-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EerRn9uQgk8aPC/UDqVpdIThFLe2m+Ws0z3Z3vUFrAchPivda6HNdw+O2oHftgu+ LlR/HrzBOOAhdh3HEDvabA== 0000950123-03-011497.txt : 20031020 0000950123-03-011497.hdr.sgml : 20031020 20031020130928 ACCESSION NUMBER: 0000950123-03-011497 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031020 FILED AS OF DATE: 20031020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF BERMUDA LTD CENTRAL INDEX KEY: 0000908844 STANDARD INDUSTRIAL CLASSIFICATION: FUNCTIONS RELATED TO DEPOSITORY BANKING, NEC [6099] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49742 FILM NUMBER: 03947441 BUSINESS ADDRESS: STREET 1: 6 FRONT ST HAMILTON HM11 STREET 2: PO BOX HM 1020 CITY: HAMILTONBERMUDA STATE: D0 ZIP: 00000 MAIL ADDRESS: STREET 1: 6 FRONT STREET STREET 2: HAMILTON CITY: BERMUCA HM11 STATE: D0 6-K 1 y90762e6vk.txt THE BANK OF BERMUDA LIMITED SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For October 20, 2003 THE BANK OF BERMUDA LIMITED (Translation of registrant's name into English) 6 Front Street Hamilton HM 11 Hamilton HM DX, Bermuda (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F X Form 40-F ----- ----- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): --- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): --- Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ----- ----- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A ----- THE BANK OF BERMUDA LIMITED On October 20, 2003, The Bank of Bermuda Limited announced its financial results for the quarter ended September 30, 2003. The press release with respect to this matter is attached as Exhibit 99.1 to this Form 6-K and is incorporated herein by reference. The summary financial data that was made publicly available with respect to this matter is attached as Exhibit 99.2 to this Form 6-K and is incorporated herein by reference. Exhibit Index 99.1 Press Release, dated October 20, 2003. 99.2 Summary Financial Data for quarter ended September 30, 2003. -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE BANK OF BERMUDA LIMITED By: /s/ William H. Scott ---------------------------------- Name: William H. Scott Title: Head of Corporate Planning Date: October 20, 2003 -3- EX-99.1 3 y90762exv99w1.txt PRESS RELEASE Exhibit 99.1 (BANK OF BERMUDA LOGO) Bank of Bermuda Announces Third Quarter 2003 Earnings (HAMILTON, BERMUDA, 20 OCTOBER 2003) - Bank of Bermuda (NASDAQ:BBDA; BSX:BOB) today announced third quarter diluted earnings per share* of $0.75. This compares with $0.71 in the previous quarter and $0.46 in the third quarter of 2002. Edward H. Gomez, Chief Financial Officer, commented: "The quarter's results reflect excellent performance by our fee based business lines. Our largest business, Global Fund Services, led the way with a 16% growth in fee revenues, which drove our overall non-interest income to a record $76.6 million for the quarter. The effects of our continuing new business growth are being realised and the value of existing client assets are starting to recover from their recent depressed levels. Foreign exchange earnings also had another strong quarter as client trading volumes remain robust during more volatile market conditions. Our net interest earnings should be considered together with associated hedge costs, included in investment losses. Together, these lines are slightly higher than a year ago, reflecting improved performance by our outsourced trading portfolio, offset partly by the effects of continued margin pressure. Mr. Gomez continued: "Operating costs have increased to support business growth while we remain focused on discretionary cost controls and improving operating efficiency. Third quarter expenses also include some one-time charges as we continue to streamline our support structure and focus headcount on areas of business growth." - ---------- * Bank of Bermuda's results are stated in U.S. Dollars and in accordance with U.S. Generally Accepted Accounting Principles. PRESS RELEASE ===== ======= Chief Executive Officer, Henry B. Smith, added: "These results demonstrate our success at growing our business in carefully selected niche markets where our relationship-driven