Butterfield Bank posted record second-quarter earnings up 6.1 per cent, hitting $35.9 million. Pre-tax net income was $37.5 million, up 7.6 per cent from a year ago, the bank said. Assets under investment management stood at $11.7 billion at 30 June 2007, with significant growth seen in assets invested in Butterfield Funds, up year on year by 16.2 per cent to $6.6 billion. Assets under administration across the group increased year-on-year by $28.6 billion, or 26.3 per cent, to $137 billion, reflecting the growth in administration services to mutual and hedge funds. "The balance sheet continues to grow, reflecting strong increases in customer deposits and loans, up $1.7 billion and $600 million respectively year on year," according to Richard Ferrett, the bank's executive vice president. "Our return on equity continues to remain strong and above our target of 20 per cent, at 25.1 per cent." "Significant increases were seen year on year in our revenue generation, with net interest income increasing by 15.1 per cent and non-interest income by 8.5 per cent year on year. Of particular note was the increase in the group's revenues from trust and custody services, up 15 per cent to $9 million," he added. The Butterfield Bank Group is a full service bank and provider of specialised offshore financial services. Headquartered in Bermuda, it has additional operations located in The Bahamas, Barbados, Canada, the Cayman Islands, Guernsey, Switzerland and the UK.