The Bank of N.T. Butterfield & Son Limited (“Butterfield” or the “Bank”) announced that, in a statement dated 8 May 2012, credit rating agency Fitch has affirmed Butterfield’s long-term issuer default rating (“IDR”) at A- and its short-term IDR at F1. The Rating Outlook remains Stable.
Brad Kopp, Butterfield’s President & Chief Executive Officer, said, “We are pleased that Fitch has affirmed our short-term and long-term ratings, which reflect our strong capital position, revenue diversity and return to sustainable profitability. Their statement views favourably our strategic focus on growth through the alignment of resources to core businesses.”
Fitch’s statement noted that Butterfield’s strategy “should result in (Butterfield) reducing concentration risks, enhancements to interest and fee-based revenue streams from other jurisdictions and cost-saves.” The statement also noted that Butterfield’s recent investments in information technology “should provide operating efficiencies and cost savings in future periods.”
Butterfield reported net income of $40.5 million in 2011 and $14.7 million for the first three months of 2012 (up 75% versus Q1 2011). At 31 March 2012, Butterfield’s total capital ratio was 22.7%, its tier 1 capital ratio was 17.3% and its tangible common equity ratio stood at 6.9%.