approach gives us a strategic advantage. We have continued to expand our global presence in the current quarter through our recently announced South Africa and Tokyo offices. Another key focus is developing innovative technology tailored to the needs of our client base, and we have recently achieved the launch of new products for our GFS client base that we anticipate will improve both service and revenues. We believe that such investments, combined with strengthened client-focused teams, provide a solid base for continued success as markets recover. We are also maintaining our focus on operating efficiency. Our dedicated staff and strict discipline have produced robust earnings in what can still be described as a very challenging economic environment." QUARTER ENDED 30 SEPTEMBER 2003 COMPARED WITH QUARTER ENDED 30 SEPTEMBER 2002 Total revenue in the quarter rose from $100.2 million in 2002 to $117 million in 2003, equivalent to a 17% increase. Non-interest income, which accounts for 65% of total revenue, increased by 15% to $76.6 million. Net interest income, before provision for loan losses, decreased by $3.7 million while investment losses on the outsourced trading portfolio, which represents the change in value of the net hedged portfolio, were $8.6 million lower than the prior year quarter. Fees from our global fund services (GFS) products, the largest portion of non-interest income, increased $5.2 million to $37.4 million. This 16% increase resulted from increases in the values of our hedge fund and fund-of-funds client base in North America and Europe, as well as hedge fund and pension fund assets in the Far East. All of GFS's key locations demonstrated growth as fees in Hong Kong were up $2 million reflecting growth of pension assets, while fees in New York and Dublin were each up $1.2 million. -2- Private trust fees increased $700,000 to $8.2 million in the current quarter, as improved client asset values generated higher ad valorum fees. Investment services fees of $10.5 million were 6.5% higher than the same quarter last year, reflecting increased discretionary management and brokerage fees. Assets in Bank of Bermuda proprietary mutual funds totalled $6.8 billion, compared with $6.5 billion at September 30, 2002. Foreign exchange earnings were $13.6 million, up 24% from the year-ago quarter. Continued currency market volatility and uncertainty increased client trading volumes, which as a whole were up 16%. Banking services fees were $7 million in the quarter, up 15% from a year ago. Net interest income before loan losses decreased $3.7 million to $41.5 million, with the impact of a $365 million increase in average interest earning assets more than offset by the reduction in net interest margin from 1.85% to 1.63%. This margin decline reflects the decision in late 2002 to reduce the size of the outsourced portfolio in order to reduce earnings volatility. Net interest margin was also impacted by the two Federal Reserve rate cuts during the past year as more zero rate floors became effective on interest bearing demand and fixed term deposits. Growth of $272 million in our loan book somewhat mitigated the combined effect of the reduced portfolio and the rate cuts. Net provisions for loan losses were $0.5 million, compared with a net release of $1.4 million in the year-ago quarter that reflected recoveries of loans previously charged off. Impaired loans were $2 million lower than a year ago at $22.4 million. The coverage ratio was 121%, up from 117% in the linked quarter. Investment losses on the trading portfolio decreased from $12.4 million to $3.8 million. These losses were more than offset by interest earnings so that on a net basis the outsourced portfolio -3- contributed $0.4 million to net income in the 2003 third quarter on an average portfolio balance of $503 million. A year earlier, when the average portfolio size was $1.3 billion, it contributed $0.2 million to net income on the same basis. The third quarter performance on the portfolio was 1.14% below its target return; in the same period last year it was 2.13% below target. Despite the below target performance in the quarter