Butterfield Bank?s first quarter net income jumped 36 percent to a record $33.1 million as the bank saw strong growth in almost all its subsidiaries.

And the bank also received a boost from ratings agency Standard & Poor?s, which raised its outlook on its short-term A2 rating and long term senior A- rating from ?stable? to ?positive?.

The bank had total operating revenue of $97.1 million, a 17.3 percent increase on the same period in 2005 while operating expenses rose 9.5 percent to $63.5 million.

The bank?s assets rose $500 million to $9.7 billion while customer deposits rose $458 million to $8.5 billion.

The bank said the strong results for the three months to March 30 came as total non-interest income jumped 12.4 percent to a record $47.1 million while net interest income rose 18.6 percent to $49.7 million, which was also a record.

?It is pleasing to note the strong year on year growth across the Group?s core businesses, both in Bermuda and overseas,? Alan Thompson, president and chief executive, said.

He added that the S&P upgrade came as a result of bank?s sound business profile, solid positions in the Bermuda and Cayman Islands commercial banking markets and reputation in asset management and funds servicing.

Across the group, results varied, net income from community banking in Bermuda was $10.2 million, up from $6.1 million a year ago, reflecting a 20 percent increase in total revenues to $36.2 million.

The Bermuda-based Wealth Management, Fiduciary Services and Investment and Pension Fund Administration businesses achieved a 12.2 percent year on year growth in total revenues to $18.3 million. This reflects the increase in client assets under administration, which now stand at $45.1 billion compared to $37.9 billion a year ago.

The bank?s Cayman operation recorded net income of $12.8 million, while a net loss of $200,000 was recorded in the UK, although total revenues increased year on year by 6.1 percent to $5.6 million.

The bank has in recent years expanded its presence in both the Caribbean, Guernsey and the UK through several acquisitions.

The bank?s recently acquired Barbados operations saw a decline in profit from $500,000 to $200,000 due to increased investment in the unit. The loan portfolio rose 25 percent and total assets are now $192 million.

Average interest earning assets increased year on year by $957.3 million to $9.6 billion. During the quarter the Group made provisions for credit losses of $800,000, reflecting growth in the Bermuda loan portfolio, compared to a provision of $1 million a year ago.

This reflects strong growth in revenues from banking services, up 18.5 percent, customer-driven foreign exchange, up 14.2 percent, and investment and pension fund administration, up 12.7 percent.

Richard Ferrett, executive vice president and chief financial officer, said: ?Significant increases were seen also year on year in the Group?s revenue generation with net interest income increasing by 19.6 percent and non-interest income increasing by 12.4 percent.?

Shareholders? equity increased year on year by 19 percent to $522.3 million. Butterfield?s shares rose 75 cents to close at a record $57 on the Bermuda Stock Exchange yesterday.