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Investment Managers Securities Analysts

Bermuda & Cayman

Bermuda and Cayman Stocks

Bermuda and Cayman Stock Markets

Source: Bloomberg
The Bank of N.T. Butterfield and Son Limited plummeted on weak results.

• On October 25 The Bank of N.T. Butterfield & Son Limited’s (BNTB) share price plummeted 25 percent after the company reported disappointing third-quarter earnings results, partially owed to a sharp decline in customer deposits. The company indicated that the absorption of the Deutsche Bank trust and banking division in Cayman and Jersey has proved more expensive than anticipated.Further, BNTB’s debt risk rose three levels according to the Bloomberg default risk model.

• On October 30 Bermuda based RenaissanceRe Holdings Ltd. (RenRe) announced that it has entered into a definitive agreement with Tokio Marine Holdings, Inc. pursuant to which an affiliate of RenRe will acquire Tokio Marine’s reinsurance platform for $1.5 billion. RenRe’s CEO commented that the transaction will increase the scale of the company, broaden its reach, and widen the customer base. The deal is meant to close in Second Half 2019. RenRe’s shares rose 2.5 percent after the announcement.

• On November 11 Cayman domiciled Alibaba Group Hold
ing Limited set a new Singles Day record with more than $30.8 billion in sales in 24 hours. It was the tenth edition of the annual Singles Day event which is also called the Double 11 shopping festival because it falls on November 11. During the 24-hour period, Alibaba offers huge discounts across its e-commerce sites such as Tmall. The shares of Alibaba increased by 6.4 percent in the following week.

• On December 14 French luxury giant LVMH announced that it had completed an acquisition of Bermudian-domiciled high-end hotel operator Belmond Ltd (formerly Orient- Express Hotels) for US$2.6 billion. Belmond is the owner of New York’s “21” Club power restaurant, 30 high-end resorts, and luxury experience tours. The transaction is LVMH’s largest since taking full control of Christian Dior for more than $7 billion in 2017 and pushes LVMH further into services. Belmond’s shares surged by almost 40 percent in New York trading on the news.

• On December 19 the Bank of N.T. Butterfield & Son Limited announced that, in step with the 25 basis point increase in the US Federal Funds Rate, the bank is adjusting its interest rates on fixed term deposits and loans. Butterfield stated that to provide customers with the opportunity to earn higher returns on Bermuda dollar and US dollar deposits, rates paid on fixed terms of 90 days or more will increase by 0.10 percent and 0.25 percent, respectively. Consumer loan rates will proportionally increase by 0.25 percent to 5.50 percent. The shares of the bank dropped by 2.5 percent on the day.