Butterfield Bank boosted its profits for 2007 to a record-breaking $146 million, up 8.9 percent year-on-year.

Following the group's strong earnings performance over the past year, the board approved a one-for-10 bonus share issue, which equates to a 10 percent stock dividend, in addition to maintaining the quarterly dividend at 16 cents per share.

Pre-tax net income was also up 10.9 percent on 2006 to $153 million, while diluted earnings per share were $1.68, up 15 cents (9.8 percent) on 2006 when restated for the impact of the stock split in August 2007.

Other records broken included no-interest income, which increased by 13.4 percent at $219.7 million, net interest income, which rose 16.4 percent to $250.6 million, customers' loans, up 9.7 percent at $4.1 billion and assets both under administration and management at $145.7 billion (17.9 percent increase) and $11.9 billion (18.5 percent) respectively.

Return on equity was at 25.2 percent, up from 24.6 percent, while net interest margin improved from 2.15 percent to 2.18 percent.

Alan Thompson, president and chief executive officer of Butterfield Bank, said: "We continue to be pleased with the solid growth in our financial performances across the group in what has certainly been challenging and uncertain global market conditions.

"We continue to expand internationally, as evidenced by the establishment of a trust company in Switzerland, the establishment of a fund administration company in Canada and the acquisition of the Bentley Reid Group, with offices in Hong Kong, Malta and the United Kingdom.

"These offices increase our existing private client and fund administration business and enable the group to expand into new international markets. We remain committed to enhancing shareholder value, as evidenced by the 'one-for-10' stock dividend announced today (yesterday). These results are testament to the creativity, commitment and enthusiasm of our employees."

Richard Ferrett, executive vice-president and chief financial officer, said, "The return on equity for the year, at 25.2 percent, is the highest seen for over a decade and in keeping with our target to achieve a return of over 20 percent.

"It is pleasing to note that our balance sheet remains strong and highly liquid with customer deposits up $0.7 billion year on year to $10.4 billion. We are also pleased with the significant year-on-year increase seen in the Group's revenue generation, with total revenue up 13.2 percent to $470 million."