BCB’s underlying profit more than doubles
Bermuda Commercial Bank’s full-year underlying profit more than doubled to $2.6 million, after a one-off gain was stripped out of the results.
The bank recorded a total profit of $12.61 million for the 2011 fiscal year, boosted by a $10.01 million gain in relation to the acquisition of a 41 percent stake of West Hamilton Holdings Ltd (WHH).
WHH is the property developer with plans to build the Belvedere Place office complex on the site of the old Bermuda Bakery on Pitts Bay Road. BCB said in its earnings statement today that the $10 million gain related to a fair value assessment of its investment, resulting in a large premium over cost, related primarily to the valuation of WHH’s land and property.
The bank said customer deposits rose by more than a third to $443.2 million during the 12 months.
Meanwhile a reallocation of the bank’s investment portfolio from cash to higher yielding securities drove an increase in interest income to $11.4 million from $4.15 million in the previous year.