the absolute return from this portfolio continues to exceed the yield from our internally managed asset base on a long-term basis. Investment and other income was $3.5 million in the quarter. This reflects gains on the sale of available for sale securities and other investment income. Operating expenses increased by $8.9 million year-over-year to $92.9 million. Salary costs were $5.3 million higher, and included redundancy actions taken in the quarter to achieve further operating efficiencies. Pension and staff benefits declined $0.5 million as adverse currency movements were more than offset by lower recruitment and training expenditure. General corporate expenses increased by $3.9 million primarily reflecting higher insurance costs from the year-ago quarter. Income tax expense was $1.8 million, down from $2.1 million in the prior year as a result of lower taxable income in Guernsey and Luxembourg. - Ends - -4- FORWARD LOOKING STATEMENTS Certain of the statements contained in this media release that are not historical facts are statements of future expectations and other forward looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Some of these forward looking statements can be identified by the use of forward looking words such as "believes," "expects," "may," "will," "should," "seeks," "strives," "approximately," "intends," "plans," "estimates" or "anticipates" or the negative of those words or other comparable terminology. Forward looking statements involve inherent risks and uncertainties and are not guarantees of future performance or results. A number of important factors could cause actual results to differ materially from those in the forward looking statements, including, without limitation, changes in securities market valuations; changes in foreign exchange rates; fluctuations in interest rates; inflation; volatility and volume of securities transactions in emerging markets; volatility of currency markets; changes in savings rates or investment behaviour; changing pension requirements in target markets; government regulations, including banking regulations; local economic conditions; and competition in the geographic and business areas in which we conduct our operations. Additional factors that could cause our actual results to differ materially from those in the forward looking statements can be found in our 2002 Annual Report in the section entitled "Forward Looking Statements". NOTES TO EDITORS The Bank's results are stated in accordance with generally accepted accounting principles in the United States. BANK OF BERMUDA Bank of Bermuda is an international financial institution that provides banking, trust, asset management, fund administration and global custody services to its corporate, private and retail clients. Founded in 1889, its global headquarters are in Bermuda, and it has offices or subsidiaries in the Cayman Islands, Cook Islands, Dublin, Guernsey, Hong Kong, Isle of Man, Jersey, London, Luxembourg, New York, New Zealand, Singapore, South Africa, Tokyo, Bahrain and Switzerland. The Bank is a publicly-traded corporation, listed on the Bermuda Stock Exchange (BOB) and NASDAQ (BBDA). Further information on Bank of Bermuda is located on the Internet at www.bankofbermuda.com. PRE-RECORDED MESSAGE Pre-recorded comments from Henry B. Smith, Chief Executive Officer and William H. Scott, Head of Corporate Planning will be available via telephone (800) 432-7890 (toll-free inside the US) and (973) 317-1168 (for access -5- outside the US) and the internet www.bankofbermuda.com/investorrelations/ webcast.htm beginning at approximately 9:00 a.m. (ET) on Tuesday, October 21, 2003. - -------------------------------------------------------------------------------- FOR MORE INFORMATION PLEASE CONTACT: Alison J. Satasi, Head of Investor Relations Bank of Bermuda Telephone: (441) 299-6851 Facsimile: (441) 299-6559 E-mail: Investor_Relations@BankofBermuda.com -6- EX-99.2 4 y90762exv99w2.txt SUMMARY FINANCIAL DATA Exhibit 99.2 BANK OF BERMUDA FINANCIAL SUMMARY (Unaudited, in U.S. dollars in millions, except per share amounts)
