The Bank of Butterfield yesterday released its second quarter results and reported record earnings for the first half of its current fiscal year.

The Bank reported first half earnings, through December 31, 2001, of $35.79 million. It said this amount was up $6.85 million and represented a 23.6 percent gain over the same period the year before. And earnings in the second quarter of its current financial year which ended December 31, 200, came to $18.6 million. This represents a 26.8 percent gain on a year ago.

President and chief executive officer Calum Johnston said of the Bank's unaudited results: "This is the 14th consecutive quarter of earnings growth. We continue to be pleased with the enhancement in shareholder value achieved over that time. This is particularly the case in the second quarter: a period which saw declines in interest rates and in the financial environment throughout major world markets. It is noteworthy that the strategy of continued investment in our Guernsey business over the past two years has been well rewarded, with first half net income from that operation increasing by 34.4 percent year on year. Our policy of focusing on the Bank's core strengths and improving efficiency is having the desired effect and the return on shareholders' equity, at 25 percent in the second quarter, is the highest the Bank has achieved in over 20 years."

In light of its earnings, the Bank has declared a quarterly dividend of 32 cents per share payable on February 15 to shareholders on record as of Tuesday, February 5.

The Bank's chief financial officer Richard Ferrett said by taking in to account the '1 for 10' stock dividend shareholders received in August, 2001, the dividend payment represents a year on year increase in the quarterly dividend of 25.7 percent.