The Bank of Bermuda boosted its operating profit by 15 percent to $313 million for 2007, according to its full year consolidated results.

The bank, which is owned by HSBC, also saw its net profit rise one percent to $287 million last year, while net operating income increased to $639 million for the same period, up eight percent from 2006. Total assets advanced four percent, or $396 million, to $10.7 billion during that time.

Investment funds under management more than doubled during 2007, climbing $12.5 billion to $24.1 billion, as residential mortgages went up 20 percent, or $200 million, in 2007 compared to the previous year, and the number of full-time employees on the bank's payroll expanded from 1,668 at the end of 2006 to 1,701 last year.

Philip Butterfield, CEO of the Bank of Bermuda was pleased that the bank continued to maintain its double-digit profit growth after integrating a number of its subsidiaries with other HSBC entities globally over the past few years and despite a year of challenging economic conditions.

"Principal business lines continued to perform well during 2007," he said. "Net profit of $287 million included $243 million from Bermuda-based operations (banking businesses contributed $189 million and our insurance business contributed $54 million) and $44 million from overseas operations, primarily Group Private Banking trust business.

"After excluding one-off gains from the 2006 sale of businesses to HSBC Group affiliated companies, net profit for our core banking operation in Bermuda rose by 22 percent compared with a year earlier.

"Net operating income of $639 million included $432 million from Bermuda banking businesses and $72 million from our Bermuda-based insurance business. Overseas operations contributed $135 million.

"The bank maintains a strong balance sheet with predominantly high-quality, liquid investment assets and a significant, well-secured mortgage portfolio. The bank continues to be Bermuda's highest-rated banking and financial services company and has maintained the 'AA-/Stable' rating from Standard & Poor's during 2007.

"Likewise, in November, Standard & Poor's issued a favourable financial strength rating 'AA-/Stable' for HSBC Insurance (Bermuda) Ltd., a subsidiary of Bank of Bermuda.

"We were also delighted to be recognised by The Banker magazine as Bermuda's top bank when we were awarded the 'Bank of the Year' for 2007, based on our financial performance, strategic initiatives, innovation in technology, marketing advantage and community investment."