For the Quarter ------------------------------------------------------------- For the Year 2002 2003 - ------------------- -------------------- -------------------------------------- 2001 2002 3rd 4th 1st 2nd 3RD - ------------------- -------------------- -------------------------------------- U.S. GAAP EARNINGS 60.1 77.7 Net income 14.1 16.6 21.6 20.6 22.3 EARNINGS PER SHARE 2.00 2.62 -Basic (a) 0.48 0.57 0.75 0.72 0.78 1.91 2.53 -Diluted (a) 0.46 0.56 0.73 0.71 0.75 - ------------------- -------------------- -------------------------------------- U.S. GAAP OPERATING RESULTS(B) 257.0 264.2 Non-interest income 66.6 67.1 66.7 71.9 76.6 195.0 177.7 Net interest income after loan losses 46.7 43.6 39.4 39.5 41.0 (8.2) (21.0) Investment income (loss) (13.1) (1.5) 1.0 1.5 (0.6) - ------------------- -------------------- -------------------------------------- 443.8 420.9 Total revenues 100.2 109.2 107.1 112.9 117.0 377.0 337.0 Operating expenses 84.0 92.5 84.0 90.7 92.9 6.7 6.2 Income taxes 2.1 0.1 1.5 1.6 1.8 - ------------------- -------------------- -------------------------------------- 60.1 77.7 Net Income 14.1 16.6 21.6 20.6 22.3 =================== ==================== ====================================== - ------------------- -------------------- -------------------------------------- 9.5% 11.9% RETURN ON EQUITY (C) 8.6% 10.0% 13.1% 12.4% 13.0% - ------------------- -------------------- -------------------------------------- STOCK PRICE / DIVIDEND RATIOS 0.98 1.08 Cash dividends per share 0.27 0.27 0.29 0.29 0.29 51.3% 42.7% Dividend payout ratio (d) 58.4% 48.2% 39.7% 40.8% 38.7% 48.00 31.90 Closing stock price 32.60 31.90 34.36 34.99 38.75 21.04 22.84 Book value per share 22.48 22.84 23.07 23.68 24.32
Key: (a) Basic earnings per share is the result of dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed in accordance with the Treasury Stock method for dilutive securities as set out in SFAS 128. (b) Non-Core items are shown on page (3). (c) Return on average common equity has been calculated by dividing Net Income by average Shareholders' Equity. Quarterly amounts have been annualised based on the average of quarter-end balances. (d) Dividend payout ratio has been calculated based on cash dividends per share divided by diluted net earnings per share. Page (1) of (8) BANK OF BERMUDA CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP) (Unaudited, in U.S. dollars in thousands)
For the Quarter --------------------------------------------------------- For the Year 2002 2003 - ------------------------ ----------------------- -------------------------------- 2001 2002 3rd 4th 1st 2nd 3RD - ------------------------ ----------------------- -------------------------------- REVENUE Non-interest income 117,682 126,152 Global fund services 32,203 30,755 31,829 33,339 37,382 30,427 30,323 Private trust services 7,500 7,235 7,684 8,013 8,150 40,736 40,779 Investment services 9,859 9,909 9,412 9,611 10,496 42,394 42,365 Foreign exchange earnings 10,923 11,566 11,704 14,088 13,556 24,395 23,163 Banking services 6,076 5,923 6,078 6,881 6,996 1,343 1,474 Other non-interest income/(loss) (1) 1,757 7 3 4 - ------------------------ ----------------------- -------------------------------- 256,977 264,256 Total non-interest income 66,560 67,145 66,714 71,935 76,584 - ------------------------ ----------------------- -------------------------------- Interest income 159,091 73,734 Interest on deposits 21,137 16,836 15,598 16,175 13,870 104,171 89,260 Interest on loans 22,401 22,196 21,632 22,670 23,030 191,291 87,499 Interest on marketable securities - AFS 20,821 21,523 21,517 20,178 19,002 32,659 50,278 Interest on marketable securities - trading 13,088 10,196 4,902 5,052 4,412 - ------------------------ ----------------------- -------------------------------- 487,212 300,771 Total interest income 77,447 70,751 63,649 64,075 60,314 289,538 124,997 Interest expense 32,206 27,080 23,446 23,304 18,792 - ------------------------ ----------------------- -------------------------------- 197,674 175,774 Net interest income 45,241 43,671 40,203 40,771 41,522 (2,662) 1,971 Provision for loan losses 1,429 (51) (753) (1,268) (530) - ------------------------ ----------------------- -------------------------------- 