Welcome to this page about an Overview of Banks in Bermuda, via Afrokonnect. Bermuda is a territory of the British island that may be found smack dab in the middle of the North Atlantic Ocean. The tourist and light manufacturing industries have historically been the most important contributors to Bermuda’s economy.
However, over the course of the past several years, Bermuda has been getting a lot of attention from across the world. As a direct consequence of this, it is progressively gaining popularity as a location for international commercial activity.
One might be led to believe that Bermuda’s banking sector is more innovative than it actually is. However, things have been shifting, and the most recent report that was obtained indicates that the banks in Bermuda have been functioning very well. According to the statistics, the total consolidated assets of Bermuda’s banking sector amount to $22,700 million. In addition, the guarantee for the deposit is $25,000.
Organizational Structure of Bermuda’s Banks
The fact that Bermuda is home to only four banks is one of the island’s more unique features. Therefore, despite the fact that Bermuda is known as an offshore international hub of business and insurance, we cannot refer to it as an international center for banking.
There are a great number of international banks that are granted permission to register as banks in offshore locations, and these multinational banks face no difficulties while conducting business in these nations.
On the other hand, things are quite different and peculiar in Bermuda. Bermuda does not permit any of these international banks to register or conduct business on the island. This strategy resulted in a savings of $1.49 billion for the whole banking sector in Bermuda over the course of the previous year.
Top 4 Banks in Bermuda
Consider these financial institutions in relation to the magnitude of the assets they have acquired:
1. Butterfield Bank:
Butterfield, the most prominent financial institution in Bermuda, has accumulated total assets of approximately $11.1 billion. In addition to this, it has taken over approximately 38% of the local banking market.
Clients of this local bank are charged a monthly fee for checking accounts, just like customers of any other local bank. The bank had non-net interest expenses of $75.3 million over these three months, which is approximately $9.5 million more than in the same period of the previous year.
Even though Butterfield bank has been there for over 160 years, the year 2017 marks the beginning of a new era for them. This is due to the fact that in 2017, they put the US subprime mortgage crisis in the past and forced them to their knees for an extended period of time.
As of the end of February 2017, Butterfield bank has accumulated earnings of more than $115.9 million. Another important point that needs to be brought out is the extensive shareholder list that Butterfield possesses, which includes the names of several well-known people from Wall Street.
It is the delicious fruit of the stock exchange that the bank has developed for public trading and investing. This makes it possible for a private corporation to raise funds and use it for a variety of objectives. September 2016 marked the day of the company’s first public offering on the New York Stock Exchange.
2. HSBC Bank of Bermuda Ltd
The HSBC Bank of Bermuda Ltd. comes in at number two when comparing the size of its total assets to those of the other banks in Bermuda. It has amassed assets to the tune of over $8.7 billion. The year 1889 marked the beginning of operations for this bank.
During that time, the company was known as Bank of Bermuda Ltd. It is the most successful financial institution in Bermuda. It now controls about 47% of the overall local banking market thanks to its acquisitions.
Additionally, it levies a charge on checking accounts on a monthly basis. In 2004, when HSBC purchased this bank, it had 1050 workers; as of now, the number of staff has been reduced to 730. As of the end of February, this bank’s yearly net earnings amounted to $117 million.
hsbc online banking bermuda
If we were to compare this number to the net profits that were earned last year, we would notice that the net profits had nearly tripled since that time. In addition to that, the bank handed its shareholders a hefty dividend in the amount of $280 million.
Additionally, HSBC sold a private banking unit to Butterfield, which resulted in a reduction of operating expenses by 18% compared to the operating expenses of the previous year. In addition, HSBC has given approximately $700,000 to various charitable organizations and causes in Bermuda.
Top Banks in Bermuda
3. Clarien Bank Limited
The third largest bank in Bermuda is called Clarien Bank Limited, and it is the third largest bank in the country. The most recent report indicates that it has accumulated total assets worth close to $1.1 billion.
As of the preceding month of April, Clarien Bank reported that its net profits for the year came to approximately $1.2 million, which is more than twice as much as the net profits for the previous year. Clarien Bank was able to achieve these goals as a result of a significant reduction in operating expenses as well as a significant increase in new lending.
Odd thing is that even though the net profits were at an all-time high, the revenue was 3% less than the revenue. This is due to the fact that the impaired loans make up a substantial part (approximately 15%) of the total portfolio.
The previous name for the company was Capital G Bank Ltd. On the 7th of January and the 22nd of April 2017, it merged with another company and changed its name. The monthly fee for checking accounts at Clarien Bank is the same as the fee charged by all of the other local banks.
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4. Bermuda Commercial Bank Ltd. (BCB)
According to the amount of the total assets, Bermuda Commercial Bank Ltd. (BCB) is the fourth bank in the island nation of Bermuda. According to the most recent report, the aggregate value of Bermuda Commercial Bank Ltd.’s holdings is greater than $649 million.
In accordance with an act of the Parliament of Bermuda, it began operations in 1969 under the name Bermuda Provident Bank Limited. Later, in 1984, it became known as Bermuda Commercial Bank Ltd. after undergoing a name change.
This financial institution’s main office may be found in Hamilton. There are four licensed banks in Bermuda, and one of those banks employs approximately 73 staff who attend to the needs of their various customers. BCB provides its customers with a wide variety of banking products and services, including savings bank accounts, fixed deposit accounts, e-banking services, drafts, and credit cards.
Customers with a high net worth can also take advantage of the investing options provided by the bank. The cost of holding a checking account at the bank is subject to a monthly fee.
In 2011, it also completed the acquisition of two businesses located in Bermuda, namely Charter Corporate Services Ltd. and Paragon Trust Ltd. According to the most recent report, BCB brought in well over $36 million in total income in 2016, which is more than double the amount that BCB made in the year before.
List of Top 4 Banks in Bermuda
- Butterfield Bank
- HSBC Bank of Bermuda Ltd.
- Clarien Bank Limited
- Bermuda Commercial Bank Ltd. (BCB)
Thank you for reading our information on Banking in Bermuda.
In this article, we will discuss the history, organizational setup, and current financial standing of the four largest banks in Bermuda. Let us know what you think via the comment section before you leave this page.
