THE efforts of Butterfield Bank’s Guernsey branch have helped produce net income of $33.9m. for the second quarter. Guernsey-based business represents 33% of total assets, compared with 31.2% a year ago.

This brings the year-to-date net income to $66.9m., up 23.1%.

‘Our Guernsey business achieved strong growth in net income, up 59.6%, while continued solid growth was also seen in Barbados, Cayman and the Bahamas,’ said Butterfield chief executive Alan Thompson.

Total revenue increased year on year by $14.3m. to $104.7m., compared with an increase in non-interest expense of $9.9m. to $69.8m.

‘These results again demonstrate the continuing effectiveness of our business model in a highly competitive environment.

‘Our strategic focus on developing core businesses has resulted in continued growth across the jurisdictions in which we operate.’

Total group assets were at a record $10.2bn, a 12.1% increase from $9.1bn a year ago.

The increase reflects growth in customer deposits, which have increased by $1.1bn to $8.8bn.

The return on assets for the quarter was 1.3%, in line with the same quarter in 2005.

Chief financial officer Richard Ferrett said: ‘The group remains committed to the prudent management of its expense base and we are also pleased to see an improvement in the efficiency ratio, at 64.8% for the quarter.’

Client assets under administration across the group increased year on year by $14.3bn to $108.6bn, reflecting the growth in administration of mutual and hedge funds. Client assets under investment management in Butterfield funds stood at $5.6bn, up $0.1bn on the previous quarter.