195,012 177,745 Net interest income after loan losses 46,670 43,620 39,450 39,503 40,992 (6,538) (24,900) Investment loss - trading portfolio (12,859) (3,092) (2,022) (3,356) (4,014) (1,643) 3,896 Investment and other income/(loss) (138) 1,600 2,987 4,828 3,487 - ------------------------ ----------------------- -------------------------------- 443,808 420,997 Total revenue 100,233 109,273 107,129 112,910 117,049 - ------------------------ ----------------------- -------------------------------- OPERATING EXPENSES 161,359 181,940 Salaries 44,888 46,962 45,467 46,640 50,140 51,858 58,373 Pension and staff benefits 14,493 17,242 15,115 13,647 14,038 28,613 27,723 Property 6,883 7,332 7,066 6,995 7,535 39,800 41,129 Systems and communications 10,189 11,246 10,737 11,915 9,739 95,330 27,941 Corporate, marketing, and other 7,590 9,729 5,585 11,531 11,463 - ------------------------ ----------------------- -------------------------------- 376,960 337,106 Total operating expenses 84,043 92,511 83,970 90,728 92,915 - ------------------------ ----------------------- -------------------------------- 66,848 83,891 NET INCOME, BEFORE INCOME TAXES 16,190 16,762 23,159 22,182 24,134 6,771 6,233 Income taxes 2,130 168 1,547 1,619 1,842 - ------------------------ ----------------------- -------------------------------- 60,077 77,658 NET INCOME 14,060 16,594 21,612 20,563 22,292 ======================== ======================= ================================
Page (2) of (8) BANK OF BERMUDA NON-CORE ITEMS (Unaudited, in U.S. dollars in thousands)
For the Quarter -------------------------------------------- For the Year 2002 2003 - ----------------------- ------------------ ------------------------ 2001 2002 3rd 4th 1st 2nd 3RD - ----------------------- ------------------ ------------------------ NON-CORE ITEMS (9,615) (954) Non-Core investment loss (a) (954) - - - - 2,300 - First Atlantic Commerce (b) - - - - - (43,437) 5,453 Net recovery / (provision) for litigation (c) - - 3,500 - - Adjustments to performance-related 9,330 (709) compensation due to litigation (d) - - (296) - - 4,068 - Pension credit (e) - - - - - - (1,500) Restructuring charge (f) - - - - - (7,699) - Cancelled start-up costs (g) - - - - - - 1,291 Gain on sale of property (h) 1,291 - - 649 - - (2,472) Loss on impairment of property (i) (2,472) - - - - - ----------------------- ------------------ ------------------------ (45,053) 1,109 Total Non-Core items (2,135) - 3,204 649 - ======================= ================== ========================
Key: Item (a) is included in Investment and other income / (loss) Item (b) is included in Investment and other income / (loss) Item (c) is included in Corporate, marketing and other Item (d) is included in Salaries Item (e) is included in Pension and staff benefits Item (f) is included in Salaries Item (g) is included in Corporate, marketing and other, in Staff benefits and in Property Item (h) is included in Investment and other income / (loss) Item (i) is included in Investment and other income / (loss) Page (3) of (8) BANK OF BERMUDA PER SHARE DATA (Unaudited, in U.S. dollars in thousands, except per share amounts)
For the Quarter ------------------------------------------------- For the Year 2002 2003 - ---------------------------- ------------------------------------------------- 2001 2002 3rd 4th 1st 2nd 3RD - ---------------------------- ----------------- --------------------------- U.S. GAAP EARNINGS PER SHARE 2.00 2.62 -Basic (a) 0.48 0.57 0.75 0.72 0.78 1.91 2.53 -Diluted (a) 0.46 0.56 0.73 0.71 0.75 - ---------------------------- ----------------- --------------------------- NON-CORE ITEMS(B) (0.31) (0.03) Non-Core investment loss (0.03) -- -- -- -- 0.07 -- First Atlantic Commerce -- -- -- -- -- (1.38) 0.17 Net recovery / (provision) for litigation -- -- 0.12 -- -- Adjustments to performance-related 0.30 (0.02) compensation due to litigation -- -- (0.01) -- -- 0.13 -- Pension credit -- -- -- -- -- -- (0.05) Restructuring charge -- -- -- -- -- (0.25) -- Cancelled start-up costs -- -- -- -- -- -- 0.04 Gain on sale of property 0.04 -- -- 0.02 -- -- (0.08) Loss on impairment of property (0.08) -- -- -- -- - ---------------------------- ----------------- --------------------------- (1.44) 0.03 Total Non-Core items (0.07) -- 0.11 0.02 -- - ---------------------------- ----------------- --------------------------- AVERAGE SHARES OUTSTANDING 29,977 29,601 -Basic 29,441 29,225 28,746 28,381 28,632 31,386 30,691 -Diluted 30,412 29,894 29,485 29,151 29,546 0.98 1.08 CASH DIVIDENDS PER SHARE 0.27 0.27 0.29 0.29 0.29 SHARE PRICE 50.23 50.00 High 45.50 33.74 34.82 35.73 41.20 34.55 26.75 Low 29.90 26.75 30.10 32.75 34.98 48.00 31.90 Period End 32.60 31.90 34.36 34.99 38.75
