NASSAU, BAHAMAS – Butterfield Trust Bahamas is assuring that any cost-cutting measures in line with its group internationally will not involve the restructuring of any of the 19 positions at its local office.
Instead, Managing Director Craig Barley said the Bank would be implementing a reorganization that will integrate greater technology into its daily operations in The Bahamas.
“There are no immediate plans for additional restructuring, and our team here is focused on continued business development with the goal of growth in The Bahamas,” Barley told Eyewitness Business.
“Butterfield Trust in Nassau has been and continues to focus on the management of operating costs, and has recently implemented a reorganization designed to help our team in Nassau become more integrated and leveraged with the resources of the Butterfield Group internationally.
“We are also investing in a significant technology upgrade locally to align our core systems with those of Butterfield Group.”
Barley’s comments came as the international Butterfield Group will undergo cost-cutting measures in its jurisdictions with higher costs.
According to the Bank’s Chairman and CEO, Michael Collins, the process will take place over the next six months with a focus on becoming more efficient in operation.
“There are other programs we are working on, that we will talk about next quarter on how you reduce expenses in an island population where, when you reduce headcount it has an effect on the community, it has an effect on your clients, and we have a pretty good sense on how you do that without hurting our franchise,” Collins said.
The streamlining includes automating everything and, where possible, moving some services to Halifax and Mauritius.
When asked whether the changes would affect the positions held in the local office, Barley said the Nassau office is integral to Butterfield Trust’s services to international families and their advisers and a key part of the Group’s growth strategy.
“Structures and solutions available under Bahamian legislation continue to be attractive to high net worth international clientele for a multitude of reasons, including the reputation of The Bahamas as a well-regulated and stable international financial centre,” he added.
The news of Butterfield Bank’s restructuring internationally follows the Bank registering a $41.9 million increase in net income for the year ended December 31, 2018, at $192.5 million.
Non-core items resulted in net losses and expenses of $1.8 million in the year ended December 31, 2018, a decrease of $3.8 million from net losses and expenses of $5.6 million in the prior year, outlined a statement from the Bank.