Butterfield Bank has improved its third quarter profit by 14.4 percent to a record $39.6 million.

Customers have deposited $1.5 billion more in their accounts than during the same period a year ago, while the bank is reporting strong business performances by its units in other parts of the world, including Cayman, the UK and Bahamas.

The results have been released only days after the bank announced it had acquired international wealth management company Bentley Reid Group and its offices in Malta, Hong Kong and London.

President and CEO Alan Thompson, said: "Against the background of challenging and indeed uncertain global market conditions, our focused business strategy and diversified business lines continue to deliver solid financial results and the performance of the group's core businesses remains in line with expectations.

"Our Bermuda businesses continue to do well; in particular the Community Banking division has demonstrated significant asset and revenue growth as we strive to attract new customers whilst retaining existing ones.

"Strong performances were also seen from our Bahamas, Cayman, Guernsey and UK businesses. These results reflect our dedication to providing excellent customer service and our continuing commitment to being a strong community partner in the jurisdictions in which we operate.

"We are also pleased to report the successful expansion of our wealth management business through the acquisition of Bentley Reid Group, with offices in Hong Kong, London and Malta. This is a well established and prestigious international wealth management company and the transaction increases our existing private client business and enables us to expand into new international markets."

The bank has seen increases in its loan business, particularly in Bermuda, Guernsey and the UK.

In Bermuda, Butterfield Bank has set a record profit for the quarter of $19.1 million - up 6.5 percent -with total revenues of $63.9 million. The amount of client assets under management in Bermuda is $9 billion and the amount of assets under administration on the Island is $51.9 billion.

Overall as a group, the bank has total assets of $12.1 billion, an increase of 14.4 percent, while the total assets it has under administration has risen 22.7 percent to $141 billion. The bank is reporting an efficiency ratio of 64.6 percent compared to 66.4 percent a year ago.

Richard Ferrett, executive vice president & chief financial officer, said: "It is pleasing to note that our balance sheet remains strong and highly liquid with customer deposits up $1.5 billion year on year to $10.7 billion. The return on equity for the quarter, at 27.1 percent, was the highest seen for over a decade and now stands at 26 percent for 2007 year to date. We are pleased with the significant year on year increase seen in the group's revenue generation, with total revenue up 14.1 percent to $121 million, and the improvement in the group's efficiency ratio."