Key: (a) Basic earnings per share is the result of dividing net income by the average number of common shares outstanding. Diluted earnings per share is computed in accordance with the Treasury Stock method for dilutive securities as set out in SFAS 128. (b) The following per share figures show the effect of non-core items on diluted earnings per share. Page (4) of (8) BANK OF BERMUDA CONSOLIDATED BALANCE SHEET (Unaudited, in U.S. dollars in millions)
For the Quarter --------------------------------------------------------- For the Year 2002 2003 - ------------------------- --------------------- ------------------------------- 2001 2002 3rd 4th 1st 2nd 3RD - ------------------------- --------------------- ------------------------------- ASSETS 3,570.0 4,677.0 Cash and deposits with banks 3,555.7 4,677.0 3,339.5 3,899.8 4,599.2 5,467.9 4,369.9 Marketable securities 4,724.2 4,369.9 4,450.0 4,709.9 4,757.5 1,477.6 1,768.3 Loans, less allowance for loan losses 1,663.3 1,768.3 1,827.4 1,987.5 2,147.5 139.1 145.3 Premises and equipment 140.3 145.3 148.7 143.6 143.1 36.2 29.5 Accrued interest 28.3 29.5 24.4 19.1 17.7 117.3 100.0 Other assets 123.1 100.0 374.5 186.8 156.5 - ------------------------- --------------------- ------------------------------- 10,808.1 11,090.0 Total assets 10,234.9 11,090.0 10,164.5 10,946.7 11,821.5 ========================= ===================== =============================== LIABILITIES Customer deposits 5,356.8 6,269.5 Demand 5,343.6 6,269.5 5,611.2 6,655.5 7,153.2 4,586.6 3,895.7 Term 4,050.1 3,895.7 3,698.5 3,205.5 3,613.7 - ------------------------- --------------------- ------------------------------- 9,943.4 10,165.2 Total customer deposits 9,393.7 10,165.2 9,309.7 9,861.0 10,766.9 17.7 12.7 Accrued interest 11.9 12.7 8.0 44.7 8.6 217.7 249.9 Other liabilities 169.0 249.9 193.9 365.6 346.4 - ------------------------- --------------------- ------------------------------- 10,178.8 10,427.8 Total liabilities 9,574.6 10,427.8 9,511.6 10,271.3 11,121.9 - ------------------------- --------------------- ------------------------------- SHAREHOLDERS' EQUITY 29.9 29.0 Common share capital 29.4 29.0 28.3 28.5 28.8 422.2 384.5 Share premium 397.8 384.5 362.9 365.7 373.3 (20.3) 5.9 Accumulated other comprehensive income / (loss) (1.1) 5.9 5.7 13.0 15.4 197.5 242.8 Retained earnings 234.2 242.8 256.0 268.2 282.1 - ------------------------- --------------------- ------------------------------- 629.3 662.2 Total shareholders' equity 660.3 662.2 652.9 675.4 699.6 - ------------------------- --------------------- ------------------------------- Total Liabilities and 10,808.1 11,090.0 Shareholders' Equity 10,234.9 11,090.0 10,164.5 10,946.7 11,821.5 ========================= ===================== =============================== IMPAIRED LOANS 25.7 20.2 Loans 24.4 20.2 20.8 22.8 22.4 Related allowances for loan losses 7.5 3.8 - Specific 5.5 3.8 3.7 3.4 3.6 20.1 20.6 - General 20.9 20.6 21.7 23.2 23.5 - ------------------------- --------------------- ------------------------------- 27.6 24.4 Total 26.4 24.4 25.4 26.6 27.1 ========================= ===================== =============================== 107% 121% Coverage ratio 108% 121% 122% 117% 121% 1.1 1.2 Net charge offs / (recoveries) (0.9) 2.1 (0.2) 0.1 -- - ------------------------- --------------------- ------------------------------- CAPITAL RATIOS 15.3% 14.9% Tier I 15.2% 14.9% 14.8% 15.0% 14.3% 15.8% 15.4% Total capital 15.7% 15.4% 15.3% 15.5% 14.8%
Page (5) of (8) BANK OF BERMUDA CHANGES IN SHAREHOLDERS' EQUITY (Unaudited, in U.S.* dollars in millions)
