The value of companies listed on the Bermuda Stock Exchange hit $438 billion by the end of September.

The total market capitalisation of the exchange (BSX), excluding funds, was $437.8 billion, up by more than $6 billion on the previous quarter.

The latest regulatory update from the Bermuda Monetary Authority (BMA) said: “This increase was primarily due to changes in the trading values of several large international companies.”

And the rise of insurance linked securities (ILS) continued, with the BSX logging a total of nearly $8 billion in ILS deals by the end of September — more than 40 percent of the global stock of listed ILS.

The update said: “At quarter-end, with a total 34 ILS deals, comprising 43 tranches, were listed on the BSX, with an aggregate nominal value of approximately $7.9 billion, of which $560 million, or seven percent, was attributable to four ILS deals (six classes) originated by special purpose insurers (SPIs) domiciled outside Bermuda.

“Global market capitalisation of ILS reached $19,5 billion, of which $1.7 billion were new issuances during the quarter.”

Total trading volume for the third quarter of the year was more than nine million shares with a value of $43.5 million — up from 5.1 million and $13.3 million in the previous quarter.

The BMA report added: “The valuation of domestic firms constituted 0.38 percent of the total market with capitalisation amounting to $1.7 billion, up by $100 million from $1.6 billion during the previous quarter.”

The report added: “Financial sector conditions remain largely unchanged compared to the previous quarter. However, the overall capital position of the banking sector improved marginally during the period.

“The earning capacity of the sector is more dependent on stable interest rate margins. The sector’s structural funding improved on account of credit tightening.”

The report added that stable interest rate margins and a decline in non-interest expenses helped banks offset above average provisioning and declining non-banking income.

And a reversal of the increased credit supply seen in the previous period, leading to contracting bank lending, improved the sector’s structural funding position.

But the BMA update said a rise in non-performing loans — up to 11.7 percent of total loans — suggested continued pressure on net operating income.

BMA figures showed a total of $127 million in notes and coins in circulation during the quarter — a $4 million increase on the second quarter and $5 million up on the first quarter.

The report added: “In spite of lower leverage in the banking sector, money supply increased as a result of a widening deposit base and a larger amount of currency in circulation.

“The external debt balance improved after having deteriorated during the previous period.”

And it added: “A marginal shift towards local currency-denominated deposits limited the deflationary impact of lower leverage of the sector’s aggregate balance sheet. The net foreign currency position contracted to a $70 million deficit.”

And the quarterly report said: “Bermuda insurance and reinsurance groups showed steady growth of premium income against the background of a benign loss experience over the recent past.”