For the second year running the Bank of Bermuda has been selected as the Bank of Year for Bermuda by Banker Magazine.

Given the unprecedentedly volatile economic times experienced by the banking industry in 2008, the bank feels particularly proud to have received the award this year, CEO Philip Butterfield told The Royal Gazette.

"Winning for the second year in a row is significantly gratifying for us this year in that we are currently in a period marked by extraordinary events in the financial system," Mr. Butterfield said. "The financial system is experiencing stress and challenge unlike any other period in history. We feel quite comforted by this recognition and rewarded that they believe we are the strongest bank in the jurisdiction."

Bank of Bermuda took over the title from Butterfield Bank, which held it every year from 2002-2006, last year from the London-based magazine which is published by the Financial Times.

"Every year the Banker magazine compiles a panel of editors to scour the world for the top banks in every jurisdiction," said editor Brian Caplen. "The recognition of being named Bank of the Year 2008 in Bermuda by the world's longest running international banking title is testament to the strong management and prudent risk approach that the bank has taken this year.

"Despite challenging market conditions, Bank of Bermuda has demonstrated strong growth and momentum, strategic initiatives, innovation in technology, marketing advantage and solid liquidity while continuing to be a committed community partner."

Winners are chosen "based on analysis of the latest results and performance data provided by the banks through questionnaires plus a review of their strategic developments and overall achievements" after entering the competition.

Mr. Butterfield said becoming a wholly owned subsidiary of HSBC in 2004 has been vital to Bank of Bermuda's management of the economic crisis.

"Banking organisations around the world have seen significant reduction in their market capitalisation," he said. "HSBC has done far better than most. It's good for Bermuda that a wholly owned subsidiary of HSBC is present in Bermuda. We have benefited from that relationship."

With some 1,043 employees, the Bank is a significant employer in Bermuda and Chief Financial Officer Nigel Crow said staff members deserve kudos for ensuring the bank's secured the award this year. "This is a great morale booster," he said. "It's very important to our efforts at staff retention and to attract top staff to work here. It goes a long way toward our goal of being the employer of choice."

With no end in sight to global economic woes, Mr. Butterfield said the bank cannot rule out hiring freezes or staff cutbacks in the future. "That is something we are continually looking at," Mr. Butterfield said. "These are options that have been discussed. For any business operating in this current environment, they have to be."

But the bank has yet to see an increase in loan delinquencies or defaults in Bermuda. And the top executives pointed out that Bank of Bermuda prides itself on working with loan holders wherever possible should they run into difficulties. Chief operating officer Michael Collins said that in recent years there has been a distinct lack of foreclosures because of this willingness to restructure loans wherever possible. And the bank has dropped its prime lending rate by 1.75 percent since the economic troubles started, he added.

Another of the key benefits the relationship with the global banking giant offers is in banking technology, added Mr. Collins. "From a client perspective, the new technology is a huge advantage," he said. Premier banking customers can look at their balances from anywhere in the world and move money in real time. When the bank moves to its new headquarters on Front Street next year, Mr. Butterfield said clients can expect to see even more services and offerings. "We want to offer banking services for the 21st Century," he said.

The bank does not "operate in a perfect society", Mr. Butterfield added, but takes pride in its role in the community.

It has a commitment to local charities — donating 1 percent of its profits every year as well sponsoring three occasions per year when staff members receive a half day to participate in community projects.

The bank is also one of the main sponsors of the North Hamilton Economic Empowerment Zone and a keen sponsor and participant in programmes for seniors, protecting the environment and strengthening education through both adult and child reading programmes.