For the Quarter ---------------------------------------------------------- For the Year 2002 2003 - ------------------------- ------------------- ---------------------------------- 2001 2002 3rd 4th 1st 2nd 3RD - ------------------------- ------------------- ---------------------------------- 626.4 629.3 Balance, beginning of period 653.2 660.3 662.2 652.9 675.4 60.1 77.7 Net income 14.1 16.6 21.6 20.6 22.3 Common shares issued 5.8 4.7 - through dividend reinvestment plan 1.0 1.0 1.0 1.0 1.0 5.9 3.4 - through employee incentive plans 0.8 (1.5) (0.4) 3.1 (0.6) (19.3) (52.1) Shares repurchased and cancelled (13.2) (17.2) (14.8) (2.1) - 1.9 5.3 Common shares held by affiliates 3.1 4.0 (8.1) 1.0 7.5 Net unrealised gains/(losses) on (18.2) 14.7 available for sale securities 6.8 3.8 1.6 2.9 1.4 (30.0) (32.3) Cash dividends paid (8.0) (8.0) (8.4) (8.4) (8.4) (2.7) 11.5 Translation gain/(loss) 2.5 3.2 (1.8) 4.4 1.0 (0.6) -- Stamp duty on stock dividend -- -- -- -- -- - ------------------------- ------------------- ---------------------------------- 629.3 662.2 Balance, end of period 660.3 662.2 652.9 675.4 699.6 ========================= =================== ==================================
Key * In U.S. dollars except the Bank's share capital denominated in Bermuda dollars on the basis that Bermuda dollars are on par with United States dollars. (1 Bermuda dollar = 1 United States dollar) Page (6) of (8) BANK OF BERMUDA AVERAGE BALANCE SHEET (Unaudited, in U.S. dollars in millions)
For the Quarter ---------------------------------------------- For the Year 2002 - ----------------------------------------- ---------------------------------------------- 2001 2002 3rd 4th - ----------------------------------------- ---------------------------------------------- Average Average Average Average Average Average Average Average Balance Rate Balance Rate Balance Rate Balance Rate ASSETS 4,090 3.89% 3,180 2.30% Deposits with banks 3,490 2.39% 3,206 2.13% Marketable securities 4,105 4.66% 3,411 2.57% - AFS (interest earning) 3,226 2.56% 3,466 2.46% 623 5.24% 1,257 4.00% - Trading 1,328 3.91% 1,062 3.81% Loans 1,162 7.19% 1,297 5.84% Bermuda 1,314 5.77% 1,347 5.60% 321 6.43% 380 3.71% International 370 3.65% 363 3.72% - ----------------------------------------- ---------------------------------------------- 10,301 4.73% 9,525 3.16% Total interest earning assets 9,728 3.16% 9,444 3.00% - ----------------------------------------- ---------------------------------------------- 37 47 Cash due from banks 52 56 Marketable securities 123 98 - AFS non-interest earning 110 84 366 310 Other assets 228 250 - ----------------------------------------- ---------------------------------------------- 10,827 9,980 Total assets 10,118 9,834 ========================================= ============================================== LIABILITIES Customer deposits 2,273 1.73% 2,375 0.75% Bermuda - Demand 2,503 0.73% 2,511 0.62% 2,706 3.58% 2,228 2.08% - Term 2,283 2.10% 2,207 1.92% 2,221 2.42% 2,330 0.92% International - Demand 2,458 0.94% 2,348 0.81% 2,485 4.01% 1,895 2.08% - Term 1,793 2.12% 1,724 1.89% - ----------------------------------------- ---------------------------------------------- 9,685 2.99% 8,828 1.41% Total interest bearing deposits 9,037 1.41% 8,790 1.25% 1 0.00% 15 2.22% Securities lending agreements 17 1.20% 1 0.00% - ----------------------------------------- ---------------------------------------------- 9,686 2.99% 8,843 1.41% Total interest bearing liabilities 9,054 1.41% 8,791 1.25% 221 248 Non interest bearing deposits 247 257 274 236 Other liabilities 163 129 646 653 SHAREHOLDERS' EQUITY 654 657 - ----------------------------------------- ---------------------------------------------- 10,827 9,980 Total liab. & shareholders' equity 10,118 9,834 ========================================= ============================================== NET INTEREST MARGIN 4.73% 3.16% Interest income / earning assets 3.16% 3.00% 2.81% 1.31% Interest expense / earning assets 1.31% 1.16% --------- ---------- --------- --------- 1.92% 1.85% Net interest margin 1.85% 1.84% ========= ========== ========= =========
