Basel III
Liquidity Coverage Ratio (LCR)
Disclosures
for the period ended 30 September 2016
9 February 2017
1.
LCR Common Disclosure Template
The objective of the liquidity coverage ratio (LCR) is to promote the short"term resilience of a bank’s liquidity risk profile, ensuring that it
has adequate stock of unencumbered high quality liquid assets that can easily be converted into cash to meet its liquidity needs in an
acute stress scenario lasting for 30 days. The Bermuda Monetary Authority requires Bermuda banks to maintain a minimum LCR of 70%
in 2016, increasing to 100% by 2019. The Bank of N.T. Butterfield & Son Limited is in compliance with this requirement.
Data is presented as the simple average of the three monthly observations over the third quarter of 2016 using the standard prescribed
Basel III disclosure template. Our average LCR as at 30 September 2016 decreased to 131% from 136% as at 30 June 2016. Higher
average HQLA and deposits during the quarter, resulting from the acquisition of the private banking, trust and investment management
business of HSBC Bermuda, had a dilutive impact on the ratio. Multiple other factors that are part of normal business operations also
impact the LCR.
a
TOTAL UNWEIGHTED VALUE
(average)
(In $ millions)
b
TOTAL WEIGHTED VALUE
(average)
HIGH"QUALITY LIQUID ASSETS
1
c
Total high"quality liquid assets (HQLA)
4,470.1
CASH OUTFLOWS
Retail deposits and deposits from small business
2
customers of which:
3 Stable deposits
4 Less stable deposits
5 Unsecured wholesale funding, of which:
2,139.0
"
2,139.0
7,254.4
208.9
"
208.9
4,422.0
Operational deposits (all counterparties) and
deposits in networks of cooperative banks
Non"operational deposits (all counterparties)
Unsecured debt
"
7,254.2
0.2
"
4,421.8
0.2
"
72.9
6
7
8
9 Secured wholesale funding
10 Additional requirements, of which:
Outflows related to derivative exposures and other
11
collateral requirements
12 Outflows related to loss of funding on debt products
13 Credit and liquidity facilities
14 Other contractual funding obligations
15 Other contingent funding obligations
16 TOTA L CASH OUTFLOWS
CASH INFLOWS
17 Secured lending (e.g. reverse repos)
18 Inflows from fully performing exposures
19 Other cash inflows
20 TOTA L CASH INFLOWS
244.3
24.3
"
220.1
"
142.3
24.3
"
48.7
"
7.1
4,711.0
61.9
1,362.8
1.2
1,425.9
"
1,300.4
1.2
1,301.6
d
21 TOTA L HQLA
22 TOTA L NET CASH OUTFLOWS
23 LIQUIDITY COVERAGE RA TIO (%)
(In $ millions, for the 3 months ended 30 June 2016)
21 TOTA L HQLA
22 TOTA L NET CASH OUTFLOWS
23 LIQUIDITY COVERAGE RA TIO (%)
TOTA L A DJUSTEDd VALUES
4,470.1
3,409.3
131%
TOTAL ADJUSTED VALUES
3,945.6
2,908.7
136%
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2.
Disclosure Notes
a
Unweighted values are calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows)
b
Weighted values are calculated after the application of respective haircuts (for HQLA) or inflow and outflow rates (for inflows and
outflows)
c
HQLA is comprised predominantly of US and UK sovereign debt and US government and federal agency securities
d
Adjusted values are calculated after the application of both (i) haircuts and inflow and outflow rates and (ii) any applicable caps (i.e.
cap on Level 2B and Level 2 assets for HQLA and cap on inflows)
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The Bank of N.T. Butterfield & Son Limited
65 Front Street
Hamilton, HM 12
Bermuda
Tel: (441) 295 1111
Fax: (441) 295 3878
Investor Relations Contact:
Michael Schrum
Group Chief Financial Officer
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 298 4758
Fax: (441) 295 1220
E"mail: [email protected]
Media Relations Contacts:
Mark Johnson
Vice President, Group Head of Communications
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 299 1624
Fax: (441) 295 3878
E"mail: [email protected]
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