Standard & Poor’s Ratings Services has revised its outlook on the Bank of N.T. Butterfield & Son Ltd. (BNTB) to positive from stable. At the same time Standard & Poor’s affirmed its ‘A-/A-2′ counterparty credit and CD ratings on the bank.
According to a news release from S&P, the change in the outlook and the ratings affirmation are based on BNTB’s sound business profile and solid positions in the Bermuda and Cayman Islands commercial banking markets, as well as its reputation in asset management and funds servicing. Credit Analyst Laurence Wattraint says the ratings are also supported by healthy and consistent profitability performance achieved by strong fee income generated from its asset management, trust, and funds servicing businesses and an improvement in net interest income derived from its community banking operations. A rich and stable core deposit base, together with a highly liquid asset mix and excellent loan quality, provide the basis of a strong balance sheet and further support the rating.
BNTB is a Bermuda-based financial services group providing retail and corporate banking, investment, trust, custody, and third-party investment and pension fund administration services. It has overseas operations in Cayman, Guernsey, Barbados, **The Bahamas**, and the U.K.
S&P says the positive outlook takes into consideration expectations of continuing improvements in profitability, benefiting from BNTB’s expanding Caribbean banking franchise and international fee-generating funds administration, asset management, and trust services.
Last month Butterfield Bank was named ‘Best Bank in Bermuda’ for 2006 by Global Finance magazine. This is the second consecutive year Butterfield Bank has won this award, and follows its fourth consecutive annual award as the Best Bank in Bermuda by The Banker magazine in September 2005.
Butterfield Bank (Bahamas) Limited is a wholly owned subsidiary of The Bank of N.T. Butterfield & Son Limited of Bermuda. Butterfield Fund Services (Bahamas) Limited holds an Unrestricted Investment Fund Administrator’s License from the Securities Commission of The Bahamas, and is dedicated exclusively to serving investment managers.