For the Quarter ------------------------------------------------------------------------------------- 2003 ------------------------------------------------------------------------------------ 1st 2nd 3RD ------------------------------------------------------------------------------------- Average Average Average Average AVERAGE AVERAGE Balance Rate Balance Rate BALANCE RATE ASSETS Deposits with banks 3,443 1.84% 3,522 1.84% 3,436 1.60% Marketable securities - AFS (interest earning) 4,048 2.15% 4,036 2.01% 4,198 1.80% - Trading 501 3.97% 502 4.03% 503 3.48% Loans Bermuda 1,436 5.34% 1,479 5.32% 1,544 5.11% International 338 3.24% 362 3.43% 412 3.02% ------------------------------------------------------------------------------------ Total interest earning assets 9,766 2.64% 9,901 2.60% 10,093 2.37% ------------------------------------------------------------------------------------ Cash due from banks 78 27 34 Marketable securities - AFS non-interest earning 82 42 35 Other assets 267 272 253 ------------------------------------------------------------------------------------ Total assets 10,193 10,242 10,415 ==================================================================================== LIABILITIES Customer deposits Bermuda - Demand 2,575 0.54% 2,589 0.53% 2,756 0.34% - Term 2,269 1.61% 2,080 1.64% 1,863 1.41% International - Demand 2,571 0.66% 2,840 0.68% 3,073 0.52% - Term 1,642 1.65% 1,480 1.76% 1,424 1.56% ------------------------------------------------------------------------------------ Total interest bearing deposits 9,057 1.04% 8,989 1.04% 9,116 0.81% Securities lending agreements 31 0.78% 35 0.69% 144 0.49% ------------------------------------------------------------------------------------ Total interest bearing liabilities 9,088 1.04% 9,024 1.03% 9,260 0.81% Non interest bearing deposits 328 340 321 Other liabilities 118 218 159 SHAREHOLDERS' EQUITY 659 660 675 ------------------------------------------------------------------------------------ Total liab. & shareholders' equity 10,193 10,242 10,415 ==================================================================================== NET INTEREST MARGIN Interest income / earning assets 2.64% 2.60% 2.37% Interest expense / earning assets 0.97% 0.94% 0.74% ---------- --------- -------- Net interest margin 1.67% 1.66% 1.63% ========== ========= ========
Page (7) of (8) BANK OF BERMUDA TRADING PORTFOLIO PERFORMANCE (Unaudited in U.S. Dollars in thousands)
For the Quarter ------------------------------------- For the Year 2002 - ------------------------------------------ ------------------------------------- 2001 2002 3rd 4th - ------------------------------------------ ------------------------------------- 623,000 1,257,000 Average trading portfolio balance 1,328,000 1,062,000 ============ =========== ========== ========== 32,659 5.24% 50,278 4.00% Gross interest income 13,088 3.91% 10,196 3.81% (5,569) (23,074) Investment loss on trading portfolio* (12,406) (2,728) - ------------ ----------- ---------- ---------- 27,090 4.34% 27,204 2.16% Interest after investment loss 682 0.20% 7,468 2.79% (969) (1,826) Management fees* (453) (364) - ------------ ----------- ---------- ---------- 26,121 4.19% 25,378 2.02% Net performance of trading portfolio 229 0.07% 7,104 2.65% ============ =========== ========== ==========
For the Quarter ---------------------------------------------------------------- 2003 --------------------------------------------------------------- 1st 2nd 3RD --------------------------------------------------------------- Average trading portfolio balance 500,565 502,214 503,049 =========== ========= ========= Gross interest income 4,902 3.97% 5,052 4.03% 4,412 3.48% Investment loss on trading portfolio* (1,745) (3,094) (3,778) ----------- --------- --------- Interest after investment loss 3,157 2.56% 1,958 1.56% 634 0.50% Management fees* (277) (262) (236) ----------- --------- --------- Net performance of trading portfolio 2,880 2.33% 1,696 1.35% 398 0.31% =========== ========= =========
Key * Items included in Investment loss - trading portfolio in the Consolidated Statement of Income (U.S. GAAP) Page (8) of (8) -----END PRIVACY-ENHANCED MESSAGE-----