Bank of Bermuda's (BoB) support for Hong Kong's Mandatory Provident Fund (MPF) has helped the group report a core operating income of $27.7m for the second quarter of 2001, compared with $28.7m in the same quarter last year.
Commenting on BoB’s second quarter results for 2001, Edward Gomez, chief financial officer, said: “The main driver of the remaining increase in operating costs is our Hong Kong office’s investment in people and systems to support the Mandatory Provident Fund business, the revenue flows from which are continuing to build and to exceed expectations.”
BoB’s total revenue for the quarter was $119.7m, 11.4% higher than a year ago. In Hong Kong, revenue from retirement schemes administration was $1.3m, or 117%, higher than the previous year. In total, global fund services (GFS) fees in the Far East were up $1.8m from last year. In Europe, GFS fees reported an overall decline of $0.5m.
The largest component of operating costs, salaries, were 4.6% higher than a year earlier with $1.6m of the total $1.9m increase reported in the Far East where Bank of Bermuda added staff to service the MPF, revenues from which commenced at the start of the current calendar year.
By Janet Du Chenne
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