas** and the United Kingdom.